that wasn't according to script, what the market thought, i thought it was a big deal. that's what pushed the dollar a little bit that's the match that kind of lit the fire. >> thank you, sir. jim, you are very much appreciated. frank holland, that you very much sorry about the market though. >> i don't think you have control over that. >> thank you for watching. "closing bell" picks it up now. >> thank you i'm sara eisen with wilfred frost. another choppy day for stocks. dow giving up 176 point gape, down sharply and on pace for the fourth time in the last session. let's look at what's driving action technology stocks pulling back, dragging market lower. amazon giving up a chunk of yesterday's gains, apple, alphabet, tesla in the red nike helping stem losses for the dow, though. surging to a record high on the back of blowout quarter saw

digital sales. more on that in a moment some hope on the vaccine front as well to mention j&j entering trials with 60,000 volunteers though cases rising in many states here and abroad down 450 points. >> a sharp selloff in half an hour as kelly and frank were discussing on the show we'll speak with ceo marc benioff we'll discuss how the pandemic changed business and his thoughts on oracle and tiktok deal plus more walmart is hiring tens of thousands of workers we'll speak to fubu founder and shark daymond john the stories we're watching, mike santoli tracking action, sara with a look at nike's quarter

mike, let's kick things off with you. down 2% on s&p. >> it seems as if really this rolling correction period in september has unfinished business to it didn't seem news driven though incrementally coming into the week, weak seasonal patterns a general sense if you were talking about an economic recovery, you weren't getting fresh confirmation of that day to day of course nasdaq is in sell the rallies mode that's been the heaviest weight on the market. here is the s&p 500. 3230, there abouts was the low the year-to-date break even level. where we were back in june a lot of stuff comes in there where people are looking at it and saying are we going to actually have some genuine real money buying around these levels or just going to be this trench warfare back and forth you have apple losing a little bit of a technical battle of its

own underneath $110 range. a lot of that is going on. i really do feel like it's mostly tactical stuff in the context of a market correcting, trying to figure out if a 10% decline is enough. this is also the six-month mark of the march 23rd bottom of this market it actually has been one of the best six-month runs in history if you want to take a look at where this one stacks up against two of the best markets in history, one started in 2009, one in 1982. the green line is the current one. we actually have fallen behind here the march 2009 path. maybe that's a good thing because for a long time it was greatest rally ever, no place to go but give backs. other rallies, long flattish periods. even in best case scenario, multiyear upside, wouldn't be surprised seeing it have to give back and shop around certainly nothing promised to the market after the six-month

run we've had. >> an hour or so ago i was going to put today's declines in perspective, higher for the week for most of the tech stocks and tech index that's not the case anymore. also in stock contrast both today and the week compared to the likes of the european markets, which finished the session higher today, on top of that the intraday charts look so unencouraging. are there negatives to take away and downside momentum certainly applying intraday? >> yeah. an unpersuasive bounce over a day-of-na. i mentioned monday's lows s&p 5003230. it's a little bit too soon to say this is a retest of that we're hashing around these levels yeah, in fer negatives the main negative is its ongoing payback for august again, massive outperformance to the upside extremes built up in terms of how stretched the market was then this is still a reset. the market is getting a little oversold on a short-term basis

on a technical basis a lot of stocks down a ton in a short period of time usually mean reverse, but not to the point it absolutely has to go up. this is not a panic selloff, this is really just retracing back toward where we were a couple days ago. >> mike, great stuff thanks so much for that. let's get to mike, the big winner on the dow following last night's strong earnings report sara has a closer look at what drove those results. sara, big performance there from nike. >> it's trading at a record high adding 62 points or so to the dow despite session lows we're seeing making it a huge winner against not just the market but other retail stocks so far this year there's a look at nike versus s&p retail etf you can see the performance of 24% versus 7 blowoutnumbers so how fast nik is recovering from the pandemic. some highlights of the quarter that drove a much better top and bottom line beat digital sales 82% faster and faster than last quarter when the world was locked down

and stores closed. it's key because it's a third of all nike sales, which is a goal that it reached more than 2 1/2 years earlier than expected. it's set to be half of nike sales in the coming years. major countries back to growth including china, germany, uk, japan and south korea. costs are down big double digits as events and sports canceled. that's the savings traffic is down, too, at the stores as nike mentioned that's offset by people spending more on fewer visits the forecast is bright we learned that in the conference call. nike expected to be up why in retail? a strong brand and cultural resonance through marketing campaigns and innovation that did not slow down through the pandemic a lot of examples cited last night. some, a new yoga collection. and for the first time ever nike launched a maternity line. executives called big growth in

women in particular and kids which are gaining share in the u.s. but nike is not immune to the pandemic overall sales were still down 1% from a year ago. north america still down 1 or 2% but those numbers were much better than analysts expected. analysts, by the way, way off the mark this time and last time as well, just in the other direction. mike and wilfred, i think the biggest question now is what kind of valuation does nike deserve? it is trading at a record high and the highest valuation it has seen maybe ever around the likes of lululemon, a competitor doing very well and growing quickly but much smaller and therefore you could argue has a much bigger growth runway in front of it what do you think about the valuation and rerating and the fact every analyst is raising its target today. >> the analyst had no incentive to set the bar high. they have to chase it, chase the price targets up to 150, 160 area that makes sense yes, valuation is the question

elite group of branded u.s. companies that have been bestowed with premium valuations i would include chipotle and starbucks in this bucket along with nike to some degree they are the ones that are perceived to have ultimately figured out direct to consumer even though it's not a majority of the business, it's enough of it and they are going to own kind of that part of their own franchise. this is enterprise value to cash flow on a forward basis for lulu against nike what you said, nike has caught up to this company that's one-fifth of its market cap. it's generous. not to say unsustainable 30 times 2022 earnings for nike. it's aggressive, but it's very difficult to say with this market really having a willingness to pay a premium for these kind of durable brands that are performing well, it's hard to say it's going to back slide. >> sara, i was going to ask how many of the other brands you follow in this space, frankly

other sectors, too, but particularly in this space could play catch up to the level of consumer offering nike clearly has got. we talk about everything in retail as being bad for bricks and mortar retailers, good for the likes of amazon. this direct to consumer approach presumably also is not ideal for amazon. >> no. the fact is, they are all playing catchup. they are accelerating that growth by a factor of years during this pandemic as companies have had to shift business online and are seeing double digit growth. nike was so ahead of the curve on this. just to give you an example of this, they announced john donohoe the ceo, who took over in january of 2020 he used to lead service in ebay. he comes from digital, a nod to nike, laying the ground for dtc, direct to consumer strategy for years. that was the culmination of it he's in the job at the right time where businesses have shifted globally to digital. nike is way ahead of the pack when it comes to that.

it's not the only advantage. it's the innovation that keeps on coming and the fact it's able to charge more for new innovations because consumers want them. the big question for nike is the macro concerns it's not immune to that. if the dollar starts to go up here, that's a headache, global recession, china u.s. trade wars, that's a headache for the company that supplies a lot, has a lot of factories in china and a lot of ddemand those are the questions when it relates to premium valuation. >> sports, if that shuts down. didn't hurt sales for the first round of sports but wonder if it happened again for a more extended period of time whether it might. >> maybe people are working out at home and starting to watch sports again as it comes back online. meantime doj proposing new legislation surrounding ways in which social media companies are responsible for content on their platforms. this hour president trump is meeting with state attorneys general to discuss protecting

consumers on those sites ylan mui has the latest for us ylan. >> sara, the meeting and draft bill are all related to president trump's executive order he signed back in spring that tries to rein in what republicans see as overly broad protections. they want congress to draw bright lines around what would be protected content, also tighten definition of information content provider, create carveouts for federal law enforcement and make it easier to file civil claims overcyber talking and abuse. the executive order directed dodge to work with the state to see what could be changed at the local level, and the white house is asking s.e.c. to write s some new rules about how and when to remove content technology companies, though, they are against this. the internet association is warning that the dodge's draft bill would mean that current good faith moderation efforts that remove things like misinformation, platform and

cyber bullying would result in lawsuits guys, the president does not have a lot of power to act unilaterally here but does have the power of the bully pulpit and expect we'll see him use it throughout this meeting. back to you. >> ylan, thanks so up make we'll be keeping an eye on it, and markets slipping, down 3% on the nasdaq composite you can see the dow is down close to 2%. shares of johnson & johnson barely hanging onto gains as they have a late stage trial which companies vaccines he thinks will hit the market first after this break you're watching "closing bell" on cnbc. 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.

welcome back check out nasdaq in final hour of trading big tech dragging market lower all sectors, helm, best performers down 0.8% let's have a look at biggest tech laggards. firstly tesla down 10%, battery underwhelming followed a bit of a decline coming into battery day.

tesla down 14% so far this week, 10% just today amazon raising its 3 or 4% of gains yesterday, down 4% today apple is down 3.8% apple had been strong in the early part of the week and positive for the week as a whole. amd and alphabet rounding out some of those big decliners today on the nasdaq. a lot of them beginning with a, sara. >> yeah. docusign and zoom video still going strong not as, definitely work from home plays johnson & johnson meanwhile announcing its coronavirus vaccine candidate is entering phase three trials it's the fourth vaccine to enter late stage trials and the first that protects with one shot. bernstein out with a note saying they expect earliest approvals of the sarah, to occur in the second war of next year. pfizer, biotech and moderna. joining us senior analyst with bernstein. first, big props to you guys at

bernstein for doing a ton of work when it comes to the data on vaccines and treatments you analyze everything and all time lines we need an hour for this interview. first tell us about the time line, second quarter of next year sounds a lot later than what a lot of people are talking about? >> yeah, this is before approval we expect emergency use authorization somewhere in late november to december that will hope the grounds for vaccination. these are people, exposure to elderly and folks on the frontline. so medical professionals and so forth. so there's about 17 million people who are considered to be employed in positions that exposes them to high-risk. 16 million additional ones considered to be elderly and dual risk. we think those will be vaccinated december to april or

so enough safety data people will feel comfortable, fda will feel comfortable to say, fine, even if the risk isn't high, the vaccine is right for you at that point will open the flood gates to the broader population vaccination. >> i think one of the biggest questions investors are grappling with, what happens when we do get fda emergency use authorization and the people that are designated can start to take a vaccine what happens to economic activity, consumer confidence? how quickly does that light switch on? what's your analysis >> that's a great question our take is most governments are looking primarily at the issue of number of people hospitalized and mortality. if you're going to go ahead and immunize those high-risk populations, what you're going to end up having first is a decline in mortality and hospitalization. that should happen somewhere towards the end of the first quarter.

at that point, we think a lot of government including i'm guessing some in the u.s. will be comfortable to say, fine, if you're not at risk, you can go ahead to move to a voluntary way of segregating yourself. they don't allow places to be closed but leave it to the individual or business to decide how much risk they take. as long as not at risk because the number of hospital rates and mortality down we'll be okay acceleration of economic activity will start midyear of 2021 in a good case in that case vaccine will get approved reasonable time, which is what we think or if we have delays, towards the end of the year. >> when we look at a stock like j&j, ronnie, what portion of your overall value of the company is captured in covid-related vaccines and treatments as opposed to traditional part of the business do we openly focus on covid every day there's news flow and

the stock price reacts so much. >> yeah, i think straightforward yes. you want to think about this vaccine wave as something that will happen in 2021. we kind of give first wave vaccination an $18 billion value. but the problem is you don't know how much of that will translate into long-term trends. the assumption it less vaccination and the disease will be over. if the vaccine works a little better than the minimum, that is they work for between or three years, our take is dollar value valuable much lower. so we kind of put the long-term value off this covid market around $5 billion roughly. it's the scenario. the u.s. business alone for the vaccine is about $400 billion, $350, $400, the u.s. roughly the same size. $5 billion out of $800 billion for the drug industry. obviously an action on drug prices, it will probably be bigger than that

we don't think this is a significant value driver for long-term. obviously on interim momentum, it makes much more of a difference >> one of the other models you looked at was social distancing by industry and figured out what that meant for earnings expectations do you think that's in the market what were some of the key findings >> so this is more the strategist, did this work, would be appropriate here. i will hack this a little bit not the model but the rate of economical growth he projects next year is probably lower than most other analysts with right now factors. in terms of industries, obviously heavy industries, industrial production will probably come in first our cruise lines probably a lot later, just if you think about the general behavior of humans. >> thank you for joining us. appreciate it.

>> happy to. >> with bernstein. we've got just under 40 minutes left of trade here take a look at the dow down sharply, 469 points. we were up at one point, down 2% on s&p 500 all sectors in the red technology hit particularly hard nasdaq down 2.5% some of the favorites in the eye of the storm, apple, microsoft, some of the high-flying names there. health care is also getting hit today. as far as the dow, nike and j&j are the only stocks higher after the break, disney and theater stocks crushed with the market after news of more blockbuster delays we're going to tell you which movies will get pushed back next heading to the break another er, good rx soaring after the ipo today. we'll be right back.

36 minutes left of trade disney and theater stocks taking a leg lower after news of a number of upcoming movie delays.

julia boorstin with the details. julia. >> sara, that's right. disney shares down about 3% under pressure today as the company announces that the -- a number of its films will be delayed. this includes pushing "black widow" big marvel movie from november to next year. also ""west side story"" that will be delayed by one year. the news of yet another delay to the recovery of movie going prompting a further selloff of theater chains amc shares down 8%, scinemark down 6%, i-max down. it's been a big driver. the nasdaq the underperformer today josh lipton diving into some of the biggest decliners for us josh. >> wilf, let's start with apple, ubs analyst assuming coverage of iphone with neutral rating

arguing apple shares reflect the growth from 5g cycle stock down 20% from its recent high it hit september 2nd, still up 100% from march low check out semis, etfs track the chips lower, down 10% from recent all-time high noticeable decliners, amd nvidia another subsector, software, salesforce, box all under pressure back to you all. >> josh, thank you for that. all sectors are low, measured mention again, by about a percent or so. the banks have been higher for the session, now down, 2% kwb, everything low in the last hour sore so, session lows, 530 down dow, nasdaq down 3%. shares of dow components sales up 45% this year, crawling back with other tech names.

coming up we'll speak exclusively with marc benioff and how the pandemic has changed its business as we head to break, a check on bonds. yields higher across the board the ten-year around 0.67%. back in a couple minutes i have an idea for a trade. oh yeah, you going to place it? not until i'm sure.

why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪

welcome back to "closing bell" with a half hour left of trade we are seeing sharp declines dow down 520 points or so, 26

their session lows and swinging 700 points highs to lows if not for nike we'd be down another 55 points on the dow s&p 500 seeing all sectors sell off. 3% declines for groups like energy, real estate, technology, and materials. so some heavy losses piling up into the close technology and nasdaq hit particularly hard. time for coronavirus tracker in the u.s. cases growing by 10% on a week over week basis. arizona, wyoming and montana reporting a 60% increase in the seven-day average of daily cases. meanwhile google groug covid-19 layer in maps which would show critical information about covid-19 cases in a certain area with the new update users can see color coded map based on the number of cases per 100,000 people lufthansa in talks with

drugmaker roche for antigen preflight test it would be included in pricing. that's a big deal, wilfred it could lend confidence before people get on a flight. >> a huge deal i totally agree with that. the interesting thing is how different countries in different regions within countries may or may not be capable of delivering that level of testing capacity you look at the uk no chance they would have capacity to allow that for flights as well. you look at pockets of the u.s., perhaps, but not all across the u.s. germany in a position better than others interestingly using roche antigen test swiss company. i agree. that's something that would make a big difference again, i don't think water ready to make that widespread that it would be game changing. >> they have to ramp it up. >> exactly i agree. great idea let's get a cnbc news update with one and only sue herera hi, sue. >> hi, wilf, hi, everybody here is what's happening this

hour we continue talking about the coronavirus because france reporting more than 13,000 covid-19 cases that's for the third time in six days total cases have risen above half a million the second highest total of any country in western europe. here at home researchers in houston are finding one variation of the coronavirus has become dominant in that city and potentially more contagious but not necessarily more lethal. one of the nation's largest performing arts organizations will stay dark through next september. new york's metropolitan opera has canceled its entire 2020-2021 season new year's eve in new york times square will be mostly virtual affair organizers say only a small number of people will experience the ball drop in person. instead it will be, quote, a virtually enhanced celebration i don't know about you, but i'm ready to wish this year good-bye. >> i am, too, but i also love

the idea of virtual celebration. it's so busy. >> i think they are going to do a great job. we're all going to be watching and then we'll usher in 2021. >> without virus, with social distancing. >> exactly. >> with alcohol. can you still have the drinks without having to be with everybody. >> of course. >> it's one of the few things that could be a tiny benefit of all the craziness. >> you've got it. >> it got very cold there some new year's eves. see you then here is a look where we assistant because we are seeing heavy declines here. we're off the lows now dow down 457 points. we were down more than 500 just a moment ago changing rapidly, down 2% in the s&p. let's see if we have a rally into the close down 2% on the s&p, nasdaq down 2.6% technology getting hit hard with real estate and energy after the break, battery day presentation failing to energize investors today.

the stock tass a dive. we'll talk about the announcements with an analyst there in person and ask whether wall street is missing the bigger picture here. down almost 10%. we'll be right back. first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance. get e*trade and get more than just trading good job, michael! does. ok, lindsey now tell the class what your mommy does...

my mom has super powers. it's like she can see the future. what?! it's like she time travels in a rocket ship. that's cool! and then she comes back saying "try this" or "try that." she helps everyone. she helps them feel less worried. wow! mommy, so what is it that you do? i'm a financial advisor. she is! aig proudly supports all the professionals taking care of our financial futures.

welcome back, 24 minutes to go in a today's session, stocks set to take a dive the biggest losers, number of energy in withers, apache,

marathon, freeport freeport down 6%, which is interesting, wilfred, because oil prices aren't down that much they are down a little bit but this group slammed. >> a lot of cyclicals and others commodities. >> strong dollar. >> hurting gold, down over 2% as we stand tesla shares sinking more than that today, about 10%, 10.2% after battery day presentation was down 4% yesterday as well. joining us seasoned analyst who attended the event tesla one of the top holdings as we know. thanks for joining us, sam why are stocks down so much today? >> this is a clear example of wall street being short-term oriented they wanted something maybe for the next quarter tesla laid out incredible plans for the next two to three years to make sure battery production would not be a problem or a

bottlenecks for ramping and they would be able to produce a price parity electric vehicle. i think that level of investment for the future is just not what wall street analysts are looking for. >> so do you think the run-up year-to-date, far big ethan the pullback is wall street being too focused on the short-term? >> i think so. when we're looking at the research and tesla's ability to turn their fleet of vehicles into autonomous vehicles and get paid on a price per mile basis, we're still at the very beginning of what tesla can achieve. >> i was saying, sam, you were saying pullback short-term focus so the run-up that preceded that, is that short-termism or is that the correct long-termism >> i think that was people finally catching up to where tesla has proven themselves as a manufacturing company, being able to ramp production.

i think for a long time, pretty much for the past five years, the narrative we heard, tesla will never be able to scale production now tesla is going from breaking ground on a factory to volume production in 1 1/2 years. so i think that was really a catchup for wall street to where they are today and where they are operating. i still think there's a huge amount of roomto go from here for what tesla can do in the future. >> and we'll give you credit the funds have done well in part because of heavy exposure to tesla. you were out on a limb with very, very bullish calls what's going to take tesla higher and how much do the battery announcements, sprl on cost, figure into that >> i'll start on the battery front. the announcements they made are incredible they are not just improvements on dollar per kilowatt basis but the cost reduction measures are actually increasing the

performance of the vehicle so this is kind of giving them an edge on not just the cost of the cell but on the cost per mile of range. so prior to yesterday's announcement, we thought tesla had a three to four year lead versus the competition with regards to battery technology. now we think that lead that extended further this is all due to vertical integration. you saw that because these improvements were coming across a number of vectors. that's going to be extraordinarily hard for a competitor to replicate. >> this 10% pullback or 14% over two days, short-termism, clearly it's performed unbelievably well so far this year, sam. that doesn't lead you to want to take any profits from what has been a fantastically successful holding, of course, for ark. you think this extraordinary 400% run-up this year is just the small start of what's to

come >> yeah. so we will release an updated version of our valuation for now we are sticking with that same $7,000 price target divided by 5 for the split, to $1400. we think that will actually change as tesla continues to move towards autonomous electric vehicles even at the battery announcement yesterday, you had elon musk say they are going to release a beta version of full self-driving in roughly a month's time. >> mike santoli points out ylan musk predicted a million rob okay taxes by 2020 last year that hasn't exactly happened don't you think a little bit of a fool me once story here when it comes to, no doubt, very ambitious targets and visionary stuff when it comes to technology versus what can get accomplished and produced in a timely manner? >> yeah.

i think that's a fair point. i think i would flip that and say fool me once is not that it can't ever be done, it's, in fact, that it can be done, though sometimes a little bit delayed. i think everyone has become very familiar with elon musk having extraordinarily aggressive time targets. but if you look at his master plans, even if it's been delayed a year, he executes on that plan and so we executive them to continue to be able to execute on the plans they lay out. we want them to continue to be aggressive even if that means they miss some of those internal and external guidelines they set. >> sam, did you guys look closely at nikola? did you invest why or why not >> sure. we looked at nikola. this is just looking at their investor presentation relative to what tesla put out for the semitruck. if you look at the hydrogen as a fuel source, it would be three

times as expensive relative to electricity as that fuel source. so over a seven-year period, we're talking about $70,000 for electricity to run a semitruck versus close to $230,000 to run a hydrogen fuel cell truck so we just -- from our research we don't think that the technology will be price competitive with a battery alternative, so we did not invest. >> sam, thanks for joining us. >> thanks. >> there is no stock or sector, sara, as we experienced a number of ways this week that divides opinion and leads to more extreme polarizing super bowls -- >> tesla. >> bowls and short sellers. >> they promise a lot? >> sorry >> they promise a lot. >> they do. >> they have to deliver. high expectations. >> again, even then, we have such confidence in their

execution even though they missed the deadlines it's sort of remarkable but you can't -- ark has been right over the years. they must have made a fortune. coming up next, "closing bell" market zone. ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a happiness that died ♪ i let it get away servicenow. the smarter way to workflow.

but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities,

24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. welcome back fourteen minutes left in the trading day. now in "closing bell" commercial-free coverage of all the action going into the close. cnbc commentator mike santoli to break down crucial moments of the trading day. ceo josh brown with us as well skrosh, kick things off with the broader market, the selling continues today after a break yesterday and a break early this morning. but selling off intraday as you can see from the dow chart, down 1.8, s&p 500 down 2.1%, all sectors lower, mike. this is definitely led by tech,

this afternoon's selloff, but it has dragged down everything, even sectors like health care, utilities, banks, that were quite markedly higher at the open. >> it's a big enough part of the index it has spread more broadly to tech. the fact it still has been somewhat led by the nasdaq lower does imply that part of the market remains in sell the rallies, every bounce, tends to be suspect until you can prove a little more follow-through behind it. it also suggests today even though background hum of concern about whether case counts or fed sending a muddled message with different voices or the fact we haven't had a lot of upside economic surprises, it doesn't seem like that matches with the market action, which seems to be we're in a correction, have to do more testing here people still feel as if they own enough, if not too much, big tech. >> what's interesting, it's not a panic move, as we've seen with

selloffs treasury yields are higher, which you might not expect, not a lot of safe haven protection there. the dollar is higher as well that is reflecting a little bit of a risk aversion josh, how would you describe sentiment right now in the shift we've seen in the market >> i just think you're in this period of time where we knew case counts would go up as children return to school and young adults return to college and we are getting those case counts i think it's a 15% of seven-day rolling average in the last 10 days, or that was the count yesterday. but i think we knew that would be the case and so the market is not quite reacting to that i think we're out of earnings season maybe without a catalyst or without exciting news after the bell or before the open. that stuff has propelled the market in the last quarter so i think there's a little bit of the case of that going on you also have all that split

enthusiasm for apple and tesla that's a month ago a lot of younger investors and people that have plowed money into options and things like that, they are saying now what i just think there's not a ton of news, not a ton of desperation to get out of positions. tech names obviously are down the most so if you're the type of person waiting for the dip, i'm going to buy the dip, here it is to mike's point it is broadening away from tech you see disney unwinding post earnings pop, almost the whole thing is gone. you see materials rolling over that was an area of huge strength in september. so that's where we are one thing i want to point out, sara, and i think michael will agree with me on this, the people that are looking to play for the bounce, the people that for a living look for these corrections and try to take advantage, the stocks they are watching is the percentage above either 50, 100 or 200-day moving average and they want to see a

wipeout there. we're not there yet. percentage of s&p 500 names above the 50-day is at 38% i think probably 25 or 30% is probably the level at which people would say, okay, enough damage done, enough stocks sold down, let's take advantage so we're not quite there yet and we drift lower. >> we're not actually technically in a correction for the s&p, down 9 3/4 from the highs. not at that 10% threshold. for the nasdaq off 12% j&j trying to hang onto its gains, one of two dow stocks higher after announcing it's starting phase three trials for the coronavirus vaccine. meg tirrell with the details meg. >> hey, sara, a massive phase three trial they are beginning now. 60,000 participants, they plan to enroll on three different continents what's really different about this vaccine is it's given in just one dose in these trials, whereas pfizer, moderna, which began phase three are given in

two doses. j&j says based on the phase one, two results, it was able to decide that could be enough to help with this pandemic. we haven't seen those results yet. we're expecting them over the next day or so so we'll get to see how they made the decision. guys, they are behind pfizer, moderna and potentially astrazeneca on hold in the u.s. j&j says if all goes well they will have batches ready for potential emergency radio authorization to start supplying it in early 2021 guys. >> meg tirrell, thank you. mike santoli, the first thing i read this morning, and it is encouraging, the kind of thing that is the right direction. feel good after so many developments after so many vaccine makers. >> part of the premise going on in the market for months, which is many, many efforts in this direction, most going to move ahead and probably some will bear fruit we'll be within several months

know a little more about exactly the pacing of when we might have vaccines so if you really want to pull apart the news today, we new j&j had this big trial, going to get into phase three, new they were going to enroll it, now they have enrolled it just kind of updates along the way. i do think it's encouraging in the background but i don't think it really qualifies as fresh, actionable information relative to a stock market up 50% in six months. >> down 3% on the nasdaq as we stand with 8 minutes left. twitter one of the few stocks higher, julia boorstin explains why. hi, julia. >> wilf, twitter shares bucking downward trend soaring from pivotal. stock hitting highest level from 2018, up 6%, upside from the olympics next year as well as direct response advertising starting to kick in and potential from a subscription business that twitter mentioned. pivotal saying they expect third

quarter earnings and forward commentary to act as catalyst for the stock. this comes as twitter along with facebook and youtube negotiate add deal with the world federation of advertisers on harmful content. twitter committing to a roadmap to give brands more control over where their ads are placed wilf, back to you. >> thanks for that josh, you gave up on this one, attempted to go back in. >> no. >> not at all. what do you think of this upgrade potential subscription service? everyone pays up for subs and gets a better multiple. >> i think it's a good idea. i think twitter should have done it 10 years ago. people have found other alternatives like substack, et cetera, to sell their thoughts and charges. now it will be more crowded than what it would have been. i'm not suggesting twitter won't make money doing it. they seem to be very onslow genetic around to things that everyone else seemed orve. why aren't they charging for

tweet deck every media, sportsperson, would pay a nominal number to use the service or more likely have their assistant use it why is it for free is it inertia? an incremental positive. i still think the platform has really been unable to scale the number of actual real users. i don't see anything that changes that any time soon they could probably do a little better on the ad side and make some more money from the users they have but this is never going to be the size of instagram, facebook, whatsapp. it's not going to happen nothing i heard changes that. >> you're very down on twitter and you're not tweeting anymore. i wonder if there's a correlation there? >> find me on instagram. more fun. >> i do. i, of course, follow you on instagram. mike -- >> i follow you, too, sara.

>> mutual lovefest mike, 3% move for the nasdaq lower here obviously technology getting hit pretty hard. >> yeah. >> you've been saying all along it's a little bit of positioning that needs to get worked out, crowded trades, a lot of enthusiasm for this group. a 12% decline up the highs when do you say we've seen a correction, a washout. >> i don't know we're near a washout. we're qualifying, we've certainly corrected. i don't pay attention to arbitrary loss, the market has been trending lower for three weeks off a very kind of overextended position, it shows you it's correcting some of those excesses that's the process we're undergoing nasdaq not where it was at the recent lows or actually just made a recent low. nasdaq 100 down 14%. >> hey, guys -- >> you never know exactly how much more there is to go until

you get a rally and people smack it down by selling it. >> i want to add one thing to what mike just said. the s&p 500 is very close to losing up on year. so will be i thinkflat on year maybe one more down day. what does that do to psychology if we return to down on year from a sentiment standpoint, feel like the market is up and missing out. i'm not just talking retail but professionals feeling the market is up and you're missing out maybe drives more incremental purchases with whatever cash you have on the sidelines or available in your funds. feeling the market is down and you're not missing anything and, in fact, maybe time to protect again, you know, oscillating back and forthright around the flat on year mark is not a great place to be. >> josh, you said earlier in the segment that if you were someone that had been waiting for a pullback to buy, now is your

time are you in that camp >> we would be rebalancing would be a better way to put it rather than, quote, buy the dip, though functionally the same exact thing. absolutely when you think about this new generation of investors we hav in the market right now, the word "risk" for them is not equivalent to volatility in fact, volatility is their friend i think most of the people who are actively investing and actively contributing to retirement, why would you not be investing? you're worried you'll buy and the market will drop 10% what's the difference? the highest likelihood you're investing in money you can't touch anyway for 25 years. i don't view what happened in the market as something that should have anyone change how they felt about the stocks they were invested in in july and august when they were doing nothing but running up we really have to be careful about not changing our opinion

of whether or not to invest based on the last thing we saw on the screen. >> speaking of being careful i just want to point out where some of the most acute pain is felt look at some of the electronic vehiclemakers. we mentioned tesla off 10% or more nikola down 27%. it's been tangled up in fraud by hindenburg, s.e.c. and doj another one, an electric van maker. all these stocks going straight up and a ton of retail enthusiasm they are getting crush, wilfred. >> they are. nasdaq down 5% mike, what about internals >> weak side not outright purge if you look at the volumes a little bit extreme 3.3 downside of the new york stock exchange not necessarily as extreme as you sms see. early monday 95% to the downside also mentioned dollar going up

take a look at the dollar versus s&p 500. this is the dollar in the form of uup, newly popular u.s. dollar index etf it has been rising, bearish consensus on the dollar. you have had the bounce. not the only thing going on, not the only driver of stocks. an incremental tightening of financial conditions and risk aversion move and the dollar gets to those leverage positions. finally, the volatility index not really taking flight here. we're staying under 30, market at lows for monday it's range bound with a fairly healthy bid for volatility insurance still. >> all right as we go into the close here, we are seeing all the major averages lower we're down for a fifth day for the s&p. every sector is lower in the s&p 500 and they are all down at least 1% the best performing group is health care, down 1% energy getting smacked down 4

1/2%, real estate down 3 technology down 3 as well. so pretty big day of selling takes us back to early september in terms of the worst day. september proving to be a historically bumpy month dow down 2%, fourth down day in the last five. nike the best performer, j&j positive, everybody else lower on the day, wilfred. >> that's right. lower across the board for major indexes. welcome to "closing bell," i'm wilfred frost with sara eisen, mike santoli, cnbc commentator fourth day for the dow, fifth day out of six for s&p and nasdaq nasdaq worst performer of the major indexes down 3% or 330 points briefly touched slightly lower than that about 10 minutes ago very close to the session low at the close. s&p down 2.4%, dow down just shy of 2%. all sectors lower by energy tech

and real estate. we also had gold selloff down 2% today and the dollar rally by 0.4%, dow up 1.4 we'll ask marc benioff about the selloff we've been seeing in tech stocks. joining us to talk about the market today is josh brown from management chris joins the conversation from merrill and bank of america, private bank. mike, first on the markets and selloff. >> we sort of skidded right back to where we were more or less at the lows on monday so this week is historically been pretty poor seasonally in a bad month, all living down to expectations to a certain degree to dial it back a little bit, pointing out around this area for s&p, josh mentioned basically year-to-date break even level, where we rushed up

to in early june and had a little pullback from that level in june. so essentially you've had no net progress in the s&p for 3 1/2 months i think you could look at that and say what went wrong. i thought the economy was better maybe nothing went wrong at that point in june, we're saying, wow, this slows down, have fundamentals catch up, the rally not run away from itself if nothing else that's what's happened here even if you can't declare for whatever reason with a very weak close somehow there was a line drawn and it's not going to go any lower. >> chris, what do you make of this pullback? is this a buying opportunity >> yeah, certainly very encouraged by market internals in general but it's pay barch time i totally agree with what mike was talking about before and josh's comments about the s&p almost sliding into the red here it's bay pac time from august. august got way ahead of itself we like to see those type of

markets because markets trending up do create enthusiasm. but if we really just step back a little bit here and ask ourselves is this a buying opportunity, still $4.5 trillion in cash, $2.8 trillion previous to the high that was in february it's almost 60% higher than that right now. investors positioning, even though enthusiastically on verbiage talking enthusiastically, their positions is on the bearish to below neutral side we're encouraged, number one, wilf, is profits without earning profits you have a spate of news and there's nothing to latch onto except for the headline of the day. >> so what parts of the market are you encouraged about specifically, chris, would you be buying? >> there's this big, big movement out there about is it tech is it momentum is it growth, or is it something else, value or cyclicals it's a lot of that

a lot in combination areas of value, cyclicals that can benefit from a vaccine or better recovery than what the previous markets gave us so i think it's tech i still think it's health care for the longer hall, some of which is overextended right now. certainly in the next 12 months it's a variety, diversified mix of individual themes across a variety of different factors in the market that as a long-term investor just state a discipline and use these weak periods that are headline driven as an opportunity to buy back into those areas of the marketplace that pierce through and go onto the new frontier, that's where the investor gets rewarded. >> mike, what did you make of gold selling off in line with equities >> it shows you that ultimately it's another risk asset and it sort of traded in that direction with the rally inequities. it didn't necessarily have an offset type character to it. we mentioned the dollar going up

as well. gold and silver to the downside as well. it's been pretty much the mode it stayed in for a while the gold chart doesn't look so great right now, actually, as it trades under 1900. things can trade quickly as we saw on the upside a few months ago. >> along with that dollar strength, josh, freeport mcmoran got hit. i know you like it are you in it? a believe in commodity names >> i think intermediates long-term trend in tact. these stocks probably bottomed i think a lot of material names can be bought. the other segment i would mention in the same are home builders consistent in the last months. we've had bad days, materials. home builders bouncing nicely itb off the reyes in 50-day moving ample you can pretty much pick any of the top ten names. if you're looking at stocks showing strength, while we've

been in a dip for correction maybe, that's where they all are. there's a good reason for that we found out this week a third consecutive month of rising existing home sales, we don't have enough built homes in the country and we're going to see a lot more of that inventories are now down to really a million and a half homes or less, which is a three-month supply in the meantime you have mortgage rates at an all-time forever low, 2.86% to get a 30-year mortgage, and the most popular age to be in the entire country, speaking demographically, is 26 to 29 years old, which is people getting into their peak family formation years. we've also got this continued drive into the suburbs now that people are freed from the shackles of having to show up at an office five days a week so you add all these things together, say what stocks are going to work for investors coming out of this correction, i really feel that anything that has to do with remodeling,

housing, these should be outperforming broader economy of the next four years. there's too big of a tail wind behind it for them not to. that's the pond i would be fishing in. >> chris, i know you're constructive on global growth. are you concerned about headlines out of europe this week, or are you taking that as an opportunity to look through those headlines and buy some of those significantly underperforming markets here today? >> the time frame is really important here if we're just thinking about the next few weeks or perhaps between now and year's end with this focus and unfortunate situation of so-called secondary outbreaks and potentially that means some restriction light or shutdown light type of atmosphere in certain parts of europe, that could lend itself to activity than most people believe. but over the next 12 to 24 months, the game changer we saw not too long ago is the movement towards pandemic relief fund, which in a sense is a sense from

what europe did in the past in which austerity was number one and now towards more pro growth policies in the fiscal front monetarily to us is a big change for europe we're still enthusiastic overall on a neutral basis if you looked at an overall global portfolio from the standpoint of international investing. that's where we're looking to add to some portfolios the same thing would be areas like small caps and certainly industrial space as we get further into next year and you have a better outlook on the profit cycle in general. i totally agree with josh on the home building side the demographic wave in housing is something that gets pushed aside. a lot of scepticism around that. but the biggest beneficiaries of that is this demographic shift that takes a long time to play out. before you know it, that's where the housing has leveraged to the

broader economy. >> chris, thanks for joining us. much appreciated good to see you again. we're going to pivot and talk about the surge of late in ipos and spacs. another merger. >> mixed market reactions to these listings on the one hand goodrx up about 53% after pursuing a traditional initial public offering route. the company is known for shopping for the lowest price for prescriptions. that doesn't mean it listed lowest priced ipo, 33 above the range, some momentum carry it to a whopping $19 billion market cap in today's trading and then on the other hand united wholesale mortgage agreed to be acquired by a spac, largest reverse merger of its kind with $16 billion valuation.

the spac itself by gores group on the announcement. gores put in $425 from the spac plus another half a billion through private placement. in exchange gave up 6% of its company. guys. >> what's the pipeline looking like for these things. clearly a lot were rushing to market to make the most of the conditions with declines like this, you could see them try and rush even quicker. >> you're right. oftentimes you do see, at least in 2020, you see gains with these spcas on announcement day like today a lot of the pipeline has really worked itself through largely this year. companies from initial offering point and spac standpoint were really trying to get things done before the election. there's still bake-offs happening meaning meetings with bankers trying to figure out advisory roles and so forth. largely these deals have come

through. we're waiting on big ones. palantir, next week expected to list on the 30th otherwise a lot of companies are expecting some volatility surrounding the election and trying to get out in advance of that >> leslie, thank you josh, are you in any of these? have you been buying any of these spacs or ipos? what's your sense of the rush leslie is describing to get in ahead of an election >> yeah, i think the spac thing really took off because road shows to do traditional ipos and having meetings with institutional investors and syndicates is just impossible. but then it took on a life of its own. i think deserves credit for being early to the space, doing the virgin deal. nobody looking at that could have known it was going to work out one way or the other imagine a scenario where it would have been a disastrous deal and you never would have heard the word spac again until the next cycle, but it didn't

work out that way and his shareholders made a lot of money. i think that ignited interest in spacs from areas of the economy that traditionally would never even have considered them. for example, other technology companies. it took on a life of its own now you have 138 of these coming out, out there hunting for a deal another 49 spacs filed to go public you're going to have somewhere over 200 of these blank check companies running around trying to buy things. are most going to buy something good probably not are most of them going to get a great valuation for what they buy? probably not what is the rush about the rush is about if they don't consummate a deal, they have to send the money back, forfeit founder shares and forfeit a lot of fees associated with closing a deal obviously nobody wants to send money back this is wall street. so i think what happened today is interesting this is the largest ever, a $16 billion valuation for the target but the spac is only coming in

with 6% of the deal. then there was a pipe afterwards the fact that investors yawned when the deal was announced, i think that's notable i think you'll see more of that. it's been estimated half of the companies that have been acquired by spacs this year would have gone public in 2021 anyway the other half, i don't really know the providence of why they decided. you probably have too many of these already. you're probably satiating. it's not an area i'm interested in like most things on wall street, it started out as a kernel of a good idea, got saturated and now we're excited about it. >> josh, we'll leave it there with you up next shark tank investor

daymond john, how the second wave could affect the retail sector pull back as a buying opportunity or thinks the's er more downside ahead. back in 90 seconds on "closing bell."

welcome back retail stocks getting hit hard in today's session retail etf down 2.6% in names like etsy, ralph lauren and home depot falling sharply. walmart announcing plans to hire 20,000 seasonal employees to

help pack and ship online holiday orders it's the first time in five years that the retailer has announced significant holiday hiring for more on retail let's bring in daymond john, fubu founder and ceo and shark tank investor. thanks so much for joining us, daymond. so often we ask the question if the worst is behind brick and mortar and wonder whether we start to pick up again do you think we're getting a reminder the worst is not passed yet? >> oak, the worst has not passed at all i think we have a couple more years of something like this if you're a retailer, a brick and mortar retailer, if you don't look at online presence as a separate presence you're in trouble. look at the ones who are -- look at lululemons of the world right now people don't need to wear more clothing at home, they are wearing less if you acquire mira, you have an app and self-direct to your customer and have a separate platform, you're doing rock star

numbers. >> in terms of the key advice you have for some smaller retailers and how quickly they can pivot, what would that be? >> i wish i could tell you that, you know, it's going to be rosey all day but depends what type of retailer you are what are you selling if you're a gym you're not selling a membership, you're selling healthy lifestyle. pots and pans you're selling to somebody to be a chef. how are you tapping into that? i mean, listen, i know some smart retailers are doing what they should be doing they have an empty space, not as crowded, if you're covid compliant, why aren't you having kids come in doing fashion shows and feel like they are on a runway and streaming out to everybody whether a fashion show or makeup company doing faces or live cooking shows have you to find a way to be a content provider for that space. that's real estate. >> seems like, daymond, it's also about brand

nike just crushed the numbers in its earnings report, 82% e-commerce growth and back to growth in so many key markets. the stock shot up today at a time when so many retailers are going bankrupt and so many retailers -- just yesterday ralph lauren to announce job cuts it really is such a divide of winners and losers what can the losers take from the nikes of the world that need to play catchup on digital and on brand >> well, you can acquire companies in the digital space and market, but nike doing this for a long time. nike will go out and make one shoe for one customer custom made you look at a company with a market cap like that, customizing pieces and say why would you do that. they are touching the kid at home now they are getting creative content from these kids. that one shoe, when they put it into the system they realized how many kids had a very similar shoe the kids just designed their

whole line for the next year they were doing this already prior to covid, now showing their strengths. people like ralph lauren have to catch up or acquire somebody else on their way up because it's going to be too hard to pivot just by themselves right now. before you know it, covid will be over and we'll be back to a divot form of normal. >> daymond citigroup released a big report and pledged more than $1 billion to help close the racial wealth gap. i know you've personally been working as well with lowe's or jpmorgan, chase. do you feel we're at a watershed moment of change or still an enormous amount to be done >> i think there's an enormous amount to be done but these are amazing and great starts as you said people working in full transparency with jpmorgan and chase. in advancing black pathways, part of the 2% solution with robert smith and volcker group

and 2% of fortune 100 -- excuse me fortune 100 companies to allocate 2% of their earnings over the next 10 years which will equate to $28 billion that will go into broadband and education and various different things i do think this is a good moment as long as we keep this momentum going an we have long planned things these things are not going to change overnight we're going to need five, ten years to see substantial results? >> daymond, congress is nowhere on a new stimulus bill with your view into small business right now, how badly do we need another ppp program? >> we need it very badly right now. half of the country is feeling -- all of the country is feeling the pain and half the country doesn't want to admit it i think small businesses need this right now what have we been paying our taxes for and doing all the things we have been doing to run businesses this is when we need the

government the most. we're not asking for a handout it's because of poor leadership and poor ways this has been handled from a lot of different levels that the small business is -- you lose small business in the country, that's the backbone of the country you lose a lot of hope for a lot of people, a lot of taxpayers and mentors in the community and this is desperately needed now they need to cross the aisle and get together because all of us are suffering in this situation. >> daymond john, thanks for joining us good to see you as always. >> thank you. >> up next, mike santoli a steep drop in buybacks holding back of the broader market as a reminder watch or listen live on the go on the cnbc app we'll be right back.

welcome back let's have a look how we finish on wall street across the board off the session lows dow down 2%, s&p down 4 nasdaq the worst performer down just over 3%. >> everything got swept up in the selling growth, value, cyclicals. let's go back to mike santoli tracking buybacks. mike. >> hasn't been too much to talk about on this theme, such a big issue for years now. lululemon restated its buyback

program yesterday. kind of got us looking exactly what the volume has been new buyback, look at this, year-to-date, way, way, way below where we were. average of last three years right here, 2018 after that big corporate tax cut was passed the record in terms of buyback volumes. what we're seeing obviously is companies are much more careful how they spend their cash. banks forbidden to do buybacks for the time being energy companies are big buyers of their own shares or have been in the past. essentially everyone is conserving capital, not spending it on buybacks here is buyback achiever etf relative to u.s. stock market, s&p 500. this is over the past two years. a couple to pointout massive performance gap here largely sector based, a lot of financials there shows you on the upside wasn't heavy buyback companies leading the way. participating the upside i think it's been overrated as a general market boost in terms of

the buying power of share buybacks but for individual companies and sectors, a lot of them it was all they had in terms of demand. sort of winners an losers story, naturally companies like apple have never slowed down they are the exception this year to the rule. >> i know. that shows you it wasn't a huge help in the 50% runoff we saw off the march lows what about dividends as a use of cash have they been hit as hard as buybacks >> on net they have declined, yes. not radically so dividend yield in s&p has gone down but not notably i do think, though, what you are seeing is high dividend yield stocks that show suspicion that the companies can cover them exxon pushing 10% dividend yield. that's because the market said we don't think that's a reliable one. it's really kind of haves and have not story in dividend land. >> mike, it's interesting as it

relates to kbw bank on 4% dividend yield, the buybacks are double that on top, not being permitted at the moment. i wonder whether a small dividend increase would actually hurt rather than help compared to the day when buybacks are allowed again and sort of opening the flood gates of purchasing back stocks it's kind of an interesting balance when you think it through this stage >> i think to your point, i don't think small, marginal difference denld would be a catalyst for demand for these stocks right now people are certainly chasing yield in some areas but it's not necessarily in the high nominal dividend yield stocks. almost all of them are perceived to have decent amount of downside in price whether that's true or not. >> all right mike, thank you. see you in just a bit. still ahead on the show, we will ask sales force ceo marc benioff about how the coronavirus pandemic has sparked enterprise spending and whether he thinks

the work from home trend will continue after the crisis ends after the break, tony yedwr gives his thoughts on selloff, using it as a buyback opportunity. we'll be right back. that's what my dad does. good job, michael! ok, lindsey now tell the class what your mommy does... my mom has super powers. it's like she can see the future. what?! it's like she time travels in a rocket ship. that's cool! and then she comes back saying "try this" or "try that." she helps everyone. she helps them feel less worried. wow! mommy, so what is it that you do? i'm a financial advisor.

she is! aig proudly supports all the professionals taking care of our financial futures.

it was an ugly day on wall street, stocks losing steam throughout the session and dow giving up early triple digit gain we swung more than 700 points. a look at the dow's worst performers, all the big winners, salesforce, chevron, apple, boeing, microsoft. i guess i would take exxon out of that. but crm, salesforce up and chevron even though hard hit today. >> for more bring in steve strategist, tony dwyer good to see you as always. gauge for us what stage we're in of the pullback at the moment. >> corrections only seem natural, normal and healthy before you get them.

everybody wants a correction before they happen feels good when it goes up when the market begins to crack you find reasons the excesses are starting to come out it could be the political environment, which as you know is total guesswork covid-19, second wave, is it already happening. can it be the chinese tensions it's all of those things we as you know, from when we've been out, like everybody else, classic strategist looking for a correction, it's what you do wit. the fundamental thesis we have with combination of historic excess liquidity and synchronized global recovery, we want it -- the down 10% is not the time to get negative could it go down another 1 or 2% i've proven over time i'm not great at calling the bottom. i can identify when you've already been down quite a bit and i think it creates an opportunity. >> an opportunity where specifically, tony in the growth names that have led us higher or in some value

names that we're just starting to pop, see a big recovery. >> the last time we were on, sara, as you know we took down -- we suspended our target because five stocks made up the majority -- not the majority but a very large part of the index it was dominating index but infinity fed so there was such excesses in those megacap work from home, stay-at-home stocks. as they are going up, nobody cared about the excesses because it felt great. everybody trading options. it's just making a lot of money. but as you know, our call was to reduce excess exposure in those stay-at-home megacap names in favor of the economically sensitive names. i'm kind of neutralizing that because of the beating those big megacap names have taken because they are still cyclical and good companies. i just think this is one of

those times you want to look at the broad economically sensitive areas. remember, it is so important that we are having a synchronized global recovery, intermediate to long-term indicators are not suggesting we go back anywhere near where we were so in our history shows that you want to use periods like this to add into risk exposure as long as you have money availability, which it's still historic. number two, you have economic increase. >> tony, how closely are you watching things like the dollar and gold in their own right but also what they imply about s&p 500? >> wilf, that's a great -- everything that worked isn't working. the megacap stocks are getting hit, the dollar is having a reflex rally commodities and gold are under pressure so i went back and looked at dxy, u.s. dollar index symbol. i went back and looked, there's

four periods where we had this kind of excessive weakness from peak to where we recently. all these periods you go down double digit percent within that you could have 3 to h had percent counter-trend rally. similar to how gains out of the stock market, i think we're also correcting the excessive near-term weakness in the dollar in other words, just a counter-trend move from here again, you should -- who knows if it lasts another day or couple of days but at some point you're going to work through that strong dollar and go back to the underlying trend that was in place for the last five or six months. >> tony dwyer, thanks so much for joining us. >> thank you, wilf. still to come, salesforce chief marc benioff if he thinks economic recovery and job market put at risk if congress fails to get more stimulus across the line the payment companies, visa, mastercard, american express, square, paypal all taking a leg

lower for some big winners year-to-date we're back in a couple we are hoping things will pick up by q3. yeah...uh... doug? [ding] never settle with power e*trade. it has easy-to-use tools and some of the lowest prices. don't get mad. get e*trade and start trading today.

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

welcome back time for a cnbc news update with sue herera hi, sue. >> hello, wilf hi, everybody. here is what's happening at this hour federal investigators are looking at whether the massive bobcat fire in los angeles was started by utility equipment owned by southern california edison the bobcat fire has burned more than 113,000 acres. a new poll showing president trump and joe biden are running neck and neck in the battleground states of florida and arizona. the reuters study shows voters in those states also split on which candidate will be better

at handling the pandemic. a new york judge ordered president trump's son eric to be deposed by october th for an investigation into financing for properties owned by his family's company. and canada's ruling liberal party is promising new pandemic recovery programs, including plans to empower women and battle climate change. the liberal party said it will extend wage subsidy program until next summer. you are up to date that's the news update this hour sara, i'll see you tomorrow. >> all right see you then sue, thanks. up next we will discuss how volkswagen's newly ueinvled suv stacks up against tesla and its potential for becoming a mass market vehicle will we'll be right back

i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn. i feel hopeful about the future now. ♪ not a great day if you're an investor in the electric vehicle

companies. they got slammed tesla tanked during yesterday's battery presentation more pain for nikola which lost 26% on top of the lossesulatesly volkswagen looking to gain a foothold into the electric market phil lebeau. >> we've said for some time, just wait. eventually we'll see evs in the market this is first truly mass marketed, ev volkswagen, all electric small suv goes on sale here in the spring, starts at just under $40,000, add in the federal tax credit, around to $32 grand. the range of 250 miles has some people questioning whether or not that's enough range. the head of volkswagen usa says he's not worried >> we feel we did the right package. to go get 300 miles and add another 15,000 made zero sense you end up carving away a massive portion of the market. that's not what we wanted to do. >> scott keough says they are in

the sweet-spot of the market when it goes on sale, they expect big demand. if you look at shares of volkswagen, keep in mind this vehicle will be built at the volkswagen plant in chattanooga. they are making the commitment and big push, beginning of big push for evs for volkswagen. >> see how that goes, phil suv felt like a generous description. >> small suv you might want to call it a crossover. what is truly an suv these days. >> exactly anyway, thanks so much for that, phil lebeau. salesforce shares up more than 70% since the end of march in part because of the increase in remote work. up next we'll ask ceo marc benioff how the company will be paedimct if workers are brought back into office back in a couple minutes don't go anywhere.

♪ ♪ ♪ ♪

shares of salesforce have been on a tear of 68% in just the last six months. though under pressure today with the broader market, the cloud giant getting a boost from the work from home trend and surge in enterprise software needs joining me salesforce marc benioff. mark, great to have you on the

show welcome. >> sara, always great to be with you. how are you doing? >> i'm doing okay, although starting to get concerned here the market wobbled again you've had a pretty good read on this crisis and how companies are planning what's your level of concern about a second wave and the potential fallout economically of a second wave. >> sara, we've been talking about this now for months. we are in an unpredictable time. there's never been greater uncertainty in the entire world. you have a global pandemic, you know that very well. you have global economic crisis, racial justice, global leadership crisis and global environmental crisis they are all happening simultaneously so yes, there's a lot of uncertainty in the world that's why we all have to really focus and get really clear about what we want right now and how we succeed through these times this is a time you can no longer

do what you were doing six months ago you have to do something totally new. if you can do something totally new, you can have tremendous success. i think salesforce is now an example of that success. you saw we delivered a 29% growth quarter it's amazing that followed a 30% growth quarter. we had record margins and also record large deals it was amazing how many very large transactions we're able to close during that time ultimately i'll tell you, sara, this is about helping our customers succeed and helping them thrive during this time it was a 63% increase in seven-figure deals for our quarter, and it's really because the largest, most important companies in this world, they are all making dramatic changes and we're there to help them connect with their customers in a whole new way. >> no question you've been in the sweet-spot for enterprise software spending and work from home and the shift to online

marc, does it feel like it's being pulled forward or that level, those numbers you mentioned sustainable for a longer period? >> sara, we have talked about this you're in your home. i am in my home. >> correct >> digital, i was talking to the producer they are adjusting my camera, doing my licht i'm at my professional studio in san francisco, i'm in my own we're in a new digital world, in an all digital world the past is gone it's not coming back you know. we are not in the future, we are in the present moment this is a be here now moment everyone needs to realize the past is gone we're now in this new digital future and we need to rebuild our companies, our organizations and ultimately we need to rebuild ourselves to be successful in this new digital future i'll tell you i just had a board

meeting last week and a board egg -- measure and they were talking you know how great zoom is, zoom ipo and zoom is really the future, isn't it, marc i said, zoom isn't the future, it's the president clinton i'm on zoom right now doing in interview. we're in a new world this is our reality. we need to all make changes and we need to make them now, because this is not going to shift any time soon. if we're going to succeed through this, we need to realize the past is gone. >> i mean, you're right. i am in my bedroom doing my show. >> i watch you every day this is amazing. >> i hope to get back is the point. i'm wondering how long you think work from home is for here or is it permanent some ceos say it's bad for culture, but other ceos say it's good for flexibility and

work-life balance? >> sara, we're never going back to how it was. i can tell you what it's like, all our employees are home even in countries where it's open, employees don't want to come in. they have reskilling engine call trailhead.com. they've reskilled themselves they use our tools we have a tremendous salesforce automation tool that lets our employees sell to our customers remotely, digitally. our sales cloud is why we have tremendous sales productivity and success. our service cloud is why we are having tremendous ability to service from anywhere. we can market from anywhere. the reason we're the fastest-growing top five software company in the world is because we use our own products. this is just a minute in time where i'm like, wow, i didn't see this coming. nobody did

but now that we're here, we have to rebuild ourself and at the same time we have to also augment for our customers what we can do like we are doing now contact tracing for thousands of companies. we run this pandemic response management for 35 states we didn't have a pandemic response capability six months ago. now we have to have it you know, we have to be there for our customers to help them be successful whether they're a public sector organization or whether they are something else. this is the moment where we decide if we are going to be successf successful, we can create the future that we want. >> so, mark, you joined the dow, you put out this banner quarter. then it was reported that you were laying off 1,000 people you took the pledge to not lay off anyone i know since then you've announced you're hiring.

clear this up for us about what's going on inside salesforce and really how you think about that tradeoff we're seeing i know you are the poster child for stakeholder capitalism but we're in a time now where companies have to make layoffs and adjust their businesses to right size it for their environment. >> we're not right sizing. we're growing. we have 54,000 people. we're going to hire 4,000 in the next six months. but we have notified a thousand existing employees that we're going to help them find new jobs either at salesforce or at another company because we know there are jobs that are no longer relevant. while we did say for the first few months until we get our sea legs we're not going to make any changes. now we're saying we are actually going to make a lot of changes so we can be as successful as we possibly can we will hire 12,000 people over

the next year. the vast majority of people that we have notified will find jobs in salesforce or in our ecosystem. that isn't a question. the real question is, how fast can we grow and where can we go to be even more successful now. >> mark, thanks so much for joining us in light of tiktok/oracle deal not necessarily needing to comment specifically on it, was something needed to be done to protect the data privacy of tiktok users in the u.s. was that privacy at risk >> i think that the geopolitical landscape is unlike anything i've ever seen in my career. you have three major forces underway in the world and specifically the united states that everyone is responding to one, you've got massive liquidity come into the system it's unprecedented two, inequality is raging.

you can see that at a much higher rate than ever before it's a k-shaped inequality that people who have hard assets like stocks or reali estate, they're going up and people who don't have those hard assets, they're going down. that is the new dynamic in the united states. it is also impacting all countries globally you're going to see lots of things happening, but the number one thing that every customer has to do is make these adjustments to prepare how they're going to run their business and succeed through them if they don't make those changes, if they think the past is coming back, if they are like ready to head back into the office, they are making a huge mistake. we are in this pandemic until 2022 there's no question about it so we need to make those changes now so we can go faster. >> i love how fired up you are and i do want to directly ask you about oracle, because they

are a big rival of yours do you wish you had made a play to have the cloud contract with tiktok and do you think it's a big win for them >> well, you know that larry ellison is my mentor he was my first investor at salesforce he was my first board member there would be no salesforce without larry ellison. i am absolutely indebted to him. i'm very grateful to him we're very close friends larry has a huge vision for the world. he is an incredible executive. you should never cellar sell lay ellison short. look, i don't understand everything that's going on, but wow, i'm so impressed by seeing them and everyone else make these aggressive moves, because i'm mostly worried about the companies that aren't making aggressive moves i'm calling cos who are friends of mine who are in paralysis and aren't making moves. i'm saying, look you've got to

get out of paralysis into participation. you have to become relevant. larry ellison is the master of relevance. this is a move to make him relevant he's giving you a master class in relevance three, you have to enable your organization in new ways let me tell you, we're having weekly all-hands calls with tens of thousands of employees every single week. we haven't done that since we were a startup because we have to enable people in new ways these ideas, participation, relevance, enablement, this is what we have to be focused on the we're going to accelerate and go forward then we have to deliver the tactical plays and success stories to make it happen. i think some companies are making that happen and some companies are sitting back and being too passive. you've got to look at both of these organizations. >> mark, we're out of time it's great to have you on the show >> thank you

>> chairman and ceo of salesforce, mark benioff i wish everyone was that enthusiastic to be on our show. >> i quite agree

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.

the dow closed lower today by 525 points. every sector got hit in the markets. mike, what are you going to be watching tomorrow as we try to distinguish the winners and losers here? and there were some winners like a zoom or a docusign or a salesforce how do you pick the winners? >> i think right now, to be

honest, it's about how the very largest index names behave we might have been saved by the bell, so to speak, at the close there. as i looked at the numbers afterward, it was a pretty good rinse we got in the afternoon, the one-directional selling. we'll see if it abates in the morning. maybe you can get a low tomorrow morning. i'm melissa lee and this is "fast money. tonight's trader line-up guy adami, tim seymour, karen finerman and steve grasso. we are charting this selloff plus, a metals meltdown. gold getting crushed in today's session. later a rare green spot in today's sea of red the one tech name that was a true high flyer. we start off with that late-day selloff. stocks getting smoked in the