going in steven joining us from jeffries, sales, over $2 million. >> astounding up 22, 23% today alone and it's not even in the dow yet. >> who would have thought its big pop would come the day after. >> exactly kelly, great to be with you. thanks, everybody, for watching "power lunch." "closing bell" right now. >> thank you, kelly and tyler and welcome everyone to "closing bell," i'm sara eisen with kayla tausche today in for wilfred frost. a quiet day, the dow up 30 points or so nasdaq surging on a new record let's look at what's driving the action with one hour in trade. netflix up, salesforce up 25%. an incredible move for that stock. adobe, facebook rallying as well promising news on covid front,

as well as declines in cases across the u.s. not just big tech winners, jaw-dropping moves for individual stocks. roku up 11%. dick's sporting goods up 15. urban outfitters up 20 we've got them all covered for you. 59 minutes left, what is set to be another record close for s&p and nasdaq all we need is a positive finish kayla, welcome. >> thank you, sara thank you for having me. feels like record finishes every senile day we have a great lineup of ceo interviews coming your way on the rest of the show we'll me with the head of toll brothers about his company's strong earnings results and whether the housing market can keep topping expectations over and over again plus shares of crocs you heard me up. up 300% just since march we will ask that company's ceo what is driving the foam footwear boom. and also the ceo of etsy says amazon is trying to wipe out its competition by supporting a new california

consumer protection bill he will join us to discuss that and much more. it's a big show today. but let's get straight to the big story we're watching today mike santoli tracking market action ylan has the latest. leslie has a look inside palan-tiers. and the unusual structure. starting with the broader market, what we're seeing. are we broken records talking about the tech divergence yet again. >> broken record talking about breaking records, we kind of are but thais the way it happens these things come in streaks and burnells actually when you get to a record high on a given day the most likely scenario under the circumstances one the next day because the market goes up over time that being said, you did say the broad market, this is a very broad market dow jones toemgts stock market, wilshire 5,000 index i wanted to point out, it is at a new high yes, by far the scene stealing action is in the huge nasdaq

stocks, the big tech stocks, salesforce, new york stock exchange, not nasdaq nonetheless, it's pulling everything else with it. most stocks, even if they are not up today, are going more or less in the right direction wit. this is obviously a pretty steep angle for the entire stock market to be traveling for a while. it is growing in certain ways, emotional gravity action in fast-moving tech stocks. but it's hard to say right now today that things have gotten fully to an overheated extreme take a look at s&p 500 and a measure of momentum, a measure of the trend relative strength index. shows you how far and fast it's moving this is coming into today. this going to be high right now. i just want to point out at the upper end of the range we get right here doesn't mean the market pulls back hard or false apart when we get to these levels but it does suggest that the fastest, greatest part of the move might be done. i do want to point out we hung around there in the gentle

uptrend. if you get a little higher, by the way, the nasdaq is way off the charts on this measure, then you tend to become very vulnerable to a pullback if nothing else these are the things we have to watch along with senate measures to say if people are getting a little bit too overconfident in the market back to you guys. >> there's some strategists that say the market could lose steam later this year potentially around the election. what does the market's breadth tell you about how much room to run p at what point do you think that pullback you just cited could present itself. >> kelly, it's totally logical to expect sometime between now and the election to have more turbulence it is the pattern in election years, presidential election years. you tend not to have great forward returns starting in late summer also when you finish august at a record high, september is often a giveback month all that stuff makes sense what is interesting is the options markets have been pricing in volatility around the

election, four months. there's this sort of bulge in buying of insurance around that date so i don't know if that means people have kind of felt protected against it or just that they have stayed more defensive in their equity exposures because they think that might be coming, which interestingly enough has probably created fuel for this market to go up in the interim because people were not overinvolved in the first place. the breadth is not great but i would say it's not a deal breaker in terms of the rally continuing. >> all right, mike, thank you. president trump meeting this hour with medical professionals to discuss the coronavirus this as we get new results from latest states of play survey regarding how americans are feeling about returning to some sense of normalcy. ylan mui with the details. ylan. >> i'm told a private meeting with medical experts, it's taking place inside the oval office while in the battleground states our polling shows voter anxiety about the pandemic is beginning to ease. according to our polling with

change research of likely voters across battleground states, 66% say they have serious concerns about covid. that is actually down from a high of 87% in april when we were all still on lockdown and the numbers are falling in both the rust belt and sunbelt. as a result we see likely voters more willing to start engaging in the economy shopping, getting your hair or nails done, eating inside at a restaurant or going to a movie theater. voters told us they feel safer doing these activities than they have at any time since may that could be driving the bounce in our poll for president trump. 48% now say they approve of his job performance. 47% give him a thumbs-up on the job market guys, when you look at a head-to-head matchup between president trump and the democratic presidential nominee joe biden, trump is still trailing by three points back over to you. >> all right, ylan thank you. i know we'll be following that

closely in the months to come. let's turn to palan-tier, the company going public last night and outlining an unusual share structure in its s1. leslie picker has the details. leslie, how does this all break down >> hey, kaley, going public with class affirm, class b and class f stock. before you let your mind wander, the f stands for that. they pair back economic ownership. it takes several pages of explanation in the prospectus but essentially class f has a variable number of votes which adjusts to ensure those three founders maintain 49.99999% voting control now, that's right. either below majority control but the founders plus venture backers also hold class b shares which command 10 votes each. the class a stock that you as

the public market investor can buy comes with only one vote per share. it's not uncommon for them to go public with put pell classes of shares quicken rocket debuted earlier this year with four classes of stock. snap went public three years ago giving its shareholders no vetting rights palantir's f shares makes this one unique, guys. >> leslie, stay right there. we want to bring in mike santoli for some perspective on this, mike what do individual investors need to know about this unusual voting structure >> first of all, you need to know up front you're not going to have a lot of say in what the company does we do have to keep in mind this market hasn't imposed any penalty you can observe or measure on companies that maintained founder control actually more of them 49 something percent found ir control. if you look at alphabet, facebook, not as it's straining the valuations of the companies.

i'm not surprised these founders would try to do it and try to push that extra step of having this provision stay in there no matter how big their financial stake is i don't know that necessarily individual investors are going to have it be an overriding concern whether they own a piece of the business if, in fact, they love the business really, i don't think individuals think that much about the value of their vote in actually operating the company >> but you know, leslie, it's not all together uncommon for large tech companies to have these voting control shares for the founders but i think what's so ironic about palantir doing it, the s1 starts off with this letter essentially railing against silicon valley and saying we don't have that much in common with tech brethren, don't like the direction they are taking our companies, find ourselves at odds with them but renewsing to structure shares in the way

other companies had to contain voting control for these very founders. >> that's right. a lot of people pointing to the irony of that and the fact that from a governing standpoint this looks a lot like the other technology ipos we've seen in the last few years with regard to voting control. i think perhaps the antidote to mike's point is the idea that we have seen such a huge influx of capital into esg funds, environmental social governance. so investors say esg, the g being governance, has become increasingly important to them when you look what's going on with governance of companiesou of silicon, going public with multiple shares, giving investors little say in how the company is run, it will be interesting to see how that plays out alongside these esg concerns and whether each individual side winds up caving based on fiduciary duty and so forth. that will be something to watch over the next few years. >> yeah, and where that even fits in with esg priorities.

>> exactly. >> governance versus environmental concerns leslie, thank you. very interesting leslie picker. still ahead the e-commerce war of words mpt don't miss exclusive interview ceo of etsy following his comment that amazon is, quote, taking bold steps to wipe out its competitors by supporting a new california consumer protection bill you're watching "closing bell" here on cnbc ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

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47 minutes left of trading welcome back, everyone hurricane laura is gaining strength in the gulf of mexico, expected to make landfall on the texas and louisiana coast this evening. it was just upgraded to an extremely dangerous cat four storm. brian sullivan has a look at the potential fallout for energy companies in the region. brian, how big of a threat is this for u.s. output. >> well, it's a big threat but also a big storm that map was terrifying, takes up about half the gulf of mexico let's get the latest on the oil and gas story. as you can imagine, i'm not

breaking any news here every refinery in its path is shut down or shutting down 48% offline, 2.5 million barrels of capacity that has been cut as well that will probably go up a lot of these companies, guys, are tight-lipped about the refineries status. they don't want you no you've got to make calls, whatever it might be gasoline futures are lower, which is a little weird but i'll get to the reasons in a second companies, exxonmobil shutting down at least two refineries, biggest refinery shut down, valero, shell, they are all there. that beaumont area lake charles, that's going to be the center of the storm. kind of where the m in beaumont would be, thais the direct path. you can see there, that's the really hard hit area there is a few reason why gasoline is down right now

one, gasoline inventories are higher than last year and can absorb some hit to production for a while. number two, you've got refineries that are staying open only running at 80% capacity they can make up some of the slack, guys. of course, demand will drop as people stay home because of the storms first, all the ports are closed, galveston, port arthur, et cetera, so all the ships are stuck. check out this from marine.com that is amazing. the dots, red, blue, green, those are ships. if you are not in port, you have scurried over to corpus christi or the coast of mexico because laura is coming right through. hundreds or thousands of ships all running away i think that, kayla, and sara, is an in verse map of that storm's path it's incredible there. >> brian, one interesting thing here normally when you have this type of dislocation in the energy

market, you see images of people lining up to fill up their cars with gasoline around the block for miles and miles. because people aren't going anywhere, used to hunkering d n down is that a silver lining, they wouldn't be hit if they were trying to get somewhere with sky prices as energy goes offline. >> that's true it's not just driving but also jet fuel we forget 35% or so of all refined gasoline products is used for air travel. air travel is one-third, if that, of what it was you've got all this excess refining capacity, inventories for oil and gasoline are pretty high to your point, we're not driving certainly as much. in the next week, not a lot of people, except emergency crews and first responders and cleanup crews are going to be doing a lot of driving in the next couple of days in those areas, kayla. you put that in perspective and it's why we're seeing commodity

futures down but also some stocks down as well. the refineries have had a terrible year anyway by the way, 2020 has been a terrible year in every way >> yeah. i don't know how many people had a category 4 hurricane on their bingo card, brian. we'll come back to you as the situation develops thanks for bringing that to us not surprising to hear that energy is the worst performing sector today the overall s&p 500 setting another intraday record with tech continuing to lead the way. joining us now with his market outlook is sebastian page, head of global multiasset at t. rowe price. he manages target date strategies sebastian, just tell us first what you think the hurricane could be to the overall market clearly the energy sector is moving but it comes at a time when the overall economy, data starting to look better, coronavirus case counts starting to look better could this be a fly in that

ointment >> i don't think it will be. it will impact energy directly, destroy some demand in the short-term but you're essentially asking a broader question, which is stocks appear to be somewhat divorced from the real economy at the moment think of 2020 we are going to -- we can estimate earnings down about 23%, gdp down 8%, 20 million unemployed and stocks up 55% from the bottom. the key is, though, that stock anticipate future earnings and future conditions. so this is what's going on again, i don't think that the hurricane itself is a major event for the stock market i'm thinking more broadly that stocks are fairly valued at the moment. >> so which direction do you think they will go if they are fairly valued right now, do you think they still have room to go up, or do you think they are due for a pullback at this point

>> stocks have room to continue to go up if you take 16 to 18 month horizon. we're asset allocators, so everything is relative we have to look at the opportunity stocks relative to bonds, for example when i say stocks are fairly valued, they have room to go up, probably not double digit. but relative to bonds, i look at the yield on the barclays global this morning it's 90 basis points, nominal. so we're thinking in relative terms. if we look at the earnings yield on stocks, which is very hard to estimate, but if we kind of move forward 2021, 2022, compare that to the bond yield, and we find that stock, despite reaching new highs, are not that expensive from that lens. >> how do you explain a day like today? is that what's happening, people having this realization? you have netflix up 10%, facebook up 7%, the software names are flying over salesforce

a lot of these companies are having huge moves off no news. it can't be a bunch of analysts playing catchup with price targets, what's going on >> today feels like a covid on kind of day. think of it as the paranoid rally, the liquidity, the infusion of stimulus we've had stimulus -- if i look at the high range estimates, $24 trillion the size of the total global market, total stock market is $48 trillion so about half of the size of the total market cap out there that has created in part the rally in stocks, together with bringing rates down 150 basis points so today is a continuation of that paranoid rally, yif you will, people seek big tech platform, the big growers, the companies that are weathering the covid on environment quite well now, what we're watching very

closely in this environment is the potential for a rotation between those growth stocks and the value stocks >> we'll see if and when that happens. we've been hearing it could happen for quite sometime, sebastien. obviously today is not that day. we appreciate your thoughts, sebastien page with t. rowe price. with 39 minutes before the closing bell, the dow is up marginally, a third of 1%, s&p up about 1%. after the break, there's a new spac man in town, gary coen launching a blank eck chcompany. is it wise to invest in this growing trend? in the s&p 500,panies 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

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rolls on trump economic adviser gary cohn teaming up with investor seeking

$60 million for ipo blank acquisition company. the latest high-profile name to join in on this frenzy bill ackman, billy beane, cliff robbins, some big names. draftkings and nikola, just a few companies brought to market via spac, foregoing traditional ipo. mike santoli, traditional investors, is this a warning sign like the open rush in the 2000s or a chance to get in early on high-growth companies >> it's probably some of each. you obviously see the fact there's a market for these companies shows there's a willingness to believe, a little more speculative age to the investme menment environment rit now, doesn't go too far and take them in a reckless direction we just came out of this period where there were a lot of complaints about too many companies private zo long, fast

growing company evaluations, no access for a person in public markets. there is opportunity, hang out a shingle, get into a spac vehicle and see what deals can i sniff out over the next couple of years. you have to weigh one against the other. i do think it's one of those things there is an element of a better mouse trap involved there's protections for investors within some of these structures it's not as if you're giving cash over, no strings attached, in way to get out of your cost of course they have to put it to work in a business you have a chance to vote whether you want to participate then after. so i do think also the idea that private companies find it more efficient is probably both good and bad because they may be sort of implicitly paying something for that efficiency when they go this route as opposed to seeing what the market will give them in an ipo. >> mike, i feel like they get some heat and they get some criticism for the whole blank

check notion, come invest with me, i'm famous i have a good track record i promise we'll do something good that sort of buries the fact there is some opportunity here for investors to get in perhaps earlier than they would with those private companies staying private for so long. did you see there was another spac announced today, desktop metal, 3d printing industrial parts, going through a measure with trine, the blank check company. it has really famous investe, kleiner, ford, google, ventures, bill miller, they have seen tremendous demand of this is going to go public, mike, and offer investors a way, essentially, to get in on a company that does 3d printing for small parts. it's already being used with ford and bmw and other partnerships so there's some exciting technology here to talk about, even though it is an unconventional way of doing

things and perhaps raises a lot of eyebrows. >> not necessarily like private equity or family office that raised a bunch of money and going out to find a company. there are new opportunities. you can sort of say, have these anchor investors have an incentive to have this work, good track record of finding decent opportunities i do think you have to ask the question whether it's become a little bit trendy for these private companies to go this route as opposed to an ipo and costs and benefits of that there's definitely silicon valley sense that we don't want to leave any slice for the wall street middleman, investment bankers that control this process or still do in many cases. i'm not sure that's necessarily unequivocally the right thing to determine if this is the better way to go. >> we're heard from years from private -- >> mike, we've heard for years

private equity firms have so much dry powder and things too highly valued and can't find enough good companies to invest in i'm wondering what the likelihood there's so many spacs and not enough high-quality, low value companies for these spacs to invest in what are the requirements they spend investors money and not return it after a couple of years if they come up empty. >> i think that's one distinction between private equity, which, remember, is going to find a company that can sustain a lot of debt and therefore has cash flow already and likely can be resold along the way, pay down the debt and have the return be decent for private equity sponsor that's not an early stage company or growth phase company where they are reinvesting it's a little more hybrid of private equity and venture by the way, that means a lot of companies are going to be a lot of promise and no proof, and they are not going to work so i think that's where you can have a little bit of a different hunting ground between some of

these spacs and private equity. >> plus, who wants to do a zoom road show. >> that's right. >> mike, thank you we'll see you in just a moment time now to get a daily coronavirus update the u.s. has now surpassed 180,000 deaths that's according to the latest nbc news tuews talley cases ticking up, but trending lower as a whole cdc saying people without symptoms may not need to be tested even if they have been exposed. health experts are pushing back. however, saying that asymptomatic people do contribute to the spread here and testing them helps guide the targeted response. and moderna saying today its coronavirus vaccine showed promising results in the small early stage trial of elderly patients the vaccine was tested on 10 adults between the age of 56 and 0 -- 70. neutralizing antibodies and t

chelsea, which was go-- t-cells which was good news. >> now an update with sue herera good to see you. >> good to see you here is what's happening at this hour justice department wants department from new york, new jersey, michigan, states it said required nursing homes to admit covid-19 patients erlt in the pandemic possibly leading to thousands of deaths. the information will be used in order to possibly start civil rights investigations. john bel edwards telling residents to evacuate now to avoid what forecasters are calling an unsurvivable storm surge as hurricane laura, a category 4 storm, comes ashore tonight. in tokyo, here is a new high-tech public toilet with transparent walls to reassure perspective patrons they will not find a mess inside

the glass, however, luckily turns opaque once the door is locked from the inside strange times. sara, i'll send it back to you. >> it did turn opaque, i thought. >> it did, thank god. >> sue, thank you. still ahead, the nasdaq surging to another record today. facebook, alphabet, microsoft, they are all hitting new highs but should you ride the wave or take some profits here we're going to ask investor dan niles for his long appear short list as we head to break, a quick check on bonds yields are higher again today. we've seen this throughout the week higher stock prices and higher treasury yields as discussions focuses around jay powell's speech at jackson hole tomorrow where he's likely expected to talk about higher levels of inflation, also dumping safe havens for riskier stocks. we'll be right back. traded goods.

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on wall street the dow giving up some of its gains, up 62 points, s&p up 32 points, nasdaq up 176, up nearly 2%, the s&p 500 and nasdaq on set for another record close up next to the foam footwear frenzy shares of croc up nearly 300% from their march lows. we'll ask the mpy'coans ceo what's behind that strength up next [sniffing] is the salmon wild-caught? she only eats wild caught.

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welcome back dow up 78 points shares of crocs have been an under the radar winner during this pandemic soaring nearly 270% since the march lows, easily beating out nike, skechers as consumer turn to comfort during the stay-at-home era. joining us now for an exclusive interview is the ceo, crocs ceo and president andrew rees. andrew, thank you for joining us what is driving this boom in business >> my pleasure, happy to be here i think one of the things is exactly what you said, comfort three things i think we're incredibly well positioned as a brand. the consumer is looking for comfort, value, easy on and off and looking for a shoe that can be fun and personalized. one of the fantastic thing we do is personalize using little

things i stick in the shoes called jibbetts. one thing we did was reach out and support frontline health care workers we gave 680,000 mares of shoes, retail of $40 million for frontline health care workers. we had them come to the website to do that, so we captured e-mail addresses we created a great deal with that we felt good about what it did and also the impact on the company. >> i think a lot of people can relate to the comfort thing. i haven't taken off sweatpants since march. value and practicality as far as fashion, andrew, but what happens when we do go back to normal, there is a vaccine around the corner and states push on the reopening front? >> yeah, i think -- i don't think that by any means represents an end of our

relevance. we've really been rebuilding the brand relevance over a good number of years now with strong collaborations we do with other brands, marketing outreach to consumers. i think this has been a recent acceleration of a trajectory but we had an incredibly strong year last year and really putting building blocks in place in terms of product marketing and how we go to market and how we partner with our different wholesale partners and reach our consumers and putting building blocks in place for sometime i think this is a time that was really good for our brand and for everything that we stand for but i think there are lots of opportunities in the future and we're very confident about the long-term future of crocs frankly on a global basis. we do more business outside the united states than we do inside the united states. >> andrew, who do you see as the average crocs wearer in this day and age? crocs have been around for a long time. at one point they were synonymous with mario vitali, the disgraced chef now so many options, a number of

companies shouting at them on social media and in direct mail. how do you find that consumer and who is he or she in the year 2020 >> so it's incredibly diverse, which is frankly one of the real strengths of the brand we sell to a lot of different people we sell to men, women, and kids and relatively balanced across those three populations. we're also demographically diverse. so some people it's an aspiration purchase, it's a great value. they can get a shoe for $45 that can last them a long time. some people with enormous means, it's just something they are attracted to it's diverse i would say recently, we've really been tapping into very effectively to that teenager explorer we call it teenager explorer she's in high school, she's in college, she's very active on social mediaened a she's been very attracted to the brand. she's attracted to the color, the personalization options we

offer and that's been a big growth vehicle for us in the united states and across the world. >> andrew, we have to talk about the collaborations i've seen some of them, they are insane like kfc, which sold out in an hour, the peeps. how do you pick these brands to partner with and artists to partner with how are you driving such strong interest i saw crocs on stocks x, the secondhand retailer that usually deals with jordans, hard to come by. >> you want back four or five years ago and you would not find a single pair on stock x you look today and you'll find multiple pair. the power and collaborations is a diversity. you highlighted some of the diversity right there, everything from kfc to post-maloney to luke combs to a recent one that we just launched, which is a three-way,

so it's with us, with chinatown market and the grateful dead so that's sold out in frankly minutes on chinatown market site we'll be selling that shoe next week, in fact. it's the diversity and the variety of people we collaborate and the creative you just look at them, they are wildly creative, appropriate for the brands we're collaborating with that's the testament, core classic clog, and it's a blank canvas we can do many, many things with the blank canvas and the creative has been outstanding. >> if you zoom out on your chart, we've talked a lot about the recent boom. it seems like a wild ride for investors. personal those early days, back to ipo, 2006, 2007, you have yet to reclaim that glory. how do you convince long-term investors who might be skeptical and lost money after sticking with the ipo that it's not a fad and you can sustain the level of

business >> that is probably our number one challenge as it's exists today. if you look at the trajectory of the company and the trajectory of the stock since it ipo'd, it's been through a couple of significant cycles we're now on a very strong upward cycle and i personally believe this is really, really different to the historic cycles we've got the real fundamentals and foundation in place, clear product strategy, marketing strategy, strong distribution, very strong digital distribution during q2. over 56% of our products were purchased digitally so either through our own e-commerce site or through large global marketplaces, ameazon, et ceter. we've been building that direction strategies is definitely where the customer is going. i think we are very, very confident as a management team and a company that we can ten to

build this brand, make it increasingly relevant for the long-term which will yield significant returns for investors. >> andrew rees, thank you for joining us. >> my pleasure thank you for having me. >> appreciate it ceo of crocs after the break, dib's sporting goods hits a home run and salesforce hits a record of its own ahead of the dow duteb inside the market zone dow up 47, 15 minutes left of trade ♪ 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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so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. trading day. we are now in the closing bell market zone, commercial-free coverage of all the action going into the close cnbc market commentator mike santoli here as always to break down the trading day also ceo keith bliss here. welcome, keith we'll kick it off with the broader market all averages rallying. on track for another record close, nasdaq having its best daily performance in two weeks, mike it's led by software with 26% move higher right now. but not just sales force, netflix up 11.5%, adobe up 8.5%.

facebook up 8% this is one of those days where the winners are getting much larger. >> exactly so it's all the kind of anointed, acclaimed leaders of their respective businesses that are getting owned today. there's definitely, as i said before, a little bit of a chase apparent in that part of the market s&p outside of technology is red on the day that would include things like communication services, just not pure technology. so a little uneven but very, very difficult to call an end to the phase where people have an unending appetite for revaluing great businesses higher. really, it's interesting because as we've been talking about quite a bit, the sell side has been a little bit left in the dust here. they have had to find reasons to raise price targets and ratings on these companies because the market itself has carried them so high.

>> mike, interestingly about today's trade, stocks going up at the same time yields in the treasury market are hiltting levels they haven't seen in the last two weeks or so economic getting better, stock market gains would start to crater a little bit. but today's trade doesn't really support that thesis. why not? >> not really. yields have kind of held up here a little bit although below recent highs i think the bond market is very much in the sway of whatever jay powell has to say, broader mental from the fed, 0, 0, 0 on the short end of the curve for a very, very long period of time there's that anchor. i do think strength in the stock market sometimes will get a lot of selling in bonds but that's not going on right now durable goods, good upside surprise it works against weakness in consumer and labor market measures i think the market is willing to try and look through this soft patch if that's what we're in in august to say in general we have

a recovery dynamic in place. >> yeah, durable goods surprisingly strong, really shows that manufacturing and factories are going to help us in this economy and recovery better than expected keith, you've been bullish, give you credit on that what are you doing right now. >> i'm sticking with the theme i have a bullish bent, sticking to the thesis, rates being one, inflation being one of them. i'm really curious to see what jay powell and everybody has to say in jackson hole. i think you stick with your knitting here. one troubling sign, you look at all this euphoria around nasdaq, starting to shift away from traditional faang stocks, software, cloud-based names, starting to take some of the load, but still it's a pretty narrow rally, which is driving the broader markets. take a look at russell 2000, it's actually negative that's one of the things we really need to see strengthen

and start to catch up with the other indexes, because that certainly signifies what investors are thinking about the long-term health of the u.s. economy as opposed to just a very narrow slice of that economy, which is big tech. >> well, speaking of big tech, much of it led by salesforce surging today, crushing earnings expectations and guidance. ceo reflected on the quarter on "mad money" last night. >> this has been such a challenging time for so many of us we realize with 54,000 employees working at home, with a raging pandemic, with this economic crisis, social justice crisis, with this environmental crisis, we have two changes. we could stay and do what we were doing, or we could change, we could evolve, we could shift, and we did. >> while famously tweeted a

pledge, quote, not to conduct any significant layoffs over the next 90 days, salesforce has reportedly notified some staff of job cuts. a salesforce spokesperson telling cnn in part reallocating resources to position the company for continued growth, this includes continuing to hire and redirecting some employees to fuel our strategic areas and eliminating some positions that no longer map to our business priorities mike, what does it tell you, though, when a company as big as salesforce with record earnings, stock surges 25% is also in the process of right sizing its business at a time like this it shows you nothing gold can stay >> apparently. i do think there's a hesitancy among leaders to get off that productivity treadmill they are looking for targeted restructures, certain parts of the business working better than others but yeah, the fact that you have a salesforce with pretty amazing

top line growth, and they have these huge market opportunities and tweaking the edges on the cost side. on one hand discipline or this effort to really get margins up. it's never been that profitable a company on an actual accounting basis it's all been about backlog and growth and market share. >> just an awkward time for that announcement with the stock up 26% today ahead of its dow entry. let's move onto dick's sporting goods, another big winner, one of the biggest on wall street after strong earnings. berta coombs h bertha coombs has the details. >> record sales and profits for dick's sporting goods. the company saying it was driven by 200% curb in e-commerce and curbside pickup. ceo said the pandemic has made people focus on being healthier, high demand and less supplies meant less discounting and

stronger margins that was driven by individual sports rather than school team gear and outdoor categories like kayaking, biking, and government dick's ceo said the trends will continue into the holidays, he thinks, because vendors are brag very cautious. they are making sure the market doesn't get flooded with products so that bodes well for sustaining margins not if you're looking for a bike, however. tight supplies. >> it's impossible to get a bike bertha, thank you. bertha coombs. mike, interesting these companies are doing so well. they have had good runs despite worries on wall street that the lack of team sports and all the head winds on back to school and running out of stimulus would hurt these retailers. >> yeah, a bit of a weird kind of upside dynamic that's happened in the last several months we had an economy very heavily skewed toward services and a retail world people saying about

experiences. we got into this moment you couldn't partake of the services travel and other experiences off limits but people had cash from the stimulus and they bought stuff. stuff includes cars, new and used, it includes sporting goods, it includes houses and appliances and all this other stuff. so it's interesting how we've had this real run on physical consumer goods at a time when we couldn't do services it makes me wonder if we get out of this period if there's any pent-up demand at all that you normally see after a recession or people are going to start to go out to eat and travel again >> right mike, a lot of things are things you buy every 10 years you don't get an appliance every year, what is -- >> laptops, if you want to go that far that's also been a big surge it's interesting there's nothing particularly textbook about the path of this recession and the early recovery period, at least not yet.

>> despite some states slowly reopening, wall street remains bullish on major stay-at-home players. city initiated roku on buy on account growth piper sandler initiated cheg overweight primary beneficiary. atlantic equities initiated shopify at overweight as e-commerce growth explodes that firm estimates shopify on track for $100 billion in gross merchandise volume this year all three stocks already up more than 100% since the market low in march so keith, have you thought the stay-at-home trade was over? it looks like it is here to stay, at least for now for how much longer, do you think? >> i think for a long time when you take a look at what's happening, even with some of the outbreaks of the pandemic start to the abate like sunbelt states starting to come in and certainly where i live in the northeast we've been at low points for a while what this six-month period has

shown is that we can operate and function almost normally by staying at home, and therefore we're going to utilize and consumer services that make our stay-at-home life easier and more comfortable roku was one of those. being able to shop online with a variety of retailers, not just big boys like amazon and walmart. that's where shopify comes into play you've got students. my wife is a school teacher in our town she'll be teaching at home at least until october 12th chegg, not only textbooks, they provide essential services for those students those are good places to keep going. even if they keep going, i think it also shows they have blown past analyst price targets. they are playing catchup two minutes left to go mike, what are you seeing in internals as we head for another record. >> a little mixed, sara, we keep talking about mostly big cap tech new york stock exchange, more

declining, both in the nasdaq and new york more stocks, individual tickers meaning down. it's not good breadth, invite more criticisms maybe it's too narrow another picture of that. the main nasdaq 100 qqq index on the day. it's way up ahead of equal weighted average stock in s&p 500 measured by rsp, slightly down in the day again, very lumpy performance. take a look at the volatility index. this was down earlier below 22 it's now popping seems as if the market has gotten jumpy here even if it is to the upside. sometimes it does feed through to a higher level of volatility, people paying more for options and bracing for a little more choppiness, guys. >> we are certainly watching that with a minute to go before the clothes. stocks steadily gained steam into the close, s&p and nasdaq near the highs, hovering there for most of the afternoon

session. looks like there will be another record close for the s&p 500 after notching several intraday trading records there, 36 s&p stocks have hit new intraday records today. the nasdaq is also on track to close for a higher fifth straight day the dow is less than 1% away from going positive year-to-date, communication services and tech the best performers, energy and utilities are the worst. there's the bell, sara send it over to you. >> another strzok close for the market, fifth day in a row we have seen a positive close s&p 500 at a new record high, nasdaq at a new record high. welcome back, everyone, if you are just joining us to closing bell i'm sara eisen with kayla tausche in for wilfred frost with mike santoli as always cnbc commentator. take a look at how we closed on wall street, dow up 84 points. microsoft biggest winner home depot trading at a new

all-time high. exxon and walgreens, biggest losers s&p up 1%, strong day for the s&p to close at a new record high, its 18th of 2020 communication service is the big winner salesforce the stock of the day, up 26.5% in the close. by far the biggest winner in the s&p. norwegian cruise the biggest loser. nasdaq a new record high as well, having its best day in week, up 1 3/4% thanks to technology boom which fueled this market higher it was tech and software following the salesforce quarter that blew away expectations and that big move. you had names like service now jumping along for the ride netfl netflix. facebook on the close. just to show you how lopsided the russell 2000 closed lower on the day, down .7%, financials, utilities, real estate and energy all getting hit

etsy ceo accusing amazon of trying to wipe out competitors with a consumer protection bill. why that could threaten small businesses. first to join us about the market, sara malik joins the conversation, head of global equity mike santoli, we'll turn it first to you on what was an incredible day for technology stocks which powered to new records purchase in fact, sara, acceleration to the upside and a lot of names already the biggest in the market and performed extremely well have you to ask the question if this is a little bit of excesses building up, people running hard for the same names, the public with the favorite in huge numbers, odds of winner when you bet on the favorite, go down that's the way it works in horse racing you just have to ask the question if the performance in the leading stocks is now starting to just get a little bit overdone that being said, the trend

itself is in good shape. i don't think broadly speaking over the overall market you're seeing a ton of outright nuttiness going on but when you see facebook up 7 or 8% today. it's well above the street price targets on a consensus basis and you have to ask why. i think that's the market we're in right now and going into powell's speech tomorrow i'm not sure what incremental good news is going to be out there for the market >> keith, we are seeing on our screen that the dow is in 1% of going positive for 2020. psychologically what would that do to the market, if anything? >> i think what you'd see is retail traders jump back in if they haven't already, as mike pointed out. there is some chasing happening in this marketplace. more importantly once you start to tick off technical levels, not om on technicals but

reaching across all-time highs like the s&p did recently, then you start to get some of the machines and al gos kick in with buying program, a cascading effect upward for the marketplace. there is some of this money still sloshing around the system that has to find a way to make some money and yield and return on this. right now that's just u.s. equities it's still set up to be that way even though yields moved up a little bit, it's not enough to take the stain out of the equity market and won't for some time i would stay the course. we're about to enter into seasonably a volatile period in september and october but i think you see the trend start to continue to play out as soon as we get into the election then maybe we take a pause in the end of october. >> okay. we'll talk about that in a minute sara, in terms of these record highs, i remember the expiration of the stimulus looming large. remember that, that was going to have an impact on income and a

big shock and see it in the data and the fact there is no relief package happening right now with the senate still on vacation, are you surprised to see this kind of price action given that backdrop >> i mean, we're definitely not becoming complacent here, worried about stimulus kpiration, the election, the markets are not pricing in a democratic sweep, which could have implications for higher taxes and more regulations the tech sector trade is more crowded here we're becoming more selective. but we're definitely not exiting. you have positive backdrop of better economic data, positive data points on vaccine news. what we're doing, while running technology, look for value elsewhere. for example dividend looking clean, get yield there then going outside of the u.s. looking at value stocks in europe and around the world with weaker dollar you can find value elsewhere, too it's definitely time to consolidate your technology bets and look to put your money elsewhere where you can find greater values. >> but sara, it's hard to find a

really common thread among the economic data we've seen of late yes, durable goods was double what the street had expected but manufacturing surveys have not been strong. we did see jobless claims tick back above 1 million if you had to describe the way the data looks and how much confidence in the market, how would you describe it? >> we're looking for a slower for longer recovery. exactly that we don't see this as being a v-shaped recovery anymore. it's going to be spotty. we could see spikes in the virus that cause slowdowns which do cause slower mobility around the nation that's great for technology stock, which is why we're not exiting. growth companies less levered to the economy do great in an environment like this. our view is earnings don't reach pre-covid levels until 2022. the market from here, it's going to be tough to go straight up like they have been doing. once we start focusing on earnings and pricing in, really the market should be in a trading range through 2021.

>> we are getting earnings now let's get to those numbers josh. >> box reporting eps of $0.18, street at $0.12, up a beat 11% to 192.3, analysts at 189.6 million. billings beat 9% to 188.8 million. guidance for q3 above estimates, $0.13 to ptd 15. 193 to 195 million for the year they are razing expectations now looking between $0.56 and $0.60, revenue between 767 and 770 million dollars. i had a chance to catch up with ceo aaron levi telling exceeded revenue guidance, strong beats all around he tells us showing stability of his platform.

box did cross 100,000 customers in the quarter what reese saying, he says, is more momentum for digital transformation i did ask him, though, about revenue trends as well what i saw, mentioned a pop of 11% in q2. the company's q1 it was 13 mers a year a13%. a healthy pipeline but he says box is not immune to the broader reality of the economy. strong demand, he tells us, from existing customers he is seeing softness in some segments so small business guys, back to you. josh lipton. josh, thank you. despite softness in small business, very strong numbers, very strong share price reaction, up 14% here after hours. box had basically done nothing over the last three months, a nice comeback from the march lows just another sign after salesforce that enterprise spending is in a good place, if

you're providing these kind of cloud services that power the work from home trend. >> the fact that it's been a laggard as you said, the fact this the best day i can ever remember for a cloud-based enterprise software company to have their results hit the market, you know, then you see that reflex reaction the fact you've got 25% move and $200 billion company today in crm is pretty stunning. >> yeah, and up 13% in after hours for that specific stock, sara this enterprise trend, it continues. does that give you reason to continue investing in that sp e space? >> we generally think these companies are benefiting from digitization the thing with something like box, it is a smaller cap company, there is a handful of companies that can break out in software space to mega companies. while they are very much benefiting from the work at home

trend, can they get to the next level. i think at this point it's unclear because of the competitive landscape. >> we'll leave it there. thank you for joining us keith bliss, saira malik, thank you both. >> thank you. the red hot housing market helping toll brothers report strong quarterly results up next we'll ask luxury home builder ceo if he sees any sign of slow down amid uncertainty with the economy and jobs. we're back in just 90 seconds. stock slices.

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luxury home builder toll brothers cap lizing on hot home marketseeing contracts up 26% for the third quarter, third quarter record toll brothers ceo doug yearley joins us in an exclusive interview. doug, it's great to have you here the numbers are incredible it follows what have been strong national numbers we've reported in terms of home sales how would you characterize this demand environment versus what's normal >> yes, sara i've been doing this 30 years. this is about the best couple of months i've seen in my career, and that's highly unusual to see for a summer usually we sell most houses in february, march, and april so the market is really strong it's taking advantage of very low rates. a sub3 rate versus 4% rate, just one point lower for our buyers

you can afford for the same monthly payment a $900,000 house versus $800,000 house just four months ago when it was a 4% rate there's very limited supply on the resale markets we're down to three-month supply, 20-year average is 5.7 months really importantly, there's a tremendous nesting phenomenon going on right now people recognize they can work from home long-term. the house is more important than ever it's their sanctuary they want to upgrade it, customize it with a home office, in-law suite for their parents, indoor, outdoor living that's our business. as a luxury home builder, we sell upgrades, allow you to build your dream home. our business is as good as we've seen it. we've had a fantastic first three weeks of august and are really encouraged by our future. >> you keep saying it's a luxury

home builder, which is i guess, why doug you're relatively insulated by the fact we have 10% unemployment and so much widespread economic pain is it because you're targeting a higher income group that you're not seeing that or feeling that? >> no. i think all the builders at all price ranges are having really strong sales right now there's a lot of people that are renting that can now move into a starter home for the same monthly payment because of these low interest rates but at our price point, which is a little bit higher, although we brought it down a bit, we're doing what we call affordable luxury, we're just seeing buyers that want to move up they think now is the time in the past you lived where your job required you to live now you can live where you want to live. we're seeing more and more people relocate to those areas of the country that they desire to live. they can still do their job. they are able to sell their home to move up to ours because the resale market is so strong they are able to take advantage

of these tremendous rates. i can't overemphasize this nesting phenomenon that is going on where everybody wants a home. they want it to be customized. we're, again, seeing terrific results. it really is across the board in housing. most of our buyers do have college degrees. that group in the country has a much lower unemployment rate and i think they feel much better about their job future than the country at large so that's certainly helping us to some extent but this strong housing market is really akroscross the board. >> it makes you wonder just how much activity is being pulled forward, doug, from years to come because of what's happening right now. it also makes you wonder what's going to happen when there's a vaccine. are these trends going to reverse or is this permanent >> so it doesn't feel like pull forward. it feels like it's sustainable remember, before the pandemic

hit, so for our first quarter, which was november, december, and january, we were up 28% in sales. so we went into the pandemic with what was becoming a very strong housing market. and then, of course, we had a couple of months where things were pretty tricky and now back stronger than ever it doesn't feel like pull forward demand it also feels like rates will stay low for an extended period of time. as for when the pandemic thankfully will be in the history books and we won't be living it every day, i think i know for our company we're going to be much more flexible with the opportunity to work remotely we will still, of course, have offices and require people to come in. it depends on their job. occasionally or once a week, twice a week, once every two weeks, but i think there will be less travel, there will be less obligation or responsibility to go to your main office because

we're all proving we can get the job done remotely. it's a very efficient way to work so i think people are looking longer term when they think about the home as this sanctuary, as the most important place in the world, and they want to put more money into that home, customize it more, particularly with the low rates where they can afford to do that more without increasing the monthly payment. >> how much overall, doug, do you think that the huge injection of fiscal stimulus and the mortgage forbearance is distorting the picture in housing right now, if at all >> i think very little i think very little. i think a few months ago there was certainly concern about that what i see now with this housing market, how strong it is, i don't think that is having an impact on today's market if we went back to april, early may, we would have wondered if

that's the case. now we're in late august and sales are still incredibly strong and it's real again, it's people who want to move up. they are not taking advantage of government stimulus. they want to improve the lives for their family they want homes that allow them to not just raise a family but also work from home, to think about when parents get older, you know, nobody wants to put their parents in a nursing home anymore. we're able to design new homes that have custom features that allow nor multigenerational suites there's many different phenomenons but i think it's longer term and i think it's solid. >> you mentioned on the conference call, you told analysts you have raised prices and plan to continue to do so. what do you have in mind in terms of price increases and is that in every region where you operate? >> yeah, so we mentioned in most of our communities we have raised prices over the last few months that's a supply and demand

equation we've had such great demand that we've been able to increase prices we know that lumber as one cost is up significantly. as an industry we are concerned about long-term labor shortages because there have been such great sales recently but i'm confident with the price increases we've seen to date, and what i hope are continued price increases if this market stays strong, we will be able to offset those anticipated cost increases. but we really evaluate each community every week we look at the sales and we make the decision as to how much we can raise price. for the last few months, those price increases have been pretty much almost always all the way across the board and pretty significant. >> the hottest market in the country right now is >> hottest market in the country is boise, idaho, with significant traffic increases coming out of california. >> really.

>> and right behind that i'd say we have reno, nevada, is pulling people out of the bay area of california atlanta, northern virginia really, people are chasing the sundown to florida so it's hard to say there's one and only one, because we have so many very strong markets we have relocation traffic stronger than we've ever had because, again, people can now work -- they can live where they want to live and not where the job previously had required them to live. that's causing a lot of cross-migration across state lines. >> doug yearley, thanks so much for joining us really good color. >> it is my pleasure thank you very much. etsy ceo crafting a fight with amazon. why amazon support of a new consumer protection bill in california is, quote, an abuse

of power market play aimed at ngut competitors listen to us on the go on the cnbc app we'll be right back. ta-da! did you know liberty mutual customizes your car insurance so you only pay for what you need? i should get a quote. do it. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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etsy engaging in a war of words with amazon in new blog post slamming the proposed consumer protection bill which would hold online marketplaces liable for defective products on the platform ceo josh silverman calling the move an abuse of market power play and amazon taking bold steps to wipe out its competitors. silverman joins us now in cnbc exclusive interview for more josh, i know this is a big deal because you never speak out publicly against amazon. explain why you're calling them out for backing this legislation. >> yeah. thanks for having me on. i think this is an important issue, important to everyone in america. this is a wolf in sheep's clothing designed to protect amazon's market power and extend amy's market power and dressed up to look like consumer protection here is what's going on. consumers need to be protected if something goes wrong with a

purchase there's a long history that says if you buy something from a retailer and something goes wrong, that retailer is strictly liable it also says if you buy something on a marketplace, the vendor on the marketplace is liable but the marketplace itself is not. if you buy something from a flea market, a landlord who owns the parking lot is not liable, it's the person you bought it from at the flea market, right the question, and there's been a gap in recent law, what happens when a marketplace starts to look and act like a retailer we don't need california to pass a law on that because the california judiciary just settled that issue last week they said amazon looks like a duck and smells like a duck, so it acts like a retailer. it excerpts control, picks the inventory, stores the inventory in its warehouses. it packs and ships the inventory, puts it in an amazon box and delivers the box to your door in an amazon van.

so amazon meets the standard of acting like a retailer and therefore it should be liable like a retailer. amazon is turned around a bill in california to say every other online marketplace that's not acting like a retailer should be held strictly liable, so craigslist or ebay or etsy should have liability. this is going to have tremendous consequences for 3 million sellers on etsy and all sorts of small businesses around the country should amazon prevail in this fight. >> i just want to understand why amazon would be backing this, i guess, from your perspective, josh to me it seems like a bill that is anti-amazon to protect. aemtz has been fighting these bills for years, haven't they, to protect consumers against liability for defective goods and blaming it on the third party sellers. why all of a sudden are they backing it now >> they have it's so cynical.

they lost this court case because the court found they act like a retailer. they are now strictly liable in the cases where they act like a retailer the court didn't find they do it every time the court set a standard for what are the tripping points they gave guidance for other courts on when is a marketplace acting so much like a retailer that they should be held strictly liable and amazon would trip that wire most of the time. so amazon then flipped and said, well, this is an inconvenience for us, but it would be a crushing burden for small businesses, for our competitors, for people like craigslist or etsy they have backed a law saying since we have to do this because we act like a retailer, we want all online marketplaces to also be held liable even if they don't act like a retailer. the reason is this is so complex that a smaller place, a marketplace like etsy, which never touches the merchandise, which doesn't fulfill, doesn't

pack and ship, simply can't comply so it's really an anti-competitive act from amazon to consolidate their market power. >> do you have a responsibility for quality control. regulators would say if a marketplace can't police its own vendors, perhaps it has too many vendors orb itself is too big. what would you say to that argument >> products for sale on etsy are safe and vendors take great care to assure so and buyers. everyone who sells on etsy has to comply with the law and is liable but that doesn't protect us from nuisance litigation. so if etsy were held strictly liable, we would be besieged by nuisance litigation. to litigate anything cost $50 to $100,000 in this country what we end up seeing is all these litigation cases that cost 50 to $100,000 at a time today to start a business on

etsy costs $0.20, so it's incredibly cost effective. we're the easiest path for small businesses to get up and running. if etsy had to vet every single product from 3 million sellers and all 70 million items, it would simply be unworkable you might be right, we would have tons and tons of small businesses that would be put out of business. at a time when the global pandemic is happening and so many small businesses are struggling, that's the wrong answer this is an incredibly expensive solution to getting low value insurance for people vendors take great care. that's not been the problem. the problem is about amazon trying to foist unworkable solutions on people who truly do act as marketplaces. >> it's a big deal because you are calling out amazon and also threatening for a lot of damage for small businesses josh, i remember when they were writing the orbit water for etsy

in 2015 when amazon launched its handmade marketplace to compete with etsy. here you are, you've seen this amazing boom especially over the past year in terms of the stock and the business how deep does this fight go? how long have you wanted to call out amazon for anti-competitive behavior >> i think the world really wants alternatives to amazon i think the world deserves alternatives to amazon in this global pandemic we see how buyers crave to support small businesses and small businesses need the opportunity to sell online so now more than ever, it's really important that true marketplaces have an opportunity to compete with amazon the way we do that is by being a true marketplace we open our doors to all sellers and keep the cost of selling very, very low that gives buyers an opportunity to buy great, innovative high quality products at affordable prices and everybody wins,

everybody but amazon this is really them trying to use public policies in their lobbying efforts to try to shut down competition that's not what america needs right now, especially not small business. >> if it ends up passing are you going to do anything >> we'll take it to courts we think it's in violation of federal law. i think it will be an embarrassment to california legislature if it does pass because they will see an uprising from small businesses in their state they will see marketplaces start to tax california residents differently than others, and that's not good for anybody. so you know, i think and i hope that california will realize that this is not good policy and take a breath and figure out ways to protect consumers that also support small businesses and the economy. >> all right really important issue, josh thanks for joining us. josh silverman, one that he's

especially passionate about. we appreciate it kay kayla. sarah breaking news on the stimulus negotiations. according to sources i just got off the phone with, republicans are in the process of now refining a new so-called skinny stimulus proposal that could be released among members of the republican party in congress as soon as this week according to two senior administration officials and three people briefed on the matter. the white house and gop leaders are now looking to propose a approval $500 billion aid package that would fund only the core programs where support has been bipartisan. that includes expanded unemployment benefits, which one senior administration official tells me could be proposed at $400 a week. that number has been moving in recent days. it would include a new authorization for ppp loans for small businesses it would include funding for schools, for coronavirus testing and for vaccines developed under operation warp speed despite the popularity of those programs that i just listed, each of the five sources i spoke

with was doubtful the skinny package goes anywhere. of course we heard the chief of staff mark meadows earlier today suggesting that stimulus negotiations could all be zeroing in at the end of september when a funding deadline for the government comes near that certainly could happen. but the exercise that republicans are looking to do here, sara, is essentially to secure some votes in the senate and challenge house speaker nancy pelosi to take this smaller olive branch, reauthorize some of these programs pelosi has suggested republicans must meet her halfway at roughly $2 trillion and essentially challenging her to take this deal or try to see if she can pass something else in the next few weeks, sara. >> i guess what's missing, obviously there's a lot missing from that, the bare bones, the state and local government piece, which the republicans have not put forward unemployment benefits, though, you said $400 bump a week. that's actually better, right,

than the status quo. >> right part of the reason that republican estimates earlier on this summer were so low was because they wanted a little bit of room to negotiate it also, sara, does not include another round of stimulus checks the republican view is that the unemployment benefits help people who are not working and the stimulus checks went to everybody. it was helicopter money that was ineffective and went to people who didn't need it of course democrats have been suggesting in some senses that people should be getting, you know, this recurring income until the pandemicis over. so eliminating those stimulus checks all together could also be controversial and not necessarily bipartisan but they are really trying to zero in on those programs where they want to challenge democrats to say we dare you not to fund these things where there has been broad public support. >> right both parties have been on board with all those aspects

kayla, we have breaking news from nba and racial justice impacting the major sports league kate rogers with the story kate. >> hi, sara, cnbc confirmed the playoff team between miami bucs and orlando magic has been canceled the game was about to start, no players on the floor there were tweets league officials huddled up outside locker rooms, a tense scene on social media reports are that players decided to formally boycott, players from the bucks, this over a shooting by a black man in wisconsin. reaching out to other teams set to play to's if they are jeong this boycott part of what's unraveling here is a very tense scene in the nba bubble back to you. >> major statement kate rogers, thank you. up next, famed tech investor dan niles is back to tell us why he's betting draftkings will be part of one of the biggest trends in a decade and why he's

betting against what he calls the mock for trade that's next.

welcome back time for cnbc news update with sue herera. hi, sue. >> hello, everyone here is what's happening this hour take a look at this. this is what it looks like in galveston tech texas as an enormous hurricane approaches the gulf coast hurricane laura is now a category 4 storm with winds up to 145 miles per hour. it is forecast to come ashore overnight along the gulf coast near texas-louisiana border. forecasters are warning of an unsurvivable storm surge the cdc pressured by trump officials to change its quofd testing guidelines that was according to "new york times. the new guidelines exclude people without symptoms even if they have recently been exposed to the virus the administration official overseeing the testing said

politics were not involved in the change u.s. officials from several agencies say there's no intelligence to suggest any foreign countries are trying to undermine mail-in voting or that there is a coordinated effort to commit widespread fraud. that despite president trump's claims that mail-in voting won't be reliable. you are up to date i'll send it back to you, kayla. >> that's an important note to end on thank you, sue all three major averages rally, s&p and nasdaq closing at record highs. for more let's bring in dan niles founding partner of alphaone capital partners. dan, you say we're in a bubble and you're looking for the pin that will pop it what do you think that pin could be >> the first part of that is i'm trying to enjoy riding the bubble while looking for the pin. so for us the biggest issue with the market, and it has been for a bit, is valuations i think tomorrow will be a very interesting thing to watch because i put out a tweet on

this under my handle at dan niles, jerome speaking at jackson hole, how the fed with a framework around inflation, may let rates stay longer. in theory that should be great for stock market, very interesting to see if you look at markets in europe, for example, the pe ratio more in that 20 to 24 times range even though dividend yields are higher. they have they go tiff rates that's the situation that's one of the pins i am looking at is how the market responds to things like the federal reserve because that's really what's kept the party going is the fed continuing to pump money and continuing to

keep interest rates low. >> you mentioned europe. one of the things today the davos economic forum will be delayed until next summer. i know there's been a lot of groans an tiny violins on the delay of davos perhaps holding these large gatherings, big institutions are making the decision even four or five months fro now it won't be safe to do what does that tell us how prolonged this suppressed economic activity could last >> i think you bring up a great point because when you're talking about davos or i look at colleges university of north carolina, they started classes, i think they have about 30,000 students. a week later they shut it down and it's going all online. university of alabama, the same thing. we all know what's going on with the sports leagues as well so i think, you know, let's not forget, it normally takes 10 to 15 years to get a vaccine.

we're shortening that to a year. to think that the world is normal, it doesn't make a lot of sense. so my take is we get back more a sense of normalcy, wait next year when everybody can get a vaccine, we've got some herd immunity, et cetera, that's when it will make more sense. for right now, as you pointed out, davos being canceled not a big deal but just a sign of the times and the fact there's a lot of risk. >> dan and sara, i wanted to ask you about your shorts, the mach 4 trade. malls, airlines, cruise lines, hotelse e hotels have they been punished enough more pain here >> valuations pop up with a lot of companies

mach 4, a lot have gone up from the bottom, we tried to get short rallying and putting them back on. now related to real estate in malls, real estate for offices those are the areas we really don't like things related to travel, that's stuff we really don't like we've also added a little to that in terms of names huawei i've spoken about before obviously the elections, a lot of ramped up rhetoric on china the other space, quite honestly, consumer discretionary, which i think investors should pay attention to don't forget, we were getting $600 extra a week for people unemployed that's gone away we don't know what the new number is. maybe it's $300. we don't know yet. that stopped in july i think with that propping up a lot of buying, that's going to cause some issues, i think, as

we get into the back half of the year because the number is definitely going down. those are sort of the three segments i think valuations -- when the overall market is this high, valuations for everything, even the beat up sectors go up. the other thing, a lot of bankruptcy risk in those areas, a lot of retailers filing for bankruptcy already there's probably more to come as things continue to get canceled as kayla mentioned, like davos, et cetera. there's going to be more things like that. i think you just need to be very careful when you're involved with things like that. >> hey, dan, quickly on the stimulus front, we just reported a few minutes ago that republicans are going to propose a very small package essentially challenging democrats to take it up, which is unlikely to happen. if there's not a stimulus, the fierce standoff continues, do you think we'll see bankruptcy in sectors, hotels, airlines, cruises you mentioned? >> yeah, i think we'll see more

bankruptcy we've already seen some, obviously, this year that's going to accelerate unfortunately the thing with politicians, as i think we've all discovered, until the stock market, you know, starts to collapse, they don't do anything it's a lot of posturing and talking. right now with the market continuing to grind its way higher, the politicians don't have any impetus to do anything right now. i think eventually, you think, will happen. if it doesn't, the market is going to force their hand. yeah, i mean thisis one of the reasons why i'm trying to every day, i'm looking at my portfolio going, okay, i own amazon but it's up 80%. do i want to own as much or i own gaming stocks they are up 40%. should i be scaling some of these things back. the market keeps levitating. today more stocks down than up on s&p 500 while hitting a new record that's not a great sign when it continues to have that narrow

type of frame. >> when there continues to be a back stock from the federal reserve, hard to see how the market can go down or present the urgency washington needs dan, for now we'll leave it there. dan niles from alphaone capital. >> thank you. stocks continue to hit record highs up next, mike santoli will look why equity flows are lagging and whether that could be a warning sign for investors introducing stocks by the slice from fidelity.

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another record close for s&p

500 and the nasdaq let's go back to mike santoli. a good time to be looking at sentiment. what do you say? >> it's one of the main things you want to keep an eye on when the market has been rolling for a while and when could be unbalanced about it. overconfidence does contribute to the end of rallies. this is the spread between bulls and bears, a weekly survey we look at a lot, investors intelligence, advisers, these are professionals that don't let rallies go unplayed. here you see we're pretty much in the upper reaches of this range. people are very, very lopsided on the bullish side of the vote rit now. this is fascinating. january 2018 remains the moment of maximum happiness for this entire post financial crisis bull run we're pretty much as high as we've been since then. that's an input that says be careful, maybe people have bought into this market. take a look, though, at what real money is doing of this is from barclays. the world stock market, the blue line here, basically all equity

markets in the world trending up here this is cumulative equity fund flows. so what you see is you actually see a decline. net outflow recently in flows to equity funds actually a long-term decline as well this shows people are not necessarily throwing money real head long way at this market now you don't necessarily have to see these people go all in but it's interesting to see real money indicators and hedge fund positioning don't yet match some of the really bullish short term trading metrics we do look at, guys. >> all right thank you, mike. up next, much more on this developing story surrounding the nba as the milwaukee bucks boycott today's game and as we head to break, check out will m williams-sonoma moving lower, and reporting a 46% jump in digital revenue. the stock was up 34% heading out the report, down currently ab6% after hours we'll be right back. ♪

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the milwaukee bucks not taking the floor for their play-off game with the orlando magic. cnbc jabari young is on the floor. the milwaukee bucks are the home team an hour away from milwaukee where jacob lake was shot in the back by police a couple days ago. how did this come about and do you expect other nba teams not in this vicinity to go along with this? >> it came about by players, obviously, being fed up. i think it's one thing to sit back and listen to them and see the tweets and hear the emotional speech from doctors and say, man, it's come time it's enough talking. it comes time for action today you're seeing that action. today you're seeing what the nba and twitter is talking about today they are using their platform to the maximum ability saying they are not going to

play it's one thing to do it on an nbc tv game and see images of players walking out supposed to play the everyone ganing games,. that's true power. i think that it was a collaboration. i can't foresee they did this without going and looking at the nba and making sure that the nba knew they would do it and making sure the owners, there is always an owner player relationship that's well-regarded, you know, compared to other sports i think the nba is the first league to cancel, postpone their season when the pandemic hit and the first league to come back, one of the first leagues to come back and really show fight for social injustice and the first league that will say we're not doing this we're done and at least for these two games today and the game this evening. a powerful statement it's powerful because we're talking about it and powerful if it brings upon awareness and true solutions to the issues

that black people face in america. >> jabari, any response yet from the league officially or from any of the team owners >> you know, not that i know of. listen, the response is what you see. the nba, i don't think they are caught off guard by this i don't think they got caught off guard by this. this is adam silver trying to put this together, they had that tight relationship i would not imagine this goes and breaks them at this point. the nba is by their players and allowed the jersey with the sayings on the back to bring awareness to the individual that killed and shot bee reonna tayl. >> there is a lot of reporting that a lot of the other games tonight will be cancelled, as

well, standing in protest along with the milwaukee bucks we'll leave it there thanks for jumping on the phone. keep us posted on any developments up next, we'll look ahead to tomorrow's session jackson hole conference of central bankers going virtual. the key things investors will be watching that's next. >> don't miss jared kushner senior advisor to the president on "squawk box" tomorrow "closing bell" will be right back ♪ ♪ ♪ ♪ ♪

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the annual jackson hole virtual conference this week that kicks off tomorrow. fed officials will host we well-known central bankers around the world to face key

issues the topic is navigating the decade ahead implications for monetary policy jay powell set to speak tomorrow morning just after 9:00 a.m. eastern and guys, there's been a lot previewed about this speech and that he is set to make a fundamental shift in the fed's policies and thinking around inflation, that they're set to tolerate higher inflation, let it run a little hot, which just ultimately results, mike, in easier policy for a lot longer is it factored in the market could come as a surprise i'll miss the walk, the elk, all the tradition, but what about powell's speech. >> the fake mountain backdrop and the rest of it i do think a lot of it is factored in. this is, remember, a long running study of their overall frame work and people have gotten clues about it. it will under score the fact the fed is sensitive to not being premature in moving off a super easy policy before you get to something like full employment so whether inflation gets near 2%, that's not going to be the

trigger. they want to avoid what p happed with the slow improvement over the labor market many years where they spooked markets but making a move in a tightening direction before perhaps investors are ready for it and we got the full employment. >> yeah, that's at 9:10 eastern tomorrow but we should be talking about navigating the next year ahead before we think what happens the rest of the decade sarah, thank you for having me mike, great to have you. that does it for us. "fast money" starts now. i'm melissa lee and this is "fast money. tonight on "fast," a once in a decade opportunity with apple's biggest bull is calling the stock and will press him on the call straight ahead plus a streaming buy. what sent shares of roku streaming high today and the story in the gulf coast as hurricane laura bears down how the storm is