w>>e talked to paul hickey. he said watch the 50-day moving average. at last check, april sl right around $110. there, right around that level, ty so breaks below this, you're going to get more trader talk about the down trend and for the broader market. >> all right will thank you very much that will pretty much do it for "power lunch." >> "closing bell" starts right now. don't go anywhere. >> welcome and good afternoon, everyone, to "closing bell." i'm wilfred frost along with sara eisen we shrugged off the open it's been a pumpy sessiobumpy s, stocks are in the green. jerome powell saying that their committed to helping the economy as long as it takes. but also saying it's likely more fiscal support will be needed. coronavirus concerns continue to weigh on investor sentiment. the united states has surpassed 200,000 deaths and the uk prime minister boris johnson urging people to work

from home and implementing new restrictions he is speaking to the uk as we speak. and big tech stocks gaining back some ground after a rough month. amazon climbing up analysts say the selloff created an attractive entry point. sara, we have 59 minutes another volatile session amazon is nicely higher. the broader markets are slightly higher >> yeah, taking all of consumer discretionary it with. retail winners today as well coming up on today's show, despite the upturn, the nasdaq is the underperformer in the month of september so far. we're going to ask tiech investr dan niles where he is putting his money to work. even the ceo of levi will join us with a look at how consumers have spending money. and speaking of retail, we're counting down to nike earnings to day after the close, nike by the way, best performer in the dow right now. we'll get results from stitch fix, kb home and tesla's shareholder meeting and battery day. it is shaping up to be a busy

afternoon of news. 58 minutes left of trade the let's watch the big stories we're focused on this hour mike santoli tracking the market action the steve liesman tracking capitol hill, and meg terrill is watching the coronavirus cases start us off with the broader market and the surge we're seeing again from technology, communication services, consumer discretionary. faufrt thr the favorite three >> the stocks that led us up in august, down in september and now bouncing yesterday's reversal from the early lows has given pause, i think, to some of the bears to say don't get greedy and the bulls have glimmers of hope this correction is it pretty far along. so for a look at the s&p 500, i will say put it into context we finished 3319 on friday of it's an indecisive rally even though it's taking some of the pressure off also, you know i focus on that

august 11 level and the 3330s. it's a no-man's land right here. the shorter term trends that people are looking for certainly better than the reverse. a narrow rally i think we'll talk about that later. take a look at the positioning in the large nasdaq stocks the this has been a big talker lately which is basically a pretty large and new speculative short position in nasdaq 100 futures. obviously, you see speculators are generally long futures the they've benting on higher prices in the nasdaq 100 for some time now. look at how long they stayed in negative territory there is no direct one to one automatic now it flips to a bullish story up here when you have to give back a lot of the gains. similar story in flows into and out of the nasdaq 100 etf. this is a 65-day rolling sum of

flows. you see it's down to a low level. you rarely reached in recent years. however, just look how much flow in there in the months prior there is a payback period going on i wouldn't want to say we finally got people capitulating out of tech. therefore, you have to buy today, as of friday, just in the last day yesterday, massive inflow it seems like there is a lot of things around dealer positioning and all rest it's not purely the public taking flight away from nasdaq stocks guys >> do you have this narrative here, mike, where the european cases are rising they're tl are discussions about returning to lockdowns oesh nr going out as much. zoom up is 5% today. a lot of the stay at home winners. docusign up is it's not just amazon and microsoft and apple. the banks are the worst

performers that does jive with the narrative that maybe we'll have a second wave in the u.s. and what are we in for in termsst growth and habits and the economy. >> to a degree it does it certainly fits with that story line i don't know if it's the market asserting in a real confident way that's where we're head order if it's just hey, they were beaten down awe ton the nasdaq is down 13% from the high in a few weeks. maybe that is where, you know, kind of the better buy points r i do agree with you. right now it is a little bit of a mixed picture. even though industrials are doing fine, cyclical stocks held up okay. it's not necessarily the market telling you we are in a head long reopening and the recovery is accelerating, that's for sure >> mike, the other point as well which we'll dive into later. you have a strong dollar today and weak british pound european markets are more stable today. that may prove to be that this news is building over the last week we had a pullback yesterday. the news had actually crosses and the boris johnson makes the speech, et cetera. it is priced in for europe at least. that may be a sign that there is

less pullback still to come on the u.s. on that news. >> for sure. and we also have to keep in mind that markets have not traded tick for tick along with case counts the way it was back in the spring and early summer. i do think there is a little disconnect out there simply because people are rationalizing we know how to analyze these things so i don't think that we're necessarily looking to the markets for a very clear forecast on the path of the virus. >> i'll tell what you, i'm glad i'm not in the uk at the moment. i'd break the rules. they seem unbelievably confusing. we'll discuss that later let's turn to washington now fed chair powell and treasury secretary mnuchin testified earlier. steve liesman has the highlights hi, steve. >> good afternoon. both treasury secretary steve mnuchin and the fed chair jay powell agreed the economy is improving and additional help is still needed powell explained the economic reasons why congress should pass

another stimulus bill. >> it's going to take a while to get 11 million people back to work spending will decline, ability to stay in homes will decline. so the economy will begin to feel the negative effects at some time. at the same time the economy is recovering >> now a bill has been stuck because of political battles over how big it should be and who should be helped he explained his thoughts on who needs assistance >> the next package should be much more targeted it should be focused on kids and jobs and areas of the economy. that are still hard hit, particularly areas such as the travel business and others, restaurants. i think is broad bipartisan support for extending the ppp to businesses that have had revenue drops. >> now with hundreds of billions of dollars unallocated shts they

were forced to defend how they are funding the program, the mainstream living facility emerges as a major point of contention the living facility for mid sized businesses has $2 billion in loans so far approved or in the pipeline >> steve, one thing that jumps out from the clips is if masks are important for the future of the economy, the two people in charge of the economy aren't brilliant at keeping the masks on even though they're behind a screen i get that which is so important for the market as we lesarned over the last week. any further indication from chair powell how he is thinking about supporting the policy with the confusion that's came out of last week's press conference >> not a lot there wasn't asked very much about it. he seemed to get some support about the fed's new average inflation targeting from legislators. but not a lot of talking and kno nothing really illicited i think the fed is biding its time on the issue, waiting to

see what congress does and holding back if it can on a formal qe program until such time as it's clear a, that congress is not stepping forward and, b, the economy is suffering from the lack of it. >> steve liesman, thank you. now to the coronavirus the united states officially passing another sobering mark hitting 200,000 confirmed covid-19 deaths today. meg taking a look at the latest numbers. and what we're in for here heading into the fall. >> yeah, sara. st that horrible milestone being met as cases appear to be ticking up again in the united states if you take a look at the numbers, we've gone through essentially two waves across the united states. that graph on the left is daily new cases. you can see about a week and a half ago it started ticking up again. so we are potentially starting to rise. hospitalizations and deaths still coming down. now where are we seeing the

upticks? 13 states are seeing more than 25% growth in new daily cases week over week primarily in the middle of the country. states like wisconsin, minnesota, utah, you're seeing hit these new daily highs. and in terms of what this means for new restrictions, potential lockdowns, dr. fauci saying on cnn it really needs to be a local regional response based on what is happening in different communities. but he said as we're getting closer to the cold months, we all need to be implementing mask wearing, social distancing, all of these thigh jehygiene thingse talking about. here's how he said why that is so important >> we've got to be in this together when you have weak links in the chain and some components of society are not doing it, it just makes it very difficult for the rest so if we want to enter the fall and winter at a really low level, we've got to start acting now to do the things that we have all been saying

>> and, guys, he's saying it's really important to do it now. it's going to get a lot harder to bring case numbers down once we get into the cold months. >> meg, here's the optimistic case we're in a lot different shape and we've learned a lot since the first time this virus really flared in places like new york from techniques in the icu to treatments and there are -- we have tools, right? remdesivir, we have the steroid treatments that have been proven to be effective. we're still waiting on the antibodies and working fast on the vaccine. i would say the other hopeful thing is that elderly population has gotten the message and are staying indoors and are quarantining from what we can see in the numbers i'm just wondering what the doctors and the experts you're talking to are saying about just how much better prepared we are this time around >> certainly we're in much better position than we were back in march. we have the tools that you outlined we hopefully will have new tools

and antibody drugs coming onboard, vaccines starting in the late fall potentially early next year starting to roll that out. the problem, is you know, we're having more than 700 deaths per day in the country so even as things have gotten better, people are still dying from this disease in large numbers. and as much as the elderly population is being protected, they're not completely sealed off in a bubble. so even as young people in colleges are getting infected at higher rates and have better outcomes generally, the argument is we can't keep everybody completely separate and that's why we need to be doing better as a whole >> meg, thank you. after the break, nasdaq is still down sharply for month of september. just a handful of trading days left in the month. we'll talk to the tech investor dan niles about the pullback group we've seen and whether he is seeing buying opportunities there. you're watching "closing bell" on cnbc. ♪

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morgue an stanley warning the tech selloff is not over saying the nasdaq 100 could fall 14% to test the 200 day moving average. for more, let's bring in dan niles from alpha one capital partners great to see you as always thanks for joining us. >> my pleasure >> so that's one view that morgue an stanley view the other view is that we're bouncing back some of the key names in particular like apple and also amazon. does that make you think that the tech pullback is over? >> i think you're really tough junk tour in themarket

so you expect some kind of bounce off of that but, you know, to morgue an stanley's point, valuations are at record levels which is why you can't pick a floor is very, very hard. that's why when i've been on the interviews with you before, i'm like you have to be nimble and create around your positions and we put out a tweet on i think september 9th or so or 8th saying we cover over half our short positions. we're still sitting on 30% cash. since then, we covered more of our short positions. you've got all the conflicting forces where we might not get a phase five stimulus package. that's bad the if we do, that will be really positive. i think you have to be very flexible at this point with morgan >> i guess it's a difficult question to answer do you expect the stimulus bill to get over the line and what would that mean to the market, 5% jump, 20% jump?

>> as i said on your show before, i thought it would take the market going down hard to force the politicians to act like grown-ups and come together for something good in the country. i felt like we were almost there. now with the supreme court fight on, i think you're back to both sides not wanting to compromise. but if we do get something, you know this market is driven by stimulus the whole way up. and we've seen what that has done the market is up year to date even with this drop which is uncredible given we're still in the middle of this pandemic trying to get through it i think it could be good for easily 5% to 10% move on the upside potentially if we get it, but, you know, remember the fed is backing off of their balance sheet expansion. that expanded to $7.2 trillion in the middle of june. it's down $150 billion since

then we mentioned on the program before you've had that, you know, the markets really struggled in 2011, '15 and '18 that's why we're trying to be very nimble, i guess is the best way to put it right now. moving into some lower volatility names on the long side >> there is always sensitivity to the balance sheet direction dan, we're talking about the rising case numbers in europe. this is a second wave. this is the short side and we're still negative on those. this is share of bathroom situations and i think we have

already seen that university of north carolina for a week shutting down again. and you always going through the flu season, which you know, is always problematic so i think you have to just assume that as much as we're all house bound and i got fires here in california so the air quality kept us indoors for a fair bit of time. you know this is creating a tough spot where i think the information around the virus to your point gets worse in terms of infections, deaths, just because we're going into the colder months. and schools are opening up so you don't want to get out over your skis, i think, in ermz of it thinking severing just going to be great because we might have a vaccine on november 1st. we have flu vaccines already people still die from the flu every year >> dan, you mentioned your four sectors and said the banks associated with them the banks suffering again today. do you think they're too cheap or legitimately cheap given as you said the association with

some of the struggling sectors >> i don't -- here's the thing i think if you have people go on to my website and people go there danniles.com, i think we have charts up on this from earlier posts. if you look at europe where, you know, german ten year yields are negative 0.5% or japan where yields are at zero, the bank stocks are actually down relative to when nieman picked you can't make money when rates are at zero or negative. that's what the banks are fighting with. and then on top of it, they're exposed to a lot of the sectors that still have a lot of issues. so that's why for me i view the banks right now as a value trap until either of the yield curve improves and steepens or we really get through this vaccine. until then, i think you just stay away from them and we're more positioned on the short side around a lot of leaks associated with those sectors which throw in the financial services category more broadly thast is related to those malls,

et cetera, or office properties or apartments, et cetera, where you got a lot of pressure going on right now the cheap stuff i look at is viacom, wow, their internet business is growing at 50% that's accelerating and if i put a netflix multiple on, i can go on half the rate i'm getting the rest of the 6 bouillon in revenues for free. or comcast, that's another name we have. and both of the names have dividend yields bigger than the s&p 500 and multiples way below. that's where i'm looking for cheapness versus the banks which structurally you have big issues weighing on them >> dan niles, always a pleasure. thank you for joining us. >> thank you. >> we have under 40 minutes left of the session positive session across the board. the s&p 500 is up 0.8% nasdaq leads the charge up 1.3%. still ahead, the ceo of levi's

joins us with an on the ground look at the state of retail and the consumer and country as lawmakers show no signs of an agreement on more stimulus and up next, twwe'll take a closer look at tesla as they gear up for the highly anticipated battery day. "closing bell" back in a couple minutes.

36 minutes left of trade let's check in on individual market movers right now. carvana surging after giving an upbeat outlook gross profit per unit and retail units sold for the quarter goldman sachs giving a bullish outlook on carvana updating that stock to buy elon musk tweeting that new products being unveiled today will "not reach serious high

volume production until 2022." that stock is a bit lower today. but 5.6% actually it's a big move for a lot of stocks but for tesla given how strong it's run up lately, hundreds and hundreds of percent and a lot was on anticipation around battery day or maybe it was, it's actually not that big of a move let's see what he announces. >> it's already around 420 which was famous number in the past. so of that also highlights the extraordinary highlight after splitting. time for a update with sue herrera. >> hello here's what's happening at this hour in louisville, kentucky, store windows are boarded up and concrete barriers blocking traffic as they await a decision in the brie onna taylor police shooting case and whether the officers involved will be charged in her death vanessa bryant, widow of basketball star kobe bryant has

sued the los angeles county sheriffs over unauthorized photos taken by officers of the helicopter crash which killed her husband and her daughter and seven others belmont stakes winner tis the law will not run in next month's preakness. spoiling what would have been a highly anticipated rematch tw kentucky derby winner authentic. and from romania, a streaming service, look at that little guy, for animal lovers. bear flicks offers episodes presenting the daily life of little bear cubs in exchange for donations that help pay for their upkeep and training and to be released basically back in the wild cute alert that's some teeth. that's your news update this hour back to you. >> i can see why they're doing that i could watch that for a while >> i know. it's very soothing you got it >> sue herrera up next, tiktok in limbo the we're going to discuss what

comes now in the oracle negotiations and how tech cold war with china could impact u.s. companies with former u.s. technology chief officer aneesh chopra quick check on bonds for you incomparable design

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shaures of oracle rl moving lower today. china's global times called the deal terms unfair and accused washington of bullying and hooligan logic iac chairman barry diller and carl bass both weighing in on the deal on "squawk box" earlier today. it morphed into this kind of ludicrous kind of match game match between tossing ownership here or control there, et cetera, et cetera. it's just -- it's original aims are out the window and in has just come in a whole political mismatch >> my perspective, larry ellison

is one of the most patriot uk ceos in america. the fashct that oracle will control, if it works this way, if oracle controls data storage and prevent data from going to china and oracle can also control the algorithm that may influence the youth of america, then all -- more power to larry ellison and oracle and walmart my first question does all of this actually solve the initial issue based on the deal as you understand it? there are still details to be worked out there is obviously a public discussion about how ownership

matters. there is a more fundamental question who is going to oversee how this act behaves? if you and i have kids using this app, will our photos on our phone and other services and gps on our phone be a big source of information into the hands of the chinese military or not? so i think the details in the arrangement are still tbd that is how the app behaves in a manner that protects the american security. >> well, there is absolutely concern about information that's collected today in our app environment can be misused in this case by a foreign government and somebody is going to have to step up in order to put rules of

the road the i would prefer we had a clear line of sight on privacy poll policy in this country whether it's a government security misuse, i want to make sure when i download an app on my phone it behaves in context for the app's use, entertainment for the kids and not finding all the sources of dwrat on my phone, pulling it out and giving it to somebody else if you were to say to me, is this an important thing? sure a pla i applaud the process for putting it in place, a process to sort of get to a negotiated settlement whether that involves ownership or oversight over the app, but really it's minor step in the much larger problem we need rules of the road for internet applications and mobile phone application that's are accessing sensitive data on our phones today without a lot of oversight. >> i think it's a major step at

least when it comes to concerns about china and specifically chinese technology being used by american citizens and having chinese data so in answer to the first part is i understand the deal oracle has all the data from the users on the cloud oracle has access to the source code to be able to filter what americans are seeing which gets at the security concerns doesn't that represent a huge precedent here when it comes to any other chinese apps whether we know about them or not? operating in the u.s.? so let's be careful about the solution to the problem. so fundamentally, we have a u.s. apps to day tap into the user data all over the world. we have every country around the world feeling as if they can make their own judgement about how and in what manner data can reside

that's not a great precedent but if we have some clear understanding about what the operating rules are on how you collect data and what you use it for. then we have a basis by which we can judge whether a chinese app or another app is behaving appropriately. now as it relates to security versus general commercial concern, it is u.s. versus china. this is a much larger chess board. th this is one move on the chess board. we have many more moves to go. a whole range of issues that are about these two global superpowers coming together in a digital era and competing vigorously if you ask the question as an app, are we protecting the american people and are we doing something with respect to china and the u.s. i think we've done potentially more to set the foundation for privacy policy and we still have a long way to go when it comes to china, u.s. competitive policy

if anything, there is a response back >> aneesh chopra, thank you for joining us >> thank you for having me st. >> we have 25 minutes left of the session. we hit a new high moments ago. up 158 points on the dow the low of the session was down 158 points with currently top 130. so near the session highs. more than that for the other two. after the break, our parent company comcast in the news. we'll talk to a top analyst and michael's parent company comcast. she wanted a roommate to help with the cooking.

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comcast is moving higher today on a .4% stake in our parent company the firm making the move on the belief that comcast's shares are undervalued according to my sources. for more, let's bring in craig moffet he covers the company. he likes the stock p has a buy. craig, some may wonder, you know, the stock trading at a record high. the brian roberts, chairman, ceo, is lauded for his leadership is it really undervalues do you agree with him? >> well, yeah. i do think it is undervalued

come cast shares have done very well relative to the s&p 500 over especially last ten years the i think they were up six times. the problem is they are up so much less than comps and charter over the same period, for example, is up 16 times. it is poor performance relative to the quality of the business that is a rich debate. you can imagine certainly that comcast shares would be a lot higher had they not made the investment in particularly in sky, they made now about a year and a half ago that they paid in retrospect much too much for

>> i think the home run if you're a shareholder would be that try and get them to break the company into pieces. which, you know, may not be that much much to ask at the end of the day, even if it's just into two pieces if there is one piece for cable and then a separate piece for this sky business plus nbcu. it's not like that is giving up anything of any real value you would almost certainly get a higher valuation if you saw them separated. so i think that's what a lot of shareholders would like to see i don't know exactly what they're asking for it could be that they want to see more share repurchases or they want to shine the light on the fact that comcast is an undervalued stock. >> one can only imagine as well, craig, the multiple that cnbc would get as a stand alone company as well. we're talking tesla. >> astronomical. >> but, craig, being serious, do you think that the controlling

voters brian roberts and family want to do this? they recently made acquisitions that don't seem like they would be open to break things up >> break things up doesn't necessarily mean breaking up and selling. it just means having two separate stocks instead of one and, again, that may not serve asking them to give you the sleeves from their vest. it doesn't ask them to do anything brad roberts would still presumably have the controlling interests in both companies. but you're right, you can't force brian roberts or comcast to do much of anything and they have 70 basis points of ownership at what has been disclosed. this is not enough to force anything and the roberts family has a 33% vote and then some common shares

on top of that it's not a surprise they're doing this with constructive thoughts i don't think anybody would argue with trying to see the stock price go higher. >> what about the idea that some of what is dragging on the valuation of this stock lately is cramer ma i had this point earlier, somewhat short term in nature the near term headwinds with covid-19, for instance, being exposed to theme parks >> there is no question about it it is both theme parks and movie studio and it's bars and restaurants. it it's sky. there is no question that they have struggled with the covid-19 crisis and have found themselves in business that's are very much exposed. on the other hand, even over a very long period, ten years,

say, the capital allocation questions are still there. they paid an enormous price for sky. we did an analysis early this summer for our clients that suggests that they paid 16 times for sky. much it's probably worth six i'm not saying that sky is the same business as directv it was striking to us that the value destruction in that transaction is probably about the same as the value destruction in the directv transaction which some people would say is one of the worst trans acti transactions in american history. that speaks to how much they overpaid for that asset. so there are legitimate questions. that go beyond just the covid-19 exposure of these businesses >> craig, thank you for the analysis and for weighing in

comcast is a winner today. >> thank you >> we have an alert on moderna hi, meg. >> this news coming from "the washington post" reporting that the fda is expected to issue guidance this week on what it will take to get emergency use authorization for vaccine. the post reporting that this will be stringent enough that it is unlikely the vaccines will get authorization before the election astrazeneca and pfizer also started phase three trials not moving quite so much now some interesting details in this "washington post" story saying that the fda is expected to ask manufacturers for at least two months of safety followup that would make it difficult, you know, after getting the second shot. and the pfizer moderna trials, the shots are three or four weeks apart. it is difficult to get the dwrat

before november. it is not likely until december. so the citing the concerns around the politicalization and pressure being put on the fda in this vaccine race and the numerous times the president has tied the potential availability of a vaccine to election day guys >> meg, fascinating. thank you very much for bringing us that. no doubt more discussion to on that topic later in the show after the break, we're going into the market zone with just 14 minutes left of the trading day. we're right it he session highs. the dow is up 172 points the nasdaq is upea nrly 2% we're back in a couple minutes ♪

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market the s&p 500 and nasdaq are higher for the first time in five sessions. the dow is on track to avoid the longest losing streak since february the dow up is .6%. nice intraday recovery particularly in the afternoon. for sure you know, the market is making a little bit of a case that he made yesterday this is to the down side to open the week might be consequential you have the nasdaq 100 up 5% from the intraday low. s&p 500 close to 3% higher the level i was talking about at the top of the hour there for the s&p 500 is now just been touched recently that's where we closed on friday this is the way that corrections try and create some kind of a base i think nothing had happened in the last few weeks to go against the idea this is a relatively routine pullback when you got

stretched to the upside and there is not necessarily a lot else going on besides the market did need to put a slight scale through the summer >> jim you say the market is likely seeing the highs for the year. that doesn't mean there isn't still opportunity. so where is that opportunity right now? >> that's the end of selling front of us. we have issues in an election year, the market bottoms out in late october. this say highly uncertain election year. so what do i think we need to do i think we have to start thinking three dimensionally as investors. we have been running on these themes it's either the stay at home theme or the economic recovery theme. what we're seeing is the economic recovery is starting to diverge and today are much better than the financials, for

example. and what we're also seeing is they ran away from themselves. i agree with what mike was saying there so what does that sneen i think with very to be more selective and we have to be more narrow about active management. we're eernl all in or all out asset allocation decisions and we still haven't solved a lot of issues. we don't have a fiscal deal as jerome powell said today and some of the warning signs are starting to flash in the commercial cnbc market and some of the lending standard mashlrk. i think we'll be okay. this is not a market where everybody needs to be all out or all in we have to hit the highs for the year there are areas can you play and make money i think any more selloffs will be rather contained given where consider rates are >> if we do get a stimulus bill, what is the market reaction?

i think the market is already today saying they think we're going to get a stimulus deal if we get a stimulus deal, it will depend on what it looks like i mean, look at the fed's deal a lot of that money is not even being used yet what are we going to do about foreclosures and evictions we don't have answers to those things yet and restaurants are permanently closing across the country now we're seeing a lot of delinquents. so we need to -- we need some answers out of the fiscal deal not just a fiscal deal that makes the politicians feel good about themselves so initially i think to answer your question, i think we get a rally. and then the devil will be in the details. let's not forget talking about the theme issues with, very two possible outcomes for a presidency the third is we don't get an outcome until january and in a contested election, that will be an issue for the market as wm. >> we'll get to the stocks here in a moment. i want to highlight social media

stocks staging a big rally and now we go to julia with the details. hi, julia. >> hi sara that's right, social media stocks rallying today. snap shares rup over 6.5%. pinterest shares up #.6% there is no specific news driving this move today. the stocks appear to be benefitting from uncertainty around a tiktok deal with conflicting commentary coming out of china and the u.s. government but what it will take to prove a final deal that is pushing them into positive this month. faang stocks are in the red for the movement i want to point out here that facebook shares are up about 2% >> julia, thanks so much microsoft announcing new services to take on some of the highest. josh lipton has that story

>> so, wilf, the communication services, that's what microsoft is calling it the new tools allowing developers to add calling and texting features to their apps like voice and video calls chat and text messages cape acts similar to what they offer, da davidson, he says this new highlights have big and attractive and there doesn't have to be one winner. a significant and important player too 250% since the march lows. back to you all. >> josh lipton, thank you. a pair of retail companies with announcementes to day. ralph lauren is cutting 15% of the workforce. and mall owner brookfield properties planning to lay off 20% of the workforce from the retail division. the company citing slowing

demand, store closures, and reduced mall traffic brookfield said they tried to keep all the team employees as long as possible the announced cuts are needed to align with the future scale of the company's portfolio. mike, which is, you know, the depressing fact of the permanent nature of the pandemic impact on the economy. and also highlights the gap that we keep talking about between the market and the economy ralph lauren stock is up 5% right now. >> yeah. >> on the fact that it is cutting jobs, restructuring and adjusting to the new reality. >> yeah. there is no doubt about it a component of the strength and stock market over the last six months has not just been the fed, not just the fact that we're going to p snap back from a huge decline in gdp. but it is also that there is a stealth kind of productivity story happening as well. which is companies being opportunistic or necessity getting leaner that is not always a good thing for the broader economy, especially when you already have

high unemployment. but it is part of the wear and tear of this period that we're in right now i would say, you know, if i go back and remember the 90s, it was a constant of older, mature companies forever trimming staff and going through restructure. a big criticism at the time. i'm not saying we're back into that mode. of its not unusual to have a market excited about future growth at the same time you have older companies that are trying to get thinner >> jim, where do you stand on retailers like this? >> i think there is a bifurcation in this economy. i don't think it's all bad there are certain parts of the economy like manufacturing that are doing much better than expected and actually retail sales are doing much better than expected. it's just that a big kpoen component of that is online. investors are going to have to start thinking more three dimensionally. they don't need to rush out and buy an etf because they think rethey'll is going to be good or bad. the retailers that have very strong brands are still doing

very well. all you have to do is look at what stocks are doing better it's very bifurcated [ inaudible and in the market is running ahead of the kmechlt teconomy b reality is companies are doing very, very well. >> all right we've got just about two minutes left to go here in the session mike, what are you seeing in market internals today with the s&p 500 up 1%? >> sara, nothing oppressive. thaur 50/50 up versus down and more stocks down on the nasdaq a whole lot less on the nasdaq the top five stocks are worth 40% of the nasdaq. you look at new highs versus new lows, you actually have more new 52-week lows on the nasdaq than new highs. both relatively small numbers. note worthy you have a little bit of an undertow of weakness even as the nasdaq rallies

one of the clues yesterday being a decent buy is the vix was not up as much as the market was down you are leasing some of that premium. we have a 34% decline in this market a few months ago. that is not going to be shaken off immediately. >> just under one minute left of the session. we're up 1% on the s&p 500 .5% on the dow and 1.7% on the nasdaq the dow higher up 180 points currently up 143 points as we stand. st you got a little gain in oil up 0.6%. a little softness in gold. the dollar higher again. continuing its recent march higher particularly weakness in the euro and the pound as virus cases spike there. dlart up by 0.3% sector performance on the s&p 500, that sector is up 3%. that is largely because amazon

is up 6% today communication services is up 2%. the likes of comcast, facebook, both up healthy 3% or around there. real estate and technology complete the sectors up more than 1%. the bottom is financials the bank index is down 6% for the week so far. at the close, sar yashgs ta, th up 1%. >> and that's first positive day for the s&p 500 in five. welcome back, everyone f you're just joining us, i'm sara eisen along with wilfred frost and mike santoli we're up we finished higher well off session lows. we were down more than 150 points as can you see earlier in the session. earnings should come in 15 minutes for nike

the s&p 500 is up 1% real estate though and industrials, staples and materials all ended the day higher financials the worst performer the nasdaq up 1.7% by far the outperformer the biggest contributor is amazon you saw strength in microsoft and a lot of the social media names. the russell 2000 index is up .8% also, with the positive day. investors are turning attention to a trio of big earnings this hour nike, k.b. home and stitch fix, they're set to report in a few minutes. we'll break down the numbers as soon as they hit the wires plus we'll ask the ceo of levi what will nap there is not stimulus check let's talk about the market today. jim lacamp is still us with. robert nobles joins the conversation first to you, mike santoli amiddle conversation and worry

around the second wave and some closures in europe and just what it might mean for the u.s., stay at home stocks did well. we saw a nice rally across the board. >> markets reacting to itself in a lot of ways in the last few weeks. nasdaq 100 was down 14% from a hichlt s&p 500 down 10% from a high seemed like enough for now we're now bouncing the s&p 500 picked up not quite what was last yesterday. try to keep it in context. we're still just bouncing off the recent lows. it seemed like you have just a little oversold in some measures and seems like there is room for a little rebound before you even have to have these sort of make or break moments so this is that ind koof in between period where it's tough to feel like you have an edge in terms chf way the next two or three goes but still part of the process of getting through slowly perhaps a correction period and, yes, you have to grant the weak seasonal patterns and all the rest of it but so far the market has

roughly held together because there hasn't been a lot of macropieces falling by the way side. >> is this the start of a significant bounce or had to see major progress for the market before the election? >> thank you for having me on. we think this will for the next couple months or probably range bound, there are a lot of decisions being held up by the election and, you know, the volatility has recently increased because of uncertainty over events that have come into focus like the presidential election even the economy and also the selection of the supreme court justice we just think you just need to be patient and allow things to play out this is something that happens on a regular basis whenever we have a major election. you know, as you look at it, there are debate performance for vice president biden, but there

continue to be high expectations for the recovery of the economy. investors will will judge one or both of those events when they happen next week and likely lose some confidence. and probably will see the continued volatility that we have in the market clearly the market is anticipating a delayed election outcome. and somewhat starting to believe there could be a delayed economic recovery. we think there will be limited legislation passed because of the division in washington we know that more stimulus will probably come after the election it's needed. >> so roesht, given that backdrop that you just presented, where do you want to be in this kind of environment where you're expecting all that election uncertainty and volatility and eventual stimulus what kind of stocks? >> right

we will remain with the large growth stocks. we would remain with an overweight position in that area social the area of technology, health care and retail we compliment that with value names that have a catalyst and can provide sustainable income the income will be attractive in this time frame. and also you get a chance to participate in the broadening economic recovery. so we remain positive and optimistic on stocks with the tilt toward growth stocks at this time. >> how surprised should we be by the 6% in two days decline by the banks? has that now kind of par for the course whenever we get bad potential headlines on the macrodata? >> magnitude is surprising they have not had a lot of the real participation in sustained rallies. it's up 25% from the march lows.

they're still down 40% from the own highs. so it's obviously just ham strung by a lot of factors it is various parts of the aggregate national balance sheet are coming back to banks they're loaded with departments right now. they're buying treasuries. there is not a lot of loan growth it's a tough spot to be in even if it's not in a kind of vulnerability and, you know, in this way it is more about where is the earnings leverage in the pickup in the economy >> mike, did you pick up anything from powell or mnuchin today? a lot of discussion on getting capital and low and mid sized businesses does it change the stimulus that is coming from either monetary or fiscal authorities? >> it is around the edges. i think statements of intention, trying to streamline the process

or make the programs a little easier to use. they won't move the estimates around too much. it's also worth listening to chair powell when he says, look, there isn't a lot of demand from the smaller end of things. and i think that's why both have been saying, you know, fiscal is to get money as opposed to lending against something. that tends to be more effective in these situations. >> there are two live events this hour. one from airlines and one from tesla. >> let's start with the airline industry let me shoi you a live picture from just outside the capital in washington, d.c. this is where airline leaders, union leaders, ceos of the major airlines, they are once again making a plea for washington to come to their aid because you've got airlines payroll cuts. that's when the payroll protection aid runs out.

they're asking for another $25 billion. today the airline stocks, they move slightly higher it's been like this the last couple weeks hooi high and low. they were up slightly. remember, 30,000 to 50,000 airline workers are scheduled to be furloughed starting october 1st. passenger leaves are down 65 p to 75% one specific airline note, jetblue, customer traffic improving. they said the q-3 daily cash burn will be between 7 and $9 million. that's the expectation you have battery day in an hour and a half within a half hour, we'll have the tesla annual meeting this is when elon musk is answering questions. first at the annual meeting and then during the battery day. that is really the meat of matter this afternoon. they're going to be focused on showing they will be lowering the battery cost more. tesla is currently the leader in

terms of having the lowest battery cost relative to those who use the pouch pack or the cell pack. we'll be monitoring it when it starts at 5:30 >> are the batteries exclusive to tesla do they outsource and sell to anyone might they do that in the future could that be a great source -- >> they do not sell their battery packs to other automakers but that's the question many people are wondering about as they start to in the future make more of their own battery cells, will they say, look, we're going to open our patents and work with other automakers. they believe that driving more companies into the electric vehicle space will help the business these are all the question about battery day which starts in an hour and a half. >> anticipation for. that phil, thank you >> jim, when you have a client

come you to asking what to do with tesla, what do you tell them >> i i tell them to avoid stocks that are very news driven unless you do a tremendous amount of research on there. most stocks that are this volatile are not that comfortable for retail investors. that being said, obviously, it's been a good stock. it's been a good performer the other thing, sarah, when i see a stock that is very extended, it doesn't matter what stock it is. i always say wait for a stock to consolidate or go through major correction if it is a power stock that is done extremely well if you waited and were patient, you see a selloff. a little bit of a correction it doesn't mean that it's the end of it. it means you at least have removed some profit takers i would use fundamental and

technical research beyond that, be careful. you have to be willing to accept a lot of volatility in something that is so news driven and cyclical i might add >> let's hit stitch fix. earnings just out. kate rooney has the numbers. >> hi, sara. stitch fix out q-4 earnings mixed picture here beat on the top line revenue came in at $443 million. increased of 11% year over year on an adjusted basis way better than estimates. earnings though, the dcommittee reporting a loss of 44 cents that is way more than analysts were expect. they were looking for 16 cents active clients grew 9% year over year to 3.5 million. executives mentioning momentum and direct -- direct buy offering also mentioning covid-19, of course, saying they navigated for some of those impacts. the subscription service

approach is being tested here. they look to cut spending on the discretionary items. the shares here are getting -- were getting a pop after hours they look to be down now shares are up about 20% year to date back to you. >> kate rooney, thank you. down about 3% here big earnings miss, mike. what do you make of the stock? it's well off the highs. but actually has performed pretty well. >> it certainly got swept up to some degree in the stay at home trade. people don't need as many clothes. i don't know if necessarily people are fully onboard with the idea that this as a stand alone is going to be a really magical business model in terms of profitability but it is absolutely proving that they can still win more customers and they think as long as this is down that direction, people think this is certainly a way to go. it's very tough to get a fix on financially ultimately when this business reaches a certain maturity what the earnings power is

>> that's now sliding, stitch fix, about 9%. robert, back to some of the broader market themes we were discussing earlier do you think inflation risks are underpriced and that could hept banks going into next year >> inflation is not going to be an issue with high level of unemployment at this time anticipate excess capacity the banks are likely to benefit. we listen to a conference that just recently concluded with the bank's presented and they have another stress test ahead of them but afterwards, there is a good chance and we feel that financials are undervalued there is a good chance that the banks will be able to increase dividends and possibly buy back stock before the end of the year the fed is on the sidelines for four years could be less. we would look for the long end to increase and the financial tobz able to earn a little bit more on the spread

so we're favorable on financials >> what about you, jim do you want to be in this sector >> i would rather be in the relative strength sectors and if you look into value side of things, there are a lot of areas that have better relative strengths. i agree the long end could go up especially if we get a big stimulus package out of washington and that would be beneficial to the banks. but look at how the banks are performing versus the industrials and the materials. historically, when you get to negative real interest rates which we, have the materials and chemical stocks and industrials start to do a lot better and so these are areas that i'm watching they start exhibiting some relative strength, yes but right now i'd rather use a barbell approach with some technology stocks that have held in better and with some recovery stocks but focusing in on those recovery stocks that are exhibiting strength now and again i would say look at the industrials. then come around to the

financials when you start to see white of their eyes on recovery in the sector from a technical perspective. >> thank you very much its true thank you very much. good to see you both >> nike earnings are due out any moment it was the best performing stock in the dow today adding 22 points to the average. we'll break downhe nbe tumrs as soon as they are released. the we're back in just 90 seconds on "closing bell." that's what my dad does.

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welcome back to "closing bell." nike earnings are just out and a big beat very big beat on the bottom line 95 cents per share the analyst estimate was 47 cents per share. a beat on sales as well for nike coming out with sales of $10.5 billion. the expectation was $9.14 billion. can you see the reaction in the stock. up 8% coming off a record high when it has outperformed over the last few months. the company returned to growth in key markets the uk, germany and a number of other, south korea, japan saw growth there remember, this is a global company that was severely affected by the lockdown last quarter nike reported 38

hers sales decline they are having sales decline of 1% well better positioned than a number of other retailers out there thanks to the global exposure and the power of the brand and innovation that's kept this stock working and this company performing i'll dig through and get you more as we get through it we'll bring in a number of analysts lyn dunn is with us. sam poser from perfect susquehanna. both are regulars for covering nike give us your initial take. looks like a very, very strong performance from nike. >> it really appears as if it the direct to consumer about is which appears to be up 82% or digital is up 82% in the quarter drove the boat on this one it yale is exceptionally strong which means, you know, the back half or the sort of back

two-thirds of the year should look -- the back of the year should look pretty good, far better than what we anticipated as well as other analysts. >> digital sales is more than they increased last quarter during the shutdown. they increased 80% then the fact that they continue to pick up at that speed. it's, what, 30% of overall nike sales at this point. what are they doing there that is working >> i think it's been a recent goal they used this opportunity, this crisis to really lean into the consumer direct so they advanced their goals. they got their faster to that 30% level and next up is 50% they want 50% of their business to be coming from, you know, digital. i think that is tremendous it's really over the long term

going to serve them quite well to have more direct communication with customers and, you know, what are they doing? they've got apps, they have the sneaker app. they have fitness apps they're really connecting with consumers on things that resonate with them particularly during this time people are looking to do more solo fitness and casualize the wardrobe and nike is winning on all of those fronts. >> to sara's point, the global exposure clearly helping a great deal north america down slightly compared to what i imagine lots of retailers will be down only 2% but china standing out clear gains there and bouncing back strongly. >> yes that shows how much they learn early in the prices as well as to liz's point how well they're communicating directly with their consumers. they unfortunately didn't give us any guidance in the press release. we'll learn a lot.

and, you know, clearly the focus is on direct and all the data that they have at their disposal and the data as they tun to develop is working very well for them >> i'm glad you brought up north america. the analyst expectations and the street expectations for north america were down double digits. the fact it was only down 2% or so, what is working in north america? is it the relationship with footlocker or is it the direct to consumer? >> it's with the wholesale customers like foot locker, i mean, sam has written some good stuff about how they have been calling the heard. they've been get ago way from some of the less productive, less strategic wholesale partners and investing in those that matter, foot locker being one. the other side is forming a more

direct relationship with the consumer it's impressive they've been able to really focus as well as lean into this consume dreshr dt strategy and hitting the covid-19 crisis manual, you know, cutting back staff cutting back orders and also using it as an opportunity to advance strategy. >> liz and sam, thank you for joining us >> sorry, sara go for it. >> no, just going to say, wilfred, hard to pick too many holes in this report most everything came out better than expected. margins were a little lower because of covid-19 costs and some supply chain related costs. but overall, sgna down 11% that's where part of where the big beat came from on earnings and also revenues coming in better than expected if you think about a company like nike with not a lot of sports going on and not a lot of events going on, the costs come

down they spend a ton for some of the these kind of events there is far fewer sports on television with the innovations around the shoes and clothes >> hard to fault the numbers the stock responding up 7% another company with strong numbers out just moments ago, kb home behave the numbers for us. >> yet another home builder reporting a nice beat. kb home q-3 earnings came in at 83 cents a share versus 53 cents a share. revenue of $1 billion versus $193 million new orders up 27% year over year they reported growth in all four regions. very aggressive. they're clearly making up for this now the ceo saying the housing market conditions strengthened

during the quarter fueled by the combination of historically low mortgage rates, a limited supply of resale homes and consumer's desire to live in a single family home. we continue to hear that now they do not have any specific guidance. but they said the first three weeks of september new orders were up 32%. and that's what we're seeing across the board for the builders the kb home is an entry level builder much that's where we're seeing so much demand and so little supply on the existing home side. we heard that from the realtors today. that's where it is really hurting and where kb home stands to gain. so a nice beat for kb in q-3 >> thank you so much for that. up about 3% in after hours up next, mike santoli will look at whether the recent moves in the volatility index could foreshadow a move higher for stocks we're back in a couple minutes here on "closing bell. ♪

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stocks closed higher let's go back to mike santoli and taking a look at how the credit market held up. i was just wondering about that, mike >> sara, it held up better than equities that's been a backstop on equities maybe limiting the degree of this correction. p this is a comparison of the volatility index, the vix along with investment grade spreads. its going down when it's low, credit conditions are strong it means investors are willing to take more credit risk they have not really moved much at all in the last couple months in fact, maybe just a little bit of a lift. volume has ended up exceeding it it is much more the equity markets and much more agitated if you had to choose one over the other, better to be this way to a degree than to see the spread rising at a time when the volatility index is stable which is what happened in 2015 into 2016 that's when you actually precede a 15% messy down turn in the

stock market so what it's saying is the equity market has the issues and erratic action in some of the big tech stocks. certainly overvalued you had volatile flows but it's not necessarily telling you that the credit markets underpinning, you now, corporate america are showing a lot of concern about the economic recovery or corporate balance sheet just yet >> yeah. potentially reassuring to the bulls out there. mike, thanks >> today marks national voter registration day levi strauss is among the 1,000 companies now behind the time to vote initiative. corporations like walmart, target, coca-cola and others are making efforts to help employees vote such as offering paid time off on election day or providing information. joining is now is chip burg. great to you have here >> thank you for having me >> i want to talk about what you're doing to help people, you

know, with their civic duty here to vote and whether you had any hesitation getting onboard with something like this given even the process of voting has made times heated. >> this goes back to the midterm elections in 2018. 2016 presidential election had the lowest voter turnout of registered voters in history and less than 50% showed up in 2016 for the election so for the 2018 midterm elections, we joined with patagonia and with paypal, two of my favorite ceo partners and we tried to get a number of employees to give their employees time off to vote one of the major barriers to vote, we're one of the few

democracies in the world where election day happens on a workday. it's not a holiday it's not a weekend it falls on workday. and as you probably know, the greatest lines at the polls are before work and after work so the idea was partner with companies to encourage them to give their employees time off so that they can go to the polls and be sure to fulfill their civic duty and so we decided given the significance and the importance of the upcoming elections and given the challenges as you said, you know, in the middle of a pandemic, we decided to renew this effort and set a goal to establish to get 1,000 companies to join us and we just passed that goal a week ago and now we're marching towards 1500 and hopefully we'll get more after this little segment

that represents companies from all 50 states and two of the country's largest employers with walmart and target joining us and the whole idea is to educate and inform your employees and ensure that they've got the opportunity and the time to go vote >> yeah. i don't know why this country hold elections on tuesday and not on weekends. but that's another conversation for another day. i want to ask about what your expectation is for consumers around election. every day someone comes on this network and says we're expecting volatility we expect uncertainty both about the outcome of the election and whether we'll either get an outcome of the election. do you expect that to trickle down into uncertainty that could imhe pact consumer spending and behavior >> well, there's, you know, there is no shortage of uncertainty today because of the pandemic and the economic fallout from that. and certainly the election will

likely contribute to more uncertainty. but i'm very, very hopeful that, you know, we'll get through this process, that the process and the process of the system is going to work regardless of whether an individual goes to the polls or does mail in voting, absentee voting, at all levels and not just talking about the presidential election or the federal elections, it's just important just as important with all of those, social justice, racial equality issues this country is facing we get strong voter turnouts to send a signal to elected officials at the city level, it at the county level, at the state level. those elections are just as important. i think if consumers or individuals feel satisfied that they're voice has been heard at the polls, consumer confidence

will lure. >> soshy, excuse me, chris, how strong is the -- sorry, it is chip >> it is chip. >> my sincere apologies. i dug myself my own hole there slowly trying to climb out i wanted to ask you what the consumer is looking like at the moment in the absence of another stimulus bill. do you think we're heading meaningfully south again in terms of retail spending, consumer spending? >> well, we're in the middle of our quiet period i can't give you a lot of specifics about our business since we've been able to reopen our stores which goes back to late may or early june, around the world by the way, we're a big global company and global brand, with he have seen really strong consumer uptake we literally, you know, we have limit the traffic going out. there are lines out the door of

people trying to get into the levi store our brand has neff been stronger and we're seeing the consumers are coming into the store kind of on a mission. the other big thing that happened through the pandemic and we talked about it a lot on this program, is the shift to digital. the shift to e- commerce that is something that i believe is going to sustain. but there are going to be a number of consumer trends that the pandemic has created i believe they're going to be sustainable. the shift to digital is one. there is conspicuous consumption. a lot of the dynamics and trends play to our sweet spot as a brand. >> what about comfortable clothes, chip? we just got an earnings from nike which knocked it out of the park north american sales were barely

down it seems like sports ware, athleisure is still very strong. wet pants, what does that mean with back to school and holiday so mercury is. >> i'll give you the big picture story on what is happening in apparel overall. p since the pandemic the total apparel category has shrunk h the share of apparel which is significant, we're about a third of the total call it bottoms business, about a third of the category -- of the entire apparel category is denim. as the pair category shrunk, our share of the category has not changed. and levi's is the number one player in denim. so there has been other shifts within the entire apparel category the obviously people are not going out and buying suits and formal wear and dressy stuff they don't really need it right

now. and the shift has gone towards athherebiure and we manage to maintain our share of the total apparel category on a smaller category size. i do believe it's going to start to come back as we, you know, start going back to the office and the pandemic begins to ease up hopefully some time soon >> hopefully chip, thanks chip burg the braet great to speak to you. ceo of levi. and tesla has battery day coming up and fis tists kicking oestivf this hour. we'll see if the announcements will move the needle with the stock up already 400% for the year as we head to break, check out shares of lululemon moving higher after they will restart the buyback program which was paused due to the pandemic that stock also proven to be a winner during this pandemic. shares have soared

tesla is about to staff. coming up, we'll discuss whether the company's highly anticipated new battery announcement will help turn around the stock which is fallen since the stock split. of course, still up sharply year date. we'll back in a couple minutes ♪ ♪ ♪

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welcome back, sue. >> hello, wilf in california, san diego county has narrowly avoided having to close some businesses under that state's reopening guidelines an outbreak at san diego state university has pushed up new cases to the highest level in months but still just below the

amount needed to trigger a retightening the notre dame wake forest football game this weekend has been postponed seven notre dame athletes tested positive the two teams could play on october 3rd since both are scheduled to be off that week. this is the 18th game to be delayed this season because of covid-19 infections. and plans are now being made for president trump to meet with judge barbara lagoa in miami on friday st that is according to nbc news lagoa is seen as one of the president's leading candidates to fill ruth bader ginsburg's seat on the supreme court. you are up to date, guys that's the news update this hour i send it back to you, sara. >> all right sue, thanks. tesla just kicking off the annual shareholder meeting this hour investors are anxiously awaiting any new details about the battery cell find out if that will help the stocchgeigr en losing bell" returns that's what my dad does.

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tesla's annual meeting is under way. we're moment as way from the battery day presentation jed, good to see you what are the key things we should be looking out for here particularly as it relates to battery updates? >> there is a lot of information as we talked about there is a lot of technical information about improving the anode and probably different sourcing relationships for us, the key is do they continue on the road to high performance which will be high density batteries or do they -- are there signals that they're pivoting to low density like what they have in china? and that will give a indication in terms of what we should expect whether or not they're facing more competitive threats

or whether or not they still have a lot more runway with some presumably new technology that they'll be announcing? >> musk tweeted about it saying what they're going to announce in terms of production won't reach serious high volume production until 2022. how zdisappointing was that we saw the stock sell off 5.6%, relative to where investors expectations are and people you're talking with and your clients? >> well, i mean, in all of these events you have a bunch of hype that you have elon that comes out. you have a bunch of followers. it's like a cult type situation. where he talks about a lot of things not all of those, in fact, few of them actually end up coming true so again, we think that the devil is in the detail i think there will be signs in terms of what is going on. but i don't see this as, you know, face value that it becomes out and announces a million

model battery and the roadrunner technology and says he's going to be putting it in six months, i don't think many people would have believed that anyhow. so i don't see it as, you know that, big deal >> jed, does the analyst community and investors want to see them license their battery technology to others in the future or do they want to see them keep it exclusively for tesla cars >> i think if you're an owner of -- that's a good question, actually i think if you're an owner of tesla shares, you want to -- even though there is the potential of licensing to drive higher value dollars to a larger pie, my guess is you're going to be mixed i don't have a good answer for you. >> so where are you right now on the stock? given the tremendous runup that continues to enjoy i see slight pullbacks amid the september volatility how do you justify any of the

valuation that we're at right now? >> it's tough for a lot of the names. you have seen fundamentals decouple we're at $442 for a price target it's based on an aggressive 55 times our pro forma 22:which is relatively rich. not all the chain games that sell into this trend are seeing the same benefit if you look at the ability to kind of pick through who should be benefitting from a move to some of these technologies whether it's sill con base order silicone carbide, high or low density battery and what does that mean in terms of the lithium, et cetera, there is a lot of ways to make money on the trend for clients. >> what do you make about the pull back? has it pulled back enough?

what are the drivers over the next six months? >> you've seen an incredible runup this year. the we would want to see at least a 20% pullback to get more aggressive on the name and to look at what is being said the challenge is, you know, this thing moves around so covid-19 presented the excellent opportunity as we'll bring you the details next

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shopify disclosing that the data of 200 members have been compromised. they engaged in a scheme to obtain customer transactional

records for shopify merchants. they're working with the fbi and international agencies investigating the criminal acts. so far there's no evidence the data has been used but it's still early in the investigation. again, 200 merchants here. shopify has more than a million customers. they didn't say which of the merchants has been compromised >> stock down 1.25% after hours. it's been a huge winner in the last few years. still ahead, much more on today's after hours earnings as we count you down to nike's call the stock up more than 9%. kb homes up more than 3% aflac. these are all the cab rides to my physical therapy. and aflac paid me directly to help. aflac. what he said. and this unexpected bill is from...

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shares of peloton closing lower today after competitor echelon unveiled a new low cost exercise bike in partnership with amazon. it's called x prime smart connect bike or simply prime bike it comes with a 30-day free trial of echelon's on demand prie prices the sticker price is $1400 below that of the original peloton bike which came in at $2,000 originally t only closing down .04% is quite impressive if you look online, this bike looks remarkably similar the colors are even exactly the same where the adjustment dial is, very similar to the peloton

bike, so much cheaper. i would imagine the functionally is probably almost just as good. the question is whether the classes and the computer system et cetera is good, but a hell of a lot cheaper, for sure. >> it can't be as good unless they hire alex that's the secret weapon. >> are you a big peloton user? >> i've had to be. there's nowhere else to go it's similar to a gym membership i covered alex and now i inhale confidence and exhale doubt and i think he's wonderful but i would say it's a reminder that the barrier to entry here might be pretty low, that other companies can just do this. >> right i think what you do isolate is that the barrier is not necessarily the hardware piece the barrier is the entire kind

of network, the social aspect, the media, the kind of caliber of stickiness, i guess i don't think this necessarily is a game changer, especially i guess with peloton also allowing more of an installment payments and things like that i'm not sure peloton has quite gotten to the point where it's a verb yet universally, but it's getting close to there i don't know if i see this minuscule pullback as necessarily an expression of fear for competition it's definitely worth asking because that's been the bear case on this company for quite a long time. >> and any of these fitness companies really just want to check on today's after hours movers including nike, which is a huge winner here on the back of a very strong quarter in many ways the reverse of what happened last time all the analysts were not negative enough last time and nike sales fell 38%. this time they were too negative and nike trounced expectations

with earnings almost double what analysts expected, sales higher in almost every single region and digital growth of 82%. we'll listen to the call for guidance we'll see how competent they are in seeing these trends and momentum continuing. >> kb homes up i'm melissa lee and this is "fast money" guy adami, tim seymour, dan nathan and bonawyn eison. our team is plugged in and ready to break down all the big headlines. plus we are following nike, that stock soaring as the company's earnings call gets underway. carav we start off with a tuesday turn around stocks pushing higher with tech

once again