for a lot of the resource names arc weakening dollar, and you have a dynamic were new corp. and steel dynamics guided higher 20% short interest i think x is headed higher >> tim, have a great weekend great to see you. >> thank you, tyler. you too. >> andcaly, the same to you. have a great weekend >> you too tim fit it all in. so did we. thank you for watching "power lunch," "closing bell" starts right now. >> i'm wilfred frost along with sara eisen stocks looking to finish out a volatile week on a high note as we head into the final hour of trade. let's look at what is driving the action retail sales climbing 1.9% in september versus simts of .7% did estimates of.7%. consumer isn'tment exceeding expectations pfizer saying it would apply for emergency use authorization as early as late november

shares of boeing helping lead the dow higher following positive comments from a top european safety regulator about the future of the 737 max. more on that in just a moment. boeing is up about 3%. the s&p up around a percent, close to that at the moment, 59 minutes left, sara. >> coming up on today's show, shares of kansas city southern they have held up relatively well this year ticking lower on the back of earnings today we will talk to the railroad's ceo about those results. plus we will talk about the impact the coronavirus is having on the world of sports with the ceo of a testing company they test for big 10 and pac-12. the company is quidel. their stock be that flying 58 minutes left of trade, mike santoli, megger theel and joining us to talk about boeing today is sheila kaiialo.

mike, the market strong. >> a gentle rise the market found its footing for the second straight day around the time the european markets closed in the late morning we have been trudging higher since then the s&p 500. 3508 would be closing weekly high for the s&p it is kind of interesting because we traded a couple percent higher than that at the peak but it was not at the ends of the week. some people feel there is a significance to that in terms of looking a the long term trent trend. white in the middle of the high and the low for the week the question was the wobble we had in the middle of the week, that little bit of a gut check, enough to perhaps get rid of some budding complacency that was starting to get into the market we will have to see about that we have had a broadening out of the market this was september st. the high for the market was september 2nd. the s&p has outweighed

and then the transports, maybe not the economic well weather they used to be. certainly a positive thing from the macro perspective they are outperforming and nosed ahead of the s&p 500 on a year to date basis. a lot of that is fed ex. but also the rails and truckers have been owing, too not so much the airlines, but you have this not hurt the index. >> everybody is up, except for energy as far as sectors wanted to raise the expiration today of monthly options on equities and etfs and indexes. does that really matter as we go into the final hour? does it provide for a bumpy or turbulent session? >> i wouldn't necessarily say today, you have kind the week eexpirations one of the impacts that people have been pointing to is on monday there was another one of these stampedes into call options on the big tech stocks the retail flow has been very pronounced now a lot of those stocks are

not at the higher levels so dealers have had to buy. it is a lot of mechanical stuff. but by friday it seems like a lot of it worked its way through. upside calls for apple on monday are probably going to be out worthless which means the dealers are going to be pocketing the money. pfizer moving higher after the company's ceo laid out a potential time line for its vaccine candidate. megger theel has the dils for us. >> if everything goes right according to this time line we could be about six weeks away from seeing pfizer filing for fda clearance of it is covid-19 vaccine. the ceo publishing an open letter today essentially lining up the three areas of requirements they need to immediate in order the file for the clearance. first does the vaccine work. they expect to have the data by the end of october, just weeks from now safety, they need two months of follow-up data they are predicting potentially having that in the third week of november

they also need results on their manufacturing. and they expect those data ready before the safety data if all goes well the third week of november they could be filing for fda emergency use authorization. the safety issue is the one that's causing the timelines that is because the fda is requiring two months of follow-up after half the participants in the trial have seed their second shot of the vaccine. both pfizer and moderna hit that milestone in late september. that's why both companies, pfizer and moderna are guiding to the end of november as when they might seek that fda clearance. >> is this totally unprecedented, this sort of style of front loading prediction when you are still waiting for the data >> well, companies usually guide to when they expect to have results from trials, but we are just in such an unprecedented situation with this pandemic people are paying such close attention to when we might have

these results. and the guidance of course is unprecedented as well because vaccines usually takes years to develop. here they are trying to do it as fast as they can it would be less than a year if they are successful, if they file at the end of november. >> meg, thanks for that. pfizer board member scott gottlieb coming up later in the show. shares of boeing after a european reg will iter says the 737 max is safe to fly it was grounded following two fatal crashes. no official certification has come from the agency which is awaiting final documents and time consultation. let's bring in the aerospace and defense analyst at jeffreys. how good is it to see this from a european regulator >> it is one baby step forward, i'll put it. it is a pretty significant positive news for boeing in that

you have u.s. coming towards approval you have europe, you have canada lining up, and some of the bra stillian authorities the only ones we haven't heard from is the chinese authorities but we are seeing positive steps. the reason why it is such a big deal is boeing is hold being 450 aircraft in inventory, $16 billion on its balance sheet once the aircraft is approved, it could get off the ground. >> and what time line do you expect that to take place by >> what we have heard from some of the airlines, ryan air saying they have 135 aircrafts on order. american airlines said it will take two months for their pifts to get through the remoat training module. we are expecting deliveries to start in early 2021 but at a very low level there will be a delta between production and deliveries of the aircraft and we expect that 450

aircraft to be depleted by the end of 2023. it will take some time, but no doubt a positive development for boeing and the max >> well, during all this time, as they have gotten the reg regulatory nod of approval here the demand for flying has dropped off a cliff and it is a totally different picture than when this airline first went on line how does that if at all impact the trajectory of the sales and delivers of the 737 max when they are able to do so >> what we have taken into account due to demand in air trafg fall off is the 4,000 orders they have on the books for the aircraft goes away by a third. it gives them six to seven years of backlog they don't need any new orders it is about how the airlines can start taking the aircraft into their fleet and how that filters through. the reason i mentioned europe is a positive development, it is slated to take 25% of deliveries over the next few years.

china is another 20% that's why we are watching these regions as we see their regional approves, because at least it offsets some of the demand in air traffic mg falling off i will say domestic air traffic is coming back much faster than international air traffic, which is depressed at the moment. >> do consumers seem ready the fly on this plane again? >> we have done several surveys. we do think consume remembers confident. i mean after 18 months of a certification process, you know, there are certain levels of comfort that this aircraft has gone through not worried about consumer sentiment. i think the virus is top of mind, and how safe is flying with covid at the moment versus flying on a max. >> i know you are an analyst for boeing as someone who followed this story closely and knows the industry, do you think the faa's credibility has been hurt throughout all of this from the late signs and the late warnings to some of the revelations about

how boeing skipped on and cut corners on approvals what matly do you think it means for the faa's reputation >> thanks sara i think that's a great point part of why it has taken 18 months is the faa wants to prove this is a very thorough process. i think we will see a lot more implementation on the 777x, which is next up to be certified by boeing. we see a lot more training coming into place. i think that was one of the things that was really lacking on the aircraft. that's why i mentioned ryan air and american and how it is planning to phase in its training process faa lost credibility boeing clearly lost credibility. they are looking to gain that back >> finally, you mentioned that china was still a question mark. do we know anything about whether the chinese regulators are also doing these test flights and these regulatory reviews like europe and the u.s. i would assume that's a very important market you mentioned the numbers, also

precovid that's where the numbers were coming from, right? >> sure. it is an important market. for the max in terms of deliveries we are estimating it is about 20% of deliveries over the next three years smaller than the u.s. and europe, which accounts for 25% we have been hearing from the european regulators over the last 18 months, but china has been firly quiet that's partially what's going on in the political landscape i would say china has been realized not only in the max but the 787 which is a wide body china was big on ordering that aircraft and they have stopped placing orders for that aircraft over the last two and a half years. we are seeing it not only on the max, the china impact, but across the boeing portfolio. >> sheila, thank you for joining us >> thank you for having me. >> really good to hear from you, on beauing, which is leading the dow higher right now it is adding 31 points to the dow's rally. up 220 for the major average. up next, retail rebound. sales were surprisingly strong

in september but restaurants and clothing both down double digits from also year. what contactually are consumers buying right now we will tell you after the break. you are watching "closing bell," on cnbc. 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.

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the major stock averages rallying today on strong september retail sales data. sales jumping by 1.9% last month compared to expectations of only.7%. retail categories seeing a boost from consumers compared the last year including sporting goods, books and music, motor vehicles and parts, and grocery store sales higher by 10%. however there are categories seeing a drop in consumer demand food services, clothing and accessories, and electronics and appliances down 6% it is a tale of the pandemic

economy and what consumers want and need for more, let's bring in drew mattis from met life the overall headline number is very strong and as i said, much better than expected how far does it go to calming fears that the consumer is going to collapse if we don't get another stimulus package right away >> it calms the fears but doesn't allay them the issue is we know a lot of people saved a lot of money over the last couple of months. with the exception of the very low income people who weren't able the save a lot of people who saved can put that money to work now and the next month that works as long as job growth continues. if it continues the fade, the consumer could fade even more quickly. >> you mentioned that high savings rate i think it peaked above 33% back in april thanks in part to the first stimulus how much cushion is there left

to get us through to potentially the next stimulus for consumers to be okay and continue to spend. >> that's the question is how much do people want to be saving right now? how much of that saving is occurring because people are not physically able to actually spend the money? or how much of it is because people are worried about another round of loukdowns or something that might cost them their jobs? we don't know that breakdown the only way we can guess at it is actually looking at things like consumer confidence where it seems like people actually have a very high degree of confidence in the economy going forward. but once again, that ties back to job growth. if you don't continue to see very solid job gains month in, month out, you know, the confidence isn't going to hold up and the consumer is going to pull back on spending. >> if we do see a decent sized stimulus, drew, at some point between now and the end of the year, how quickly could spending by consumers and in other areas pick up and inflation surprise us to the up side?

>> i think it could happen very quickly. i mean if we are thinking about the timing of this all, you know, when is a therapeutic or a vaccine going to be available? if you layer in a second round of stimulus at the same time that something becomes available that allows people to return to a more normal life then you could actually be stimulating the economy at exactly the wrong time and of course the fed is on hold for quite some time. they don't want to be reaching in trying to contain inflation right now. so it is -- you know, the timing is actually very important here. some people could definitely use the help you know, help is usually warranted. but you have to watch that you are providing it in a way that's actually best and will hit when you want it to hit as opposed to hitting maybe with a delay that would actually come at the wrong time >> so are you saying that it is actually really important that the stimulus come before the election in a targeted way,

versus after the election where it could stoke inflation because it is coming up at the same time as a vaccine is that it. >> i think with regard to the election if you think you need it, you should could it probably sooner rather than later. if you are not certainly whether you need it, you really need to think about how you tailor it know so if it comes at time when people are able to get back into the economy the way that they want to that it doesn't overwhelm the amount of supply that we have available to kind of meet the demand that would be coming from it. >> drew, as things stand, which of the metrics are you most concerned about in terms of losing that pace of recovery >> i am most worried about the job numbers. we have seen that -- you know, we lost 22 million jobs and the next month regained 3 million. the after that we gained 1 million. that number is smaller and smaller. at the current pace it would

take more than a year to get the remaining jobs that were lost back more than a year is long period of time. i don't think consumer confidence is going to hold up more than a year for those people who have been made unemployed by the covid crisis >> i'm curious how economists are looking at the fourth quarter. because we know -- we are going to get in the next few weeks the third quarter numbers. atlanta fed is predicting 35% growth that's going to be tremendous after the slump we saw the quarter before how about the fourth quarter how are you predicting, with some of the indicators slowing and the stimulus >> i think the fourth quarter is most important we know there was a giant drop we know there is going to be a giant bounce the unemployment numbers held up and the employment is coming back fourth quarter is going to tell us what the trend might look like going forward our concern is if you look at capital versus labor the amount of capital every

company uses versus the amount of labor every company uses, et cetera not clear to us that firms don't have the employees that they need right now if they want to -- they might be more inclined actually now to add capital rather than labor particularly given the nature of the crisis and so, you know, i think fourth quarter is going to tell us a lot about whether firms are moving in the direction of, you know, returning to kind of a labor-heavy environment or whether they are more inclined to actually invest in the longer term in capital that can replace labor, which would of course then create a longer term risk for the economy going forward, and for the labor market. >> drew thank you for joining us good to see you. >> thank you. we have got just under 40 minutes left of the session. as things stand, the dow slipped a little bit, up .7% still ahead, the nfl has dealt with a number of coronavirus setbacks over the last few weeks

including positive cases on the titans, falcons, and patriots. we will discuss the virus and sports with the testing partner quitel

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36 minutes left to go in today's trade. strength overall the s&p is up a third of one percent. every sector higher except for energy and consumer discretionary. losing steam heading into the close. nasdaq just positive, so is the russell 2000 index of small

caps market movers. wells fargo upgrading caterpillar to overwait, increasing the price target to 220 from 160 the stock touching levels not seen since back in 2018 in today's session. strong run lately. meantime, jeffreys upgrading chew chewy citing pet adoptions by digitally fluent millennials during the pandemic lockdown and wheat supply concerns. retail investors can invest in wheat through the etf w-e-a-t, wheat spelled wrong. i have been reading up on this lock of moisture in the sale in the u.s. and russia, key producing regions. there is also a food insecurity issue we have globally right

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dow is up 200 points 30 minutes to the close

time now for your daily coronavirus tracker. the u.s., including puerto rico and guam added the highest number of cases since august 14th yesterday according to johns hopkins data. hospitalization rates are rising week over week in all but six states with the largest increases in missouri, norkt dakota and minnesota cases are rising in europe as well forcing new lockdown measures germany, italy and portugal reporting rega ining record cas thursday. today president trump struck a deal with walgreens to administer vaccines to elderly in nursing homes and staff working in them once they are available. >> time for cnbc news updates with sue herera. >> here's what is happening at this hour. the white house rejected a russian proposal to extend a nuclear arms control treaty which is expiring. national security adviser robert o'brien says russia's offer of a one-year extension without

further restriction is a, quote none starter. near paris a history teacher was decapitated on a french state and police have fatally shot the suspected killer. the teacher recently opened a discussion with his on caricatures of islam's profit muhamm muhammad. -- defense secretary accused of helping a drug cartel smuggle thousands of pounds of drug into the united states. he was arrested yesterday. britain's prime minister says the uk should prepare for a no-deal brexit saying there is no point continuing negotiations with the european union. eu leaders say they are willing to resume talks. you are up to date that's the news update this hour sara, back to you. we have got must under 30 minutes to go before the close here's where we stand in the markets. dow is up 185 points

cat pillar and boeing leading the charge all the major afternoons are up today and on the week. up next, the ceo of kansas city southern, the railroad company, weighs in on earnings and how the recent hurricanes paedtsotm ne we'll be right back. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance.

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shares of kansas city southern lower after the company missed on estimates. up 60% from may lows their ceo patrick ottensmeyer joins us good to see you. >> good to be on >> clearly, the numbers are being hit by the pandemic, though car loads i note are only 4% down year over year if you look at some of the charts you have in your release it looks v shaped in terms of the recovery of volumes you are seeing is that fair >> it was an invebl v. our volumes in the second quarter if by 20%, reached kind of a plateau for just a few

weeks came back and increased by 30% for the low for the third quarter. this was really -- i describe it and probably said it two or three times on the call this morning, is a roller coaster if you think about how -- the thing we needed to do, not knowing what was ahead with volumes falling that quickly and that dramatically in the second quarter and then bouncing back, you know, 90 days later. we were actual low at a run rate, you know, from the low point, currently at about 60% above where we were in -- dat te end of the second quarter. >> has that been sustained over the last week and months, or has it plateaued >> it continued the increase we are operating a little bit above year over year for the fourth quarter we record car loads every week to the aar so that data is out there. and we are up a little bit from last year, and certainly above

precovid levels. >> you have got a pretty good view into the different parts of the economy, from industrials to agriculture. where do you see the strongest rebound happening? and what still has to catch up >> you know, in our case, the strongest segment that we have is refined petroleum products. that has a lot to do with moving gasoline and diesel fuel from u.s. gulf coast refineries into mexico automotive has been strong actually, our intermodal volumes have been weaker and still has to do some catchup that has to do with service interruptions things going none mexico that we are trying to deal with that have caused us to lose some business at least for some period of time. but we're -- our coal business has been weak. but that a little bit just to do with some of the specifics of

some of the plants this we are serving. but across our industrial and consumer economy, we see -- we think it is going to continue to be strong, modestly strong from this point through the end of the year. >> you received, according to reports, around a $20 billion offer for the company last month. where do we stand on that? is there still interest? is there a price that would be more reasonable? >> well, as you can imagine, wilf, we don't comment on press reports or rumors. you know, we are focused on executing. we've got a great company. we' are performing well we are executing well. we have got a great team i think we are very confident in our future as i tell people -- you know, you think about those statements, i am not surprised that people want to be a part of that, that we really haven't commented on the media reports and the rumors we are russia is very focused on

realizing the potential and the growth that we think we have ahead of news and you are going to be buying back stock, patrick. why is that the best use of cash during a period when there is still pretty great uncertainty globally over the virus, over the path of the economy? why now? >> we announced the share repurchase program back in november of last year, which included a smaller accelerated share repurchase program so that was actually part of our plan when covid hit and our business changed, we tapped the brakes on that to see, you know, how this was all going to play out. here we are a year later our business is largely recovered. we just put together a very strong quarter in terms of cost control and profitability. our liquidity situation is very

good probably better than would be ideal. our outlook is good. so we think that now is the time and we are confident enough in the future that we think it's a good opportunity for us to get back in a little more aggressively with the share repurchase. >> more recently, have you seen, patrick, a hurricane impact? >> yes we actually have had four hurricanes, two in the second quarter, two in the third quarter -- i'm sorry, two in the third quarter, and in the fourth quarter. and we -- unfortunately, there were four different storms and each one of them had an impact on us in terms of service interruption laura was probably the worst in terms of the impact on our customers. and some outages at facilities that we serve in the lake charles and new orleans beaumont

region some damage to our network which was an additional cost and expense to operate through that and the recover. nothing really material. we did not quantify the impact of the hurricanes in the third quarter. it really wasn't substantial enough to call that out. but you know, no significant property damage, which was a good thing and we feel like our customers and our services is pretty close to being back to where we want it to be in terms of running a pretty efficient fluid balanced network to that's a pretty upbeat picture you are painting of the economy, patrick. thank you for joining us. >> you are welcome glad to do it. thank you. >> from kansas city southern. coming up, a bank merger and beat on retail sales the details of all of those stories and more straight ahead in the "market zone. we are off session highs but still higher for the first time in three days on the dow and s&p. watch or listen to us live on

the go on the cnbc app we'll be right back. nasdaq has just gone negative on the session. hey, dad!

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week of gains for the dow and the s&p, fourette week of gains for the nasdaq strength in groups like industrials, utilities, health care what is the narrative right now. >> that's been the underin tone, for six weeks on net basis you have had some of the former favorites in the crowd of nasdaqths stocks a little bit weaker looking at the 52-week high list, it is home builders, retailers. it seems like the positioning is positioning for a stronger rebound. it is a low intensity rally today and a little bit of drag in the last hour or so i think we might have to content with a little bit of maybe an overeager upside positioning we got this the last three weeks. remains to be seen. >> mike, i feel like this week

has been a lot of negative discussion, almost bearish tone on the network yet we are higher for the week as a whole. >> yeah. i think there is lot of focus on the hazards, on the things right in front of us or on the come, things like perhaps a fall and winter covid surge and the lack of a fiscal stimulus i don't think the market, though, was priced for a sure thing of $2 trillion in short-term stimulus. so that's been easy to shake off. i do think it remains to be seen if in fact we are looking at some friction with regard to the covid story. >> jonathan, there are questions about rising case numbers in the u.s. and europe. and growth there are questions about stimulus what does that mean for your forecast and where we go from here after another strong week. >> sara, i think there is a stalemate, which is why the market really hasn't been doing anything in the last week or so. the earnings numbers, we are beating by 23%

the best quarter in history was last quarter with 23%. and so far with 15% of the companies having already reported we are in line with the best quarter ever. yet a lot of the stocks, if you look at the bank stocks, they were actually off on really terrific numbers then if you look at the economic data, the retail sales are good, consumer optimism is really strong the inflation data both ppi and cpi are saying that we are getting a little bit of inflation, which is something that guys like me, we are concerned about. that's the positive. on the negative side -- you hit it right, the virus is clearly getting worse. it is possible as we go inside it is going to get even worse than this. the stimulus -- now it is increasingly looking like we are not going to get this done until after not the next day but after a new president is sworn in. that means we can go another four months or longer without

stimulus checks. and also credit spreads right now are so tight that there really -- there is potential surprise if we see any time of credit risk. so i think you have this tension between some things which look super positive and a bunch of these risks that you mentioned. >> so are you bearish then >> you know, if you said -- in the near term, let's say between now and the end of the year i am actually cautious on some of these near term risks some of the things that sara had mentioned. but if we look at, you know, a year -- it is not the election i think the election in a weird way is the least of the issues i think we need to get through the next few months without stimulus checks because it's possible that we are going to start to see a pick up in bankruptcies and business pressure and that would weigh on the banks and weigh on the broader market and we could start to see the hit in the economic data but right now the economic data is really strong let's talk about the rare bank

merger announced today first citizen's bancshares and cit group saying they will combine. the deal is valued at roughly $2.2 billion and will create the 19th largest bank in the u.s both companies rallying hard ony

is as relevant as you say. cit is not a traditional bank of it is an asset based commercial lender that stock crashed from the 40s

into the teens earlier this year because of covid because of the exposure to small business and things like that i feel as this is sort of a rescue of a one-off type institution by a smaller regional therefore, i don't think the market is taking it as something we want to extrapolate as the start of a deal wave. >> but what will they name the combination, wilfred that will be the question. nobody saw you truest coming >> the same pr company. >> same consultant same mkz-like consultant. retail sales rebounding in september. they came up 1.9%. but year over year data tells a different story. electronics, closings, bars and restaurants all of those under heavy -- from the consumer on the flip side sectors seeing strength, motor vehicle parts, sporting goods higher.

do you look forward to places that have been especially beaten down because of the pandemic or do you jump on the sectors doing well right now. >> i think the story is not how much things are beaten down but in this quarter two groups in particular, autos and soft line retailers, people that sell clothing or department stores, if you will. while they are down about 30% or expected to be this quarter, that's down from like 130% a quarter ago. so we are starting to see a lot of improvement there and i think that there is really the opportunity for that to fuel some upside. and i think the key is many were really avoiding some of those retailers that seemed like they were down and out. and if we're able to see the economy continue to improve, and with this much money in consumer pockets, we really -- that's an area that may be more interesting even though they are still down a lot, the rate of

change is really fantastic. >> mike, how quickly could this turn around if we didn't get more stimulus? or is this really a genuine sign of fundamental strength in the consumer >> obviously it is some built up savings. it is some pent of demand. all of that registered in the september numbers. i think in the next couple of months there is probably going to be pressure on both of those things the issue with this recovery and retail sales and the economy in general being about stuff, goods is that once you buy it it pulse forward demand from the future as opposed to retail sales that generates purchases in the future if you have job growth month after month it offsets >> shares of barley up sharply we have a look at which other companies rely on a small number of clients and could be at risk

of following suit. >> that's right. like fastly -- many of these names are in the software base da davidson highlights five names investors could watch, twillio, box, limelight, 2u and duck tariq what's app accounted for twillio's q 2 revenue. willio sales it has diversified its business with its top ten customers now representing 15% of revenue then box ibm accounts for that as 10% of its revenue w. ibm restructuring he says could that mean a reduction in box revenue box recounted that no customer makes up more than 10% of its revenue. for its part, limelight's ceo tells cnbc it is focused on being a healthy customer pipeline for now, amazon, according to estimates, makes up more than 30% of its business.

>> josh thanks more than 30% is something of a key customer risk. but if on the twillio point, you know, the top ten make up only 15% that's not massively concentrated exposure. >> not at all. if anything it is reassuring i think the way the parmarket reacted following the fastly news indicates they did risk management to see if there were other companies in that similar type of stateand it did not seem to apply broadly to the group. it is always a risk, for these fast growing companies it is basically not a play on the whole industry, it is riding one trend. i think the fact that the cloud stocks for example, recovered after that move this week shows it wasn't necessarily the cockroach theory at work here. >> mike, while we have you, we have got just over two minutes to go in the session dow is up 127. we have come down a bit from the

highs during this hour what are you seeing in the market internals right now >> it is very well mixed it has been all day. some of the days this week the breadth has been better than the up decks would suggest today it is okay definitely positive, but it is more like a 5-3 up to down volume in the new york stock exchange still more new highs than new lows a lot of the trend stuff is okay but it is not overwhelmingly showing a lot of urgent demand right now for stocks did also want the take a look. on a week to day basis if you look at the proxy for the stay at home trade versus the going out trade. on line retail has been unstoppable. up 2%. people tacked a little more in the direct -- even though brick and mortar retail did okay in the trend that we still think the stay at home retail trend has more life in it.

look how this has plateaued in the last several weeks that shows you that election-based risk even though it is coming out of the derivative prices it is keeping the vix at a 27 level in a day when the market itself is in this gentle drift. >> mike thank you. one minute left. flat on the s&p 500. lower on the nasdaq and higher on the dow well off the highs of the session. the dow is up 122 points it was up 348 at the high of the session. a look at some of the other asset classes. the dollar is lower today but higher on the week up .7% for the week oil is down .6% today. suprasurprisingly up a percent for the week as a hole gold down .3% and lower by over a percent for the week as a whole. on the s&p 500, a split between the sectors. four or five in the red. five or six in the green

utilities and health care topping. industrials and materials at the bottom of the pile energy down, 2% is the biggest decliner consumer discretionary and tech also suffering in terms of the weekly performance, stand out loosers this, real estate, energy, financials also suffering this week at the bell, s&p holding on for a 3 basis point gain nasdaq down half a percent and the s&p dipping into the red at the close. >> back in the green, and in the red -- it is flat on the session for a friday welcome back, everyone, to "closing bell. if you are just joining us i am sara eisen with wilfred frost and mike santoli take a look at how we finished the day and the week on wall street higher for the dow first time after three down days. the s&p 500 also eked out a gain, just barely. we took a dip lower into the close there for the dow. there is the s&p 500, higher

again on the day on the week looks like we managed to gain .2%. the nasdaq closed lower today and actually has been down for four straight days but it is still higher on the week by a little more than a percent. and the dow pretty much flat on the week even though it finished higher today the russell 2000 index of small caps closed down about a third of one percent we will talk about the themes, rising covid crisis phasing hopes for stimulus -- coming up we will discuss the coronavirus fallout for the nfl and college football and the recent rise of false positives in the nfl when we speak scuffle about the diagnostic testing company quidel which is partnered with the big ten and the pac-12 conferences. jonathan golub joins us and robert nobles. first to you mike, overall the

strength we saw in the market did not feel like an up we can but it turned out to be. >> from the opening trade on monday i don't think it was an up week. it sort of is an inconclusive performance. the best you can say is in the weather of the week the market kind of weathered a minor test when it backed off a little bit and stopped going down behind of above the pryer trading range. it held onto the idea that it is in shooting distance of the former highs coming into the week the market was running hot. up 9% in three weeks we worked some of that off but some of the positions and sentiment says that maybe, you wouldn't be surprised to see it chop around and back off from here if you want the relieve those conditions earnings in general, the trend is quite good. the reactions to earnings, though, has not been impressive just because i think so everyone baked into their minds conditions around the beat.

>> what about the coronavirus risks? >> i think investors are spending a lot of time looking at scenarios i would say the risk might be priced in, but we think the fundamentals of the economy are much stronger. you are seeing the market now in a holding pattern. the market is in a holding pattern, businesses consumers with a few willing to take risks like the merger we saw today in the financial industry outside of that i think a lot of decisions are being delayed until the election is over we would think the risk is overblown for a prolong delayed supreme court fight justice over the election results we are more hopeful that the winner will be known a day or two after the election is over so the risk is probably priced in, but probably too aggressively at this point >> jonathan what are you telling your clients about positioning into the election? >> you know, i'm not sure that the election is really going to

matter that much we make it seem -- it is great story telling to make it seem like these candidates are so opposite of each other but both of them are going enact a policy of substantial barrowibarrow ing -- borrowing and substantial spending it may be green initiatives under biden and checks cut to consumers under donald trump either way i think you are going to get a similar set of stimulus going forward either way if there is a risk to watch, i think it is the political fight over the stimulus which represent downside short of that, if you look further out beyond, you know, the next couple of months, we think that it is looking pretty positive and those companies that are delivering, they are able to basically recapture their prior earnings peak, which is almost the entire growth benchmark has better earnings in 2020 than

2019 those companies that are able to hold up on earnings are just doing fantastically well and we think they are going to continue to do well. >> why, jonathan did the banks perform so badly this week when they all beat earnings expectations >> if you asked me whether i thought we would get a better result from the banks i would say yes. they were saying the credit risk which was a concern was not as bad. they didn't need the reserve as much activity on the capital market side and invest banking activity was strong matter of fact, if you take a look over the last, you know, several weeks, the yield curve has steepened from in the mid 60s to the mid 70s and that should also give some up side to the banks while i am not a fan of the group in general, i think that this was a very good week for the banks not reflected and there is probably some upside opportunity there in the near

term >> robert, what sectors do you like banks included in that >> sara, the financials are included in that sector, but more -- we are more likely to stick with the ones that are worked out best in this technology-driven economy now, work from home you know, we still like big cap growth tech-type stocks, you know, for the right klein. and we would also favor stocks in the health care space and consumer discretionary for our more growth oriented clients and i cannot forget the industrials sector because i think what you are seeing, the use of digital formats and the like and increasing their sales, and decreasing their costs is making them very attractive for the long term, and in the short-term, too. you know, we like the combination of all these dividends are important and can be useful in a low interest rate environment but it doesn't have to include dividends for the majority of our clients. >> the major averages closing in

the breen for the week let's look at what led the way industrials were the best performing sector. told by tech, communication services real estate energy and financials were the worst performers black rock and morgan stanley were in the on ten performers as a whole. cruise stocks took a hit, kale caribbean, norwegian and carnival among the top ten underperformers on the s&p this week all down double digit percentages. mike there were moments in the week when we thought we had a classic rotation the likes of the tech names are pulling back the week as a whole no clear leadership taking place? >> no, there was not a very sharp message i don't think that the market was delivering. the trend has been better. if you wanted to look at it over the last couple of months, you look at transports, at industrials they have held together fine. the credit markets undisturbed by anything going on so far.

that's a see dent underpinning in terms of the ebb and flow this week i think we have been trying to digest a decent rally. it is the time of year where it is probably sort of make -- i am not sure if we are necessarily going to have a decisive move before the election even though we have been chewing over the implications of this election for so long it will be front loaded and a enormous amount of anxiety over it now have been released i don't think thing are going to get better in a hurry economically in a way they are going to have to chase the kellyanne conwaycal stocks that much further because i think they have already gotten traction >> onthan. >> can i jump in on the point mike was making in terms of mark leadership >> go ahead. >> if you look at all month long you have no pattern of what is leading. industrials have done well for the week and month to date energy is a dog. the tech companies and financial force month that are smack in

the middle and that -- you know, so we are not really seeing a clear pattern. the only thing that we are seeing is that small caps are doing incredibly well and companies that are higher volatility, higher octane names are also doing well and having a terrific run and they haven't in a long time. short of that, it is not like the market seems to be delivering a clean message either for the week or for the last several weeks. >> is that why your sector overweights include technology, communication services, and skegsary, firmly in the growth camp >> yeah. listen i think that robert is actually -- we are really in the same camp that he is, custom is, the companies that are beneficiaries in the current environment, and we think they continue to lead and we think these intellectual property companies are better companies, higher sales growth,

less debt on their balance sheet, higher return on their assets we think it is a sweet spot of it will continue to be so. even if we get -- if you look at every single mini value rotation and all of wall street gets all hot and bothered when you have three or four days whether value goes into favor, but it just doesn't seem to stick. so we think that this growth story continues to do well was i surprised today or this week -- you had crazy good numbers out of financials and you got no response? the mark should be responding to that but i think the long term story is stick with growth. >> robert, what is your least liked sector >> that's hard to say. i would say the least liked one at this point might be, and it is only because the recovery appears to be far out, might be energy at this time. the oil type energy. so, you know, it's just that sector needs -- there is the much competition, too much production at this time. once that passes over, i am not

sure how long it is going to be -- it is going to be some period of time -- then that might become more attractive for vefltors, especially for our clients but at this time we are holding what we have but it's not the -- it's not the one that rises to the top for our growth oriented clients. >> i think a lot of folks would agree with that. one of the most hated ones on wall street. robert nobles, jonathan golub, thank you for joining us. >> thank you. >> pfizer may seek emergency use authorization for its vaccine after the election up next we will talk with pfizer's board member dr. scott gottlieb about the vaccine and its time line. we are back in just two minutes. change in plans. at fidelity, a change in plans is always part of the plan.

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pfizer announcing today it could know by the end of october whether its vaccine is effective and it could potentially apply for emergency use authorization by the end of november shares of both companies trading higher on the move joining us former fda commissioner, dr. scott gottlieb, sits on the boards of pfizer and alumina ed to to ha-- good to have you. >> good to be here. >> around disclosure, what prompted you at pfizer to put out this update today and how

conscious are you of putting updates out for the public to be sure you are not doing anything necessarily ahead of the election for political reasons >> i would put the questions to pfizer i don't speak on behalf the company. i will put my cnbc analyst hat on and former fda hat on and say the statement today is consistent with the guidance that came out from the fda the reality is, the fda put out guidance, which i think was prudent that it once two months data the timing puts you into november on both the pfizer vaccine and the moderna vaccine as well if you look at when the patients got the second dose and waiting two months after the second dose. the euas -- the emergency use authorizations wouldn't be able to be filed until toward the end of november. i think this was transpartsy around the timing and the

process. there is a lot of interest in what the timing will be, speculation around the timetable. i think there was an evident to provide transparency, similarity, certainty, to what that timetable is going to look like. >> there are still those who are wondering about how fast this is all happening, at record speed for vaccine development. doctor, is it reasonable for high risk individuals who are wondering that to wait until safe preventive treatments like the antibodies are out to do instead this early vaccine >> i don't think you can use one instead of the other the treatments are going to be very effective for people. i think they will be very effective based on the data that we have seen i am optimistic about them for people who are at high risk who contract covid, to prevent the progression of symptoms. but youstill need the vaccine for those individuals because even if they use the treatments they are unlikely to have a durable immunity in order to get a durable immunity to the virus you are going to need to use a vaccine

ideally. there is reason to believe that auto you use one of these antibody drugs to help stave off the severe symptoms of covid in someone who contracted the virus it may be the case that you actually don't ever go on to develop a really durable immunity because you don't have a full-blown infection with the virus. the antibodies you receive from one of these treatments serve to supplant your own natural immune response so you never go on to develop a robust immune response patients who take one of these antibody drugs there is a risk that after they recover from the infection they will be in a similar situation as if they had never had the virus in the first place. the antibodies last for a while a month or three months, but once they wear off they won't have a durable immunity so the vaccine is necessary for those patients. >> we are seeing a spike in cases in europe. could they have been avoided what can the u.s. learn? >> i think we would have had to do things differently from a

cultural standpoint. we would have needed to do much more aggressive testing and tracing and had universal adherence to mask wearing, avoiding congregate settings if you look at asian societies, they have been successful at keeping the virus controlled so we would have needed to adopt measures closer to what they were doing we were nowhere near that in western democracies not just in the united states but in western europe as well even the debates we are having here over wearing masks where it has become a cultural and political debate, europe is having some of those same fault lines when it comes to adopting these measures. >> many are blaming the president for the high rate of death in this country contrasted with other countries where we have seen lower rates. given the resurgence in europe do you think there was anything that could have been done differently to prevent the kind of numbers we are seeing in the u.s. >> look, i think we would have

benefitted from a more consistent uniform response to this virus, more federal action, less state-led action so you would have had a more consistent approach across the united states we had state-led efforts that produced regional effects. once the virus becomes epidemic in one region it is hard to prevent it from becoming epidemic in other parts of the country even if they are taking aggressive stacks. i think there were inconsistencies in times in terms of the advice being given in terms of wearing mask, social distancing at a national level that would have been more effective there was a conscious decision to let the decision making up to states for a variety of reasons. i think looking back in some respects that was a mistake. >> on the topic of the president have you been surprised and impressed by the speed of the president's recovery from covid?

>> thankfully, he did recover. he looked like he was on a curve -- a bad curve at the outset he wasn't mounting an effective immune response based on the data they put out about his initial antibody response and he had early severe symptoms of covid. i think he benefitted from the therapeutics i think it is reasonable to special counsel late he benefitted from the antibody drug he received, the early use of remdesivir and maybe the intervention with steroids typically you won't give the steroids early because you want your body to have a immune response he may have benefitted from that as well. it is a good case study perhaps if using these drugs effectively going forward once they are available for the general public. >> we are starting to see hospitalizations rising again. i wonder if there is anything to learn about when people go to the hospital as i understand, this disease

can take a severe turn very quickly. and whether doctors can encourage people to go to the hospital earlier, when they should be, and when they should be on these drugs, if earlier is better >> well, actually, the threshold for hospitalization has kbotden higher doctors are treating these patients at home more aggressively so they are not hospitalizing as quickly. and length of stay has gone down as well. we are moving patients through the hospital because they are recovering faster and more patients are recovering. so the overall number of hospitalizations relative to the number of infection also continue to go down. but you are right, hospitalizations are starting to go up. that reflects the sheer number of infections that we are having around the country right now i think once these drugs become available, the antibody drugs, we have to think about how to infuse these in an outpatient basis because these drugs are going to be used before you get really sick. one of the challenges right now, i am going to be write being this this weekend is you can't

bring patients into a normal infusion center where patients are getting infused with chemotherapeutics and drugs like that we need to talk about using home infusion companies, using them at home, that's something the government needs to be thinking about actively right now in my opinion how do patients get infused with these drugs, in a safe setting >> makes a lot of since. >> dr. gott leeb, thank you for joining us. up next, mike santoli will head to the charts and look at recent equity outflows and cash fund inflows are a red plastic bag for stocks as a reminder, you can always watch or listen to us live on the using the cnbc app

welcome back. let's get over to mike for a closer look at -- >> in the latest week we saw inflows into equities although that's against the longer term trend. gkz got a flow of funds report today. today it shows a slow steady consistent bleed out of equity funds. it goes back into 2018 a bulge in cash inflows that was around the covid shock that's slowly started to come back down.

consistent inflow into debt funds as well. why would we explain this? i don't think it outright shows fear of the stock market because you look at the overall asset allocation -- it includes retail, institutional investors, pension funds and it long term, it goes back 30 years. the equity ratio in include is high with a peak around the year or two of the silicon valley stock bubble we have funds reallocating as time goes on older americans pulling money out of the market as well. it seems like it doesn't make a dent because the stock market has gone up at a decent clip in the last few years to me it is not so much the sentiment indicator it used to be tells you something structurely about what's going on demographically. >> the cash levels, i can't see from the labels where it is at. >> in the teens.

>> fairly high that's a bullish kind of sign, more likely money is going to be deployed into the market than withdrawn. >> it is not darish. it is a cash cushion, but it is not high relative to where it has been over the last 30 years. 2009, the lows, a higher percentage of the overall equity value as well. i don't know that it is an outright central bullish or bearish but it shows you there is an instinct to hold cash. people who otherwise would have been holding bonds are deciding to do cash right now because the nominal yields on bonds are so low. >> mike santoli, thank you. up next -- the firm's director of policy research tells us which stocks are in those portfolios and what stocks are anticipating a democratic sweep on election day.

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we are less than three weeks from election day in the latest data shows investors pricing in a blue wave. strategist 2020 republican suite portfolio underperforming compared to the democratic suite portfolio since august for more let's bring in the director of policy research at stra teamis. thank you for joining us before we get to some of the

specifics in the two portfolios, looking back over the course of the last 20, 30 years, what can we tell as far as the market is doing as to what that is suggesting the election outcome is going to be. >> it is interesting thanks first of all for having me on the show usually the s&p 500 has actually been a pretty good market indicator for what's going to happen in the presidential election if the market is up in the three month period ahead of the election, it is can ied that the incumbent party is going to win the white house f. the market is down in that three month period it indicates the opposition party is going to win. it worked 100% since 1984 and 87% of the time since 1928 this time around the market is up 5.7% as of yesterday since august 3rd which would be the start of that. it indicates that trump should win the presidency what we also do is we create

baskets of stocks ever election cycle tied to either the democrats sweeping this the election or the republicans sweeping in the election the democratic portfolio is outperforming the republican portfolio. that sends the signal that biden is going to win the presidency that's rare because we don't have divergent signals between the mark as a whole and the divergent stocks >> which signal are you more likely to leave. >> it measures performance for the entire three month period. we have a few more weeks left. that is a different than in looking at it just today we do think that ultimately the market cares more -- elections don't matter for the mark as a whole. they matter much more for individual stocks. this time around it could be that you are actually seeing the market as a whole being up either because we have more stimulus coming either sooner or

later. it could be that potentially maybe the market thinks that biden actually might win the presidency but not have a sweep. so maybe we will still have republicans in control of the senate that could limit the policies that biden could do. but we are seeing a die vergence in the stocks that are with attuned to what biden's properties would be if he comes into office or what trump's would be if he has a second term. >> the problem with that, jeannette s 2016, and the market got it all wrong and the fear was the market would sell off big time the trump was elected he did it sold off. then by the ends of the first day it recovered and continued to rally among the sectors most likely to work -- it wasn't that great of a predictor last time around. >> in 2016, the market in that

three monday period was down it anticipated a trump win you have to look at that period. it was a good indicator that trump would win. financials are different this time around. financials did very well under president trump in 2016. they were kind of the outperformers that year. this years ago i don't think they are the signal they used to be for us, the for profit stocks are going to see the change, whether or not you are going to get policies affecting these companies under trump or under biden. >> what is your latest expectation about the possibility of a contested result and what that could do to the market >> you know i think the interesting thing this time around is the last time we had a contested election was in 2000 it was a pretty unexpected event. the market did trade down on that even. we didn't get a resolution until

mid december that year this time the market is more anticipating we could have a contested election you have been seeing that price in and out of the vix as well. i think this time the market would be more prepared for it. the other difference between now and 2 000 is we were entering a recession in 2 0 this time, we are not entering recession. there are other factors at play that will keep the market supported long term. >> where do you want to be if there is no sweep, if the president is a different party than the senate, which could also happen. absolutely i think in those cases you would want to be in health care names. a biden administration would try to support federal health care spending, medicaid, things like that we still think that biden wore better overall fore non-u.s.

stocks versus u.s. stocks and you would have a better potentially trade policy towards china. some of the families that have a lot of revenue exposure to china would benefit under a biden administration even if you have a republican senate. semiconductor names there. >> thank you for joining us. coronavirus cases are on the rise in nfl and college football coming up, we will ask the ceo of diagnostic testing company quidel, which is partnered with the big ten and pac-12 conferences how he is ensuring the big ten and pac-12 are safe as their season kicks off next week ♪ ♪ wild thing i... think i... you know what i think? i think you owe us $48.50... wild thing.

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welcome back time for a cnbc news update with sue herera. >> hello, everybody. here's what is happening at this hour california's governor newsom has president trump has approved his request for a major disaster declaration for that state's massive wildfires, reversing a decision announced earlier in the day. the disaster declaration will allow additional federal wildfire aid. some dramatic footage of the smoke rising from colorado's largest wildfire on record,

containment is up to 56% but there are new evacuation orders this afternoon expanding the area under threat. two more men accused of plotting to kidnap michigan's governor will be held without bond before trial bringing the total the five earlier in the day a judge determined there is enough evidence to send their cases to a grand jury to decide whether they should be indicted. forbes reports president trump has more than a billion dollars in debt, far more than some other estimates forbes also has trump has billions in assets giving him a net worth of about $2.5 billion. you are up to date that's the news update have a great weekend. >> you too, thank you, sue have a good one. up next, covid-19 taking its toll on the sports world with both the nfl and college football having their fair share of virus scares. we will discuss with it testing company and big ten partner quidel after the break. a programming note here, the

cnbc fa summit on october 20th will bring together the country's top advisory firms to explore the state of the markets right now. visit cnbc.com/fa summit to learn more and register. we'll be right back.

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only from verizon. covid continues to reek havoc in the sports world.

the indianapolis colts one of the latest nfl teams to teal with the potential outbreak of covid cases. however four members who initially received a positive test were retest asked showed a negative result. at the college level, bam p.m.'s coach nick saban testing positive on wednesday. diagnostics company quidel partnered with the big ten and the pac-12 for their testing regimen with the big ten gearing up for their kickoff next week the ceo of quidel join us. it is hard to get accurate tests. where are we on that why are we sill getting so many false positives or even more dangerous, false negatives. >> thanks for having me. let me before answering that question just say that i am particularly proud of the quarter we had, proud of our people for having rizzen to the challenge. in the quarter we shipped tens of millions of tests

we increased our manufacturing capacity from a million tests to two million tests and as you know entered into agreements with pac-12 and the big ten to be involved in the largest asymptomatic study to date overall, a great quarter but to your question, you know, i think that frequency of testing does matter. and false positives, as you saw with the colts, will occur regardless of technology when you think about the -- whether it is pcr or antigen tested in a particular run, pcr for example, you could have a small number of false positives in that same run so it's wise then to retest. and that's why you do retest, in order to confirm that, indeed, those samples are positive false positive also occur. frequent test asking repeat

testing quickly will enable those players to get back to practice and, actually employers and employees back to work as well >> yeah, you mentioned your partnership with big ten andback pac-12 both gearing up for their seasons in their conferences have you learned anything by the early test cases here with the nfl and with college football and some of the mishaps that have been going on that you will do different. >> well, it is still early on with the two conferences they will be doing daily testing, first of all. but the frequency of testing is actually what matters. in order the find people that will be tested positive, and then we'll need to confirm those. and then we will study those student athletes moving forward. and we will do the contact tracing and all of those elements that are important. but i think it is important that we take into consideration that testing really is an important part of keeping these athletes

safe but wearing masks and also social distancing is -- all three of those thing are part of the three legged sool stool. >> if we broaden out away from the sports area, how concerned are you about flu season picking up and creating problems for tracking covid in and what type of tests have you developed as a response >> recently we had emergency use authorization for a combination assay, wilfred, that will allow, from a single swab sars antigen tests plus influenza a and b to be tested all at the same time within 15 minutes. i think the potential for a perfect storm given that if there is any incidence of flu you are going see symptoms that mimic each other and so the ability to distinguish between both is critically important in order to keep all of us safe. >> my question as to do with

this, and some of your other tests, you mentioned your earnings and the very strong demand you have seen we have seen it in the stock price. doug, where are these tests being used are we at a point where we can deploy these antigen tests in schools where they can test every day or every week, and in other places where we need to open up our economy? office buildings for instance. >> yeah, first we started with those with the greatest need, health care providers, first responders, folks that i would say are tested because they are in the profession segment. the demand for those tests, though, was about four times what people suggested there would be and we had to ramp up production we are at the stage now where we can slowly introduce some of the other segments i wouldn't say we are at a position as an industry to be ready to test all students as frequently as they need to be tested, however.

i think it is going to require many more manufacturers ramping up and getting to scale. >> doug, thank you for joining us >> thank you >> we appreciate the update. >> sure. >> from quidel. up next, coca-cola is canning tab. the company officially scrapping its iconic first diet soda the reason why and theth oer brands that are on the chopping block right after the break. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪

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to be drained from our public schools and local communities. no more. i'm proud to support prop 15." vote yes. schools and communities first is responsible for the content of this ad. ♪ ♪ ♪ it is the end of an era for one famed cola brand, tab. coca-cola says it will retire underperforming products including the cult favorite tona tab as well as coconut brand zico to free up resources to invest in minute maid simply and the international rollout of coca-cola energy coke said this portfolio reset will better position them to nurture regional innovations like topo chico hard settler and

a lot of anticipation coming in for that one and it is still down 9% or so for the year coke told us a few quarters that they were going to recall the so-called zombie brands that has been sped up by the coronavirus to focus on what's working and to shift their resources there and they've got hot brands that are working and sadly, mike, you're brought in there because the heyday was brought in the 1970s. >> it was the '70s into the '80s and it makes an appearance in "back to the future" in 1985 a lot of people remember that reference. it was synonymous with diet cola and you would say tab, in the same way you say sanka, the decaf coffee and it's become a cult favorite in a lot of way, whether it was nostalgia >> i can't believe this existed before diet coke diet coke was 1982 and that was

before it always existed either way and tab was the '60s i thought i remembered the launch of tab, but i've been doing, that must have been tab clear which was 1992 so i remember when that came out and my parents tried to get us to have that rather than the full-fat coke. my view with all of these is even have diet coke or either have the full-fat version and enjoy it or have a glass of water. same with the seltzers or bud light. water or go hard >> people don't want sugar people do wanot want sugar, but they were ahead of their time. on a more serious note, emblematic of what a lot of companies are doing right now which is this retrenchment ♪ momode to focus on what's working and trying to reset the business and i know a lot of retailers did that that were suffering

pre-pandemic and getting brands that weren't working and whether that involves layoffs or production cuts and just speeding up the shift. >> with coke going into alcoholic drinks, i mean, that shows you that they're willing to take some risks with part of their brand portfolio and not just stick with the old stuff there. tab, 1960s, it was founded and retires next year. >> wilfred, the old commercials. you will not believe, the women in bikinis, tab is beautiful people and just stuff that would never fly today. >> even the original diet coke ads were like that i remember those we've got to go, i am being told very clearly now the triple play and wall street firms rallying ahead of its earnings on tuesday and we'll break down those calls ♪ ♪

"hmm's and ahh's" heard in-call. ♪

analysts rallying around netflix ahead of the streaming giant's quarterly results on tuesday. bank of america raising its 12-month price target on the stock to $670 per share the high of on the street tied with goldman sachs. morgan stanley upping its target to 630 to 600 and barclays upping its target to 570 per

share to $525. nathanson and others in the week shares of netflix finishing the day down 2%. clearly, mike, a slew of upgrades 530 we're trading at now came as high as 670, pretty bullish ahead of the numbers and one wonders how long their extraordinary couple of last quarters could continue and whether they pulled forward a lot of demand because of the pandemic. >> certainly, they're i lot of big questions and they'll try to get pricing power through here, you know, in cracking down on the passwords and essentially stopping the free trials so all of that stuff feeds into it and it's stopped three different times in the 550s and not everything is technical and that shows you that the stock in a growth stock-led market is making progress beyond that point in the last few months even though the fundamentals are in place.

>> as we wrap up the week, mike, and we'll continue to look out for this trend, the growth stocks and whether they continue to lead this market. they did take another week here, outperforming value. we'll also get a ton of earnings and that will give us a glimpse into companies like consumer companies. i'll watch p & g on tuesday, coca-cola, kimberly-clark on thursday and many others, technology industrials because the outlook is key they haven't given guidance to this point so we'll see how they do in the third quarter, but i'm curious to see how they provide any guidance in terms of their comments and the numbers for the fourth quarter and beyond. >> absolutely, it is now going to be more corporate focussed as opposed to nat grow and maybe it will be about politics and handicapping that and it could be a lot of push-pull within the index and sometimes it gets trapped during earnings season because people are taking the stock in a different direction so far stocks have not traded particularly well off their result, but sometimes as

earnings season goes on the pendulum swings back as people adjust their expectations and the setups don't look quite as challenging. >> certainly it's been the case for the banks closing down nearly 2% this week despite pretty strong results from some of the banks goldman, for example, had great results and it was negative as a whole. >> thanks for watching "fast money" starts now. >> i'm melissa lee and this is fast money tonight's trader lineup, pete najarian, steve grasso and tonight on "fast," could the boeing 737 max jet get closer to be back in the air the surprising report from been european regulator and shares of cat clawing their way toward a record rise? how much further can they go from here and we'll get some answers and at 6:00 p.m. a special edition of the fast 5. the bank earnings, stimulus and bringing you the trades. we start off tonight with a big blowout for retail sales going twice as fast as