back to what it had been viewed as before. >> i think of the place that's not far from here called american dream if you've not seen it near the meadow lands sports complex. it was really predicated on this idea of having all families and entertainment and all this stuff. oh, boy, they picked a time. >> i think of a lot of hand sanitizer when i think of that thanks to watching "power lunch. it's great to be with you, tyler, in person on the same desk "closing bell" starts right now. melissa and tyler, thank you very much i'm will fred tro frost along with morgan brennan. another day record for the dow but gains have faded throughout the session. a look of what's driving the session. major averages mostly low but the nasdaq back in the green after a big jump to start the year jobless claims coming in worse than expected. 793,000 first-time claims last week and throwback to the gamestop

and amc frenzy, pop stocks are pulling back sharply after a fierce reddit fueled rally in the week or so leading up to it. tillray down 46% we have 59 minutes left in the session, morgan. >> yes on today's show, two key voices, we'll speak with jared bernstein about president biden's relief package and other policy initiatives the administration is targeting later, philadelphia fed president patrick harker will join us to talk about the recovery, the inflation outlook as well as a program to boost jobs in the region plus, disney headlining a busy afternoon of earnings we'll bring you the numbers and expert analysis as soon as they cross. we ghot a big two hours. let's get straight to mike santoli tracking today's market action mike >> morgan, thank you spmuch the market is cooling off, flattening out the past couple

days s&p 500 has been in this really well defined channel we keep talking about. but when it gets to the top and bumps up against that upper end of it, is tended to sort of pause or curl down a little bit. you have some room here before you have to worry about if we have a 3% pullback maybe you're talking about challenging the bottom end there. otherwise, nothing too much changing the trend make some fatigue is all we're talking about right now. take a look at small caps more thanned measured two ways. russell 2,000 versus the s&p small cap. what's interesting over very long periods of time the s&p small kal tends to outperform. 060 stocks, all profitable russell is all unprofitable stocks unprofitable ones taking off that's a big margin of outperformance over a year's time and this shows you the low quality rally, little bit of the speculative edge into this market a lot of study of the retail trader going on. sell side firms keep churning out all this research about the increasing presence of retail

investors in this market ubs had this one this is the percentage of the s&p 500 stocks owned by retail investors. they try to back into these numbers. very, very long-term decline this is the indexing trend, everybody essentially using manage money and all that. you actually curled higher as of last year and picking up from there. so it's obviously between 20 and 30% or so. and that's now on the rise why? well, demographically kind of fits they point out that the blue line here is the peak investing and, you know, growth, wealth building ages and also earning years. what you saw in the '80s and '90s, the boomers were in that 35 to 55 year cohort when you had the tremendous financial services boom and the stock market up valuations expanded. this is what's happening right now with millennials getting into that zone and so arguably, you see where declining as a percentage. this is growth rates of population so it makes sense that now is the time you have a lot more public participation, maybe higher risk appetite among

retail investors and arguably the market could hold higher valuations, guys. >> yeah. nonetheless, looking at that blue line and millennials they're a larger generation population wise than the boomers. seems like there's a long way to go to see more market participation within that generation. >> yes this is annual growth rates of the population within that zone. boomers, so many born in such a concentrated number of years that's why you saw those annual growth rates surging back in the '80s and '90s. >> mike, thank you for that. let's check in on pot stocks up in smoke today. i didn't write that. i would have changed that. worst day ever erasing yesterday's game after a slew of pot names surged amid online chatter. joe saluzzi joins us by phone. thanks so much or good to hear you. thank you for joining us do you think the run-up was more driven by fundamental factors than perhaps what we saw last

month with some other names like amc and gamestop >> thank you for having me i think what you're seeing is something very similar in the style of trading that's out there, namely with these retail investors that you guys were just talking about the last couple of weeks when you saw those gamestops and amc, it was more driven by influencers, i would say the reddit forums and really the high profile influencers which we were hearing from which i was kind of surprise d about to be honest with you some saying they're buying call options and others saying hold the line, nothing wrong with this. those are serious influencers pushing stocks around. this time it seems to be more chat room driven a lot of your guests mentions in the cannabis sector, done this it in the past it's an issue with the retail trader people called it the gamefication of the retail market that's the proper word to use. 35% of the flow is what we're hearing is now retail flow

that's a lot different that's up from about 15% from last year. so, it is different this time but it is kind of the same style of trading >> though i would say that we've seen, for example, fortnite tweeting about trading in the cannabis stock there's an element of influencer even though percentage of the flow out for short sellers in the same way that gamestop and amc had. what about shifting to the other direction and another comparison why therefore is is this different? perhaps it's not from say bitcoin or tesla's surge last year and early this year why are we seeing the raise of this pullback in a way we didn't see the teslas of this world pullback. >> i don't know about that we don't cover any names we're institutional traders on behalf of largely institutional clients, hedge funds, mutual funds, so on we study market structure. we notice and can see that a lot of this retail volume you're seeing is not making it to the

overall market it's being intercepted by market makers it's being traded off exchange we think that's a very unhealthy thing when you don't have diverse market participants trading together in one pool of liquidity. well, that's how you get a disjoint in prices that's how price discovery process kind of fails. and i think you're seeing on day like today or on high volume today almost half the flow is traded off exchange. now, that number is kind of -- you know, hidden because the new york stock exchange and nasdaq and overall exchange volume seeing 14, 15 billion shares traded it's off exchange. we think that's hurting price discovery and see disjoint in prices like you've been seeing. >> yeah. the payment for order flow argument has certainly been thrust into the spotlight with the so-called reddit rebellion congress is getting in in terms of hearings. ken griffin from citadel in to

testify next week, for example what do you expect to happen with that, if anything if there wasn't payment for order flow, then would we be seeing such retail investor interest right now given what it's meant in terms of commission-free trading? >> yeah, morgan. those are great questions. i think what you're going to see next week in the hearing is a big focus on payment for order flow they're obviously look at the guests, ken griffin from citadel and the ceo of robinhood that's going to be really focussed on the mechanics of the market what went on here. what goes on inside the market why does robin -- the big kplint about robinhood they shut down they didn't have the proper infrastructure in my opinion it wasn't people claiming they got a phone call that wasn't proven and hasn't been proven but it's up to investigators to look at that. the problem is they didn't have the infrastructure in place for the capital commitments. they got a call and needed to put up more money. they're offering free commissions and the way they offer free commissions is they receive payment for order flow

one source of their revenue and it's been reported that retail brokers overall took in $3 billion last year in payment for order flow and robinhood was a significant percentage of that 3 billion. so, it makes you wond wonder, d they properly set up their infrastructure were they ready for this these are the questions that regulators need to ask just actually a couple hours ago i notice the department of justice has issued subpoenas that are being reported in "the wall street journal" for some of these folks who are on reddit, some of these retail brokers this is a big investigation. and this turns out to be not the david versus goliath story people were hoping it to be. it's kind of like david versus david or goliath versus goliath. there are big players on both sides and regulators want to get to the bottom of it. >> joe, thank you. >> thanks, guys. another stock seeing a big move today bumble. making its market debut pricing above its ipo range. julia bornstein joins us with

more >> whitney is the youngest female ceo to take a company public bumble raising $2.2 billion in its ipo on the nasdaq. the stock now up about 65% today. the dating company, which includes female-focussed bumble and app popular in europe and latin america has seen traffic surge through the pandemic >> people are really leaning in to a digital first approach when it comes to building their relationships. so prior to the pandemic, you would see people engage on the product and then they would jump into the real world as far as interaction went and this fascinating shift has taken place that we think is here for the long-term, which is part-time are getting to know each other on our products they are spending time on video on audio >> across this app the company has 42 million monthly active users fewer than 2.5 million is paying wolfe is working to grow that

number she is also says there's room to expand beyond dating and to start to make money from its users who want to make friends saying 90% of bumble's dating customers also use its friendship mode. guys >> that was exactly where i was going with my question for you, julia. the fact that she is and i know you asked this, she looking to expand longer term beyond just dating and i guess i wonder how much traction that could have especially given the fact that they are going to have all of that data, all of that more, sensitive data for folks that are there specifically looking for love >> well, that's the thing that's interesting is that they have had these different divisions, bumble bff for making friends and then also bumble biz for people who want to do business networking so if you get people on the platform and you get them hooked with say one thing, like the dating app, then maybe people get married. they have kids and maybe they would want to make a friend who has a baby the same age. so the idea is they want to be there for different parts of people's life cycle, not just a

tool they use only when they want to meet someone >> julia, thanks so much for that. after the break, president biden's approve rating coming in at a sky high 62% in the latest cnbc all america survey. so does that give him some political capital to pass a good economic bill? we'll discuss with jared bernstein. that's next. you're watching "closing bell" on cnbc. ♪ ♪♪ ♪♪ ♪♪

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or visit your local xfinity store today. go and the s&p has just turned positive, just barely. check on some individual market movers in the meantime shares of pinterest higher on a report it was approached by microsoft about a deal to be acquired people briefed on the matter say talks were not currently active. nonetheless pinterest is rating up 6% right now. restaurant brands international is under pressure after reporting mixed results. same store sales at tim hortons dropped 11% hurt by store closures due to the pandemic i should note my dad is a burger

king franchisee. >> you're good about declaring that every single time we are just fraction on the hour app 500 with 44 minutes left of the session. the latest economic data shows the pandemic continues to weigh on the labor market just with weekly jobless claims coming in at 793,000 compared to estimates of 760,000 coming as the biden administration looks to pass a $1.9 trillion covid relief bill that includes more direct payments for americans and extended unemployment support. joining us now is jared bernstein. very good afternoon to you thanks for joining us. >> my pleasure >> so, clearly a good early approval rating on this front. 62%. brings a smile to your face, as i can see. how long is that sustainable, realistically, before we get into the weeds of it do you have to be perfect to keep it above 60%? >> there's a lot of wind in the sails of this administration for

very good condreasons that willp explain that rate. i don't want to predict the future, but should continue to boost it if you think about the way the president is taking on what is so key, not just to the american people from a health perspective but from an economic perspective as well, which is finally gaining control of the virus, not just distributing, producing vaccine, but getting shots in arms it is clear to the president and it is key and at the core of the american rescue plan that those two tasks are completely complimentary. they're not separable. the american rescue plan is calibrated to do just that, make sure we finally get ahead of the covid curve, put the virus behind us, and launch a robust, inclusive, racially equitable recovery that's what the plan does, and that's what the president is fighting for. >> how fearful are you that this is going to be the only major

economic stimulus bill of his time in office i guess we already got a glimpse of how difficult it can be even when all those factors apply that suggest this is needed, how hard is it to get bipartisan support? >> i am confident that this is far from our only bite at the apple. very confident about that. and you know, you said an important word, bipartisan of course we lived in partisan times and we see lots of squabbling going on. the bipartisan support for this plan, i'm not just talking about congress, is actually very deep. if you look at recent surveys, majorities of all political stripes are telling us that we need to do precisely what the american rescue plan sets out to do control the virus, distribute the vaccine, launch the recovery by providing the necessary relief to get families and businesses to the other side of this and reopen the schools.

that's just so important to the american people. i don't care if they have a d or an r next to their name. we have 400 governors and mayors who signed a letter saying get this done quickly. we have support from former economists from the trump and bush administration as well as from prior democratic administrations. there's just a lot of very positive bipartisan energy about getting this done. now, are we exchanging ideas with folks on the other side of the aisle? of course. as we speak. but urgency and getting this relief to the american people quickly is the president's top priority >> jared, as it goes through congress, minimum wage going to be off the table >> the president is committed to increasing the minimum wage. now, there are parliamentary questions which i have to do with the machinations of how this process goes through the congress having to do with the minimum wage and those are -- nothing that we haven't answer to yet. i think from the perspective of

the president and the american people, budget process is not the most important thing here. the most important thing is making sure low wage, essential workers, whether they're fulfillment workers in factories, whether they're healthcare workers, whether folks in the retail sector, whether they're sanitation workers, these are people who are helping to keep this economy going. and we know for a fact that tens of millions of them are on or near the minimum wage, which at 7.25 in some states in this country, that's the federal level, other states raised it above that is nowhere near a living wage. that's something the president intends to do something about as quickly as we can. >> yeah. just to shift gears a little bit. the president was at the pentagon yesterday, one of the things he unveiled is this department of defense task force. had a phone call with president xi yesterday as well let's talk china here for a minute you kind of can't look at or strategize national security and not think about tech you can say the same thing about trade and not think about

tariff so are we going to see some of those duties, levies, sanctions stay on or are they going to get removed? >> you know, one of the -- when i was a cnbc contributor, i would play all kinds of music and answer that question but right now, i'm trying to be careful to stay in my lane and not talk about things that have national security implications what i will say is that -- >> but there's economic implications, too, right >> i was going to get to those i've worked with joe biden for a long time. one thing you'll hear from him more than most other politicians is that we have to help our manufacturing sector we have to make sure our manufacturers can robustly export into global markets now, in the prior administration i think it's clear that the efforts in that regard were not successful the manufacturing sector was actually in a recession before the crisis and that's clearly unacceptable. as the american rescue plan gets this economy to the other side of the crisis, so we're poised

for a robust recovery to finally get launched, that's when you're going to hear the president start to trot out the recovery package, jobs, building back better, issues like how we rebuild our manufacturing sector to connect them to global exporting markets will be unveiled >> some very impressive jobs in your career, jared, but nothing more so than when you were a cnbc contributor i'm sure you would agree i wanted to pivot a little bit and look forward over the next four years i know it's not going to be in this stimulus bill, but we had elizabeth warren on this show a few weeks back she was calling for a wealth tax. one question i have, which never seems to come up enough in the debate relative to things like a wealth tax, is whether you would consider the administration would consider looking at the step-up basis for capital gains and rethinking that part of the tax code >> so, this is a great question. it's something that the president talked about during

the campaign and in fact, it was one of the pieces that he consistently pulled out and mentioned that's on the record in terms of the tax plans the way the president thinks about this, he's allegatiso said thisi want to underscore it. temporary measures toeb. permanent measures should be paid for we get to the recovery plan when we start thinking about building back better so that on the other side of this crisis we build back a more resilient, more equitable economy that gets deep into the investments of clean energy, childcare, housing, racial equity, those will be thought of more permanent programs and require pay-fors. step up basis is something the president has, in fact, referenced in the past. >> jared bernstein, thank you for joining us >> my pleasure still ahead, we talk more about the economic recovery when we're joined exclusively by philadelphia fed president patrick harker. plus, some robinhood users

are taking out their frustrations by showing up at the company's california headquarters we're going toakyothe veext. te u er sarah, did you know geico could save you hundreds on car insurance and a whole lot more? hmm. so what are you waiting for? captain ahab to help you find a parking spot? thar she blows! whoops! loading zone. darn it. pull hard to starboard! too small! seriously? because it...ugh. oh! follow him! steady... steady... oh! thunderation! to the northern lot where there be parking spaces as big as whales! geico. see all the ways you could save.

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welcome back the fallout from robinhood over the gamestop frenzy is building with frustrated customers now showing up at robinhood's california headquarters to get answers. kate roony is there with that story. kate >> reporter: hey, morgan a handful of robinhood customers

come here to the company's headquarters to vent frustration about not being able to get in touch with that startup about certain issues with their accounts police have also been called over here multiple times in recent weeks records obtained by cnbc show a total of 10 incidents at the startup's headquarters from january 28th to february 9th in one case, a man threw a t-shirt at a security guard's face another vandalized a sculpture here most extreme so far someone allegedly threw dog feces at the front door this week we saw one man kicking and banging on the front door. we spoke to another robinhood customer who says he drove 2,400 miles from indiana after losing $50,000 trading nokia. he says he was locked out of his account. robinhood declined to comment but after we reached out they did get back to one gentleman we spoke to and resolved his issue. these are just a handful of robinhood's 13 million customers, but the experiences

do really echo what we're hearing from other users and more than 100 complaints to the ftc in recreant weeks. guys, back to you. >> kate, yes, 13 million total, but also this number of complaints certainly physicall pales in comparison to the number of new account openings just this year >> reporter: that's right. they have added by one estimate as many as 600,000 in one day. so, that's what venture capital investors see in this company. they have seen social media tech growth and engagement and in the eyes of venture capital investors and those in silicon valley, this company is still going blases and it is still very much on track for an ipo. >> kate, i just want to go back to something you said that one of the men you spoke to said his issue was resolved what does that mean? especially when you're talking to people that are driving these long distances because of how much money they lost >> reporter: it's interesting. he is here at robinhood's headquarters today he said he was able to get access to his money but the

bigger issue had to do with what happened with gamestop last week he still believes that the shutting down of certain trades was unfair that is really the reason he says he's still out here protesting and plans to be here for the rest of the week so it is more about the bigger picture and sort of the cause that he now says he's advocating for versus his personal account issues >> kate rooney, thanks so much. time for a coronavirus tracker. some good news on the vaccine rollout. dr. anthony fauci appearing on nbc's "today show" all americans can start getting vaccinated by april, earlier than some previous estimates people fully vaccinated against coronavirus can now skip quarantine even if they're exposed to someone who tests positive, according to new guidance from the cdc. in the meantime the u.s. continues to add close to 100,000 cases per day, the cdc issued new guidance recommendations americans wear two masks. cdc said studies show any mask

is better than none, though. it's time for a cnbc news update >> here is what's happening at this hour. impeachment managers say there's little doubt former president trump knew his words could start a riot and that his actions merit banning him from ever holding public office again. >> trump knew exactly what he was doing in inciting the january 6th mob. exactly. he had just seen how easily his words and actions inspired violence in michigan he sent a clear message to his supporters he encouraged planning and conspiracies to take over capitol buildings and threaten public officials who refused to bow down to his political will >> also on capitol hill, workers replacing the final pane of glass damaged during the insurrection some senators of congress asked some of the damage be preserved

as a reminder of what happened and the cdc is expected to release new recommendations on school reopenings as soon as tomorrow with guidelines on vaccinations and social distancing catch the news with shepherd smith tonight for more on possible requirements and the science backing them up. back over to you >> thank you so much for that. still to come on "closing bell," shares of home builder taylor morrison off to a strong start. getting a boost on the back of earnings we'll speak with the ceo about those results and what she's seeing in the housing market

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welcome back home builder and developer taylor morrison has its shares up about 2.5% today on the back of earnings yesterday. the company saw 46% growth in its net orders from a year ago and entered the year with a record backlog of 8,400 homes

valued at $4.2 billion joining us now on first nbc interview sheryl palmer. >> good to see you thanks for having me. >> we know housing has been on fire growth number like 64%, can that pace continue in 2021 as vaccines roll out, as people start to rethink their living situations, the economy fires back up, how far are we into this cycle >> i think it's a new cycle. i think when you talk about what we have ahead of us, you almost have to take a couple steps back and look at where we were pre-covid days i mean, i think about first quarter of 2020, it actually started very strong. '19 somewhat moderated come into the year 2020 pretty strong and then obviously at the end of march we all know what happened. and we took a pause for, you know, good 60 days and then for a number of different reasons we have seen that demand very strong.

so when i look at the numbers reported yesterday for 2020, you know, that's with consideration of really a slowdown during the second quarter we also guided yesterday to closings in 2021 of somewhere up 18 to 20%. you already talked about our backlog numbers coming into the year it's a very good sales environment today. >> yeah. i'm curious where you're seeing the most demand, the most strength speaking to the ceo of martin marietta yesterday he was talking about the hubs in terms of migration and what they're seeing how that's affecting their business this morning we had the ceo of zillow the great reshuffling what are the geographies and locations where you're seeing -- where you're seeing that robustness right now and how does it speak to where people are leaving, where people are moving >> it's a phenomenal dynamic we're seeing out in the marketplace. what i shared yesterday is we're seeing strength across pretty

much all geographies as well as all consumer groups. and that's a shift from a few months ago i mean, when we first came out or when we first came into the covid environment and sales started picking up, we really saw traction with the young millennial buyer they were wanting to get out of apartments, maybe out of mom and dad's basement and that has really moved across all consumer sects the 55 plus lifestyle buyer was the last one that we saw come back you know, because they weren't really traveling for all the right reasons. but given all of our virtual tools we're seeing them in a big way and i will tell you we entered almost a new normal when i look across our consumer sects and our product lines. >> that's all the good news of which clearly there was quite a lot. what about some of the pressures? are you concerned about rates rising are you concerned about raw material costs >> yeah. so let's take those both separately because two very

different topics when i look at rates, i think we have all indications that rates will stay low for next 12 to 24 months and we are in historically low territory even though we might have seen 3 or 4 movement over the last week or two when you look at the buying power of the consumer today given rates, they have about 20% more buying power. so i look at that $300,000 house a year ago and what that was costing them on a monthly basis, they can either buy a lot more house or obviously what we're seeing them do is both buy larger as well as we're seeing them equip the house with a lot more amenities on the production side, you're absolutely right we are seeing tremendous pressures. and i think you have to put it in perspective go back six months, you know, second quarter last year, we were tracking to build about annualized basis about a million homes a year and the end of the year that's about 50% higher where we're tracking at 1.4 to 1.5

so that's putting tremendous pressure on the supply chain just in the numbers before you consider any of the impacts of covid and plant shutdowns. so it's driving commodity prices up it's really putting a stress on the labor market and different markets we're seeing that stress point at a different point in the construction cycle maybe elongating the construction cycle in some parts of the country but there's always something that we're dealing with. and right now we are dealing with higher costs and there is room as you heard and you heard from zillow this morning, we're seeing prices move and the other phenomenon we're seeing which i think is probably most interesting is we're seeing the differential between new homes and resell market very, very close when that happens, it creates a real bias for new because if i'm going to spend the same amount of money, i might as well have a new home and i think when i consider that and then we added our live well

team, live well program last year to help really make sure that everyone knew that our homes were safe with air filtration and water, that's only just helped us even more. >> wow well, thank you for joining us, sheryl. >> thank you so much for having me have a great day. >> you too stocks up 2.5%. up next, pot stocks fade out. bumble wraps up its first busy day of trade we're going to take you inside e rk ze enclinthmaetonwh "osg bell" comes back at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. stay restless with the icon that does the same.

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"closing bell" market zone cnbc mark santoli here to break down the crucial moments of the trading day and stephanie link with us as well. very good afternoon to you, steph. let's kick things off with the broader markets. at the moment we're essentially flat on the s&p. fractionally low on the dow, fractionally higher on the nasdaq and the russell is fractionally low itself. mike, clearly we had a great run of late. are we more or less overbought than a couple of the recent peaks late last year and early this year? >> last couple days it's sort of cooled things off enough that it's not too extreme at the moment i think you can measure these things various different ways. when you had that at the very peak of that 6% rebound from a little 4% drop, that's what we had over the last couple weeks things were looking like they got a little stressed. small caps look extremely extreme if you want to focus in on those but there's two ways that an overbought market can kind of gather itself together and one of them is by doing not much of

anything for a while maybe you pull back a little, maybe go sideways or short, sharp, declines can sometimes also do it so pretty tough to handicap how it goes from here but nothing is really changing the trend as you observe this market here. >> yeah. steph, what changed the trend? what are i guess those key things to keep an eye on those factors to watch given the fact we do have the s&p basically hanging out at 3,900 >> yeah. well, look, the narrative remains the same and it's still very positive for risk on assets or equities, if you will right? we have incredible amount of stimulus, both fiscal and monetary we're going to get more fiscal by the end of the month of looks like 1.9 number, which is not a watered down number. that's what it sounds like any way whichis a lot more stimulus, 55% of u.s. gdp if you add the two together, fiscal and monetary policies that we put in place since march of last year that's just enormous then when you add the fed not doing anything and they said that to us yesterday, they're not going to change any time

soon in terms of their strategies, and then you have the covid numbers actually doing better and you have vaccines and the distribution doing better, you add it all up, and it looks really good for growth and gdp and looks really good for earnings we might, we might, morgan, see 48% year over year growth rate number in the second quarter i think 1 q and 2 q will see explosive growth and we're positive in the fourth quarter year over year .7% but it's still growth nevertheless. we could pull back any time, but i want to stay in the markets and i want to stay on cyclicals more than kind of defensive growth because i do think you get that operating leverage from the cyclicals as the economy recovers on days like today, when the cyclicals aren't outperforming, i'm nibbling a little bits the one group that did outperform today or is outperforming in a big, big way semiconductors are just on fire today. >> yeah. so more juice in the reopen trade. we'll dig into that more first, cannabis stocks giving

back a lot of yesterday's huge gains. frank holland has the details there. frank? >> hey there, morgan cannabis stocks off the high that reddit took them to yesterday. the charts, med men biggest fall today down about 62% tilray down big as well. generally we are seeing more volatility in the canadian cannabis stocks because you can trade them on robinhood and short them as opposed to u.s. producers you cannot on both accounts u.s. operators have higher sales, better fundamental and more poised to take advantage of u.s. legalization. u.s. stocks down but not to the same degree as their canadian counterparts back over to you >> steph, i want to bring you in on this conversation with cannabis names it's kind of curious to me that the canadian names have been trading the way they have when it's really been more of a u.s. legalization story that i think has been fueling this, at least up until recently.

>> this whole thing is reddit redo, right? the way these stocks are trading is incredible. and it's even after today' correction the alternative harvest etf is still up 85% year to date, morgan. that is still enormous, enormous number when we know this flies right into the face of a lot of supply out there, a lot of competition. operating losses across the industry, even growth has 2.1 billion of cash on their balance sheet but they have operating losses so i just can't do that. that's just not investing in my mind it could be for other people there will be winners and losers but this is crazy action and i just want to stay far away from it the one name you can buy that's old school that has exposure is constellation brands i don't own it i don't recommend it it is expensive for what you get but that one at least has fundamentals i can analyze. >> mike what are the volumes like in these cannabis names the

last week compared to the gamestops of this world the prior couple weeks and how does both of those compare to volumes in the rest of the market? still pretty elevated as we look at things in any kind of traditional long-term comparison >> yes i don't think we got in the cannabis stocks quite the sustained levels of massive volumes that you saw in things like gamestop and amc in particular during that late january run. some of those stocks maybe dozen reddit stocks were accounting for 5 to 7% tape volume for those day which is is just crazy off the charts considering they have very small market caps in aggregate. this is the counterpoint to the fact that we have this orderly up trend in the big cap indexes. the macro forces are all in one direction is you have these side shows going on at all times, whether it is these eruptions of volume in the cannabis names looking at penny stock volume, we don't track that directly but it's off the charts right now. options trading, people are just piling into that edge of the market where it's just kind of

like these binary trades that's the other side and can create some kind of instability. >> corporate america may be warming up to bitcoin. mellon announcing its formed a new unit to hold, transfer and issue bitcoin for asset management client. musk saying it plans to give merchants the option to receive payments in bitcoin later this year coming a few days after tesla announced it bought 1.5 billion worth of bitcoin seen as further legitimizing the crypto currency bitcoin surging to a new high at one point crossing 48,000 it's at 47,000 and change at the moment, still up 5% on the day mike, clearly this is taken overall good news for bitcoin bulls. i just wonder, though, whether there's a different take people should consider that rather than seeing all of these stories crossing as further reason to see iterally, to suggest that we've kind of priced in a lot of good news already and i guess the further point that the likes

of bny mellon allow it to be traded and to be a custody, they're not doing what tesla is doing which is buying the product and therefore creating more of a bid for the price. >> right it seems like -- yeah. granted these are not necessarily the early adopters of the financial services industry and also, what they're doing is just creating the capacity to accommodate transactions in bitcoin or asset flows in bitcoin if and when their customers want it. so, i do think there's a general sense of established businesses deciding they want to have capabilities, they need to be open it to there's sort of, hey, i guess this is the thing. let's get ready to do it as opposed to, you know, people in a very high conviction way throwing real money. but the news flow is very positive you're seeing the price react and i don't know if that's really going to change what's interesting is this can almost be self fulfilling. this thing that the world was not necessarily asking for as a separate digital currency, just by force of how much money is getting put in it and the

infrastructure being built around it it can become the thing it never needed to be. >> yeah. i mean, you're adding value to the store value here to your point, self fulfilling prophesy. bumble making its market debut today that stock surging 56% at 31 founder whitney wolfe is the youngest female ceo to take a company public and became a billionaire on paper today she was on "squawk alley" this is what she had to say about dating in a post-pandemic world. >> as the world slowly transitions back to normal, we think we have this massive opportunity to help people meet each other in a seamless way, in a way that maybe feels safer than the historical opportunities going to a bar or concert or to a crowded place and even as the world completely goes back to normal, the ease and the opportunity that online dating offers will be here to stay we really think that this is a seismic shift for the better,

and we think this is a long-term industry with long-term staying power and long-term meaning both during and post-pandemic. >> yeah. stephanie, just looking at the first day of trade for the stock, it would seem at least today and investors agree with that i think the other piece of the story is whether it's ipos like this one or all the spaks coming to market. there are so many more stocks to trade than there were a year ago. we were talking about a short supply of stocks not that long ago. >> well, i just think at the end of the day focus on the fundamentals and i am a little uncomfortable in terms of the spaks and how many have come to market just in this year to date it's just incredible amount. but i focus on fundamentals. actually i don't own bumble but i do own match group i like the online dating business in general. the market is 3 billion. it's going to 4 billion in the next three years the penetration rate is only 4% going to 6% in the next two to three years. these guys are the leader. that's what i like to do i like to buy the leaders in

every industry if i can. possibly on sale, right? and so, they're the leader they've got good products. they got margins they're established. they got size and scale and it is a reopen. i have a lot of reopen names in my portfolio because i really do believe those companies are still down and out relative to some of the other secular growth names we have seen or even the cyclicals for that matter. so i think this one -- this industry makes sense you pick your name of what you want. >> mike, the demand for these types of ipos is insatiable, up another 60% on day one massive day one moves for these types of ipos. >> yeah, this type of deal really checks all the boxes. the market is a tremendous appetite for obviously something that's addressing a very large and growing market something that has subscription revenue and app that ends up being in the hands of younger consumers. all these things have created these tremendous market values and where do they trade? 20 times revenues or more. that's where it goes to.

that's where airbnb went to and doordash went to if the market is setting the rules there, then it seems like i don't know what's going to change that even though it's a super aggressive evaluation just because so many other trends are in these company's favor right now. >> yeah. looks like the stock in the next couple of minutes is poised to close at $70 priced the ipo priced at 43. we have two minutes to go in the trading day, mike does have more on those market internals. >> yeah. morgan, they softened up a little bit today seems like a bit of a day of rest across the major markets. the new york stock exchange advancing versus declining stocks slightly to the negative side there's give back on what had been record strong breath out there. steph mentioned real strong point in the market today semiconductors hasn't been the case all week or hasn't been the case all month or year or more. and you see 7% of semiconductors etf this week alone and the nasdaq 1% of course semi, a big part of the nasdaq so clearly the shortage and the

pricing power story is not necessarily used up in those share pricings the volatility index hanging around the same levels made that big round trip into the mid 30s and now back to the low 20s. here we are receding back to the 21 line and, you know, resisted going below 20 as we keep mentioning, wolf. >> yeah. just over 1 minute left of the session and we're nicely off the lows the dow is only in the red down 15 points, down close to 200 at the low of the session, the high of the session was up 100. s&p high by .2% or so. nasdaq up by a 3% and russell climbing back into positive territory by handful of basis points up 2.3% on the week and has been the outperformer so getting back into the green quite impressive tech is the best performing sector the only one up a percent. we have about 6 or 7 of the sectors in the red the only one meaningful energy down 1.5%. the dollar is essentially flat today. we have oil down 1.2%. gold down about 0.9% and the

ten-year yield edging higher to one spot 16. as we approach the close, though, we are looking at all three of the major averages trying to go into the green. the dow is touching green as we hear the bell ring it's down a basis point. the s&p 500 up .2% and russell up about 0.15% and the dow goes green at the close. ♪ welcome to "closing bell" i'm morgan brennan in for sara eisen along with wilfred frost and mike santoli as you just heard wilf say, getting a read as the stocks settle pretty narrow trading range for the day. but the dow did finish ever so slightly lower, down by about 7 points the s&p did eke out a gain up about .1, 1 20th of a percent.

russell 2,000 small caps were able to end the day lower. we did see a record intraday high for the dow earlier in the session. investors now awaiting more results, more earnings results today disney, expedia, cannabis and a firm reporting for the first time since going public. we're going to bring you all the numbers as soon as they are released plus, philadelphia fed president patrick harker on the state of the economy and how much more stimulus is needed from washington stephanie link from high tower still with us, victoria fernandez also joins the conversation but, mike, first we go to you. >> yeah, morgan. market idling for most of the day here but the s&p 500 up 4% year to date that's only six weeks. it's about within half percent of its record high so it's really has refused to do much more than just kind of sit

around here in the last few days as opposed to pull back. even though you can line up a lot of factors that say we're due for something even though we had that little 4% shake-out recently i think it's simple as it's a bull market supported by strong credit conditions, all these kind of liquidity injections from fiscal and monetary authorities and a really powerful corporate profit rebound. it's ridiculous the margin by which companies are beating fourth quarter earnings. so, you know, i think that all those things make it tough for bears to get much traction so far. >> steph, what would worry you what would make you take meaningful amounts of money out of equities? is it rates suddenly shooting up would that be a factor or anything else in particular you're watching out for? >> well, it would be the velocity of the moves in either the vix or rates or inflation for that matter, right if we spike up, that is something that the markets don't like if we gradually grind higher and basically grind higher for good reasons, like rates are going up because we are seeing better

growth, inflation is going up because we are seeing better growth globally, those are good things, right? but if we spike, that's not something that i would feel very comfortable with i do think we certainly have a correction then the other thing is the fed. i mean, as i mentioned earlier yesterday, they were very, very dovish and really keeping to policy the existing policies very accommodative. that's not changing. when they do change, we're going to have a big pullback in my opinion. it will be interesting to see in that pullback what sectors and what style actually works because higher inflation doesn't equate to wanting to own growth stocks and we know everybody is in growth stocks because we had a ten-year bull market in growth, which again goes back to why i actually lean a little bit opposite of growth a little more value and little more cyclical. >> victoria, how do you see it >> yeah. so we're actually a little bit opposite of what stephanie was just saying. i agree that it's the velocity of the moves that are really going to make a difference and also if we see a pullback on

the consumer on the consumption component people really relying on that pent-up demand if we don't see that pull through, that's going to be a concern. but for us, we like the values we like the cyclicals. and we have exposure there but we're still overweighting to the growth component right now i mean, we actually bought in video this week and we're not saying that there's cheat stocks within the growth sector, but we think for a longer-term investor which is who our clients are, you've to go back and look at the fundamentals you need to see visible growth and a business model that makes sense and you need strong balance sheets with little to no net debt there and look at the cash flow as well so, for us, we're still looking a little bit more on the growth side, but we believe in that barbell strategy. >> mike, is the vix going to fall below 20. >> that's a good question. the market action itself would tell you it should be pulled in that direction you had the actual volatility of this market if you observed how

much it's moving day to day. it's really calmed down to say the least. you would see usually the implied volatility in the vix pull it down there's a few things going on. one is a lot of that kind of hyperactive stuff going on in options and in other parts of the market, maybe keeps us on guard for something in the downside there is still a bid in hedging of the indexes very low short interest in this market in individual stocks. but perhaps people are hedging their downside through the indexes which feeds into the vix. finally, used to be a real active industry in selling that volatility insurance and sort of putting it depressing effect on those options prices that feed into vix. that's kind of gone away people are less willing these days to use that as a source of income because they're afraid of getting run over. >> yeah. victoria, as we start to get some of the earnings parade hit the tape right now, just want to get your thought on what we have seen this season i think if i had to sum it up in two words it's been cost cutting. we seen a lot of companies come out and beat big in large part because they have been reigning

in some of those expenses. >> no, that's true, morgan it's also interesting the way that stocks were actually reacting if you look ten days, two weeks ago, we had some big names come out that really put up good numbers. but yet the stocks were performing poorly. even more so than what you normally see normally you might see half percent move to the downside we were seeing closer to 2, 3% moves. i think a lot of that has to do with the volatility that was in the markets and some of the headlines around the reddit stocks at that point in time but that's starting to shift we're starting to see stocks actually perform well with good numbers. we're getting guidance back from ceos on the calls. that's positive news when you look at eps expectations going forward, i mean, we're looking year over year in the second quarter for about north of 40% eps growth. so that reopening trade is really key to that and we'll be watching to see how many ceos continue to give the proper guidance that they anticipate going into the second half of the year

>> various earnings starting to cross just seeing disney revenue coming in at 16.5 billion ahead of the expectation of 15.9 billion. first, expedia earnings are out. seema mody has that. >> fourth quarter earnings out for expedia. a loss of $2.64 adjusted versus analyst projections loss of 1.97 revenue in lighter as expected, $920 million versus $1.12 billion excuse me. the ceo peter kern in the earnings release saying the fourth quarter brought signs of hope in the form of vaccine approvals but rising cases across the globe and rolling shutdowns of various travel markets made an impact and as a result q4 did not show real sequential progress other than signs of modest improvement around the holidays. they do not break out financials which has drawn more interest following airbnb ipo investors have certainly been giving the vacation rental market a fresh look.

when you look at data from home to go which shows summer bookings are up 30 mrs but it's facing a lot of competition from booking and airbnb we will look for those comments tonight on the earnings call in less than 20 minutes on what he had to say about virbo and competition with airbnb. stock is down here back to you. >> thank you for that one. disney has crossed as amentioned and julia boorstin has the numbers for us >> the numbers seem to be coming in better than expected. we have disney revenues of 16.25 billion versus estimates of 15.93 billion. the company reporting adjusted profit of 32 cents per share unclear one time items make that uncomparable with the expectations, but analysts had been anticipating per share loss there. now, i want to point out two key things here in this report one is disney plus up to 94.9

million subscribers as of january 22nd, up from 87 million with the last number the company reported espn plus now 12.1 million. so some growth there in disney plus as it continues its rollout. also, they say there was a 2.6 billion impact of covid the disney parks experiences in products segment due to the closures and reduced operating capacities i'm going to continue to dig in here and will be back with more shortly. but you see shares up nearly 2%, guys >> all right, julia, thank you stephanie, i want to get your reaction. i mean, we were talking about reopening trades recently just before all these results started to hit i wonder what you think of both of these stocks for that reason? >> yeah. disney had very, very high expectations and the only number that i think people really are focussing on right now is disney plus those numbers came in i think julia 94.9 i had seen numbers anywhere from

89 million to 95 million so definitely at the high end of where people were expecting. very good numbers, but this is the beneficiary of stay at home. let's see how challenged the other parts of the business, the theme parks and the studios and the networks how they do that's definitely the reopen part of it i would like to see just how bad those numbers look is it going to look pretty bad expedia really wanted to figure out what the books numbers were. really, really bad numbers but this is the ultimate reopen stock. so if you can get through this quarter maybe even next quarter, second half of the year really sets up quite well with them especially given the cost cuts and the cost cuts actually came in line with their guidance of 900 to 950 million in cost cuts. the street was higher but i don't understand why that would be then also virbo is also going to be interesting to see how much that grows expectation are for about 20, 25%. we'll see what they say. >> let's go back to julia who

has been digging through the numbers and has more for us. julia? >> so, the eps numbers, earnings per share of 32 cents is comparable with analysts expecting 41 cent per share loss those earnings much better than expected versus the loss that was anticipated. i just want to go through a couple more key numbers here the total number of direct to consumer subscribers now 146 million. bob saying the beginning of the results here and i just want to show how much the revenue from that division has increased. this is the first quarter that disney is reporting its new -- under its new reporting structure. so they have the media and entertainment division distribution and then they also have parks, experiences and products now, that parks experience and products division revenue dropped in the quarter by 53%. that's stronger performance than anticipated. and the media and entertainment distribution division, that

number dropped only 5%, which is notable considering that there was no theatrical, no meaningful theatrical business there. the direct to consumer division, that's the division with hulu and espn plus and disney plus revenue increased 73% from the year earlier quarter really showing strength in disney plus and streaming as well as better than expected results of the parks despite the fact that one such as disneyland here in california are still closed, guys. >> julia, thanks for that. >> we'll pivot back to disney in a moment and discuss in more detail want to hit more firm numbers since going public revenue 204 million, the forecast was for 190 million gmv is 2.1 billion up 55% year over year. 4.5 million active customers up 52% year over year reporting a loss of 45 cents kind of hard to compare because it's their first quarter to various estimates. i'm trying to see what the analysts estimate was.

estimate for gmv was 1.7 billion and they come in 2.1 on the top line which is easier to compare for this first quarter, both gmv and revenue beating expectations just trying to see what else the expectation was for our customers. either way the market is not liking this. it's down 11.7%, but of course has had decent run as well since it listed. mike, what's your take on this one and disney as well. >> yeah. i don't know if there's a guide in the firm numbers people are cueing off of or not the disney numbers are absolutely better than expected even though the stock is up 140% from the lows. valuations certainly stretching what used to be the limits for this company but only a half a billion dollar loss for direct to consumer in the quarter. so you're in sight of when that streaming business is no longer even a cash burn, i would imagine. and so i do think that basically the market is treating the company as like we're giving you

credit for having figured out the future at this point they didn't have this long period wondering if they can pull it off. 146 million streaming customers is i think -- that is kind of what people are looking at. >> victoria, are you a fan of disney >> we don't own disney right now because we were really concerned about the closing of the parks and movie theaters and how that was going the affect them. we were probably a little surprised at the growth that we've seen in disney plus. even though it's a huge positive for the company, we have to wonder is that going to continue as the reopening tray goes into full force similar to what we're seeing on netflix, they were positive cash flow for the first time, but maybe because they haven't been able to really put out new content, is that the same with disney when things start coming back open and they're putting out new content and that cash has to be reinvested, how will the numbers look then? so we're a little hesitant on the name, but obviously strong numbers for the quarter.

>> victoria fernandez, stephanie link, thank you as always. up next, we'll have much more analysis of those disney numbers when we're joined by a pair of analysts with buy ratings both on the stock. plus, philly fed president patrick harker will join us on concerns that more smutilus could result in the economy overheating. we're back in 90 seconds mornings were made for better things than rheumatoid arthritis. when considering another treatment, ask about xeljanz... a pill for adults with moderate to severe rheumatoid arthritis

when methotrexate has not helped enough. xeljanz can help relieve joint pain and swelling, stiffness, and helps stop further joint damage, even without methotrexate. xeljanz can lower your ability to fight infections. before and during treatment, your doctor should check for infections, like tb and do blood tests. tell your doctor if you've had hepatitis b or c, have flu-like symptoms, or are prone to infections. serious, sometimes fatal infections, cancers including lymphoma, and blood clots have happened. taking a higher than recommended dose of xeljanz for ra may increase risk of death. tears in the stomach or intestines and serious allergic reactions have happened. don't let another morning go by without asking your doctor about the pill first prescribed for ra more than seven years ago. xeljanz. welcome back disney shares are up about 1.5% right now on the back of reporting quarterly results that came in better than expected

joining us to break down the numbers, bernie of rosenblatt securities good afternoon to you both bernie, i'll start with you. what did you think of the results? >> yeah. really good results and really the highlight for us was on the park side. and the parks beat on segment revenue driven expenses came in slightly higher than expected. good they're getting greater capacity utilization the other piece on disney plus subscribers, great numbers the only thing is that the disney plus is actually down substantially. probably driven by increased higher percentage of subs coming from disney plus hot star. so it was about a quarter of subscribers last quarter, so looking for what the company is to say in terms of how much the disney plus hot star drove the subscriber result. but hulu had a strong driven by advertising. so, strong, strong sub numbers on disney plus and then great parks profitability. >> i want to come to you next in

terms of this subscriber number. and the fact that we're getting quoted 146 million in terms of dtc subs in total. all 146 million of those as profitable as each other or are we really should be focussing purely on the disney plus part of it? >> you know, i think within that number disney makes up quite a cig nif kant amount in india that being said, i think the way to think about this direct to consumer is kind of wholistically, right they've said the next fiscal 2024 they're going to be turning profitable we think based on what we're seeing now actually it seems to us they're going to get there much faster than expected. where that business as a whole is going to be self sustaining we're getting cleaner picture of that direct to consumer business based on the new segment reporting. you can see that break out now,

the networks and direct to consumer, much more streamline, much better handle for analysts such as us to kind of figure out the trajectory of that business going forward. and we think that based on this subscriber numbers and guidance that they provided, you know, wouldn't be surprised if they would revisit that -- those targets as early as next year. >> yeah. i mean, i think about netflix, right, and how much attention investors have spent over the last couple years looking at their content spend. i mean, i think it's kind of disney's turn now. what are you expecting and what does that mean in terms of that equation over the next couple of years for that specific business to become profitable >> so, morgan, they've telegraphed that their going to be effectively quadruple their content spend within that streaming business hitting almost $8 billion by fiscal 2024. now, netflix already north of 17, $18 billion as we speak.

and given the pipeline that disney has really prepared, marvel, pixar, star wars, we would not be surprised, morgan f that number actually hits 10 billion sooner than later. so, it's really a rat race out there for content spend and the way that you think about it is that you got to stand out from the clutter and the way that disney has lined up these shows in the pipeline, i think content spending has nowhere to go but up but the good news is that as long as they can maintain these subscriber numbers, there's really a tremendous runway and remember, disney plus, as we speak, is right now in only less than -- little over two dozen countries. netflix over in 190 countries. so you kind of get a sense that even at 350 million target subscribers by fiscal 2024, that number is going to start looking pretty conservative pretty soon. >> bernie, where are disney in

the debate about how and when movies should be released while we're still in lockdown and what will you be listening out for on the call >> yeah. the next movie that's coming out in the window is ray and the last dragon hitting the service i believe march, the first weekend in march so, you know, we'll see. and the company has said they want to maintain flexibility, but they really did roll out a robust slate of movies like crew well la hitting disney plus. but that comes with your subscription so, netflix has a really robust slate of movies this year as well, hbo max putting all their movies on the service as well as the day and date release schedule this is a really interesting year for all these different streaming companies to test to see that if movies can really drive subscribers to the platform, you know, the way that hit series can as well >> all right we'll be listening out for the call thank you both for breaking it down for us right now. up next, an exclusive

interview with philadelphia fed president patrick harker on just how much more stimulus is needed and when the economy could return to pre-pandemic levels. and as a reminder, you can always watch or listen to us live on the go on bccn app we'll be right back. to fill pos and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. it's a thirteen-hour flight, that's not a weekend trip. for a prospectus containing this information. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

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welcome back let's get a check on some of these earnings movers. we'll start with disney, which is up 1.6% right now after both revenue and earnings beat also saw a 95 million disney plus subscribers. investors reacting positively to that expedia turning positive, it's up fractionally right now. that is despite a revenue miss and a wider than expected loss also got the first earnings report from a firm revenues did beat but as you can see there that stock is under pressure in the afterhours trade. >> the latest jobless claims coming in worse than expected. 793,000. patrick harker joins us now in an exclusive interview thank you for joining us. >> thanks for having me. >> mentioned the outlook on the

labor market just there. did the relatively disappointing numbers mean that inflation is even lower on the agenda in the short-term than perhaps it would have been? >> no, i think it's pretty much what we were expecting in philadelphia in terms of our forecast this is going to be a choppy ride the virus is driving the economy right now. and until we get vaccines in people's arms, we're going to continue to see pretty choppy economy. >> there's been a discussion over the last couple of years but particularly this year that now is not the time to worry about inflation. to what extent is that said in order not to speak people's inflation expectations or the markets with belief from people like yourself that if we get to a point of say 3 or 4% inflation in fact it will be very worrying >> no. so i think what i look at is not only the level of inflation, but also accelerating, is it decelerating so we clearly committed as an

fomc to exceed 2% for a period of time. it has to be sustainably above 2% for a period of time. obviously if it's rocketing past 2%, we behave very differently, i would behave very differently than if it's just creeping past 2% so it's really the dynamics of inflation, not just the single number >> yeah. president harker, i just want to dig into that a little more. there was this op-ed published this week by exped president bill dudley who basically argued we could see the fed pull back on stimulus to keep in inflation in check and increase of taper tantrum and proceeded to lay out the reasons why that would be the case i want to get your response to that. >> so my dear friend bill i would disagree with to some extent we do not see -- i don't see right now inflation running out of control we will see a little bit of a spike as some months roll off in

terms of the calculation and other dynamics in the economy. but again, i don't see it roaring past 2% any time soon. so i'm not so worried about that risk right now in the medium to longer run, yeah, sure it's something we have to take into account but not right now. >> president harker, tell us about this new jobs tool that you guys have launched. >> sure. >> and exactly what that's aimed at and the effect it can have not just on obviously hopefully finding jobs for certain people but on driving productivity and economic output across the country. >> absolutely. if you think back pre-pandemic, and i know that's really hard for all of us to do. to think back to the job situation we had, the economy we had, our goal over time is to get back to that somehow, some way. that means we need to get people back to work but things have changed. right? the economy has changed. the skill sets are different in this economy than they were even a year or two years ago. so, what our researchers looked

at, and these are philadelphia, fed and cleveland fed researchers they looked at 33 metro areas across the u.s. and asked the following questions, what are those low wage jobs that with a little bit up skilling you can move to a higher paying job? they found about half of the low wage jobs there was a match with an average increase in salary of $15,000. so this is real money. so what we now launched is a tool, the occupational mobility explorer where you can dig down into these 33 metro areas down to specific jobs and see what the average increase in salary would be and are those jobs increasing or decreasing in the economy. let me just give you two quick examples take a receptionist. they have skills to be upgraded to a medical secretary with an average increase of salary of 27%. or, take a bill collector. there are skills there to be a credit counselor with average increase in salary of 45%.

so, this tool is meant for people looking for work, for community colleges, training organizations looking to find what they need to put in place for these workers, for community organizations, for government officials. i think this tool is incredibly powerful and the moment is right now to start using this. >> from some of those examples you just gave, mainly a tool for white collar workers or across >> no, not at all. i mean, one -- this is all based on work we've done for quite a while on what we call opportunity occupations, jobs that pay above medium wages where you don't need a four-year college degree so a lot of these jobs are not just white collar jobs >> yeah. so you're launching this tool. in the meantime we do have so many people still unemployed right now. some of the hardest-hit industries we keep hearing about the fact that there's this massive adoption across industries of new technologies, the digitization of everything. >> yep. >> i wonder how you're thinking

about potential fundamental changes to the work force, people leaving the work force, people being able to have those skill sets i know you mentioned this tool how big of an issue could this potentially be >> again, the pandemic has just accelerated trends we were already seeing we already saw the trends in retail away from some brick and mortar to highly auto mated warehouse fulfillment facilities that's going to continue but we're seeing this across the board. technology is not going to stop. i'm an engineer by training. right? technology is going to continue to move the way it's going to move it's incumbent on us as policymakers, employers to then ask the question, how do we get people up skilled ory skilled into those new jobs? that's what this research is aimed at doing. >> lots of debate about the stimulus bill, the relief bill seems different stories each day, each week that we cover on the industry that every industry lobby group is obviously trying

to get in there whether it's the banks or the airlines or the chip makers. will there be enough to go around and are you fearful of certain sectors being left out or do you think this is a case where everyone should just be given their slice of the pie >> so, i stay out of fiscal policy as a monetary policymaker. but that said, we have pencilled in about $100 billion into our forecast of stimulus we'll see what occurs. i think you need to separate two issues there's some short-term and long-term issues or medium term issues in the short run, we need to help people now. that has to be targeted to the people who need help now to minimize the scarring in the economy and the pain look at the food lines that are around look at the fact that some research we just put out you look at about $11 billion of rent in arrears. that's going to come due at some point. and somehow investment is even higher so there's short-term needs we

need to address. the longer term, medium term needs work force retraining, infrastructure investment and so forth, we need to do those too in my mind but let's fix the problem. we're the middle of a crisis let's get through this crisis. and most importantly, let's get money out there so we can accelerate the vaccinations. because if we don't get people vaccinated, we're not going to be able to fully reopen this economy. >> on the banks specifically, they were given some regulatory relief last year around april, specifically on the terms of the slr. that relief expires in march it was partly fed, partly fdic, partly occ should that be extended beyond march? >> i'm going to stay out of the regulatory world right now in terms of whether it should be extended or not. that's in the hands of congress and others but that said, the banking sector, what we saw in this crisis is the banking sector went into it in a strong position and that's really

benefitted us. so we don't want to -- i'll give you a basic principle. we don't want to relax regulation to put it back in a bad situation. and this is one where again the specifics i'll leave to others but i'm a little worried about changing too many things right now the middle of a crisis let's get through this and then we can start to talk about those things. >> all right we'll leave the conversation there. patrick harker, the philadelphia fed president. thanks for joining us today. >> thank you very much aurora cannabis reporting. frank holland with the numbers. >> shares of aurora up over 6.5% after reporting their earnings we're not making a call on eps overall revenues increased 11% year over year medical sales up 42% consumer cannabis up 25% the company says its international high margin sales up 560%.

its average price of cannabis that went down a continuing concern for canadian cannabis companies competing not only with each other but also with the market shares of aurora cannabis up 6.5% after reporting their earnings. >> frank holland, thank you for that. don't miss first on cnbc interview with aurora cannabis kate rooney? >> reporter: i just got off the firm ceo max the company's first quarter as a public company. he mentioned as some of the gmv growth and customer growth up about 50% year over year he pointed in particular to american airlines. he said it's a good example of what a firm is gearing up for after the pandemic he said people are now looking towards a different type of shopping and hopefully a rebound in travel, as he says. peloton still key piece of the firm's business. last quarter peloton made up 24%

of revenue that was less than the quarter before that. so non-peloton revenue is accelerating so diversifying a bit there and he pointed to health of the consumer he said that he has seen, quote, sprinkles of recovery in travel, health of the consumer is pretty good from their point. he also pointed to a step up in marketing for the company. he said the company did spend more on marketing and as a result they saw about a 10% increase in brand awareness. the stock, though, taking a hit. it's down about 7% was down as much as 11%. but back to you, guys. >> kate, thanks so much for that one. up next, mike santoli will take a look at disney's battle with netflix and how much is left of thdiey pe snlus magic. we're back in a couple minutes

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we got breaking news in the biotech space. meg terrel has the story for us. meg? >> hey well, this is about amicus therapeutics a rare condition characterized by severe mussing wasting. they were comparing a new drug they're developing to the standard of care one from sanify and the study missed its main goal and you can see the stock down there almost 30% on these results. but they are pretty complicated. the goal of the trial to show improvement in the ability to walk and they showed that improvement but it wasn't statistically significant. on a secondary goal of helping patients with the respiratory

function, they did say they saw a significant slowing in the rate of respiratory decline in patients after treatment for a year they also showed that when patients switched from lumizin toerks the drug they did see improvement on both measures, guys mixed results here we'll be joined by the ceo john crowley. he tried to save his own childrens with the drugs he'll join us on "fast money" to walk through the results back over to you. >> that tugged on my heart strings. meg terrel, thank you. disney shares are higher after beating earnings and revenue expectations send it over to mike santoli for more >> morgan, little score card long-term of the walt disney versus netflix competition remember a couple years ago when there was a lot made of the fact that netflix had eclipsed disney this is enterprise value, equity market cap plus net debt that's gone.

what happened here with disney, the fox asset purchase, they issued a lot of stock in debt in order to buy those big businesses, media assets from fox, but also that was the time of this famous now investor meeting in april of 2019 where they laid out the disney plus strategy and basically said we're going to go pretty much all in on direct to consumer now 400 billion market cap or enterprise company leaving netflix in the dust. subscription wise, value disney's business direct to consumer on a per-sub basis similar to netflix, it's probably close to half of disney's enterprise value right now. really a lot changed from the days when it was all about the cable earnings of disney and what was going to happen with cord cutting and espn, guys. >> my goodness what a difference a pandemic makes mike santoli, thank you. up next. much more reaction to today's after the bell results including nnisyst reaction to aurora caab numbers

and stocks rally in after hours numbers. stay with us hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

time for cnbc news update with courtney reagan >> here is your cnbc news update at this hour moments ago house impeachment

managers wrapped up their case against former president trump offensive that's how one of trump's defense lawyers describes the presentation by impeachment managers against his client david schoen says showing graphic video of the capitol hill riot is impeding efforts to unify the country. trump's defense team may take a day or less to present its case this, according to a senior trump adviser. some republicans have expressed a desire to wrap up the trial as soon as saturday and kentucky and west virginia nearly 100,000 customers are still without power following ice storms that stretched as far south as texas. kentucky's governor signed a state of emergency and a wisconsin judge has refused to sign a new arrest warrant for kyle rittenhouse the 18-year-old charged with killing two people during a police brutality protest last summer prosecutors say he is no longer living in his illinois apartment. lawyers for rittenhouse say threats have forced their client

into hiding. that's our cnbc news update for this hour. back over to you, morgan. >> courtney reagan, thank you. shares of aurora cannabis higher we'll dive in on the key business segment that the company says is omg xtboinne we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize

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higher let's bring in matt bottomley who joins us by phone. matt, in terms of the numbers, it doesn't look like the revenues were comparable to street estimates and doesn't look like we got an eps number what is moving the stock right now? >> thanks for having me by the way. i think what we're seeing in the canadian space and cannabis space there's a lot of exuberance coming into the market clearly a very high growth industry i think the prospect for federal decriminalization or some sort of movement on that front is something that's getting a lot more retail into the space but certainly the print here looks generally as expected but there's a number of take aways here that i think are slightly troubling. this is something that is consistent with the sector overall as we're seeing flatten revenue and a lot of material write-offs here given a significant amount of infrastructure that was invested in this space over the last number of years which looks like it's a little saturated now. >> matt, i know you've got a hold on the rating and these stocks have been super, super

volatile how hard is it to value them in this environment and what sort of percentage move either up or down from here would it require for you to be able to confidently go from hold to buy or sell >> well, there's a lot of moving parts in there so i can't a lot of moving parts. so certainly you have to be very cautious when you're doing that. at the end of the day you want to look at what's the fundamental underpinning of these companies. in order to get to maturation, it will be the cpg type companies. when you look at aurora right here, about 28 or 29 million for the quarter is down about 17% sequentially it's a run right business at about a hundred million when it comes to those type of revenues and that gets harder and harder to justify these valuations.

you have to not buy into the hype too much. you have to pull yourself back a little bit and look at where these companies are in the growth curve and where we think they're situated as market leadersor in that ordering. >> shares of aurora are up in after hours as well as other cannabis names matt, thanks for breaking it down for us. >> thank you >> shares of disney moving veept. after an earnings ror instors are cheering despite this theme park's struggles.

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president biden speaking to staff of the national institutes of health making news about vaccines hi, meg. >> hi. a big purchase from pfizer and moderna as well as an expedited timeline here's what he said. >> scientists here with me my covid-19 response coordinator. the work of the department of health and human services to purchase more vaccines just this afternoon, we signed a final contract for 100 million more moderna and 100 million more pfizer vaccines we're also able to move up the delivery dates with an additional 200 million vaccines to the end of july, faster than we expected, and further good news, both companies agree we are now contractually obligated to expedite delivery of 100

million doses that were promised by the end of june, deliver them by the end of may. that's a month faster. that means lives will be saved that means we're now on track to have enough supply for 300 million americans by the end of july it may not sound like -- >> guy, that is the speeding up of the time lines we've been hearing. those were expected potentially in september, the total, 600 million doses. now by the end of july, 300 million from those companies alone. >> enough for 300 million to be vaccinated but that's not the expectation we'll reach the delivery into arms >> that's a great question we'll see if they can speed things up and overcome the hesitan hesitancy. >> either way, good news on that front. thanks so much for bringing it to us. final thoughts, mike, on the

market mice recovery into the close, taking us essentially flat. >> market keeps sort of bleeding away some of the excesses. the cannabis group gave up some of their gains and the market kind of hangs in there we'll see if that continues on friday before a three-day weekend. >> we're out of time closing bell "fast money" starts now. >> i'm melissa lee and this is "fast money. tonight on fast we're all over the after hours action both names big reason the reopening trade. we'll tell you what they're saying about the future straight ahead. plus the next big target did the reddit rebel p onset its sites on this company? the telling trades signs bundleble all abuzz but will investors get stung by this stock? we'll bring you the trade. we start off with disney delivering