sounds like it's about to be legalized around these parts >> it certainly does how do you get a job like hers >> very lucky lady >> i don't know. just seems like -- it seems like of all the things you could research this might be one of the better ones. i don't know whatever >> thanks for watching we'll see you tomorrow "closing bell" starts right now. >> thank you, kelly and tyler. welcome, everyone, to "closing bell." i'm sara eisen here with brian sullivan who is in for wilfred frost to i day. welcome. s&p 500 is above 3400. let's look at what is driving the action a rally in technology. apple is sitting at hay hia high today. amazon, alphabet aand adobe the total number of cases continues to fall.

airline stocks are popping after the government gave approval to a different way to disinfect surface onz planes american, united, delta, they're all up 8% or so. s&p 500, nasdaq set for a record close. with he have 59 minutes left of trade. brian, good to have you onboard. >> yeah. good to be here on a day where there seems to be a lot gf news. the markets are powering higher again. we have a long way to go two hours. coming up, you remember herbalife. they sparked wall street's most epic battles on the halftime report it is reinvigorated, more than doubling from the march lows and our interview with the ceo is coming up later on. we're going to be joined by penny pritzker and ask her about the democrats' economic platform and how a biden administration would tackle the coronavirus are your taxes going up? we're going to ask her directly. right now let's focus in on the big stories that we're watching to day mike santoli, as always, watching all the market action joining us to talk about the latest developments of the

covid-19 and treatment front is from stat news the we're going to start with you, mike. this, the recent knock on this market rally, by recent i mean on wex this morning, was that this is a very narrow rally. 70% of s&p 500 stocks actually fell last week it must have heard the criticisms because it seems to have turned around the breadth of the market today. >> yeah. the market is essentially answered that critique now periodically with he get this it is true that rally has started to wabble or become more selective or sputter a little bit under the surface. but there is no single right way or objectively better way for the market to behave sometimes it is narrow sometimes it broadens out. the key point if you look at the one year chart of the s&p 500 is it's pretty difficult to find a lot of fault with the trend itself here was your sharp rebound. that is just a reflex from an oversold condition thst is a little less steep.

that little run into the early june highs on the back and then it sort become a little more gentle since then breaking to new highs. i do think you can look at things like apple's reversal off the highs to day tesla. maybe there is a little bit of an emotional climax going on in the big growth leaders you're right financials working to day. some of the stuff looks better i do want to take a look at the nasdaq 100 the qqq. it is the area of the market that perhaps looks a little bit slightly stretched on the short term really, again, that's an unassailable uptrend this is roughly speaking 21-day average. that is a 4% to 5% growth stock. lots of stories. lots of talk about momentum and a chase. and just kind of a fad type of

activity the market is conversion the stock flow stories into a bucket you flat enout here. doesn't mean it is an impetus to go higher. if you look at facebook and other things like google is cheaper. it seems to me this is what is happening. we're treating these pieces of paper as similar instruments has apple will become a utility? i look at that i look at your notes this morning. i love your piece about how analysts are trying desperately to find some fundamental way to fairly value a company do the analysts matter and is the stock becoming a u silt much p like a water or sewer company? >> i wouldn't say utility. i think it's basically a toll

road operator with a franchise that nobody can penetrate. that's exactly the way the market is treating something like microsoft i think the market wants to pay a lot for those things but again, it's very difficult using standard valuation to git too far above where the market is already taken that stock even if you do believe this is a really durable, very long term cash flow story with the buyback and the dividends on top of it, brian. the trump administration is considering fast tracking the vaccine developed by oxford for use in the u.s this after the fda wants to treat covid-19 patients with plasma let's bring in matt herper thank you for joining us first on the treatment news.

what is the reaction from the medical experts? doctors that you talk to how big of a deal is this? does it expand coverage? >> it's not clear how much it expands coverage does it expand coverage some the convalescent plaza was available in the study that generated this data which is called expanded access program, 35,000 people in that study. the question is a lot of people are still very unsure whether or not there is evidence that it is effective. i guess if you're a patient in the icu, you want anything that can work if will is enough evidence to show that this does, why not go ahead with this emergency use authorization? we need more of this, don't sfwhe. >> the experience with hydroxychloroquine is a good reason to be careful about that. whatever you this about hydroxychloroquine, any indication that we used it in

patients who were in the hospital, there are now several trials showing that there was no benefit and there may have been harm so that's not always true. robert caleb likes to say that, you know, in you put all the studies run in anything together, you might be better off getting placebo than drug. its not always true that something is better than nothing. >> we heard that a vaccine may be 40% or 50% effective and that only 40% or 50% may take it. we're going to have to power our way through this is there any indication, and i'm referencing a study about germany two months ago that we are seeing t cell and antibody response naturally in human beings just by having some small viral load or a small exposure to the coronavirus is there any indication that we are self immuunizing -- >> not at all. i don't know why you would go to self immunization over vaccine

there are a lot of vaccines in development:the development. there's a tendency of people watching to focus on one but really, the -- i see you have them up there mow dern yashgs pfizer, johnson & johnson, novavax and then there are more after that. i wouldn't bet on -- the way the fda se fda set the sbbar is if a vacci is 30% effective you know it's better than 30%. that's what they said they will approve. that's going to be better than that immunity that you're talking about. >> what about this financial times report, matt that the u.s., the trump administration is slooking lookt fast tracking the vaccine. people wonder if corners are being cut from a safety per sickive with political pressure around the election to get this

vaccine out. >> there are two separate things i heard from a lot of doctors that are worried that corners will be cut adjustment saying that you're going to approve the after the are as tra citizen he cana study doesn't mean that it is going to wshg well. the problem with the uk is there is not a the lot of coronavirus. brazil, there is a lot of coronavirus but the study is smaller. it's possible that there will be data from those studies that could warrant at least some expand expanded access. it doesn't have to be for everybody. but really the question is whether the fda gets an opportunity to weigh that evidence properly and to abide by the standards that it's already set. >> matt, i want to go back to the previous point i asked you about natural immunity i'm confused by comment. the reality is if half the country can't get it or won't take it and it's only 30% to 50% effective, we look at 1968, the

forgotten pandemic twice as deadly to those under 65 as covid-19 so far has been it's still exists in some form today. and there's been some talk that maybe we're a little more resistant against covid-19 because of the flus even i understand this is different than just the flu. why would a vaccine be better than us doing what we have done over centuries >> well, that's why we have vaccines the immunity from a vaccine can be better than the immunity you mount yourself hpv is a good example there. i wouldn't have -- in order to get the immunity from other coronavirus t cells and killer t cells, those are things that the vaccines hope to generate. that is the idea behind

astrazeneca. but it's a lot -- it's one thing to hope that immunity exist is going to kick in and help us gosh, i do i don't know but vaccines are i wouldn't assume that is the same thing as a vaccine which is why we're in such a hurry to develop one. >> matt, thank you for your reporting. appreciate you joining us on "closing bell. good to see you. after the break, shares of herbalife doubling off the march lows with second quarter sales climbing more than 8% over the last year. we're going to talk to john agwunobi and ask him what is driving the strength in the business [ thunder rumbles ]

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welcome back herbalife shares doubled since the march lows

the company has been deemed an essential business during the covid-19 outbreak and the ceo took the top job just in march just as the coronavirus pandemic was gaining momentum the ceo john agbunobi joins us now. good to see you. so what is driving the surge in business >> you know, we have an amazing strategy that is in place for a while. we're growing now and continue to grow in the future. most is driven by demand, obviously. of a lot of the people around the world are waking up to the notion that health is wealth and they're spending the time to live healthy balanced lives and they're looking for dmcompanies like ours that can supply them with healthy nutrition >> what is happening on the seller front you are getting more sellers for the product people are displaced from home or work and looking for the opportunities from a career perspective

>> in addition to our customer demand, we're finding that a number of individuals are sitting at home and working on computers and realizing there may be another way to add an additional income stream so we are finding that many people are coming into the business with a view to helping develop their own stressors. you are a data company not getting into into personal's privacy. how do they change your business strategy and perhaps the profitability? >> yeah, brian, it's a good point. so what we are finding is that across the industry and especially in our company, there is an acceleration in the push

to a new digital state our company, we're really beginning to leverage technology in what has been a very traditionally very manual business we're high touch, high-tech. and so we are finding that we're gathering data and we're understanding customer habits, consumer behaviors people bought this who bought that you know, those kinds of things are now available to us. we look to the future, a big part of our growth is going to come from the application of technology across our platforms around the world 94 different countries what about the core, multilevel marketing? is that still a bad term or have you got past that? >> our challenges of the past are behind us. our future is so bright. we're really focused on the business opportunity there are many people out there who are looking for additional income streams there are many people out there

looking to start their own little businesses. and our job is to support them in that. >> carl icahn selling millions of shares. does that stock sale who famously, you know, was the subject of a book and argument on this network about your stock, john, does that stock sale change the pace or direction of your strategy >> not at all. carl has been in the business for eight years. he is our largest share holder today and always expressed his support for the leadership and the strategy that we have in place. by the way, one of the finest leadership teams this company has ever seen is in place right now. lots of tenure, lots of experience and carl is a major shareholder and remains so today even after that sale.

>> debt finance share buybacks, john not exactly popular right now during the pandemic. a lot of companies deal with falling revenue. why are you going that route >> yeah. we're a business that generates eye lot of cash. it's generated by our business, not from any other source. we do what we think is right for the company on any given day right for the shareholders on in if i given day our decisions are based in our strategy >> you know, john, your company, especially the way that you're structures with people and sales folks and direct marketing are uniquely qualified to address the reopen because your business is truly people to people. when you look at your crystal ball, i'm sure you have scientists and medical experts and who knows what else on your board or at least consulting you, what are you hearing around parts of the country about a

return to -- i hate to use the term normal, but you no he what i mean. >> yeah. we have the advantage of having watched the pandemic as it evolved into china we're in china and a number of other countries around the world. so we got to see kind of what works and what doesn't in many different settings and so as it relates to the u.s., i think very clearly there's the impact of the disease and the pandemic itself on people's behaviors, on consumption. and then, of course, there is the impact of the -- what is happening in the economy on people's decision making as well it's complicated it's moving state to state and city to city but we're in every community our distributeors live on the corner live down the street from almost every single consumer -- every single one of our customers. so really involved at the street level on what's going on much it's pleasing to see that people are responding, you know, technology has been a great help the plain old phone is important

as well. people calling each other, talking to each other, helping each other through this. by the way, my heart goes out to every single person that has been impacted by this. there are many that lost loved ones and lost their jobs i'm also confident that we're going to get through this. >> as it relates to the pandemic, a question on product, you are making any claims about certain vitamins being able to help fight against covid-19? i know there are studies about certain vitamins d, e, deficiency and making covid-19 worse. the. >> sar yashgs we've been very, very cautious to never link our products to the pandemic or to people suffering in this moment. our business had a strategy working really well before the coronavirus hit. our products were selling well before the pandemic hit.

we're very proud of the fact that our distributeors, our teams, our employees we've all focused on just making sure that we're here to support people, not here to take advantage >> john, herbalife, we appreciate you coming on best to you and your team. thanks for joining us on "closing bell. >> thank you the show is called "closing bell." because that's what every day we count you down to. and the markets, they are higher once again dow, you can see up 242 points we're on record high watch will we hit it well, you got to stay tuned. also coming up, a rare and scary double whammy weather event in the gulf of mexico could that create the perfect storm for oil and gas? we'll show you how much is in that region coming up next on "closing bell. icarndstk ou right now, the worst place to be is stuck in-between. accelerate your investments or pull back? change the plan or stay the course? that's why northern trust is here.

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welcome back along with everything else going on, we continue to follow the

developing story along the gulf coast. marco which was thankfully downgraded to a tropical storm overnight from a category one hurricane set to make land fall today. 44% of all u.s. refining capacity is somewhere in the path of the duel storms. it will be 50% if you include the corpus christi, texas area now of that, about 2.8 million barrels per day is in the houston area so the storm looks like it's going to go turn toward houston, keep in mind that might have a larger impact. you also got 1.7 million barrels a day in beaumont, including the biggest refinery in america and beaumont and port arthur issued a mandatory evacuation order for

the residence as of 6:00 a.m. tomorrow morning new orleans and baton rouge as well as lake charles these are just the areas to keep track of marathon, exxonmobil in bay town texas, valero has four across texas and louisiana. total and citgo and more bp, shell, and chevron removed workers from off shore rigs. the about 15% to 20% off shore production is currently off line actually not that bad b 300,000 barrels we are day on 10.8 million barrels thats why oil is not moving much right now. >> yeah. energy stocks tell will you are up nicely. to your point on oil, brian, i wonder if if, you know, what's different about this time is that the pandemic is still raging we're seeing rising prices in

europe and asia. i wonder how you think about the demand picture which is starting to pick up a bit does it make this sort of supply issue that we could see in the gulf less serious or less of an impact on the price of oil >> i have to think of a clean word about demand. it is terrible jet fuel demand down still 40%, 50%. here's the other thing too h with the storms now, you have millions of people on a new lockdown, not covid-19 related, storm lockdowns. that has a subsequent hit on demand as well renewal of cases nobody i talk to thinks that we're goingto see oil much above 40, 145 for the rest of te year but right now global demand is absolutely terrible. >> have we ever seen anything

like this with two storms heading for the same place for the same time g that one is downgraded but the images are crazy >> yeah. it's nuts. there were technically nefl in the gulf of mexico together. but look at that map they're pretty darn close. and so, no, the question -- thankfully marco got downgraded. just a heavy rain event. thank goodness >> yeah. good that we have you theer day, brian. thank you. still ahead, joe biden says he would not raise taxes for anyone making less than $400,000. but there is still plenty of questions about democrats' economic plan. we'll tackle those and look for answers when we talk with penny pritzker as we head to break, here's a quick check of bonds we look at stocks set for a record close on the s&p 500 and the nasdaq the dow surging as well. we're seeing yields higher

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welcome back the number of coronavirus cases in the u.s. fooling its lowest level in more than two months. notching the ninth day of fewer than 50,000 new cases. total infections in the u.s. have now crossed 5.7 million

with more than 176,000 deaths overall. researchers in hong kong reporting what appears to be first confirmed case of a covid-19 reinfection a 33-year-old man first effected in march seemingly contracted the virus again 4 1/2 months later while traveling in europe. the case suggests immunity to the virus may only last a few months in some people. though experts say more research is definitely needed and the miami dolphins are allowing up to 13,000 fans to attend the team's home opener in september at the hard rock stadium with masks required, socially distance seating clusters and upgraded air conditioning filters brian that, will be an experiment fans in the stands >> yeah. and if i was like a sports radio guy with a hot take, i'd be like that's all the fans for the dolphins after last few years. of i would never say that because i like all the teams all right. time now for a cnbc just up in date for that, let's get to sue herrera. >> good to see you, brian. new york city is working on

setting up classrooms outdoors to fight the pandemic. mayor bill diblasio asked schools to submit plans to hold classes in school yards, parks, and streets that are closed off to traffic the world health organization recommending children age 6 to 11 wear masks. the updated guidance highlights gaps in research and understanding about how likely it is the kids under 12 can spread covid-19. and in india, a residential building collapsed sending up a huge cloud of dust and debris. at least 100 people are feared trapped. local media report more than 17 injured. at least one person is dead. it is not immediately clear what caused that explosion. you're up to date. brian, good tow sue. as we close in on the close, we're in on, what else record watch mike santoli laid it out here.

the we're up on the dow. could have i athree hand three n the close. also coming up after the break, tiktok officially suing the u.s. government over the trump administration's ban plan. so what does the growing tech rift between the u.s. and china mean for other internet names? what about an alley baba we'll talk about that when we come back. first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf

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all right. welcome back technology cold war heating up once again tiktok is now suing the u.s. government over president trump's executive order to try to ban the social media app. company arguing the order prevents it from due process it ignores the efforts it made to profit does not share user data with the chinese government all this comes on the heels of a report from "the wall street journal" that facebook ceo raised an alarm about the threat of tiktok and other chinese companies. while meeting with law makers in washington last year joining us no you is mark mahani i want to talk about stock impacts. but i just want to get your personal opinion on that story do you think mark zuckerberg was sort of the whistle-blower behind the scenes if you want to call it that warning people about tiktok's threat because he knows it will benefit one mark zuckerberg

>> well, i think there have been a couple of whistle-blowers that have pointed out the fact that ownership indirect or direct ownership by thechinese -- in china by the chinese government does create potential security risks for an asset like tiktok i think there's a fact there u.s. companies have been attempting to -- media companies have been attempting to establish themselves in china for multiple years zuckerberg made a hugest there i think that is part of zuckerberg's argument. they haven't been allowed to participate in the chinese internet experience, if you will that's parts of the beef he has. it's justified, i think. >> eastbound if the ban doesn't happen, is there any way it will benefit the instagram. tiktok users, they skew younger. i'm not sure they know or care about all this china espionage threat that we've been talking

about in the media is it going to damage tiktok if tiktok ends up staying >> i think you're basic premise is right tiktok has become extraordinarily popular in the u.s. we do our own survey work every six months last nop novembvember 10% were tiktok we ran that survey again in june it was 31% and rising rapidly. just put context around it, facebook is up there at 80% plus instagram is up close to those levels snap chat at 50% clearly there is a surge in usage of tiktok. i think most people who use it just love the innovation that came out of it hats off to tiktok they created a great user the s experience it shows product development at instagram, and youtube those are the business that's kind of let this mobile video opportunity kind of pass right

by them. >> yeah. i mean the facebook launch right smack in the middle of the tiktok drama how official is reels? how much is reels benefiting right now from instagram, launching this product at this time and the longer that we go without a deal, the reaction is from facebook internally >> yeah. so i think they were smart to rollout this product sometimes imitation is the sincerist form of innovation, maybe anyway, this is -- reels is a very solid product is it materially better than tiktok no the could it be? maybe. tiktok is a very well designed product. the i think reels as a product is part of instagram can boost instagram usage over time. i find it thoohard to believe tt you're going to switch to reels. if you're starting off as a newbie, reels could take away that growth opportunity for tiktok if they continue to

execute well >> i'm going to ask what i'm going to call a mathisen of approval number one, will amazon have fund for years or decades to come and number two, is alibaba doing the same thing in china? do they don't deserve e. deserve the same premium >> they reported last week it is a tale two of cities you know what covid-19 did for online retail? look what happened to amazon the last three quarters. ebay is showing growth rates they have not seen in 15 years amazon in nine years look at how quickly they're growing the on line retail in the june quarter alibaba is a tale of almost the opposite you had on line retail growth rates sharply reduced and then they started to come back.

but covid-19 turned out to be an accelerator for online retail ex-china retail. it turned out to be a detriment for china retail it's very -- it's a stark contrast i think those growth rates at amazon enjoying now, my guess is they're going to enjoy them for a while. you had five months of us being stuck at home. and our habits, entertainment options have changed you're going to see a slowdown in online retail sales growth. its going to continue to rise from a higher level long term. amazon is a clear winner >> just want to point out we're looking at session highs here. dow is up 310 points boeing and dow are leading the charge but we're seeing some real momentum here as we head into the close we have 18 minutes left there is the dow it is higher yes, apple is higher at a record high again but you got another -- a number of other names financials are working to day. energy stocks are doing well a lot of the airlines and automobiles, companies that will do well when we reopen and get past this crisis they're doing well mark, my question was a

followup do they need to be worried president trump says he has other chinese companies in his sights when it come to putting pressure on ahead of the election what does it mean for alibaba? a vast majority of the revenue and profits are in china they have extremely strong competitive position in china. but if they're a risk to alibaba, it's not u.s. regulation it's probably competition from from indirectly from tencent and others there is a series of other -- j.d..com, other series in that market it's local competition that is the real issue for alibaba the they're doing well they took a hit. they had supply constraints. china really shut down in the way that u.s. market didn't. that's why the growth slowed so much it stanapped back in the june quarter.

we remain long in that stock >> well, it's working so far up 30% year to date. thanks for joining us. you have a lot of e-mails incoming after the break, another auto related company gets the spac treatment and a big moment for apple is coming just after the bell those stories and a lot more when we take you inside the market zone. session highs. dow is up more than 300 points on track for a record close on the s&p 500 and nasdaq all ctseors turned green except for health care. we'll be right back. you say that customers make their own rules.

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to see the surge and the momentum continue higher for stocks on very little news i mean, yes, it's always good on treatment and vaccine developments but there is nothing blockbuster, was there >>, no not really. i think that we're extending the trend on the same force that's got us theer a degree. it's almost as if can you look across the dashboard of the relevant gauges for the market and say, you know, do things look better in terms of consumer activity and maybe the signals that we can return back to normal before very long? yes, probably. do hedge funds seem a little underinvested in stocks? yeah, kind of. so all those inputs i think just remain in place. and the trend kind of will will push itself to the point where it gets to some kind of an extreme. now you're seeing pockets of that i mentioned earlier, you're going to have apple close 12 or $15 off the high tesla had this huge surge at the open maybe you got the motional peak.

but on the whole, a broader participation today and you're seeing a market that continues to remain supported even when certain things don't look perfectly in line with the bull case >> steve, the three words we hate to say on television, i don't know they're hard to say, right and stocks go up for one reason. not because of vaccines or whatever, because people are willing to pay more today than they were yesterday. that's pretty much much it i don't know why they're willing to do that do you i don't know there are so many factors as the play what i do know is this it's been a momentum market. momentum market before vud hit early in the year. and now it's a momentum market again. a lot of cash on the sidelines

maybe that's it. it's a combination of factors. about ut what has been evident to mike's point is that every time we get a positive bit of news on the health care front relating to covid-19, the market takes another leg up you're going to continue to see that into when it is anticipated we get results from some of the phase three trials at the end of this year or third quarter next year then you have a big move on top of that but that's how it's going to trade >> all right, steve, we'll get to you in a second apple is set to enact the four for one stock split after th close of trading to day. it's a big day so let's get to josh lipton with more josh >> that's right, pry brian apple will be enacting the new four for one stock split so here's what that means. each apple shareholder will receive three additional shares for every share they hold. trading will then begin on a split adjusted basis on august

31st point here, lower the stock price and attract more invetors. plit comes after a strong run for apple, up 70% now. question is whether there is more room to run morgue an stanley just raising her price target to a new street high of $520 worth noting, the average price target actually implies a 15% drop from these levels guys, back to you. >> all right josh lipton, thank you very much i go back to that as well. i understand, listen, stocks splits, they matter. people buy just the split. but apple is a bit unique. because the dow is a price market index, don't you kind of have to split if you start to get up in apple's territory? pretty soon, you're not just a part of the dow, you are the dow. they were kind of in a unique spot >> they were

i don't know how much attention they pay to that though. i think it's more they want to make it accessible study after study has shown that even though there is no economic effect to the company, the stock price trades up depending on the time frame of the study from 5 to 8% post split just as reverse splits stocks generally go down. look, what we see, you raise the price target i would note less than a month ago she raised the price target to $431. so what changed in not with apple? nothing. i'm not impress bid analyst that's are playing this game where i have to catch up i'm not just picking on katie. she is a fine analyst. i would say, wow, that was great. but to have a target of $431 three weeks ago good nothing for anybody. now you'll see more analysts come out and raise the price targets. so that's what the market is about. it's momentum.

so fundamental research just doesn't matter you have a valuation holiday they're guiding for the present quarter and most are guiding for the year throw valuation to the wind. it's purely momentum right now and that is dangerous. but you have to be there there is no alternative. >> i mean, to be fair, her defense, the call is actually on multiples, right it is on valuations rising in a lot of tech makes it she was ultimately saying that apple trades at a discount stit have to do, i get your point with, the price action but that is clearly one reason behind the surge and unbehind the momentum in the stock already. also said she's not worried about the app store. >> right b but sar yashgs the questions were insightful. let me ask you this. is it at a bigger discount to the other stocks that she was looking at a month ago or now i would tell you a month ago

number one number two, it should be at a discount the company's revenues have been flat for two years tim congreok got paid down in 28 you have flat revenue. the stock should be where it s it's purely up on the momentum i'm an owner of it i abought more shares the day they announced they're going to split because i'm familiar with what happens with splits which i just mentioned i'll stay there. part of the selling from the peak today is that you have some people that did what i did that say okay this is as good as it gets or i made enough money, let me go. i think the movement continues for another few months i'm positive on the market >> yeah. a technical analyst is telling me this the key to the market. he would have expected to see the market roll over that didn't happen apple is up 1% stocks are surging we're watching it carefully. also, let's talk about evs special purpose acquisition

companies. but today the focus is autonomous drive technology. phil lebeau with the details >> the name of the company is luminar, one of the leaders in the development of autonomous vehicle technology so here's the deal announced today. it is merging with a blank check company. it will close by the end of the year the valuation, $3.4 billion. luminar technology saying, look, our software and hardware is going to be in in volvo models the entire fleet by 2022 and they're hoping that eventually when they go public that they will have the kind of performance, the stock will have the kind of performance that replicates what we've seen with nikola take a look at nikola, even though it is not as high as it was in june, it is well above where it was when it first came public now under $40 a share. there are six, count them, six ev or av or auto related spacs

announced since june >> that's a lot. what is that indicative of it is frothy is it euphoric what is your opinion >> i think a little bit of all that it's a gold rush what is interesting about it is the fact that you have all these upstarts that are rushing public through these vehicles to get there quickly, it accentuates the head start that tesla has. if you think that electric vehicles are going to be a huge part of the market, tesla has been your only way to play it. that being said, tesla today, even though with all that head start kind of atmosphere around it, it is more than $100 off the high traded $40 billion worth of its own stock, more than 10% it routinely does. you can't tell me that what goes

on in tesla on a day to day basis is the wisdom of the crowds deciding exactly what this end market is going to be in a couple of years it really is a trading chip right now. a lot of the companies are drafting behind it >> kind of makes me feel like 1998 again remember andrew wit capital. new way to sell stock. anyway, phil, the airlines are among the biggest winners in the market today >> it has plateaued. we'll show you the numbers take a look at the airline stocks today they had a nice move

they'll be applying a new cleaning process it's been approved this is one way for them to say it is safe for you to fly. we'll make sure that the virus is not alive inside the cabin. you mentioned the daily passenger numbers. brian, take a look at this they generally have plat plateaued. if you look at what they averaged, we're up to 710,000 in the month of august. >> phil, thank you american up 10%. american is up 10% delta is up nine we have two minutes to go. what you are seeing in the market internals as we race for another record close >> yeah. they're sturdier we were saying earlier if, the criticism is narrow, today it is a broadening out of the rally. and here you have almost 5-1 advancing volume in the new york stock exchange over decliners. the nasdaq is more mixed

that is to be expected that's been the leadership area. take a look at the equal weighted s&p 500 this is month to date. so today you have pretty significant outperformance by the equal weight you have a slight advantage i would say by the s&p 500 the market cap but on a month today basis, they're both higher and moving in the right direction can you quibble whether the moshgt market is broad or not the vix is in a zone you're not seeing it pop it is still okay with where the market is. but it's not really rushing below that 20 mark that used to mark more normal pace of the tape >> all right good stuff there by the way, as we head into the close here, just about 45 seconds left we are on record high watch. the s&p 500, the nasdaq, the nasdaq 100, even the russell 3,000 at all time highs to day small caps are the best performing group of all.

the vix is down. the dollar index is slightly higher as well heading into the close, record highs. >> welcome back. i'm sara eisen along with mike santoli and brian sullivan very strong dloez close. the dow surging into the close we were higher all day look what happened in the last half hour, 20 minutes of trade ticked to the highs of the day up 378 points on the close for the dow. it was a lot of the cyclical or value groups that led us there the s&p 500 closing up 1% at a new record high.

every group ended higher today health care was the only group to close lower real estate and technology actually lagged some of over the groups today in the s&p 500. the nasdaq closed up .6% enough for a record. but not a day where technology was the only thing up. you can see in the cruise lines, department stores, kohl's had a strong day a lot of the reopening trades did well small cabs up 1% st that was its best day since early august coming up, we're going to talk to penny pritzker. we're going to ask if joe

biden's tax plan peases the party. steve wise is here we also have frederic baba joining the conversation welcome to you but first, i'll turn it to you on this burst of strength. the fourth week in a rove gains for the market propelled to new heights and financials and materials and energy were the stars of the session. what does it say to you? >> those are theers that actually had a gentle pullback over the last couple of weeks from august 10 ng which is two weeks ago today, the close on august 150th, the s&p 500 was only up about 1% even though the big nasdaq stocks were up 5% as a group. the rest of the market settled back now you see this ebb and flow of money that sort of remaining in the market but shifting around as things proceed. i don't see a necessarily a trigger point as to why it would have been today. just a more of the same.

people kind of being pulled into having greater equity exposure because they feel underincested. if the market is going to be pricing in a better recovery right or wrong, thats what this market is telling you. it's tracking the path of the 2009 recovery. i'm saying it's the same cadence we saw back then there the is an early cycle dynamic with the industrial type stocks and the financials perhaps that you can play. they have given you awe cushion. at some point et gets stretch toad far i'm not sure that you would make the call today was the day >> yeah. maybe not. we were joking earlier that we don't know we don't know why stocks continue to go up, why apple deserves 37 times earnings it doesn't seem to matter. number one, do you have an idea why stocks keep going up besides there is more buyers than sellers perhaps? and are you at all concerned

about the market structure, the underlying health of the equity markets? >> one view people employee pose is if you think about the value of a company is the value of discounted cash flows. obviously, rates are low at this moment in time the way you by this that discounting is going to be different. like if you are a fairly capital intensive tech company and cost of capital is dloclose to zero,e marginal thing you're able to fund and turn into a profitable idea i think is going to be like that bar i think in that hurdle goes a little lower. obviously, this is very outside of my wheel house. i'm very much a rates person >> so talk to us about what is happening in the rates market. wet talked treasury yields go up a bunch today. st do you think we've seen the lows >> i mean, i think that's not exactly clear.

i would say that this is just generally been a continuation of what you were seeing last where you saw the back end of the treasury curve trade fairly well, like it's come off a bit from earlier today the you have seen like certainly within our client franchise, there is a lot of interest in inflation based products certainly if you by this what is happening this week with the jackson hole conference, very much like the fed's policy and how they're going to evaluate and assess, that is very much in view that seems to me more like the main story and the market is kind of waiting to see how that realizes >> is there a point, stephen and mike laid it out nicely. he talked about the yields, earnings yields versus band market as well when i look at the dividend yields on manufacture the companies and the s&p 500, the majority of them are still either at or well above that of the ten year yield s there a point in which the ten year could get to, i don't know, 1% not 3% but one% that makes owning equities less attractive?

>> i don't think so. i mean, i1% is not the number 4% could be the number 5% could be the number not at 1%. not with a pledge from the fed to keep rates lower longer than they've ever done. by that i'm referencing inflation which they don't seem bothered by and we're not seeing any hints of so there are still stocks can you buy out there. look at the rates. so the market is deciding we don't really care about that we care about the rotations. so i just don't think it's going to play into matters for another year or so >> steve, when you look at the outperformers and the s&p 500 today, american airlines, we hit it up 11% carnival up more than 10%. united 10% delta, kohl's, norwegian cruises, gap which reports earnings the hardest hit names and the hardest hit businesses on the back of this pandemic. you know, maybe when president

trump comes out last night and says emergency use authorization for convalescent plasma, those steps perhaps are very important towards increasing consumer confidence to go out and resuming life as normal. if the treatment options are increasing and are getting emergency approval, we're not as scared to go to hospitals perhaps? i can see the logic there. do you buy that? >> well -- >> steve >> yes yes. i do and that's my thesis the momentum of these right to treatment or i think actually the natural treatments as they come out are what is lifting the market that gives people hope so they're not really focused on direction. and they continue to be reopening the economy. then i think the market will continue to move higher. i would just caution american

airlines is still upside down. it's 50/50 that equity holders get wiped out. the cruise lines have massive debt there now plus, business travel for airlines is the most profitable customer they're going to be traveling there. they can do that without leaving their office for two or three days it won't be worse for the airlines for a long time it took three years for traffic to come back i don't think traffic ever comes back for the airlines. >> speaking of history, let's talk about rates you know, debt issuance, even former deficit hops have become sort of like well we don't have to worry about debt because there is so much demand for our debt we had 20-year auction that's have gone well recent auctions look like they've gone well. but the u.s., sadly, is on pace this year to probably top its all time record debt to gdp

ratio that was set back in world war ii obviously, you sell a lot of debt and the gdp goes down because you're at war. is there any sign that the yield curve is going to flatten out or go down any time soon? are we just going to live with this for years or decades to come i think there is a point where they become unsustainable. i don't think we're at that point yet. i also think that given how much central bank focus on keeping the economy in a stable place and keeping financial markets in a stable place, i think that the path to getting that to that point where the system is unstable would involve people at various central banks not being on top of it along the way so i think that while we are reaching this kind of unprecedented spot in terms of debt issuance and in terms of debt to gdp, i'm not quite at the point where i'm worried that the world will fall apart on the back of it

>> what about the dollar that's been a key focal point. the weakness, the extreme weakness of the dollar has helped provide fuel for the equity market rally. it did rise today. what you are thinking about the dollars direction and how much pressure it's facing >> i think and you're not exactly sure how it's going to move forward as the market processes that, i think people are going to have thoughts around inflation. it's through people's views on the dollars. >> there is this chase for real yield. i will also say that -- as people are thinking about gold versus dollar, people are thinking about really yields and various expressions, we here at goldman sachs with, he have a conference coming up first week of september all of these topics are very top

of mind for the clients in our franchise. >> they really are stephen, i mean, if it we're going to go back to the market playbook where we had significant inflation, i think the last time was 1979 and 1908, gold skyrocketed higher in real terms than it is today if you adjust for inflation or nominal terms anyway so if -- number one, are you in the inflation is coming camp and number two, if if you are, you are just buying gold, silver, lumber, treasury inflation, projected securities? soy beans for your short hills farm what are you doing >> well, i'm not thinking inflation is coming camp not in a normal investment because what you continue to see is efficiencies in the market in the industrial market that allow prices to be kept down and we're going to continue to see that whether it's not just the amazon effect for books and retail objects. but it's the effect of companies

getting much more efficient. so what what that's going to do to inflation is keep the lid on it i'm not worried at that at this point. neither is the fed the i think i'm in good company. >> finally, just to wrap it all up, mike santoli, record closes for the s&p 500. record dloez for the nasdaq. you know, somewhat hard to believe again given just how much pain and suffering there is out there economically with millions on unemployment and with small businesses closing by the thousands if not hundreds of thousands. if you look at the stock market and housing which are both booming and both, you know, at record highs, typically, those can be leading indicators of the overall economy. do you think that's the story here or are those just being disconnected because of the haves and have notes in this economy? >> i think they are leading indicators directionally i think the stock market is

probably an exaggerated version of how good things might get simply because you have these huge dominant companies that have been stress tested about i this massive shock and came out of it looking fine, thanks in if large part to the cushion that was placed under the economy and the credit markets by the fed and fiscal response. i think you had this model of, wow, if i'm an equity investor and saw a real world experiment in how can you short seshgt a recession, that place as i higher floor on everything and then you build valuations on top of that and build your expectations for recovery on top of that. but -- housing for sure is a good leading indicator of the real economy even as affordability gets stretched the i think all this stuff can co-exist at the same time. it's just not telling the same story to the same degree on wall street and main street by the way, it's also because it reset the capital over labor equation in a way erratically overnight. you were worried about wage

inflation. you were worried about man margin screens we just reset all of that:that works more to the benefit of the stock market than it does to the household. >> good way to ut it, mike santoli, thank you to stephen and frederic. thank you both for joining us. coming up on the show, the apple of wall street's eye apple shares soaring to new heights today as it enacts the four for one stock split up next, a debate on whether the stock can continue this record run. it u07'sp % this year. we're back fwh just 90 seconds ♪ with a happiness that died ♪ i let it get away servicenow. the smarter way to workflow. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands.

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welcome back it was another blockbuster day for apple. stock and another blockbuster day for apple investors. a record high as they split four for one. you know this. apple has been on a terror lately you no he that the stock has done great but we dug out two stats that are definitely, dare i say, random but interesting check these out. apple's market cap gain this month is about $360 billion. give or take that would make apple's market cap gain this month the tenth biggest company in america by market value it's actually higher than. that we calculated that an hour ago before apple will rose $360 billion in 16 trade days. guys, how about this one apple has now gained more in market cap this month than the

entire company was worth when tim cook became ceo. certainly no knock on steve jobs whatsoever greatest genius ever but what i'm saying is apple was worth $350 billion the date tim cook walked into the c suite office it gained more than that in 16 trading days why? >> a disconnect between what i think a lot of sell side investors and i'm from the sell side, i appreciate that business very much. and buy side investors seeing this combination of hardware and software ultimately, the undeniable truths about what -- [ no audio ] >> all right we're waiting to get gene back we'll get to josh in a minute.

i think those stats i hope those stats really sort of hit home. think about that $360 billion in 16 days. that is historically the worst month or one of for the markets all year incredible >> it real why i is incredible it puts the sifz the company in perspective. i think it also makes it, i made this point before and i made briton the network, a target when it comes to antitrust attacksst just by the mere size of it. they're joining the chorus with epic gaming. calling out apple for the policies on the app store and for taking that 30% cut and being seen as anti-competitive the size as apple continues to grow to new record high after record high. they field the argument and a

bunch of them jumped onboard backing epic so a host the giants going against each other on this issue. >> yeah. truly is something incredible. i believe we have gene back up we lost the back half of your conversation listen, i understand that market cap comparisons are bogus in many ways. this is television but it's kind of fun to picture how big it's getting to sara's point, is there a time -- i'm old enough to remember microsoft in 1998. is there a time in which the government is like, you no he what you just too big your app store is too powerful we're coming in hot? >> yeah. they're going to have the success of other large tech companies. they're in that same group i believe that ultimately when you look at the substance, this is the most important part about this regulation theme. the substance of what aprple is

doing is not taking advantage of the platform i think they have full right to exercise their business model around whether it's the app store. even even if it you take the worst case scenario here let's just go the avenue -- by the way this is going to take years to figure itself out with epic games and apple and let's take the worst case scenario there is some sort of change that regulators do push on to apple. i think even in that case, it's going to be fractional our best guess is that 20% hit to apple's app store is 3% to the overall business in thars can have an impact on the multiple i think that investors focus on this regulatory risky think is misguided. i think what ultimately is going on is topical to talk about. because of epic games. what more important is where april sl going i don't know if you caught the substance of where i was taking this this can still be a much bigger

company. i think investors as they progressively view this hardware/software combination as a favorable, it should have a premium multiple versus always s historically trading to a discount yes, there is regulatory out there i don't think it will impact the business longer term. and still feel very optimistic about where this company can be in the future. >> james joins us from clockwise capital too. argue in part the other side you've been bullish. i think you still own the stock. but you're saying it's fully you'd. are you worried about the regulatory headwinds >> not so much on the regulatory side but the valuation side. we run a really concentrated book it was 15% of our total portfolio. we paired that down to 1%. we're taking profits into the recent run but real i didn't think bull case that we have around apple was that everyone was talking

about iphone sales slowing we were of the school of thought that they didn't actually need to grow iphone unit sales for the stock to work. the second part is on the valuation rerating it higher as people got their heads around service ands wearables but we're thinking -- we see it more at that point right now we think the comics of the business and the sustainability of the economics is largely fairly valued. we do think that there could be a slight tail wind here as we look at 5-g phone sales. we think that the outperformance relative to other tech names is going to be diminishing. >> okay. he has a ton of respect for you. a slight tail wind on 5-g i think underappreciates the opportunity. this is a three year upgrade cycle for apple versus a typical one year upgrade cycle

>> completely agree. 5-g is a game changer. not just for apple but for the larger tech industry how much is multiple expansion they lead the stock appreciation from here relative to earnings growth we just think that it's going to fall more on earnings growth side rather than have the two pronged tail wind between multiple expansion and earnings growth look, gene, we're still 10% of our portfolio is within apple. so we're clearly very bullish. we're taking profits here. >> you heard both cases. sadly, we're out of time g debate thank you for joining us gene and james, thank you. appreciate it. palo alto earnings are out we want to get to the numbers now. josh >> sarah, sh they're reporting

q-4 of $1.48 revenue of $950 million billings clock in at $1.4 billion as for the forecast, guidance is looking for on the bottom line, $1.32. also revenue is above estimates, 915 and $925 million consensus closer to $901 million. there the street is at $1.04 billion. they announce an acquisition here acquiring a company and they say for $265 million this stock had been on a strong run heading intothis print up about 112% from the march lows back to you. >> big gain there. down after hours josh lipton, thank you very much investors are bracing for big dividend cuts in next he year.

we'll see how slashing dividends could affect the entire market you can always listen to us live on got from anywhere with the cnbc app this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change.

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stocks closing at record highs. both for the s&p 500 and nasdaq. let's go back to mike santoli taking a look at the outlook for dividends in particular. mike >> goldman sachs takes a look at the implied expectations for s&p 500 dividends based on the dividend swaps market. this is something that institutions can trade the expected dividend stream coming out of the s&p 500. the now look what happened this year the blue line is projections for 2020 the for the current year, it's about $58 a -- $56 and change actually $58 was last year's level. so already you're seeing basically a 5% expected decline and overall s&p 500 dividends. look what it was like back in if march at the lows of the market. this is not the deepest most liquid market. let's just say that right at the outset but it shows you that people were expecting devastation in terms of dividend. it's been much better than

feared you can absolutely say however, look at next year there is a little bit of an anomaly. earnings are expected to come back this market is saying that dividends are going to decline significantly further next year versus this year this market has it wrong they're thinking that rebounds back up towards last year's levels in which case you have a dividend yield and the s&p 500 around 1.7%. both on this year's and next year's numbers that's not particularly high in absolute terms but of course it does beat not only the ten year treasury yield lut bs the 30-year treasury yield at this point. it's not that much below, you know, investment grade corporate bonds. a little static in terms of expectations it does appear this market sees things a little more dire than maybe is reasonable at this point. >> interesting divergence there. mike, thank you. nc some economists can calling this a k shaped recovery. new hues are coupled why widening inequality across the u.s. in it an interview with abc

news, joe biden laying out some tax changes and proposals for individuals. listen >> i will raise taxes for anybody making over $400,000 let me tell you i'm going to do it its about time they start paying a fair share of the economic responsibility we have very wealthy should pay fair share. corporations should pay a fair share. the fact is corporations are making close to a trillion dollars and pay no tax at all. i'm not punishing anybody. this is about everybody paying their fair share >> so no new taxes $400,000. >> there is no need for any new. >> is it smart to tax businesses while you're trying to recover >> it's smart to tax businesses that are making excessive amounts of money and paying no taxes. >> joining us no you is penny pritzker s nice to see you again, madam

secretary. the follow up question there was actually pretty good from david asking is now the right time to raise corporate taxes? you are in the business world. you got a front row seat to hospitality and the pain and suffering there. corporations are not making record amounts like they were at this time last year. so what can they expect in the biden administration if he does win? >> sayer yashgs first of all, thank you for having me. i think joe biden glb for the economy and good for jobs and good for workers >> he'll be a good jobs president. we have to make sure we hand that will situation and get it under control. the second is he has a plan. plan not only will create growth but also will try to deal with our deficits and on the, you know, in terms of dealing with growth, he's got a plan to invest in our people

make sure that they have the skills for the 21st century jobs unovation. make sure that we're capable of competing in 5 g or artificial intelligence or quantum. and technologies, we need to win in as a country. he's going to make sure that we're investing in clean energy. that is the future of how we need to power our country. he's going to invest in manufacturing. we've ben losing manufacturing jobs we need to keep investing in manufacturing, making sure we're making key products in the united states and also invest in health care. as it relates to taxes, as vice president biden said, he'll raise taxes on people earning over $400,000. people like me who need to pay, you know, our fair share but he's going to create an environment where companies and workers consider thrive. there will be more certainty there will be greater opportunity. you know, people like me who run

businesses, we make ib vestments. we hire more people when we're confident about what is coming in the future. the chaos that we've been dealing with over the last, you know, 3 1/2 years, has been really disruptive to our ability to hire and to grow. >> well, let's talk about the certainty on the coronavirus which is the most pressing issue for the economy. obviously for business and for the entire country of vice president biden did lay out a strategy aside from the national mask mandate, hard to tell how different it would really look "wall street journal" editorial board did put out a me too strategy what do you think will be the biggest difference in terms of the biden administration fighting coronavirus >> imagine the situation, sara, that we're in today. we were six or seven months at a munn m minimum into this. we have no national testing plan can you imagine? we're expecting each state to deal it with on its own.

we still don't have sufficient ppe. i mean those are things that vice president biden when he becomes president will deal with make sure we're procuring all the things that we need in order to be -- in order to control the virus and i have confidence in the team that he will put together to make sure once we have a vaccine that it's distributed in an efficient and effective manner one of the challenges that i don't really understand as a business person is, you know, this belief that donald trump is better for our economy i mean, there are a lot more rhetoric than there is reality or results in what he said and that's confusing to me he promised us job growth. he's created fewer jobs than were created during the last three years of the obama administration he promises 4% gdp growth.

we've had, you no he, less than 2.5% gdp growth before the virus. he promised us more manufacturing jobs frankly, even before the virus, that sector was contracting to the lowest levels since 2009 he promised us record breaking foreign direct investment and that is the lowest level in a decade i'm suffering to understand why people don't get the fact what joe biden wants to do for all of us whether you're working or in business is to make the investments that are necessary and create the certainty necessary that we can be -- you know, our economy can grow and thrive >> madam secretary i want to jump in. you talk about the investments that's understood. when you look at the actual tax data, only about 2.5% of tax filers filed over 400,000

corporate income taxes those are important sources. i get that not minimizing that. but federal income taxes, effective income taxes have fallen by dramatic amounts since 1980 that is the secret that you know and politicians know that nobody will say is that the middle class tax rate has gone down as well dramatically. with the deficit that's we have run up both parties have run up, do we need a middle class tax hike through a vat or some other end around that is not directly income tax >> that's not the plan that joe biden has proffered. unstead, it's a plan that has a more reasonable rates as it relates to, you know, corporations and to individuals like myself. and frankly, i think it will encourage growth and investment in our country >> you asked, madam secretary --

sorry, didn't mean to cut you off. >> i'm really convinced that joe biden will be a good jobs president and create the kind of certainty that i'd like to see so i can continue to make investments in our country as a business leader. >> you were asking, you were saying you were confused about the around why sometimes president trump gets credit on the economy and in polls gets higher marks on the economy than vice president biden one of the reasons might be the fact that biden is talking about higher taxes to begin with at a time when we have millions of americans unemployed i know he's not talking about it on that income group but higher taxes on businesses that need to hire back the workers and trump talks about lower taxes and stimulating growth the other thing i want to bring up which plenty of wall street ceos toward joe biden. there is this lingering question about how much influence a bernie sanders or elizabeth

warren would have in a biden administration in terms of pushing policies, taking administration roles and there are question marks there about what that would actually mean for stimulating growth in the economy. >> one of the things that way have as a tale two of economies. we have to recognize that the lower paid workers have lost their jobs at three times the rate as a higher paid worker in this country so we need to get those folks back to work we are consumer driven economy the nine million workers in this country, you know, we have about 10 million workers that are unemployed and we need to get the folks back so many of them also that have been brute back to work have had to take pay cuts none of that is good for our economy. on that respect, i think that the plan that vice president biden puts forward is prudent and makes sense. as it relates to the influences

on his plans, you know, vice president biden's been very clear. he is very reasonable. he's been extremely clear about what he wants to accomplish as it relates to the economy. and he has made room in his -- it's a big tent in the democratic party to include everyone that doesn't mean he is vulnerable to ideas he accident believe are going to help our economy grow and help put americans back to work i think that's why joe biden will be a good jobs president and good for our economy as do so many -- as does ubs they recently came out and said they thought joe biden would be good for the economy i think that this is a solid plan that's been put forward and one that will get carried out. >> thank you so much for joining us good to see you. >> thank you

coming up, movie theaters are reopening. early numbers look pmingrosi we'll look at what that can mean for the economic recovery right here on "closing bell" when we come back. now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.

all right. welcome back time now for a cnbc news update. let's get more of the national head with sue herrera. >> here's what's happening at this hour, everyone. in northern california, firefighters battling three huge wildfires are getting a bit of help from the weather. higher humidity and lack of new lightning strikes. forestry officials report going progress against the blazes even as nearly a quarter of a million people remain under evacuation orders wisconsin is deploying the national guard to support law enforcement in wisconsin this is a day after police shot a black man in the back sparking violent protests county officials have announced an 8:00 p.m. kem curfew the ga yaz strip is going into a lockdown as they announce

the first confirmed coronavirus cases outside of quarantined areas. and sprinting legend bolt is self isolating after getting tested for covid-19. just this weekend, bolt held a surprise birthday party with a number of star athletes in attendance bolt says he has no symptoms and is awaiting his test results you are up to date that is the news update this aur. sara, back to you. >> sue, thank you. a record setting day on wall street and a ramp into the close. the dow closed up 378 points plus, experts say the white house's emergency approval of a blood plasma tleemereatment isnt necessarily a home run we'll talk to a top colombia whiversity doctor what b. at he has seen in practicing medicine against the coronavirus.

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union. basically they're saying we're still overstaffed. sf despite people taking the early package, this is going to see what happens from here still no final number on how many pilots may be furloughed. back to you. >> he does it change if they get more stimulus money? i know there a huge stalemate on that right now >> yes cares act two is specific to job payroll money. that's it. $25 billion it would lock in all airline jobs being paid through the end of march >> perhaps more incentive for congress to get a deal done there. still ahead, we're going to discuss the fda approval for a plasma treatment for the voen and push for a vaccine before election day dr. craig spencer joins us next. stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more.

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and xfinity is your home for the return of live sports. all right. up next, we will talk about the fda's authorization to use plasma to treat coronavirus with a doctor who had ebola and treated with the convalescent plasma, and we will get his take on then new announcement next. liberty mutual customizes your car insurance,

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i'm a sustainability science researcher at amazon. climate change is the fight of our generation. the biggest obstacle right now is that we're running out of time. amazon now has a goal to be net zero carbon by 2040. we don't really know exactly how we are going to get there. it's going to be pretty hard. but one way or another we're going to reduce our carbon footprint to net zero. i want my son to know that i tried my hardest to make things better for his generation.

welcome back. with the fda issuing a emergency use authorization for doctors use blood plasma from those recovering from the disease, but experts are pushing back saying that random controlled data is needed to know whether the treatment is safe and effective and needed. joining us is dr. craig spencer at new york presbyterian columbia hospital. thank you for joining us on cnbc, and is that because the very sick will receive the treatment, and may skew the results and so we may not know if it is an effective treatment or something else? >> well, to date, nearly 100,000 people have received this

treatment. i don't know that there is going to be any significant difference of the announcement in terms of people who receive it, because it is used broadly, but we don't have the good data to show whether or not it works. it is used as the expanded use program, but we don't have the good randomized clinical trials to know whether it is safe and effective. plasma has been used for over a century for things line diphtheria and measles and i got it as well for ebola, and we know it works for some things, and proven to be relatively safe. i have problems with it, and other people have s and it is not completely innocuous, and so it is important to walk into decision, we are prioritizing the public health and the science over the political prerogative. >> yeah. and i wanted to ask you a separate question, doctor, before sarah jumps in, because i know how is it going to gain steam in this hong kong reinfection and a gentleman reinfected with covid and what we fear. so is there a way in which this

is good news and i will tell you why, because as you know, and again, if this is wrong, please let us know, because it is going to be cycled as bad news, but isn't this how the body is supposed to react, because the gentleman did not get symptoms, and maybe it points to some kind of greater immunity or the resistance to it the second time around. >> that is a really great question, and it is important that you are right it is going to be framed as something skaerry, and askaecary and even all of the people who were infected here in new york city where i took care of them will be afraid to get infected again, but all of the immunologists know this is how the body is to work. we knew that immunity is not guaranteed and previous sars and other coronavirus viruses show 3 or 6 or 12 months protection, but what this is showing is that the gentleman infect and then four months later infected with a different variant of the virus. as you pointed out, he did not have symptoms the second time,

and having symptoms the first time and even if it did not prevent him from being reinfected, it did prevent him from having a serious illness. >> and we lost the shot of dr. spencer, and we thank dr. craig spencer. and for a time, the brian, and always for insight. that is huge factor that there is a huge that we don't know. and dr. spencer is back. in the final minutes that we are back, i wanted to quickly, and i wanted to quickly button up the conversation on the plasma, because a lot of people pay attention to the news, and it is helping with consumer confidence and helped with the stock rally and everything from airlines to cruise lines and have you used it on covid-19 patients in the emergency room, and as e.r. doctor, don't you want more emergency use authorization for anything that has a hint of working so that we can try it and in real time and we are in a

pandemic >> absolutely. that is the important question. yeah, we want everything that we can, and that we know is going to be helpful. what we saw however with the previous eau for hydroxychloroquine is that even though we knew that there was not evidence to support the use and well after there was not evidence, it continued the be used and part of clinical trials. what that does is to eat up the attention and the research from other medications and other therapeutics that could be used at the same time and studied, so yes, we want access to everything that works, but we can't just hope and make pronouncements and announcements about things, and hope they are going to work. we need good, solid strong scientific databased on things like randomized controlled studies before we go ahead to make the declarations about this being a game-changer. >> yeah, waiting on the late stage studies for the antibodies in particular. thank you.

>> thank you. >> just wrapping it up, brian, and we have a record close for the s&p 500 and the nasdaq, and mike, i was going to turn to you that we have the jackson hole, and the apple stock split and apple and tesla story? >> well, it could be because they both fell near the highs and looking at the housing data for the wrinkle on the overall economy. >> all right. that is going to do it for us here on "closing bell. "fast money" begins right now. thank you. i'm melissa lee and this is fast money, and the lineup is guy adami and karen and the rest of the panel. now, bracing for a one-two punch, we are looking at two storms in the gulf of mexico. and building gains