- [group] yay! - [narrator] you did it, high five! - southern new hampshire university. - [man] that gets a hug. (laughing) - look at that! master's degree, i did it! - i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu. welcome to "power lunch. i'm jon fortt. lindsey bell will join me in a moment retail traders getting taken on a wild ride. shares of viral stocks like gamestop and amd getting slammed

after big rallies. we'll talk about the shifting dynamic. robin hood and td ameritrade feeling the heat from users after halting trading, some heat possibly coming from lawmakers, too. and mark zuckerberg taking on apple during the earnings call first, we're going to start with a big rally a wall street, weeping out a chunk of yesterday's losses for that let's get to bob pisani >> jon, it's been a very interesting morning. we're balancing earnings guess this craziness the s&p 500 i want to show you, we have been moving up throughout the middle of the morning. a lot i think was attributed to when robin hood announced restrictions on gamestop trading

as well as other short names a nice rally here in exact opposite of what happened yesterday when we had what was called de-grossing hedge funds seemed to be doing the opposite today i want to hit the earnings first. we had excellent numbers tractor supply, whirlpool, you couldn't do better on the apple numbers for the most part, these stocks have run up. they simply had a great move already. as for all those shorts out there, it's been a wild day. the most common, all trading down gamestop intraday here, this is

one for the report books i think they were 483 at the high, 112 at the low that's not a typo. we're somewhere right in the middle, as you can see my producer has been doing this all day. 18 trading halts on the up side or the down side when you have aol and ted cruz saying they have to try to get to the bottom of it. >> aoc, yes, instead, bob, point taken. we had a lot of big names the last couple days weighing in on this retail revolution and volatility take a listen. >> i think when it proves is the retail phenomenon is here to stay there are 2.7 million people

inside of wall street, i think they are as important as any hedge fund or collection of head funds. >> as long as we're allowing companies to trade stocks in milliseconds, how can we expect this to be an investor as market until you change that, you can't change what's happening with wall street. >> unless it's one platform or another, this is the new normal. we have seen the internet over the last 10, 15 years really bring a bottom-up revolution. >> if this is the new normal, a lot of people are going to get hurt so is this new group causing a dramatic shift in overall market valuations lindsey, i wonder what your take it at the same time we see this

volatility inspired by this movement on reddit and perhaps beyond that. what is the investors who is not necessarily a part of that reddit-inspired group, what is an investor going to take away from it? >> if you look at the broader market, it's a big up day. of course it's following a big down day, but it's coming right after whatyou said, on the day where the speculative trades are down huge, and also some of the big names that reported are very good, but the stocks might even be moves to the down side, but the market overall is still up what that's telling us is the rotation we started to see at the end of last year and this year into more value-oriented or cyclical stocks is definitely working out still. what you need to realize is the

fundamentals, which have been a bit disconnected still do matter, they're still in place, having a good earnings season, wee gel more news on the vaccine next week, more news on the stimulus, which has been a key driver on this market for some time we heard yesterday that the fed will still support the market from here. that's all a reason to stay in the market when apple reports a quarter like it did, the china business up nearly 60% the bar was so high that the stock is down, does that perhaps indicate that the overall valuations have gotten out of whack? >> well, i think pulling out one

of the largest stock in the s&p 500 within one of the most cite niced sectors the last few months, because of the high valuations it achieved over the course of the pandemic and the end of last year, i don't think you can point to apple and say that's telling you the valuations need to come down the expectations were extremely high for that stock going into earnings the stock was up almost 80% going into the reporting period. you saw estimates move higher, and they had a blowout quarter, for sure i think it's investors taking a breath here and really assessing where there might be additional value no one better to talk about

valuations than the dean of valuation, the professor of finance at nyu stern school of business what am i to take away from facebook being flat basic i down a half percent, appear being down after the relates they reported and giving the moves we have seen the past few months? >> i'm going to disagree with lindsey. there's an inconsistency in a story. if it's going to come back as strongly as people claim, how will the rates stay low? this strikes me as delusional. it would look for excuses for the up days and down days, but i think i would put my seat belt

on this will be a very rocky quarter, in my view. >> when i look at valuations here i'm seeing the s&p 500 on a forward basis that's trading -- following the march bottom, which was around 25, 26 times. i think what a lot of people are underestimating is how earnings can really impact that multiple going forward. right now the market is expecting that earnings get back to breaking 2019 break even by the end of this year i think what you're seeing from the earnings season this quarter and what i expect as the recovery picking up pace as the vaccine is distributed and the year progresses is that those number will move higher, but i do hear you the biggest risks in general are inflation and interest rates, but i do believe

the fed is going to do all that it can to make sure those things remain manageable. >> all that it can are the key words. the fed only has so much power and no more. if inflation goes to 3%, does anyone in the universe believe the fed can keep rates at 1% i don't think so i think that earnings can come back and the market could still by overpriced i value the market, and i still have prubl trouble getting 5% o% what do you make of retrail traders, maybe others doing with the heavily shorted stocks, what is it signals about the overall

markets? >> you know, my reaction is a pox on both houses i've never been a fan of hedge funds. i don't think many bring much to the table and think charge absurd monies. for the investors, they're pretty open about the fact they couldn't care less about them. this has become a game the question i would ask for hose reddit investors is, what is your end game if you want to drive a couple hedge funds out of business, maybe you'll succeed, but do you want to end up with amc and gamestop stocks? they have troubles. >> that's what i want. a couple days ago i tweeted out that this will end in tears. there's a lot of people on twitter are like, for who?

the short sellers? this was likely to come down for some reason or another it turns out, perhaps part of the reason why is that the brokeraging are restricting some trading, retail trading in these stocks, but whomp then were they planning to sell is to your point >> i think people are learning the wrong lesson people believe it's going to be a great company, whether you agree with them or not is there anybody thinking we're all going to go back to malls and gamestock will come roaring back or amc will come back as the movie theater of the future? i don't see anybody buying these companies because they think

they have a rosy difference. for those, i might be looking at the wrong story. >> wow we'll continue to watch this story play out, once again hoping that retail investors primarily, certainly by out there. aswath, thank you. >> thank you. sands reporting a loss for 2020 we'll talk to the new ceo about his plan to bring life back to las vegas. plus, facebook's ceo mark zucker book and apple's tim cook taking the gloves off a bit. much more "power lunch," next.

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las vegas sands reporting a loss it reported rob goldstein after the death of sheldon aidsheldon this month contessa brewer has the exclusive with the newly appointed ceo. >> rob, great to see you, congratulations on the board naming you to this position. you're coming in at such an

incredible time with the pandemic raging globally you had started to see some recovery in macau. it's normally some 65% of your business can you tell us where it stands and the licenses with macau? >> we're obviously a long way away from 2019 we have the best in class assets in macau the londoner is under way, observed you have partially. obviously the pandemic has reaped havoc with our numbers. access is still restrictive. covid testing is still in place.

it's challenging the good news is china is the primary audience china is getting healthy from an economic perspective also, the demand is there. the access is more challenging do we believe in macau certainly. do we believe it comes back? yes. the question is when, we don't have the answer for that we know it reins there that's the important thing. >> john dupree said the policy remains clear as mud. >> is it in danger, do you feel like in jeopardy >> not in the least. we've been there since 2004

we've done everything and then some we see that by a bunch of hours, plus we built nongaming assets our hotel inventory or retail convention space, large-scale that' that's rights all 30-plus thousands we have very good with china. i think you know we invested about $2,000 in 2018 in the london her i think our stay in the market for many years to come we hope that the government lets

us invest. we're strong believers in macau. >> rob, let's talk about the u.s. market. and then you mentioned last night on the call, you are readily running and gunning for a casino license in new york explain where you see the opportunity in the united states we've been looking at new york for a long time. i think i joked about 100 years of interest. we build iconic buildings, resort destinations. they're not just gaming has. they're not just slots in the box. we want something that drives tourism, now just playing in the new york area, but trades on tourism. we don't simply build buildings.

everything we build talks to tourism, talks to nongaming as well as gaming, large hotel development, retail, restaurants, entertainment that's the key to how we think about new york new york is a fantastic city when i hear people question about the viability and long-term future of new york, i'm confused it's new york. it's very special. it's near and dear to us here in this building. we think new york will be a po po powder keg of opportunity. >> your late founder, sheldon adelson, whose loss is deeply felt among you, and i'm sorry for that he had an opposition to internet gambling where do you stand on that

>> first, i'm not departing. his considerations were ethically driven look what he did in las vegas. we've had thousands of people we've paid all year. sheldon would not back down. we're the only company that didn't lay people off. we didn't fur are furlough sheldon stayed the course, because he felt ethically. with digit at, he was concerned about underage gambling, and that people couldn't afford it before he passed away, we had many discussions, and we talked about it very candidly sheldon understood the power we took him to a place where the technology made him feel comfortable. we have a land-based giant

that's our bread and butter, that's our core. it's a operate good business digital is a different business. we're looking at it. we're looking at what makes sense, what doesn't, we will not just be in digital to be -- if there's an intelligent approach we'll be there if not, we won't. >> it's causing a lot of chatter. rob, thank you for joining us. appreciate it. good luck in this new role. >> appreciate it be well. thank you, contessa, as well we're going to continue to monitor the markets as the fallout continues. shares of heavily shorted stocks like gamestop and amc getting slammed as some broker apps block new purchases of the stocks plus, beyond the speculative plays, apple and facebook coming off earnings beat. why mark zuckerberg and tim

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a lot of excitement today over gamestop and other volatile stocks we also have earnings from

facebook and apple julia boorstin joins us with details on mark zuckerberg and some pointed words for apple and tim cook >> that's right, jon mark zuckerberg joining that apple's new operating system will help small businesses to reach consumers, saying the ios 14 will force users to ask permission, facebook uses that info to sell targeted ads. zuckerberg also attacked apple by using control of the app store to benefit the imessage. >> we increasingly see apple as one of our key competitors imessage comes preinstalled on every iphone they preferenced it with private apis and --.

>> also accusing apple of antitrust violation. apple's ceo made a veiled attack on facebook's privacy practices. >> if a business on built on data exploitation, on choices that are no choices at all, it does not deserve our praise. it deserves reform >> this intensifying battle come as both companies are under the regulatory microscope. >> i shouldn't say the gloves are off there, they're still being quite couched. lindsey, i wonder at what point does this become relevant to investors? is it just a matter of looking at this ios 14 update when it comes out to see if it does have an impact on facebook revenue, or do you perhaps look at mark zuckerberg being ability to set up this conflict, saying we see them as a competitor

it's one of the few companies bigger than facebook and could maybe make it look less of an antitrust threat >> when you think about zuckerberg and facebook, he's got a lot of heat on his back with some of these antitrust lawsuits, data privacy, censorship concerns. think the escalation and tone of this disagreement, the affect it was in the first very official commentary on hadis conference call, he's raising the bar it's more than just a tech world rivalry. he's showing his hand, maybe signaling to investors that this is going to be a greater problem for profitability and top-line sales growth in one of his biggest businesses, which is advertising, in the quarter ahead. he seems to be sweating this out a bit. if you're an investor in

facebook, it's something i would probably take into consideration and probably dig more into >> yeah. well, i still can't help thinking it's a nice opportunity for goliath to play david. julia, thank you as the reddit revolt continues, broker apps are restricting some trades. we'll speak to j.j. kinnehan about this next. are people still stockpiling essentials the ceo of boxed will join us next i'm searching for info on options trading, and look, it feels like i'm just wasting time. 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 ♪ (naj) at fisher investments, we do things differently and other money managers don't understand why. visit tdameritrade.com/learn (money manager) because our way works great for us! (naj) but not for your clients. that's why we're a fiduciary, obligated to put clients first. (money manager) so, what do you provide? cookie cutter portfolios? (naj) nope, we tailor portfolios to our client's needs. (money manager) but you do sell investments that earn you high commissions, right? (naj) we don't have those. (money manager) so what's in it for you? (naj) our fees are structured so we do better when you do better. at fisher investments we're clearly different.

welcome back, everybody. i'm sue herera wisconsin's republican-controlled legislature is closed to repealing the mask man dade put in place by the state's democratic governor. it's one of several states around the country where lawmakers are trying to limit the availability of governors to enact emergency measures to fight the pandemic this afternoon, the pentagon says it is evaluating a request from the federal emergency management agency for help administer the covid vaccine

a spokesman says it will be reviewed urgently but carefully. an official says thousands of troops may become involved in the effort the cdc says 26.2 million doses have been administered so far, compared to fewer than 25 million yesterday. as anger grows in europe other astrazeneca's ability to deliver as many vaccine doses as expected, the world health organizations is urging governments to be patient and not fight with each other over the limited vaccine supply you are up to date i'll send it back to you, jon. let's check the markets. the dow is up about 500 points translating into more than 1.5%. the s&p likewise up less than two, the nasdaq up 1.5 let's look at the wild ride again for gamestop today the range today a high of $482 a

share, a low of $112 right now it is down, let's see, 34%. a lot of traders blaming this big drop on restrictions put in place by trading firm like robin hood kate has been talking to them. >> robin hood is the latest firm to stop clients from buying gamestop and other heavily shorted names. it's been a popular pick among younger investors say they're restricting to transactions to close only you can sell, but not buy volatile stocks. the list includes american all alliance, amc and others that have caught the attention. they also raised margin requirements and a new one just this hour,

getting word a more behind the scenes players, apex clearing told clients they were restricting to sell only that firm clears end custodies for me companies meanwhile, margin requirements were raised by some. we have everyone from ja rule to others, and despite blowback, this is generating new, robin hood saw the most downloads ever robin hood ranked number one overall in the apple app store reddit came in at number two. >> yeah, on this story, it goats a little heated with tyler wingle voss, and me. a word about that. i have no problem with his

opinion, but in this case, his opinion wasn't supported by the facts. here's what he said. >> frankly the hypocrisy of the political leaders who say you can't run your business during the pandemic, we won't pass a stimulus bill in time, and oh, by the way, now you can't trade. you know, what is the next thing they're going to control and say you can't do >> the truth is that political leaders have disagreed about how much to shut down businesses they disagreed on the need for stimulus and how much, and there's no evidence that particular political leaders are responsible for what some of the brokerage did here so i challenged winklevoss on that, because accuracy is important to me. we now have representative alexander ocasio-cortez and republican senator ted cruz both

calling for inquiries into what's happened with robin hood. the very far right and far left ends of the spectrum in congress so i'm not sure what winkelvoss was trying to say there, but he didn't quite say it accurately this was difficult for brokerages to deal with, but there are a lot of retail investors upset about the way this has been playing out. what do you think happens from here in the explanations, and in retail investor activity >> i think when you think about the retail investor and the brokerages that service them, the customer is the number one focus for those firms. without them they don't have a business i think from the brokerage perspective, sure, we all need to take a good hard look at our policies and how new technologies may be impacting us our others, but i think that

really the markets have never been more open to the retail investor we have zero -- as a retail investor enters this new world, a more high-paced world of trading, they need to remember we're out there to democratize and others, part of my job is to educate investors about the marketplace and what short selling means, things like that, and we will continue to do that, but we will also continue to look at our policy to say make sure we can prove our business to better serve or customers. >> it's tough when traders, i suppose when tools are disappearing mid process for more on how brokerage firms are handling this, let's bring in j.j. kinnehan

a lot of people upset about this action we're just talking about, the tools they were using to trade disappearing in their hands. they thought maybe they could buy on a dip, they can't what is the justification for that >> so, jon, i want to clarify the message that we have a bit i can't speak for other firms, but i can speak -- i think some people misinterpreted perhaps what we said at td ameritrade. you can still buy any of the stocks you can sell the stock you own can't go short but these stocks are hard to borrow so right now there's nowhere to borrow it from, so you're not shorting the stock if you want to trade the stock, absolutely now, have we put higher margins on things? absolutely we have why? this is unparalleled trading in terms of volatility.

people want to trade options i traded options professionally for 21 years i very much believe that volatility provides opportunity. the however, lid sit hit on something important. that is education. if you want to buy calls with us, buy puts with us, go ahead why? you can define that risk you know how much you can lose, the premium you're putting up. we are now allowing people to sell calls naked short why? in theory that stock could go up forever. you're going to say, well that doesn't happen to the stocks i buy, but of course, but in reality that could happen. we saw an unparaleld move in gamestop as well as others in the past few days, so we know this can happen, and we're putting in rules we think make the most sense for the volatility kin right now, but

still allowing our clients to trade in the way most clients trade every day. >> as a cnbc journalist, i don't buy individual stocks, but point taken. >> right. >> it sounds like there's a difference in policy here between robin hood and td ameritrade, so i want to state that but talk to me about this minefield that retail investors have to navigate they enter a trade with a certain set of tools, and midway they're changing does it speak to the dangers, the risks of enters into these perhaps crowdsourced strategy of trading at a time like this? >> well, i think the bigger thing, jon, do you understand the risk when you get into things overall in we build a lot of our business on education we stress it all the time. we sue three -- as people started coming in more and more

to the market. so with that, do you understand the risk of the products you're getting in our job is to provide you access to the market, access to the stocks, which we are doing, but are you comfortable with it? are you willing to take the risk do you have the capital to take that amount of risk? so with that, i, you know, i believe we have done our job overall of providing access to the market i can't speak about other firms. i wish every good luck on it >> a lot of the brokers have had outsized growth a lot of retail

investors are piling in how do you think this will impact the retail investors investing or trading in the future going forward? >> again, lindsey, just like anything, when you have new people in, it's being to me. for five years, we threw up our hands you lived through it all last summer when we had people saying they're not doing it for the right way, so to speak hopefully people will continue the one great thing that i hope comes out is that people still continue to be interested in the financial markets, and along with that, people realize the risks at the same time hopefully that i get it, i can't

predict what's going to happen with this. our job is to give them the best possible experience, the best possible education there's a lot of traders who would appreciate that. >> thanks for having me job. >> if you think you are in insulated, you might be wrong. we will have that story and more of today's big movers. "power lunch" will be right back

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it's time for today's power movers, starting with american airlines the stock is still holds on to gains well off the session american is the most shorted major airline, so there was some thought the rally was a reddit rally. the xrt, retail etf is down big today, still up more than 15% for the week in addition for gamestop several other retail verse caught up in this frienzy we end on general motors, saying it will invest $27 billion in the next five years on autonomous and electric vehicles the goal is to be all electric within the next 24 years well, pantry loading was so 2020 in 2021, many people are anxious

to get out, eat out and go shopping in an actual store. what will that have on e-commerce we'll have that after this break.

welcome back the covid-19 pandemic has fueled a boom for e-commerce companies like inat that cart, fresh direct, and boxed. boxed has seen swells in sales in items like toilet paper and paper towels can the volume last through 2021 but will we see it level off as vaccines roll out. joining us now, the box's ceo. my understanding is that in november when we saw that spike in infection rates, there was a run on supplies once again that has dipped back down to, what, pandemic normal? what do you expect to happen throughout 2021 in consumer behavior >> we are seeing in the data, john, so after a pretty mild summer, when the pandemic came

roaring back in november we definitely saw a second wave of panic buying and so i think over time, especially in '21, '22 and beyond we are going to see a new recall no, an elevated, he commerce buying behavior from the general public that means rural customers, an older demographic, folks that haven't traditionally bought on e customers will continue to come into the channel and stay. it has been a crazy run, when it comes to toilet paper, stocks, and everything i feel like '20, and now '21 -- who knows what's in store? >> i'm sure you are up against some tough comps there in the months ahead as the pandemic got really kind of crazy and you saw sales jump but you also have another part of your business which is software as a service where you help some of the current retailers with their e-commerce businesses how is that going? how do you see that growing as a part of your overall business in

the future >> that's a great point. there is another part of our business, whether it is the b 2 about portion of our company has been attenuated throughout 2020. that as it comes back i hope will be part of the recovery trade and part of the overall recovery of the economy. also part and parcel of that is our now sass business which we just launched this year, to quite boom our first customer is one of the largers, if not the largest brick and mortar chain in asia, they tapped us to revamp their omnichannel experience. >> here in north america tell us color on this new consumer that you have seen enter boxed during the pandemic and how their behavior might be different from your classic consumer. is there a churn rate that you think about? is there a particular chain of events or purchases that tends to make them stickier? >> it has been -- definitely we have seen the data show as you mentioned, john, that the

traffic is stickier. what you are also finding is that demographic wise, et cetera actually becoming a little bit older. customers traditionally maybe thought of buying on line as a luxury are are now seeing it as a necessity. those are folks are really come line has been interesting to see. our demographics are definitely shifting it was already shifting, when we first started when we were mainly coastal, but especially throughout the covid period we have seen it accelerate to more suburban as well as rural areas. >> thank you coming up, we will have more on this wild day on wreath overall, broad averages are rallying, up nearly 2% more "power lunch" is next

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lindsey, we are looking ahead to the final hour of trade. the major indices are higher what do you think investors should keep in mine here >> well, you know, i think there has been a major disconnect between the fundamentals and stock prices right now in the last couple weeks. so i think we are this the heart of earnings season and investors really should look into and listen to what companies are saying because i think if we can reconnect the fundamentals it could be a positive for market going forward. >> what does that mean apple is trading at 35 times a

richer multiple than facebook. does that mean them returning to -- what is fundamentals in that case? >> yeah, i -- you know, i think that investors really need to look for the companies that have lagged in the latest rally and apple hasn't been one of them so i think there is opportunity to be found. >> okay. >> you just need to find it -- >> you have got to leave it there. it is team for "closing bell." >> john, thank you welcome to "closing bell," i'm sara eisen with wilfred frost, as always. stocks charging back from yesterday's selloff. the dow is up as much as 600 s&p, 2% higher what's driving the act first, the wild trading activity in the heavily shorted games like game stop the stock is lower today as is amc and blackberry we have got this spire dynamic covered four all hour long plus the push and pull on