tv Closing Bell CNBC September 2, 2020 3:00pm-5:01pm EDT
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names in the market. >> if the sexy stocks aren't taking place, you're looking elsewhere, looking at proctor and gambles at all-time highs, nikes at all-time highs, some others we can point to the health care sector at an all-time high. a lot of those stocks just zooming. >> bingo thanks for watching "power lunch," everybody. "closing bell" starts tomorrow. >> see you tomorrow. >> it certainly does good afternoon, welcome to "closing bell. i'm wizard frost with sara eisen. stocks zooming through, s&p up 1.2%, nasdaq underperforms that's a turnaround that started after the open early this morning. it was the other way around. either way, indexes are high bit afrotation high tech names like apple, zoom, as just saying, beaten down par of the market utilities. lamb research, micron, nvidia at the top of the leaderboard right
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now. new data points to a sluggish economic recovery as payroll, points in the beige book shows a modest increase in activity. 59 minutes until the close we're set to have another record highs for s&p and nasdaq up 1.2% on s&p 500, sara >> it's utilities leading the way higher for a change. coming up on today's show, galaxy digital back to weigh in on the rally as it carries over into september we're going to ask where he's putting money to work right now. we've got an interesting mix of earnings coming your way after the bell, including work from home like cloud strike, those are hot, hot cloud companies apparel company pvh and we'll talk to manny tirico, calvin klein and tommy hilfiger mike santoli tracking market action as always steve liesman with new highlights from the fed's beige
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book joining us to talk tesla and pullback we're seeing is craig irwin from roth capital. mike, start us off with the market every group is higher except for energy you do have utilities and real estate and health care on top for a change. >> right, sara, it is defensive. laggards having a bit of a moment right now a little mean reversion, some big high flyers pulling back it is a positive if high momentum names can back and they must we'll see if that continues. there are erratic things you can point to that maybe say it's not going to last that way here is what i wanted to highlight. year-to-date s&p up 10.5%. that's without dividends, over 11.5% total return that's a shocker, i think, because you have a minus 34 in the middle of it you're doing better than the annual average already at the beginning of september it still does leave the idea that maybe we're due for some kind it's been true for a little while, just becomes more
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extreme. nasdaq, the sort of more extended example of this first of all, really inbound, steady, uptrend. what's fun, you extend it out, what was happening before the crash, it's kind of parallel lines. this is the track we've been following, just got interrupted briefly back there i also would say you're looking at something around a 6% pull back if all this index does is pull back to the same sort of line it's been tracking for a while. in other words, still staying in the uptrend. you've got quick 6, 7% off the top is what it would take to revisit the same old line we did four or five times since may different story with equal waited s&p, struggling higher, moving in the right direction, still not quite to those june 8 highs, the maximum enthusiasm about the reopening. it shows not fully democratic, all-inclusive rally, still in tact with mega caps and some momentum names a little vulnerable in the
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short-term, guys. >> is the economic data still coming in much better than expected to justify these kind of gains in the market and in the outlook? adp private sector jobs was a huge miss. i know it's not necessarily correlated with august jobs. we'll get it friday, claims tomorrow what are you seeing in the data? does it make sense >> does it make sense? i don't know how well the market that done. in general the economy early recovery, ism index manufacturing did bounce back better than expected the overall economic surprise index, which shows how much the data coming in better than forecast has pulled back a little bit it's not as if it's as rich as it was a little while ago. there's a little bit shaking up of that relationship i don't think we're necessarily trading right now on the week to week numbers as much as we are about the general fogs we have tail winds here in terms of recovery, easy fed and also the
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animal spirits that are anima animating the growthier parts of the market purchase mike, thanks look forward to discussions as we look forward to the record close of the s&p and nasdaq. the beige book released. steve liesman has a look at the highlights of that report for us high, steve. >> hey, wilf yeah, the fed's beige book reporting economic activity gemelli increased across most districts but provided some warning signs for the economy as it continues to struggle with the pandemic consumer spending toipd pick up with gains in retail, tourism. a slow pace of growth in these sectors. in addition residential construction was termed a bright spot for the economy but commercial construction was widely done. finally the overall outlook was modestly optimistic with continued uncertainty and volatility related to the pandemic unemployment increased overall
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with gains noted in manufacturing. some districts noted slowing job growth there were said to be rising instances of furloughed workers being laid off permanently at the same time firms reported difficulty finding workers stemming in part from the trouble workers themselves have finding daycare. lastly on inflationary pressures that increase, supply problems or surges in demand, for example, for lumber. sara and wilf, it's an interesting economy. the market seems to have blinders on that everything is getting better the fed beige book says it's getting better but there's caveats along the way. >> certainly caveats along the way but got some good pmi data sum up what we learned this week for us net positively surprising surprising or not? >> we are positively surprising, though quite a bit -- it's only wednesday, wilf, i don't know if you've checked your calendar
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yet. >> it's been quite a long week, feels like thursday. >> how is tomorrow not friday. i know how you feel. some of the high-frequency data we're following has been flat, the pace of growth has come off. adp number was not good. the manufacturing sector is coming back. what i think we're picking up in the manufacturing data is the restarting of some of these factories, wilf. so i'm not sure we're getting net positive growth from february but we are getting the pickup and the restarting of these factories and that's all been very positive surprising to the upside. >> steve, great stuff as always. thanks so much for this. shares of tesla down 6% slipping from an all-time high. this comes after the company's biggest outside investors reducedest holding tesla announced yesterday it plans to sell up to $5 billion in new shares. let's bring in craig owen from roth capital partners, mutual rating on the stock and $150 price target craig, thanks so much for joining us you've got an interesting possible explanation for the pullback over the last couple of days it's election related.
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>> yes over the last six weeks lots of clients have been coming in to us for sustainability coverage wanting to know which stocks have the most alpha to democrat versus republican win. there's been a lot of chatter coming for our traders of the same theme so if you look at the betting averages today, it looks like we've had 50/50 average met on the average of the betting sites and the hedge funds are just assuming it's going to flip in the favor of republican administration that's causing selling in sector, people taking off the trade, no longer expecting like a green new deal or massive subsidies and investment for sustainability-related projects and companies. >> but that assumes that under republican administration it wouldn't be good for tesla when tesla has had this monumental price during the trump years so is that correct
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>> i agree with you there, but people trade these things for catalyst personally i look at this and i say small bridges. the republican voters out there tend to be the hunters and fishermen of the country, and they tend to love the environment just as much as anyone living in a democrat stronghold wants clean air an clean energy for their own energy use small bridges. i think this is a sector that can be embraced by people on all sides of the spectrum but it doesn't impact the behavior of short-term traders. >> craig, neutral rating but 150 price target there's a bit of a gap there. >> yeah. so tesla is being valued today, i believe more as an autonomous company than a car company they are going to have a hard time making 500,000 units this year but their valuation is comparable to the rest of the
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automotive industry combined my message to clients, we love what they are doing, definite leverage they can pull for accelerating growth. they are going to execute well we think there are much better investment opportunities across the sector >> you do raise a question, which is what's driven the gains in terms of who has been buying tesla. how much of it do you think is this retail phenomenon versus what you're seeing on the institutional side from hedge funds. >> so retail is a very large part of the velocity trade in tesla. that's really what's caused, you know, very large moves since earnings there are a number of hedge fund trading desks that are piling in obviously fund managers that can't buy the stock in their funds. many of them bought it in their personal accounts because people love the cars. if you drive the cars, they are great cars it is very much a retail trade but there are some fundamental
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investors, particularly people looking at 7,000 for full self-driving and model-free. they buy elon's dream of been 100,000, robo taxis. that is the crowd of investors we see more active as far as institutional investors accumulating shares. >> craig owen, thanks for joining us. >> thank you. >> tesla down 6.5% as we speak off its session lows. breaking news on a potential buyout of kansas city southern. >> hey, which, that's right. kansas city southern up 5% potential is the key word. blackstone and partners submit a bid, valuation of $17 billion. it is not clear if the railroad company will accept that offer remember, these guys previously put in a bid the railroad company rebuffed new bid at $17 billion
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this is according to dow jones reporting. you see the stock up more than 5.5% guys, back to you. >> eric, thank you. after the break, macy's is the latest brick and mortar retailers to blowout digital sales. we'll discuss the shift online and how long the guard can ride out this crisis. former ceo of sears canada you're watching "closing bell" here on cnbc 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
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welcome back dow up 400 points. don't call it a data dump. throughout the day on yncnbc, we've been taking a look at every day items. this might make new parents mad, the price of disposable diapers up 8.8% last year part of a larger trend of inflation in household goods and groceries, so many jokes there. stick with retail, macy's, smaller than expected loss and
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inventory levels down 29% from last year, digital sales were a bright spot. they grew 53% from a year ago, a trend evident across many retail brands, essential names where physical stores remained open. macy's very much not that case joining us former ceo sears canada he has 25 years experience in the retail industry and currently the director of retail studies at columbia business school great to have you. what is the future of macy's it's hard to figure out? >> well, they were certainly struggling on the way into this crisis i don't see anything about this crisis that suggests they are going to come out in any kind of stronger position. i think the comments that their ceo made today are particularly disingenuous he's looking to gain market share from failing luxury players. he claims lord & taylor is a luxury player. lord & taylor hasn't been in
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luxury for years it's not meaningful enough to make a difference, at least not yet. i think bloomingdale's has all the brand authority to prosper in the luxury space but outside of a handful of very high-profile locations, macy's certainly does not as far as a new off mall strategy, well, i think that's completely wishful thinking at this point. >> so do you see any hope for any of the department stores or smg dead money, that category? >> i think the category in decline, the pandemic has accelerated that decline i don't think there's anything on the horizon as you look past the pandemic that suggests these banners, very few of them that are left, will have any lasting relevance. frankly the walmart, target, cost costco, amazon of the world are
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gobbling up market share. they have been doing that prepandemic. they are certainly taking tremendous advantage, if you will, of the crisis that we're all in consumers have been shifting away from these dinosaur-like stores called department stores for a very long time there's nothing they are doing today, any of them, that continue to do business, that suggests they are going to be highly sought-after in the future. >> when we look at who will be the winners and losers in the last four months, mark, which has been a bigger key factor, being ready in terms of e-commerce and having that very well built out or being designated as an essential retailer >> there's no doubt being an essential retailer gives an enterprise an enormous leg up on all those who have been forced to close having things that customers eagerly want to buy, groceries, home supplies, home furnishings
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certainly is tremendously valuable in this period that we're living in versus folks like macy's principally focused on apparel and accessories so being able to be in business is an enormous leg up. but coupled with that is the capacity that some of these players have had in building out their credibility in the commerce space the ability to present and trans act to customers eager to procure things they don't want to have to shop for physically credit amazon for creating this revolutionary channel change, give walmart and target credit, costco as well, for getting in on this change in a very, very big way. and the investments they have made are paying tremendous dividends at the moment and they will continue to pay dividends in the future because this shift e-commerce, though it's not
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going to completely consume brick and mortar, is going to continue to accelerate once this crisis has passed. >> mark, when you teach your course next on the death of department stores, are you going to blame it on management? because if you look at a company like macy's, historically they have had top tier management, terry lundgren, previous ceo, karen, longtime cfo beloved by wall street during the growth years. not the current generation do you see this as preventible with the right management team >> well, sara, first off, i don't teach the death of the department store the course i'm teaching starting next week is a master class in creating a retail enterprise literally from scratch, so i'm focused on the future opportunities that retail poses which are enormous because there are no lack of customers on the other side of the crisis there will be a recovery and a
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boom if you will i spent 14 years at federated, predecessor of macy's. so forgive me for making a very pointed remark here, but i don't share your optimism or your praise for past management i think macy's played a last man standing for decades and now they have run out of gas they have hollowed themselves out, putting them in a position where in a crisis like this they have nowhere to go it's one of the principle reasons why their business was failing before this crisis occurred so, you know, success and failure is always a play on leadership, good, bad, indifferent. i don't think federated then macy's now macy's, has had the benefit of that. in contrast to enormous leadership component that amazon, walmart, target, and costco represent.
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>> what about other department stores, mark, including sears where you used to be a leader. it's not like any of the department stores look like they have been brilliantly positioned for the current retail environment? >> well, sears isn't even worth talking about. they don't have very many stores left by this year's end, i suspect they will disappear have view completely it's anybody's guess whether jcpenney will linger and die or find a life line there's apparently quite a bit of discord among creditors as to what the future will hold. lord & taylor, as you know, has announced complete liquidation, they are off the table nordstrom's is starting to recognize the fact that while their rack business has been growing and their department store business has seen a tremendous shift of customers from physical shopping to online, i think 30 to 40% of their business prepandemic was
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being done online, soner seeing the reality they have to consolidate further. anybody's guess what to make of the outcome of the neiman marcus bankruptcy they will invariably shrink back to a smaller number of stores, stores they should have stuck with at the very outset, then hbc sack's enterprise. they have positioned themselves for the demise and the pandemic is hastening that outcome. no other way to look at it. >> mark, thanks for joining us. >> you bet. >> the rally really picking up steam with 37 minutes left of the session. we're at session highs, up over 1% for each of the major indexes. the nasdaq just shy of that, close to the level 1.5% for the dow
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session highs, 1.5% on s&p and dow. thousands of up coming furloughs. phil has the story for us. hi, phil. >> this is news we expected. we knew at some point these are the number of jobs telling people you're going to have to be furloughed. people have taken allotment of voluntary retirement, voluntary leave, at the end of the day 16,370 employees we're not going to rundown all the categories but big three, flight attendants, 6,920, pilots
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2,850, airport operations, 2,260. here i why passenger levels have not rebounded. they are preparing for a slow, very slow recovery as you look out over the next 12 to 18 months right now down 5%. when you look at american, delta and southwest, keep in mind that total number of furloughs announced so far, just over 37,000 that's basically american and pilots at delta. southwest is trying to get by without having to lay off anyone starting september 1st expect more of these announcements from other airlines over the next couple of weeks. >> phil leb oweau, thanks for tt >> pvh, we'll get the numbers and follow it with an exclusive interview with manny chirico a check on bonds, mixed action in the treasury market
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yields over the last four or five sessions having spiked last thursday when we got that announcement from the fed, allow it to go higher, much lower over the last five sessions, 0.65 on the ten-year 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.
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this comes after new states are flashing warning signals alabama has the highest rate of tests in the country, nearly 33%. that state is seeing a rise in cases with more than 1500 reported just today. south dakota and iowa also reporting high positivity rates. some promising treatment development today, though. new data showing an inexpensive class of drugs called court come steroids reduces death by one-third in severe patients w.h.o. issuing guidelines based on the data saying steroids should become the new standard of care for patients with critical covid-19. so backing up the dexamethasone studies, wizalfredwilfred. >> hi, sue. >> here is what's happening this hour we will continue with news cdc told states to prepare for covid-19 vaccinations as soon as
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late october early november. vaccine supplies would go to health care workers and other high-risk groups a minnesota man the first reported to die from covid-19 after attending the sturgess motorcycle rally in south dakota last month cases among people who attended that rally have been reported in a dozen states. in france more than 7,000 new cases were reported today marking only the third day at that level since the pandemic began. and in italy, former italian prime minister silvio berlusconi has tested positive for coronavirus. he was recently photographed with the owner of a nightclub, which has been tied to more than 60 infections. you are up to date that's the news update this hour sara, i'll send it back to you. >> sue, thank you. we've got just about 27 minutes left before the closing bell here is where we stand in the markets. a very strong day again today. dow, nasdaq, s&p and russell all significantly higher s&p rising 1.5%.
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it's being led by some of the losers lately like utilities and real estate stocks also health care on top. dow up 440 points. we're building into strength here spot close. up next air jordan's magic touch. the nba legend teaming up with draftkings but it's far from his first for ai into the business world. a closer look at the jordan effect next. later galaxy digital mike nuovo gratz tells us where he's putting his money coming up on "closing bell. [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught.
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draftkings making a big wage on one of the most celebrated athletes of all time, and gamblers shares rallying after michael jordan will join the company as a special adviser to its board of directors as part of the deal jordan will receive equity interest and offer his expertise in areas such as sports company strategy, development, diversity it's far from the first corporate win for the nba legend we decided to look back. jordan majority owner of charlotte hornets, part owner of washington wizards and part owner of the tequila brand endorsements from nike, mcdonald's, coca-cola, wheaties, gatorade jordan's superstar power helping espn score big its ten-part documentary
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focusingoon epic run with chicago bulls ampling averaging6 making it the most watch documentary ever my only question is draftkings is adding more than a billion dollars in market value today. i get it with oprah and weight watchers, she brings in fans, consumers. i get it with kanye west and gap, adidas, he's a designer people love his stuff. with jordan a special adviser to the board, it's hard to figure exactly what the direct benefit is in terms of new users, more to draftkings because he's on the board. maybe there's a ton of value there. looking at the market rise today, how much is added to that company, hard to draw that direct line for other major celebrities in terms of endorsing and being part of brands. >> i totally get what you mean on that. it's not quite as clear and it remains to be seen if he goes as
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far and starts recommending about recommended bets particularly on his sport, which he's an expert, but we're not expecting him to do that either way, clearly just his name recognition in what is now becoming a very competitive, saturated field, will boost the company he's endorsed. my company for you, sara, which we were discussing this morning, won't companies like nike, where clearly he's so indelibly linked be a little concerned, the power he adds to the nike brand, a little concerned at least they frowned upon part of the world -- business world, sports gambling. it's got definitely some baggage. it's not perfect for the pure image of nike to try and be a good corporate company. >> i don't know about that first of all, i haven't had any discussions with nike about this i know that jordan is a huge moneymaker for nike. a huge growth part of the business, the jordan brand right now in women's, children's, not
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just in traditional men's basketball so it's a huge ubiquitous brand, a billion dollar brand for nike. i'm not sure draftkings really has that kind of negative connotation maybe as sports gambling used to say in the days when jordan was involved in it way back when. fully legal, aboveboard, a huge trend right now that a lot of companies are participating in including now mgm. as you said, it's getting competitive. it's just part of where the sport and direction of the sport is going not sure they would have a huge problem with the sort of jordan getting in >> of course. >> he's not spreading -- he doesn't spread his bets all over the place. he's so exclusive and synonymous with nike and that brand. >> voer it's legal, wonder if it's a bit of a disaster around the corner for sports betting. there's lots of young growth for nike, starting to say we support
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sports gambling for young people, we're jumping through a few hoops there. anyway, let's explore what it means for draftkings is this a game changer for draftkings, barry? >> look, i think it's a positive, but i'd be hard pressed to say game changer. he's not on the board, a sponsor, a special adviser to the board. there are regulatory limitations that could influence how impactful he could be here as well so look, it's helpful. the market is saying about a billion dollars. at one point today draftkings was flat certainly it adds an air of credibility to a space that was at one point an outcast. it will be interesting to see if larry bird, isiah thomas, one of his longtime competitors sign with one of draftkings' competitors at some point. >> to me it underscores this whole market, which is so sensitive to headline risks and especially positive headlines
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like this and flashy headlines draftkings in particular, barry, around everything happening with sports right now, mlb games getting canceled and stock losing 13%, how do you trade this name right now when it's so -- it's proven itself so sensitive to short-term headlines and noise? >> look, i think institutional investors are very cautious. we launched this morning with a hold rating and not mush push stock retail investors are somewhat enamored by the name. that said when we start seeing a series of catalyst, positive or negative the volatility rise you have bar stool app, thread in market share. you've got covid always out there. come october, november, i think 60% of draftkings is removed restrictions and could hit the market it's going to be a bumpy ride for sure we're talking about a business
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that's going to be 10 years in the making of that's when they will make money, hit their longer term targets. so definitely a bumpy ride ahead. >> barry, thanks so much for joining us much appreciate it. >> thanks. we are at session highs, by the way, as we approach the close. 1.65% higher on the dow, 470 points after the break,via, ndi peloton kicks into high gear we'll take you inside the market zone at leaf blowers.
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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. from robinhood, bob pisani has the story. bob. >> sara, we're getting reports from the "wall street journal" that robinhood faces a potential civil fraud action over its failure to disclose its practice of selling clients orders. the high-speed trading firm could be fined $10 million it's not confirmed sec we reached out to them we don't have a comment. we'll try to get more on this. this goes to the question of disclosure were they disclosing enough about where the order flow is going and raises questions about is there anything wrong with payment for order flow this has been going on for many,
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many years with many other firms and that may ignite that robinhood is under investigation for other issues including that march outage they had that caused a lot of disruption at the height of all that craziness. guys, back to you. >> a little surprised the issue here is failure to disclose, bob. we've all know they have been doing this talk about failing to pill out the right form to disclose it. it's not like they were keeping it secret, per se. >> no, may be details about payments, for example, and specifically where it was going. it sounds like a minor issue, i know that's how the s.e.c. gets people they are the ones who make people fill out the disclosure they can't engage in philosophical about payment for order flow but that's the right discussion to have zero dollar commissions are not free. >> bob, appreciate it. we have 13 1/2 minutes left on the session. commercial-free action going into the close
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mike santoli to break down crucial moments of the trading day and wealth management ceo josh brown with us as well good afternoon to you. josh, let's get things off with the market surging into the close. s&p 500 on track for record closes once again. the dow is now less than 2% from its own record high. we're pretty much at session highs, up nearly 500 points on the dow, 1.7%. laggard up 7% itself quite an extraordinary rally into the close in some way, a repeat of yesterday. >> runaway-type action fascinating. as if the market, anthropomorphi anthropomorphize tesla, zoom, they said fine, we'll take those four down and not affect the rest whatsoever, we'll buy other stuff. that's what's going on you had reverse always, almost as if during the day when that action did not spread more instability and basically the
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overall index is held together this you have fresh money coming in chasing other stuff we'll see. i still think we're still in the same dynamic there's house money in play where people have lots of profits. no reason to sell in a hurry, show them more risk because you have gains it is just kind of creating incrementally further like 2017 frankly, all over again. >> i feel like the more people say, how much higher can the market go up, how much frothier can it get, the more it goes higher. >> yeah. and the bears would say that one thing stock market investors do very well is double count. so they start buying up a stock because they think good news is coming then good news comes and they buy more of it that's a phenomenon we have seen playing out all summer long continuing into earnings reports. when you see a company like
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zoom, for example, which absolutely smashes expectations, it's not like the stock was sitting flat in advance of that happening. so in the case of zoom i think you got triple counted i think what's interested today, sara, 76% of s&p 500 stocks are now back above their 50-day moving average, which admittedly is noisy, shorter term moving average. still you've got more than three-quarters of the s&p doing very well right now, at least in the short-term that number is only 55% for the nasdaq 100 what makes that astanding is the nasdaq 100, the cues are up 47% in the last month. there is profit taking in big tech and consumer discretionary and biotech names that make up that triple cue index. dow is down, now you have utilities up 3%, staples up 1.5%, new highs today for the
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consumer discretionary so you have other stocks coming up here and starting to bang their heads up against the ceiling and look for those new highs. i think it's very encouraging. >> 3.5% move higher for utilities is unusual. >> leading the market today. >> yeah. utilities leading the market, real estate right behind, another one that has underperformed josh you mentioned zoom smashing earnings expectation reported monday investors are trying to pick the next stay-at-home winner peloton is surging again after jpmorgan raised its price target on the stock to a street high of 105, an 8% move right now. crowd strike is getting a boost ahead of its own earnings report after the bell some going out stocks are winners, too the movie theater chain surging after plans to reopen 140 theaters by saturday josh, stay-at-home winners, especially some of those cloud names have seem to go up every
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day or reopening trades like movie theaters and airlines and hotels which is it? maybe both >> it could be both. we're like six months into this. i think we should stop with the teams. starbucks, which i'm long, has had a big move over the last couple of weeks. they were not a work from home stock. they got killed because people weren't commuting for business anymore, people weren't traveling. that's working now, too. i think there's room for both. this is the thing i want to say to you and i want everyone to listen to me everyone needs to get this term work electric home stocks out of their vocabulary, because that doesn't accurately describe why these stocks are working and will continue to work way past the point we have a vaccine and people aren't afraid to go out anymore. we have to stop saying that. it's work from anywhere.
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no more wfh. the stocks working all year because they are, quote, work from home. no, it's about the cloud these stocks were already working before the pandemic. all the pandemic does was accelerate things. when the pandemic is over, these companies will continue to do well because the trend is not everyone is going to stay home forever. it's not everyone has to report to the same place in order to do business so when you think about docusign, you should not be saying it's a work from home stock, it's a work from anywhere stock and it's going to be with us for years in the future and long after i can give you 50 stocks that need to go that way. >> bank of america hiked price target to a street high of $650. josh lipton has the details for us hey, josh. >> wilf, this week nvidia rolling out introducing new graphics shifts.
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the promise there, more impressive visuals for pc gamers for bank of america saying these chips should provide a solid replacement stock for the company. that stock a monster now up 240% over the past 12 months nvidia isn't alone intel also making news, announcing new processors. ceo bob saban talked about on cnbc this morning. >> it addresses those key things becoming more relevant in terms of how we engage with our pc and how we engage with each other. >> still high but well in the red so far for this year guys, back to you. >> bucking the overall trend semis up so strong, 3% year-to-date up 30%. josh lipton as a group thank you. let's hit macy's shares of macy's have been volatile after jumping strong online numbers in the second quarter. the struggling department store
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reported narrower than expected loss, beat revenue estimates this morning and saw digital sales rise 53% compared to a year ago macy's same-store sales missed expectation down 35% for the quarter. joining us retail analyst at jpmorgan with underrating on macy's matt, always good to have you. it doesn't matter what the numbers are this quarter, it's the view forward i'm not sure investors got that today from the ceo or the call did you? >> yeah, you nailed it on the head there's a couple of components macy's did a nice job cutting costs this quarter sga down 35% when you looked at the print on the surface you had earnings out of the gates digging deeper into the prints, to me the key pieces here, physical stores sales are down 40%. e-commerce is only up 25% exiting the quarter. that's after being up as much as 80% in may so you have digital sales that
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are moderating, brick and mortar store sales materially negative. now you head into the back half of the year, all important back to school and holiday with a company that prepandemic was 3/4 of its revenues were derived from those stores and now you have revenues in those stores that are down nearly 50% so i think looking forward it's all value and convenience. those were two elusive dynamics that this company was missing prior to the pandemic, and i think all you have right now is everything in acceleration as you think about the winners and losers coming out of the crisis. >> so matt, how is the stock priced at the moment is it priced as if people still question its long-term future? if it does survive into next year, will it rally significantly? >> i think it's a company that will survive it's a company that will continue to restructure. i think we've now seen four or five restructurings.
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right now in the midst of the polaris strategy, they have announce $2.1 billion in cost savings. to me that's a company that just continues to shrink. so our estimates are next year macy's revenue base will be 15% below its prepandemic 2019 revenue base and we do not have this company breaking even from a profitability perspective until 2022 so to your point, i think you have a mixed bag out there from the investment community that i don't think this is necessarily a going concern in the near term or frankly intermediate term, but i do think it's a company less stores, smaller revenue base and smaller expense base. so you have an ebitda base multiyear perpetual decline. again, circling back to prepandemic versus post pandemic, that's what we're trying to pick the winners and losers department stores were in decline before this.
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off pricers and dollars were taking share, that's the same dynamic you're going to have going forward that you had before all of this >> so pick a in wither are there any that look too cheap to you i know you don't like macy's >> i think the discounters as you look at dollar stores and discounters, dollar generals, those retailers that during this process, during this crisis have picked up market share i think the duration and sustainability is longer than most believe i think the off pricers, nothing has changed in terms of the multiyear market share dynamics. if anything, i think as you think about t.j.maxx, burlington and ross stores, on a multiyear basis, they are going to come out of this with less brick and mortar competition, less department stores and greater values because i think they are going to mean more to the multiyear vendors. the last on the athletic, i think nike and lululemon continue to have opportunity and momentum. >> i know you love those names
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matt voss, thank you for joining us. >> thanks for having me. >> ross stores down 20% year-to-date mike santoli, give us your thoughts as we march into another record high close. we're seeing every group higher except for energy? what stands out to you >> what stands out is the ability-o of the market to get into buying mode without leadership momentum stocks doing the work it's actually broadened out a bit over the course of the day much more choppy, up versus down on new york stock exchange, two to one to the positive, nasdaq not as strong, 250 new highs on the nasdaq it's pretty inclusive as these things go. take a look at some of the groups here. energy not one that's participating. industrials versus energy on the day is obviously being dragged down by crude. industrials and equal weighted consumer discretionary, basically cyclical plays, is the economy better, do we want to be
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positioned for that trade, are definitely improving even if they haven't been outright leaders. volatility index getting so much attention. we've been talking a long time, bid in the market for election related volatility i wonder if we've gotten prehedged and flinching ahead of this event, and it's going to come as no surprise to anybody if we have election issues so far that's still going on and the nasdaq version of the vix is screaming higher, has been for a while, mostly because people buying call options because they want upside bets. >> just you said one minute left of the session to mike's point, traditional leaders aren't doing the work, that certainly applies to apple and tesla in the red that said you do have alphabet, microsoft, facebook, amazon all nicely higher. alphabet up as much as 4%. in terms of sectors discussing, utilities, health care the best, energy at the bottom in the red, the only one in the red and technology is second best -- the second performer, still up a full percent itself. as we approach the close at 20
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seconds left, it will be another record high for s&p up 1.6% today. another record high for nasdaq composite, over 1%, laggard of major indexes, which was a turnaround from yesterday and turnaround from this morning the dow jones industrial 460 points, 1.6% getting closer to its own record close about 2% away from its record high. 20-second record close for the s&p, up 2020 it is amazing. welcome back to "closing bell" if you are just joining us i'm sara eisen with wilfred frost with mike santoli, senior market commentator strong rally with big push in the final hour of trade. take a look at where we finished up 452 points higher. take a look what happened in that final hour. strong close again just momentum continuing up 1.5% on the dow as far as what led us there, coca-cola actually the biggest
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gainer in the dow. chemical company did well, ibm, two losers were apple and crm. they have been major winners in this market. both record highs taking a bit of a pause s&p 500 closing up 1.5%, a new all-time high yet again. we're higher for eight of the last nine sessions just to show you how strong it's been most groups closed positive. all groups, utilities was the strongest group for a change nasdaq up 1% that will do it. a record high for nasdaq russell 2000 index small caps up almost 1%, .9 of 1%. some strength in small caps despite the fact they have underperformed digesting earnings from cloud strike, cloudera hot rocket company's first since going public and pbh we'll bring you the results as soon as they are out
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we'll break down pbh and take the pulse of the consumer as we're joined exclusively by its ceo manny chirico after the numbers hit. joining us first to talk about the market rally, josh brown is still with us, omar aguilar joins the conversation first, mike, to you, i feel like you have to justify the fact the market goes up so much every single day, another percent and a half move despite week economic data. gdp came in lower, more virus hot spots we're tracking, like alabama with rising positivity rates and some real head winds on valuations, on earnings, on the outlook. here we are, a new high. >> today as well not a perfectly clean story. the dollar was up, benefiting from a lower dollar in the stock market yields lower and therefore all the bond proxy stocks up like utilities like you mentioned that usually isn't enough to get the entire index excited
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bull markets make you uncomfortable as much as bear markets in the sense they don't really allow you a comfortable pace of figuring out why things are happening. i could certainly make the case all we're doing is getting to more extreme extremes in the very short-term. upside targets are hard to come by in terms of this move, 1 or 2% higher and the best rally off of a low in history since 1938 it's not as if you're chasing a lot of easy models for how this ought to go but the basic inputs are early cycle recovery story combined with late cycle risk appetites and easy money that's enough, i think, on a story-driven basis to keep people excited in the short-term with this extra public energy from retail. >> mike, if this is a bit of a broadening out and economy doing better-type story, it's odd what's going on in the bond market last week on thursday we jumped from 140 up to 155 on hopes of more inflation all that and more slipped back
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over the trading sessions. it's not a particularly bullish sign for the economy. >> the bond market is not giving bullish sign bond market has been range bound for months even in the face of a lot of economic numbers that have gotten better it seems to me that's just kind of anchored by the fed not moving for years to come, or whatever the assumption is again, i don't think this was a neat and tidy story across asset classes singing the same tune. it's kind of a grab for equity exposure when people for whatever reason felt like the market wasn't going to give you a chance not sure how much is left in that, though. >> omar, at schwab, you've got a pretty good view into retail trading behavior how much of these moves do you think is driven by that now? >> i think a lot of investors are still in two camps on one hand, there are those investors that feel and take
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this market rally as just the fact the economy is going to recover eventually and catch up. we are all the way back to levels of stock market and commodities and exchange rates all the way to february levels therefore the economy is going to be catching up over the next 18 months or so. that set of investors are the ones looking for opportunity to try to get into the market more quickly. on the other hand we still have a significant amount of various skeptical investors that are just worried there will be enough of a noise going into the rest of the year with the elections, with the second wave of potential virus cases where we actually china, u.s. trade discussions. i think the number of bankrup y bankruptcies continue to grow that kept a lot of people on the sidelines. i think it's a very bipolar set of sentiment that you can actually see overall i think what's interesting to
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see, the leaders today being some of those sectors that are being the least favorite for the year i think that just gets a sense of how people are just trying to have more diversification across strategies and having to take that from the leaders. >> josh, what do you make of the fact apple and tesla ran out of steam today? >> i don't know. i'm not sure there's necessarily a great deal of meaning in that. obviously these stocks were heavily traded all year but specifically around the split. there was a lot of excitement. maybe when the excitement wears off, some people say, okay, that was fun, i'm moving on i really wouldn't make much more of it than that and the case of tesla, another share sale. 5 million shares here, 5 million shares there, eventually you sop up a lot of the demand so that's not me calling a top of tesla when you drop that many shares on the market or you tell people you are about to, it does have an impact.
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>> mike, i feel like we need sentiment check right here at the top of the show. is there euphoria in the market at this point and what kind of levels are we at and what does it signal for the market >> not an across the board euphoria but people fully for the market investors on weekly basis, yes, super bullish relative to people who are bearish at this point. near the highs the last few years. a lot showing bullish extremes since early 2018 however, the average price target is below where we're trading, fund flows not all that heavy, more traditional retail investors chasing it with dollars because the market is up a lot and they don't feel like it has to. if you were to make the case
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people hate the market and has to go higher, it's far less true during the whole run hedge funds their exposure ramped as well according to numbers i'm looking at yes, people are fully bullish but that doesn't mean at the top. markets deal with that for a long time when they are having uptrending moves at the lows, where it tends to be a better indicator of reversal. >> omar, are clients doing hedging? are they buying protective assets or buying equities going long the winners >> that's a great question certainly clients continue to ask about protection whether strategies, or in general the beta type of strategy, try to have higher allocations to defensive assets it is very natural reaction in this part of the cycle when you
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see the level of the bull market we have seen on the other hand because what we have seen so far, the shift in sentiment because of lower to negative real yields we have seen globally in the bond market, you know, a lot of the declines are obviously seeking for that level of income somewhere else i think the combination of seeking income in other asset classes with the need for potential protection going through higher volatility, the end of the year, has actually made some market dynamics slightly different than traditional recovery we have seen it is very unusual to see this level of bull market when some of the issues related to a crisis or recession sources haven't been fully resolved. >> josh brown, thanks for joining us up next, we will asked famed investor mike novogratz what he
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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. stocks finishing strongly high, s&p 500 and nasdaq closing at record highs nasdaq topping 12,000 for the first time. joining us galaxy digital ceo and founder mike novogratz good to see you as always. we continue to march higher and higher on the broader equity markets, something that surprised you. you've made money in other
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assets rather than these tech stocks do you get tempted to stop buying them at any point >> we are close to the end of what i figure is a speculative frenzy you look at the price of tesla the last couple of days. you go back to 1999, qualcomm, bellwether stock of the internet qualcomm had a split, next day exploded up like tesla, that marked qualcomm for the cycle. we put the high on tesla for the whole cycle, we'll slowly unwind some of this crazy leverage. what's interesting is this bull market is not giving up. like a bull with a bit between its teeth climbing up a muddy hill and keeps charging and other things falling out we had a big correction bitcoin, other risk assets but money seems to be rotating from one asset to another in u.s.
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equities and european eck. certainly the bull market is not over yet i do feel like we're getting close. >> do you think rotation would be the result or would everything be dragged down including the likes of bitcoin and gold like they were in march, or would this time be different for them would they act as protective assets >> i do think -- listen, some correlation. there is a big risk off all assets down make i do think the dollar and bitcoin would decouple from risk once you get it out, i think they will be protected but the first leg down they will be. leverage comes out of the system it's a very good question, though today i expected the market to go down. the nasdaq looked pretty ugly at one point and came right back. the s&p never looked ugly. so there's still a lot of cash
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in the system. i don't know we have an election coming in less than two months as we get closer, the uncertainty around the election, if biden wins there are tax implications for the market, substantially leading to a lower level. raise capital gains, markets going down not up. >> i was just going to ask you about that because president trump just tweeted about the market close, perhaps watching "closing bell" noting the dow closed above 29,000. he said, you are so lucky to have me with your president, with joe hiden, it would crash are you saying you agree with the president? >> i think the market will go lower if biden wins for a while and then back like it always was. tax structures you think what's happened since
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covid with jeff bezos worth $200 bill and elon and all this staggering wealth being created in the stockholders and the percenters and the rest of the company suffering, it's not good for the psychology in general. trump talks to people on stocks, 85% of stocks are owned by 10% of the people but the rest of the country don't really care so much so i do think there is a disconnect between the real economy and the stock market trump likes to take credit for the stock market he doesn't really deserve it if the credit goes to jerome powell pushes liquidity. this is a liquidity-driven rally, he created a psychology of buy any asset to the point things are at ludicrous valuation and they can't last.
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>> the u.s. higher than europe, about 55% of households do have exposure to the stock market, that's not 80 or 90% but higher than some developed nations. in terms of what you're buying at the moimt moment, given bitcoin and gold have had great runs, due a pullback, what are things people should buy if they want to buy protection or buy exposure to the market that hasn't run up yet? >> listen, there are some stocks that way underperformed. you saw today financial, cyclicals, starting to rally i'd be in the defensives or on the sidelines. there are times to be on the sidelines and wait for the correction if you missed the last hurrah, you missed the last hurrah the s&p not the nasdaq s&p took out 3400. take out highs a nice rally. the s&p probably outperforms the nasdaq for the time being after a huge spate of
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underperformance in general i'm cautious. this is usually not a great month. we've had such a huge run. it wouldn't surprise me sometime in the middle of the month, we have a complete reversal >> what about bitcoin? i know you're super bullish on bitcoin. how do you see the election, impact, fed policy impacting the price there. shouldn't we see more of a rise in bitcoin if inflation is now the thing? >> yeah, i think bitcoin had a small correction, took out 12,000 yesterday, rejected there. gets washed out. it trades fine we see more and more customers come into the space every day. there's a bit of a speculative frenzy going around in the crypto space, not in bitcoin, what we call centralized finance of some of the money from bitcoin, from the classic bitcoin holders has moved over into some of these other coins
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coins by the name of sushi and wifi there's this new hot, sexy venture space called defy. that dragged some of the luster from the bitcoin community we've been bullish on bitcoin, buying on pullbacks, 14,000 and 20,000 in the next six to twelve months, if not higher. that's really just a fed story and uncertainty in the world >> sushi coin, that's a new one. mike, thank you. i think it dropped 34% today. >> open some sushi coin, trust me. >> i love sushi. mike novogratz, thank you. >> thanks a lot. >> earnings news here to report. pvh, i'll bring those numbers to
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you. the retailer who owns tommy hilfiger and calvin klein with huge bottom line beat reporting $0.13 adjusted on profitability. the expectation on this one was a loss of $2.43. the highest analyst was loss of $1.20 so that was way off the mark as far as revenues that was a beat, $1.85 billion, that's what they are reporting, $1.25. the story tremendous cost-cutting sg&a expenses down 24%. that's what fed into the big profit beat. gross margins improved 56% versus 42 -- excuse me 54% a year ago looks like digital is also part of the strength here especially on the sales picture revenue through digital channels growing over 50% sales that were through its directly operated digital commerce business up 87% some strong growth there as far as what we can expect in the future pvh expects revenue
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in the second half of the year to decline 25% versus a year ago period they also give color on traditional wholesale. remember, they are big department store play, planning business conservatively which will result in reduction to customers. stock reacting positively to the big beats, up 6% after hours we're going to talk to manny chirico, the ceo in just a few minutes about what's actually driving the business right now and how he is getting a look forward with so much pain right now in department stores, in apparel and in accessories tough categories to be in, definitely not essential retail-type stuff. still, though, wilfred, big beat they have managed costs conservative and that led to increase. >> strong quarter, looking forward to the interview coming up shortly other earnings crossing the tape, crowdstrike numbers,
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aditi. >> plummeting down 5 to 6% despite the company beat on both the top and bottom lines eps coming in at 3% profit versus analyst expectations of a loss of 1% revenue coming in at $199 million, street expecting $188.5 million. subscription revenue, 90% come from subscriptions that also was a huge beat or rather 184.3 million. that was up about 90% year over year and the company also raised fiscal year guidance and also beat on expectations for q3 and fiscal year on the top and bottom lines however, one potential reason why you might be seeing the stock decline right now is that the company added 969 net new subscription customers it appears to be a small number. in fact, one of the analyst reports i was looking at said that number may be on the smaller side, but we will have
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to listen in on the call to see if the deal sizes are larger than thought so we'll dig into this more. again, shares for the year, though, to date are up about 180% back to you guys. >> thanks so much for that one rocket company earnings out. diane olick. >> this is the first earnings report since the ipo last month. revenue of $5.04 billion and revenue of 3.64 billion. unclear if it's comparable since it's the first report since ipo. shares up around 2% for the day, down around 6% in after hours but remember this stock is up nearly 78% since its ipo last month. ceo saying rocket companies had a strong second quarter thanks to incredibly scalable mortgage origination platform that allowed us to meet unprecedented demand as a result we were able to help more clients this quarter than any other quarter in our 35-year
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history. rocket is looking to gain 25% market share of all mortgages. of course remember mortgage applications are way up at the he said of the summer with purchase demand up 28% year over year and refinance demand up over 40% so clearly this is the business to be in right now so again, no comps on this but the stock is still down despite strong earnings. back to you guys. >> diana, thank you. cloudera earnings are out. let's get to josh lipton with those numbers. josh. >> sara reporting q2 eps of $0.02 revenue $214 million, $208 million. guidance between $0.08 and $0.10. revenue between 207 and $210 million consensus for $206 million. guide ons on bottom line $0.32 to $0.35, revenue between $839,
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$853 million, estimates called for about $839 million as for segments subscription in at 191.5 million and services at 2 22.8 million slipping into after hours cloudera had a surge 180% off march lows conference call at 5:00 p.m. eastern. guys, back to you. >> josh, thank you. up next, mike santoli is back with a look at what history says about the strength of this record rally and whether stocks 'lbeiglo eenveo okxpsi wel rht back. give you my world ♪
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costco out with august sales, total comp sales up 13.2% above expectations of 10.4%. in the u.s. full sales and currency up 14.3%, some strong numbers from costco continuing a recent theme, expectations were high and they beat them. >> right they are an essential retailer doing well like walmart and target but they were doing well before the pandemic and crisis and of course membership subscriber numbers let's go back to mike santoli
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putting the surge into historical perspective as the index closes above 12,000 for the first time ever. >> round number stuff, 12,039 on the dow pushing 3600 on the s&p. this is nasdaq year-to-date in blue compared to the full year 2009 so this was the prior bear market low you saw the huge surge off that level. that low there happened two weeks earlier and not as deep. if you sync up the lows you would be further ahead chop around sideways action, really want to ever size nasdaq back then way below its high, going down for a couple of years. about a quarter of its 2000 high it's different now that we're scaling into fresh record territory. on the valuation side a snapshot earnings multiple for nasdaq and s&p 500. it goes in regions we couldn't get above 15 for a
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few years and then repriced higher, 18 for s&p 500 was a ceiling before we get into this phase released higher to 23. obviously on somewhat depressed earnings for the next couple of quarters, then see what' happened with nasdaq contained under 20 for years seemed like that was basically reasonable now shooting well above 30 this is what the market will tolerate both looking across the valley of what earnings are doing as well as just feeling as if very low discount rates are enough to get valuations here. it doesn't mean it forgives the market for the entry point if you bought it here doesn't get higher returns because you can justify based on what interest rates are doing or the fed is doing >> mike, thank you mike santoli checking out shares of pvh higher after hours after a big beat the company behind brands like calvin klein and tommy hilfiger coming in with much better earnings than expected, $0.13
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the expectation for a loss of more than $2 while pvh saying strengthened its digital commerce certainly helped the top line it does expect revenue in the second half of the year to fall 25% of let's go to pvh manny chirico who joins us for an exclusive interview. manny, great to have you here fresh off of those numbers clearly you cut back on expenses which drove the profit tell us a little about what else you were going through as i'm sure most of the stores where you supply your clothing were closed for a good chunk of the quarter. >> sure, exactly during the quarter, our stores and our key customer stores were probably closed for a third of the quarter, a full month. so that's part of the decline. but despite that when we initially talked about the quarter, we talked about sales being down close to 50%. actually we significantly
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outperformed that revenue guidance and came in down 33%, $300 million better than we anticipated. so really seeing some momentum in the business particularly in our international markets. europe for us is very strong our china business has really come back very strong. the toughest business we're having right now continues to be in the united states we're outperforming our projections but still well behind where we are in asia and europe. >> how much of it is just the fact that department stores are in a world of hurt in the united states right now we saw the macy's numbers today, didn't get a very clear even picture of a recovery there, an we've seen so many bankruptcies in the space how tied to that is the weakness you're projecting in the u.s.? >> look, they are an important component of our business but just to put it into perspective, north american department stores in 2019 represented about 12% of our total sales. as we go forward by the end of
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this year, that number will be closer to 8 to 9%. they are important to us, great partners for us as we work together but not a significant component of business as it was five or six years ago. that said, they are starting to see some improvement in business their online business, their dot-com business, macy's dot-com business, kohl's dot-com business has been very strong tore us as well as pure plays like amazon, zalando in europe that portion has been strong but brick and mortar retail, particularly department stores, you've seen the numbers, they have been much more challenged given the pandemic. >> when you look at the u.s. outlook for your business, manny, how much is it for the rest of 2020 whether there's more fiscal stimulus or is that not as relevant, perhaps, as it seemed earlier in the year
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>> you know, it's treasure reduce trying to understand the moving parts because clearly the response here in the united states from a fiscal point of view has been strong the response comparatively for the rest of the world as it relates to the pandemic and control of the pandemic has been much weaker. where there hasn't been as much fiscal support in europe and asia, the fact the pandemic is under much better control there, our business is that much more strong there and we've been able to really capture back more and more of our sales. i think it's really controlling the pandemic that's going to be the bigger issue for us going forward here in the states versus just throwing more stimulus at it but given where we are, i don't in any way doubt that it's important to keep that stimulus going. hopefully that can come through
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in the next few weeks. >> manny, what does the holiday season look like this year >> you know, that's a great question if i had a crystal ball and knew the answer, i could make a lot of money let me tell you how we're approaching it we're approaching it very cautiously and conservatively for a couple of reasons. we're well positioned if the consumer is there and we can sell but we're also trying to position ourselves so we don't get caught with a significant amount actually projecting the business for the second half and in the fourth quarter to be down about 25%. if business is more robust, we're in excellent position to capture that business, but if we're going to project out, we're going to take a more conservative posture i think you have to consider a couple of things i think the capacity issues at retail in store where we try to
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keep capacity of the store to 50% in those high traffic selling times of the year like christmas, that becomes more of a challenge for us as well how comfortable is the consumer going to be coming to malls of any type, either outlet malls or even stand alone retail stores, how comfortable are they going to be coming back and shopping in those stores? i think there will be activity but i think traffic patterns probably will be under pressure and store hours have also been curtailed. where fourth quarter holiday tends to be an even bigger brick and mortar presence as a piece of the business, i think that business will be under some degree of pressure because of the pandemic i think the real opportunity will be online we've made the investments to make sure we're in excellent position to capture that both directly with our owned and operated sites we do ourselves
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and with our key partners macys.com, kohl's.com, amazon business as well as those in asia those are going to be key areas for us so i think we're in a good position to outperform the sales guidance, but i still think you have to be somewhat cautious as you approach the fourth quarter. >> good to know. finally, want to ask about fashion trends people want comfort. people staying closer to home. i'm wondering what that means for your two biggest brands, calvin klein, huge underwear business, we all need that tommy hilfiger, it was hot, went through a few good years, champion, fila, '90s brands with logos all over where are those brands now in terms of what consumers want and how they are living? >> sure. look, the tommy -- i'll tart with tommy first tommy hilfiger has been very,
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very strong, domestically and internationally. it continues we have a significant casual component to that business t-shirt, jeans, activity sportswear that component of the business is very, very strong on the calvin klein side of the business, you touched on our men's underwear business, our women's intimate business and loungewear business off the charts very strong our partners that work with us, their performance and active sports wear, very, very strong those in that environment are able to hold their own those under more pressure are dress up businesses, high-fashion brands like calvin and tommy have a component in and heritage brands largest dress company in the world those businesses under significant pressure now as people return back to the
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workplace you'll see a resurgence there right now next six months that dress up business under more pressure, tailored clothing. those type of businesses will continue to be under pressure. we'll be able to maximize casual, intimate underwear, loungewear business, which is such a key part of our business. >> manny, thank you for joining us to talk through those results. >> thank you, guys. >> manny chirico ahead of his call tomorrow. 200% that's houm how much shares of weight loss company medifast since last march how new sales trends are driving revenue growth traded goods. tools, cattle, grain,
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host an expected 25,000 fans at that school's football season opener despite recent surge in infections across the state. at a news conference reynolds said people should not go to the game if they don't think it will be safe. go to cnbc.com to see what restrictions the white house is recommending for iowa. take a look at this. this it is, the new flag or proposed flag for state of mississippi. in november voters will get to choose the new design or stick with the current flag which features confederate battle flag. in hawaii a flyover of pearl hare better to commemorate the anniversary of world war ii. guests gathered on the deck of uss missouri that is the battleship upon which japan surrendered to allied forces. you are up to date sara, i'll send it back to you. >> sue, thank you. its members may be trying to lose weight but medifast shares
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have been gaining significantly, rallying 2% since late march up next we'll ask the company ceo about that stock surge and what's happening in the underlying business. moving in the opposite direction, pager duty better than expected. getting punished in the market down 23 almost% after hours. we'll be right back.
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medifast around 222% since march lows ceo of medifast. dan, good afternoon to you thanks so much for joining us. >> good to be with you. >> clearly fantastic numbers, fantastic rally so far this year is that more because people are wanting to be healthy and eat better whilst being at home or in general wanting to avoid getting sick as well. >> i think our run has been going for a while. in 2018 up 68%, 2019 up 42%, so it's really a reflection of medifast being very relevant for the environment, which is an environment where people are very focused on health and wellness and want to get heal healthy. >> so what is it about your diet that's been attracting people in particular and how healthy is it >> well, medifast is the company behind optivia, one of the
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fastest growing health and wellness communities not a diet, focus on people who have failed at diets the community we support is comprised of 36,000 coaches across the world what the coaches do, most of them have been clients before and they help other people who want to become healthy it typically starts with achieving their healthy weight learn a set of healthy habits. the first habit they learn is the habit of healthy eating. we have products to help reinforce those habits so they can achieve a lifestyle change that can be maintained for the rest of their lives. >> what sort of qualifications, dan, do your coaches have? >> really it's most of them have been successful on the program before in essence sharing the story of what helped them we have a certification process that helps them learn the basics of nutrition and coaching and coach mentors who have been
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doing this for years who help them learn how to be effective in teaching people new, healthy habits >> dan, how do you look at the permanence of what this pandemic is going to do to our behavior and our psyches and how that might impact your business beyond when we get a vaccine >> yeah, i think for us, as i mentioned, medifast has been growing for several years. i think we as a country and kind of the world in general has been struggling with health and wellness and we're just starting to be educated i think the current pandemic has created an increased awareness of just how important it is to be healthy we see ourselves as being relevant before the pandemic we're certainly relevant during the pandemic we think medifast and our coaches will remainstreamly relevant even after this passes. >> 88% reported feeling stress
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up next, swiping right it looks like bumble could have a good time to go public (crowd clapping) (crowd cheering) - here we go. - [narrator] and it's it. - [group] yay! - [narrator] you did it, high five! - southern new hampshire university. - [man] that gets a hug. (laughing) - look at that! master's degree, i did it! - i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu.
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looks like dating app bumble could soon go public julia boorstin has the details >> bumble is reportedly preparing for an ipo next year in the $6-8 billion range. now, this is an expected next move after blackstone bought a majority stake in bumble from then controlling shareholder founder andre andreed. this comes after rival match reported growth during covid its stock is up about 11%.
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>> how successful is bumble's pivot away from just pure dating been i know they have various other services including for the jobs market for that $6-8 billion valuation, do we know how much is put toward the non-dating parts of the business >> well, i would say that $6-8 billion valuation, a really big part of that is badu that's a huge dating app in many places around the world including russia, though it does not operate here in the u.s. they do have bumble biz for business networking and bumble bff for friends to connect with each other on bumble it's unclear how much a piece of the overall business those two pieces are, but it does seem like they are growing. not sure how big they are compared to the dating piece but i would say dating is still the majority of that app. >> and probably huge right now
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during the pandemic as we've seen in some of the competitors like tinder and match. >> big traffic, big numbers. up next, flipping the script again. samsung unveiling its foldable smart phone but can it really hold up to investor expectations and can wi offers investors a broader view. ♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. ♪ i keep working my way fback to you, babe ♪ ♪ with a burning love inside
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a glass screen and stronger hinge. last year we tested out the first galaxy fold phone and it broke just shortly after this video was done on closing bell for the one that they lent us. i would say our apologies to samsung for breaking that one, but it really wasn't our fault i couldn't believe last time with such crucial aspect of the folding screen working that they could bring out one that could possibly break we weren't the only one to break it too they had to withdraw the product. i can't imagine they would be doing this again unless they have absolutely tested it to the full if it works, i'd be interested in it. something smaller in your hands during the day for quick things like replying to text but still has the functionality to watch a video. i think there could be a market for this, though very expensive. >> maybe it was your big clumsy hands. i wonder how any phone maker
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makes a splash ahead of what's supposed to be this new super cycle of the iphones including the launch of this 5g phone. i guess the question will be from consumers whether any samsung users switch over. apple did not participate in the record run that we had today. >> no. so the most extreme drivers of the upside recently did have a reversal today they did give up some of those gains and it sort of flowed elsewhere. there was still a little bit of a chase happening to this market just extending what already were overstretched conditions you have to defer to when the market refuses a good excuse to buckle, and it would have been a good excuse when apple breaks stride and tesla reverses. give it the benefit of the doubt for now. we're playing a game right now of self-feeding momentum for the
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most part. unclear what exactly changes that dynamic. >> yields low, some risk aspects to it. >> it was not a consistent message. all those things that you did mention were a little bit conspicuous. but equity market kind of rolling to its own beat at this point. >> we're out of time "fast money" starts right now. i'm melissa lee and this is "fast money. tonight's trader line-up guy adami, karen finerman, dan nathan and bonawyn eison where can you find opportunity we'll get some answers later, the clock is tick-tocking on a deal for the popular app. plus, we've been all over the after hours moves and some red hot software names and we've got another edition of tota
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