than other things. but the biggest consumer facing internet companies is airbnb that will come to market soon. >> all right we'll have to leave it there thank you. >> thank you >> thanks for having me. >> of course also a happy early birthday. >> yes >> 21 never look sod good, tyler. >> we'll get the jobs report that will be my birthday present on friday. record levels for the s&p 500 and nasdaq today thanks for watching "power lunch. "closing bell" will serve up the meat and potatoes with gravy right now. >> as we always do, tyler, thank you. welcome everyone to "closing bell." i'm sara eisen with wilfred frost. stocks higher to start september. nasdaq up another 1% now up 33% for the year. let's look at what is driving the action big rebound in the manufacturing sector industrials, materials, and transports to day. zoom's huge quarter. the stock is up 40%. that is helping push other work

from home software stocks. and tech continues to lead, apple, netflix up 4% it is walmart the top performer in the s&p 500 we're going to dig into that one. record close watch 59 minutes left to trade. >> that meat and potato and delicious gravy joke from tyler. a bit of an inside conversation between the two of us today. of so apologies for that let's have a look at what is coming up along with the meat, potatoes and gravy the ceo of labcorp joins us. florida is severing ties with quest diagnosics and walmart upping the stakes with amazon announcing the launch of the prime competitor we'll discuss with the former head of walmart u.s. and a food giant bets into the biotech game we'll speak with the ceo of nest nestle bet with a peanut allergy treatment. mike santoli is tracking the

action on this first day of september. josh lipton is focusing in on apple and what could be the next catalyst for that stock. and phil lebeau has details on tesla's share offering >> we have another tack on rally. a lot of things moving in a positive direction sara mentioned the manufacturing numbers. dlart is down again. they have a lot of the software plays that are driving the excitement right now then you have global cloud computing. also up big today. helped by zoom and then you have the average stock in the russell 1,000 so you see basically the historic difference. this is trending in the right direction. only very slowly you can barely see it.

take a look longer term. nasdaq 100 against the s&p 500 this is the ratio of the nasdaq 100 against the s&p 500 going back about 25 years, 24 years. you see the massive tech bubble. you're on an absolute basis on this ratio above where you were at the peak of that bubble you can see here is kind of a long term trend in this direction of the dominant companies of the nasdaq are where the growth is. they are where the highest profit margins are you have the five stocks that are about 50% of the ndx they also have 50% of the earnings you do see this liftoff from that trend that has the people's attention. there is too much of a pylon effect happeninghere

this spread here is coming largely because of upside speculation in nasdaq options. in other words, people are so urgent to make bets on further upside that that is what is driving the option prices that feed into this index a lot of things falling together to cause people to ask the question are we getting a little stretche you know, we're leading in that direction. it doesn't necessarily mean that means it's over soon, guys >> s&p 500 is up 33 this year. that tells the story let's dig into one of the high flying tech names. josh, what do we know? >> so, sara, for tech investors, it's one of the biggest events of the year. when apple's ceo tim cook takes the stage and introduces new

iphones. now bloomberg reporting what to expect he asked them to build 75,000,00575 million of the 5-g iphones there is a wider choice of screen sizes the no details on pricing yet. also apparently am coming, a new ipad we know the work from home trend has benefited the ipad and the mach two new apple watch versions over ear head phones and smaller hom pod speaker apparently in the works too. this coming, of course, as apple is on a terror it's up about 80% so far in 2020 j.p. morgan just raising by the way the price target from $115 to $150 citing upcoming catalysts like that 5-g launch b of a maintained a neutral rating but also raised their price target from about 117 to 140. short term momentum, they say, can trump valuation.

guys, back to you. >> josh, thank you extraordinary run for apple. extraordinary run, of course, of late for tesla, too. fl cooling off a little bit today after yesterday's double digits gains phil lebeau has a look at what is behind the latest moves from tesla including today's pullback. >> you know, tesla shares briefly touched above $500 a share earlier today. they have since pulled back a little bit the company announcing this morning that it's going to be raising $5 billion by selling tesla's shares this comes to about 1% of the company's total equity they're going to be working with a series of banks. essentially this is a move to strengthen the balance sheet as they tell the banks, look, we're going to sell shares here and there. there is no exact time that is targeted the cap ex-expenditures over the next three years, 2 1/2 to 3 1/2 billion dollars annually that goes through 2022 they have factories being built in germany and in texas. they continue to expand production at its plant out in

in the reno, nevada area overall, tes lashgs y tesla, the is not in bad shape. but they're going to continue to invest heavily in terms of cap ex they have $5 billion in liquidity at the end of q 2. this gives them a little more flexibility. >> phil, one of the interesting things i was chatting about with some people today is the fact that likes of netflix, amazon, apple which you can also put in the same bucket as tesla have seen extraordinary share price appreciation both this year and recent years, they decided to cover cash needs by raising debt this year. which is also record low costs for them and very cheap way to do it. but tesla obviously clearly deciding to do so by raising equity which makes very clear sense given the share price. but also shows the debt markets are not offering them quite the same level of confidence that equity markets are >> probably. >> in terms of 2020 kind of change from last year. >> right i think that's a fairway of

looking at it. they have $13 billion in debt. could they add more debt to that sure they could. but there comes a point where you want to have more flexibility. that's what this move allows you to do. a 1% decline in the overall equity of a company i think that people at tesla's headquarters, they probably said this is the best way right now for us if if we want to raise $5 billion, this makes the most sense at this point >> phil lebeau, thank you. tesla off 4.3% off t after the break, a big food company made a big play in the biotech space. we're going to talk to nestle next you're watching "closing bell" here on cnbc pnc bank believes that if you can get a pair of goggles

that helps you master your backhand... ... then you should be able to get a bank account that helps you master your budget. virtual wallet® is so much more than a checking account. clearly see the big picture of your finances. and easily manage and grow your savings. did you see that? virtual wallet® for digital banking from pnc. it's time to get more from your bank.

virtual wallet® for digital banking from pnc. that's it. i'm calling kohler about their walk-in bath. [ sigh ] not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening

and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for one thousand dollas off your walk-in bath plus a free kohler bidet seat with purchase. welcome back nestle is buying out the remaining stake of peanut allergy maker for $2 billion the ceo joins us now for an exclusive interview, mark.

great to have you. nice to see you. when people on wall street think of nestle, you own brands like lean cuisine and nespresso and gerber baby food why are you buying a biotech company? >> we believe in the nutritional power that comes from food, health power that comes from good nutrition we have one of the leading r & d departments in the industry. we've been scaling our business over the past decade and we've been involved with them for more than four years. we've been very close to their research we also have the earliest allergy food allergy products in our lineup and so to me it's not so much a bet. it's an informed choice. the we're scaling up in an area that really has a large medical

need >> mark, what are your aspirations when it comes to health care and biotech. you used to run a global -- a multinational german health care company. what else can investors expect as far as deals in this space? >> well, it's not so much about biotech per se it's really about nutritional therapies. this is the kind of business we're building up. so a very successful business we want to bring up and bring our signs to the table i'm happy to contribute to that there was a lot existing before i joined. and something that is promising. in terms of the premium, it's also important to look at the recent share price development so we believe this is a very attractive offer for shareholders but it is also good deal for us. >> can we expect more m & a to come whether that is buying or

selling parts of the business? >> well, m & a is part of our strategy we made that very clear in recent investor events in fact, when you look at the history of the company, i think it's always been a very balanced story. it's about two-thirds of the growth coming from organic growth and one-third coming from m & a. over the past few years, we've been through a fairly ambitious portfolio transformation about 50 deals in both dying and selling. we announced strategic reviews last year and early this year. and we also made it clear that ultimately, of course, we want to get larger not smaller and hence acquisitions are part of the menu >> one of the reviews you were looking at is the water portfolio. you own big programs has the pandemic and shift in consumer habits towards buying things like bottled water changed your view and the performance of the category fo you? >> so we announced that review

in june when covid-19 and some of the implications were already well known we made it clear throughout the winter and spring that we're reviewing our strategies some of the leading international premium brands are going to be remaining with us because we see a lot of promise in those segments going forward. >> and you're selling ice cream? >> so the ice cream business is something that we contributed to a joint venture with a private equity partner earlier this year and that move also i think is part of a longer term play of creating the world's leaders, largest and leading ice cream company that encompasses significant positions in europe and north america and select international markets. >> mark, can you give us a picture of what is happening inside the grocery store when the pandemic hit in the

u.s., we saw tremendous panic buying and grocery stockups. what is happening since? how much has it slowed down as economies and states have reopened in this country >> initially everyone is concerned and stocking up. by and large, consumers have the confidence that the supply chains are working and shelves are continuing to get stocked. hence, what you see now is not so much the spike from short term but what you're seeing is true increasing in home demand people spent more and more times in their homes they started cooking at home, baking at home, they consume more coffee at home. all this is driving demand and not all of this is so much related to the stimulus support but really true underlying demand people need to eat and drink

thap happens increasingly in home we're seeing increased trip to e-commerce they're getting things delivered to home. we're seeing increased interest in health. so vitamins, minerals, for example, they see tremendous growth and overall, i think, you know, with some of the slowdown of the economy, you're also seeing increased interest in value offerings and good prices. >> so i get that you're seeing the strength continue as people change their habits and decide to eat at home but the pandemic is still very much with us, mark how do you plan for what happens when a vaccine comes if it hopefully does in the near future people are going to want to eat out again. so what does it mean for packaged food companies like yours? >> yeah, look, we about a 10% of our business that is outside of in home. so this is where we supply restaurants and hotels and cafeterias and so forth. so we also have a keen interest in out of home consumption

before this crisis, it happened a long term trend that the consumption was increasing at a faster clip. so around the world, people were traveling more, spending more time away from homes kitchen sizes were shrinking now we saw the crash reversal and people spend more time in home when the vaccine comes, i don't think it will be one moment in time it's one thing to get a vaccine approved it's another thing to supply it in in the millions and really be sure that the same public health and safety is as beforound as b the crisis that will take a while for now,s is a reasonably safe bet that inhome consumption is above normal and we'll see a subdued recovery in the out of home separately. >> what about the geographic breakdown? which countries stood out in terms of outperformance or underperformance >> well, look, the trend towards in home and increased

consumption inside people's four walls, i think this is a fairly noble thing. others had a severe lockdown and crackdown in economic performance. >> i remember when you, mark, made the call pretty early on. i think it was in february that you were suspending business travel for your 300,000 employees. it was a really wow moment because it was before covid-19 had really reached the united states in any big way. the market was starting to crater and worry about the economic impact. how do you think about getting back to normal and returning to travel and when that happens >> i remember that day well. february 25 when our travel

restrictions went into effect. and with that, we also had a whole lot of preparation moved inside the company to be sure. so a lot of effort at that time to be sure to make sure that everything is watertight and now, of course, there is a lot of thought to that theory about getting out of the crisis. but again this is not so much going to be one moment in time but rather i think a rather staged event and there is a lot of unknowns at this moment the think about the next northern hemisphere winter, how bad the cold and flu season is going to be, how promptbly a vaccine is available how much time it will take to scale that up after it's approved and apply it to people around the world so a lot of unknowns here. this is why our flexibility in our opinion is the name of the

game i think continues to be favored. >> finally, mark, i want to end on a lighter note. planned based tuna is that something that people want >> you got to have it. of it's a fantastic product. it's in the trend of more plant based solutions. they switch to plant base for a number of reasons, health related or environment related in the case of tuna, this is more about sort of animal welfare and avoiding, you know, some of the unsightly situations when tuna is caught. i think also frankly, some of the heavy metal exposure that you have from frequent potential tuna consumption. >> sure. >> i think there is lots of reasons here to make that part of your diet and i think we're very exciting lineup of different products from, you know, classic tuna to beef,

chicken products and tuna now. we also the first one to have what we call the triple play burger slags, tolution. there is beef, cheese, and bacon. >> i don't know. i got to taste it. good point though about the metal poisoning. thank you. >> tasting is believing. tasting is believing thank you. >> i get the plant based meat. i don't know i'm not there yet on plant based tune yachlt tuna >> triple burger is what caught my attention we have got, what, 38 minutes left of the session. right near the session highs where we were briefly at the session highs moments ago. record closes likely for the s&p 500 and the nasdaq still ahead, shares of quest diagnostics low after florida severed ties with the company after delayed and missing covid-19 test results. we'll discuss that and more with the ceo of competitor labcorp in a few minutes.

motorcycle riders love the open road. and geico loves helping riders get to where they're going, so to help even more, geico is giving new and current customers a fifteen percent credit on their motorcycle policies with the geico giveback. and because we're committed for the long haul, the credit lasts your full policy term. the geico giveback. helping riders focus on the road ahead.

treasury secretary testing on capitol hill which afternoon. washington remains at a stalemate over the next round of stimulus we have more now on that testimony. ylan >> that testimony is still on going. the treasury secretary told democrats that he'll call house speaker nancy pelosi once this hearing is over and says he's willing to meet negotiate at any time as long as there is no strings attached >> the president, the entire administration thinks there is more work to be done let's not get lost on different letters of the alphabet. let's move forward on areas we can agree upon because there are clearly parts of the economy that need more work. >> the democrats have said they need at least $2.2 trillion in any new relief package that letter he referred to is democrats warning about a

k-shaped recovery in which the wealthy bounce back quickly and low income households are left behind >> please, please get back to the negotiating table. but get out of this name blame mess that i hear going on. get back and let's get this country going. let's stimulate this economy this is our job. >> congresswoman maxine waters told him that he could tell pelosi she is the one who encouraged him to call guys >> fired up. ylan, i want to talk about the payroll tax deferral today is the first day much it's a little complex what does it mean? how does it work >> there is an executive action that allows companies to defer collecting the employee side of the payroll tax. that's a 6.2% tax. they don't have to collect it starting to day through the end of the year.

so for employees, what that could mean is potentially a bigger paycheck right now. however, the irs is also releasing guidance saying that this is just a deferral. it's not a holiday and that means that money will eventually have to be paid back starting on january 1. and companies will have to then collect it in double they'll have to collect the 6.2% that is due in january plus whatever they did not collect during this time so that could mean for workers they could see an even smaller paycheck next year and that is one reason why many companies are saying it doesn't make sense for them to opt into this program because it is so onerous and complicated to administer. >> it is optional. ylan, thank you. still ahead, walmart making a major move today in the on going retail battle with amazon. we're going to ask the former ceo of walmart u.s. whether it is new prime competitor can make a dent in amazon's digital dominance. walmart for its part is the leader on the dow. a quick check on bonds for you when the world gets complicated,

a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

time now for the daily coronavirus tracker. indications nationwide are falling, more states are reporting rising case this is week compared to one week ago. former hot spots like florida and arizona are seeing improving data with new outbreaks cropping up in states like iowa, south dakota, and oklahoma iowa's seven day average total

case number is up more than 100% more schools return to in person learning around the country, the nation's largest school system new york city announced today that it's pushing the reopening from september 10th to september 21st the delay is intended to give teachers and staff more time to make buildings safe and prevent outbreaks like those seen in georgia, indiana, and mississippi. time now to get a cnbc update with sue herrera. >> hello, everybody. here's what's happening. florida is now lifting its ban on visits to nursing homes allowing residents to see their families for the first time since mid march. governor says he is making that move following recommendations from a nursing home task force amazon is opening up a new whole foods store that will never have customers inside it the location is in brooklyn, new york, and it will only take online orders which will be delivered directly to customer's

homes. this as the on line grocery saled tripled year over year can you go online to see the latest moves the new york state fair may have been canceled this year but that didn't stop the annual butter sculpture from being made take a look at that baby it's an 800 pound art work which shows two scenes of children learning appropriately so, one in school and one remotely and i have no idea what happens to the butter sculpture after it is taken off display don't ask. >> spreading the wisdom there. >> yes putting it on thickly, indeed. >> there we go i can't think of another one that will do for now sue, thank you you got it we've got 28 minutes left of the session with just off those session highs. we're set for record closes for the s&p 500 and the nasdaq up .5% on the dow and s&p 500. 1.2% on the nasdaq after the break, testing companies under the microsoft today after florida cut ties with quest over unreported test

results. the key points around that discussion coming next 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 of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance.

breaking news on a rapid coronavirus test we have the story for you. >> this news out of europe roesch saying that it is launching a new rapid test to detect the sars virus in countries accepting the ce mark. it does plan to file for u.s. emergency use authorization as well this is a 15-minute rapid test that doesn't require an instrument to be performed interestingly, roche says this is designed both for use in symptomatic people but also

asymptomatic people. people that have been exposed to a known patient with covid-19 or those who are in high risk situations and that's different from what we saw for the recent abbott emergency for the rapid test which was only cleared for people in the first seven days of feeling sick. so symptomatic folks the company is saying 40 million of the tests had been available per month when it laufrnches in late september no news from them yet about the timing for filing in the united states, when it might be available or what it might cost. of course, the price point for the abbott test is $5. so this is good news expanding the availability of these rapid test that's a lot of people have been calling for >> are they good numbers >> those are looked generally

over 95% the sensitivity there, the 96.52% indicates there could be false negatives and so what the company says in its release here is that people who are suspected of having covid-19 but get a negative test, they should be re-evaluated and that's something that comes across with alla antigen tests >> let's bring in lapcorp's ceo. thank you for joining us why don't we start off the back of that. the 15-minute turn around for that type of antigen test. remind us where we are for labcorp test in terms of pace of turn around. >> absolutely. thank you for having me back it's a pleasure to be here there is several different kinds of test. there is a pcr test, a test that companies like labcorp perform we can do 200,000 or more a day. it takes between 24 and 48 hours to get the results returned.

in general they're considered the gold standard for testing for who has the virus. the antigen tests are important part of care test. i think as we move into the flu season, we're going to be glad to have as many of those as possible i think using both together will be effective >> you said the pcr test is the high water mark. certainly the starting point and we've seen return times improve drastically from where we were a couple months ago. can they improve drastically further or is one to two days going to prove to the peak of turn around time for pcr tests >> i think one day to two days is going be to the peak. for people in hospitals, we can turn them around in one day. but it takes time to get the samples from wherever they're picked up be it at a drive through or drugstore to get it to our lab torey then once it's in a laboratory, we can test those in about six to eight hours so we made a lot of progress and we're going to continue to build capacity

even though we can do 200,000 a day, in general we're using half of those each day. we're still building more and more capacity as we move into the fall >> adam, how do you think about the fact that based on this news that meg just shared on roche and the abbott news and the important test that's are coming up for point of care, how is that going to impact your business how much of the overall business is covid-19 testing right now? >> covid-19 testing is a small part of our overall business, frankly. and if you look at labcorp, for 50 years, we were successful with all the testing we do we do 530 million tests a year but 40% of the revenue comes from drug development. we're spending a lot of time and effort working with our colleagues and pharma on vaccines for covid-19 but also on treatments. the so we're very well diversified company h covid-19 is a piece of what we do but by no means is it majority

or that significant. >> where do you stand, adam, on back to school and whether people should be going back to school if they actually been tested and is that a plausible scenario any time soon with the capacity that we have in the u.s. >> yeah. i think that we can get people back to school we've seen some instances where it worked well and we've seen some instances where it's not worked as well. i think the key is testing is a part of the solution we can never forget the importance of social distancing of wearing masks, ensuring we have good hygiene such as washing our hands often. i think that as schools get people back they can continue to do that while they test people as appropriate, i do believe we can be successful to open up schools. >> i'm sure you saw the news florida. the governor broke ties with qwest, your competitor i think the number two largest after you. for failing to report 75,000 results going back to april.

one, is this something that happens? can you relate to this issue two, are you going to be able to pick up the slack there? >> so reporting results we take extraordinarily seriously. we have to report to states, individual physicians and consumers. we have a team that's all they do is make sure we're reporting appropriately to all of the states as well as the government and individuals. and we'll continue to do that as we move forward. its very important to do that because that's the best way you can go track and tracing once you notify people that they have the disease and the state, that's the way you get to them in order to try to either find out who they have been in touch with or around so you can notify others so for tracking and tracing, reporting is really important. are you expecting a big increase in florida then? >> you know, we'll continue to get business in florida.

as i said before, we're doing about 100 to 115,000 tests a day. we can do 200,000 a day to day easily >> adam, we've seen the numbers trend in the right direction in this country we're now looking at the lowest overall case numbers since june. thinking around 30,000 level way off the highs. is that a factor of lower testing? are we doing the same amount of testing and seeing lower positives? >> i think it's real progress. we're doing less testing than what we were doing in july the percent of people being positive when they get the test has gone down as well. i think that is terrific it is real progress. but we're moving into flu season and as we move into flu season, we've got to continue with what we're doing in terms of distance and masks and so forth labcorp is going to launch a new test

can you get a covid-19 test at your physician office and we expect to be able to do that at home as well >> that will be useful pixel is a great product thank you. >> thank you >> keep us posted. ceo of lapcorp next, burritos and blooming onions are on the menu for wall street today how long can the zoom boom last? those stories d reanmo when we go inside the market zone next

♪ ♪ you can go your own way ♪ go your own way your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g.

you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding

technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. 14 minutes left in the trading day. we're now in the market zone, commercial free coverage of the action going into the close. mike santoli here to break down the crucial moments of the trading day and today we have barbara duran with us as well. good afternoon let's kick off with the broader markets. us from fir first trading day of september. highly likely to have those record closes at the moment. we're up 0.6%.

mike, continues to be led by the nasdaq the one big difference from yesterday is that yesterday we saw the dollar start strong and end weak the polar opposite today the dwrat ata with he got this morning is the catalyst toturn around you have fundamental support for the rally. >> yeah, there is. it's an interesting mix that we have just in general in the markets right now. you have these sort of early cycle recovery force that's were pretty familiar in terms of coming out of recession. early cycle monetary policy. obviously highly accommodative arguably, late cycle valuations and risk appetite that's are driving the long running themes in secular growth tech all that is floating all the big indices, even if below the surface it's not as universally

positive how are you feeling in the market there is continued relentless buying of these mega cap tech stocks >> relentless is the word. it's been five straight months and everybody is waiting for this rotation into economically sensitive names. but i think westill don't have enough economic data housing looks great. manufacturing is recovering. we still have the consumer services side which is two-thirds of the economy. we still have pressures there because the pandemic is not contained. signs of improvement but they're still having a dramatic impact on consumer behavior the question is when -- i have been riding the names all the way up and getting increasingly nervous because the valuations are stretched even given the environment of the 0 interest rates.

that is always positive for valuations you're starting to see a slow rotation into the cyclicals. trimming back and starting to rotate into the names. i think it is early. i don't think we'll see a vaccine in the next few weeks. we don't know. could be one by year end it will be execution on that or some major therapeutic that will change the ball game. i think investors are starting to get positioned and you're starting to see this come out in flows, in the close. >> let's talk about that igt roo now. there is a new report today saying value investing may be making a real come back. it's according to bank of america's assessment of client flow trends. the firm found them shifting into cyclicals like financials and energy the first time that financials saw inflows in two months. clients pulled mut money out of consumer discretionary and bank of america also reported of the clients were net sellers of growth etfs for a fourth straight week. that was a little early,

perhaps. you said you were rotating into cyclicals. financials is where you're going? >> not yet i won't be in financials right now they seem to be responding strictly to the low interest rates they're not showing signs of economic recovery yet. so, no, i'm starting to look i'm not doing it, you know, i may be behind the eight ball i don't think so so i am just getting my shopping list ready and i'll start to slowly start to buy some positions. but very small i do think we have more to run here frankly, i don't see any signs we've got this pandemic under control. i don't think we got this pandemic under control which will mean a recovery while it continues will be slower than we would hope for i am not yet there. some people are. and they may be the smarter

ones >> mike, if if we consider that tesla pulled back a bit today, if that did start to get more meaningful, do they have the ability to derail the broader set of tech outperformers in a way that in recent years it's been its own story unto itself it's now $450 billion market cap and been the focus of so many retail tech investor buyers of late. >> yeah. i think all it really a risk appetite tell. so i don't think fundamentally it's not a bellwether. and it is more about, you know, this kind of activity where we look at a day like today where it's down 4.5% they're doing a small equity offering relative to the size of the company itself and we say of course it's going to give back some of the gains it went vertical for, you know, a month. well, you can apply that to other similar stocks apple is a great exam am here even though things are going on. it's financially bullet proof and all the reasons we can talk

about why it works the angle and the urgency of people buying upside exposure, paying up four times for size exposure in options of apple and down side protection and there is a reversal a little bit. investors are shifting the incremental cash into value sectors, that makes sense as a rebalancing move the growth stuff has given you these massive gains and you can just kind of reallocate and the other direction. it doesn't mean you have to bet against these high flyers. >> meantime, shares of zoom video soaring after reporting strong earnings. we have that story hi, d. >> the zoom momentum continues a unabated adding $100 billion in market cap this year. and, guys, that key question of sustainability, zoom answered that with guidance that also blew past expectations now if there is anything at all

to question within the results and subsequent market moves, it comes down to one valuation. zoom is nearly double its cloud pure average the growing base of monthly users are making up a larger proportion of revenue do they stay when they no longer have to? back to you. >> thank you so much for that one. mike, do you feel like the quarterly performance or share price reaction to it is the biggest surprise >> probably the share price reaction to it simply because of what had come before which is the stock had been so strong and so expensive. so i do think, you know, we were here yesterday 23 hours ago or, you know, close to 24 hours ago saying it's not surprising that the stock is up it's rewriting the rules for how fast a company can now be considered to be essentially a category killer. that's one area on web with a new platform that is dominant

there. who knows how many years it's going to take for them to justify what's going on with the stock right now and how many other competing technologies that might have to crowd out to do that. but it's very, very difficult to say that people today are wrong about ultimately where it goes >> i'll add to that as well, sara, the cfo was on "squawk box" this morning. he asked the question as to whether they see this as a winner takes all market. the response is very clearly no. and i think when we look at the share price performance before today, but including today, at least part of that is going to be some people thinking zoom takes the entire market in a way that and that is well over 50% market share and even the cfo was not saying that that was their expectation. >> that didn't dent the momentum or the thinking that they're going to capture it. up 41% barbara duran, february, barbara? when you came on the show.

you made it the last chance. it was already up more than 50%. it was up $100 you are still sitting on zoom? >> i was apologying for recommending the stock that is up that much in two months that could happen. i think part story is they were enlarging the addressable market it whats so easy to use. and i think that is happening now. it also benefiting competitors that will continue they'll continue to gain share and now they have a much more larger install base. they have a product that they have showed they are eager to start selling. i think what you're seeing with zoom, and there is a hybrid model of work. and you're going to see this is not one of the pandemic is over. this isn't going away. employers, for instance, are saying, hey, the employees even though they're dogs running in

the background and toddlers off to the side. the they're productive at home so i think this is here to stay. and they have lots more to do. so i would not be buying here. frankly, i'm not surprised at how much it is up. because of what happened with tes lashgs apple, crm, salesforce.com, any company that has reported gang buster earnings this is robin hood, traders that we talked a lot about. they're really pushing these things to extreme. i'm holding it here. it will be defensively buy here. you have to wait for some sort of correction. i think for the long run, i think stock will continue to grow into its valuation. so i still like it blooming brands soaring after bullish analyst calls. raising the price target to $1600 a share which ties it at a street high. they think it is undervalued and

poised to see accelerated gains. there is improving margins every time the stocks go up, it's a sad reminder that they're the ones that are really losing here >> exactly these are the winners and, you know, obviously going to be there. with chipotle, you have opportunity where they're still adding new locations they have a pretty good runway to continue to even just grow on an absolute basis. that's not the position even of most chains. now calling it undervalued, i mean, it's a little bit of a eye of the beholder there. it's -- it always been super richly valued. and now arguably -- it's 100 times forward earnings we can slice it any way you want

you can say sustain a higher valuation because it is, you know, this clear net long term winner but, you know, it looks like it's on the aggressive side. >> yeah. all right. the we have two -- a little over two minutes left in the trading day. what are you seeing in the market internals now as we march higher to record close potentially here for the s&p 500. >> net positive but not decisively so, sara. look it at the volume split right now. it it's gotten better throughout the day. but look at basically four to three as up to down volume in the new york stock exchange. so it's still a little bit of a mixed picture below the surface although net positive again. not necessarily outright negative we talked about the dollar earlier. on a quarter today basis, the s&p 500 against the u.s. dollar index, you can see that inverse trend now. we had that bounce today in the dollar who knows if maybe people are too lined up against it this point or didn't have that much clearance to go down again the euro did also have an important looking little peak today. however, this relationship, it's not all that's going on with

stocks it's definitely supportive of risk assets at this point. and then we have the volatility index. take a look at it against the nasdaq version before. it is elevated 26 the market is a little some vibrations under the surface it seems like there is a spring loaded action in various parts and still this very strong hedging instirvegt around the election we'll see if that dissipates at all. >> we have one minute left today. that dollar turn around today of note up .2%. the u.s. manufacturing peer relative to expectation relative to the euro-zone we've got gold teessentially flt the focus in the equity markets. the up 0.7% on the s&p 500 and dow. the dow up 200 points or so. so right near the session highs as we approach the close the nasdaq leads the charge up 1.4% as they normally do materials, technology, consumer

discretionary, the sectors up more than 1% materials up 2.7%. a massive lead there utilities and health care down more than 1% there is a spread today. record highs for the s&p 500 and the nasdaq composite session highs as well at the close for all three of the major indices. healthy gains. 0.8% >> starting september on high note in a traditionally historically bad month for stocks welcome back, everyone, to "closing bell. i'm sara eisen here with wilfred frost along with mike santoli. take a look at how we finished the day on wall street higher across the board. the dow closed up 216 points walmart was the biggest contributor to the gains biggest oner on the day. we'll talk about that. of it's up .75% move higher for the dow. fourth positive session in the last five. s&p 500 closing at a record

high up .75%. it was a day in which growth outperformed value, you did see some pockets of strength in the value trade like materials it was by far the biggest outperformer financials actually closed in the green. this is the eighth positive session for the s&p 500 in the last nine. nasdaq composite also closing at a record high. we also saw fresh intraday high. this is the eighth positive session. really strong tech names like the semis, nvidia, apple, some of the winners we've seen salesforce as well. the russell 2000 index is up 1%. had a decent day coming up, we'll ask morgue an stanley's strategist where he seize the biggest buying opportunities. you maybe be surprised at which sector he thinks investors should be putting money into right now. let's talk about this market barbara duran is still with us michael yoshakami joins us first though, to you, mike

santoli. another strong day we did get better economic data. what continues to fuel this momentum going on now five months in a row, into september was a bang little new news around vaccines or stimulus. >> right >> they had been the big market drivers. i think the market put those into the category of they're moving in our direction and within the investment window we're going to have good answers on those things. maybe not so much the stimulus but the vaccine. i think we have a pretty nasty surprise ahead of us that's not going to be disproved for a long time. i think what is going on is, you know, for a lot of the past five months, you had people badly underinvested, the shear volume of the monetary response that is the big picture stuff. i think now i could make a pretty good case we're in the fun part we're in the overshoot phase everyone is waiting for, you

know when are people really going to embrace the bull market right now i think we're in that process of it becoming this public embrace of risk that is mostly evident in those innovation type tech names and the huge platform companies and just the favorite monster stocks like apple that everybody already knows and loves. then you have this undertone of hey, the economy is getting better maybe the stocks haven't responded so much to that prospect yet so everything working in one direction. short term, i keep saying it's really stretched it's more stretched now than it's been in the past several days >> mike, how concerned are you that we're overstretched >> a little bit concerned. i think we're in pint right now where we're at the beginning stages of panic buying and i think investors need to be careful. i don't think it's time to be getting out of stocks. i think that you're -- mike is right. people were hugely underinvested over the last three or for months but we certainly are hearing from people and conversations we

have with clients as well as others that they're very, very concerned. they're getting 0% interest. fed is going to keep rates at 0 for who knows, maybe years you have dividend rates of 2% and 3% stocks are looking pretty appealing right now. i think pension funds are feeling exactly the same way and probably adding to the fuel for this market rally. >> barb, you said that you were feeling a little bit nervous about the winners which you've been riding, some of the tech names and adding a little bit to cyclicals. give us a recap of what else you're doing and what you're thinking about the market at these highs. >> i think what is interesting is the momentum traders in the certain high flyer names have real dwran ov really taken over. there has to be a shot from all the different fields and stop doing that and so i think things can go actually higher in in the same names. you see whathappened today even netflix, i've been watching that and that had been lagged.

that is another one that picked up so i think we have a ways to go. i think that the smart thing would be to start to hedge your bets you're starting to see bate. and that means, you know, as i said, i don't think is as much going on in financials i plan to prove them through the mastercards of the world there is always the j.p. morgans and city banks if you want exposure, they could respond. when you start to seat economy get much stronger, i think it's going to be a ways off not until next year. you know, in the -- you can do it in housing, home depot is a way i've been long on home depot. i think that is a nice safe place. it has secular characteristics and manufacturing, there is any number of names. or industrials whether it's the cats or deeres. you have to wait a while but you'll make money in the names i think what is going son is wht the opportunity to waiting

versus fear? you just have to be very discipline and say okay, these names i think they can go higher it is all momentum i think it could end badly and start trimming back. you have your positions and they do have great long term secular characteristics. stay long but trim back. >> michael, you disagree you like the financials? >> well, i think financials are really underbought at this point. i think the big banks are going to do well when you actual dloi have some sort of pickup in economic activity which unless there is a surprise about the vaccine news you're going to see a pickup in economic activity. i think some of the credit card companies certainly hold promise. but again, the big banks i think are really underbought at this point. they're still way below where they had been. many pay strong dividends. banks are healthier than they were in 2008 and 2009. they're going to provide some

lubrication to the economy i think there is motivation from the federal to get the banks to be active in lebdinding. i think there some opportunity of one thing i want to say real quick is investors should not be afraid even if they have winning positions in the portfolio to do something that i know that sound horrible and boring. it is called rebalancing when something made a lot of money, it's very, very tempting to let it run. there is something to be said for actually capturing profit at some of the names. and re-allocating. when does it end badly, you're not one of the people it ends badly for. something investors really should think about from a portfolio management standpoint. not just the hot stock perspective. >> that's an important reminder. just the use, mike, mike santoli of michael saying end badly, you used the word overshoot. last hour you used the worth frothy what are you looking for

what type of market is this that got you using the words that you normally wouldn't? >> i would say -- what i'm saying overshoot, i'm saying in the short term for this little phase. what am i looking at, i'm looking at basically the shear distance that the s&p 500 traveled in time relative to the longer term trends on the pure technical level, it's up to the areas where it usually means it doesn't take as much as a pullback versus tacking on further gains. it continued on for a month or two. here arguably in the fourth quarter of last year so this is not a ringing of the bell this is saying this is what the climate looks like i think the intensity of the buying of very short term speculative upside options across the board in growth tech and the fast moving high beta names is going on for a long time that tells you there is an overconfidence in certain parts of the market that leaves us

susceptible for something nasty. longer term investors, not over their skis i don't think in terms of traditional retail. its not, you know, not some checklist that you can go through and say okay, that's it. now we've seen enough. but it just is where the probability starts to settle out once you start to kind of get to this type of a persistent momentum moving in the overall market >> work from home names got a major boost in today's session zoom itself is up 40% slack higher as well was up about 4.7% bob, we mentioned zoom earlier are there any other ones that i mentioned that could still benefit from the theme that haven't run up so much already >> that's the question which ones have not run up that much and i think when you look at the docusigns of the world, people pretty much picked over, you know, the high growth names.

as soon as you see one, like you saw this with tesla. any of the electrical vehicle stocks all ran up in tandem. there are is very little overlook i think you have to go into a very different category of stock. you have to look in that direction. docusigns of the world, they're well recognized at this point. >> it does sort of raise a question, michael, about whether the work from home stocks are still the place to be in this market people -- you know, all the time people kept saying on the network we're going to get a vaccine. then we want to be in the reopening plays. if you look at the biggest winners, it is airlines and a lot of the reopening plays like hotels but then zoom comes out and reminds you that there is still a ton of business going into this part of our economy

st so what so what do you do? >> it's interesting. if if you look at the hotels, you look at the airlines, they really haven't come back to where they were. they just come back from horrendously low levels. probably they were oversold. just the uncertainty related to the virus. but there certainly is going to be a cataclysmic shift for the names that are really focused on more face-to-face meetings so i still think you have a combination of two things. i think you can still have work from home sort of technology stocks that are in the name. they can -- that are in the secto sector they can still run. it's not an either/or situation. you can still have airlines, hotels, travel web sites that can still bounce back.

wh people start to travel. there is just not going to be as much face-to-face contact but there is going to be more obviously than we have now i really think you can win in both areas as long as you're very, very careful not to be buying on really hung momentum moves. as i said earlier, i think we have momentum news or as mike said, it's frothy or whatever term we're going to use. i think it's really not an either/or. they both can do well. >> i'll make a rock solid prediction about this, sara. when we get closer to sort af back to normal type feel, all of these stocks and the people that cover them are going to say actually they're not purely work from home plays. will actually, nobody's going to cancel zoom. employers are going to keep, you know, the flexibility. they're not going to stop the monthly payments or annual payments guess what pel i t peloton has an install base out there. whether the market is going to believe it or it's already overpaid for that is unclear >> no. it's really good point

some of this is with us for a while. speaking rev opening, we have news on amc movie theaters julia has the details. >> sara, amc announcing they're opening more of the theaters announcing by september 4th, moviegoers can watch tenant. that is the big move you to be released in theaters since covid-19 at approximately 70% of amc's overall u.s. theater count saying they expect to resume operations at 140 addition allocations this week. the vast majority reopening on thursday now the company also saying that something crucial about california california is one of the biggest movie going markets and the theaters here in california remained closed. amc now announcing the first california amc will reopen in san diego september 4th with the requirements based on the directives set forth saying they expect to make announcements in california, new jersey, and

other areasst country the coming weeks when allowed by local ordinances it's really crucial to see that the stock is up 5.66% in after hours trading. there is hope. there are plans about reopening theaters in those crucial markets such as california and new jersey guys, back to you. >> new york still not on the list >> new york is not mentioned california is the one why we were waiting for some comments to know when that would reopen they mention california and new jersey i don't see a mention yet. >> i'd be tempted. tenant looks great it will open in the uk last weekend and got excellent reviews. so i'd be tempted. >> guys, new york governor andrew cuomo said that movie theaters don't qualify for the reopening yet. he doesn't see them as essential, he said and as a priority for opening. we talked about it with the ssie mark waiting on government officials is the case. >> julia, thank you.

>> our thanks also for barbara doran and michael for the discussion 18%. much that's how much this sector has fallen so far this year. we'll ask morgue an stanley's u.s. strategist why he thinks it could be ready tbro eak out higher we're back in 90 seconds

financials are down 19% year to date.

the next guest says the fed's recent shift inflation targeting without in i control could lead to a bullish outlook for the sector joining us by phone, mike wilson at morgue at morgan stanley. the banks themselves within the financials are down much more than that. they're down 32% year to date. but before we get to the call, what do you think the ime implications are for the yield curve and inflation? >> thanks for having me. that is why he would step into the pool today i think the if fed has done a really good job of doing their role of providing support to the markets, making sure credit and equity markets are operating well and providing support to the economy through various

programs even if inflation were to show up, they're not going to react to that. the idea that they were going to pin rates at the back end, there is always people holding out hope for that they threw cold water on. that not once but twice. last week chair powell had an opportunity to back that down and he didn't. the message is clear by the way, i don't know why the fed would fear back end rates moving higher if they're going up because we're having a robust recovery which is what is going on they want money supply growth and they want the banks to do well, you know, look a flat yield curve does not help them in that regard it does seem like there is a shift there. markets did react a little butt. i don't see a lot of down side for the economy. >> i guess, mike, clearly there

is scope for rates to be able to be permitted to rise if the ingredients are there. we had had a lot of false storms for weather rates will rise and with that a lot of false stones for where the banks are due to rally. st what is the catalyst that means that's a big change that lasts as opposed to a flirtation with it? >> that's a good point longer term, who knows even in the last, you know, recession and recovery, great financial crisis, we did -- rates did have a pretty powerful move in 2018 if we get the cares package passed and into next year. we have a vaccine and perhaps a combination, the economy continues to reopen. get the election behind us, that's bag, i think, overhang,

you can see rates up significantly on just better growth outlook and the break even market, as you know, has been reflecting better growth and expectations about inflation next year already. 180 and 185 on a ten year break even the ingredients are already there. a lot of the equity market beneficiaries of higher rates, things like commodity, you know, material stocks and industrial stocks small mid cap companies, they're performing exceptionally well since the lows in march if you look at commodities and gold and things like that, they're telling you the same message. only strument th only instrument that hasn't confirmed that is because the fed is going to pin rates. they didn't tell us that last week, did they >> no. st so i want to get to what it means for stocks especially because i feel like we should give you big props for coming out in march and saying

best risk/reward in years. really calling the bottom and having a tremendous call now that market is up almost 61% from those march lows. you are telling investors to still keep buying stocks here? >> thanks, sara. the reality is we've come a long way in a short amount of time. and if i'm honest, you know, there is no way i thought we would be this far along this quickly. i thought we would be in this direction. we overshot the near term targets. that's good thing. the big store you that we're excited about is the operating leverage that we see in companies next year as the economy comes back we're seeing early signs of the operating leverage coming back with a small snap back for companies that cut costs and in this recession

the cost cutting is going to be even more significant. i remain constructive over the next 12 months i think we're a little overtook cooked i agree. it's impossible to time these corrections. would not surprise me if we got a 10% correction i wouldn't surprise me if we didn't either. it's a bull market 2021 is going to be a good year for the economy. >> calling back on the banks to potential risks of them in your level of concern for each one is if we get that broad tech market pullback does that hurt the banks too even though they're not part of the recent meltup. and the election let's talk about the second one first. this is, i think, another big overhang one of the reasons why banks have not done well is because ten year yields have not moved

up the other overhang is blue sweep. that's what the market is similar pricing. and the idea that regulatory, you know, environment is going to get worse i would say the regulatory environment for all of the hoopla has really not improved that much. there is a lot of constraints on banks for the most part in terms of ability to return capital i'm not sure it is that much more onerous at the end of the day. secondly, the polls are tightening in the last week or two. even if the chances of a blue sweep go down, that's why you get the regulatory concern as far as rotation goes, look, i don't think the tech stocks have to necessarily get killed for bank stocks to work or vice versa. i think the reality is that it's been a broad rally since the lows we were looking -- we're now looking -- because the rally is so sharp, we're looking for areas that have been somewhat left behind. and that's really the call

behind on financials call this past week. there is a group that the quality of the companies is much better we're prut, you know, positive on rates when we hire. positive on the economy. and so that is a pretty good pitch from us from this point. mike wilson, always good to check in with you. thank you for joining us >> thank you >> morgan stanley. up next, we have different way of looking at the exploding level of corporate debt. plus, walmart scoring 6% today as it unveiled a new subxripgsz plan taking on everyone from amazon to costco and shares have hit an all time high dating back to the ipo in 1972 we'll dive into that strategic shift next stock slices.

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. 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.

schwab. ♪ if i could, baby i'd ♪ how can i, when you won't take it from me ♪ ♪ you can go your own way ♪ ♪ go your own way your wireless. your rules. only with xfinity mobile.

another double record close for the s&p 500 and nasdaq like at mike santoli looking at that pile of growing corporate debt >> it's a big concern. there may be a mitigating factor, maybe not as worry so many as you thought. this is the median companies gross leverage how much they have relative to the cash flow. you see this looks scary, right? way higher than it was in the early 2000s.

but if you deduct the cash holdings that companies are allowing to pile up, it is not as scary it's about that level. the burden of carryinging this debt is lower than it was back then it seems like maybe the corporate sector dodged a bullet here much it seems as if we can skate through unless you see a further down turn in the economy from here of. >> so net leverage is absolute debt less cash >> yes >> interesting mike, thank you. >> quwalmart will announce the competitor to amazon prime this month. we'll ask if amazon should be worried. find out whether he thinks walmart's pursuit of tiktok is a smart strategy decision. we're back in a couple minutes toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it.

you can finish. - [announcer] finish your degree at snhu.edu.

woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

to scan and go app for walmart and discount on the gasoline the service is set to launch on september 15th joining us to talk about the opportunity here is bill simon, former walmart u.s. ceo and president. how do you think about what walmart is after here? do you think they're trying to take share from amazon or customers who want to do both >> this is not the first time that walmart tried the subscription services. this is maybe the fifth time they have given this a shot. it's something they coveted for a long time. this one is different though in that it takes a couple of different elements and puts it together raily what walmart is trying to do and been the secret sauce for

many years in particular with the super centers is to try to take the traffic in this case clicks that generated from a robust food business and sell general merchandise to try to help make their digital online business profitable. they can probably get to profitable here. can they really compete with amazon on that front and the third party sellers and products and the lead that amazon has in terms of gaining subscribers >> no. i don't think so i don't think they're go amazon is really limited to several markets, you know, through the whole foods acquisition and the other element that's they're trying to bring.

walmart can reach 90 plus percent of the house holds with the food business. leveraging that food business to try to sell gm is really where they're trying to go i don't think it's a competitor to amazon. everything is. but i don't think that it's a direct competitive move. i think it's an attempt to lefr leverage the food business >> is it an opportunity for walmart that amazon had had such huge growth in the third party sellers to differentiate itself in that respect and try and maintain an image of better quality or more certain brand imanl? >> i don't know. i don't know that i necessarily would agree with that. i think walmart has, again, long coveted building a third party or a marketplace like amazon has. they've been trying to do that for a while now. added a lot of, you know, third parties. but nowhere near what amazon has. i just think because of the competitive nature of it walmart hasn't been able to do it, you

know, once you built the platform, the more you can run through it for a fee, that's really profitable business selling third party and just collecting a fee if it they can do it, i think they would do it >> speaking of walmart's push on line, what is the interest in buying tiktok? >> i could do a tiktok dance, i would do it for you. i can't so i wont. you know, it's really interesting. the street and investors have really cheered everything digital. and, you know, the announcement today on walmart plus which is, you know, interesting but hardly earth shattering and the stock is up $8 today or something. that is crazy. everything is digital and is being rewarded right now i'd be a little cautious they didn't turn into much jet is gone already. you know, benobos and in it

china, you know, too early to tell on flip cart. you have to be aggressive in the space. it's an asset that i think would reach a lot of people that if walmart could get their hands on could leverage into some business >> what do you need leverage it into precisely, bill it is just something that they can use some of the machine learning and help the online retail business? or is this an attempt to reinvigorate the video streaming service that you mentioned that there was noes particularly successful, something like that? they would like to have the data from people that have the app and use the app and, you know, how you leverage that into potential advertising revenue.

you can sell that to a younger generation to bring young folks into walmart tlcht is a lot of opportunity for them if they're able to figure out what to do with it. it's going to be challenging in this case, if they have a partner like microsoft, you know, i think that's probably bodes better for them. >> time for a cnbc update with sue herrera. >> hello, everybody. much here's what's happening at this hour. president trump visiting kenosha, wisconsin viewing damage to local businesses, speaking to law enforcement officials, and promising to help rebuild. president trum dp not speak to the family members of jacob blake. today the community gathering blake's family speaking out against days of violence following the shooting by police and repeating their demand for justice. >> the u.s. will not join a global effort to develop,

manufacturer and distribute a coronavirus vaccine. a white house spokesman says that is to avoid being constrained by organizations influenced by the world health organization and china which he describes as corrupt here's a little something to look forward to olympic games returning to the u.s. in 2028 organizers have already released the emblem for the games in los angeles. those games will be broadcast by nbc universal. the parent of cnbc >> pretty cool logo too. you're up to date, sara. back to you. >> all right sue, thank you >> coming up, a fascinating shift in another sector. car sales accelerate but auto makers are still suffering from plant closures in the first half of the year. now ford is announcing layoffs we're going to talk to mark fields on the other side of this break. it's a thirteen-hour flight, that's not a weekend trip.

fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ tools, cattle, grain, traded goods. even shells represented value. then currency came along. they made it out of copper, gold, silver, wampum. soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. that's why it's time for digital currency and your investment in the grayscale funds. go digital. go grayscale.

♪ i got it all from you ♪ i'm always pushing through ♪ i know we'll make it to the finish line ♪ ♪ i know you're waiting on the other side ♪ ♪ i'm like you

on-demand glucose monitoring. because they're always on. another life-changing technology from abbott. so you don't wait for life. you live it. shares of ford higher today following a report that company plans to cut 1,000 salary jobs in north america the layoffs come on the heel of it cutting 7,000 salary positions worldwide last year and amid ford's attempts to execute its $11 billion restructuring plan joining us for more, cnbc contributor mark fields. a i havery good afternoon you t mark >> thank you >> i want to talk before we get to that ford news about what you make of the sort of reinvigorated second handcar sales market across the u.s. and whether that, i guess, a temporary positive for just numbers of sales but whether that is a long term negative for

the automakers if people kind of have been reintroduced to what you can get in the second handcar market >> well, not necessarily i mean, if you look at the new car markets, basically folks that have a certain income level. they're more wealthy and tend to always want new cars i do think to your point on used car market, you have an interesting situation here right now where the used car market is pretty buoyant and the prices of used cars are quite higher than the experts predicted. and that's a combination of two factors. one, you haven't had some of the large rental companies defleeting yet that will come in the fourth quarter. and then secondly, you have a lot of low mileage leases that the automakers have given -- have customers have bought them and they provided extensions for those lease ends during covid-19 those now are coming due so those vehicles will be coming back into the marketplace.

i think you'll see that reverse in the fourth quarter where used car prices will go down precipitously which could help that market even more. >> talking about the sort of big themes that we might have experienced in 2020, is there an element with which people might have fallen back in love with driving, perhaps people that over the last five years had been drawn towards ride sharing, uber of this world and have bought a car and now won't go back to uber's and lyfs as they have done beforehand >> well, i do think if you look at factors like folks that are moving from the urban centers into suburbs and things of that nature as well as millennials, kind of coming into the life stage where they're having kids and things of that nature. that was already starting to help the car industry where you have more car ownership. i do think with covid-19, you know, folks are probably thinking of cars not only as transportation but almost as personal protection equipment.

and so, you know, rather than getting on a plane, they'll drive to their vacation area or wherever they want to go to. or rather than taking mass transit into their jobs, if they go into the jobs in the future, they'll feel much more comfortable with their own vehicles there's a lot of puts and takes as to what p p happwill happen e industry >> we have a solid print today, mark, on ism manufacturing overall. what is your sense of how fast auto production though in particular has come back online as we're still dealing with the fallout of the pandemic and now this increased demand? >> well, the biggest problem right now for the automakers is getting labor. on the automaker side, you're seeing higher levels of absenteeism because of, you know, employees, covid-19 concerns, whether they have folks at home that are elderly that they live with or have pre-existing conditions.

you actually see some manufacturers either cutting shifts or hiring more temporary workers. but then even if you solve that problem, it's all about the supply base. unless you have a parts flow coming to the plants, you won't be able to operate them. so the biggest problem in the supply base and, again, is it's tough getting labor, right, because you have a number of employees that, you know, they have high absenteeism for the covid-19 related concerns i mentioned earlier. and that may seem odd, right, in if an economy where very wwe have unemployment over 10% the bottom line is jobs on the factory floor, and these are hard jobs, physically taxing, different than johns lost due to travel or retail or things of that nature. and then second airily, a lot of the plants for the supply base are either in suburban or rural areas. so the populations are less. you are don't have as much to draw on. so slab not exactly fluid.

so i think the biggest challenge for the industry of going forward in the last four months of the year is getting production to where they want it to be particularly with suvs and full size pickups. that's where the demand is right now. >> mark, as i'm sure you've been following tesla just keeps soaring higher and higher. a fractional pullback today, when we look at the competition out there, if you want to point people to the most likely challenger to tesla in the ev space, which of the traditional automakers is closest competing? >> you have a situation where tesla has the market basically to themselves the last five, six years. now they have competition. so when you look at folks like volkswagen which are -- they introduced the iv 3 which is the hatch back in europe the id 4 which is more of a crossover. it's coming here to the u.s. in

early next year. i think they're being very aggressive general motors, they're going to introduce 20 models over the next two years you have ford coming out with their mock e you even have folks like hyundai that have taken their brands and dedicated it to electricity. i think when you look at those establishes players, plus the new players particularly in the pickup space, whether it's some of the others, it's a little bit of a free for all and i think you're going to see that play out over the next, you know, 18 to 24 months the products are going to be showing up the question is for the consumers. >> and just quickly, as it relates to the layoffs that he mentioned from ford, the fact that we're seeing it from a lot of other companies, the furloughs are becoming more permanent. some of them have to do with the

pandemic some in the works for a while. given what you said about how hard it is to get the auto manufacturing back up to speed, what is your expectation from whether we'll see more layoffs and from whom in many the sector >> i think you have to kind of parse this out you look at the layoffs announced by the automakers over the last month or two, it's really been in the staff positions, the whitecollar positions. on the factory floor, you know, not seeing -- you're not seeing the cuts unless an automaker decides to close the plant i think what you're seeing across the patch not only in the auto industry but across every industry, i think every ceo has gone from, you know, let's ride this covid-19 situation out to let's reinvent the business. and so, you know, i think in ford's case, the new ceo jim farley is looking at the operations and saying what does it take to be efficient in this post covid-19 world? so he's taking actions and you're seeing many other

companies taking those actions to adjust to their assumptions on what the post covid-19 demand is going to be for their products >> mark fields, thanks so much for joining us >> you bet thanks, guys still to come, $1 billion that, is how much mcdonald's is being sued by dozens of franchise owners we'll explain when "closing bell" returns. i had saved up some money and then found the home of my dreams. but my home of my dreams needed some work sofi was the first lender that even offered a personal loan. i didn't even know that was an option. the personal loan let us renovate our single family house into a multi-unit home. and i get to live in this beautiful house with this beautiful kitchen and it's all thanks to sofi. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

and tailored recommendations. ♪ 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.

up next, mcdonald's under fire the fast food chain facing a new lawsuit. this time it's from a slew of former franchise owners.

woman: my reputation was trashed online.

i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

. mcdonald's facing a new lawsuit. the company now being sued by 52 former black franchisees over racial discrimination. >> that's right. that group represents more than 200 mcdonald's store locations the group is claiming that the company sent them on a, quote, financial suicide mission by giving them locations with lower volume sales and higher operating costs including security costs due to crime, denying plaintiffs support to

allow them to overcome financial hardships while supporting white franchisees. the suit alleges that in 1998 there were 377 black franchisees which has now been cut in half to 186 during a time in which store count has more than doubled to 36,000. the company, quote, categorically denies these allegations, adding mcdonald's does not place franchisees into locations but may suggest locations, that cash flow for black franchisees has been improving and while there has been consolidation, across all demographic groups the overall representation of black operators in the company is broadly unchanged. >> kate, how does mcdonald's generally stack up when it comes to these inclusion measures?

i'm asking because we've looked before at board levels it's so easy to find companies where it's an all white male board, but mcdonald's is not that it's got gender and racial diversity on its board and it's had in previous management it's somewhat surprising this is an issue. >> certainly true. we've seen under the new ceo even more of a focus according to some of the points he's put forth on diversity moving forward. as you said, definitely diversity within management. companies aren't broadly really publishing numbers as to how diverse their franchisee bases are. but we've heard a bit more from corporate leadership about wanting to diversify the owners of franchise locations domino's, for example, now has a black franchisee opportunity fund i think in the coming weeks there will likely be more of

that to come >> it's a reminder for companies. it's not just at the top up next, it's shaping up to be a big day for retail tomorrow the key things you should be watching nin the s&p 500,nies 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.

looking ahead, we're going to get a key read on the consumer tomorrow. macy's, guess, pvh and five below just a few of the retailers to report results. we'll also get costco's august sales after the bell for macy's, it's one of these survivor stores. we're also going to have an

interview with the ceo of pbh. i think for macy's i was just going to say the key is going to be e-commerce and online sales this is the definition of nonessential retail and a category apparel and accessories that have been so hart hid hit. the question is has the stock been cheap enough. the results lately have gone from bad to worse. >> obviously they're going to be able to point to huge year over year games in e-commerce as they pretty much always do. they don't really give you the absolute numbers it is also just a balance sheet story. they did raise some more debt. it's a pretty tough situation. i think more generally, of course, if you go back three months ago, all the retailers said april was the bottom and since the close of the quarter in may, things have gotten better i mean, no kidding, but that was a big help to the stock.

the question is, what's august look like relative to the last quarter? >> the ftse 100 down 1.7% today. not taking part in any of ma melt-up we got into the close. we'll see if the u.s. sentiment can pick up overseas and whether it will continue the nasdaq in particular and u.s. more broadly outperforming. "fast money" starts now. i'm melissa lee and this is "fast money. guy adami, pete najarian, dan nathan and steve grasso. tonight we'll be joined by marco and his provocative prediction about the election what it could mean for your money. we've got a new game we'll see if the traders can keep up. plus, need a vacation? pete has a fast pitch on one travel stock h