the week, about 1.68% here about .5%. all right, tyler thanks for letting me hang out with you this week "closing bell" starts right now. >> thank you and welcome, everyone, to "closing bell. i'm sara eisen here with jon fortt in for wilfred today we're points away from an all time record high on the s&p 500. the index continues to bump up against that level just dipping into the red there. we're 3370 let's look at what is driving the action the rotation is back reopening trades like airlines and industrials and rallying while tech take the backseat what is hitting a record retail sales for the month of july despite the pandemic. that has retail stocks rallying.

delays from washington from the trade deal to the stimulus negotiations, deadlines and expectations being pushed back the we've got 59 minutes left to go in the trading week s&p 500, 16 points from a record close. down right now, jon. still higher on the week everyone except the nasdaq >> great to be with you this afternoon. we have a big show coming up to finish out the week. we're going to speak with minneapolis fed fred neel sakashkari and later, as stimulus talks grind to a halt, we'll speak with maxine waters about whether there is any compromise to be had. plus, she'll discuss a new bill encouraging the fed to use authority to close the racial wage gap in this country mike santoli is tracking the market action. start us off on the broader market. >> you can call it resilient or fatigue or really anything a

standoff here at the record high levels of the s&p 500. the past four days have basic clind of touched it or been shouting distance of it. the we're just hovering there. up 3% or so month to date. that is not bad. supposedly bad month of august i like to show a one year chart right now. the total return of the s&p 500 on a 12-month basis is over 20% right now. maybe people feel like this market is priced a good deal in. again, nothing has disturbed this idea that we're in this this uptrend even in fact the all time high levels is a pretty decent spot, i think, for bulls to wait and see if it has enough energy to break out above it and for bears to say let's make a stand right here the market is a little ahead of itself maybe it will take a patented monday morning pop higher to make a real effort at the high if we don't get it in the next hour or. so sarah mentioned this rotation going on i think it's incorrect to call it a rotation into value from growth much it's much p more about

rotation into cyclical sectors from defensive growth sectors. so this is the s&p 500 value index. that is basically done this month exactly what the s&p 500 has done slightly outperforming industrials up 1.8%. rcd is the equally waited discretionary. also up 8% so therefore bullish on the domestic spending. things like home builders and things like. that you have a home builders pure play. building on an already strong year it shows you the market is trying to get traction behind this idea. even if we have this big air pocket in terms of consumer budgets. >> i'm wondering, mike, i look at that s&p 500 chart year to date and we're right about where we were when things went off the cliff in february. but what has changed certainly everything is not the

same as far as the s&p 500 goes. just a number is about the same. >> that's right. the composition of the s&p 500 is vastly different today than it was back then you've had greater concentration in those huge faang type stocks. i think that if you look at the overall index, more than a third of it still is down more than 20% from a high. so it's really been kind of rotation from the many into the few. and now the question is can it broaden back out if in fact we get a little clarity and what the economy is up to and if profits can rebound as much as the forecast now says. >> yeah, banks still 20% from the highs. energy 40% from the highs. utilities 14%. mike, thank you. we'll see you in just a bit. the senate is officially adjourned until after labor day. the but president trump still making some stimulus headlines this afternoon we have them for us. >> yeah, a little news that white house press briefing this afternoon. the president said the federal government is going to activate

a clause in an existing contract to distribute vaccine ands vaccine related supplies that had impact in the shares this afternoon people reacted to that news. it's an existing contract that the federal government has with them but this will activate a clause that will allow them to distribute the vaccine supplies if and when we get a vaccine for the federal government to distribute meanwhile, the president as you say on the stimulus negotiations continue to really dump on the democrats blaming them for holding everything up. here's what he said. >> i've directed the secretary of the treasury to get ready and send direct payments, 3,400, for a familiar live foy of four to l americans. democrats are holding this up. i am ready to have the u.s. and sba send additional ppp payments to small businesses that have been hurt by the china virus

democrats are holding this up. >> so the president there saying he's ready to do those things. the no indication that, of course, he has the authority to do those without congress. the president signalling here he wants some movement in the negotiations which have completely stalled out f you ask the democrats, they're pointing the finger at the republicans as well so there is a lot of finger pointing going on in washington. not a lot of negotiating going on in washington and speaking of not a lot of negotiating, reuters is reporting that those trade negotiations that were scheduled for saturday, tomorrow here in washington between the united states and china, those are on hold the reuters reports. no official confirmation of that from the white house just yet. but that indicates that that phase one talk that was set to happen may not happen as planned. still though, there is no expectation anything is going haywire with the phase one talks. both side have an incentive ahead of the u.s. election to keep that deal on track. back to you. >> so here's what i don't get.

what is the white house's position on stimulus i'm not sure i understand why they're at odds with the democrats that want to spend more president trump is not face call conservative he added plenty to the debt. understands that more stimulus equals more economic growth. we've seen that over the last few months why aren't they trying to make a deal with the election approaching. >> democrats said they want a trillion dollars for states and local governments. what the president tweeted and said goen day, he's ready to send money to states and local governments. maybe he is signalling here some ability to concede on. that the problem for the sprez there are a lot of republicans on capitol hill in his own party that don't agree with that but feel there is already been too much spending. that a trillion dollars or more is far too much. the secretary said a trillion dollars is a ridiculous number earlier on in this negotiation

>> all right we'll see where this one goes, of course. >> you bet >> after the break, minneapolis fed president neel kashkari is wanting to do a shut down to battle the coronavirus you're watching "closing bell" on cnbc.

industrials and energy best performers on the week a four to six week lockdown. what the president says needs to do to combat the coronavirus he lined out his thoughts. he said here is how to crush the virus until vaccine as rife. he joins us now in a "first on cnbc" interview. president kashkari, great to have you here. >> thank you for having me good to be with you. >> so my biggest question around your plan is haven't we already

tried that i mean we did that a few months ago. it devastated the economy. worked a little bit for the virus. but then didn't crush it numbers kept rising again y would we want to do that again >> well, you're right. we did a partial approach of this in the spring but we gave up far too soon. and it was not nearly strict enough you know, we looked at research that says around 38% or 39% of workers in america are in essential industries but shutdowns were very varied in minnesota, 78% of workers were deemed essential. it was a very partial shutdown then we gave up far too soon as a result, the virus is now raging almost out of control across the country with 50,000 cases a day. we have this very muted uneven economic recovery.

their economies are recovering much more quickly now. so we basically, we blew it the first time and the doctor and i are arguing we should do it right this time. >> not sure. do we really have that second chance where we can do that to our economy? we're already seeing miles long food lines at some food banks across the country small businesses are shutting down thousands, i he mean, you know you speak to the people. wouldn't that cause permanent damage to do that again? we can have a rocky muted recovery for the next couple years until i hope a vaccine, a miraculous vaccine will bail us out of this or we can try to take more aggressive temporary measures now so we can have a morrow bust recovery

>> right now the school districts are welcoming the students back in person learning again. and we would have to monitor, you know, should down the. you don't completely put out the virus. the you drive down the enough so that public health officials can contact trace, test, and manage any potential flare-ups. we have given up that right now because the virus is raging out of control i wish there was an easy answer. we have a bufrnch of tough chois to make. >> we have a lot of economic pain out there in the meantime we don't have a stimulus deal from washington. no negotiations even happening what's the impact? it's profound. the best thing that has happened in this terrible crisis has been the way that both parties have come together in congress to provide a hot of assistance to the american people who have been laid off and business who's have been directly aeffected. they need continuing support until we get through this.

if we don't arrest the virus and this is going to be burning for the next year or two, people need support for the next year or two if we were to do aggressive intervention now, the bridge that they would need would be much shorter and more affordable than having to provide assistance but it is very important that congress continues to provide support especially to those workers who continue to be unemployed >> speaking of congress, some house democrats are proposing expanding the fed's mandate to close racial gaps in jobs, wealth and income. i wonder, can you see a way that is practically workable for the fed and do you envision any unintended consequences if the mandate were to expand in that way? >> well, we have the duel mandate, i know you talk about which is stable prices and maximum employment and we can think of those things as like a seesaw that sometimes we're trading them off each other. i think we have to look very carefully at if you did try to

use monday taketary policy to c gaps of different races what would happen on the inflation side of the equation one mistake that i've been vocal about for the last five years is we raise rates prematurely before we had really achieved maximum or full employment and that put a damper on the labor market well, i think we're learning from that experience and we want the labor market to strengthen as much of as possible and that when the labor market strengthens, it brings everybody in it really helps everybody to succeed. and so i'm comfortable we have the tools within our duel mandate. i'm cautious about what it would mean for inflation if we change that and just focus on one group or on gaps directly. >> is there a way to study that then, do you think, and provide feedback on that before the request or command comes down one way or the other >> absolutely. we have a research center whose

mission is to study the different gaps what are the causes of the gaps and what are the policy levers that could close the gaps? poeblly monetary policy but certainly fiscal policy probably has a much bigger role to play we should be studying them we should all the resource swrez to bear. we need to be aware of potential tradeoffs. >> let's talk fed policy for a moment the fed is really all in here. zero rates pumping trillions of dollars in terms of liquidity. what more do you think the fred should and can be doing if the outlook deteriorates all of colleagues said this the path of the virus is going to determine the path of the economy. the most important thing anybody can do is get the arms around the virus so we have confidence to go to football games and to go back into classrooms, et cetera there is not a lot for the fed

to do now. we're providing a lot of liquidity and making sure that market are functioning and that companies can, you know, reach the financial markets to fund the operations once we get the virus under control and it's really time to put everybody back to work and to restart the economy as aggressively as possible, there may be more that the fed can do. in the interim, there is talk about our forward guidance and providing stronger commitments that keep rates low. i think right now the fed is in a good place why is the fed buying bonds apple and amazon it is high quality bonds

you're saying who is a favorite company and not a favorite company. we want to make sure that financial markets and corporate bond market is functioning so that healthy companies can raise the money they need. i'll give you an example in march when the crisis was in full swing and people were fleeing and they just wanted cash, you were seeing bond markets starting to dry up and what we didn't want to have happen, we into you that airline companies and hotel companies were directly aekt iffffected be coronavirus. we didn't want to have companies that were sound not be able to raise money just because markets were freezing up so the fed introduced numerous different liquidity facilities to get these markets functioning again. and we would much rather provide broad base support that's why we're buying against the indices. >> we were just talking about racial wage gaps we could have been talking about stimulus also. it seems to me that congress keeps asking the fed to do things that congress and fiscal

policy traditionally have gotten done do you see any dangers there down the line? >> i think we're keeping our eyes open and want to keep the fed nonpartisan and nonpolitical and focus on the mission that's congress has given us. keep in mind, the federal reserve is created by congress they gave us the duel mandate. and we have to be responsive to them i hope that they recognize and we will certainly continue to advocate that there say place for monetary policy and problems that monetary policy can address. but there are other problems as you say that are better addressed by fiscal policy i think we'll be vocal about where we see the relative tools

playing. >> i'm much more focused there is a bounce back from a very low q-2 i'm much more focused on the labor market that to me is a much bigger indicator of where the economy really is and how the american people are really faring the real -- the headline on unemployment rates around 10%. i think the real or effective unemployment rate is close to 14% today. those are astonishingly high numbers. yes, they're lower than they were a month ago but they're still astonishing high numbers, much greater than the recession. you have distant learning and many restaurants running at partial capacities or shut down, the job market recovery is slower of you'll see many more businesses go bankrupt because they can endure. think about a restaurant that is running at 25% capacity. how long can they do that? can they do that for the next year or two

>> you paint a picture of sluggish growth and a lot of challenges why is the market at record high and managed to bounce more than 50% from the march lows? does that make sense >> well, i think it's a couple things one is i think because the federal reserve was so much more aggressive than it was in 2008 that provides a lot of support to markets and you're seeing a lot of liquidity in the system that does find some of it in the way into asset prices and stock prices and bond prices i think that is partly reflecting that. and i also think markets are saying, well, congress has come together very aggressively to support the american people. i think markets are betting that

congress will do so again even though there's been a delay this time but at the end of the day, i'm going to keep coming back to something that all of my colleagues have said we have to get control of the virus. if we really want the economy to fully recover. >> i'm not sure there is a way to do it even though you point to other countries, look at what is happening. new zealand is seeing a flare-up parts of europe are seeing a flare-up until we have a vaccine, feels like it's going to be with us, shut down or not >> well, no. but there say big difference a flare-up of a few hundred cases in some of the countries or 1,000 cases is totally different than a flare-up of 50,000 cases a day we've thrown in the towel. other countries, yeah. if we had 1,000 cases a day, our health care system would be able to identify those people we would have plenty of testing capacity it's no the that you have to get it to zero

you have to get i low enough so that the health care capacity can monitor it and control it. mesh exceptionalism, are we the only country that is the only advanced nation that is incapable of doing this? find that hard to believe. >> yeah. it's an interesting idea thanks for coming on to talk about it >> thank you for having me >> appreciate the time president of the minneapolis federal reserve. still ahead, another big interview coming your way. we're going to talk to maxine waters about the stimulus impact in washington and her push for at jon is talking about, the federal reserve. knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement. gimme one minute...

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it is time for the update with frank holland. >> good afternoon, jon here is the update this hour the u.s. postal service is concerned they may not be able to deliver all mail in ballots

in time to be counted. 46 states and district of colombia received detailed warnings in new jersey, phil murphy is worried the postal service is getting turned into a political football he zis missed concerns about voter fraud. the governor announced voting in this state will be done mostly by mail. all active registered voters will be sent a ballot which be mailed in or dropped off at county offices or polling places and michigan governor announcing four million free face coverings will be going to low income residents, seniors, schools and homeless shelters. fema is supplying 2.5 million of them ford motor is donating the rest. that is our up in date for this hour back to you, jon >> all right frank, thank you still ahead, tesla turning in another huge week up more than 12% on the back of its stock split announcement weechlt speak with an analyst who just upgraded the name. plus, congresswoman maxine waters joins us to weigh in on the stimulus stalemate in washington

and as we head to break, here's a check on bonds i am totally blind. and non-24 can throw my days and nights out of sync, keeping me from the things i love to do. talk to your doctor, and call 844-214-2424.

democrats calling on the fed to help address economic racial inequality a new bill called the federal reserve equity act the legislation would make reducing inequality a part of the fed's mission. it would also require the fed chair to highlight existing

disparities and employment and income as well as present plans on how the fed would use the powers to close those gaps representative maxine waters helped spear head the bill she is chair of the house financial services committee and she joins us now for more. madam chairwoman, thank you for being with us. >> you're so welcome i'm delighted to be with you today. thank you for dealing with this subject. >> very much want to get into that but before i ask you about the fed, i have to ask about the stimulus negotiations. do you have a clear sense of where republicans stand right now as things appear to be stalled? i'm not sure that congressional republicans and the white house are yet speaking with the united voice. >> there are no negotiations going on at this time. unfortunately, the republicans are not willing to spend any more than $1 trillion on the recovery, on this pandemic

following up on the cares act that we had. and we came out of the house having supported the heroes act which would spend $3.4 trillion. nancy pelosi, the speaker of the house, along with mr. schumer from the senate both decided that, okay, since you're resisting republicans, three trillion dollar bill will take $1 trillion off the table which you've been insisting on if you will support $1 trillion and we support $1 trillion, let's see what we can do with $2 trillion to deal with this unemployment and those people who are looking to the government to do something similar to help them that we did in the cares act

the cities and states has to match it we're trying to find the cities and the states that are running out of money and who may be, you know, laying off employees. they don't want to support, you know, at least how much we put in the cares act for unemployment they don't want to support the rental assistance. they they don't want to support the rental assistance. the president doesn't want to put up any money for that. it goes on and on and on so the negotiations are stalled and the president interfered with the negotiations. >> i want to ask, clearly this covid-19 pandemic is its own issue. many people have said we

certainly have to spend to get through this but so mind boggling to me that we're talking in trillions of dollars of spending and just questioning how many trillions sometime it feels like the democrats or republicans are both trying to take the american people out to an all you can eat dinner but trying to stick different people with the bill republicans don't care how much we eat as long as corporations and the rich don't have to pay democrats do want the rich to pay more at some point, do we have to talk about how all of this, even this essential pandemic spending gets paid for? >> yes we do have to talk about that n talking about that, we have to take responsibility for the people of this country who expect their government not to allow them to be evicted and put out on the streets they expect their government to take responsibility to see that they can feed their families they expect this government to help them with their health care

needs and to deal with a real plan to ensure that we don't exacerbate this infection that we're confronted with. we're going to have to pay for it and we're going to have to do what we do in this country we're going to have to strengthen the economy so that there are jobs for everybody jobs for people who have, you know, big background and a lot of education jobs of people who perhaps don't have training, don't have, you know, the kind of education. with he have to talk about job creation i think we have to stimulate this economy we have to pay taxes and take care of the people of this country and not just consider that the rich can take care of themselves, the 1% can do that they can have their yachts and multiple mansions, they can have

everything that they want. but we're not going to sit still and allow the least of these to be put out on the street with their children yet weesh have to pay for it. >> congresswoman, i get a lot of your points. i feel like there is blame on both sides here. why is there partisan bickering and not compromise happening with millions of americans unemployed, small businesses shutting down, the pandemic spreading, states going broke. i mean, why is congress going on vacation both sides surely can get together and compromise. >> i've never been on vacation from congress. when i break on the weekends and i come home, i am out in the community. i am with my seniors i'm going to senior citizens homes. i am going to churches and we don't have vacations as people would think about vacations. we're working. don't forget we're in an election time and all of that.

but he let me just say this, it is not simply bickering. it is about what kind of decisions are being made base oed on the philosophy of the republicans and democrats. you know in the media know this president. you know him well. he has defined himself do you think he is capable of guiding his negotiators to do the right thing? they're held hostage by a president who has demonstrated his lack of knowledge about the constitution -- >> actually. >> his caring about the least of these. only caring about himself and building a wall. i would not be able, no matter i or anybody else in a responsible way to negotiate with the president of the united states who is not capable of a good negotiation. he's all about -- >> i actually think it is very

much -- >> it's not bickering. >> i think it's very much in his interest. >> i think it's in his interest to provide stimulus benefits right now. ahead of the elections i guess my follow up to you would be -- stlnt room isn't th the democratic side given we have seen there is a ton of work to be done 40% of the jobs lost during the pandemic come back and the economy doing a little butt better. and the market at a record high. i mean will is not as dire as it was a few months ago >> wall street is doing fine main street is not doing so well wall street is doing fine. you're arguing investors, big time people who, you know, found the markets every day. and do what they have to do to manipulate investments, they're doing fine let me tell you this when you talk about compromise, it is not that we're not willing

to compromise. nancy pelosi went to the table and basically said okay. we passed the $3.4 trillion bill out of the house i'm taking $1 trillion off the table because you said you won't support anything but $1 trillion, will you come to your table with your $1 trillion? we'll come to the table with $1 trillion let's negotiate on $2 trillion they said no and then the president interfered and came in with his stupid executive orders talking about, you know, what was going to happen with extending a moratorium on renters that he didn't extend and threw it over to some of our agencies like hud and dhs and told them to go evaluate, take a look at that meanwhile, the moratorium on evictions is over landlords now have 30 days by which to evict people. you talk about children going back to school

they f. they don't have a place to live, they're not going back to school. so take a look at this seriously when you talk about bickering, what you do is you use the kind of language that would have people think that nobody cares that there is nobody that is willing to come to the negotiations and make concessions and compromise yes, the democrats are doing that >> we hear you we hear you. >> they're offering the opportunity for the republicans to join us instead of only being focused on building a wall and giving the president everything that he needs to do that with. >> congressmwoman, we want to ge to the fed and legislation that you and other democrats are proposing. definitely do want to do that. we were just speaking earlier with minneapolis fed president about the idea of managing -- of the fed's mandate expanding to, for example, include black laan latino unemployment. he was concerned about

unintended consequences if that were to happen the current duel mandate combined with congress's powers and fiscal policy might be enough to address some of those issues are you concerned that perhaps if the fed's mandate expands things could go in a way that is not intended >> no. let me just say this particularly for my committee, we have learned how to work with the feds and chairman powell in ways that, you know, sometimes we have suggestions. sometimes he can offer responses. that basically agree with some of what we're talking about. we've been able to do that as we respond to the pandemic and as he creates new facilities with the feds like the main street program. et cetera, et cetera we get along very well we understand the mandate. we understand that there is the business of monetary policy.

but i'm inspired as elizabeth warren is inspired about president rafael who is at the atlanta fed who recently acknowledged that in a very powerful essay that they can do more that they should be looking at not only, you know, their responsibility, they're so-called duel mandate but expanding on the ways that they look at the duel mandate about unemployment it's not enough to continue to say that black unmoiment is, you know, substantially less what are we going to do about that there is a lot in public policy at all levels of government. that have caused systemic racism and created problems that does not allow everybody to participate equally. and so now we're saying all right. take a look at your mandate. and see what you find in there

that has limited the ability of poor people, of people of color to be able to have better employment what is full employment if not everybody is fully employed? how do you do that what consideration can you give to the power that you have we're asking them to do that and i really don't think that's unreasonable and i think that when we listen to and we paid attention to that powerful essay of bostick out of the atlanta fed, it did inspire us to ask those kinds of questions. and that's what we're doing with this legislation >> it's an interesting idea. i think we're going to continue to have the conversation i know vice president biden also put out a proposal like that for now, congresswoman maxine waters, we're out of time. thank you for joining us >> you're so welcome

appreciate it. lost the feed there. still ahead, shares of wyndham hotels and casinos are down on the year of we'll talk to the company's ceo about whether stercuoms are really starting to come back on vacation we'll be right back. is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance.

after this break, we'll talk to an analyst that just upgraded tesla. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out.

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underperforming the major averages all three major averages, it looks like the s&p 500 and dow on track for a positive week nasdaq a little lower for the week dow is only down 54 points right now. keith, are we going to see a double top or breakthrough what's your bet? >> i think we'll breakthrough. it is almost like the irresistible force meets the moveable object this entire week we've been trying to get there there is always a slight pull back that is clearly the market everybody is aiming for. you just heard congress wom waters being aggressive with her rhetoric about getting a deal done but again, i think, you know, the market will continue to go there. i'd live by the axiom. capital goes where capital gets

rewarded >> yeah. mike the congresswoman was sparing no fire in her take on the other side could bring to the table. the market seems to be shrugging that sort of thing off what do you think moves the market beyond this week? >> yeah, jon, it sis this week it's been engaged in just digesting a 5% one month move i think people, you know, yes, we ran right up to the all time highs. but it also came on the sprint that came above the june/july levels what moves it from here on out, the market is creating confirmation this general global recovery theme is reliable in other words, something that market is not wrong in moving in this direction of more cyclicals. the i think that vaccine news is i think pretty much assumed to be in the positive column. in other words, it's within this window of a few months out i don't think it's about that. it is much more about i think traders trying to figure out if in fact this return to the all

time high is fully reflected in the numbers. also, the big tech stocks flat lined. they've not pulled back very much so in some sense, you can say the market is absorbing another wave of, i guess, just sort of calming down of the big growth stocks as well >> yeah. all right. mike, meanwhile, fortnight maker epic games' fight against apple is becoming a clash with the titans facebook now joined the cascade of companies pressuring april toll change the 30% revenue cut they collect from businesses for many transactions on the app store. facebook announced that it is launching paid on line vents for small businesses to charge users to attend their classes, instruction ands other events like yoga or a cooking class here is the key issue. they asked apple to either wave the 30% cut or make facebook go around it and process event payments via facebook pay. or let hosts keep the revenue they generate. apple said no.

google did agree to eliminate their commission >> well, tesla also has been on a terror lately. up almost 300% this year. >> i've been doing this for 22 years. this is the odder and tougher stock calls we've had. i think when you see a stock rocket like this you have to take a step back and ask what's going on fundamentally, you know, at the company and in the market's perception of it. when you look at something like this, this is a growth story this is a growth story had a is

going to require a lot of capital. there is a potential for this company to leverage this stock price and accelerate growth over the next five years. that is a key. it seems though, jon, almost nobody is literally neutral on tesla. either you feel strongly one way or the other about it. has your fundamental take on tesla changed? >> you know, i think you have to also look at what they've done recently execution in the second quarter was pretty good. it's much better than expected and you look at what they're doing in shanghai, berlin, austin, texas, and the expansion of capacity is, you know, is beginning and coming -- looks like it's going to be real in the near term. the ability to execute on that and put that in place, you know,

is changing. seems like it's more real. and you're getting a lot of capital to do that in the future and coming back to the stock price to fund this you know, that is changing our fu fu fund mental view they have a lot less capital built and higher cost and that would stunt growth going forward from a capital standpoint. there is execution and capital available. those are two things that are admittedly change fundamentally here >> so you talked a little bit about why you changed your mind. talk us through the new price target 1750 how do you get at that valuation which before you were at 800 >> so, you know, simply 8 1/2 times sales. a premium to some of the high flyer faang stocks you know, i think as you look at this and you know we run our sen a scenario analysis, they can

raise $36 billion in one fell swoop here 10% of the current market cap or maybe do that in sort of increments over the next five years. that would allow them, you know, to accelerate growth from 20% on units and earnings over the next five years to something in the 50% range. if you look at that ultimate cash flow that we're forecasting in our base case scenario from five billion to 15 billion by 2025, you start looking at this and the current, you know, price or little bit above that at 1750 is what we're estimating starts to look somewhat reasonable. now the company's execute once on the capital raises and, two, on the capacity expansions to keep us in the neutral camp. >> got it. john murphy, thank you for joining us with the call appreciate it. >> thanks. >> let's hit draftkings. that stock is falling today.

losses widen at the company. contessa brewer is following it. contessa >> hi, sara. even though draftkings provided stronger than expected guidance and reported revenue increases year on year, shares plummeted to day on the earnings call and analyst asked about a propose will change in the way daily fantasy sports are taxed projecting as much as $30 million hit for draftkings but the ceo said, look, the irs rational is flawed and that courts and state legislatures have already decided this issue. it is dependent on professional sports especially the nfl proceeding as scheduled. on the call, they're seeing a strong uptick in users here,

sara of. >> you mentioned the nfl is really important he was hopeful they're going to figure it out. what do you do with the stock? >> i think i just sit on the stock right now. >> sports will come back at the college level and professional level. it's going to depend on how much dry powder they have on the balance sheet. i think it's a tax story here though especially if we have a change in the white house in the senate after november elections. they'll change the law to get it >> it's been part of the bull thesis two minutes, a little less than that to go in the trading day. mike, we just saw the dow go positive on the session. a little buying action here. >> a little bit of a flurry of buying into the close. nothing too aggressive

under the hood it's been to the positive side most of the day. you see advancing volume, 1.6 billion shares well ahead of declining volume outperforming what is happening at the index level take a look at the average stock this week versus the s&p 500 it was another week where you had slight outperformance by the equal waigted version. so the average stock doing better than the big cap indices. finally the volatility index has already stayed range bound in the low 20s, giving way under 22 right here you think such a calm market it would drag lower perhaps still waiting to see if you break above those highs before we there, guys. >> yeah. mike, we've got seconds until the close as you mentioned dow is positive at this point. s&p 500 still slightly in the red. nasdaq the worst of the three. s&p 500 and minerals are in the positive space retail names, transports, communications but overall, everything looking pretty flat. if we were to look at some

individual names particularly the larger names and how they have done up to this point, apple, microsoft, amazon, all them just about flat amazon a little more to the down side alphabet also right there down about 1% sara >> looks like we're getting a positive close there >> yeah. for the dow on the week and day. jon, thanks. welcome back to "closing bell. i'm sara eisen in with jon fortt along with mike santoli. just wrapped a week, third week in a rove gains fw of gains forp 500. there is the dow, managed to close positive 3shgs 4 points. spent part of the day there. s is been wavering all day long around the flat line was a pretty quiet trading session better retail sales earlier in the day the s&p 500 closed as wilfred would say, bang on flat. that masks the strength behind the move energy, industrials and

financials led the day y utilities and health care were the lowsers. for the week as a whole, got strength from the cyclical groups industrials up 2%. energy 2%. consumer discretionary, 1.5%, the nasdaq closing down for the day. .2%. and pretty much flat for the week here we are for the nasdaq the small caps down about .1% on the day. it's been a fortnight since tim cook was grilled in congress about antitrust issues now apple is under fire again. sued by fortnight parent epic who made a video mocking the role as a powerful gatekeeper and facebook joined the fray pun lickly criticizing apple's position that's become a major risk for the company? we're going to talk to the founder. joining us to talk about the

market today though, first keith bliss of capital usa is still with us. iq capital usa robert nobles, chief investment officer joins the conversation first we go to you, mike the market action today which is quiet. for the week told a strong story about the economy with the pop in groups like energy and industrials. what was that about? >> yeah. the market still feeding off of a few things that are on the positive side. one is just this pretty defined down turn in the rate of case growth and covid-19. it's been a backdrop for a few weeks now in the sunbelt seems as if the country sort of weathers that surge. that's in the background you're seeing demand for cars, trucks, moving of stuff around the country. it is looking good and globally is holding up. so it seems hike the playbook for the early economic recovery scenario is under way at least on a subtle level. and then, you know, the big tech

stocks have rested but not fallen apart all that together i think coming right as you approach all time highs when you're seeing some trader sentiment and positioning indicators start to look slightly overheated, i think a pause makes sense right here i don't know if it's going to translate into you actually have to have a little bit of a slip back in the indexes to sort of reload the buying interest and get over the highs or anything like that. but so far, the message below the surface is relatively positive as a take away on what's happening in the economy. >> yeah. that's the question. is it from the big picture perspective? robert nobles, if you're playing at home and investor and taking a breath this weekend, what do you do do you trust the trend how do you protector position yourself given how strongly the market has run to this point >> well, welcome thank you for having me on today. i would say from our standpoint, you should trust the trend we're looking at several factors that gives us some optimism over time in the market you know, we're looking at the

pace of virus cases on daily basis. where the spikes might be. and we're seeing some slowness as everyone has noticed in the number of cases on a day to day basis. and, you know, we have a lot of things that we believe are helpful to the market standpoint it may have run here a lot lately we still can see more upside going forward. we look at things such as the stimulus bill that is soon to be passed you know, we may get four to six weeks from executive orders of president trump. we look forward to a stimulus bill to carry us envelope the end of the year. we have lots of cash on the sidelines that can support the market interest rates that are very low and likely persist after the that level for some period of time we have a very accommodative federal reserve that wants to do anything it takes to help the economy stay on track. and we've had other monetary accommodation from the other global central banks outside the

u.s. i'll tell what you is going to make this a big deal or turn is what is the consumers and businesses willingness to take on risk? you know, there is a period of time before the vaccine appears do you want to be in the beloved tech stocks that led us higher throughout this bounce but have underperformed this week and in recent weeks or do you want to be somewhere more exposed to a better economy like the industrials or energy stocks which did well this week and consumer discretionary it is royal caribbean, wynn resorts, mgm, tapestry, names that had been beaten down through the crisis that led us higher this week >> well, like all situations, it's going to depend upon your

time horizon if you're playing the trend for a short term trade and i look at that quite a lot, we still don't have the broader markets overbought yet so if it people are going to pile back into the tech names, that may be good for a long her term trade eventually we're going to pull out of this and see some of the names like marriott or live nation or cisco or some of those that really got, you know, punished during this time but will come back that might be a good place broadly speaking, they're in the russell 2000 that lagged for some time and certainly during this pandemic crisis because people are really weary about what's going to happen in the u.s. as the news gets better if, we don't have infection spikes as kids go back to school, if we don't lock down the economy, if news on a vaccine continues to trend positively, that may also be a good place to put some money. a lot of the names are beaten up

over this. longer term, you should see value creation coming out of those -- out of that sector and that index. >> yeah. well, market is one thing. economy is another minneapolis fed president joined closing bell last hour here's what he had to say about the economic recovery. >> the path of the virus is going to determine the path of the economy. so the most important thing anybody can do is get our arms around the virus until we get there, i'm not sure that there is a lot more for the fed to do right now. once we get the virus under control and it's really time to put everybody back to work and to restart the economy as aggressively as possible, there may be more that the fed can do. in the interim, there is talk about our forward guidance and providing stronger commit ments that keep rates low. that may be something you see coming in the future i think right now the fed is in a good place given the action that's we've taken >> robert nobles, we are talking

about an accommodative fed he sound a bit concerned about the virus. but the market seems to be shrugging that off >> the market is always looking forward. and the virus is traumatic and still a major disease, it's people are starting to find ways to work around it. they're going out with masks they're hopeful for the vaccine. and they're just starting to more or less somewhat grin and bear it and just starting to continue to go around their daily lives. but, you know, it's still a major issue. they keep companies up and running. the economy is make something progress we've noticed the unemployment rate is down to 10%. that's about where we topped out the last two recessions. it's going to be a slow grind from here to get that number lower. and more people that work, the more spending that occurs.

owe tipped the hand of the fed about forward guidance saying they're good now they're all in fwhaut they could do that. and that might come. is that a stimulant for the economy? >> i think it's more of a reassurance. i think it's widely expected as well that they're going to have more xplisive forward guidance of exactly what it would take for them to, you know, vary away from the zero interest rate policy and, you know, whether that also means control of longer term treasury yields or not. that's unclear one thing can you do is look at the bond market this week. and, you know, in the last ten days, the ten year treasury yield is up from .5% to almost .75%. very small move in absolute terms. but it does have the effect of make being the yield curve look steeper. in a way, it is saying that a lot of what the fed wants to see happen is being detected by the markets which is, you know, rising inflation expectations toward normal. maybe better growth down the road

so all that stuff seems to fit together boy, they definitely are risk management mode. i don't think the market should or will fear them moving off zero for the foreseeable really and the investment horizon >> my wild cards out there anything you're concerned about? >> well, one concern that i have that could derail this a little bit is we will likely see through the fourth quarter some more corporate impairments if not bankruptcies especially around retail establishments as they continue to grapple with it and they didn't have a lot of cash on the balance sheet. the one fear that i have that can really seize up the market and markets is if they don't have those that are struggling and ailing and even in bankruptcy reorganization if they don't have adequate access to working capital which can keep the employees employed while they work out the situations, its banks will start pulling back in that situation if it we get into a credit freeze or seizes up and that market seizes up if, the government doesn't step in and provide that operating capital liquidity, then that could really derail what we're doing

here in the market and changes my thesis completely about which direction the stock market goes from there >> mean time, we have breaking news dom chu has details. >> the focus on financials, we know that's a huge part of the portfolio. so let's take you through the highlights here. the we have seemingly large reductions in many of the financial holdings here so far it turns out that there has been a 27% reduction of quartering of the wells fargo stake. a 62% reduction in the berkshire stake in j.p. morgan a 42% reduction in shares of pnc financial. a 9% reduction in the stake in bny melon. and also it looks like a dissolution of the stake in goldman sachs. we're continue to go through these now. we noticed aside from the

financials a in you stake in barick gold. the focus on financials big right now. it seems as though there's been a reduction in the shares over -- remember, we also heard earlier after the deadline for the 13 that there's been an increase in the stake of bank of america. we'll continue to comb through this a big reduction in shares of wells fargo, pnc financial, j.p. morgan, bny melon and goldman sachs as well. we send things back to you >> yeah, wells fargo in particular down after hours almost 1%. dom chu, thank you mike, it's too bad wilfred wasn't here, he would love to hear about this and suspected this a lot of people did with berkshire selling, especially the wells fargo stake. i don't know if the expectation is if they would close that much >> very, very rough numbers. a two billion reduction in the

stake. he is reupping a bet generally speaking on domestic banks through that buying or was it more or less a swap reallocation from at the big heavy wells fargo allocation into b of a barpg of america was prefer order diversifying away from the other holdings goldman sachs is interesting he did get out of that i think that was known the stock is going on to do okay since then. >> warren is holding on to that apple stake though he is funding everything he's doing. >> exactly we want to say thank you to keith bliss and robert nobles for taking us into the weekend >> me pleasure >> coming up, fortnight maker epic games releasing this video mocking apple's dominant role in the tech ecosystem

>> today is the anniversary of the platform unification directives for years they have given us their labor and their dreams >> yeah, that's got to sting faz that aren't enough to sue apple for antitrust violations a host of other companies have piled on in support. facebook just announced a new product and criticized apple's position saying google was willing to work with them on app store fees ple xtvestor imspakt what we'l l l exornethis selenite grey is so pretty isn't it? wow. jim could you pop the hood for us? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires? oh yes. can you change the color inside the car? oh sure. how about blue? that's more cyan but. jump in the back seat, jim. act like my kids. how much longer? -exactly how they sound. it's got massaging seats too, right? oh yeahhhhh. -oh yeahhhhh. visit the mercedes-benz summer event or shop online at participating dealers. get 0% apr financing up to 36 months on select new and certified pre-owned models.

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facebook is the latest company to join the criticism of apple. they refused to wave the 30% cut of in app purchases on a new paid on line events feature. epic games releasing this ad with apple's spot from 1984. apple itself was the underdog and it was sticking it to ibm. now fortnight was pulled from both apple and google's app stores this week of the creator of the popular video game filed suit against the tech giant saying it isn't seeking monetary compensation but instead it's fighting for fair competition in mobile app distribution joining us now is peter rojas, partner at beta work ventures and former and gadget editor peter, good to see you >> thank you. >> do you think this is going to stick this time? i mean just a week or two ago we

were talking about facebook and people criticizing them and people, you know, boycotting facebook we don't seem to be talking about that much anymore. now it's apple is this another blip or in serious trouble here >> well, i would say that epic was ready for this you don't pull a move like this and have, you know, a pr campaign ready to go a lawsuit waiting in the wings unless you're prepared for a battle and i think the thing that is dangerous for apple here is tim swinney, the ceo of epic and maker of fortnight is, you know, he isn't just motivated by gaining market share or making more money here. i think he actually does have an ideological component to this. does he believe that monopolistic control of platforms is bad and something he wants to break up and take on and so, you know, epic is in this unique position where they are big enough to matter they're not dependent on their

business 40% are on mobile or primarily on mobile. there are other games. so they have the resources to take this battle to apple that is something that is very dangerous for them >> not only that, paraphrase hamilton, tim swinney is unique developer and has this diversified group of platforms that he plays in fortnight has its own economic ecosystem the real danger here is that he feeds the antitrust story against apple and against google, right? do you think investors should be watching the services margins? >> the percentage of apple's overall revenue is small they can afford to give here p it's not going to make that

much of a difference for the company. the resalt that rules this he set down for the app store ten years ago or so were for a different internet right? you didn't have as many cross platforms and applications as we do now the you didn't have as much of the cloud based services and applications as we do now. i think that the reality is that a lot of the rules, they make less sense than they would have been at the beginning. when facebook and now air b & b, they introduce the on line events, the virtual events, the idea that apple should take about 30% of that rather than 30% going to the people who are actually hosting and creating the events, that is something that strikes people as a little unfair i think for epic, ultimately, you know, they're interested in fostering a very vibrant and successful gaming ecosystem for fortnight or any game using unreal engine. a huge part of the business. the more game developers that

with build a sustainable business selling games is good for epic 30% is a big tax to pay as opposed to the 12% which they take from their own game store >> as you know, peter, it's not just epic but has gone after apple. they're leaning the complaint to the eu who antitrust regulators are looking into this very issue. during that tech hearing where tim cook is on capitol hill, we talked to the cfo of spotify about this issue here's what he said about apple. >> as a platform, they're a gatekeeper for us, it's really about not having programs in place with disadvantaged competition or things that put restrictions on competitors. and so the 30% fee for -- in the app is restrictive

we're rooking for a level playing field that our streaming st service is competitive with what they offer we've done well in spite of the restriction that's apple put in front of us. how much better would we have done if we didn't have the reflictio reflictir restrictions placed against us >> it's a pile on against apple. you're an investor in early startups what is your point of view do you think they're anti-competitive or happy to get the startups on the app store because of the technology and opportunity and access that it affords? >> well, it's a double edge sword. one of the challenges is it's a lot harder to grow an app now than it used to be sometimes just being in there was enough to drive down loads and get people to discover it. it's very difficult to grow your user base without paying for acquisition. and sometimes you're paying apple to show up in search ads

against your own, you know, name for your ad so some competitor can't put themselves ahead of you in the search. for a lot of startups, 30% of revenue going out doort is really tough when you're spending money to get the customers in first place so, you know, i think that nobody disagrees that apple shouldn't take some amount of money. certainly providing stort is a valuable service can you build a real business on top of, you know, the mobile app stores but the 30% is striking people as if not unfair then at least untenable in a lot of ways and just to give an example of tiktok, tiktok spent billions of dollars on user acquisition. they didn't grow just via viral word of mouth. you know, those days are largely behind us. and so for startups starting out, unless you have a huge budget out gate, it can be very, very difficult to grow the

businesses >> peter rojas, thank you very much from wall street's point of view didn't matter much apple is up 3.4% on the week one way of looking at stocks that doesn't make them look expensive right now. that is after this break you can always watch or listen to us live on the go on the cnbc wel rhtacp. 'lbeig bk. you say the customers make their own rules.

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stocks closed the day pretty much flat but higher for the third week in a row. let's go back to mike santoli. are stocks attractively valued right now? >> yeah, sarah the story really is that the way bonds trade and valued right now, tends to flatter equity valuation. it is the only way that stocks do look relatively attractive right now. so right here you have the precash flow yield of the s&p 500 companies on a forward basis. so the free cash flow yield as it goes down, stocks are getting more expensive free cash flow what earnings are right now. maybe a little higher. this is the baa bond yield

and this gap right here is the valuation advantage of equities. nerd, they're a little more act traf they have a higher earnings yield than a bond yield. that was the beginning of a 20% drop stocks are more relative to where bonds were trading also here, 2015 into 2016. that also did not have a valuation cushion. that is also in the market ran into trouble they talked about. that the free cash flow generation from stocks in a yield starved world. even if this is an abstraction it is what is backstopping the stock market in one way right now. >> all right thanks, mike says a lot coming up, who is getting money from the federal government for vaccine development?

and why? congressman and house majority whip has launch aid probe into potential conflicts of interest th t ecuverah. he will join us next

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let's get an update from frank holland. >> here is the update at this hour a fire that burned for two days forced hundreds of evacuations, scorched 1,000 acres and destroyed four structures. the fire is only about 10% contained. officials believe this fire was human caused family and friends are remembering a murdered soldier in texas a woman whose death brought on cries for change within the military army specialist vanessa gian disappeared in april her remains were not found until june officials were too slow to search for her and didn't take her claims of sexual harassment seriously. and kobe bryant's induction into the basketball hall of fame has to wait just a bit longer. he and the rest of this year's class of honorees, they won't be

inducted until next may. instead of being held at the hall of fame in massachusetts, it will be held at the casino in connecticut. that is ourup date for this hour john and sara, thank you. >> frank, we'll be watching. don't miss, everyone frank holland anchoring "summer school special" tonight. house majority whip james clyburn says a lack of transparency could bring problems with the vaccine. he'll explain j on the other side of this break 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...

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more 13 f filings are coming in let's get back to dom chu. >> we dug through a little further into the berkshire hathaway 13-f. the company run by warren buffett. it looks as though they have completely dissolved, got rid of the stake in occidental petroleum. they were dif depdz that vidend year ago to help finance the finance of a purchase. they took shares in lieu of a dividend payment whatever they had in common stock has been sold off. so perhaps an interesting look into what some of the managers at berkshire hathaway feel about the future of shale oil in this country. david tepers coming out appaloosa management it looks as though a couple

themes on the payments technology side. new stakes coming up here in some of the payments companies, mastercard, visa, paypal and square all have new positions initiated there. then on the health care side of things, we've seen some increases in hca health care and boston scientific. meanwhile, a decrease in the stake in humana by appaloosa so we'll continue to kind of wade through these right now, those are the highlights between, again, berkshire and now appaloosa as well we'll continue to filter these through. sara jon? i tend things back to you. >> thank you keep us posted house democrats have begun investigating operation warp speed. it's the trump administration's effort to fund and deploy a coronavirus vaccine and treatments representative james clyburn says the process lacks transparency and will undermine the public's confidence in an eventual vaccine he joins us now to discuss welcome. >> thank you. >> what is your concern here

>> we're very concerned about the transparency of these transactions wall street sounds good. all of us want to see a vaccine. the fact of the matter is there will be several vaccines but we need for all of these transactions that there be out in the open. people ought to see what has gone on. the fact is we're looking at the people involved in this. we see some things that indicate that there may be some insider stuff going on that is benefiting one or two people without regards to what we are really trying to do. >> you're talking about the person who is leading up this effort being a former moderna executive? he said he's die vested from moderna. he owns shares of glaxosmithkline. but he said that is his retirement and he's not doing anything with conflict of

interest >> well, when he first there, we talked about moderna and we weren't really looking at that we were looking at other things as well. we're not sure we're saying maybe nothing is wrong at all but let the sunshine in. and let's see exactly what it is for these people to say well i'm doing this and nothing is going on but you won't let me see what you're doing so we're going to use the powers that we have to shine light on whatever is taking place and maybe it's all on the up and up. but we got a gut feeling that it may not be >> congressman, you're sure to face some criticism saying this in campaign season is an attempt to cast questionable light on the trump administration how you would respond to that? >> i would say simply that don't

worry about the trump administration open up your transactions. let people see what you're doing. and you won't ever hear from me. i'm doing what we're supposed to do we just saw last week $765 million going out to kodak and the president said this is a great transaction. when we looked at it, wait a minute here. how is it that board members and the families of board members of kodak all of a sudden started making millions of dollars 48 hours before the transaction and now they're putting it on hold why did they put it on hold? because we started asking questions. we started demanding some answers to letters swent to tweo them now it's on hold i don't know if anybody didn't have a kodak camera. i don't know of anybody who ever had a kodak vaccine. they have absolutely no business

getting $765 million to do pharmaceutical stuff when all they've ever done is make photo cameras. the. >> that was a move that attracted a lot of attention in the markets as well. i want to ask a broader question of you having to do with the economy and politics we are heading deeper into campaign season. senator kamala harris who is the presumptive nominee on the democratic ticket for vice president is from california vice president biden is from delaware this is going to be the rare democratic ticket with no southern representation. obama-biden notwithstanding. your view, what is the most important economic issue in south carolina this campaign that you want to make sure doesn't get overlooked >> number one, south carolina right now is covid-19. that is a health care issue and big economic issue we want to get beyond this

pandemic and if we get beyond this pandemic in a meaningful way, we'll take care of a lot of the economic issues that we have in south carolina but to do that, we have to fix our health care. there is broadband deployment throughout south carolina. we need to have community health centers establishment in the community distance of every person in south carolina we're ignoring it for a long time and we also know this will not be the last one. so we need to get communities and families in positions to weather the storm the next time out. so that is the biggest economic issue going on in south carolina right now. and i'll tell you, biden, you know, i know a bit about delaware del zel

d delaware is a southern state delaware was a part of brown v. board of education and joe biden calls south carolina the second home he spends a lot of time in south carolina he has in the past i hope he will make this his white house when he gets elected. >> congressman, i want to get you on the record about another issue that is very much in the news that is the disaster happening at the post office what do we do about this is your solution to throw more money to fund the post office? can we get real reform so that doesn't live rolling cross-ice tois crisis, something like this doesn't happen again >> well, so much as we have a president. he has no records for the constitution and the post office just happened to be inside the constitution of the united

states no, we can't keep it from happening again. we have to make sure that we have an electoral process that people could have faith and confidence in. there was a feeling about a long burn our constitution is burning. and what we have is united states senate as an orchestrator in the background while our constitution is being torn to shreds and mitch mcconnell is the maestro. we need to wake up this constitution is under threat and this post office stuff is

the tip of the iceberg >> all right thank you representative clyburn for being with us. >> thank you >> have a great weekend. up next, shares of wyndham hotels rising 20% after taking a big hit from the coronavirus pandemic we'll discuss the recovery with wyndham ceo after the break. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪

shares of wyndham hotels rebounding up 19% the company seeing more than 40% occupancy rates at the locations across the u.s joining us now is wyndham resorts and hotel ceo geoff bellotti >> thank you for having us back. >> so give us a little color behind that 40% occupancy rate what you are seeing across this country from travellers? >> actually, it's a lot better than that, sarah you had us on friday afternoon eight weeks ago.

and it was nine consecutive weeks of increasing occupancy. we're the world's largest franchise company in the united states we operate 6,300 hotels. but we can now say that for 17 consecutive weeks, week on week, our occupancy increased. on top of travel demand we see from the business travelers who stay in the select service hotels across our country. business travelers like regular business or you're getting it from a different source >> we travel much more -- >> i don't know anybody doing business trips. >> if you remember, we travel -- we cater to the travelers that need to travel think transportation, logistics, think construction workers who back eight, nine weeks ago were having to work in reduced

shifts it is operating as a business as usual. the every day travelers that stay in our hotel, certainly the white collar travel is down. but that's not what we appeal to we appeal to the every day traveler that is on a contracted business out there and needing to travel. the sort of road warriors if you will >> you know, it's great to have you once again, geoff. i want to ask you white collar travelers who i think of when i think of golf and you guys are title sponsor on the pga tour, do you have to change what you expect from that kind of marketing spend? you have to change your call to action to make that worth while in a time like this? >> absolutely not. i mean, we love this tournament. it is just great brand awareness for wyndham. this will be the most watched championships given what's on tv and what's not on tv

and we have -- we have a really duty to our franchiseees to get that brand awareness up. we'll be interviewing and talking to the players the there is great interest in what's going on out there on the course right now and we'll be advertising throughout the weekend some really special offers that are driving business direct to our hotels stay one night, stay two nights and get one night free at any of our 6300 hotels across america. so, look, we're ramping up the marketing efforts right now given the increasing demand that we're seeing from the leisure traveler >> but as a title sponsor, did you get any concessions from the pga? it's a completely different experience you don't have the fans there. you don't have the lounges and everything else that you can put your name on and be in front of. >> we are always talking with the pga, sara. they're great partners of ours and we're working through that

as all the title sponsors on the pga tour are today >> geoff, i'm hearing about adjustments that a number of hotels are making to guest concerns during coronavirus. that sometimes people want to enter from their room from a private entrance sometimes they're concerned about ventilation. what sorts of changes have you made what demand are you seeing for perhaps a different type of product than you would during normal times >> sure. every week, jon, we're upping and increasing our standards you are right. that is what consumers are most concerned about. we with the rest of industry just two weeks ago required not only our team members but all of our guests entering all of our hotels across america to wear facemasks. not popular in certain parts of the country. something we felt very -- was very important not only to our team members but to our small business owners. in addition to all the steps that we're taking and including

requiring hospital grade disinfectants, the social distancing measures that the hotels are taking, but beyond that, to your question, you think about how uniquely positioned the economy and mid scale hotels in this country are, 99% of hotels hotels are select service, 70% of them are operating now above a 40% break-even occupancy level so there are guests in the hotel. that drive-to traveler is in over 90% of our 6,000 units in the united states of america walking into a room where that air-conditioner unit, that heating and cooling unit is an individual unit that is bringing in fresh air from the outside. and yes, there's certainly more awareness about how this virus is spread. that's in many cases providing comfort to so many of our guests >> thank you again

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i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ we spoke to minneapolis fed president neil kashkari the last hour we asked him to exmaplain how t stock market currently trading at all-time highs stacked up with the sluggish economy. >> i think the federal reserve was more aggressive in this crisis than it was in 2008 in

providing this massive liquidity. we took the risk of a financial system collapse off the table quickly. when you take that risk off the table, i think that provides a lot of support to markets and you're seeing a lot of liquidity in the system. that does find some of its way into asset prices and stock prices and bond prices i think that's partly reflecting that >> it's refreshing to hear a fed president say part of the reason the market is at a record high is because of the fed and the li liquidity, which we know and we talk about all the time but they don't often come out with it like that. how much longer can this massive infusion of stimulus money growth continue to prop up this

market next week we're going to get a bunch of housing data, retail earnings, the democratic national convention. >> i think the way he characterized what the fed has done has helped the markets is by cushioning against that worse case scenario. if you're an investor, your remaining range of possibilities is more skewed to the positive that plus the fact that these very resilient business models and these huge growth companies added a few trillion dollars, i do think there's a case to be made that the market looks at that and says why isn't that always the case when we have a shock that congress and the fed can do more. the limits come into play when the investors start to believe it's up and away, when they get fully invested, when they start to look beyond the risk. i don't think we're quite there yet in terms of positioning and mindset, but maybe getting

little closer if they look at how professional investors are positioned in terms of what we're looking for, anything that's going to give encouragement that underlying the economy is actually grinding back to life i don't know that's necessarily something that's going to come out of the retail company earnings next week, but what they say in terms of their outlook i think will have relevance. >> we're getting close to a lot of things happening. i'm surprised there hasn't been more market reaction to polls showing biden polling pretty strongly and the possibility of a democratic sweep. >> it's interesting because this rally has coexisted the entire time with the polling advantage for the democratic ticket. i wonder if the market doesn't see huge swing factors for the stuff it cares about in this election first of all, the idea that the election still is probably going to be closer than the polls now

say. but also we've already kind of expanded the budget deficit to this point it's not clear that after what the market has gone through already, anything that happens in the next administration if there's a new one is going to be as significant as the shock we already lived through and the response to it. >> thanks, mike. that does it for "closing bell." "fast money" begins right now. i'm melissa lee and this is "fast money. brian kelly, steve grasso, pete najarian and bonawyn eison a streami ining smack down, ite tumbling with fraud allegation plus draft kings dealing a losing hand today on wea