rentals. t it gives you flexibility with starts and stops of economy where you can rent the equipment instead of purchasing it >> all right thank you. nvidia, d.r. horton and united rental tyler, back to you >> all right it's been a pleasure spending the hour with you. i'll see you again tomorrow. the dow jones industrial average sliding just a bit here. now down about 160 points. i can't see anymore. you have to guess. they'll tell you on "closing bell" as "power lunch" says good-bye for now see you tomorrow >> thank you welcome to "closing bell," everyone i'm sara eisen with wilfred frost. a choppy session let's look at what is driving the action initial jobless claims coming in under one million for first time since march. we're still way above prepandemic records. another official cause of a stalemate, no movement in washington and another stimulus bill and relief for the millions of unemployed still not much movement there. yields moving higher after a 30

year auction that has taken the wind out of the big growth stocks. 59 minutes left to go. now just about 20 points away from a record on the s&p 500 wilfred, we crossed over that level that would have been a closing high we lost a the lot of steam >> i know. we didn't quite make it and sold off near the close but doesn't look likely to happen today as things stand lots to come on today's show we'll hear from two key market voices as the s&p 500 nears and pulls back and then hovers below that all time high dan niles and mohammed larian will join us we'll discuss the growing china fallout with carly fiorina let's start with the key stories we're watching mike santoli is looking at the recent recovery in bond yields and joining us to talk about apple as they hit the new high is tony from sanford bernstein

>> it's really not that unusual for the market to hesitate for a while when it reapproaches an all time high. although, it seems almost a little too cute the way it's done the past few days really floating with that all time high level and faltering later in the day they're up about 50% it's not the case you often get a perfect double top so i don't think it's at risk of saying this is going to be some kind of we got even type trade we're suing clues there is instabili instability plus this yield move they were carrying things earlier. take a look at the relationship between yields and the relative action in cyclicals versus

growth stocks. on top this is the ten year treasury yield they do not include today's action which would have boosted a little bit more. isn't this exactly the same shape on a one year basis as the industrials divided by the nasdaq 100 growth stocks it would look the same by the way if this was small caps versus growth stocks so when yields are going higher, it's positive yield curve shape. you have better expectations for longer term inflation. nominal growth things like that all fit together of course, bond proxies and growth stocks benefit from rock bottom yields and high liquidity. this is the action we're talking about. the issue for the s&p 500 for the aggregate benchmark is these stocks are much bigger in the benchmark than the cyclicals are. the so, therefore, kind of running uphill when yields are going higher if we're going to see the cyclical rotation. there is a way out of it it doesn't mean that the s&p 500 reached the extent for a while but this is the underlying dynamic we're contending with. >> mike, and on top of

that the cyclicals aren't higher today. >> not today they're not, no >> the one one ththat stands ous the banks. the ten year is up to 0.72 as we speak. yields are rising. this yield curve is steepening mike, i don't know whether that is giving us a glimpse of another factor that's out there. we failed to get an extension of the government stimulus bill which is so important for the banks. >> i think that's exactly right. >> it's a play on the consumer data sheet what is really going on inside the smashgmarkets is it's a goo based cyclical move that has the beginning of an outperformance it's not purely value. the banks are outright cheap on most metrics they're not geared to the same dynamics as other things p seemingly, at least sentiment

wise, much more tied to the fate of a fiscal package to come. >> mike santoli, thank you very much apple hitting new all time highs. top of the dow today downgraded the stock to market perform just two weeks ago with a $400 price target. tony, i know you also moved lower on tesla both stocks have been surging on the back of their announced stock splits do you think that's a coincidence or is that really what's begun, do you think the driver of the shares >> no, i think if we look at the both stocks over the last, you know, since the beginning of the year, there's been very fundamental performance. and, you know, recently we've had some sail wind, you know, following the stock split announcement but that sort of the cherry on top of the cake. i think to their credit, both are executing well

apple is being increasingly viewed tlaen is a hardware company and worries it wouldn't farewell during this pandemic. it it's going to grow earnings about 10% this year. and it has a big potentially big iphone cycle coming up so there's the company's executed well. i think it's demonstrating that the services value proposition means it's a different company than perhaps some people believe. and there is anticipation that, you know, next year could be another good year. so all those things have contributed to run up on the stock. and again, i would view the stock split for both apple and tesla as sort of the cherry on top of the cake at this point. >> but a cherry that really adds much flavor to the cake or is it totally so totally so totally superficial, there was a lot of positive fundamentals people could point to that justified the big jump in the

share price. what is the jump in apple share price. >> yeah. look i think tesla's following tends to be more individual investors. i think in apple's's case where it is such an enormous capitalization stock, it's critical to almost every investor's benchmark you know, they would discount a stock split in terms of not really adding fundamental value to the shares. they really were rewarding apple on a really strong quarter and so i think the investor base

and who the stock appeals to is a little bit different for tesla on balance than it is for apple. >> we have breaking news on apple. greet have you with us julia has the news >> it appears that epic games fortnight is gone from the apple will app store the ceo of epic complained and taken issue with the feed th th apple charges having game revenue. a 30% of game revenue. we reached out to epic for comment. we have not heard back yet we'll be following up on that. that is notable that popular game is no longer in the app store. >> absolutely. julia, thank you >> ep sick not alone, tony we heard complaints before from spot fi.

we know the european regulators are looking into this issue >> i think at the end of the day it's not a substantial risk. let me elaborate first, the app store just context is about 10% of the profits of apple so it is really significant. you say, look, if this is under scrutiny, isn't it a significant risk i think if we play this forward and we think what might regulators do if they ultimately concluded that apple is acting in an anti-competitive way, i he don't think they would set a price. they won't say you can collect 30%, you must collect 10%. this is not a regulated issue.

you have to allow for other app stores and venues are apps can be sold. that can transpire if we play this regulatory, you know, playbook forward but if we really think about that, i'm not so sure that other app stores would have a lot of traction every app store is -- that is vetted by apple. there are no bugs associated with that. you know, they're all adhere to a set of moral standards and technical standards. i think many consumers take a great deal of comfort in the app store. so i think practically, sara, yeah, there will be scrutiny and there could be an adverse ruling what would the ruling likely be and if it was adverse and if

other app stores were ultimately, you know, allowed or mandated to exist for apple to accept, i'm not sure that consumers would ultimately go there. they value the marketplace that apple creates for apps through the app store. >> tony, just to round thing offs, two part question. firstly, china retaliation how concerned are you about that apple would be the pinpoint of tech retaliation and secondly, you're so much more upbeat in your tone >> on china retaliation, it's very difficult to know -- no one really knows what happened you know, what china is thinking

there's been no official state response no official, no unofficial state like sponsor message being sent. and we may have to wait past the election to see whether this is an issue if there are any companies that are potentially likely to be targeted, i think apple and tesla are high profile companies that could face adverse consequences on your second question about our feeling on apple, look, the stock has done extremely well. we haven't been able to sort of keep our price target up with how much both the market is going up and apple is going up i think our view is near term the risk/reward remains favorable on apple estimates are too low. the stock usually does well in advance of product announcements and we're expecting one in october. and we think the stock will continue to do well. thereafter, i think the risk reward is much more balanced the you have an elevated valuation in apple and per your previous -- for the previous discussion on cnbc, you know,

there is some risk as we look into 2021 that nontech stocks and stocks that haven't done as well this year will have superior earnings growth and play catchup or maybe outperform >> tony, thank you for joining us >> thanks for having me. >> after the break, the u.s. economy showing signs of life today as jobless claims came in below $1 million for the first time since mid march we'll discuss the state of the economy with bank of america president of retail that, is coming up next ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

let's bring in steve boland, pred of retail serve 3z 3 million mass market consumers. it's also part of the overall executive management team at bank of america. very good afternoon to you thank you for joining us, steve. >> good to be here, wilf

let's kick off with the consumer the area you have such data on everyone saw the uptick in april and may. has it continued since then or is it plateauing a little bit? >> no, we're seeing it continue as we continue to see states reopening and people getting back to spending on essentials where we've really seen consistent growth is in the debt card spend that is probably the trough was down 40% and now first week of july was down closer to 10% that's really essential. credit card spend, that's where people are using for the bigger spend like vacations and larger expenditure that's haven't quite come back there. >> i guess lone growth overall hasn't necessarily been that strong but in your part of the business, with consumers, mortgages are taking off >> the first half of the year

was huge for the industry. we saw it across segments. the you think in the retail mass market segment, we saw really significant growth and continue to see significant interest from our mass market consumers we're at really low interest rates. high levels of affordability from in a perspective. and supply is still relatively tight. >> what percentage of your customers have had to apply for mortgage forebaerns? and what percentage have come out of it if they've gone into it >> on the forebearance side. we saw a lot of people that moved in very quickly requesting forebearance but what's an interesting trend as we've seen and engaged with clients and checked in with them and said how you are doing

we see about 85% in like the credit card space the first leading indicator saying we're not going to need additional forebearance we're doing fine we don't need to extend. we're seeing positive signs of a return to health of the clients as we start to kind of get through this period. >> one theme, steve, we've seen with some of the other bank executives that have come on is that their digital apps if they already prepared for that and put money into the apps have seen a large amount of adoption. is that transformational for your industry, in particular for large legacy banks like your own to prevent perhaps zrupgdisruptn that might have happened over the years ahead? >> if you think about the last decade, we've made huge investments in igital. when you see how that is paying off across all asset classes, it's really significant. so just a couple of quick stats for you.

even basic deposit accounts were opening up 44% oufr accounts digitally and online so you're really seeing a big shift by the consumer to adopt digitally and also how they tra transact so we have 13 million checks being deposited by taking a picture. that represents, you know, 30%, 37% of what we're doing from a deposit perspective and then our participation on the zelle network has been huge as well. over 11 million clients who transferred $117 million either sent or receive transfers for $32 billion. think about that that was up almost 0over 80% yer year if it is tranceacting, applying for loans, investing, we've seen

clients adopting our digital capability and the investments paid off for us to be there for our clients. >> you're also vice chair of diversity and inclusion at bank of america are you content with the firm's record statistics on diversity >> i never use the word content because i always want to continue getting better. i'm proud of our representation at all levels of our organization but we won't be content until representation at all levels are consistent with the representation of those participate in but you know in june, we made a commitment on top of everything else that we do. a billion dollars to help address issues around racial inequity and social issues and we're focusing those in areas that get the fundamental reasons for inequity, health, help nl care, access to affordable financing, jobs and

reskilling and small business. so that will be philanthropic and business invest mement is gn to really help us participate in making a difference in addressing issues. so not just representation in our company but how do we work with our clients to help more small business clients owned by people of color, help continue growing affordable financing and so we have that both on the homeownership side as well as on the affordable rental finance side >> steve, thank you so much for joining us >> good to be here >> after the break, today is black women's equal pay day. meaning a black woman have to work for all of last year and up until now to earn the same as a white man did in 2019. we're going to talk to the former bet ceo about how to close the gap in corporate america. we've got 37 mut lineseft of trade. dow is down about 80 points.

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welcome back 35 minutes left of trade today is black women's equal pay day. how black women have to work into the new year to earn the same pay that white men earned the previous year. currently, the average woman earns 82 cents for every dollar earned by white men. but black women, it's 62 cents for every dollar earned by white men. it starts with leadership. in the board room. we found black men account to be 3%, just 3% of board directors atop 200 s&p 500 companies that's according to spencer stewart. they make up about 7% of the workforce. the so our greatly underrepresented at the top of corporate america. over the past five years, representation there has only improved 1%. black women, only 16 black women directors out of 345 total board

seats. coke, chevron and united health care are notable standouts because each of those companies has two female board members each many companies in the dow from walgreens to travelers to mc mcdonald's and apple have zero things could be changing since the george floyd protest and the increasingly loud pledges for more equality. we're told by executive search farms that boards are very interested in adding black and black men and women to their boards so things should improve in the coming months. and boards are key directors can hold management accountable to hiring and on pay during this moment they also, by the way, have the ability to put black women in the ceo spot currently there are none in the s&p 500. for more, let's bring in debra lee. former chairman of ceo of bet network. she is on the boards of at&t,

burbury and as of yesterday, procter & gamble >> thank you for having me >> why are we not seeing progress on this front for black women? it's good to see you st what do you chalk it up to? >> i think that we don't see more black women because companies are not committing -- committed to doing it, to putting black women on their boards we brought on more black women and men. but it's hard to do. and it's -- i hope that george floyd incident as you mentioned will be a turning point. and more companies will commit to this what you're seeing is companies writing checks social organizations and that's great. and companies making psas and making snis statements about how committed they are to black lives matter but people are saying, okay, if you're committed, what does your board look like?

what does your executive team look like? do you have black men and women on those two entities? i think a lot of companies are feeling more pressure. i get so many young black people interested in serving on boards. i also get calls from companies about whether i know people or not. so i think the boards -- the companies just have to be more committed and make it happen i'm actually starting a company called the monarchs collective to help companiesfind the boar members that they need and as you said, it's really important. the boards hold companies accountable for what the executive team looks like, the social impact of the company and who they do business with. are they doing business with diverse owners

so there's a lot that you can do as a board member to help companies go in the right direction. >> what can the private sector do about the pay gap why is it so large why aren't we making progress there either >> yeah. you know, it really shocks me. it is black women, equal pay day. the why does it take us 20 months to make what white men make in 12 months. that's what we're saying eight months into 2020 is when black women catch up with white men as of the end of 2019. the it makes absolutely no sense. and companies should analyze their data there should not thb pay gap

we're seeing black women in all different kind of sectors. yesterday was historic with kamala harris getting picked by joe biden to be on his ticket. there's no reason we're paid less than white men and white women. so i hope companies correct this quickly. >> will they correct it quickly on their own, debra? should we get to the point -- are we at the point we require it to be mandated by law >> well, i think there are a lot of things companies can do and should do on their own the hope the jorgeorge floyd incident isn't a movement and is a moment we always have to make companies show commitment. and i'm not advocating for regulation but you see what california did with mandating that one woman be

on each public board, public company in california. and then you see what goldman sachs did where they said they're not going to take company public if it doesn't have a woman on its board. i think companies should do this with race. the they should say, you know, unless there is a bhak person on the board, we're not going to take them public you know california and other states should say you need to look at your numbers much you need to do better so i think the pressure has to be put on the companies to do the right thing. i have no idea why some companies who look at their executive team and their board and it's all white people. and that's just unacceptable today. it was unanticipatable 20 years ago when we first started talking about this and we just need to make more progress. >> yeah. >> debbra, i want to bring on the added urgency of the pandemic for black women, the

unemployment rate is 13.5% national average, you know, is 10.2%. there's one study that says one in it three black women have front line jobs. so they're exposed from a health perspective and from an economic perspective. what's the solution there? how do we take this moment where there is a feeling of wanting to change in corporate america? what can business do to dreaddr that issue and something that they exposed in a raw way. >> covid-19 has really shown the disparity in health care that black people receive it showed the disparity in jobs that so many of our black women are in essential positions and are forced to be on the front lines during this pandemic so a lot of people are talking about it you've seen the numbers of how hard the black community has been hit and how hard the latino community has been hit i hope this is a time that when

we get through this if we get through this and when we get through this that more will be to even out these disparities. any disease you look at black people are hit harder. we have more diabetes. we have more heart disease, you name it. and we just need to resolve these issues one of the things about this moment is people are no longer afraid to say black. before george floyd, it was saying people of color and now they're saying black people are hit harder than any other group. we see it with the police misconduct, you see it with covid-19, and we have to focus on this. we have to make changes and companies need to commit to doing whatever they can to make the changes it's going to take to get rid of these disparities. >> debra lee, thank you for

joining us. >> great thank you for having me. time for a cnbc update. >> good afternoon. we start in georgia. the governor says he is dropping his legal challenge to atlanta's mask mandate he sued atlanta's mayor and city council. the decision drop the lawsuit comes as negotiations between kemp and atlanta's mayor have broken down. a fight over the future of washington, d.c.'s nfl team is reportedly heating up. minority owners are pressuring dan snyder to sell the team and they want to sell their stakes in the team. snyd snyder reportedly has no intention of selling and in florida, federal agents are taking over the investigation of a man arrested after police found more than two dozen pipebombs. he is charged with 26 felony counts that's your cnbc update. >> thank you so much still ahead, we'll speak with facebook's head of security poll sbi what the company's doing to prevent election

interference on the platform here is a check in on bond yields feengfully higher today. we're back in a couple minutes when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

breaking news out of washington >> fresh evidence, they're nowhere near a deal on capitol hill mitch mcconnell took to the floor to announce that after

today's senate adjournment, they're going to continue in pro forma session until after the labor day weekend. it's been very, very quiet on capitol hill this week a formal recognition that there is nothing in the works here in terms of a deal. mcconnell saying that senators will have 24 hours notice if he decides to call them back. that means there is no deal happening within the next 24 hours. back to you. >> not a good sign for coronavirus relief package to be passed any time soon after the break, the chief economic adviser giving us his take on the market we'll ask how the stimulus baupn earyiector in and this ck itrsu ylds. bowl of french on. i'm going to start the bidding at $5.

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the s&p 500 trading near record high. of course, pulled back during the session. we were not likely to get that record close today the chief economic adviser at pimco joins us now great to see you as always what the do you thiscy kind of weighing on the market's inability to get over the line at the moment? do they need to see a stimulus bill to get over the line? >> i think that would help i'll put it the other way around what got us to the near record highs at a time when we just heard the stimulus bill isn't going anywhere and when economic indicators including the new york feds wei suggest we level

off. this is conditioning of ininvestors and what is interesting about this week is how we are getting to these levels not just at the fact that we're getting it despite what is happening elsewhere. but how we getting there >> i don't understand how the market is not more concerned about the fact that there is no stimulus bill or why republicans aren't more concerned. so, what, people were -- people are unemployed, the millions of them out there were getting $1,000 a week and now getting $400 a week. isn't that a big income shock? >> it s a couple things calming the republicans. one is that once again the economic data surprised on the upside i always caution people, that is relative to expectation. and absolute terms, we still added almost a million people to jobless claims this week and

continuing claims are very high. but the second things that, i think, also making them feel better is this notion that the supplementary unemployment benefits were too high if the data changes, you'll see them change quickly. >> we've seen quit a big move higher in yields over the course of the last week or so the ten year is back above 0.7%. whast is driving that? do you think with he have seen the all time low for the long end of u.s. yields >> on the first one, people are falling out of love. you can risk losing a lot and gain a little bit.

other assets are becoming safe havens gold is a perfect example. i'm amazed by how many people are using gold to hedge different things i mean all sorts of people are getting into the gold camp and also tech. tech continues to be seen as offering everything to everybody. the upside on more business and protection from the downside >> i think we're in a technically driven rally you've got to respect the technicals:you heard me say this over and over again. respect the technicals the if anybody says i'm going to short this market, don't do it the technicals are really strong however, the technicals have to

hand off to something else that's where fundamentals come in so i tell people, you know, if you're a tactical investor, you will love this market. if, however, you are worried about putting your money in and not worrying about it for six to nine months, i would be cautious here i'd be more cautious at this point. >> thanks for joining us. >> thanks for having me. pt. >> after the break, cisco takes a big leg lower. it's weighing on the dow a retail update from tapestry. those stories and much more when we go inside "the market zone. ♪ with a happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

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highs. they briefly traded above what was required for a record all time close down .1% dow down 0.4%. nasdaq higher, 0.3%. mike, clearly just struggling to find a close above that level. and i guess showing that maybe if we cross it it's going to mark the short term peak as opposed to a fresh breakout high >> it's august we're through most of earnings it seems as if it trading against this old high is currently the game i think it's been difficult for the market to have things working all at once. it's been either one group of stocks or another. that's been managing to find buying interest. so the big growth stocks bounce nicely but already after that bounce things like apple will look extended so what more can you ask of them i do think the question is now whether or not the short term it's a little bit of a kind of a we made it mission accomplished culminating type move to get to the highs.

i don't think it sure matter so much the s&p 500 is up 4.5% year to date s&p 500 is up 16% on a 12 month basis. it shouldn't have that much significance but clearly it does tactically in the short term. >> well one factor that's weighing on the dow in particular today is cisco. it is the worst performing stock right now in the dow reacting to earnings last night. the worst performer in the s&p 500 down about 11% revenue fell for the third quarter down 9% from a year ago. seeing significant hits to the product, infrastructure and application segments cisco expects another 9% drop in revenue citing coronavirus uncertainty as customers delay purchasing decisions we talked a little about it last night, mike. didn't expect it to go down quite this much. shaving 35 points off the dow. and "wall street journal" has a good piece about how it's no longer the tech bellwether used to be such an indicator of

enterprise spending and what companies were doing on technology now it's not zbhp it's not as much, no. it hasn't raemy been an organic growth story for a while it's been growing at the pace of a kind of maintenance cap ex type thing the companies tried to reorient itself in the growth direction in the area that are supporting data centers and stuffthat's really growing clearly the macro is driving what's going on at cisco it has this old tech discount too it it's going to be probably hard to shake and the stock now back to where it was trading in early 2018 >> steph, what is your take on cisco? i know you dumped out of your intel recently what is your view on cisco >> yeah. the same day i actually sold intel i sold cisco pt i got a little lucky on that. i just didn't really feel

comfortable about the enterprise market seeing very significant snap back. so the quarter, the internals real were tough, very, very tough. orders down 10%. commercial orders down 23% enterprise down 7% services flat for the first time in seven quarters. they didn't buy any stock back and they're seeing no signs of improvement throughout the quarter. so i just think this is going to take a very long time to see a recovery they may be prerm nentermanentld if we don't have 100% go back to work i kri t i think the cfo resigning at 53 is a shock it's going to take time to regain the trust of a new ceo. i'm sad to see it. i like chuck robins very much. i don't think he necessarily needs to be buying this dip today. >> i want to ask you about what you thought about the broader market growth and momentum were holding up better today than the value and cyclicals.

we are losing some steam on the major averages. we've been on record high close watch for a while now. what do you make of the weakness >> yeah. i mean it was a relatively quiet day now that earnings are pretty much over. and so we are as a result at the mercy of the macro, the headlines. we have the balance between the fiscal package negotiations and also the upcoming elections and the uncertainties on the upcoming elections as well as economic data. and while economic data is getting better, it is certainly leveling off a bit we'll have to see how it goes. but i'll just point to initial claims being under a million while that was better than expected but still four times higher than precovid-19 levels and that is why i think, sarah, you are going to get a fiscal package. you're going to see the negotiation for the next couple of weeks i market goes side ways as a

result i wanted to point out shares of tapestry what was a beat on the top and bottom line. the luxury retailer didn't offer any guidance they expect the recovery to be gradual. all tapestries brands coach, kate spade and store whitesman saw sales plunge 50% i did talk to the interim cfo. she is in charge of driving this turn around. she offered me color saying that they safely reopened a vast majority of the stores when they were close ted beginning of the quarter. she is also seeing younger customering coming to brands like coach and overall what she calls strong purchase intent from the customer. she says the company adapted quickly with curb side pickup,

trip triple digit growth in digital and the tapestry associate dozen virtual shopping parties with clients. and she says they returned to prepandemic growth in china. but in the meantime, she is controlling the controllables in the words of former cfo which means cutting costs which helped lead to the beat on profits. fwhut is a company in turn around mode without a permanent ceo and bizarre drama surrounding the exit of the previous ceo many retailers could be an uphill climb doesn't look like wall street necessarily bought the bull case yet. they'll have to see more proof she can engineer this turn around for growth when demand comes back and states continue to reopen. >> too many hurdles for the street to really buy into the idea that there's been a path cleared. you know, it's often this stock along with a couple of others, one of the best or worst performing on a given day. it's a light switch, going back to malls and we're going to

start going to work again and need accessories or we're not. and we're back in this shutdown mode it sort of cheap if you look at it on any kind of normalized basis. a lot of the sort of mall dependent retailers are or the clothing accessory retailers are. but that hasn't been enough really to really put a lot of wind in the sails. people don't doubt the quality of the brands. it's whether they have relevant relevance of being able to grow in the future. >> why are backs more broadly when yield have risen so much? >> well, i he mean some of the banks are up 10%, 15% in a couple of days, i think it's just a little profit taking for sure but today was definitely a risk off day. today was a growth technology day. communications as well so i think -- i'm a little bit more excited on because the ten year has a seven handle. 70 bips. but certainly better than 50

there's a long way to go you have to be selective you know the name i own are special situations within financials wells fargo the new ceo, morgan stanley is the e-trade and american compress the reopen of travel and entertainment that will be slow and gradual. i think you want to be patient be stock selective dividends are higher and i just think you have to be patient with this group. >> why do you want to see interest rates go higher, steph? >> i want to see the yield curve steepen. >> i'm sorry >> if you have the -- yeah because that's how, like, for example, bank of america i didn't mention that one. i own that as well they're so dependent on net interest margins and so they have to have a steeper yield curve. i think if you get better growth, sarah, in the economy, you will see a gradual steepening but yields are going to be low for a lot longer the fed is telling us that you kind vf to have the special

situations stories so that you have other ways that these companies can grow earnings. >> all right looks like we have two minutes left to go in the trading day. mike has more on the market internals. mike >> yeah. they've been pretty shaky all day. we mentioned earlier, the big nasdaq stocks carry the average stock underperforming versus down pretty decidedly to the negative it's been like that most of the day. it has weakened over the course of the afternoon take a look at bonds versus stocks in this particular way. long term treasury etf tlt. it is obviously in a down turn meaning yields going higher. s&p 500 holding up in that context. again, it's not necessarily a static relationship right here it's much p more about the kinds of stocks that tend to perform better we're in a zone where higher yields and better nominal growth outlook is okay as long as it's not just a buyer's boycott of

long term tlereasuries with bad auctions and then the volatility index, as i say, generally been cooperating with the rally story. right now it's neutral on a day to day basis >> one minute left of the session. it doesn't look like we'll have that record all time closing high for the s&p 500 which is down .25% on the session you can see it was green for a lot of the morning it was above the necessary level to have a record close doesn't look like we're going to get there today. nasdaq continues to lead up 0.3% all three of the indices well off their highs of the session in terms of sector performance, tech and communications services outperforming as we've been

saying gold final i had stabilizing it's up slightly down 3% on the week after that extraordinary run that gold had in the prior couple weeks. dollar is a little soft. ten year treasury note moving higher at the close, we are lower on the s&p 500. >> didn't get there again. welcome back, everyone if you're just joining us, i'm sarah eisen with wilfred frost oem t only the nasdaq closed higher on the day. cisco the biggest loser. apple the biggest win enon the day. it's down .2%. second down day in the last three. for the week going into a friday, we're still higher on the week by .7%. so on track for a third day, third week of gains in a row assuming we close higher on the

week after tomorrow's session. minor day of selling there for the averages the market is in a dangerous situation. that's according to dan niles. we're going to get the take on the eye popping valuations including which tech names he says to take refuge in right now and which ones he is short joining us to talk about the market today, first stephanie link still here from high tower. first i send it you to, mike the weakness we've seen and which stocks stand out and the session overall with this sort of underlying softness >> the gears are slipping a little bit in the market it seemed as if once we did break above what, you know, the prior june/july range, almost everybody and every side of the

market, bulls and bears were like going to go tag the vicinity of the all time highs it seems like it was just going draw thingsthere it has it's clearly got a psychological wear and tear in the absence of other factors. one thing i'm looking at is whether in fact you are seeing this all happen getting about a being to the old highs at the very moment where finally more people have bought into the idea i'm looking at some sentiment indicators positioning stuff that says people are now aggressive than they have been for months. and, therefore, you know, look for any excuse to maybe flat enout or back off here before too long april sl struggling to get there. there is a lot stuff that seems like it's in a culmination phase than gathering up energy to go a lot further.

but that's more of a short term call than anything else. >> what is your outlook for u.s. equities forrest of this year? is that a lot short term up about pyness >> i think most recently we've been focusing on the good news the fact that we started to see some better data in terms of daily new infections, lowering the risk of a nationwide shutdown a double dip recession we've been focusing also on the earnings season and how expectations were pretty low and the reality has proven to be less bad than feared. i think that's the potential that is lurking beneath the surface for a little volatility unless we see an agreement i hope that, you know, it's clear that the improvement that

we've been seeing over the past few months has not just been mechanically reopening the economy. it has been the fact that all of this fiscal support has filled the hole that will be left by the pandemic we still have double digit unemployment rate. it's really important to get more enhanced unemployment benefits, to get maybe more stimulus checks so that we can continue with this recovery. that really the potential for volatility on that fiscal assumption >> why do you think we haven't seen more volatility on the fact that the unemployment benefit bumps fading and a potential hit to gdp >> because there's no alternative, clearly the bond market, you know, people got crowded into it are there really returns there

dividend yields and dividend growth and strong balance sheets massive amount of liquidity. we all want another fiscal round. you still have tremendous amount of liquidity in the system 44% of u.s. gdp in november of 2008 the last crisis it was 5%. that is enormous 30% m-2 growth that is too hard to fight. growth, value, whatever. and so you can get yield as well in that kind of an environment >> mike, does the market want a weaker dollar or to sort of tread water for a bit and plateau? >> it is generally preferred a weaker dollar at least in the sense it was feeding the

strength in the biggest stocks in the market. i don't think they like disorderly sudden moves. so that's the disclaimer on that you wouldn't want it to keep shuttling lower. in general, the weaker dollar is consistent with the market staying well supported this is a back and forth relationship as well its no the something that is always true. >> we have new developments on the apple store. being sued by a high profile video game company we have the details. >> apple removed epic games fortnight from the app store and epic is taking legal action against apple filing suits to end what it calls apple's anti-competitive restrictions on mobile deinvites marketplaces. this started because fortnight offered what it called a permanent discount on in game

purchases made when using epic direct payments, circumventing app fees epic benefitted from the ecosystem for a decade and saying if epic, the fact that the about triz lead them to push for a special arrangement does not change the fact that these guidelines create a level playing field for all developers and make the store safe for all users. they're not seeking monday taker qui compensation, instead, it is seeking relief to allow fair compensation in these two key markets that directly affect hundred of millions of consumers and tens of thousands if not more of third party app developers this is going to be really interesting to see how this battle between epic and battle plays out. just to give context for scale, censor towers is the game reached 133 million installs and seen $1.2 billion in spending worldwide. back to you.

>> thank you very much for that fascinating to see how it plays out. it's not immediately a game changer. ut could have huge implications for the broader long term future of the app store >> the for sure. not a big revenue hit probably in any, you know, defined time frame that we're looking at. however, apple story has been one of massively expanded valuation predicated in part on the fact that it was a much steadier revenue stream and services based and very much kind of an automatic story it's not the biggest mover of the needle it's one of those things that a lot gf is priced into apple as it sits own the press hiss of a $2 trillion market value >> i mean it still closed up on the day 2% so a report like this didn't rattle it.

it does raise a question apple's considered facebook and google and amazon, maybe one of the least threatened by analysts and by those that cover the stock from regulatory action, do you see any worries here >> they've been at odds for such a long time. i think what you have to just step back though for a second and look at services and how much the margins have been expanding over time. it will be interesting to see if apple caves. i don't think they will. they were in the services business so i think one hit is not going to be material it's not going to be a big dollar amount. it is a ent. thing. to your point, stocks still ended up on the day. >> what do you think about the valuations in the tech stocks like apple and also this move

towards stocks splits and whether that perhaps paints a picture of bubbles in the market these are very different tech companies than we had in 2000 and 2001 they're incredibly profitable. we're not just waiting open hopes and dreams for the business model to play out these are themes prepandemic they're getting amplified during the pandemic and they'll very be important after as well. including everything from 5 g, digital payments so we still very much believe in the tech theme and the u.s. market is where we want to get access to that when we think about further up side though, when we think about cyclical and different sectors,

that's where we start to think a lot more about adding exposure to certain international renal yonz our high, highconvection is europe and emerging asia that way we have a balance in the portfolio. >> stephanie, thank you so much for joining us >> thank you >> thank you >> up next, he went short some of the big tech stocks in july covered some of the short. the is now warning of a new valuations problem that could hurt tech stocks apple's dan nildz is joining us next to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest.

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all the major averages lower for the day. let's join dan niles great to see you thank you for joining us >> my plesh huasure. want to start on the jum npz tesla and apple after announcing to being splits. the do you think the jumps were purely because of the stock splits does it worry new terms of what it suggests the levels of valuations we're at? >> if you look at tesla in particular, there is no earnings announced on that date the only piece of data you got was they were splitting the stock. the stock took off and so there is no economic value added from that. and so i remember seeing similar things when you go all the way back to 2000 where, you know,

metrics or things said that didn't matter, you know, drove stocks up tremendous like a company changing its name and adding dot-com behind it the stock goes up a tremendous amount the next day. yeah these are all signs of froth there is a great phrase that the market can stay irrational for longer than you can stay solvent. so these stocks are up 20% off the stock split. could they go up another 20% sure because you're already at record valuation territories and there is nothing to say that it can't get more insane from here. that's what you have to think about. valuation is a very poor timing tool it's a very good tool if you use it in conjunction with fundamental that's are getting a little rockier so that's how i think about that in sort of a package >> as for the stock that's do have valuations, dan, moving away from tesla as a specific example. clearly there is a lot more people entering the market for the first time whether that's

because they're unable to do so on the smart phone or unable to do so from stock splits or free commission free trading. and clearly there is a lot of money printed by central banks does that drastically alter what a reasonable valuation will be for all stocks in the last decade >> well, for the short term it does one thing i remind people is that we take a very u.s. centric view you look at the dividend deal you had a guest on earlier saying there is nothing left to invest in. but you compare that 1.7% dividend yield or so against a 26 pe for the market, if you kind of move a little bit overseas, i mean germany has a negative 0.4 rate. they're both, you know, obviously very stable countries. they've got dividend yield close to 3% around that level. and the pes are about 20 times so 20 times versus 26 times.

even japan which is obviously very stable country, you know, same situation much higher dividend i think the pe there is at 23 times. they've got basically, you know, no yield on the ten year so valuations if you try to step outside and just look at it who holistically, they're high we're going into a contentious election obviously, the stimulus package dragged on longer than most people think it's going to come down from that $600 extra a week these are all risks. you can walk in on any given day and then see the market getting hit. june he is m, it was down 6% for a day because people wake up and say, you no he what? cisco talked about us and small and medium businesses being down 20% year over year, accelerating from minus 11. microsoft talked about small and medium businesses having an issue. you have an issue.

so i think investors need to be more balanced than looking at just stock splits and saying that is wonderful and driving things higher. >> so i think last time you were on, dan, end of july, you put all this on twitter which is good in the interest of full disclosure you shorted some of the your beloved and the market beloved tech names like microsoft and amazon i think covered the shorts since. how do you make the short term calls on these stocks when so many investors we talk to on daily basis just say these are long term opportunities for secular growth and will do well no matter what economic environment we're in >> the answer i would have to that is you can go back and look at amazon in 2000. that stock peaked at $106 a share. the revenues were around 1.6 million or so if i remember. then over the next twoers yoo, the revenues went from $1.6 billion to $3.1 billion

the stock went from $106 a share to $600. so down over 90% and revenues doubled. you can have that view everybody always want to believe this time is different but valuations do matter and that's just a measure of the risk you're taking on. it's if i threw a gold coin into the bottom of a pool worth a million dollars and said, hey, should you jump in and get it. i put a bunch of man eating sharks in there. jump in, get the coin, get out and be fine. doesn't mean you made a good decision to jump in the pool the valuations are high enough where you have a bunch of sharks swimming around in the pool and maybe they are fed and maybe not. you have to take that into consideration and that amazon example i just gave you, obviously a great company during the two years when the stock went down 90%. but it does in fact matter >> so what you are doing with the name right now

we're trying to say okay, let's say we get a vaccine so people go to the store. tech stocks are catalysts in front of us. take two, ea, you know, sony, et cetera where we own those we go -- we've got a new game console coming out for first time in seven years. more people are playing on line and getting together with friends online you get a vaccine. people go back to work, school, et cetera. that should another catalyst and we're marying that with shorts in the high momentum software

names. it is a clobbered system it's especially at these levels. a stock market was down on march 23rd and they're up 30% that to me is like gambling. >> it's the story that broke earlier this afternoon they're suing apple in response for kicking fortnight off the app store. >> epic games chose to be on the platform there is half a million devices

globally their installed. i think tim cook, the thing he's done the best by managing is the relationship with washington and his relationship with china. he's been masterful. the best ceo out there there is not much much traction. obviously, we have an election coming up in 90 days we'll see if that changes the calculus but for right now, it's not something that keeps me up at night on apple, quihonestly >> dan niles, thank you. always good to check in with you. >> thank you coming up, we'll speak to nathaniel gleicher about threats to the 2020 elections and lessons learned from 2016. and the march selloff was steep. was it too short mike is taking a look at how that could affect momentum going forward. we made usaa insurance for veterans like liz and mike. an army family who is always at the ready. so when they got a little surprise...

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welcome back stocks fell today. treasury yields hit eight week highs. let's go back to mike santoli. let's get historical context as usual, mike. >> sarah, it's in rare company take a look at the s&p 500

since the march 23rd low, that's the green line here. up against two of the great kind of generational rallies off of a bear market bottom in history. 1982 and 2009. thanks to keith learner for putting these together for us. even if we were to track those two prior early bull markets, okay, maybe it bokz off a little bit. then you go higher the significant thing is, of course, both 82 and 2009, the beginning of multiyear pullbacks. the market was certainly favoring the bulls for quite a long time to come. it caused a lot of people right now observers to say this is a new early bull market phase. it's a new economic cycle. and all rest what gives me pause though about saying it's like 2009 in 1982 is we didn't have as much of a refrenchment in the market take a look at this rolling ten year return chart. every moment on this chart is what the prior annual return over the previous decade

and what you see here is it was around 9%. the market was still sitting on a 9% annualized return over the prior decade if you look back at the 2009 bottom you were negative over the prior decade the 1982, you were here in the low single digits. this is 1974 my point being, we didn't really have a purge of valuations and you didn't have that huge down side reset which had previously come before those big moves in '82 and 2008 that's one final thing i wonder if it's more like 1987 which was a bull market under way, a major crash and a shock it got back to a year later. you still had had a couple decent years but it was not up, up and away for a very long period of time we can dhedebate this a long ti. the market valuations did also not really reset lower guys >> well, i guess that makes it unusual that we would start a new bull market after not seeing that kind of long term pain that

you spell out. the but then again, mike, everything about this is unusual. the length of recession could be pretty unusual the depth of the recession and the cause, obviously the fact that it was basically man made >> the brevity may be an extraordinary thing too. presumably we might be over in after this quarter a lot is not typical of prior business cycles and market cycles which is why i don't think it makes sense to run the script of previous cycles and say that's how this is going to play out also, you know, you don't want to foreclose on the possibility it was a very important low in march of this year >> always with a word of caution. mike santoli, thank you. up next, former presidential candidate and hp ceo carly fiorina weighs in the global tiktok debate and 'lgehewel t r take on stimulus negotiationors lack there of in washington. ing. like how we redefine collaboration...

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secretary of state mike pompeo making comments that president trump's executive orders against wechat and bite dance could be broader than just those apps this comes as more than a dozen major u.s. national companies claug walmart, apple, disney raised concerns about the bans with white house officials joining us now in an exclusive interview is carly fiorina, former ceo of hewlett-packard. welcome. we thought it was a good question to ask you as someone that used to run a u.s. technology company and also ran for president. do those two interests on business and politics are colliding here with the president's policies especially banning wechat which makes companies more competitive when it comes to doing business in china cording to them. >> well, first of all, i think business and politics always collide, majrle when it comes to

china. there's reason to be concerned about wechat and tiktok and that policy in general. i think the executive orders with wechat, for example, is a sledgehammer i'm concerned that process didn't include the business community at all and that's not useful. all of these businesses that were on the phone with the white house have a lot of business in china that benefits them and, of course, president trump threatening that the u.s. treasury is going to take a cut of any sale of tiktok u.s. operations to microsoft is both unwise and unprecedented so i think it will be better if the trump administration would be more thoughtful, more careful and more precise and engage the business community in deciding what is it exactly that would make the most sense in terms of sending a message to china about

their behavior without sending the message that we're disorganized and don't really know what we're doing >> the do you have anything in mind specifically about what should be done >> well, look. i've said for a very long time that china, we need to take a more firm and aggressive posture towards china. i think the policy is weak and inconsistent for a very long time the obama administration was weak and inconsistent with regard to, for example, what china was doing. there was the prevention of u.s. companies to gain access to the capital markets in china or even to make a profit in china. so a tougher policy is required. on the other hand. the chinese are exceptionally strategic and careful. we need to be the same

and that means we need to be consistent i would argue that we need to consistently be saying to china that as long as we cannot -- american companies do not have the conditions under which they can make a profit, nor are they under conditions with which they can protect their property in china, that those conditions also need to apply to chinese company in the united states it does not make sense that china can access our capital markets at any time for any reason and we cannot access their capital markets. it does not make sense that china can buy any company they want for any reason they want and yet americans cannot even select their own partner much less buy a chinese company. and it does not make sense that for decades now china has been able to steal our intellectual property with impunity and the only people really working on that consistently have been the companies themselves not the

u.s. government. but all of that requires a careful consistent approach over time, not sledgehammer executive orders here and there immediately preceded by declarations of great friendship between president trump and president zi >> but carly, you just made a long list of what needs to happen so surely we get to a point where sledgehammer style executive orders is kind of all that's left. and you said at the top it's a shame not to see businesses consulted more but aren't those the very business that's in the 90s and 2000s essentially whether knowingly or not allowed all their ip to be stolen because they were happy taking the short term profits they were getting by growing their sales in china? >> no. i don't really think that's fair having led one of those technology companies i spent as a chief executive as did my staff enormous amounts of

time in china with the chinese government trying to negotiate protections of an property unfortunately, we didn't have necessarily all of the support from the government that would have been required we spent enormous amounts of time confronting the chinese government i don't think that's fair and they've been extremely concerned over the long haul about their inability to protect their interleblgt you'll property. i also think by the way, that the chinese government did -- was not -- let me say completely forthcoming with technology companies. the promises were made i can assure you that if you partnered with this certain company then you would be able to make a profit and we would protect your intellectual property the chinese have had a very long term strategy here and they've been very clear about it

they want it to become the manufacturing capital of the world. they wanted to become then the technology tap call of the world. and unfortunately, they are willing to make agreements and then they are willing to break those agreements >> i'm sure that they made -- sorry to interrupt i'm sure they made promises they did not keep i absolutely believe you on that but at the same time, what you're also essentially saying is you were perhaps because they lied to you, but you were led to believe that you could make profits in china and protect your ip. but you were wrong on that >> the arrow was made while you were at the helm of respective companies in the 90s and 2000? >> no. i don't. i'll tell you why i don't. because in every other country,

in every other market, in every other trading agreement, it is a logical assumption and it is the rule that companies both make property -- make profit and protect their property china is the outlier, not the ceos of the companies trying to do business in china you and i have had this conversation before on the floor of the stock exchange. were american companies and government naive when china said we're going to do certain things to gain entrance to the wto? perhaps. but what i'm also suggesting is that the u.s. government has not been consistently focused that they broke the agreements with the wto. we need to get tough with china. to say it's all up to the

individual businesses won't work to say government can -- is allowed to be inconsistent and pay attention to other things for decades and then suddenly come back to it won't make a difference what needs to happen is the u.s. government, congress, the administration whoever that is and the business community has to work together to develop a strategy that they will then execute with consistency over time >> totally >> we have done that as a nation >> saying it's not only the company's responsibility at all. we have taken up so much time on this topic but the fact they're an outlier is not really a defense. they lied to you sure they might be an outlier but you fell for it. you fell for the lie >> yeah. i guess i don't know what the point is, actually because what you have seen is a set of companies whether it's adetroit as, apple, i mean, you name it, walmart, you've seen a

whole set of companies try to play by the rules that china, the world trade organization, that everyone laid out and so i don't know what the point of assigning blame is. but if there is blame to be assigned, i would say the blame needs to be assigned towards the chinese government and that is why the u.s. government needs to be involved in a consistent way and needs to consult with those businesses for whom china does remain absolutely an important market >> absolutely not trying to assign blame just raising the question when someone's trying to absolve them self of blame as well. by the way, great discussion and it's highlighted. >> i wasn't solving anyone of blame. i was only saying we have to be realistic about china here and so actually i think you started the conversation about blame >> carly, it was great

conversation and we're out of time. look forward to continuing it another time thank you for joining us >> you're welcome. >> up next, misinformation facebook making a push to protect the 2020 election. we'll speak to the head of security policy when "closing bell" returns. ♪ 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.

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time for a cnbc update. >> here is a cnbc update at this hour the justice department is accusing yale university of illegally discrimination against white and asian-american applicants the justice department says the yale is violating civil right laws and is demanding the university to stop using race and national origin in the admission process.

in iowa, two more deaths are being attributed to a powerful storm earlier this week. a woman was killed by a tree that fell on her house and an it, was electrocuted by a power hin he was reconnected 200,000 iowans are still without power. and in northern oregon, a wildfire threatens 1,000 homes 150 evacuation orders have been issued firefighters say the fire was caused by humans but have not elaborated further palestinians are pulling their ambassador to the united arab emirates following that country's decision to establish diplomatic relations with israel the palestinian president says the agreement amounts to treason and should be reversed and that's your cnbc update at this hour sar yashgs back to you >> all right thank you. up next, protecting the 2020 election facebook says it's taking some big steps against election miss information. we'll break down the key threats that the company is working to counter with the company's head of security policy

that's right after this quick break. when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

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big tech is starting to prepare for the november elections. they're aimed at providing users with official information and to sprent misinformation, joining us now is facebook's head of security policy hvenlt thank you so much for joining us talk us through the exact aim of what this is that you just launched ahead of the election >> sure. thanks for having me these -- we're launching voting information centers on both facebook and instagram they're going to provide accurate and current information for users on how to register where to register and when to register to vote and how they should vote and how the process is going to work. >> this is part of the largest voter information campaign in american history

our goal is to register 400 million before the election. one really important component of this is that it protecting an election, an important element of that is make sure people know how to vote and how do we engage we know that disinformation and influence operations which is what my team focused on. providing accurate mfgs from state election officials from bipartisan, nonbipartisan experts about how the process will work and what people can expect we're hoping to help inoculate public debate and prevent the disinformation that we'll see coming >> all that sounds very appealing, particularly impartial. that is one of the words you said bipartisan there is one part that jumped out. a section you described as 2020 election news. and you wrote, "for people who want to find deeply reported and

well sourced news about the 2020 election." who makes the call as to what is or isn't well reported or sourced? >> for the voting information center, we'll be focusing on prominent organizations that are reporting accurate information about how to vote, who to vote and the key of the voting information center really is this information from state elections officials and from the bipartisan groups that i mentioned. for example, if you're interested in how do you find -- how do you request a vote by mail ballot? how do you request an absentee ballot and have the rules changed due to covid-19 perhaps in the last weeks or months? getting that information out is the key here. >> i get that. that might be the bulk of what you guys are launching to day. clearly, there is a part of this that is described as news. and so what is the definition of something that is well reported and well sourced news that you

will promote as opposed to something that you won't >> we'll be looking to reporting by prominent tradition alameda organizations that are digging in to how the election is going and what's happening around the election we want to make sure that people have -- i don't want to give you exact examples here. we're looking at a range of organization that's are reporting on the election. >> you know, you also use the word accurate. what about political ads why don't you force them to the same scrutiny that you're talking about right now? why do they get a pass for putting out falsehoods to millions of people >> if someone violates our community standards, for example, if they incite violence or otherwise cross those lines, we take action on that whether it's advertising oregon beganic content no matter who is behind it. if you're talking about misinformation, this is actually -- and the voting

information center is an important part of this response. if a third party fact checker determines that a piece of content is false and we put a clear label on that, if it's a video, the label actually appears over the video so you have to see the label before you watch the video so you can see that it's been rated false. false. we also down rank the video so far fewer people see it. that balance ensures people can seewhat's happening in public debates but also they see context around it and they know it's been rated false. for any debate around voting or elections, if we see a candidate or prominent figure making claims about where you can vote, how you can vote, how reliable the vote is, people also see links to context that experts have put together about how the voting process works, how people will be counting the ballots, the protections in place and all

these other components in place to help people judge what they're seeing. >> it seems like a slippery slope. donald trump said he's not going to accept the election results how are you going to deal with a question like that that he disputes the election results? >> there are millions of answers here i don't want to deal in hypotheticals because i want to see exactly what the claim would be, but what i would say is for any claim about voting people see right next to it clear information about how the voting works and where the count is after the election when it seems clear we're not going to know the results on november 3ed is particularly critical. it's why the voting information centers during that period will show people where the vote is, what's happening and what they should expect to come next we can expect during that period a bunch of people domestically and foreign actors to take advantage of that time to try to argue that the vote is unfair or

there's something uncertain that's happening the best inoculation for that is accurate information about what's happening, what the process is and if the process is working as expected. >> thank you we appreciate your time. >> thank you so much have a great day. >> you too. up next, wells fargo when the world gets complicated, a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations.

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profile hires made and obviously another change in leadership whether this was by choice or by force with the new ceo, we're not sure so many changes, we keep mentioning them. he's been in the job for one year coming up in october. we'll be well and truly into the point where it gets harder to blame past management, past decisions for the issues that you're under even if things like a fed asset cap were imposed once you've been in a job for a full year and you've made all these changes, you've got to start taking responsibility and stop blaming and pointing the finger backward. >> that's a fair point it's surprising to hear he's been in the job one year it seems as if it's been in the mode of assembling the team and sorting out priorities a lot's happened since he took

the job that was outside of anybody's control in the industry or anywhere else. >> certainly true, certainly true and the banks, of course, have suffered from lower rates which might be starting to tick up the market obviously struggling a bit today, but still very close to those record highs. >> it's interesting, because if we were not right there hovering just under those highs and eclipsing them for brief parts of the day, we'd be looking at this market and saying, wow, it's supporting itself pretty well, it's had this great run, everything looks fine. but just the fact that we're watching this pot trying to boil and it's not quite doing it, it seems like there's something wrong, something holding it back we have to be on alert for these big moves in the bond market earlier this week we did see a lot of up ending of the trench trade and things like gold that's one of the reasons we're wondering if there's something else going on beyond just a

tired equity market at this stage. >> financials are up a percent on the week. industrials and consumer discretionary materials are the best performing groups that tells a tale of a strong economy. we go back and forth every day depending on where the stimulus talks hold and the virus is and this question on whether this is a new economic cycle or whether the weakness is going to catch up to us that continues to be the debate. >> the we're out of time "fast money" starts now. i'm melissa lee. this is "fast money. guy adami, tim seymour, dan nathan and bonawyn eison plus, we're watching the after hours action in shares o