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quite a rally building this afternoon. seema mody with the numbers. seema? >> good afternoon. those spending talks remain front and center, especially encouraging comments from secretary treasury steven mnuchin. we're looking at the dow industrials currently up about 493. at the high today we were up at 514. the nasdaq higher by close, s&p

about a 9% game from the sector perspective. big winner, consumer discretionary, up 16%. the biggest loser, energy continuing to be the dog not just for the quarter but for the year, down 20% kelly, back to you >> yeah, it's been such a rough go there lately. seema mody, thank you so much. the federal reserve seeks no real interest rate hikes until at least 2023. seems like a goon the day when the market is up

461 points, it looks like, on my screen right now how much concern do you have that the feds promises to remain a accommodating for many, many years in the stock market and the bottom market. >> i'm worried if we keep rates at zero for longer than we have to that it forces people out on the risk curve and they've got to take more risk. you can't have money in savings, you can't have money in bonds, by and large, especially shorter bonds. and i think we saw a little bit of this in march in that part of the selloff in march was covid related and lockdown related, but part of it was some forced selling in risk markets because people had too much risk on. and that's what happens, and that's the danger. if you go for a prolonged period of time and you get excessive

risk taking, when the markets do go down, it can be more severe and destabilizing. >> is there a concern about that right now given the levels of the market >> i'm not worried about monetary policy or the things we're doing. obviously we're doing extraordinary actions, not just the fed funds rate but also what we're doing with the 13 free programs and the asset buying. i think we need to keep the fed's fund rate at zero. possibly two or three years, could be that long, until we get on track to have weathered the crisis and are on track to meet our full employment and price stability goals. my dissent is about making commitments beyond that point, and i think beyond that point, i would rather see us keep some flexibility. >> so let me follow up on that when people tune in to kelly evans and "the exchange," they

know they'll get a serious discussion of federal reserve policy so, president kaplan, can you explain your notion in your dissent or in the essay you wrote about your dissent, how it is that the fed, if it stays at zero while the economy improves, the fed actually becomes more accommodative as the economy improves how does that work? >> in the midst of the height of the covid pandemic, the neutral rate, the equilibrium rate, drops. maybe the fed fund rate was 2 and a quarter, and the fed rate drops. what happens is the fed needs to take a course of action, and we did drop to zero among other things in order to help dig us out of this hole that's been dug

not only are we not taking our foot off the accelerator, but we're actually depressing the accelerator and increasing accommodation as we move toward meeting our dual-mandated goals. what i'm saying is i don't know if that's going to be appropriate. historically it wouldn't have been with the new framework and our

inflation targets, i think we're going to be more accommodative than we have been in the past, but i don't know if we want to commit to keeping rates at zero until we meet these targets because the amount of accommodation is going to be widening, and i don't know if that's going to be appropriate >> that makes more sense, mr. kaplan it's kelly here, and we appreciate the explanation it raises the market's broader question about the fed's communication here and what's going to happen over the next few years. so your colleague charles evans last week said we could raise wc

i hope remains, is disagreement and debate and airing it publicly i don't think that's a bad thing. i think that's a healthy thing, and i think we make better decisions. in terms of clarity, i think the markets and the public have pretty good clarity right now. the markets expect that the fed if you understa fund's rate is going to stay at zero probably until 2023 the summary of economic projections we just submitted, the median dot among fed presidents was zero through 2023 i'm a former businessperson. i think that's pretty good clarity. if there is a debate we're

having about what we're going to do beyond that point, i think it's reasonable to be debating that, i hope we continue to debate that. i think it's a healthypasses, tt

is one less wrinkle, one less uncertainty when it comes to the equation lastly, it comes down to is the economy starting to see

improvement and therefore earning divisions start to see improvement and they hold up >> tracy, i know you were also listening to the secretary's comments, and people start trying to piece things together like, maybe after the debate, he had to come out more forceful on the markets. i don't know about cause and effect there, but would you place a lot of

it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya.

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was the giant corn maze of capitalism that describes the former layout of these stores. so, seema, here's a question if that was working for them in terms of a business model in the past, if they lose some of that serendipity, that whole, hey, i

got lost in target so i bought a candle and pillow. we're talking about walmart here, but are they going to give up some profits? >> it allows more people to come in the door, maybe clientele they had access to in the past because now the store is getting revamped, it's easier to get through, that efficiency is now being tied to the walmart experience it could certainly work. if you look at what walmart has done the last couple months, it seems it's really starting to think about technology, whether it's walmart plus to compete with amazon, the addition of tiktok you have to think they're really trying to transform walmart. it's not really your father's walmart. that doesn't seem to be the case let's move on, talk about new york city being the work capital from home. only 10% of workers are back, according to some new data

and dallas and los angeles have 40% and 32% of workers back, respectively the suburbs are in the range of about 32%, mike, but this has big implications for the future of new york city >> it does certainly if this doesn't change, if we don't get some kind of advance that's going to aly lou peop allow people to feel comfortable going into a city that people had converged on it to work with public transportation. those things need to come back more in terms of normalcy. it's the elevators, it's the trains, and it's also a sort of bias of testing these limits just because it's been so hard in the spring. >> let me throw a curveball here, guys palantir is open for trading let's show on the screen exactly what's happening here. the reference price last night was $7.25. it looks like it was going to open around $10.

we're at $10.50 right now, so about a 45% gain for palantir. this is a direct listing it's the second direct listing today. asana was another one. morgan stanley and citadel are the book runners they often take longer than the particular ipo process to find a buyer because they're not working the night before to make sure there is kind of that book of demand lined up and ready to go so, again, not necessarily raising new capital for the company, allowing existing workers and shareholders to cash out. so the shares are up 42% it's been a long, but not unexpectedly long, process to get this stock open today. we are actually going to be hearing directly from the ceo of palantir in a couple minutes' time he'll be joining us in a cnbc interview. in the meantime, we have

edley -- i'm sorry, we have leslie, whose name sounds like edley -- picker is here. >> opening at $10.50 a share that's the reference price it's important to know that what a reference price means in a direct listing, that's essentially looking at kind of the average trading going on in a private secondary market to determine that so it's incorrect to necessarily say it's up from its reference price, because money wasn't exchanged hands in the way that an ipo would be allocated at that price $10 a share is where morgan stanley, according to the "wall street journal," was informing investors kind of expected the floor around $10 a share that story was published last week, implying a $10 billion investment on the surface. so that is with regard to where this thing could open for trading today. what would be worth following up

on is where it closes today relative to that $10-per-share opening figure right now we're looking 40 cents above that, 50 cents above that. that will be worth paying attention to, as well as the volume, as well as the float with this direct listing, compared to previous direct listings of spotify and flak, is that they actually do have a lock-up. that's one of the big list factors that previously they didn't have these lock-ups, so it's uncertain who might sell in the first day of trading because the company isn't listing a primary stock, so it's all dependent on current investors to be willing to sell their shares and that market has to be the right price for them to actually do so. palantir did things a little differently. they actually locked up about 80% of current investors' shares, so only 20% became available to trade today which could impact the kind of supply and demand dynamics that you see with traditional ipos, kelly

>> yeah. leslie, stay with us mr. edley has mentioned now, a 20% price gives them valuation leslie also mentioned the walk-up period, so that could be considered one overhang on the stock for the next few months. we lost ed mike santoli, i'll turn back to you. what do you make of it >> i think you could consider this a success in terms of how direct listings work you don't necessarily want to see it fall through that kind of benchmark price that the advisers were looking for, but you also don't tend to see the energy built up for some kind of a pop, because you weren't trying to get more demand than really was able to be supplied with the offering. so it seems like it's pretty much on target 22 billion is kind of fascinating. because it's a relatively mature

business, it doesn't seem like u it's that big anymore. i know that tells you where we are in the cycle, but it seems like you could say this more or less went a kroccording to scrit >> ed lee, third time is the charm here give us your opinion as the stock opens for trading. >> that's what they were hoping for, they were looking for the $10 range. i guess you could chalk it up to say the direct listing sort of worked in their favor. i'm actually a little bit surprised that investors have this much appetite for a company that has such an unusual control structure. they got this far, so i guess there is management and control, but i would want more ownership of the voting rights, really, ultimately >> i wonder if it's a difference

in business model. palantir does a lot of work with business, and it seems more reliable than if it was a consumer app >> that's true however, it also calls attention to certain risks this company might face amstar with a report raising questions of whether they would work directly with i.c.e. which comes to abuses of people working for asylum in this country. they didn't request our question seeking comment, but it certainly raises the point, yes, it's stickier, perhaps, because it's something where they go to the government, the government starts to rely on their software to do business they valued those contracts at one point at $1.2 billion for doing business with its

government and its allies, but you have that overhang as it pertains to privacy, as it pertains to human rights those are the things you kind of have to balance when you look at this company >> ed, i'll give you the final word here. maybe the direct listing models. we've had about four major direct listings, two of them today, palantir and asana, and last month, flak and spotify what do you think this will do for other companies pursuing going public now >> it's better for current shareholders and you're not paying hunger for new issues right now in a low interest rate environment. we're living this new powell mandate world where interest rates will stay low for a while even if unemployment starts to creep downward it's to your benefit, right? you might as well take that as long as you don't have to raise money.

at one point leslie said, and i agree, that there is this asset ere they've got built-in contracts with the government, but it's a little bit about -- what if the pentagon says, hey, palantir, you need to be exclusive with us. with other private entities. that's another potential overhang, i think. >> fair enough still investors looking passive for the time being the shares over $11 in trading which began just a couple minutes ago. leslie pick er, ed lee, thank yo very much. andrew sorken will speak with the ceo in an interview "the news with shepard smith" tonight at 7:00 p.m he'll tell us the guests joining him. "the exchange" is back in two minutes.

welcome back let's check on shares of palantir just a couple moments into its debut as a public company. they went the direct listing route. they're up 54% from the reference price they set last night. that was $7.25 a share we opened at 523% ga3% gain. coming up shepard smith will talked to you about what to expect don't go anywhere. ♪ you make my heart sing ♪ ♪ wild thing i... think i... you know what i think? i think you owe us $48.50... wild thing. if you ride, you get it. geico motorcycle. fifteen minutes could save you fifteen percent or more.

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welcome back to "the exchange." it's a being day here as we launch or new show, "the news with shepard smith." in fact you and the team have been working around the clock for the show launch, and what a day to launch. there's no shortage of news you guys will be exploring we just got news from the commission on presidential debates, they might be changing -- you talked about it this morning, but i want to go into what you'll talk about tonight. >> frankly the debate. you mentioned the commission on presidential debates they have just announced they'll

make change to the format, because they have come to realize the debates need agents more structure it's been described in many different ways the vice president -- vice president biden, that is, declared it today a national embarrassment. think of it what you will, it's part of the news tonight we'll have a presidential historian on, nbc news mike a at beschloss, and we'll talk about that as we head toward the vote. a lot of coverage on covid it's surging in many parts of the nation in new york city we're starting indoor dining. we have a surge happening in the out are boroughs in brooklyn and queens the doctors have been telling us that covid is going to surge come the fall, and sure enough, it looks like there are signs, at least, it may be upon us. >> i know. i'm hoping it is less deadly this time. that's a small, small comfort, but it's something maybe the hospitals are more

prepared, we don't need the shutdowns, but it's scary. shep, one follow-up question, if there is the ability for debate moderators to cut the mics of participants, that could also backfire in a big way on the moderators this is tricky, i don't know >> keep this in mind, the next debate is a week from today. that debate is a town hall style debate, meaning there will be people asking their own questions, and a mods rater will kind of keep the candidates working in a different sort of environment. last night was -- it was chaotic. we have never seen anything like it we'll try to put it in context tonight. we're not beginning tonight like a usual newscast might, because that was not a usual event in addition we're covering covid, we're covering racial injustice, covering income

disparity, and further, we have a segment every night from cnbc called "on the money" where we'll talk briefly to a sort of general news audience about money and what's happening from time to time we're going to call out the shiny object. you know, a lot of time business leaders, politicians will give you a look over here, look over here, when there's something important they don't want you to notice we'll point that out from time to time. it's a general news program bringing you the facts, trust and news every weeknight right here on cnbc i'm so excited >> kind of old school. >> hopefully. >> i know when we spoke a few weeks ago, what was on your mind today, and it was covid, stimulus talks, all this stuff, and you said water, i mean, you know, the wile fires we have given very little attention to, because there's so much else going on that, to me, is what i'm looking for. >> they haven't ended.

the wildfires haven't ended. the recoveries in louisiana from two hurricanes ago has not ended. there are still people who need shelter. there are still people who are trying to escape covid as they don't have a house to go to, because it's flooded out or broken apart and on the ground i've been doing this for 33 years. there's never been a news cycle like this. it's really not about statistics, it's about human beings, and a lot of them are suffering. and there are heroes amid that chaos, and we'll find them too, kell >> and you're the consummate storyteller as well. a pleasure to have you here. we look forward to it tonight. >> thank you. tonight 7:00 p.m. eastern time, the debut of "the news with shepard smith." palantir, 55%, a whole lot more next hour, including an interview with alex karp we're very much looking forward to that. stay with us

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