gravitate towards casino gaming here and there and folks have seen me at those casinos before. i wonder, kelly, i don't know if it's the same experience i don't know if i would go if i couldn't do all those fun things. >> what if you could tail bait in the parking lot >> a different aura. the meadowlands, who knows. >> thanks very much. thank you for watching "power lunch. "closing bell" starts now. thank you kelly and dom. welcome, everyone to "closing bell," i'm sara eisen with wilfred frost. stocks bouncing back big after three days of frenzied selling dow down, nasdaq up. let's look what's driving the action tech stocks and momentum plays are recovering some of their losses apple up 5%, tesla up 8, after its worst day of selling ever. but we are seeing one late stage drug trial of a vaccine candidate being put on pause though the company and health

experts stress that is not uncommon to do we're going to dive into that one in just a moment in the winners, 2020, reversing slack is plunging, lululemon is lower, nikola is down after it was up sharply yesterday it's been a volatile last few sessions into the close. 59 minutes left. >> certainly has been volatile welcome back, sara, having been off. ahead of the upcoming debut we'll speak with venture capital investor about his bet on the company which started many years ago and how this ipo might do. plus shares of retailer five below, more than 40% from the lows we'll speak with the ceo about what's driving this recovery you won't want to michigan this interview. the one and only shaquille o'neal about the new effort for financial inclusion and access to capital in america. shaq is coming up later in the

show let's focus, first of all, on the stories. new details on astrazeneca's decision to pause its vaccine trial. mike, let's start with you and this big bounceback today. >> it is a pretty big bounce a little more than standard, rote, technical, mechanical bounce after three days of selling. here is what it looks like nasdaq bouncing a little more because it had pulled back a little more. you're gaining back one-third of what was lost over the few days of all-time highs. however, just to make sure everybody doesn't get too comfortable, the storm is clear, path of maximum frustration, bounce taking it up to that line we were talking about yesterday as having held kind of above for a while. so it seems like we're kind of just bouncing back up to this decision point to see if, in fact, the smoke has cleared. i think it supports mostly what this has been, breakout of overcrowded sentiment than macro stress that showed up in the

last few days. on the front, how tradersmoves are. daily sentiment composite. essentially a long-running survey you can see how it springs around pretty wildly relatively short-term sentiment. this is friday it's elevated, definitely up in the extreme optimism zone. typically forward returns from that zone are not great. presumably it would dropped a little in the last day or so this is where you see the huge kind of fast pitched buying opportunities. you're not seeing that now i don't expect we have to swing all the way back to pessimism but you want to see this boil off if you want to have a sustainable upfriend these are the kinds of things we have to monitor on a tactical basis, guys. >> mike, with that in mind, would it be better for medium and long-term if we did, in fact, plateau and stay pulled back, as it were, for a little bit longer the size of the bounce could be a worry if we had another day or two like this? >> i would say typically what

you would see is some kind of process of chopping around and creating a little bit more of a landing after you've had this flight higher. so yes, i do think genterally it's been the way it's gone. sharp up days and dplin, a sharp recovery the buying was intense and unceasing through august, it's a lot to expect that impulse to go away again, there's still a lot of house money to be played with. we'll see the cadence. sometimes they go in stages. shot across the bow selloff and down the road a bigger flush we'll have to see. >> less than 5% off an all-time high for s&p 500 some damage. turning to the big vaccine news of the day. astrazeneca is pausing its late stage trial over safety concerns new details are emerging about who was briefed on the developments and exactly what happened meg tirrell has the story for

us meg. >> hey, sara, the news broke late last night that astrazeneca had potentially temporarily halted this trial and all the trials in the different countries of covid-19 vaccine after what it called potentially unexplained illness detected in the trial. it is not clear if this is tied to the vaccine specifically or not. but as you said, we are getting new details about what has happened, and they were disclosed to investors on a call by astrazeneca ceo he disclosed, and this is reporting from the news. a woman who got sick reporting in the uk neurological systems consistent with transverse myelit myelitis a spinal cord issue. he did confirm she did receive a vaccine, not a placebo her diagnosis has not been confirmed yet. stat reports she's expected to recover and potentially be

discharged soon. now, guys, the fact this was disclosed on an investor call and the company itself has declined to provide this information, we've been asking for it last night, is raising some eyebrows. meanwhile questions whether this will affect astrazeneca's trial and potentially other vaccine trials, i've reached out to moderna, johnson & johnson, other front-runners hotel me now there is no effect on their time lines. they are all proceeding, pfizer and moderna having begun in july astrazeneca in the u.s. last month and j and j starting in september. astrazeneca annual down 1% as some of the other vaccine makers are up today guys >> meg terrill meg, thank you joining us to talk, health care policy analyst of raymond james and an astrazeneca shareholder len, assume you were not on this

call today, are you troubled, first of all, about how you find out this information with the public but not a press release. >> i wasn't pleased with what seemed to be selective disclosures. that was, in fact, the case. i was not on the call. i do own astrazeneca and the fund for reasons unrelated to the covid-19 vaccine it relates to their current drugs and pipeline one never wants to see selective disclosure involved for any client. >> having said that, now that we're learning more about the disclosure, the condition that led to the pause of the drug trial, you've had experience with vaccine trials before, how worrisome is this for all of us really hoping for a vaccine here sooner than later? >> i think what history shows us there is vaccines sometimes don't work so every one of these vaccines

were 100% on point the entire way, i would say something was a little bit suspect so the company deserves credit for actually pausing the trial and saying let's get to the bottom of this however, it was completely bone headed of the company, and i want every future company that may have an issue going forward in the coming days to learn what not to do. at a time when the public is really concerned about the safety of vaccines, you won't give information to investors instead of being transparent with the american public you have a responsibility to the country and the world to be completely transparent so that when we do get a vaccine approved, the public has confidence great job pausing the trial. absolutely bone headed decision to talk to investors instead of the public. >> chris just gave the moral argument in the current climate with all the fears that are out there for why they should have

shared this information perhaps more broadly as an investor, do you also fleeflt out if this was just -- regardless of any morals if this is a retail company updating on sales or something as simple as that, that this is selective disclosure and that you've been left out of hearing certain market sensitive information others have heard. >> as i mentioned, it's a great question obviously one wouldn't want that to be the case in any company, good or bad information. i think it's important to realize that the need for a vaccine is great, as are the need for therapeutics in the interim. it's unlikely to put in the broader perspective that the first generation vaccine will confer immunity for a very long period of time it may have to be readministered i want to put it in the frame of understanding there was an article published 11 years ago on other vaccines, including

hepatitis b, measles, mumps, that shows 37 cases of transverse myelitis in the prior 30 years in trials if you look at virtually any vaccine trial that's been done, you'll get this autoimmune response because that's what you're trying to generate that may lead to fever, body pain you expect that when tens of thousands of people are administered the vaccine so this is just one case of this happening, i think the trial will proceed hopefully it will work along with someof the other trials if you get multiple cases of this, it becomes a more meaningful concern that to me is a bigger picture issue that we have to look at within the framework of recognizing this was said that one doesn't want selective disclosure in any way. i don't think it changes the

possibility of the vaccine succeeding, and that's more important. >> chris, it also raises the question of consumer confidence around taking a vaccine, when and if we do get emergency use authorization from the fda there were already concerns about politicizing, operation warp speed, rushing it before the election and now this publicized complication. do you think ultimately that's going to be an issue for the economy and for getting back and beating this pandemic that people just will not take the vaccine even when it is authorized >> that is one of the biggest areas of concern i have. the government is doing a lot of really good things with operation warp speed and really working with companies and being willing to invest in vaccines that may not work, which means they would have to discard all that, which is what francis highlighted as one of the concerns it's exactly what we would want the government to be doing in

this situation astrazeneca, bioanalysts tracking science behind the vaccines tells you this is kind of on the bottom of the scale when he looks at what can be most effective but there's a lot of other really promising stuff. for me, my biggest concern is whether the public will actually take the vaccine and the selective disclosures, talking to wall street, not being as transparent, really undercut the goodwill the company did by pausing this trial if they want the public to feel confident, we need to continue to partner notjust with companies being transparent but also with people, folks in the community. for example, the surgeon general today said he's been talking to lady gaga and kylie jenner about encouraging the public to get vaccinated that's exactly what should be happen. >> chris and len, thanks for joining us. >> my pleasure. after the break, secretive data from palantir pulling back

the curtain giving a glimpse ahead of its public debut. we'll speak with an investor about the company and how an ipo could go you're watching "closing bell" on cnbc. ♪ ♪ ♪ ♪

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session high, dow, everyone higher except walgreen's deirdre with some details on what we learned today and a closer look at the empire of one of its founders. palantir needs to convince investors it's software not glorified less profitable consulting business. part of that image is the company's own doing. ceo has criticized other tech companies that, quote, sell, collect, or mine data built on advertising dollars. those ad dollars have approved extremely lucrative. palantir is still losing

hundreds of millions of dollars annually another key figure behind palantir is co-founder peter, it alliance with what he called one-party state of sill cop valley for years at the same time his influence and network can be seen all over the bay area part of paypal, facebook board member, built founders fund, the fund behind some of this year's biggest, most anticipated ipos and also tech's most prominent trump supporter. he's elusive, rarely talks to the media and declined an interview with us. >> thanks for that for more on that, head of research at manhattan venture partners, mid stage investor in palantir and holds the company in its all-star fund good to see you, thanks for joining us i guess the first point, been an investor for quite a long time and some people may not realize

how old this company is. >> yes, it's 17 years old. it's been through ups and downs. the leading narrative is what was wrong, what was the problem around the company, narrative, so much noise around the company underneath the covers which we saw today in analyst day and sone they put out and we know for a loan time. this is a solid company, a great product that's really come together in the last two, three years with the foundry product, revenue engine fired up with the product. now the installation is faster, revenues fazer things are coming together nice in the defense and intelligence community, gather data, good analytics in realtime, that's what the company and enterprises needs. this is in the right place there's a lot of noise around the company like you just heard, needs to clear out when they come out and report some quarters you'll see this is a good, solid company.

>> if the company is in the right place business-wise, what about the if the open or public -- becoming public is in the right moment with the way the market and nasdaq is at the moment do you think there's a risk this gets shelved or undervalued because of the market volatility >> yeah. i think the market is okay at this point i'm listening to the experts it should be okay. there's some turbulence, tend it for a while but i don't think it's really fallen off the cliff yet. they will come out in a few weeks. that's fine. they will be okay. direct listing is the right way to go because of the noise, like i said, around the company it needs to just come in there and just prove themselves from there. hope with the ipo and other unicorns and expectations get ahead of the whole companies in this case they can manage it much better and then prove themselves. >> i feel like one of the biggest investor questions,

santosh, specifically around the financials is the overdependence on government contracts. it makes up a little more than half of its business it did grow faster than nongovernment business lately but it can be very lumpy, as you know i'm not sure that's necessarily a growth story what do you say to those questioning that. >> yes and no. that oscillates. last year more enterprise, less government that balance is up and down. these are long-term contracts with army at six years long-term contracts, renewable so well entrenched in these companies. that's the beauty of this company, high level of stickiness, switching costs are high there's a lot of loyalty they have a narrow user base which they are trying to grow like they said but it's a high level of stickiness and revenue per customer is high they don't need a lot of customers but they need good,

deep customers that spend on their products of that's what's happening. you see they are inflicting -- financials are improving, first half of 2020 was good. if they can maintain that, 39% growth we saw in the first half, which is very likely, depending on the backlog they have, the pipeline they have, i think they are on the right track let's hope they deliver, which we think they will they have to do it we know how the ipos have been punished if we miss numbers, high-growth companies. rather than be conservative, get out there and prove themselves. >> santosh to the broader markets, did you feel valuations were getting stretched to the upside do you think we've had enough of a pullback to warrant a slow and steady climb higher again? >> yeah. i think a little more pullback is warranted, healthy. some was just crazy, 100, 200% that's ridiculous. a little bit pullback is

warranted. but these companies, when you look at it longer term, they are in the right place this is the future cloud computing, data analytics, e-commerce that's the future. digital and enterprise what do you call it electric vehicles and all that stuff these are the future themes. the software companies are providing to that, feeding, selling products into that they are in the right space. some pullback, good entry point but they are long-term stories. >> have you sold any of your stakes in some of these companies you got in early like a lift >> well, lift, yeah. we're out. we normally hold it until the lockup period and then return it back to the limited partners they can do whatever they want after that but palantir we're still holders there. we pretty much hold onto the stuff. some much longer than six

months. >> will you sell out of palantir as soon as you can once it's public, like you did with lyft >> no, we would recommend keeping them it really depends on the limited partners and even in the funds. it really depends on the performance. if you like the companies, we get in and invest after doing thorough research. we invest in long-term fundamental stories. so to the extent we can hold them, we do hold them. if by agreement if we have to return it back, we do give it to them to sell. >> i'm sure we'll talk again before that question comes to the table. thank you for joining me. >> thank you thanks for having me. we've got 30 minutes left of trade. a rally, session highs 700 points we hit 700 just moments ago. everyone higher in the dow

except walgreen's best day for the nasdaq since going back to april, up 3.25%, which looks impressive we had seen a very sharp pullback over the last three trading sessions, took us down 11%. the strap of luxury lvmh pulling out tofhe deal with tiffany's how that deal lost its luster. >y

deal is over, a bit of a fight between tiffany's and lvmh hi, robert. >> a letter from the french president asks them to delay closing makes them unable to complete the transaction at this time tiffany responding trying to back out of its obligation and

lvmh has unclean hands where does this leave tiffany's? it's crushed the global jewelry business tiffany sales down 45% in the second quarter saying in a conference call earlier today, it is, quote, not happy with the way tiffany has been managed in the past few months tiffany saying fundamental strength of the business is clear. third quarter earnings will be up over last year. industry experts say right now lvmh could possibly come back to the table with lower price or maybe that delaware court could rule in favor of tiffany or maybe tiffany goes back to being a public lly traded company. guys, back to you. >> robert, the blaming on trade tensions between the u.s. and france on the delay, is that all just sort of an excuse because the luxury picture has changed

so much with tiffany sales getting hammered >> that is the central question around the letter from the mississippi industry in france also the min strid cited those trade discussions and tariff threat as the reason for this deal to be delayed ie, our french company shouldn't help an american company by acquiring it what tiffany will say, look, even that letter doesn't prevent you from doing the deal, doesn't delay it there's so much intrigue around this letter, the reasons the french government gave for the letter and the reasons lvmh is using the letter to back out of that deal. in this court case in delaware, that letter will be exhibit number 1. >> robert, thanks so much for that. still ahead nba legend shaquille o'neal ultimate model for credit scores to promote financial inclusion across

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welcome back d let's start with astrazeneca one of the front-runners in the global race for a vaccine announced it was pausing its late stage trial to review

safety data. the company says it's a are you feen action. stat news reporting investors given a private briefing in a call set up by investment bankers at jpmorgan, which is raising questions about disclosure and public trust. latest number shows continued leveling off in cases in the u.s. hot spots including north dakota, illinois, arkansas and delaware new york mayor bill de blasio said restaurants will be open for indoor dining at 25% capacity at the end of the month. wilfred, very welcome news for nyc restaurants worried about going into the fall without being able to open indoors. >> welcome news for sure for restaurants and diners, albeit september is welcome that heat has gone away and the dining on the street will come into its own in the next month or two until the snow comes and indoor dining will be more welcome. time for cnbc update sue herera has it for us hi, sue.

>> hello, everybody. we start with virus numbers increasing in parts of europe. france reporting 8,000 new covid-19 infections today. warning of potential shortages once again of icu beds back here at home in michigan, dpi gyms have reopened for the first time in six months capacity it limited to 25% and masks required at all times. president trump's election effort raising $210 million. that's record for the trump administration however, it's $150 million less than joe biden's haul. go to cnbc.com and see how they are doing raising money for congressional races. l.a. rams made jalen ramsey the highest paid quarterback in nfl with extension

he's the fourth player to sign a record breaking contract extension in the last two years. you are up to date that's the news update sara, i'll send it back to you >> sue, thank you. just under 30 minutes before closing bell sharp rally on wall street highs, s&p 500 up 2.75, tech heavy nasdaq is the winner, up 3.4% it got hit the hardest in the last three session selloffs. discount retailer five below up 40% from their march lows. talk to the ceo about what's driving the strength and how he's preparing for this year's unusual holiday season that's next. [squeaky shopping cart] [sniffing]

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welcome back, dow 630 points holiday shopping season right around the corner. latest cnbc states of play poll finding more americans feel safer going out to shop versus dining and going to the movies let's bring in joel anderson, ceo of five below. joel, just before the break, we alluded to your stock price which has been a moonshot since march lows not bad for brick and mortar retailer what's driving the strength in the why are you seeing a surge in demand when other retailers are not as retail reopens.

>> thanks for the shout out. it's a couple of things. we've always been a value retailer since we began in 2002. we learned a lot from '08. since the shut down, we've really moved quite quickly to reopen our stores. in fact, in record time we got them reopen. i think this time we're in right now, parents and families are all living in a different situation than they were looking for a place to save money, have a great experience and be in a safe environment i think we're doing all three for them we've seen great success since we reopened in every market. >> what's unique about your business and your consumers are much younger, teens, preteens. what do we have to know about shopping habits, how they have changed it post pandemic and what they are looking for? >> yeah, we've always catered to

teens and preteens a couple of things have changed. one, safety is the number one thing on their mind. we get asked a lot about it in the stores our associates do a great job keeping our stores clean and safe, spreading out customers. a "can i afford it?" shopping pattern, less transactions but higher basket. coming in less frequently but buying more. seeing different categories. some are doing much better than before some are falling offer since prepandemic. so with that we've adjusted or mix and customers adjusted well with what we have in stores. >> joel, you mentioned you reopened your stores at a record pace you've been opening new stores all together how is the current environment the right moment for that. >> well, you know what, fortunately we have a good muscle on how to open stores

quickly. we never thought we would have to use the muscle to reopen existing stores. basically at the start of the quarter we were at zero. we reopened 900, and then we saw the opportunity to get back to playing offense. a lot of stores we started to get them open again. that resulted in 64 -- 63 new stores, which was a record for us in q2. >> i went to your website today, back to school is all over the front page and also a halloween section. how critical are those events to your business and what's your expectation with the latest to call off trick-or-treating. >> look, our memphis ants did a great job with back to school. we shifted it more to being about room even though kids are going back to school, they are going back

in different environment, municipality, they are going back in their homes. they want to create an environment that makes school comfortable being at home zooming. memphis ants doing a great job we're seeing a great back to school season, albeit different from the traditional season, all about backpacks and pencils. now halloween, less about trick-or-treating and decor and creating a fun experience at home at five below you can do that without having to break the bank, so to speak. >> covid-19 related products like hand sanitizer and wipes, are they still flying over the shelf or has it gone back? >> i'll wear my favorite mask. we sell masks, hand sanitizer. we like to have fun and spread

cheer. shirts and t-shirts doing really well that's one example, five below about being a little snarky, catering to kids and having a good time when you visit our store. >> joel, thanks -- >> everything is -- i just wanted to ask one thing on the supply chain how everything is cheap and below $5 where is it made were there any hiccups in that supply as we saw shutdowns around the world during covid? >> thank you for that question we've got a great vendor community. i won't tell you it was easy it was one of the hardest thing we had to do to start that from scratch. our products made from all over the world. certainly a large part comes from china but we also produce a lot here in the u.s. all our t-shirts, for example, are printed here we source from honduras, vietnam, india, and many other

countries. so the teams dug in and had to start from scratch but flowing nicely now. >> joel, i'll try it again, thanks for joining it, very much appreciated. >> thank you, wilfred. have a great day. >> off the break, slack gets whacked, tech recovers and lululemon starting to look a little setedtrch or isn't it those stories and more when we take you inside the market zone. can help you track your pizza... come on cody, where are you buddy? ...then your bank should have the technology to help you track your spending. virtual wallet® is so much more than a checking account. easily see what's free to spend. and see where your money is going so you can budget even better. okay, he's got to be close. he's six blocks... in the other direction. make a left, make a left make a left... he made a right again. virtual wallet® for digital banking from pnc. it's time to get more from your bank.

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don't get mad get e*trade and start trading commission free today. commercial-free market zone. mike santoli to break down the crucial moment of the trading day. wealth management ceo josh brown is with us as well good afternoon to you. josh, let's kick things off with the broader market stocks rallying today, not erasing last three sessions, s&p on track for the best day since june 5th and nasdaq on track for best day since april 29th. mike, clearly a nice bounce, dow up 260 points, high of the session was 700 points do we have any idea and does it

matter who the marginal buyer is stepping in? >> you certainly never know, certainly not in realtime. some indications from trading desks that definitely hedge funds came in and tried to buy some of the formerly leading stocks in recent days. you don't necessarily know how it's getting sorted out. what is interesting the market initially averted a breakdown in trends that might have been the case if they declined further today. the bounce was well timed and necessary. point out the high for s&p 500 was below where we closed friday an attempt to recoup yesterday's loss and faded from there. seems a little posturing and repositions people wondering if that was enough of a gut check to refresh or not. three days of selling after the huge one in august maybe wasn't quite enough. >> 7.6% off the highs for nasdaq, 5% off the highs for s&p.

josh, what have you been doing over the last few sessions. >> i think one of the key things right now, if yesterday you were looking at your screen and saying oh, my god, this is seriously going to jeopardize my intermediate to long-term retirement plans or spending plans or this is messing with my psychology i'm having trouble dealing with what i'm seeing. forget percentage losses in dollar terms, right? you probably are overextended, in areas of market in high concentration. this is a great chance, some days you get more back this is a day where you say i never want to feel the way i felt yesterday again, so make some changes for some getting off the margin. for others knocking off-weekly options trading. for others, reducing

concentration, focusing on building balanced portfolio. if you're doing those things, days like yesterday will come and go and they won't make you want to vomit. this is an anti-vomit. let's focus on never being in that situation ever again. we work with very wealthy, successful people, and they have the same issues as somebody's first year in the market we're all the built the same we have the same psychological makeup to varying degrees. we have to temper the temptation to all be in tech and tesla and temper like yesterday to be completely out and turn our back on investing today is a great day to gunfire you the opportunity to do that still got about ten minutes left. >> it's anti-vomit for the whole time we have breaking news on tiktok. julia boorstin. >> "wall street journal" reporting tiktok and u.s. officials discussing ways to avoid a sale saying they are discussion foengs arrangements

that would allow the company to avoid a full sale of those u.s. operati operations i just spoke to a source close to the situation that tells us discussions focused on resolutions to bytedance ownership of tiktok that would solve security concerns without a sale just a reminder, bytedance has been in talks going back to the beginning of the year about ownership of tiktok, which was originally purchased as missically and then turned into tiktok and part of the larger chinese operation. things changed when president trump said he wanted an american company to buy the operations rather than it just be restructured so my understanding is that the conversations before president trump became involved were about restructuring and not necessarily a sale and the president indicated he wanted a u.s. company to really acquire

those u.s. operations rather than the company just being restructured i believe this reporting indicates those conversations about a potential restructuring have not entirely ended, because that was something always on the table before the president got involved so it sounds like things are very much fluid. we do have that deadline indicated of september 15th of when the president wanted to see a deal announced >> i'll take it, julia, just seeing share price reaction especially walmart of the big suitors. walmart off the highs of the day up 1.5%. microsoft also saw a little tick down, oracle small tick down as well all three stocks are still higher mike santoli, there's the sort of walmart selling off the news. this has been a driver over the selling of these stocks that they might end up with the u.s. operations of tiktok. >> it's fun the way the

perceived upside of tiktok has been assigned across the board to potential suitors and surprising for walmart $400 billion company seen as being a significant swing factor been a lot of fwiss and turns in the story. i doubt anybody wants to act like they know what's going to happen p it is fascinating there's this asset in play that three or four months ago nobody thought would have a shot at people had a shot but might still not have a deal. >> walmart pulling back more than microsoft on the news might be we hit session highs and higher across the board today. josh, do you think this gives you opt mission u.s.-china tensions aren't as bad as thought the last couple of weeks? >> i think there's going to be an ebb and flow for the rest of our lives. u.s.-china tensions are never going to go away doesn't mean it's a catastrophic threat all the time or

everything that happens we should all of a sudden be afraid of china or mad at china or they should feel that way about us. this the number one and two economy in the world now they are about to kind of change places at a certain point. not on per capita but certain point chinese gdp annually will be bigger than hours this is going to be this kind of partnership we're all going to have to learn to live. i don't think investors should be making drastic moves in their portfolio as a result of whatever the latest state of headlines is i could tell you that china has been trying to buy various types of u.s. assets the entire time i've been in the industry. that ebb and flow has been natural. just be thankful they are trying to hold onto bytedance and tiktok and opportunities are dancing because they were trying to buy precious metals, trying to buy refinery assets congress has had to block these kinds of transactions many

times. they have back to us i don't think it's an investor story. it's interesting but we don't need to react to it. >> nasdaq up 3% with 7 minutes left slack shares plunging due to quarterly results. here are the details. >> slack has gone from work from home darling to work from home underperformer with today's slump shares up only 11% year-to-date. that's less than half the tech sectors gain in 2020 and far from that cloud, shopify, many others in fact, slack is currently trading at less than its direct listing reference price of $26 a share. this chart really sums it up revenue growth stayed constant at 50% over the last three quarters guys, no remote boom seen in this key metric. back to you. >> thanks for that josh brown, where are you on this one will you still hold it and were you disappointed >> i got out about a month ago

but i may get back into it i think it's a great product, not a great stock. i had been wrong being in the stock. i could have thrown a dart and picked any other work from anywhere plays and probably doubled or tripled my money. on this one i wasn't so fortunate and i got out of it. it's not going to put up zoom-like numbers. wilf, i have to tell you, that's the biggest problem with the thought, other than the existential threat from microsoft, which is overdone it has to live in a same universe as a company like zoom that just repeatedly did he mol issues -- however high the expectations are, they find a way to beat it in terms of new clients and new billing, and slack is just not doing that i don't know if that's because of the nature of the product itself or that's just the adoption trend in something like software versus video usage. but that's the problem

the comps are around the industry are really tough and not hitting those numbers and the street is not feeling them. >> wanted to hit a pair of retail stocks today. when it comes to retail all about comfort. lululemon and american eagle out with results confirming loungewear is in both stocks moving in opposite directions today start with lulu. strong quarter, highlight, 155% e-commerce growth, really speaking to the strength of the brand. why is the stock down? so far this quarter company sales growth is tracking in the mid to upper single digits according to the company that may have disappointed the very high expectations of wall street given the pain of apparel an outlier strong brand affluent consumer base and on trend sportswear and loungewear. the biggest problem for lulu is the wait list outside the small stores not allowed to operate at full capacity. it was also one of the most

highly valued specialty retailers going in with a run-up of 50% so far this year and a credit to citigroup nor downgrade purely on that valuation after the incredible run-up most analysts say a buy. american eagle is up today on better than expected results thanks to its secret weapon, arie, the lingerie line for real women. that's how they brand themselves they debuted active wear in july sales broke through 32% and saw record margins arie digital sales more than doubled up 113% but the core american eagle brand saw sales down 26% jeans, mike santoli, not as hot as soft stretch pants and legsings. >> are you asking if i approve of this trend? i would disagree -- >> i was asking about the stock but i know you have teenager girls. >> who are doing nothing but

buying jeans and jean shorts but a lot is vintage or in other words stuff folks are throwing away i'm not sure it bears on a channel check. the lulu thing, though, massively high expectations built into a great stock and they are not being very impressive about guidance in terms of in-store traffic down the road hard to hold that against them. >> it's 399. this stock was at $400 a share the street thinks they are going to earn between $4 and $4.50 next year. you're already paying 100 times forward earnings, $45 billion market cap close your eyes and try to come up with an apparel company with that market cap. it was a $200 stock a year ago already bid up for all the wonderful success they are having i have this on my radar as potential buy. this is one of the names i knew was right and i just missed it

because i suck at life if i see this with a two handle i'm going to get very interested because i do think it's paid already. a lot of punishment from the highs. a little more and i'll probably get involved. >> at least today is a nonvomit today, so that's good. we've got two minutes left in the trading day. mike, what have you been focused on in the internals. >> internally, the market has been firm, if you look at the volume split when it was down not a wash out. now that it's up a lot, not overwhelmingly positive in terms of breadth to the upside that's solidly positive but not overwhelming given we're up 2% in the indexes take a look a little bit within things to the sectors. semiconductors versus industrials, kind of like old versus newer ones. older outperforming. this is on month-to-month basis. industrials, cyclical and real economy sort of asserting

itself se semi amazingly strong. volatility index is definitely buckling again, this is pretty well juiced, pretty well inflated back below 30. moving in the right direction, got into the mid-30s which indicated a little stress than overall markets might have been hinting at wilf. >> i'll take it through the close here just to round it all out we are getting a rebound for stocks after three days of heavy selling, especially in technology the dow, though, is well off its session highs. in the 3:00 hour we were up as much as seven points now 455 points losing a bit of steam in the close, potentially not what the bulls would want to see. gainers like microsoft and salesforce, hardest hit over the last few sessions. walgreen's, disney, boeing are the losers

as far as s&p 500 is concerned up 2%. again off the session highs but nice rebound from the selling. all sectors are higher, technology in the lead materials, consumer discretionary, health care, those are all doing well pretty decent close but definitely off the highs earlier in the session i would note oil which had a big comeback day as well even with the gains today wilfred, we are still down on the week, which showed you how hard the selling was on a day like yesterday >> welcome to the "closing bell," everyone. i'm wilfred frost with sara eisen and mike santoli cnbc market commentator as sara said, a soft half an hour, we only closed up 439 points on the dow. the high of the session had been just higher than 700 at one point the snapchat up 2%, nasdaq led the rebound having led the selling over the last couple of days nasdaq composite up 2.7% all three indexes breaking that

three-day losing streak. the nasdaq composite and nasdaq 100 for reference both in correction territory from recent highs down 10% or more after yesterday's close covering 3% of those. all 11 sectors were higher today. coming up we will ask nba legend shaquille o'neal why he's teaming up with the office of controller of currency to bring greater access to capital and credit to millions of americans. joining us to talk about the market day josh brown ceo of wealth management still with us and liz young joints us director of strategy to join the conversation mike, to start with you, clearly a nice rebound overall something we can't turn our nose up. there were some disappointments under the surface as well. for example, financials not enjoying much of the rebound despite yields rising. >> not at all. it seems mostly about what was down the most in the selloff of the last three days did bounce

the hardest today for the most part which meant growth tech and former momentum names. it seems mostly about a shake out of those crowded positions august was too straight up a lot of buying intensity, upset speculation. we've been talking about that. market poised for pullback, the air pocket for three days. the fact it bounced after that is a net positive but doesn't render an impressive verdict impressive but not decisive type bounces. the highs nor the day s&p 500 was basically what we closed on friday so didn't quite recover what happened yesterday. market likes to keep people off balance and doing a good job >> so where are we, liz young. is this a healthy pullback, the start of a downturn or is today a signal we're on the rebound. >> the pullback we saw in the last three days was right sizing of enthusiasm. we were really running up.

that run-up was huge the best in 30 years coming into fall it makes sense in theory we should hit a couple head winds i don't think it's an issue if that happens i also don't think this is the last pullback we'll see through fall i want people to remember, pullbacks, corrections without another recession or without a double dip recession are buying opportunities. i think this was an opportunity maybe to just spread out the exposure in your portfolio a lot of people have ended up overweight tech either by accident or on purpose this is a good opportunity to spread it out and make sure you have exposure to what i think is going to lead in the next leg of this recovery. >> josh, who do you think stepped in to buy tesla and push it up 10%? >> probably the deep value guys, i would suspect. i think -- i don't know. there's a lot of options activity that triggers buying and selling of that stock. it's very hard a good question, wilf, very hard

to answer in realtime. i want to build on something liz said because it's so important take a look at what's working despite the, quote, tech wreck and volatility the last couple of days. home builder, anything in itb looks fantastic. we're not going into a double dip recession if the buyers in those stocks are right, because household formation is a massive driver of the real economy and nationally trends are strong in household formation, sales of existing homes, remodeling, redecorating, furniture. this is really, really important. people should be focused not on three or four electric vehicle stocks an untouchable stock for a decade is one of the best technically setup stocks in the market right now it's 16. i don't see any resistance here, no reason why it couldn't get up

to 20. the reason that's working because the market isn't pricing double dip recession if we are going to get any kind of leadership out of cyclic always you're going to want to continue to see that one name i'm in that had a fresh breakout today, barrett gold, me and warren b involved in this name a big part of the business is copper, so right alongside fcx a lot of the new geologist they are finding gold in, you find gold come in siding with copper deposits i think when you see the way that trade is starting to shape up, leadership out of xlb, the material stocks, new 52-week high of caterpillar, liz is right you want to pay attention what could be next. >> he calls you josh b as well that's his shorthand for you. >> i hope so >> warren b and josh b some of these names, we're talking around cyclical stocks,

maybe the market is pricing double digit recession, when you get news like astrazeneca, the pause in vaccine trial because of potential side effect, does that make you wonder about the cyclical trades? because so much is based on the belief there is going to be a vaccine sooner rather than later and we are to get through this in a way that brings consumers back into the economy? >> luckily it wasn't the only vaccine we're kind of putting our money on i think that it shows that the system has worked. i think all americans and consumers around the globe want it to be safe. i'd rather have scientists come in and check that. i don't know it's necessarily a bad thing. i'm not sure how it's going to shake out anyway i don't think optimism about the vaccine is baked into the market a lot of it is in there. i do think the market is expecting a vaccine sometime early 2021 but i don't think it's all baked in yet.

good news on the vaccine, we still see a nice pop i would continue to expect a big pop if and when we get concrete news on a vaccine. in the meantime we still have a recovery that's ongoing under the surface and we're trying to solidify some of those fundamentals so the next phase i was talking about and i absolutely agree with josh, the next phase is as we solidify some of those economic fundamentals, you should see a garden variety story. that's industrials, home stocks, it's going to be auto, consumer discretionary, those cyclical pieces of the economy dependent on the consumer and dependent on manufacturing. >> one cyclical sector, mike, that never catches a break, it seems, the banks, which slipped quite noticeable into the close essentially flat within that i'd also point out wells fargo back to down more than 55% year-to-date.

we doesn't discuss this that much friday. the news that warren buffett is still selling. the thing that stood out, from 9% to 3%, that suggests to or three months of selling that stock. one wonders if and when he's finished that stock could rip higher the banks and wells fargo in particular still failing to catch any break whether it's a rotation into cyclicals or positive economic news. >> it's a group without much sportsmanship and a group without buybacks we're seeing how much the sector was relying. a little more leverage to the direct reopening story or direct to the housing boom. yes, banks are somewhat beneficiaries but we also have massive mortgage forbearance

story. so they are kind of in the middle absorbing friction without being levered beneficiaries. the yield suppression story is not new either periodically a little too cheap, too stretched relative to things like growth and have a great bounce beyond that it hasn't been muc of a revival trend. >> a number of notable investors appeared on cnbc, the past two days, to weigh on market volatility and where he this see the market going from here listen. >> we put the highs in for the year both nasdaq and tesla and now it's a sell the rally not buy the dip market the psychology has to change and it's slow to change. people have made lots of money buying the dip you're going to see more pain. >> we're in an absolute raging mania.

we've got commentators on your networks encouraging stock splits they go up 30, 40%, big on stock splits. >> raging mania josh brown a lot of people listen to stanley. he did get the call wrong when he said the risk/reward never looked good for the market and it rallied there he had a mea culpa on that but he was on today talking about the mania and stock splits and things we talk about every day, including stocks like electric vehicle stocks we talk about with revenues going up does that resonate >> yeah. i like these guys -- look, these guys are elder statesmen no disrespect, older than me at least. i like these guys are saying it is what it is. it's a mania i was on here screaming about

stock splits and how ludicrous it is pointing out stocks that need to split to get it is market cap up or for a catalyst for a new bull market. i hate all that stuff. so when you look at it that way, we don't root for anyone to lose money, obviously when you look at it that way, the action since last thursday is really positive because i think it wakes people up and shakes people up in a way that's not conducive to long-term success. if your reason for buying a stock is because it's going to split, remember what buffett sudden about that. he doesn't split his stock because he doesn't want investors in his company that would buy the stock for noneconomic reasons. why? those are people who would sell a stock for noneconomic reasons also we want that out of the market it's not that splits are inherently bad we don't want s&p 500 inclusion as a catalyst to buy a stock and 10 million new investors going and chasing that folly

we don't want splits, every two hours hitting the market that's not great stuff if we can wipe it out of the system and not cause a recession doing so, have pullbacks and corrections, i don't hate it i don't hate it. i guess i grew with nuovo and druct and maybe we've gone a little in the way we need to do, which is calm people down so we can get back to investing and not turn this whole thing into vegas. >> liz, to mike's point, do you think we've shifted from buy the dip to sell the bounce mentality? >> no, i don't think so. i think there's a lot of cash on the sidelines. when that cash starts to come back in, and it is coming back in people go to cash in droves and they come back in in drips as it drips back in, that cash is going to look for more attractive evaluation

opportunities. it's natural took look for things more peten down or stocks that haven't driven us up to this point i don't think we're in a place now where you have to start selling rallies and take exposure off the table there's a lot of investors out there that still aren't exposed. >> also the fed still buying which some bulls note. >> josh brown, liz, thank you for joining us got to leave it there. up next we'll ask lazard ceo peter or zag about the economy and more retail as companies is avis during coronaru crisnd what the ripple effect on the economy. we're back in just 90 seconds. ♪ come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out.

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or to give the gift of stock ownership. schwab. own your tomorrow. . >> we've got surprise earnings out. kate rooney with the numbers. >> hey, sara, cloud security beating on the top and bottom line for fiscal fourth quarter let's get to revenue that grew 46% year onover year to 125.9 million, better than expected on the bottom line, adjusted earnings of $0.05 a beat by $0.02. this has been a huge beneficiary of digital economy and they moved to the online economy the stock is up 170% year-to-date so far.

it is taking a slight dip after hours. guys, back to you. >> thanks so much for that. major indexes closing high, breaking three-day losing strength on the corporate bankruptcy front cnbc confirmed jcpenney with a deal with their landlords, neiman marcus out of bankruptcy by december." peter orr ac, neiman marcus is one of their clients director of office and budget under the present obama administration peter, thanks so much for joining us more broadly before we get to those specific stories and retailers as well, how important is it we do see some kind of stimulus bill to prevent another wave of bankruptcy >> massively important it's not just bankruptcy but overall health of the economy. what's been happening and i heard earlier commentary, lazard

did a survey of health ceos and investors. the results of that was that we don't expect a widely available vaccine until the back half of 2021 not the front half of 2021 in the meanwhile there's significant ongoing economic damage from the pandemic that has been hidden to date by substantial government support to the economy so substantial that credit card debt has declined and saving rates have increased as that is withdrawn, underlike effect of the pandemic itself becomes more manifest. failing to do another round of stimulus is going to lead to a lot of pain in november, december, and january because the underlying impact from the pandemic is still there. >> why hasn't that pain emerged already, peter, given that the first significant stimulus has already expired? >> again, that was so

substantial it provided a big cushion for families they were able to actually build up savings to reduce their credit card debt and we're still seeing after effects of that phenomenon almost like the roadrunner that has run off the cliff and we haven't seen it yet. at some point over the next month or two that accumulated savings cushion will be exhausted for most families and the lack of new ongoing government support is then going to be the problem. so this is a very odd situation where the incoming jobs numbers last week, job opening numbers this week, those are very positive that's mostly lagged effect of substantial government support that's been provided even though that's ended, families are still able to live off of the accumulated savings because that was so big. >> so we started by you sounding the alarm a little bit on retail

bankruptcies why do you think the broader market hasn't paid so much attention to the ripple effect that could have on the economy with jobs, with commercial real estate we're getting -- cnbc is learning mall owner simmon and brookfield are set to rescue jcpenney from bankruptcy how should investors feel about these troubled landlords having to rescue their bankrupt tenants when they themselves are facing so much pain >> well, look, i think retail you won't be surprised to hear we're in the going to talk about specific lazard clients or specific officials but retail broadly smeg follows that consumer trend when consumers are in trouble retail suffers as a result it comes back to the same phenomenon we're talking about earlier. why is the market where it is? i think that's largely the result of a few things including very substantial monetary stimulus that reduced the tice

count rate applied to corporate earnings and perhaps, and this is where it gets tricky, perhaps some degree of undue optimism about the timing of when a vaccine will be widely available and out of the woods on this particular pandemic. >> are you concerned, peter, by the size of the growing national debt and deficit is it important the dollar remains central reserve currency of the world in order to offset that over the long-term. >> i'm not particularly concerned boult u.s. debt and deficits nor european debt and deficits for advance economies a lot of demand for the debt they are issuing that is a mirror image of this very significant monetary reaction we just mentioned. where there is a problem, however, is in many emerging markets. recently i will mention lazard,

to ecuador facing very substantial fiscal pressures and sovereign debt crises and we'll see more of that in the future those countries that often have to borrow in foreign currency not their own currency, there is a public debt problem. for most countries in europe, massive physical expansions to offset the pain we were discussing earlier from the ongoing pandemic. >> peter, thanks so much for joining us good to see you. >> good to be with you, thank you. >> new sign of life for the economy up next. mike santoli improving economic trends in the u.s. and how that could impact the market. we'll be right back. ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪

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and tailored recommendations. - when you see or hear of others confronted with hate, there are many positive actions you can take. volunteer, call friends, or host a community meeting to denounce the hate and talk about the shared values you do have. breaking news on astrazeneca. meg tirrell with the details meg. >> we are getting a statement from astrazeneca after the report from stat news that its ceo shared details with investors on a jpmorgan call on what caused the clinical trial halt for the covid-19 vaccine.

based on comments made earlier by our ceo stating that we have confirmed that a participant in our clinical trial suffered from transverse myelitis are incorrect. he stated there's no final diagnosis and there will not be one until more tests are carried out. those tests will be delivered to independent safety committee that will review and establish a final diagnosis. we can also confirm there was a brief trial pause in july after one volunteer was confirmed to have undiagnosed case of multiple sclerosis, which the independent panel concluded was unrelated to the vaccine. sara, they didn't comment about the decision to disclose details to a select set of investors rather than broadly or in response to questions about the press including us i have followed up on that also, the stat news article essentially said that the consistent -- the symptoms were consistent with transverse myelitis, which is a rare spinal

cord problem and did note the diagnosis is not confirmed yesterday. that diagnosis had been recorded from several outlets from unnamed sources early today and yesterday and nih director collins mentioned mooyelitis ina senate this morning. it has not been confirmed. of course, guys, the big reminder, we don't know if this event was caused by the vaccine yet. but followed up with astrazeneca to get more details. back to you. >> meg, thanks as always for staying on top of all of that for us let's get to mike taking a look at economic trends and whether or not that's showing improvement. >> straed improvement. tech stocks, under the surface this has been going on in terms of improving trend this is goldman sachs reopening index. it's at a high all the way back to march this uptick is labor day weekend. might be a downtick based on the

timing this essentially says 72% of the preshutdown levels in terms of reopening, restaurants, movie going, mobility, retail, take a look at gdp tracking it doesn't look quite as bright but also has bounce significantly. the fed produces this on a weekly basis a downtick, might be labor day, end of august. that's a sharp rebound how much more are we going to recover. till down 4% at this point on year over year basis look at the liquidity backdrop we have an economy that's starting to bounce and recover in terms of overall policy, monetary, fiscal, credit, what the foreign exchange markets are doing, all that together, credit suisse calculates very loose policy, way losser than after global financial crisis very tight in the last little bit this tells you the formula for

why markets stayed supportive up to this point, guys. >> i'm surprised you would admit that, it has something to do wit. >> plenty to do wit, just not everything. >> mike santoli, thank you up next, hall of famer shaquille o'neal and acting controller of the currency more americans participate in the economy by reducing barriers to credit and capital. that's next. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders 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'm a delivery operations manager in san diego, california. we were one of the first stations to pilot a fleet of electric vehicles. we're striving to deliver a package with zero emissions into the air. i feel really proud of the impact that has on the environment. we have two daughters and i want to do everything

i can to protect the environment so hopefully they can have a great future. time for cnbc update with sue herera hi, sue. >> hello again, wilf hello, everybody here is what's happening this hour the u.s. government saying it is preparing to end enhanced screening of some international travelers. that's according to reuters. those changes could go into effect as soon as monday in southern oregon residents returning to find charred debris where their homes used to be evacuations done on short notice before the wildfires there tore through the neighborhood

major league baseball reportedly finalizing plans for postseason bubble with games in california and texas including dodgers stadium in los angeles go to cnbc.com and see where the world series is likely to be played and which issues are still being negotiated ellen degeneres says her talk show will return on october 31st she said she will discuss allegations of sexual harassment and toxic work environment that's it for the hour, send it back to you. >> thanks, sue herera. 45 million that's the number of americans credit invisible or unscorable according to consumer protection viewer. black and hispanic make up disproportionate part of that group. 15% credit visible compared to 9% hoping to help close that gap

with a launch of its latest initiative called project reach. one company helping bring in steady app investor shaquille o'neal and acting controller of currency brian brooks. good to have both of you here. shaq, how did this partnership come together. >> when i first met steady, puts power into the hands of american worker when i say american workers, i'm talking about workers working hard to make ends meet steady is like a union for fulltime hourly and gig workers, the people that have been mostly affected especially during covid-19. >> mr. comptroller, what are your goals here and how much has this problem been exacerbated by covid? >> covid makes everything more difficult. let me start by saying, sara,

shaquille's initiative is so important at this point in time. we regulate banks. what we think about banks doing is managing spend. how do you manage credit, leverage yourself to buy a house. what's so terrific about what shaq is working on, he's got the other side of the equation covered, which is structural issue of gig workers if we can make gig work more like fulltime work, make it easier to manage financial lives on the front end and not the spend side, that's a revolution. that's what project reach is all about. >> brian, when you founded project reach, what was the key factor, statistics, that meant it was necessary i know you've had initial meetings with ceos from banks. were they not giving enough access to capital in the first place? >> i don't want to say not enough access but i think the real issue is here we have protest marches around the country crying out about

structural problems in the economy. it occurred to me, what if we took that seriously. if there's something preventing minorities from participating fully. first credit scores, 45 million americans don't have one, which means they can't get a credit card or buy a house. then issues with affordable home ownership where people don't have an inheritance, aren't forring to have a 20% down payment. that led me down this rabbit hole of we can fix this. with shaquille's help we can go a long way in this direction. >> shaq, we've been having this conversation on cnbc really since the protests have started around the killing of george floyd. so many business leaders have stepped up on this network to make pledges and to take accountability and ownership of the fact that they need to have more diversity at the board level and the management level

and the hiring process there have been a number of pledges even today, one signed by zillow and a number of companies to get one diverse board member do you think there's going to be meaningful change? do you think this time is different when it comes to corporate america stepping up and making these promises? >> yes, i think time is definitely different kudos to corporations stepping up and talking about diversity and inclusion, especially if they have never had it before. our time is now. pledges are very important but we as african-american community we also want to see people do things, too. it's not about the money, but coming in giving people equal opportunity, treating people fairly. >> how important are those considerations, shaq, when you decide whether or not to partner with a company, partner with their board. are there any you've had to reject because they don't meet

your standards >> i'm only on one board and that's the papa john's board kudos to jeff smith, rob gordo , before i got to papa john's it was a pretty standard board. i don't know what standard board. there wasn't a lot of women on the board, no african-americans on the board when i did a deal with jeff smith, i asked if i could be a board member we changed the board we have a lot of beautiful, strong women we have a hispanic woman from san antonio. the board is more diverse now. papa john has been doing well since we created the new board >> what about sports, shaq i wanted to ask you about the nba, also dealt with this protest issue. making very strong statements when they didn't go out on the court and a number of other teams followed how do you expect this to

manifest itself for the league are theying to enough and for the nfl, which is about to start its season and struggled with this issue in the past >> adam silver has been a perfect commissioner he let's the guys use their platform to say what they have to say he stands behind them. everyone is tired and fed up and feel the same way. if everyone used their pensacola the form positively to get their point across so things can be heard, i think it's a good thing. >> brian brooks, shaquille o'neal, thank you very much. a pleasure. >> brian, i just want to say, i appreciate what the occ is doing for trying to reach people who are not seen by the bank we call them the credit invisibles we know helping establisha relationship with the bank and helping people get president thank you, mr. occ man love you very much.

>> thank you. >> thanks to you both for joining us, brian and shaq great conversation by the way, tomorrow, cnbc event is hosting an inclusion in action forum, inclusion in action forum my apologies we're examining how business leaders can take immediate action addressing disparities and sustainable solutions. register at cnbc events.com/inclusion. still ahead shares of home furnishing company rh are higher after reporting earnings ene wnheumrsdo t nbe wh wreturn 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.

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rh, the company formally known as restoration hardware. results are out. seema mody with numbers. >> sarah, rh hitting the ball out of the mark, adjusted earnings of $4.90 versus $3.41 that wall street was expecting as it continues to benefit from this covid shift towards spending towards the home. that's reflected in the monthly numbers as well. core demand of 47% in august, already up 44% in the month of september. you're seeing the stock up as much as 15% in after hours trade. wells fargo pointing out second home demand has been elevated among higher income households that's part of what's driving the demand for its furniture this even portfolio the pandemic was trying to shift from sleepy mall-based retailer with omni based with those galleries in major urban cities.

>> thank you very much don't miss jim cramer's inclusive interview with rh's ceo. these tomorrow 6:00 p.m. on "mad mone money" stocks up after a selloff. we'll look where there could be buying opportunities next. we love our new home. there's so much space. we have a guestroom now. but, we have aunts. you're slouching again, ted. expired, expired... expired. thanks, aunt bonnie. it's a lot of house. i hope you can keep it clean. at least geico makes bundling our home and car insurance easy. which helps us save a lot of money oh, teddy. did you get my friend request? uh, i'll have to check. (doorbell ringing) aunt joni's here! for bundling made easy, go to geico.com. hello?

welcome back some breaking news on amazon deirdre bosa has details deirdre. >> sara, amazon added retired four-star general keith alexander to its board of directors. general alexander also served as director of the nsa from 2005 to 2014 he currently serves as co-ceo of iron net, a cybersecurity tech company he founded in 2014 this is an interesting move, guys, adding someone to the amazon board with close ties to the government it comes in the wake of losing that important and lucrative jedi cloud contract to

microsoft, that continues to protest and called in a blog post a politically corrupt contract award general alexander is the eleventh board member for amazon and will receive amazon rsus for serving. back to you. >> thank you for that. stocks closed high leaving investors wondering where the market goes from here. joining us jeff graph and mike santoli part of the conversation we had a 10% pullback for the nasdaq and a bounce today of 3%. >> it's all been pretty healthy all things considered. most people concern themselves with breadth, most of the measures we see are in good shape. there's concentration in outperformance that's completely different than breadth divergence, coming back from the 50-day, albeit swift,

see it through consolidation not price. still very, very good news in terms of how we look at the world the next six to twelve months fully engaged in the full market. >> so how do you square that bullish view you just gave us, longer-term bullish view with some of the frothy elements out there. the overbuying, the stock splits, mania as as stan said earlier earli earlier "squawk box. >> ongoing stan is wrong you have to look at the monetary cycle. 100 basis points of negative real rate. i think the fed is hoping for inflation. i think they are getting it. they are getting it in prices. i don't think you've got full participation, some areas of the markets are frothy and frankly needed that to have a comeuppance if you will. all things considered generally speaking people are still relatively tentative, data

doesn't completely support what you're seeing inequities yet that's food news, not bad news equities tend to leave economic data, exactly what they are doing here. >> jeff, you've been looking at the likely seasonality type effects. do they and should they apply this year? they clearly didn't apply in august, for example. >> it's a great question, wilf i've been doing this for 30 years. i feel like every year this time different for seasonality. i look back in december and said, you know what, it wasn't different at all i think you have to be cognizant of what the seasonal trends are. that would suggest a little more weakness through the remainder of this month. all things considered we're probably in pretty good shape for the fourth quarter to tack on not only make up what we lost but go onto new highs as far as the seasonal trends. >> mike, what sort of things will you be watching to confirm whether jeff is right and the bull trend resumes, despite the fact some people are out there saying we still have this huge

gulf between what the economy is telling us and what the market is telling us. >> i think maybe the conduit between those two things, jeff watches this two, happening in the credit market, nid stretch to think the economy is in des ept shape and you have good liquidity, that's one thing. the cyclical parts of the market geared to what the economy is doing, are they going to hold up okay or maybe if we have a further pullback in secular growth starts, weigh on those as well to me those are the indicators and whatever sentiment adjustment we have in the interim, that stuff can potentially rise to the surface as a tell. >> i think mike is absolutely right. i'm sorry. you have to watch the tech markets. we do it on sector bisector basis. across the board, energy, you expect stress, still the energy credit, don't see stress on

financial credit you usually see that in a recession. that hasn't been the case here you're in a very good spot for credit continues to get underappreciated the impact on assets >> got it. jeff degraaf thank you for joining us. still ahead peloton gearing up for earnings report following 80% run-up over the last three months what we're watching for when "closing bell" comes back. the w. ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.

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welcome back now to a closer look at the women who some say divided what might be the world's most powerful family, catherine murdoch, daughter-in-law of media mogul rupert murdoch rupert is usually associated with conservative media like fox news but cnbc.com just spoke with catherine about why she and her husband james are supporting joe biden's campaign it's a pretty juicy story. i guess some of your conversation it sounds like informed the back story of james abruptly stepping down from news

corp's board in july over editorial disagreements. tell us a little bit about this couple >> you're right. it does definitely suggest that. we spoke with catherine murdoch today. she gave insight as to why she's decided to back joe biden. her and her husband spent about 1.2 million in june to give to biden's campaign that money also went to the democratic national committee. this is all coming as james murdoch stepped down from the board of news corp it's a fascinating dilemma beyond just their contributions through different pacs and different candidates, they're also spending a ton of money through their foundation we got a list of different groups they're backing outside organizations are helping with vote by mail. they do a lot of different efforts for climate change and a variety of other hot button

issues they're spending millions in this cycle, a lot more than they spent in past years. again, i know james murdoch has backed hillary clinton in the past, but both of them have never spent this much. it's a big moment here for this kind of new political power couple we're seeing in 2020. >> we know that catherine murdoch has been a keen environmentalist for quite some time aside from those causes, are these donations universally supporting vice president biden? it seems to suggest there are some donations to both sides of the political aisle. >> you're 100% right i mean, basically they do have their own ways of giving to democrats, don't get me wrong, but many of the initiatives they have supported through their foundation are largely bipartisan there's another side of this too beyond just democrats like you suggested.

there's a group called defending democracy together, which is supported by bill crystal. he's very much anti-trump. he organizes a bunch of different projects going after the president right now. that group is also funded, at least in part, by this foundation many of these things that they're backing are bipartisan that they support both sides of the political spectrum one of the groups catherine murdoch is cochair of is called unite america. that organization gets involved with both democratic and republican primaries one of them that they got involved with a primary that involved an iowa republican congressman steve king you're right it's not just for joe biden but it's a fascinating development these two have kind of creating their own identity that's very much support from the rupert d

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looking ahead tomorrow, we're going to get results from oracle, chewy, peloton and more. peloton shares skyrocketing over the last few months, a big beneficiary of the stay-at-home trade for sure chewy also has done well as the online pet retailer. we're coming off of now what looks like the best day for stocks since june, best day for the nasdaq since april, of course, after that three-day selling streak what are you watching? >> it's a pretty decent little

bounce you have to reserve judgment on whether the smoke has cleared from what happened last week peloton is fascinating, up more than 200%. that chart we just showed had a high of 91 around the 2nd of september, down to 80, back up to 91. guarantee the numbers are going to be great. what they say down the road for whether this is an enduring franchise, they have tremendous backlog at this point. >> a pretty impressive bounce. that said, that final half an hour kind of took the gloss off it a little. >> right i do think when you've had the market moving in these wide scales for a few days, that's somewhat to be expected, that essentially traders are not really as confident holding things overnight the market was down overnight. massive rally off those lows from the night before, 3% in the s&p at some point. so i think there's a little bit

of shorter term tactical positioning that happens once you've had one of these moves. it was not exactly the close that said, okay, we're in the clear for now. >> oil was up 3% today, gold rallied over the last couple of days closing up .6% and the dollar down .2%. we're out of time on closing bell "fast money" starts now. i'm melissa lee and this is "fast money. tonight's trader line-up, guy adam meerks t adami, tim seymour, karen finerman and steve grasso. deal drama lvmh calling off its tiffany takeover disney facing big backlash for the new mulan movie. we start with