welcome to power lunch we start with record highs on wall street. the s&p 500 finally breaching its february highs let's take a look there. 33.90. it was the closing high. we're above that now just a little bit below the all time intraday. the rebound comes in the face of the coronavirus pandemic, uncertain recovery but for now the markets are going up california's ruling over its drivers. are these two companies about to

go from tech giants to taxi giants air travel slowly comes back the it's a administrator will be here and the billionaire tilman. he'll tell us how the economy could get worse before it gets better welcome, everybody "power lunch" starts right now money can't coming out of the bond market. those yields remaining pretty low. rick has the bond picture. we'll go to him on that. bob has more on this market. >> the important thing is we're at new highs intraday bp we'll see if we close there. we have our old friend technology stocks pushing the market forward tech, consumer discretionary but that's largely because of amazon and maybe sochl the ame of the s

people the s&p is going to have a hard time going down big. kohl's down. gap down you see these declines this is not about the second quarter. this is about comments being made about what's going on in the third quarter. look at walmart ceo. he said consumers are spending money but not at the pace they were in the middle of the quarter. it's off to a slower start than usual given the uncertainty. as for the s&p 500, we're

sitting right here at an int intraday high. probably a closing high as well. don't be surprised if we have a bit of pull back in next few days it's very typical. after you hit new highs for the market to pull back if you get some profit taking going on. >> even though equities are blasting ahead, some of the indices today, we are seeing dropping interest rates and a weak dollar. you can see what i mean. we had the pop in june around 90 basis points and now we popped a little over 70 we still see inflows we see many buyers that don't

understand what's going on with equities they are long but this is hair head here is the dollar index, april of 2018. the chart looks as though it will keep aiming >> rick, thank you very much bank of america's august global fund manager survey says investors are now the most bullish since february and think this market is no longer in just a bear market rally. thank you so much for being with us lindsay, is it your working presumption that the market will go higher from here or sideways

over the next few months in. >> when you hit a new all time high, momentum tends to be at your back. it's a psychological level it makes investors feel better about things especially after coming out of the depths of a deep bear market like the one that we just endured we have seen the market hit multiple month highs i'm not saying we won't see consolidation or a pull back it is a positive sign in the near term. >> kevin, is it the time to dip into value stocks or are you better served if you think the market is going to continue to have some tail winds as lindsay suggest. are you better served by sticking with the new economy,

post-covid economy companies that have been doing so well >> it's great question investors will have to be a lot more selective you touched upon the theme that should resonate in the markets going forward. those are trying to identify the leaders in the new american economy coming out of the covid-19 pandemic. we think they will come frbio tech not just the online retailers but the other companies that stand to benefit from the growth of e-commerce.

i know that you probably like millions of americans were watching the democratic convention all evening last night. i know i wasn't. be that as it may, we're going into what is historically a couple of bumpy months for the market when bad things and big sell offs tend to happen, they tend to happen in september. they tend to happen in october those are the big days now we have an election. what are the odds that we hit some real turbulence between now and say election day >> i think the odds are pretty good all you have to do is look at the vix index.

i think it's indicating is market participants are expecting volatility to remain within the market in the next three to four months at the forefront we're worried about this next stimulus package but after we get past that, assuming we do get past that, that is the assumption is market is making we have the budget debate and then we get into the election at least from a policy standpoint we have a lot of question marks out there and then we'll have to see corporations be able to actually perform. the sec quaond quarter was grea. the third and fourth quarter we'll want to see a continuation of that. >> kevin pick up on lindsay's thought. she raises a couple of interesting things

it would be wise to provide some downside protection. trying to time the market is often exercise in futility those areas of technology that support this whole stay at home economy including but not limited cyber security is what investors should be looking at always be true to your risk tolerance and don't stray from that because of the market environment or any upcoming election >> thanks very much. we appreciate your time today. kelly. as uber and lyft fight legal battles in kcalifornia and

elsewhere, is could face valuation. >> that's right. the fate of ride sharing could be at stake here uber and lyft build themselves as tech platform some are long considered them overvalued taxi companies with better technology. the new york times reporting that lyft has presented a franchise like model to its board. uber has been joining forces with taxi companies and in latin america markets. it almost feels like return to

the -- when uber fought against regulators and the strategy was to get the public on their side. prop 22 is a ballot measure. that will bring the issue to california voters in november. >> how likely is that outcome versus the possibility that franchise model is their future and how much would that hurt the business model >> that ballot will not be presented to voters until november that raises the question what happens this friday when potentially that ruling could take effect and uber and lyft would have to shut down in california how will the public react when they have to go back to taxis.

i think the companies are betsing the public will turn against the regulation and the legislation that has been put in place and perhaps demand ride sharing come back. kohl's is out with warning for the rest of the year back to school sales are softs and uncertain holiday season digital sales surge. can department stores like kohl's and other survive coronavirus. air travel climbing back from the pandemic lows but ever so slowly still down 70% from this time a year ago what needs to happen for americans to feel safe enough to travel again the it's a administrator will join us right after this quick break. as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers... and deliver our products.

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tsa saw over 800,000 passengers for the second time during the pandemic. traffic is still down 70% from the same period last year when airported welcomed close to 2.5 million travellers a day what needs to happen for travellers to take to the skies again and feel safe doing so phil is with the administrator for the tsa. >> thank you for joining us today. i'm curious what your thoughts as you take a look at the passenger levels right now they have come back from where

we were in april but we're a long ways from where we were last year. >> you're right. they have come back. if i look at the past three sundays as an example. that's the significant improvement. the week before, there were 830,000 passengers this is the first time we have seen it break the barriers we are seeing a level of recovery that we didn't see in the past >> let me put you on the spot. do you think we get to a million by labor day >> we don't know that yet. we have a bunch of forms that help us predict what the passeng passengers will be pe think it's possible to be up

at a million for labor day >> you added a number of safeguards so there's more social distancing, less person to person interaction with the tsa and passengers why not have a tsa agent do temperature checks of passengers or would that be too unwielding. >> the runway to recovery which is an administration document that charge the path forward for the recovery of the aviation system recommends temperature checking and mask wearing but also recommends that be put in place by the airports or the

airlines in my own travel i've seen, uniform mask wear. it's just one segment of a person's travel. it's better if it's done in the entire airport >> generally they're complying wearing the masks in. >> most people are we changed our process for those passengers that weren't wearing

masks to ask them to wear them. >> it's kelly here back in the studio i wanted to ask you about the recent headlines about the number of firearms your intercepting from tsa. are you getting a sense for what's driving that? any reason why people are traveling with more firearms right now or does it just reflect the surge in gun ownership that we're seeing this year why would people be trying to travel with them just any insight >> i think it's the increase in gun ownership. we are seeing three times the rate that we saw last year last year, we saw about five

passengers per million passengers that carried a weapon now we're seeing about 15. that's three times the rate that we saw in the past the concerning part of all this is about 80% and sometimes higher of the weapons that we do detect in the check point are also loaded. that has a significant safety issue for my officers and certainly for passengers we follow up with a severcivil penalty action at least a 2,000 dollar fine and sometimes up to 13,000 we also turn it over to the local law enforcement in our check point. my message is weapons are prohibited at check points

on the carrier websites there's permission has how to do that and our website, tsa.gov, there's recommendations for what to do. the way to do it is in your checked paper bags and not your carry on >> if the rate is three times than a year ago, that cannot all be accounted for by the increase sale of firearms what could other explanations be and what do these people tell you when you uncover a firearm or a loaded one? oops, i didn't know i had it what >> you're exactly right. the typical answer a passenger provides when we find a weapon in their carry on is i forgot it was there. that's in and of itself a

concern. the first part of your question, it's not all increased sales of firearms there's other thing things i think it's an increased need for people to have perm security i would be speculating if i went much further than that for us it's easy you cannot carry a weapon through check point. remind yourself of that. >> thank you for your time we appreciate it thanks as well to phil coming up, the billionaire tilman says big cities and big attractions are the keying to the economic recovery. he will explain what has to happen next to unlock a real and lasting rebound. check out nvidia shares are lower after hitting an all time high the stock is up 200% in the past year there is something in the

charts that could mean more gains ahead. the traders will explain power lunch and trading nation when we come back. not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪ 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. ♪

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for those who were born to ride, there's progressive. it's totally not the same without you. we're finally back and can't wait until you are too. universal orlando resort. buy now and get two days free at the parks. restrictions apply. welcome back to power lunch. we're watching nvidia. the stock is already up more than 100% this year. it's next move could be a make or break moment for the entire chip sector. let's bring in the trading nation team to discuss

i was interested who were the biggest holders of the stock seems like it's not just retail. institutional investors make up 71% of the company's float but valuation seems to be a concern here it's trading at 50 times forward looking earnings how do you trade the stock >> you said it it's a huge momentum stock they are a leader in ai, data center, machine learning self-driving cards, cloud gaming the semis as a group are showing relative kind of weakness to the nasdaq but the two that are pushing within the semis or amd and nvidia it's well contained in parallel channel but below any resistance we see is clear from the $290 resistance from 2018 the position in two segments gaming and clouding.

obviously with the big boost from the work from home trend. continuing to be bullish >> aside from gaming, cryptocurrencies, could that play into nvidia and its earnings >> it may. here's the deal. it's the definition of when momo meets fomo you nailed it. the stock is trading 50 times forward earning. 25 times sale. 74 times free cash flow. it's up 100% it's very dangerous. it's a great company unbelievable balance sheet you put it on your list and when the market eventually corrects, as it will at some point, then you step in and buy some shares.

i do not think you chase this name especially in to earnings here >> some good numbers to take into account always appreciate your contributio contributions. for more head to our website or follow us on twitter back to you. up next, it's tilman tuesday. our weekly pulse check with the ceo. he says big cities and attractions hold the key to the u.s. recovery. we'll talk hoops as his houston rockets begin their playoff charge all this right after "power lunch" returns hey, kids!

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the host of e's the soup! camp tonsafun. it's like summer camp, but minus the poison ivy. unless you own poison ivy. in which case, why? just say "summer camp" into your xfinity voice remote to join. welcome back, everybody. here is your cnbc news update.

today's massive 1,000 page bipartisan report from the senate intelligence committee on russia and the 2016 election assesses that president trump did indeed talk to roger stone about e-mails stolen from democratic party computers saying in written responses to questions from special counsel robert mueller that he did not recall doing so. ron meyer is leaving nbc universal after telling the company about a secret sett settlement he made with a woman who was making false allegations against him following a brief consensual affair. he said others learned of it and were trying to extort money from here the kansas city chiefs plan to have fans in the stands for its nfl home opener but attendance will be limbed to about 15,000 that's over a fifth of the stadium's capacity tickets sold in groups of six,

you got to wear a mask for the whole game let's check on the markets it's the s&p we're watching. 33.86 is the level there looks like we're still a couple of points above that threshold s&p is in the middle today the dow is still down. the dow is down about 34 points. tyler. it's a challenging time for businesses all across the u.s. that's a bit of an understatement big cities are at a stand still amid the coronavirus pandemic.

these center cities, these event space, the economy won't be able to get back on its feet. tilman is here again he is a new york times best selling author he is also a regent at the -- chairman of the regents at the university of houston. let me start there, mr. regent what is houston, the university doing, about in classroom learning this semester we all know about what happened at chapel hill >> right now in houston, we're not getting a lot of negative tests. when we talk about texas as having this horrible outbreak, it's still less than 1% of our population in texas. then we started the masks. everybody is being real careful.

i would love the come to new york your mayor and governor won't let me if until i quarantine for 14 days, which is kind of ridiculous that's the reason people aren't going to new york. we're going to try to do 20% in person and the rest virtually at the university of houston. when it comes to education, it's hard to point a finger of what's right or what's wrong because we haven't done it yet. >> i forget which conference houst houston plays in they are planning to play football football >> yes we're planning to play

a lot of these athletes made a good point if you don't have me there where my card naters are tell me, this is what you do they are being careful because their whole goal is to play on saturday if you don't give us this, then we'll be out with everybody else we'll be going to the beach and college kids will still get together they will still have their beer parties. >> you think >> let's get to the question you make i think it's spot on

that is the idea that until not only the major urban areas of this country but the designation places of this country for tourists, conventions, meetings and more until they start to come back, you're still going to have sand bags around the feet of this economy. it's new york city where this morning the mayor announced that anyone checking into a hotel or into a bnb or air bnb, a shore term rental will have to fill out a form they will have to say where they came from. they will have to declare whether they are required to quarantine for 14 days nobody will come to the city from those states that are required quarantine. if you talk about vegas, orlando, san antonio, chicago, all of those places will be just be calm and dead in the water.

>> we're getting ready to come out of the leisure season. everything opened up in june and july people have done some business in june and july and now through august all the water front areas in the country. all those places are getting ready to slow down there's no urban business -- and i always call, there's three meccas in america. it's where all people go there's nothing like them anywhere else in america time square, disney and the las vegas strip. when you look at the business that's done and now your leezier is getting ready to slow down at the water front where people are out doors, de blasio has let time square be worse than it was

back in the '70s and '80s. he doesn't care. just like he doesn't want anybody to come to new york. i don't know what his plan is, but he doesn't care. we're shutting down more hotels andrestaurants in orlando now. the san antonio river walk, new orleans that are huge convention cities chicago, huge convention city. orlando, huge convention city.

there is a sense of decline. quality of life measures are way off. you see a lot of boarded up business, a lot of closed business, a lot more homelessness a lot more trash and decay let's move to online gaming. >> let me just say something real quick to that so many of my best friends live in new york. these are people that are new yorkers and new york proud they are really worried about manhattan. not all of new york but they are truly concerned that man at than might not ever come back it's something we need to catch for. we've got to do something to get manhattan moving this usa will never move without

manhattan. it's still the epicenter of everything that happens. not only the united states but the world. you say this pains me because i need this million dollars. online gaming has been a squewet spot for you but it's not sports gambling, is it? >> no. i think everybody has realized this when we decided to spin this out that everybody is all hyped up about sports betting. this is the first thing i tell people first off and online gamable ga worth $700 here is another statistic that is really interesting. 95% of people wh

gambling are men only 5% of women it's 50/50 when it comes to op line gaming. you introduced another 150 million people the casino with table games and slot machines is 97 to 98% of the physical plan of a casino in your sports book is about 2 to 3% of your physical plan people play online gaming. they play slots and they love to play table games as good as sports betting is, the hold is not as good sports betting and you use sports betsing bets i -- betting to capture customers. that is why it's so important to us it's also why we make money is because we have online gaming and not just sport s betting. there's no comparison.

you can keep looking at the statistics and are we going to do sports betting, absolutely. you use it to acquire players. at the same time you make your money and slots and table games. >> it must be killing you to not go to the rockets game tonight with oklahoma city you'll be playing without russell westbrook. when do you expect him back? >> gosh. it's truly day-to-day. it would be great to get this win today. he might be ready come thursday. he might be ready come saturday. it's one of those kind of strain that it is that upper thigh sh it's a true day-to-day thing.

we're really looking forward to winning the series >> we'll be watching tonight i'll wager one thing i think chris paul will be a fantastic coach some day thanks very much see you next week. kelly. coming up, a new contender for tiktok an old face in a new place those power movers are next. (upbeat music)

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welcome back time for our power movers today.

we begin with shares of oracle after it became the latest tech giant express interest in buying tiktok shares are up nearly 2% as they become one of the surprising names in contention for that asset. cal-maine foods. they are separately announcing a lawsuit brought against it by the state of texas was dismissed that accused them of price gouging on eggs during the pandemic shares of bloom energy are higher by 20%. last night it was discloses that one of the company's board members bought 70,000 shares of the company's stock. the board member is the former general electric ceo and the company getting boost as a result ty kelly, you want movers, we got even more movers for you look at department stores. all down today i got to return some things to one of those stores later today.

i won't tell you which one battle between insurance companies and small businesses is a global pandemic covered as a business disruption event? that discussion is next. plap

all across the country, can businesses are battling with insurance companies over business disruption insurance. so far, insurers are winning in the courts contessa brewer has more on what could be a $400 billion battle >> hi, tyler yeah, the insurance industry estimate that's u.s. businesses are building a trillion dollars a month in losses. small businesses especially have been hard hit. to turned to insurers hoping it would pay off. bhut four barber shops in texas sued state farm for denying the claims, the federal judge sided with state farm, ruling coronavirus did not cause the physical damage necessary to trigger the coverage state farm told us we accept the court's sound decision since we do not collect premiums to protect against viral pandemics. commercial losses caused by or resulted from viruses are not

covered. now insurers say survival is at stake. if they were forced to cover costs for just small and medium size businesses, it would cost $400 billion per month they're fighting the effort in state legislatures they're fighting in court. washington, michigan, new york of have all seen cases decided in if favor of the insurers. in the meantime, the small businesses have no recourse but to just close down tyler? kelly? >> contessa, question. i mean, look, if it's excluded, its excluded it's excluded. it would seem to me it's pretty black and white. what i wonder is if there is any wiggle room. whether the policies are new or have a long standing relationship if there is anything the insurance company could do not that they might want to. but if that makes the difference >> yeah, you know, it's

interesting. analysts have been looking at cincinnati financial because they didn't as a standard include virus exclusions they say if there's no physical damage, no front in front of this business, he says he has a policy with hartford and he is friends with the local broker who sold him the policy the broker told him, you no he what don't even bother trying kelly? >> wow all right. contessa, we appreciate it contessa brewer. >> lots of retail earnings out today. up nearly 90% from the march lows now that the stimulus money has run out, is the run done that's next. don't forget, you can always watch or listen live on the go on t cc p.henbap we're back after this.

welcome back a mixed bag for retail walmart and home depot benefiting still look at the stocks

despite having an initial spike, they're trading lower this afternoon after hitting all time highs. walmart warns spending slowed in july as stimulus money ran out kohl's beat but gave a brim holiday forecast that is down 15% taking down the other department store names with the possibility of no more stimulus for now, could all this mean the consumer is losing steam into the final months of the year the most important ones for retail steve is the former ceo and chairman of sax. good to have you with us how much of a setback are we facing does it simply depend on what comes from congress? >> oh, i think it's more than just what comes from congress. although, that will have a significant impact on the overall trends but the issue really is you have winners and losers.

there is pickup curb side, contact list so the customer is out there shopping it's the more traditional department store mall based consumer doesn't feel terribly comfortable going into a mall. if they do go in, they're going to be purposeful they're going to grab everything they can and get out so i think that you have the winners and losers overall retail is reasonably healthy in coming back better than people thought. we were down 10% overall in the depths of the virus. now you have seen it come back to almost flat >> right >> the month on month has slowed down and that would be the impact of the slowing stimulus but, sure, the stimulus will have an impact going into the fall but i still think you have this phenomena of the winners and losers >> yeah. it may be early to tell. august, i think, red book data, the weekly data, year on year still show that we're improving. so it doesn't look like we just went off a big cliff there but it's early

you don't want to make too much of the week to week swings let me ask you about kohl's. they did better than expected yesterday warning about a holiday season whose challenges are fairly obvious why are investors punishing the stock so much? >> i think we have to look at what do we mean by doing better? many companies are showing better earnings than had been expected kohl's earned -- had lost 25 cents. much better than people had had thought. they're controlling costs. they're controlling inventory. but their overall sales were down 23% so you got a weak overall top line growth. that is what the street is looking at and they're concerned about the back to school business. they're concerned about holiday. overall, i think that we got to look at are you going see top line growth? if you don't get top line growth, that's the concern about the department stores, it's concerns about a lot of apparel, manufacturers, apparel sales in general are down in the 30%.

walmart is doing very well they moved from the needs to the wants. apparel at walmart and target. this is more competition in the apparel space. so when you look at a kohl's, yes, they did very well controlling their costs. they controlled their inventory. i'm a little bit concerned about the amount of inventory that's going to be in the system for the fall everyone cut down their purchases. but i look at this wide range of competitors that kohl's and the department stores have to look at. >> that makes sense. and if kohl's -- it's an interesting symmetry they were down 23% i think home depot sales were up by the same amount steve, thank you very much good to talk to you today, sir >> take care >> formerly the chairman and ceo of saks. >> i think very close, certainly above an all time closing high

which was i think 33.86 or there abouts >> 3393 is the intraday high >> this is the sharpest snap back in market history >> one of the other oddest factors about this whole recession and recovery >> what a whacky year. thanks for watching "power lunch," everybody. "closing bell" right now >> thank you, kelly and tyler. welcome to "closing bell." i'm sara eisen here with wilfred frost. it happened. the s&p 500 set an intraday record high this morning and we're on track for a record close h again, we really are let's see if we can close at these levels look at what is driving the action right now amazon, the top performer, walmart and home depot trading lower despite what were blowout earning reports number progress on