welcome, everybody this is "power lunch." we start with the market rally it's less than a percentage point from its all time high the dow at its highest level since february

we have two huge interviews this hour first stephen ross of related company is a real estate firm of $60 billion in properties. he'll tell us why he thinks corporate america is entering into a cost cutting spiral that's what he's doing and he's seeing it elsewhere. "power lunch" starts right now >> welcome opini let's take a quick check on the markets. the dough is up. the s&p 500 is within striking distance of an all time high

amazon and netflix all flat before the session financials and energy stocks both up more than 2% right now as that reopening rally seems to be broadening out. tyler. >> thaunk you very much the other group out performing today is boeing and the airlines boeing, united airlines, american, jet blue, southwest all jumping higher as the reopening rally gains steam. phil has more on the moves in those sectors. high, phil >> it's all about optimism it's not looking at the near term which is ugly and how ugly is it. take a look at the july order and delivery numbers from boeing this is not a surprise everybody expected boeing to report really weak numbers for the month. negative 52 planes in terms of orders year to date, negative 836

negative 864 orders this year. the backlog stands at 4,496 planes at the end of last year it was close to 53, 5400. july deliveries just four planes those weren't good numbers and neither are numbers when it comes to number of people who are on the planes that are in service. that the airlines are flying this is what we're seeing over the last three, six months or so you're seeing the number of people flying still down 69 to 73%. does that matter to those who are looking at airline stocks. not a beat that's why wheen yn you take a back, we're going to last wednesday. the president said i can get on board with another $25 billion for the airlines that lit a fire under the airline stocks and they have all had a nice move since then this is all about optimism people believe the airlines will come back at some point once

they get through this rough patch whether it's six month, nine months and boeing will start to see deliveries increase and orders at some point in the future start to pick up again. >> phil, one of the themes of this hour is going to be how much businesses are cutting costs to help their profitability. what is the outlook among the airlines for staff reductions and other cost cuts when we get into the fall. >> all comes down to whether or not they get another 25 billion from washington. they get another 25 billion from washington, that will mandate they lock in the jobs that are there right now so no layoffs through the end of march it will mean there's guaranteed service to all the markets they are being served right now they don't get that other $25 billion, you're likely to see tens of thousands, maybe 75,000 layoffs, furloughs in some fashion. a lot of them being flight attendantss and pilots but ramp workers, ticket agent, et cetera it really does come down to that

government aid and the police chief is washington will ultimately put that in the stimulus package >> thank you very much as stocks inch toward record highs, large cap tech companies have done most of the work propelling the s&p 500 back to these levels larry, you point out that while the market has been led higher, largely by the winners, the technology companies, the large cap growth stocks, 40% of the s&p 500 stocks are still down 20% from their highs is that where you should be putting money or should i stick with the winners >> i would still stick with the

winners. as we look forward, those are the areas that will continue to reap the benefits if the economy continues to recover if it does all of a suddenhave a second wave of the covid-19, i think they will be able to mitigate any of the downside from that perspective. i would still stick with those winners. the other point i would mention is you see the headlines about the economy recovering but i think you have to put them into perspective. everybody wants to talk about tsa and how numbers are up 800%. they are still down 70%. if you look at hotel bookings, they are up 27% but still down 34% from the peak. i think you have to take them all with a grain of salt when you're investing your money. >> sticking with that theme, something like we had good job gains over the past few months we are still 42% or thereabouts of the jobs that's all we have gained back of the jobs that

have been lost in this recession. how much does the economy need more fiscal stimulus and how much probability do you put on that coming? >> well, i think that not extending the stimulus at this point would be a critical mistake. while the economy is in the process of getting back on its own two feet, it's by no means able to stand on its own two feet quite yet we do think at the end of the day we will see another round of fiscal stimulus out of washington i think the biggest issue is that neither party wants to be looked at as responsible for not tli delivering another round there's a narrative if we're providing people with extended unemployment benefits they will sit on the couch and not go back to work. the reality of the situation right now is they're not yet jobs for those people to go back

to we need to make sure we're providing support so the damage done the the economy doesn't become more severe and this recovery that the equity market continues to price in can be the asemblance of what investors are looking for. >> larry, let me turn back to you and go back to this theme of where the profits are going to come from and whether the profits in the s&p 500 are going to come from real organic growth and recovery and how much of those are going to come by controlling the cost portion of the equation >> think about what companies will spend on. they will still have to spend on tech they will still have to spend on health care to keep everybody safe

cutting cost is important, i think it's important to see what companies will is spending on. >> david, final word to you. what should i do with my portfolio? steady as she goes or be move sbo ing into the growth areas? what are you doing >> my view is we continue to like growth for the long run growth versus value from an equity stand point, i think you want to be plansed we don't want to completely abandon ship there's still plenty of uncertainty out there whether

it's the situation with the virus itself whether it's the election in november melissa. the big story a lot of people are curious about vladmir putin claiming russia has the first vaccine. meg, what can we believe here? >> well, putin saying this vaccine quote works effectively enough the amount of data that we know about for this vaccine is essentially equivalent to a phase one study. it would be like us saying we have seen the data from moderna and pfizer, we're ready to press the green light and say let's ie prove it now experts are concerned because there isn't broad studies to show whether this vaccine is protective against the

coronavirus and whether it's safe when given to more people russia does say it plans to again a phase three trial. without that information the long term effects and the safety of this vaccine remain unclear. we don't know yet how much of a immune response is needed to be protective against the coronavirus. experts have been weighing on this today and dr. paul from the children's hospital of philadelphia just joined the exchange and he talked about all of those concerns but also the geo political pressures that this announcement might have. here is what he said >> my fear is they would roll out the vaccine not knowing whether it was safe. not knowing whether it was effective and that would put pressure on other countries.

we would the pressured the approve vaccines here in the u.s. based on the scant amount of data that russia has decided to approve its vaccine on. this is not a scientific breakthrough they just a a lower bar. >> there's already pressure on this whole process which is in part while all these phases are being condensed. i'm not trying to defend russia what they sound like they are doing in rolling out this vaccine is a live phase three study which is basically what's happening here in the united states here in the united states we're injecting vaccines which we don't know much about in terms of the long term efficacy or

safety into human subjects it's the same, isn't it? >> we heard they plan to roll out the vaccine to health care providers and teachers and a broad vaccination campaign later in fall. they are also ramping up production in terms of the trials that we're running here in the u.s., they will be closely plon t llyd ta they are enrolling 30,000 participan participants it's to get a sense of the safety of the vaccines for side effects that don't turn out and make sure it's protected if russia is not collecting closed data as they roll out the vaccine they might never know how well it's working? we need these placebo controlled dri trials we'll have more on the market rally we will check out ford

stephen ross will join us to talk about what he's seeing on the ground and his latest investments, including a very interesting one. more "power lunch" coming up next plap it's easy to get lost in the economic uncertainty. the volatility. the ambiguity. this moment calls for more. and northern trust delivers more. with specialized expertise. proven strategies rooted in data and analytics... and insights borne from over 130 years of successfully navigating economic turbulence. giving you new clarity. inspiring confidence. and helping you uncover new paths forward. northern trust. wealth management.

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. welcome back the pandemic has had a huge impact on the real market on the residential side and the commercial side. our next guest is one of the

largest real estate developers in the country stephen ross developed hudson yards. a spectacular property in new york city. we'll get to you in maia minute we want to start with you on real estate. why don't we talk about what you're finding and seeing in hudson yards, which is a magnificent property but i can imagine that it is a struggling property right now >> the retail is totally closed. the office buildings are open.

today is probably 10% of the work force is working there. i can't tell you how thrilled i am to be back and how good it is to be back i think it's so important we do the things to open up the cities i think the perspective a lot of people have when you look at new york or i'm sure other places, the respect that the people really have for this pandemic and how they are dealing with it i feel totally safe coming back to the city. it's unusual it's different people when you go into meetings, everybody puts a mask on they maintain their social

distancing i think right now, i think new york is suffering and i'm sure almost every other city is with people really being reluctant to go back to work. that's really the main thing i know how much better i feel being back here. >> i've sort of done a hybrid style partly working at home and i enjoy being back among people. we are human beings and we thrive on social contact i wonder how much thinking and modelling you have done as to how long it's going to take for things to quote in the big cities, the big inner cities and you're represented in miami, lots of cities around the country for those big inner cities to come back to something

approaching, if not 100% occupancy, something higher than the 10% you said and how long can you sustain the revenue hit that you might have to under the reduced occupancy circumstances. >> there's the mental aspect i think people really want to come back to work. it's incredible. you have to give people a will the of credit. they really respect the impact of this pandemic and they are doing everything that i can see when i'm out on the streets in trying to really adhere to the best policies you could have the government can do what it can to help that happen.

i think in new york here where the numbers have been probably the best in the country, they still talk about opening the city but they don't -- they're not doing nithings to keep the numbers down that people would want to come back to new york for. the results have been incredible the new cases were probably way below the national average >> let me go in a couple of

dredre directions here. i don't mean to put words in your mouth but i sense you feel they have not been forthcoming enough, aggressive enough in reopening. am i right are you critical of what's happened in new york >> i really am you look at hudson yards, retail they told us if you have certain amount of filtration and you met standards we could open. now the mayor, we met those standards and de blasio says it's not safe. it makes no sense. everybody would benefit with it

being open these are the things we have to do to get our economy back on track. if we keep waiting, like you say, how long can you wait and how long can you sustain yourself >> do people feel comfortable going back and part of that equation is coming up with vaccine. when you think about a return to normal, return to business of more robust levels for a business like an equinox or hud s son yards, is the vaccine the holy grail will the vaccine flip a switch with people's behavior >> absolutely. there are trends going on. people want to live in cities.

that's today and that's the future and if you ask young people, that's where they want to be. >> why are they leaving the cities why is there such a big rush to the suburbs? we see it right here in new york city it's it's not right now. >> people said to me when things are good, people don't see how they get bad things will change i think we have the patience there's a lot of things we can do in the interim and also this pandemic will have an impact on the future and how we really kind of lead our lives and what

we expect. people, i believe, will go back to where they were they'll follow the trends. city will be the important part of american life and growth. >> we have been asking mr. ross the questions. we will get to you and your very interesting approach to helping to control the spread of the virus. i have two more questions for mr. ross, if you'll indulge me a moment more. we'll hear from tilman in a few

minutes. one of the things he's going to say and he's also been a critic of new york and new york state and new jersey and their rules for reopening. in that area you share a point of view. he has been kwiets critical and i expect him to say in the next 20 minutes that landlords need to do more to negotiate with their tenants so that good paying tenants can get cut a break and can survive. what are you doing and how do you see the landlord tenant relationship as companies whether they are store, restaurants, office people are having trouble paying your rent? how are you working with them? >> i think you look at it, i think big business, large corporations that are really the office tentenants, they have the capabilities of paying the rent and it's a whole eco system.

the people that are suffering are small business i think you have to look at it and you have to see who you're dealing with and what people's obligations are or should feel that to be get the economy to feel good, the world to keep going, there's certain things you have to do i think you look to big business to continue the pay the rents and you might have to do a lot to help small business stay in business and so they can continue to provide jobs and services which are so needed

>> final question. >> it's not one right answer to say what do you do >> final question. mr. ross, as is your right and lots of business people do, you have been a supporter of president trump. you've held fund raisers for president trump and that has been a controversial move to some lights. i wonder, particularly, among people who have patronized equinox or soul cycle, i wonder how your support of president trump and outspoken support of him, which is perfectly fine, has affected your business can you walk us through that >> it's had an impact on the business i've supported president trump, i don't agree with everything that he is doing i really work both sides of the aisle. i'm really an independent. i look at what's in the best

interest of the country. you deal with life issue by issue. you do what you think is best. >> to your point, you have supported candidates on both sides of the aisle now, let's get to what mr. ross has put some money behind and that is using a form of far ultraviolet light as a way to eliminate, control, destroy virus and disease. this is manager that i gather as the owner of the dolphins. mr. ross has embraced at their team facilities and down at the beautiful stadium there in miami. tell us about this technology.

tell us about the research behind it that indicates it works. >> the technology behind the uvc light has been around for decades. there are literally hundreds of university peer reviewed studies that show these forms of uv light are capable of activating these pathogens. additionally, this specific type of light is 220 nanometer has been studied for the last decade and a half this form of uv light does not affect the human body. it's incapable of penetrating

our skin this dynamic system that clous us to clean the space. >> it does not this is part of a entire procedure that will be part of the new normal we still have to social distance we still have to wear masks and take the right precautions this helps reduce the load we bring into our environment or take away from our environment it allows to enter an environment in a safer way with a reduced load and allows us to go home in safer manner, reducing the load before we take it home to our families. >> thank you so much we appreciate your time today and for indullging us as we hada thorough conversation with mr. ross thank you for being with us.

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call...to receive a kohler highline toilet with your purchase of a walk-in bath. restaurants around the u.s., biggest struggle has been adjusting to the new norm. unless the economy reopens, business will never be the same. he says numbers are improving slightly but not from growing business or returning customers. it's from cost cuts including permanent staff reduction. joining us for his weekly pulse check is tilman. the owner of the houston rockets and new york times best selling author it's always great to speak with you. >> how are you >> good. good sorry to hear you had to make some pretty deep cuts. this is the new normal you got to reach deep and start

trimming the fat >> you know, for sure. that's where this unemployment will probably stay in the 10 to 12% for a good while everybody saw the earnings just recently for most of your s&p 500 companies. revenues were flat off the new estimates. earnings were up 22% where that's coming from is cost cutting. my hospitality restaurant gaming division was going to do over 700 million in ebitda this year. if somebody told me can you cut 100 million expenses out of that to get to 850 million, i would have said, absolutely not.

we can do the same amount of ebitda that's what we're trying to do we're doing it in the gaming business which is a lot easier it's much harder in the restaurant business. you have to make tough decisions. it's very tough. you're losing employees and it's just hard but you have to make the company survivor >> you mentioned getting back to 75% of revenues pre-covid. you've had to make 25% cuts to your staff whether it be corporate or in the restaurant business and you think these are permanent cuts this is the new way of doing business at landry's >> i think this is new way of doing business in america and no matter what industry i'm talking to people, people are trying to operate with 75% of what they used to operate with

people have to make tough decisions. there's a lot of fat in companies. you get to reboot your companies every time something like this happens. for the next 10 to 12 years until something happens, you get real fat again as i started looking at expenses in my company, the amount of money that all companies spend is unbelievable. l it lets us all tighten our belt. >> a study of $650 billion worth of loans and it found that for the most part, it was over stated the ability of the tenant to pay

back the loan. what sorts of ripple effects could we see because of that >> well, it's the landlord paying the loan. my he tail ten nantants around there, i don't expect them to pay 100% when they are not open. i don't expect them to pay anything when they're not open there's a difference in a small retail business and there's a difference in an office ten nants. you can't expect somebody who has a restaurant in new york on sixth avenue or fifth avenue or

retail to pay rent when the mayor will not let you open. the governor will not let you open everybody has got to feel pain i keep saying that the ten nants has to feel pain and the landlord has the feel pain when you have some landlord say why would i give you an abatement, i'll give you a deferral what are you talking about i haven't been open for business in five months and you expect me to pay full rent everybody has to be reasonable >> is that the conversation you had and do you think do you

think any of you restaurants even though our nrumbers have come down to dramatically and so well, we're still not reopen fully. certainly not for in room dining >> fully i have many that you fill a few tables out on the street, you're not doing business then the ones we're talking about right there are the big del friscos. they do all kinds of group business besides tourist beside and local business they are doing a tenth of what they did before. how do you pay rent if you're not open it's real simple math. zero you can't do it.

>> what about college football there's high talk it may not come back at all that was the top story sunday night. financially a huge problem for lots of cities and towns across the country that depend on the influx of people on saturday afternoon, friday, saturday and sunday >> it's no different than a retail store and a mall does 80% of their business in the month of december.

everything is built around these six college football games 100,000 people flock into these towns and spend so much money, two and three nights for these home football games. these are small businesses remember, that's what small -- that's what this country is about. these are restaurants and towns and i'm not in a lot of those towns. they're not big enough for me. that's where so many local entrepreneurs totally depend it's about these small businesses that will go out of business they will not have the support

i truly do see both sides. we don't want anybody hurt but there's two sides to this. >> thanks. great to see you keep those rockets playing well. they are doing great fantastic. >> playing right now >> playing well. coming up, markets off the session highs. check out the move in gold and silver today getting crushed after breaking record runs. record breaking runs the ten-year yield rising to its highest veinlel nearly a month. stay with us we'll be right back.

more than 900,000 people are still without power. it's following storms known as doratio. a woman was inside this mobile home when it rolled over on its side final pieces are in place for joe biden to announce his vis presidential running mate. top choices include kamala harris and elizabeth warren as well as susan rice head to our website, cnbc.com to see who the biden campaign has selected as top aides. a coast guard helicopter rescuing a wounded hi eed hiker he was with a friend when a boeldser rolled onto him causing serious head and leg injuries.

h is in stable condition you're up to date. i'll spend it baend it back to u let's get to the bond market notable move in the ten-year yield. >> a definite notable move especially when you start out with this move at 57 basis points we're up seven basis points to levels look at a two-day chart you see how much we have escalated. part of that is the notion of the russian vaccine. not that people in this country believe it is much but it creating some optimism and hotter than expected producer price index that brings us to tomorrow's cpi if you open a chart up for the difference between tens minus twos which is a one month high at 50 basis points on top of the banking index which is at a two-month high, you can see how both are feeding off of each other and finally, the difference between our yields here and yields in europe is the widest it's been in six weeks. this is something to pay

attention to especially at a time where the fed is so stimlative and there's so much optimism we might wrap our arms around covid we have to remember, it could get steep if we continue to get better news in the future. >> thanks. robinhoods releases trading numbers for the first time we'll tell you how they stack up to the competition the man with the plan to save vacant retail locations. wougtocrazy or crazy enoh rk we'll be right back.

robin hood, the free trading

app releasing data this day saying hit more trades than e-trade and schwab combined during the month of june kate rooney has details. kate >> hey, tiely. robin hood has teen seen 4.3 million daily trades for the first time robin hood joins the other major brokers but is closing a monthly total for june robinhood is leading the pack t.d. mayor trade saw 3.8 million and charles schwab is around 1.8 million. e- trade is the low west a million. according to robinhood, they trained more than double it is private. it's not revealing the quarterly reports. that may let them cherry pick some of the stats. for example, they don't disclose the average size of the accounts or trades. robinhood clients are likely dealing in smaller dollar

amounts versus schwab, for example. to keep up with this surge in trading, robinhood announcing they're hiring 1 dreahundreds o customer support staff but not in silicon valley. they're looking to southlake, texas, and tempe, arizona, instead. back to you. >> all right kate, thank you. the head of one of the biggest u.s. mall owners says he wants to buy more stores we have that story next on "power lunch." you can always watch or listen live on the go on the cnbc app we'll be right back.

♪ 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. ♪

woi felt completely helpless.hed online. we've just been finding a way to keep on pushing. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. simon property is aiming to salvage more distressed retailers facing bankruptcies. it already made bids tore brooks brothers, lucky brands and jcpenney and now the company is going to open more grocery stores in the malls. the for more demand trying to save the american retail, let's bring in cnbc retail reporter lauren thomas. so david simon, what is the

plan, lauren >> yeah. no, it's fascinating to watch this all play out. and simon did report earnings yesterday after market close and one of the biggest take aways was that simon, the biggest mall owner in the country, is looking to do more of these deals. you know, beyond what you already mentioned where it has made bids for lucky brand as well as brooks brothers and partnership with authentic brands group and we're waiting to see if simon and another mall own certificate winning bidder for jcpenney he said yesterday evening on the conference call that they're still looking for other opportunities. but he said they're going to be selective. and he's only doing this if simon sees a way to make money he said the company does anticipate in all of the investments that it's making they'll return the equity within a year and you see shares rising today. on the heels of that call. i think investors, you know, are

really noticing this and kind of taking note of this news and simon is looking to make money when it does these deals >> did he comment about the report in "the wall street journal" that he was in talks with amazon? the notion that simon is bidding for jcpenney sort of doesn't make sense if you believe that article. that they're looking to turn the vacant jcpenney stores into distribution centers there is no need to save that retailer. >> sure. well that question did come up actually a number of times on the call and he didn't raeally deny it or speak to that directly and so, you know, i think again there are rumors swirling that these talks are taking place when i speak to sources and the folks that i spoke to since that report came out, they say that they don't really see an amazon warehouse going into many department stores. maybe there is a store here or there where that would work. but there are a lot of hurdles

that simon as well as amazon would face along the way in making this work, zoning requirements the that entire space has to be rezoned. i think you mentioned grocery stores and that came up on the call and that is one potential new use, i think, for some of the space. it is still retail use simon would not have to rezone an entire department store for a grocery store to move in and the hope would be, of course, it would drive more traffic to the mall and maybe be better for everyone in the long run. amazon is looking to gross the grocery concepts >> and turning stores, anchor stores into distribute septemberers would probably trigger a lot of co-tenancy clauses as well. but, you know, thought of a simon property opening a grocery store, simon property is known as the best of the best in terms of retail locations. no would really bring down the

neighborhood, so to speak. >> i think, yeah, you could look at it both ways. what has been pointed tout me multiple times is if you look at other countries compared to the u.s., many malls even in latin america i remember on a trip i went there and you go in a mall and it's very common for that mall to have a grocery store they're behind the trend another mall owner, they just finished their earnings call this afternoon and they mentioned grocery as well they're looking to do more grocery deals as they're getting the jcpenney stores back you think of momovie theaters ad with the pandemic, a lot of that is up in the air the landlords are trying to turn to other use that's still make

sense. >> dow jones industrial average is up 200 points as we turn to the last hour of the trading day. >> yeah. it's worth watching the move in banks. huge move in the back of a steeper yield curve today. we'll see if it holds into that close. great to be with you, ty. >> yep, "closing bell" starts right now. >> thank you very much and welcome, everyone, to "closing bell. i'm sara eisen here with wilfred frost. we're watching very carefully the levels as we inch closer to a record high on the s&p 500 we're set for an eight day win streak if we continue higher stocks have lost a bit of momentum as you can see in the last few minutes we'll watch every tick for you heading into the close let's look at what is driving the action the rotation is in values and cyclical stocks winning to day industrials, transports, energy, financials, they're all