for earnings. >> yeah, as you say it is all about -- >> folks, that does it for "power lunch." go ahead, finish your thought. i'm sorry. >> it is about what the expectation is on wall street. as you say, profits may be down, but better than what wall street expected that could certainly give a lift to the market here tie. >> seema, great to be with you today, appreciate it it is time now for wilf and sara, and the kbel. >> tyler and seema thank so much welcome to the "closing bell," i'm wilfred frost aloong with sara eisen stocks surging to open a new week of trading the nasdaq up a 3% move heading into the final hour of trade. tech stocks leading the gains ahead of a massive week for the sector apple's big product event and amazon's prime day both kick off tomorrow it is a new week but stimulus still a major focus for investors despite pushback from nancy pelosi and republicans on the latest offer from the white

house. and banks ahead of a slew of earnings reports today jp morgan and citi tomorrow before the open. 59 minutes left in the session sara and we are higher across the board. the banks stocks up close to 3% for some of them 3% up for the nasdaq. best day for the nasdaq since april. coming up, the ceo of ho logic plus we will speak with the council on foreign relations richard haas about how the handling of the pandemic in the united states is being viewed by the rest of the world and how it influences geopolitics first an update on the stories we are watching. mike mike tracking the market action, ylan moi with the latest on the stimulus negotiations and more on the coronavirus treatments mike, what is driving this rally? >> good question is it possible to have a low volume buying panic?

that's a little bit what it feels like today certainly the nasdaq doing most of the work. the big cap tech stocks. look how it aektsds affects the 17ds it looks like an acceleration higher out of the trading range we have been in let's say about five weeks we were also in a trading range five weeks there and then surged out of it there for a while. did not get right back to the old highs, less than 2% from the former sighs of september 2nd. that's a steeper push out of the trading range. it suggests little bit more of an emotional grabby type action. look at the breakdown since that september 2nd high of various parts of the market. what you saw most of the past few weeks is a broadening out of the rally cyclical stocks like industrials and financials, outperforming since september. look at this surge of the nasdaq 100. coming back right back to where

it was before. this was not a continuous rally today from what we have seen from the past couple of weeks. this seems more like that augs-style option trading driven big cap nasdaq moves of yore look at the semiconductor index. what i wanted to opponent out here is this gap between the price and the 200-day average is basically what it was back at september 2nd. it's always a good thing when semis lead in the macro sense. however things can be outdone. keep an eye on that. that gap is bigger than it was in the february peak things are running hot in this market already even though the s&p hasn't gotten back to its all-time highs >> looking what the is working technology is front and they are today. communication services, information technology and consumer discretionary with amazon, they are in f.a.n.g. last few weeks we have been watching the rally in energy and financials and industrials as hopes built for stimulus

those are on the back burner today. it feels like the market goes up either way stimulus negotiations, betting on that or not it's just different leadership. >> that's the way it is acting so far, sara that's right the market seems to -- either people feel uninvested we are releasing some of the tension that built up ahead of the election for months. it is taking its form today in the form of buy the old growth stocks i think it still has the chain reaction from the speculativization we have seen from some of the glamorous stocks and the calls there and investors having to move those stocks a little bit. i don't see that it is on/off based on stimulus negotiations. >> thank you for that. on the topic of stimulus, let's check in and see exactly what we can expect moving forward. ylan moi has the latest for us from washington. >> as washington turns its focus

to the supreme court, president trump is urging lawmakers to stay on stimulus today he tweeted that democrats got too much time to talk during this first day of confirmation hearings personally he said i would pull back approve and go for stimulus for the people but the negotiations over another round of relief have hit yet another wall nancy pelosi called the latest offer grossly ined adequate x. the house is telling lawmakers not to except any votes this week which means even if a deal were to be struck they couldn't pass it very fast. senate republicans are raising objections of their own. they don't like the $1.8 trillion price tag on the white house's latest proposal. they are also objecting to sending more money to state and local governments as well as extending certain health care tax credits. now the white house is pushing for a renewal of the paycheck protection program to help small businesses while negotiators keep working at the bigger deal. guys we know that democrats are

not going to go for that as pelosi said, we remain at an impasse. >> ylan, is stimulus straighted from the supreme court nomination do we expect the latter to get done before the election >> i would expect that the latter in terms of the supreme court nomination will pass before the election. but the two were actually very much comanipulatingeled today during the confirmation hearings where you heard democrats just sort of going after republicans for holding these hearings and not taking up a stimulus package whereas republicans said that's exactly what they plan to do because they feel like that's an election issue winner something they though they can do before election hits rar than getting myered and stuck in the ongoing debates over the stimulus even though the president says that's one of his priorities right now. >> i think it is weird that they don't think that sending checks to americans, poe lengthsly $1,000 to americans and more

unemployment benefits is an election winner. >> i think that has been a challenge for republicans. there has also been some discussion about exactly who would get those checks, sara there are details of that. there are questions, do you use a social 1-800-743-cnbc? do you use a tax id? could undocumented immigrants get some of the money. details are in flux here and the level of unemployment benefits as we have heard on and on again, how much would people get, for how long? would it be more than they would earn before they were back on the job? these are the intractable questions that haven't been answered. >> thank you. now to the coronavirus and new headlines on the treatment front. astrazeneca striking a deal with the government for merely $5 a million to develop its own antibody drug. >> this is another of the drugs in the antibody class we have been talking about since president trump was treated with

regeneron's antibody cocktail. this is what astrazeneca is calling a long lasting antibody combination. they say they are just a few weeks away from starting large late stage clinical trials of these drugs actually as prevention looking at one trial to prevent disease up to 12 months and a second trial to use as prevention for people who have had exposure to covid-19 now the government paying $486 million to support development and supply of 100,000 doses of this antibody drug astrazeneca says it can start supplying that, it thinks, toward the end of 2020 of course they need to get through phase three trials and the regulatory process regeneron and eli lily filed last week for emergency use authorization with the fda with other companies are in phase three trials for their answered boat for covid-19 this class is a big one. we should be hearing more news

soon probably on these fda applications >> the more the better when it comes to the antibody treatments the problem -- we talked with the former fda commissioner about in on friday is that there is not enough supply of them i asked him, do we need billions of dollars from operation warp speed? how do we fix it he said we are late on it. it is going to be late we need it now for severe cases for preventative cases for a potential vaccine alternative. but just don't have what we need is that what your reporting indicates? >> yeah. we know from regeneron they would have 50,000 doses on hand if approved right now. eli lily would have 100,000 dose force the month of october it is not going to be enough right now the data we have seen on these drugs is only in specific patient populations and people who were recently diagnosed with covid-19 as a treatment for them i was talking with a doctor from

the fda today. she's overseeing erpt thattics development as part of operation warp speed she said it would be unusual for the fda to clear something for an indication we had not seen the data in yet. the data are limited to that patient population but you are right, the supply is limited these companies are working together in unprecedented ways to do manufacturing for one another. still, at the beginning it is not going to be enough. >> megger theel thank you. after the break we will speak with council on foreign relations president riched haas about america's response to the pandemic so far and the impact it is having on this country's standing on the world stage. you are watching kbel. the dow is up 300 points

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richard haas joins us now, president of council onforeign relations, author of the world arc brief introduction richard always good to have you on the show. thank you for joining us. >> thanks sara, good to be back. >> it is almost hard to believe. it's been just over a week now since president trump was diagnosed with covid-19. how do you think the world leaders, both allies and adversaries are reacting still to the shocking news that the american president got it contracted with a potentially deadly virus >> i don't think it is so much that the american president came down with the virus. that happened to the british prime minister and others. brazilian president. what is stunning is the context in which it happened the carelessness the disregard for all the best advice from the experts in the

context of the united states unfortunately leading the world in deaths, roughly 4.5% of the world's population, and 25% of the world's deaths so what this does, it reinforced impressions around the world of american incompetence and that there is something seriously wrong here >> yet it is a lot of the american companies that are coming up with solutions as we have been talking about, whether it is treatments or vaccines do you think that changes the dynamic at all, the fact that a lot of the american ingenuity here is working overdrive to fight this thing >> for sure. it shows, if that happens either on the therapeutic side or the vaccine side, it's obviously to the good it is interesting, sara. one of the things people often say about endia. there are two indias the modern, high-tech middle class india that's wildly

successful there is this other india of enormous numbers of people in real poverty in some ways there is two united states the great universities, the great research, the great corporations but then, but then, but then we have this other reality of hundreds of thousands of people dying from a disease i think, again, the two can coexist even though they seem contradictory. >> richard as we look at the election do you think america's policy towards china will change drastically depending on who wins are both candidates kind of aligned now? >> i wouldn't say aligned. but i think there will be more consistency in the policy than many people understand there is a relationship that has been deteriorating a long time there is diplomat skepticism about china's growing owe pregnant at home, growing assertiveness abroad what it did in hong kong, the mishandling of covid-19. the theft of american

intellectual property. i think it is a similar relationship going forward rals regardless who wins this november is this do you think it is heading for some type of more blatant confronting a? i mean there has been so much going on, on the tech side, on the virus side, on the trade front. how does it pan out over the next few years, no matter who is the president? >> look, the greatest place for confrontation would be military. it would be something in the south china sea or over taiwan then the challenge would be to limit any escalation more broadly, i think the challenge to the u.s. and china is how did we deal with the inevitable areas of disagreement, whether it is trade, whether it is geopolitics, whether it is human rights how do we limit them in a way that it doesn't preclude our ability to cooperate say on climate change or dealing with north korea's proliferation? that's the diplomatic challenge. it's not yet clear sara that both governments are up to that challenge.

>> is china stronger today than it was four years ago, or weaker >> absolutely stronger the economy is considerably larger its military is much stronger. so, no, you would have to say almost by any measure china is significantly stronger plus, it is coming out of covid-19 in relatively decent shape. >> if biden does win the presidency, richard, do you think it changes america's go at it alone type strategy do we become more multiple lateral? whether it is joining the iran deal or the paris climate accord or the world health organization all the things that president trump pulled us out of >> absolutely. i think you would have a much greater willingness to work with allies i think biden is part of the foreign policy view that allies and partners are a great strategic advantage and we should deal with the world with them rather than apart from them i do think there would be an instinct to re-enter all sorts of agreements and organizations.

that said, two things. a lot of these agreements and organizations are flawed the world health organization, the iran nuclear agreement, paris, the climate agreement even getting back into them is in no way an answer or a solution secondly, biden would face a country at home with massive challenges and it would be hard to give an international focus like he might want to because of covid-19, the unemployment, the racial divisions and the political divisions. >> richard haass, thank you for joining us. >> thank you. we have got must over 40 minutes left in the session. the dow is up close to 300 it was up more than that moments ago. as you can see significant gains across the board today up next it is shaping up to be a huge week for retail as amazon's belated prime day gets under way. what's at stake for them and other retailers. that's coming up next.

38 minutes left to go. retailer dillard's is one of the top performers on wall street today on news that ted wreshler investing manager at warren buffett's berkshire hathaway has taken a personal stake in the store. bought roughly 1.08 million shares b 5.9% of shares outstanding for dillard's. the shares will be held in a

trust on behalf of his family members. the stock is jumping, though it is a long way off from its heyday this is a department stock whose stock has been cut in half over the last five years. >> we were talking a bit offline, it is as much of a property play as opposed to being one of the great turn around retail stories as things stands. >> no sign of that. >> speaking with one of the great retail stories of the last decades, amazon is one of the big winners on wall street today as it gets ready for prime day, which kicks off tomorrow we have a look at what's at stake for amazon and other retailers. hey better that. >> thank to the covid pandemic amd amazon moved its summer prime day event to now it will serve as the new starting line for the holiday season in this unusual year. amazon expected to see nearly $6.2 billion sales in the u.s. from prime day, $10 billion

worldwide. that's up 10% year over year according to e margareter. so far amazon offered mostly discounts for its own devices. i just saw a deal on a television lightning deals are expected to start at midnight. target is going head to head with amazon with twice as many digital deals this year compared to last. and walmart launched its sale yesterday, including a 55-inch 4k tv deal for under $250. walmart's deal will run through thursday in fact betting it that it can take share because consumers have gotten used to ordering on line with curbside pick up. that's what walmart and target are hoping for, wilf, that they can take some share from am because people don't have to wait for that delivery that might be delayed with so much volume. >> all things considered in 2020

better that, it seems like everything will play into all of these names that you mentioned that have significant on line presences. i don't know if we can bring back the chart of recent prime days better that, what is expected this year for u.s. sales in amazon it has already grown so quickly over the recent years any gain from there is impressive into last year it did over $7 billion worldwide. it is expected to do 6.2 just in the u.s. alone that's a huge jump obviously, we have all gotten much more used to ordering everything on line, and having it delivered but the other thing that could really help this year is the fact that because we are home, a lot of us may not sneak as much to buy, right? normally when you are at work, you are kind of looking on your phone on your app, you might go to the bathroom or to the kitchen to do a sale now people might have both windows open at home because no one is looking over their shoulder. >> i love that

>> that's always the hot prime day. >> sara. >> $50 off the instant pot for a six quart. >> that's hot every year i feel like with more people cooking at home it is going to be the hot item again. i love how you had that off the top of your head. still ahead, shares of testing company ho logic are up 120% from the march lows we will talk to the company's ceo about supply, demand, and hologic's brand-new approved test for asymptomatic covid-19 carriers we'll be right back. we're excited to do business with you

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time now for daily coronavirus tracker. the seven-day average of new cases was up by at least 5% in 36 states and washington, d.c. as of yesterday. wisconsin, minnesota, and the dakotas, also montana, those were just a few of the 13 states that reported record spikes in average daily cases. carnival cancelling the remaining cruise that is were scheduled to set sail in november after the needs and prevention extended its no sail order for cruises until october 31st carnival cruises currently scheduled for december now for

miami and port ta canaveral are still on schedule. new research showing the coronavirus can survive up to 28 days on some common surfaces a peer reviewed study published in australia found the virus can survive on surfaces sore signature conditionally longer than many expected those it is notedest mo of the transmission is still believed to be person to person via droplets or aerosol. don't miss dr. anthony fauci on the nice with shepard smith tonight 7:00 p.m. here on cnbc. time now for a cnbc news update with sue herera hi, sue. >> hello wilf, hello everybody here's what is happening at this hour amy coney barrett telling the senate judiciary committee she is honored and humbled by her nomination to the supreme court. she says a justice must apply law as it was written, not as she wishes it was.

>> i believe americans of all backgrounds deserve an independent supreme court that interprets our constitution and laws asthey are written. i believe i can serve my country by playing that role. >> and a story about someone at the beginning of her journey as a lawyer and a mom. breonna hill was taking her bar exam when her unborn son decided it was time make his debut he will finish the first part of the -- hill finished the first part of the exam at home and then finished the second part at the hospital after giving birth. mother and son are doing fine. no word whether she passed the bar. should gettan a for effort can you imagine? >> not really. but either way i am sure she deserve as bit of leeway it is extraordinary she managed to finish it into i think, too. >> sue, thank you. you got it. with 28 left until the close

we are high across the board briefly all 11 sectors high in the s&p 500, materials just dipped back into the red. three other sectors up close to 3% as we stand communications services, and consumer discretionary. >> up next how a democratic blue wave could impact the market we'll be right back. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most plus $0 commissions

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we are back. stocks rallying for the fourth straight day the s&p 500 and nasdaq now only less than 2% away their record highs joining us with a look as what investors should expect heading closer to the election, jeff and mike. jeff, good to see you again. you have been looking at various charts for us. the first is kind of how the market has been reacted to changes in the polls as we approach the election? >> wilf, i think it is interesting because people get hung up -- obviously it's

motional but it seems more emotional and more charged this year than any other in my lifetime yet the market is figuring out -- i don't want to say the best case scenario but it is good at flattening out the worst case scenario. the yellow line is the probability of the democrats sweeping the house, the senate, and the white house. the s&p 500 peaked at the point where the probability of that was the lowest since then the probability has been creeping higher and the s&p 500 found its footing and said there are things we are worried about, other things we are not, but the potential for stimulus and other things the democrats might bring to the table is what the democras&p is figuring out.

and thinking not to get wrapped up in the emotional charge of the election. >> wait, so jeff all of that worry that was out there around higher capital gains taxes and higher corporate taxes, which both would influence stock prices, you are saying that was already priced in and the markets looked past it to good news. >> whatever the issue was at least looked upon as something that might be a problem down the rote further but the probability of something else coming in -- i would say stimulus, maybe it is more fed but that's what the market is saying, whatever that issue might be, it might be a 2021 issue or a back half of 2021 issue it is probably not at the forefront and the market is sniffing out something better in terms of its outlook for the economy and to obviously for its share prices your next chart locks at election year and election week volatility, what do you see

there? >> that's part of this the volatility, you normal low think volatility goes up into the election you can see that clearly that that happens and it continues to go up. historically volatility would be associated with downside moves we desegregated that and looked at upside versus downside volatility without getting complicate whd we found is that the mark's downside volatility peaks about here the volatility you see in the increase is upside volatility. become to the point about the worst case scenario being priced in, good things tend happen between now and the election and actually through the election into the end of the year and we find sharp ratios, all of these things that -- even though it becomes emotional it is a very, very good time to hold your nose and say whatever the case may be the market is reasonablebly going to figure it out. i need to not wait until after the election to invest but go into it and invest

i know that seems counter-intuitive. >> mike, as it relates to an election is there an outcome now that could spook markets or weirdly have we played through all the potential outcomes and now the market shrugged all them off? >> a hung election, one that is truly unresolved for a long period of time has gotten somewhat priced out at this point. it is kind of educated guesswork i think at this point. one of the things with an election is that almost by definition 47% are somewhat disappointed with an outcome last time we saw a 7% pullback after the election and it didn't look like much on the overall chart. >> what about technology in particular, mike is this do you think the market is underpricing the risk there especially after we got the highly anticipated

house anti-trust subcommittee report that showed that the democrats are going to be tough on technology and they are increasingly talking about structural breakups of the space. >> they are certainly talking more about it. i think it is come from both sides. but i don't think it would reach the top let's say three or four items on the priority list for a new administration if there was, indeed, a blue wave. yeah, down the road it might be refor he cancally something of a head wind. but it is hard to say that was going to be the initial push of policy coming after the election is to somehow go and break up tech which is multi-year, incredibly complex effort it is not just about saying it is going to happen and then getting it done? jeff let's move to the final chart. you have been looking at yields and the likelihood at that they continue their recent small rise. >> wilf, i think what is interesting, the chart that we have is the cyclical names versus defensive names we looked at this going back all the way to the 1950s, the

insemgs of the s&p 500 what we find is that cyclicals tend to lead defensive names on a relative basis as often as six months ahead of yields finally sort of getting the message that things are getting better and yields catching up in other words, the yields don't lead equities. equities tend to lead the yield particularly on a ten-ier basis. when we are seeing -- it is not that we see it in the charts yet. the ten year yield is still in when we cole consolidation with the down trend if we look at the analogues and what historically happens when cyclicals outperform generally you should anticipate higher ten-year yields going forward. we have been advising clients in terms of optionality, in terms of the lottery tickets to be able to protect yourself would be looking for higher yields out of the bond market here. and, again, it's not in the charts yet it's just something that the sequencing historically is what generally tends to take place. >> if that were to play out,

jeff, what would be the implication for broader equity markets once yields are in the process of rising? is that bad for equities >> it depends how they do it if we look at it on a rate of change basis along with level we find that basically the yields are sensitive to their last three to five years. you don't have to go back to 1980 or anything crazy like that i would say if we start getting into the plus 150 camp in terms of yields that probably becomes more problematic real yields are still negative buy about 100 basis points just getting to something basically flat is accommodative in history i think that's important for investors to keep in mine. i don't think 20 or 50 basis points is too much of an issue 100 basis points becomes more problematic in our view. >> mike, does i change anything for any of the sectors that you are watching like the banks for instance even if we get these sort of smaller moves higher for

yields. >> i think it would incrementally make a fair bit of difference it is also about positions and the vulation piece all of a sudden mattering if you have a little bit of a lift from yields yes, it could move the yield i keep saying there is a long way to go in terms of mean reversion and catchup for the financials if they catch one of those breezes without necessarily being a game changing leadership for the overall market. >> we will leave it there, jeff degraph thank you for joining us >> thank you. >> and brings us your charts. up next, apple gets a boost ahead of its main even shippers gear up for prime day and one firm taking sides on the airlines those stories and more when we go inside the market zone next we are under 20 minutes to go before the close as a reminder you can always watch or listen to us live on the go on the cnbc app. dow is up 1% also a little bit of steam the nasdaq up almost 2%. and the nasdaq up almost 3%. we'll be right back.

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on the best day for the s&p in three months with not much news. what do you talk the strength up to particularly with apple up 6% and all the other f.a.n.g.s up as well. >> i think that's what the markets are focused on today, the bellwethers, apple and amazon and their two big events shaping up this week i think what they are doing for the broader market is spotlighting the fact we are in the early kickoff of the holiday shopping season. we are kicking off q 4 and the reason why that's important, if you look at market seasonality the fourth quarter of the year tends to be a pretty strong quarter both in terms of market returns and the frequency with which we are positive they find they are positive about 70% of the time. i think that's what investors are focusing on and they don't want to miss out on that trade. >> mike, are we seeing now that stimulus is not needed for the

bulls? >> i don't think stimulus in the moment is needed i don't think there has to be some kind of imminent package that's necessary to me the known potential catalysts work best for the markets when they are somehow out on the horizon, they could happen soon, but who knows the case with the tax cut in 2017, the case with the trait deal 2018 into '19 all of it works in that direction of saying we might get a boost but for now the trend in terms of the economic recovery while slow and halting in some areas is ongoing corporate profits still on target to do much better than forecast in the third quarter. this goss going to be the last quarter in the trough for earnings i think there is enough in the work to do without stimulus in the near term. and fan favorites big tech seem to go up for no particular reason except for the known events and the options trade is back on and we are chasing them again. that doesn't require anything in

a macro or fiscal sense to be happening. >> apple is leading the dow today. it is up 6%. rbc raised its price target to $132 a share from $111 at $124 today. the firm expected apple's fitness plus to be a $3 billion revenue by 2022. tomorrow the company is expected to announce the new 5g enabled product suite. mike, 6% jump whether that's ahead of the product launch, because of the upgrade or because of a rotation it is not like apple has fallen over the last couple of weeks it is just that some of the tech names were beaten by some of the cyclical names. >> they are benefiting by being farther from their old highs even though it doesn't make fundamental sense, apple traded at $137 six week ago seems to make it no big deal for it to go up $7 to $124

it is interesting to you the narratives can shift around here for a couple of years the story why apple would expand is it is more services based. they have taken the emphasis out of the sales of the phone. and now they are coming out with a bunch of big hits, or products, tomorrow it is at 30 times earnings it is not cheap but this is what the market is paying for big high quality companies right now. so people aren't overthinking it at least yet. >> the analysts are very expressive with how they are characterizing how big of a deal this is. from dan nies, a once in a decade-type upgrade opportunity for apple. anastasia, do you buy the hype around apple and everything that goes with it >> i agree completely. i think this is a really big deal frankly the iphone launch anticipated tomorrow is what the 5g industry has been waiting for

all year quietly behind the scenes we have now built enougha 2k3w infrastructure globally is cover 5% of the population that's going to go to 55% by 2023 that means in addition to the infrastructure you need to have the smart phone the access it we are bull, on the 5g launch, we are bullish on the number of smart phone units that will be shipped as a result of it. we think the units can double by this time next year. a lot of it is going to be driven by the u.s. and lot is going to be trchb by china. in china next year 81% of the new iphone shipments are going to be 5g either way it's big deal, a big launch for apple, and a big deal for the supply chain people ask us how do you invest in the 5g. i say infrastructure play, but there is also apple and all the

components that go into the apple phone. there is a lot of sem cuttingors that we like as a result of that. >> apple by far the biggest winner on the dow adding 46 points to the 250 point rally. amazon is another huge winner today. prime minister day could create some problems for shipping companies, though. frank colens has details. >> prime day sales are forecast to increase 40% year over year to over $6 billion other retailers launching competing sales. that's expected to boost shipping walmart which has just about 5% of the e-commerce market having its big save event from october 11th to the 15th it will strain capacity for shippers like the post office u.p.s. and fedx and also allow them to prepare for the holiday peak and how to protect margins. during q 2, forecast to be a record 22% of all sales. back over to you. >> frank collins

thanks very much anastasia how do you play the shippers and the lodgistics companies on the back of prime day? >> i think it is a benefit to the supply chain a lot of retailers are going to ride this wave of e-commerce we look to some of the shippers that are participating in this when we are finally seeing is not only the volume of shipments is rising but they now have more pricing power. that's not something that could have been said a year ago. we do like some of the names showing on the screen there. the other thing you have the look at -- and syntax. remember all of these sales are happening on line in a digital form a lot of them are backed by digital payments look to some of those names. i would look to the shippers and also to the payment providers as

well. >> mike, prime day, is it at risk of underwell. ing considering the stock is up 4% to 5% today >> it is more about has the stock gotten excited in the short-term because all of them had this huge reflex move higher today. i don't think it is something that nits back very well to amazon's cash flow statement at least not beyond what we already knew about the represent the chances are it basketball the excellent pr exercise it always is. >> a pair of airline stocks moving in different directions today after a new call from barkcally's. allegiant travel upgraded. and conversely downgraded

united they are sayingly sure will be the first to rebound as this takes place. >> that's something i guess longer term that this industry is going to have to reckon with. that's where a huge share of the profits comes from the big story with the whole airline bold move in the several years before this crisis was they are more rational competitors and business travel globally was something in secular increase obviously an issue still more is dependent whether they get another aid package, have to raise capital in the public markets or have enough of a cushion so far to limp through it. >> allegiant has been relatively protected by its focus on leisure travel, anastasia you can see the short there. it outperformed competitors. when you have clients who ask you whether to buy beaten down

airlines what do you tell them >> clients have been asking since march. i would say for the first time in many months we can say that airlines have become more investable that's happening for several reasons. the first one mike mentioned liquidity and capital. a lot of these airlines have access to capital so they are fine in terms of liquidity not every airline. but some of the top ones are find with liquidity and their cash burn. they might be building cash. that's one reason i think some of these stocks and bonds are invest lk the second ones, we are starting to make breakthroughs on testing capacity when you think about it what it takes to get somebody on the plane is the comfort of being tested getting on the plane and being tested when you get to that destination we now have enough testing capacity -- in fact we have more testing capacity than the tests we are carrying out in the united states. i think to the extent that this becomes scaleable and available

on more than just a couple of test routes i think this is going to be the secret to unlocking air travel again by the way we don't expect to go back to 2019 levels even next year we still think it is going to be down 50% by 2022, that's the recovery year, and that's what we would invest for >> yeah, let's hope we can have enough capacity to get those tests more widespread and used in airlines. there is the two minute mark for the trading day. mike, what are you seeing in the market internals here? we have come off the best levels of the session, dow up 250 right now. >> the internals left something for desired all day. they have in the been all that impressive given the magnitude of the index moves if you look at the volumes split on the new york stocks, 1.7 and 1.2 barely better than even on a day when the s&p was up close to 2%. i think you have a lot of cross currents here. it is relatively narrow not the healthiest breakdown

look at the nasdaq new 52-week highs versus 52-week lows. that's a massively positive ratio, more than ten to one new highs to new lows. obviously not a new high for the overall nasdaq that's telling you a lot of stocks are in surge mode the volatility index is up because the markets are jumpy. we have that bit for volatility out because of the election. you have it still stuck under 20 at the vix. >> the vix up slightly gold flat, dollar flat, oil up just a bit 177 on the s&p the dow 254 points had been up 370 points, still, as you can see from the chart a strong session nasdaq leads the charge, up 2.6. the small caps russel 2000 lags but still up

send sectors higher. two lower. the three leaders up 2%. at the close just about 100 points off the high of the session on the dow 1.6%up on the s&p 500. and 2% on the nasdaq. fourth day in a row of gains. strong finish for stocks after its best week for the s&p in three months welcome back, everyone, to "closing bell. if you were just joining us i am sara eye send here with wilfred frost. look at how we finished up the day on wall street dow closed higher by about 250 points off the best levels of the session. still a strong showing thanks to apple, goldman sachs, microsoft, the three big winners. s&p 500, up almost 10% on the year now we have got a 1.6% gain today. the only sector to close red was materials.

it was big cap tech that led the way, technology, communication services, consumer discretion father nasdaq up 2.5% on the day. if you are keeping score of the nasdaq, it is up 32.4% year to date the russell 2000 of small caps had been outperforming over the last week or so. it rallied a long with the overmarket up .7% coming up this hour we will talk to the ceo of hologic, whether he is seeing an increase in demand after receiving emergency use authorization to test asymptomatic people for coronavirus. first, we will talk about markets. welcome to a.j first, we kick it off with mike santoli on the strength -- the continued strength at one point we were on record high close watch for the s&p 500

for what, a percent or so away from that? >> just a little over a percent. it made it up in a hurry market late last week broke slightly above this range it had been in for a few weeks. it got a lot of people personed it was going to take off to the upside that said today's action is different than what we had seen in the recent weeks when the market was getting comfortable with the cyclical turn in the economy, perhaps getting stimulus broadening out the rally from the summer. today it was grabbing and paying up for options and stocks for the fan favorite glamorous tech stocks not to say that changes the story, but i think you are already on watch for a market that's getting just a little bit -- running a little hot in the short-term just based on a couple of metrics. we have gone from the market having a 10% correction that really was cleansing and now rebuilt it in a hurry. we have to worry maybe a little bit about it getting complacent again. i am not saying it is today's business but that's where we are in this

kind of mood cycle. >> a.j. are you concerned about the outlook for the market if we don't get a stimulus over the line before the election >> so, i think ultimately it's not a matter of if we get stimulus it is going to be a matter of when there is concern if it doesn't come before the election but i think at this point the market is saying it is going to happen, it is just a matter when it is either going the happen now or inauguration. it is just a matter of who is going to be in office at this point? a.j. what are you seeing from your complaints in terms of levels of bullishness around the election, around the whole environment and the fact that the market has had such a strong run up to this point >> i think there is an overall -- it seems like the market sentiment is that there might be a biden victory i would caution to be hesitant there because if we look back to 2016 we saw the market sort of saw litthillary leading at this

point and as we know that didn't end up being the result. i would say our investors are cautious here. we do see a potential for the market to take off we have positive news with the vaccine and understanding stimulus will come overall, though, i would caution investors to listen to their adviser and understand what their investment risk and investment time horizon is overall before making an ultimate change on what's going on in the market right now. >> an thashia i know you are drawn towards more of the cyclical sectors is that because of their valuations or because you are bullish on the economy for 2021? >> a little bit of both. if you think about where we are in the economic cycle we are once again at the very din beginnibegi -- beginning of this. we have just out of a data trough we always see numbers going up

12 months after the date trough. financials fit squarely into that category for us the other thing i wouldadd whe it comes to the markets, there is really two big uncertainties being alleviated as we speak right now. one is about the contested election and the other one is about covid. on the contested election front if you looked at the markets just a week or two ago you had this surge in volatility it was being priced in around november because the baseline then was a contested election. now with the markets moving more and more towards pricing in a clear and cleaner victory you have actually seen the volatility sub vied. i think one of the thing behind some of the price action we have seen on the covid side it is testing, vaccines, anti-viral, we have seen positive developments on those. wilf, to your point, all of that is likely to benefit the value trade, and financial is one place where we are looking for that >> mike, do you buy that idea, that some of the rally, the

enthusiasm we have seen in this market has to do with the fact that they are pricing out the worst case scenario of a disputed election or not having a clear winner and potentially having to wait weeks or even months there were all sorts of concerns as the polls were tighter a few weeks ago that this was going to be messy. >> that's part of it it would seem the correlation is right there with regard to how the polls have gone as well as how the market has behaved i think more general terms there has been this ongoing release of built up tension that was going on for months. people were talking about a potential disputed election or a nail biter it might still become that but we have been talking about it for months. then we had a lot of people being cautious, holding a lot of cash and bidding down and now some of that is being released does it mean that the market is vulnerable to tightening in the race

i don't know i don't think it is mostly about approximately see. i think it is mostly about people worrying that other people are going to be worried about a hung election as opposed to anybody really thinking it is going to be the thing that makes or breaks this cycle. >> pc shipments surging thanks to the work from home trend. josh liptons that details. >> wilf, that new data on pcs just crossing. i.dc saying computer makers shipped 81.3 million pcs in q 3. that's a jump of 14.6% lenovo followed by hd, del, and acer they expect sales is a to be strong in q 4 as well. what about 2021? too early to tell. the work from home is clearing having an impact but could a weak economy weigh on demand

tomorrow apple's 5k iphones, a great chip and longer battery life morgan stanley arguing this is apple's best release in years. >> joshua, are there any old tech names, beaten down names you would be drawn to. >> i think now is the right time to look at some of the value opportunities within technology. where we are in the business cycle it is not only value but also cyclical growth that tends to do pretty well. that's i think you could have some opportunities in sem cuttingors tied to pc, to data centers, tied to 5g, tied the electric vehicles. all of them have a component not only of secular growth but cyclical growth as well. yes, we would be looking to those as well. the other thing i would say is

go down to market cap and technology i know it is the mega caps doing exceptionally well today they are pretty well priced. if you look further down the market cap spectrum you can actually start to find a little bit more value. >> mid cap, maybe? a.j., how do you play the tech trend? what parts of the technology space do you like? >> i mean overall the tech -- we are bullish the tech trend i have to play off a comment i heard from kevin o'leery it is not the stay at home it is the work from anywhere that's how we have to look at it it is not a trender with using to get through the pandemic. et cetera how businesses will start to see themselves operating from here out. we do see head winds and volatility with the data privacy concerns and regulation out of europe as well as the potential for antitrust conversation we are having here in the u.s we like the sector overall obviously the names that have kept us through will continue to perform. but we do see volatility and head winds in the future. >> mike, switching focus a

little bit, how has credit been looking of late? >> it has actually been strong in the last week or so especially you have had credit spreads tighten up it is supportive of what's going on in equities it is certainly not to precrisis levels but the best levels since march and april. so it is definite low told you that the market in september was not necessarily rattled about a worsening of corporate credit conditions or some macro shock it was mostly about equity market shift i would say we didn't necessarily rally in credit to the degree that stocks rallied over the summer. so there is no fixed relationship between those two things on a short-term basis but i would say right now credit is not giving anything incremental to worry about. >> what do you think that tells us, mike, is it the cyclical story that things are looking up from the economy's perspective is it just the fed's massive intervention here and the promise they will be there is the fact that the credit mark like the stock market is

optimistic that we are doing to fight the coronavirus through treatments and vaccines? what is it. >> yeah, i think the greatest amount of stress on balance sheet has probably been priced in or felt in areas where it was going to be. that's probably most of what you are seeing in terms of the way the market is behaving obviously the fed is there back stopping but it is a trivial player size wise in terms of how much it is buying. it is a statement of intent if thing get worse. that's a perceived support no doubt. mostly i think it is about we are within this six month point window when it seems the economy is going to get back and we have traufd in terms of companies at a higher level than maybe we feared we would six months ago yes there are going to be who bankruptcies in the highly affected areas but it is already priced in. >> what's the best way to protect the portfolio? >> i think overall when we think

about our sentiment right now is we are more overweight investment grade credit and unweight right now the high yield space. i guess that's to bounce off mike's point there we are seeing there is potential for some delinquency and bankruptcies on the horizon. that's based more heavily in the energy as well as the leisure space which we are still concerned about even though we are starting to see progress coming out of this pandemic. our stance would be to be overweight those investment grade names as opposed to the high yield >> finally, an trashia, as we wrap it up, we mentioned the rising case numbers in many states across the country. in some places, rising hospitalizations, why do you think the market hasn't shown concern about that this time >> sara i think we are making significant progress on managing the virus. i think what we have seen over over the summer is we have been able to contain the virus in hot

spots by limited lockdowns versus the massive lockdowns so we haven't seen collapse. the sec thing is we are making a lot of progress on the testing front, on the vaccine front. and really the combination of remdesivir and the antibody cocktail that we have heard about, the promising combination of the two i think is also getting investors pretty optimistic on this so that's why the markets are looking through this >> an tash yae only rowso, a.j. odin thank you for joining us. >> thank you. >> thank you. >> still ahead, the ceo of hologic will discuss whether there is enough supply to meet demand for his company's coronavirus tests, especially for asymptomatic people which recently received emergency use authorization. we are back on "closing bell" in just 90 seconds. stock slices.

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welcome back we've got some breaking news on disney let's goat julia boorstin with the details. >> the company says it is designed to accelerate -- the move divides content creation and distribution by creating a

distribute group responsible for monetizing all content including ad sales and how all content is released, whether through additional means, film and tv or digital platforms such as disney plus now, this will also oversy operations of disney's streaming services, hulu and disney plus the chairman is daniel who ran consumer product games in publishing he is a 14 year veteran of disney he worked in interactive media and distribution at walt disney studios. they will continue to report directly to disney's ceo, who is saying that splitting like this will allow the company to be content and nimble in delivering the content consumers want most in the way they want to consume

it on november 10th they will have a update on direct to consumer strategies coming up, we will have an interview with disney's ceo bob chapek. >> julia thank you your shot was frozen in the beginning but we heard for you a quick follow up. obviously it sounds like a big deal the strategic reorganization how much has to do with the pandemic and what this company has gone through in light of the recently announced high number of layoffs for park employees and some of the other struggles they have had at the box office and elsewhere? >> sara, i think it is important the point out this is not addressing the parks division. this does not impact parks what it impacts is the rest of the business we did see disney recently announce that soul was going directly to consumer on disney plus on christmas day. that speaks to the change we are seeing here, in the reorganization i think we are going to hear a

lot more from chapek about this. the issue is not about the parks, they are having their own issues the question is how much the entertainment business is going to change as a result of disly plus and hulu and we will see a shift from the studio away from theatrical to direct to consumer. >> mike i am excited to see the afterhours share price jumping 3 or 4% with an internal reorganization, which can be seen by the market as a commitment that we are underlining our future and we won't hold content back from our streaming services because of traditional cable or anything else. >> every media company would ideally want to be agnostic how consumers consume what they

create this. structure would seem to make disney better able to behave that way as if they are agnostic as opposed to being sort of beholen to the affiliate theme model for cable or the box office for films just to be a little bit more i guess open to the various ways they might be able to monetize any content. > u.ike, julia, thank yo >>don't go anywhere. we will take a very quick break. on the other side, disney's bop chapic our retirement plan with voya gives us confidence. they help us with achievable steps along the way... ...so we can spend a bit today, knowing we're prepared for tomorrow.

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welcome back disney announcing a reorganization of its media and entertainment business moments ago. let's get out to julia boorstin with disney's ceo bob chapek >> bob, thank you for joining us on the heels of this big news. we appreciate it give us a sense of the goal of this reorganization and what you think it will accomplish >> what we want to do, julia is accelerate your transition to a real direct to consumer priority company. we believe we've got the opportunity to build upon the success of disney plus which by almost any measure has been far and above anybody's expectations and really use this to catalyze our growth and increase

shareholder wealth. >> what does it say about the success of disney plus, espn plus, and hulu can you give us any sense of new subscriber numbers or what your sense is for growth of those services. >> i can't provide any guidance on future numbers. what i can say is that in every territory for every platform our expectations have been exceeded and exceeded every month we are thrilled with the way it is going we just think this reorganization is going to cat looiz growth even further. >> we hope we will get some new disney plus numbers when you report your earnings one question we have -- we have seen the acceleration of a lot of trends due to covid, more screaming, obviously movie theaters are shut down how much of this change and this reorg is a response to what is happening because of covid and what changed over the past six months. >> i would not characterize it as a response to covid i would say covid accelerated

the rate at which we made this transition but this transition was going to happen anyway, because essentially what we want to do is straight out the folks who make our wonderful content based on tremendous franchises from the decision making in terms of where the prioritization is in terms of how it gets commercialized into the marketplace. what we want to do is leave to it a group of folks who can really see objectively across all the constituents that we have, the various considerations that we've got and make the optimal decision for the company as opposed to somehow having it be predetermined that a movie is destined for theaters or that a tv show is destined for abc. really, what we want to do is provide some level of objectivity and really make it a decision that benefits the overall company and its shareholders >> now, what is interesting is this new division which has been run by mr. daniel is going to be responsible for deciding what goes to these businesses that

you have had long term relationships with that's the tv bundle, what's going to go on tv versus digital and what's going to go into theater versus digital the digital is really disney plus what message are you sending, to the cable distributors and to the theaters about how much more important disney plus is than your relationships with them >> i think what it says is that we are putting the consumer first, julia the consumer is actually going to be who is going to make this decision they are going to lead us the way they make their transactional decisions. right now they are voting with their pocket books and they are voting very heavily towards disney plus. what we want to make sure is make sure that we are going the way the consumers want us to go. as you mentioned certainly covid has impacted all of our traditional distribution businesses, but this is even more reactionary this is really progressive this is looking out with a vision towards where we see the world going. and how we see that consumers

are interacting with disney plus, espn plus, and hulu, and where it is going to go in the future, in our international business with star we are trying to as they say, skate to where the puck is going to be. >> tell us specifically about your relationship with the movie theaters you released mulan internationally here in the u.s. you charged $30 for disney plus subscribesters you announced you are going to be releasing soul free for disney plus subscribers and pulling you it out of theaters how different are things going to be now that you have done this reorganization. >> we have benefitted from a tremendous relationship with theatrical exhibition for many, many, many years as dynamics change in the marketplace we want to make sure we are giving consumers who want to go to theaters to experience everything a theatrical row lease can give them -- we want to continue give them that

option but at the same time there are a lot of consumers who want to experience a movee in the safety and convenience of their own home for whatever reason they do we want to make sure we put the scummer first. the consumer is going to make the decision how they consume our media as opposed to some arbitrary decision we make we want to look at ourselves as consumer enablers. >> the fewer films in theaters does it mean you are going to want to do something more like the day and date releases that uniform experimented with or the 17-day window that universal agreed on with amc what does the future of theatrical look like then? >> i think you will hear more on december 10th when we have our next investor conference we plan to share a lot more details in terms of how this strategy and how this reorganization translates into business actions i look forward to sharing more

on december 10 smooth that was a really good tease. i have to ask you about espn plus you mentioned espn plus. does it mean you are going to try to remove some of the sports rights deals over to espn plus from tchb as those deals expire in coming years? >> short of announcing anything specifically we like the direct to consumer model we have got. at the same time we have got relationships, we have got tremendous cash flows generated from our traditional legacy media businesses so we are not just going to walk away from those. i guess you could say we are tilting the balance towards direct to consumer across all of our businesses whether it be sports or whether it be traditional movie platforms or our own television stations. tilting the balance is the way i would put it. >> will this reorganization impact any layoffs will have you any layoffs as a result of this >> this is not really about oye layoffs, julia this is about doing the right thing strategically.

as you can see, though, there is an element of centralization that's happening throughout the theme this layoff -- this program. and that could result in some reduction in staff, although, frankly, that is not a real central focus for us >> so speaking of layoffs, you just laid off 28,000 people as a result of the theme park in california being shut down you did blame the state of california for preventing you from reopening that park what is the state of your negotiations now with the state of california? and when do you expect the disneyland resorts to be able to reopen >> julia, i will tell you, it is not much of a negotiation. it is pretty much a mandate that we stay closed i look cross our disney properties, shanghai, tokyo, hong kong, paris, walt disney world, the disney bubble for the nba. and all i see that we have been able to ep up responsibly using the guidelines that health care experts have given us.

as a result, we have been very, very successful at reopening without having issues that would preclude us from staying open. it seems to me that the guidelines that are set up by the state of california are more stringent than any states across the country. and if you look at the history of disney and what we have been able to do during reopening rather than arbitrary standards that are set up without regard to what actual fact is what we have been able to do as a company i think you might come to a different decision about reopening disneyland >> because you have been operating in florida can you tell us what capacity you have been operating in florida? and what capacity you would want to operate at in disneyland in california >> we are limited by six foot social distancing guideline of the cdc. that's what essentially translates to about a 25% park capacity so every day, that's about where we are at, 25% capacity. and that won't change until the

cdc guidelines change. >> and do you anticipate having to do more layoffs in the parks division >> we hope not obviously, we are watching very carefully what the state of california does as an indicator for whether we can retain some of our cast that are right now on furlough. we would like to keep them on furlough until we can reopen but if -- i think what the government said was no time soon we are not going to be pressured into reopening that obviously gives us some pause. and weld like would like to pur cast members back to work, as many of them, as soon as possible if the government would let us do it. >> got it. a final question about dan lobe and his urging of you to permanently suspend disney's dividend and reinvesting all of

it into disney plus. how do you address that? >> we welcome input from all of our investors. and we appreciate his thesis i will say that we are tilting the scale pretty dramatically towards our correct to consumer platforms. of course we have got the pragmatism, the practicality of watching cash flow in this very difficult time that we are all experiencing i think when we are doing is taking a look at all of our investments, whether it be a dividend or capital improvements or new content what i will say is that we, just like we are tilting the scale heavily towards direct to consumer we are going to be increasing our investment in content that's going the fuel the machines in direct to consumer >> got it. and no specific comment on the dividend, no changes there >> that's up to our board of directors. they will be making their announce men when appropriate in we look forward to hearing more

from you when you report earnings on december 10th. bob chapek, ceo of disney thank you for joining us. >> thank you. >> sara back over to you. >> thanks julia. thanks to bob chapek as well coming up, the ceo of hologic discusses his company's new test for asymptomatic people anwhhed etr he has seen an increase in demand since it received emergency use authorization. we'll be right back. my father always reminded me, "a good education takes you many different horizons" and that sticked to my mind. so, when $1 a day came out, i said, "why not"? why not just utilize that resource. and walmart made that path open for me. without the $1 a day program, i definitely don't think i'd be in school right now.

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welcome back time now to get a cnbc news update with sue herera hi, sue. >> hello, sara hello everybody. here's what is happening at this hour slow going on the first day of early voting in georgia some voters saying they were in line for six hours to cast their ballots. north of atlanta, an election official said people there were waiting two to four hours to vote joe biden back on the campaign trail in ohio blasting president trump for fast tracking the supreme court nomination of amy coney barrett while putting little effort into negotiating a coronavirus stimulus deal. a wisconsin police chief says he sees no reason why a police officer should be fired for the fatal shooting of a black teenager this february the chief said the teen pointed a gun at the officer and refused to drop it and that the officer could argue he fired in self-defense. and roberta mccain, mother of the late senator john mccain, has died she was active well into her 90s

and was a fixture of her son's 2008 presidential campaign she was 108 years old. you are up to date that's the news update this hour guys i will send it back to you. >> still to come, we will discuss whether this big week for bank earnings will help rntu around the struggling sector "closing bell" back in a couple of minutes

dying city council company hologic just got emergency use authorization from the fda to test asymptomatic people for covid-19 this follows the updated guidance laid out by the cdc which now recommends covid-19 tests for people who have had recent contact with infected individuals. joining us, steve mcmilan, ho log's ceo. welcome back. >> good to see you again. >> what's the difference between testing asymptomatic people and symptomatic people from a testing perspective? is it a different kind of test >> yeah. you know, really what it does is it builds on our expertise in

identifying very early and sensitive cases. so it's the same kind of thinking that our scientists brought to the invention of 3d mammography. the key in any diagnosis is earlier and better so exactly what we brought to breast cancer and then brought to cervical cancer with pap testing and hpv testing what we brought to sexually transmitted infections what we brought is so sensitive it can pick up the disease paster and therefore able the get the asymptomatic claims think about it in simple terms the live of a covid -- let's say you gettet tomorrow. it is going to build in your system then at the peak you will have a higher viral load. then that will come back down. so what you want to be able to do is catch it in that very early stage, particularly as we try to test people who may have been exposed but don't feel symptoms so the magic is, our technology

is sensitive enough to pick it up earlier, and therefore be able to act and take the actions that we all want to take. >> got it. how is this test administered? what sort of use cases do you see for it. >> sure. it's the same test we had approved in early may by the fda, which has subsequently really helped alleviate a lot of the shortages that were in the country prior to us coming to market you hear a lot about pcr testing, a version of molecular testing. we use transcription mediated amplification. in simple terms, it's tma. it is a different technology that test was approved in may, cleared innen may. we have literally run tens of millions of tests. during that time we have got a data set

a we helped the u.s. in terms of testing. most importantly because of the sensitivity of our test and even the fda recently put out a table showing we have the most sensitive high volume test on the market what that shows is our ability to pick things up earlier. so our organization, we've ramped -- literally we have produced tens of millions of tests now, generating that data to be able to help catapult us further as a society to, you know, get back to work you had -- bob chapek was on from disney was on earlier wanting to get new york of their parks open safely in this country. woke do that now. >> it is encouraging news about the asymptomatic tests have we not learned in the last couple of weeks with all of the cases arising out of the white house of the limits of testing overall, the fact that a lot of people can be tested and not show to be positive but still be carrying the disease and have that show up a few days or a few

weeks later such that even if you do have the best testing in place you can't realistically open large stadiums and expect to get perfect results just by testing a alone. >> wilfred, actually i would argue a little differently which is the right tests in the right environment will help us prevent exactly what did happen at the white house the key is using the right tests at the right time, where we can pick up these asymptomatic people think about it very simple let's say you had to have a knee replaced tomorrow. you can go to the hospital they are not going to admit you for your knee replacement tomorrow without giving you the best test on the planet. what they are going to do is ask you the come in today, be tested using a molecular tests that more sensitive and far more specific part of of the challenge in the rush to get tests out, a whole bunch of tests have been out there. and they haven't necessarily

been used to their full label specifications so it's about using the right tests in the right time, in the right environment. i am not saying we are going to get 100,000 people back in the stadiums, but you are starting to see ina lot of cases the ability to start to get partway back we need to take steps. we can't sit on the sidelines until 330 million people in this country are vaccinated at some point, you know, ten, 18 months from now there are ways just as we use diagnosticed in breast cancer. we used it in the early days of hiv. there are ways we can get a lot smarter. we are even seeing we are able to treat it now very differently than the high death rates we saw earlier on. >> steve as always thank you for joining us. thank. up next bank earnings kiinoff moowckg torr with citi group and jp morgan. a breakdown what have to watch when "closing bell" returns.

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bank earning season kicking off this week. citi and jpmorgan on deck for tomorrow, many others as the week progresses. jason goldberg is joining us with a preview

jason, thanks for joining us i guess the key focus has been provisions for bad loans is that the key focus for this quarter and what are you expecting. >> we do think credit will remain front and center. but after significant loan loss reserve bills in the first half of the year, sweat substantially lower rebilserve bil reserve bi second half of the year. and we expect loan losses to likely remain relatively low in the near term aided by the fiscal stimulus we've seen >> what about loans in general, jason. >> loan growth will remain quite muted. you think back to march and april, we had the strongest months ever loan growth in history as cooperates kind of borrow borrowed and a lot of that paid back.

and often we've seen strong debt and so corporations are borrowing, but they are using the capital markets and that along with the consumer kind of being smart in here in pulling back, will weigh on overall loan growth >> and i noticed that you were banging the table that the risk/reward looked pretty attractive are you still doing that >> testify hhey have had a bouno earnings and sichnce the conference, estimates increased about 8% but we're still in line to be ahead of consensus for the majority of banks that we cover. so we still think there is up side to numbers. and while the grew up has moved, the relative valuations are still quite attractive you have price earnings priced above multiples. and even with the lift, this still would be the worst year of

relative bank stock performance on record and we have data going back 80 years. >> and both goldman and morgan stanley up over 3% today does that make sense to you, would you want to be long investment banks rather than commercial banks. >> yeah, if you think about the opening question, we were concerned on credit quality and goldman and morgan have relatively less credit quality concerns given their business models and additionally will benefit and trading results are strong as well and so we think q3 will also be good into fourth q and as well as looking out >> jason goldberg, thanks for joining us appreciate it. apple shares up 6% today ahead of its big event tochlg. tomorrow a look at what else investor be watching is next

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talked about the banks we have apple's big product announcement and amazon prime day. and the setup for all of these is a strong rally. even as wilfred noted for the banks which if anyone had a good setup, the banks but big rallies today. >> yeah, i think that it was primed to do a little bit of buying or perhaps even forced buying into the mega cap nasdaq themes i've been mentioning that it seems as if the game is back on, people speculating in the options, flowing through to buying in the big names at least for the moment but yes, then you have the news hooks for apple and amazon it all fits together and i do think earnings season has a lot of confidence among investors that it will beat bay a lot, some estimates by 5 percentage points perhaps. we're projecting minus 21% profits year over year so there is a lot of

outperformance that can happen without it being much of an issue. i think one of the biggest things going for the market is the calendar we're closer to 2021 than we've ever been and that is now a bigger piece of the forward valuation, of earnings expectations. and so they will say this is the extraordinary year >> and this will annoy rob, but i don't know if we can show the wall again it looks like apple is about to eat delta. but mike, one company that might be looking to take market share after tonight's announcement, disney big jump in the shares. >> yeah, i think it is in the tone for what it represents. we already knew that if they could fetch the more of a streaming centric business model and valuation, it would be good for the stock. and i think that it is much more are a little bit of a reflex, saying we like this orientation,

disney is moving faster versus slower >> and the other thing coming out tomorrow is the world economic outlook from the imf where they update their forecast for the global economy so could look a little bit better than worse feared, but always good to get a snapshot in what is playing for places like china. >> all eyes on that and a lot else tomorrow. as for now, we'll hand it over to fast money. >> i'm melissa lee, and this is "fast money. tonight, the $200 billion market move from two tech titans, apple and amazon both surging today. how traders are playing the names. and how a blue wave in november could be a big win for the beaten down energy sector. and later, we're tracking the treatment. you'll hear from one be company that could be on the front lines of the