to how much you have done over the years and how much you have covered. i am wondering if there was anything that was your favorite in terms of a story? >> i don't know if i could really pick a favorite the kids are all still laughing at my hair in the video. they are all sitting beside me here i just want to say thank you to everyone at cnbc i love you all and i am going to try and use my time to not only be with my family, but one of my passion is to get more women on corporate boards that's one thing that i am going to be focusing on, as well as virtual events, until we all get back to normal but cnbc is in my heart. it's in my dna i'm not going away i'm just transitioning so i will be seeing you all soon. >> sue, we love you. i was going to say, we will miss you but you are going to be around sue herera thanks for everything you have been a real model to many of us. >> thank you, ty.

>> thanks, everybody, fosh for watching "power lunch," "closing bell" starts right now. >> first and foremost, sara, the "closing bell" team and i want to echo the words of huge congratulations to sue what a tremendous career and all with such warmth and grace throughout honestly, there is nobody we on the "closing bell" team look forward to seeing each day more than you, sue. we will miss you both on the news updates and off but we are glad to still be able to be with you from time to time congratulations sue. right, sara? >> absolutely sue. for me, as a woman growing up in the business and reporting and anchoring role there weren't a lot of female role models. sue, you were one. both on and off air. that's a unique combination. >> great the hear that's an area you are going to be continuing to work in as well an inspiration as sara said. let's get to what is driving the action in the markets.

the dow is up 100. the nasdaq is in the red as tech takes a breather energy and testimonies are in the lead manufacturing data better than expected and earnings continues to come in strong. bitcoin breaking through 50k for the first time ever. we will dig into the run-up and how companies are getting involved the dow as we stand is up 66 points, .2%. sara. coming up this afternoon, value investors scott black of delphi management on where the market goes from here and some names he is recommending. plus a health care stock that has been on a tear the last few years. zoetis ceo kristin peck will join us. another hot stock, quantum escape reports after the bell. we will see what the stock does after-hours. first let's get to the big stories we are watching. one hour left of trade mike santoli tracking the broader markets. mike, what are you seeing? >> market itself, broadly

speaking, s&p 500, is pretty much at a bit of a sand still. little bit of a for real estate into a record high this morning. but there are cross winds. all the indicators of future economic growth doing very well. but the s&p 500 itself is sort of the caught at the point of the uptrend. basically, it has been riding this very orderly climb higher it is pretty much still the case underneath the surface there is still a lot of back and forth. some growth stocks not taking too well to the sharp rise in treasury yields. the bond market is increasing dramatically higher inflation closer to or exceeding the fed's goal i think we have a chart of the two ten-year treasury curve. record highs right now this is a dramatic, steep rise obviously the picture here is

saying the fed is not doing anything for two years that's anchoring the two-ier yield where it is. it is happening on the longer end of the yield curves. here you see the investment grade etf, the bank mark on the lqd. rolled over. bond prices are lower, that's why yields go higher high grade debt is sort of following treasuries some people thought there was some significance to this kind of 134-type price here i am not sure that the price of corporate bonds is going to be the thing you worry about. but incrementally it means less cheap debt out there maybe that's going to filter its way into growth stock valuations and others >> why the steeper yield curve and the sharp rise in treasury which as you say does appear to be dictating a lot of the action in stocks. interest rate sectors dominant financials near the top. utilities near the bottom. >> it doesn't seem as if this is

a reaction to today's news it's much more about an acceleration, continuation this trend. everything looks good in terms of covid case rates going own, vaccinations going out arguably, oil price making new 13-month highs or whatever it is -- at least kmetically it changes the stated inflation picture. maybe that's a little part of it in general, the world asset markets are replacing for a reflationary type environment and that's what's going on with the yield curve as well. >> mike, great stuff thank you very much for that now we have had a historic freeze of course across texas and other southern states leading up to a warmup in the energy sector today. let's bring in tom clausen good to he sue oil prices have been strong of late anyway, not just over the last week or so. has most of that strength come because of supply issues as opposed to optimism about demand coming forward >> i think it is mostly about

optimism about demand in terms of the crude oil market. we really had a sprint in the first eighth of the year that sprint was led by a lot of money managers and a lot of financial flows into all commodities. but particularly into oil. so i would sense that as far as the crude oil market goes a lot of people who predicted 60 or 63 are raising those items. but i think their original estimates were more on tap, which is to say that we have seen most of the move in crude higher and we should be choppy for a while. >> what about this latest weather front that's come in particularly into texas? is that a temporary boost for oil prices or a medium term one >> it is a temporary boost mostly for refined production and mostly for gasoline and for diesel, which despite the various fluctuations in inve inventories, we are always just a few days away from an issue

with gasoline. now we are going to have bad comparisons with last year in terms of fries and demand, and that's going to impact gasoline. but the refineries will get back up and running we don't anticipate this is going to last much further than the weekend. if anything, it probably calms down some of this incredible demand for crude oil, which is mostly paper demand, by the way, but could transition into physical demand beginning in the second quarter >> if you take what's happening today, tom, on the back of this weather incident, and pile it on top of the momentum that you are talking about that we have seen in oil prices, is it likely to alter the strategy for opec plus and their supply curves? is that going to change? >> that's going to be interesting. and that is the big pivot point of the right now you have the saudi asks the russians getting along. but as woody allen once said, the lamb will lie down with the

lion, but the lamb isn't going to get much sleep. russia wants to pump more. right now it is scheduled the take place april 1st this is still very precarious in terms of demand. demand in the united states for gas is run being 15% below last year jet fuel demand is somewhere between half and two thirds what have it was last year. and those numbers don't look like they are going to change until we get an awful lot of people vaccinated. >> tom, what is your take on what the biden administration means for oil prices is it a case of some short-term bullish but medium to longer term bearish >> i think short-term a lot of executive orders and things that could impact prices or supply and command for ten or 15 years will have very little impact in

2021 we are already scheduled for -- not enabling new exploration on federal lands has a mild influence. for all the talk of evs, electric vehicles and alternative fuels, we are probably at the back half of the decade when that really transitions. and what happened in texas in the last few days isn't going to help sell a lot of evs, when you didn't have power because of some wind issues and some other issues. >> yeah, i wanted to ask about that does it raise questions about the shift to renewables, that the wind turbines i guess from too iced up. also, why can't the electricity grid handle the natural gas shortages that are so desperately needed for gas-powered lants. >> whenever you see these events, and usually these events

take place in the northeast and you get interruptions in natural gas for lots of commercial businesses so hospitals and schools will have natural gas. i am not sure what's at work in texas or where the problems came it was 86 in the florida peninsula this weekend and it was 4 degrees in dallas. that might have a lot to do with it you don't build a system for this kind of weather just like you don't build a church for easter sunday >> i guess they are investigating that right now thanks for rubbing it in, tom, that you are in sunny florida. >> it is going to cool down to 70 so thanks. >> tough, tough. coming up, palantir shares are sinking, down 10% after the outlook came in lower than expected but the stock

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welcome back shares of palantir are lower today, double digits down almost 12% following earnings before the bell the company beat on revenue but reported a quarterly loss of 8 cents per share. full year revenue guidance also came in lower than expected. joining us, roger mont forte thank you for joining us wanted to start with the outlook. projecting revenue growth of 30-percent-plus, which is down from the 40% it saw in 2020 and 45% it saw this quarter. cause for concern? >> i think so at all i think you have to dive into the numbers to understand exactly the quarter and the year palantir had we strongly disagree with the top line headline that the

company missed when you really look at the numbers and you look at what the company has done year over year, $1.1 billion in revenue for 2020, up 47% $322 million for q 4, up 40% and the company forecasted for q 1 '2145% year over year. those are robust numbers as far as the guidance going forward, i think there was an overall disappoint on the street that they didn't raise guidance but they didn't lower it either. they kept it in line at 30%. when you big deeper and you try to decipher the numbers, realize at that the company gave a five-year outlook on revenue where they put a $4 billion revenue target on 2025 which implies sustained revenue growth of 30% over the next five years. if you take into account the existing contracts that they have at the end of 2020, they

already had $2.8 billion in existing contracts and you take the revenue growth of 40% in 2020 -- simply to the math i think they are in good position to significantly outperform guidance going forward. so we are not at all concerned about those numbers, about the guidance >> what about whether they are poised to outperform great expectations the stock has doubled in the more than seven months since it went public -- excuse me more than quadruples since it went public on direct listing it has hot on reddit and retail investors. has it influenced your thinking or positioning on the stock? >> no, not really. we look at this on a fundamental basis. as far as the consensus on reddit or participation in the buying that came into the company, i think it is kind of in line with other big data

analytics and cyber security companies that we look at, when you look at those multiples. i think they are in line i think an important thing to really point to is the adjusted rating of capital income a 100% increase above consensus and shake out the one time expenses, they earned six cents versus a two cent consensus. in our mind, we look at this as a big earnings beat and we maintain a bullish posture. >> roger, where do you stand on the question of concentration of big clients, particularly government-related clients, and whether that's a good thing or a bad thing? >> i mean, that's a great question i think, again, when you look at these numbers and the year-en, revenue from new customers grew

at over 300% in 2020 while revenue concentrations from the top 20 clients actually dropped. so you really have a broadening client base. then when you add into that the equation that they did $1.1 billion off only 139 customers, this contract that they inked with ibm is major because you are talking about increasing direct sales force by over 10x in over 180 countries. that diversity is going to continue to expand and we think the revenue concentration will continue to dissipate. >> still, it gets back to the stock move, roger. it is trading at 48, 49 times sales. it is going to have to have a lot more 40-percent-plus revenue growth quarters. do you think it can measure up

>> yes. >> are you nervous about any of this action? >> i am not nervous at all i think the action in the stock i think is a culmination of i agree with you, being priced for perfection secondly, we have a lock up coming off in a couple of days the stock has made a parabolic movement i think it is only right to see some profit taking here i think there are some shorts coming in ahead of the lock up coming off i think once this time period, this overhang of shares dissipates in the market, absorbed and we go back to the key underlying story represented in palantir, i think the growth prospects are huge keep in mind out of the 24 -- out of the top 300 global companies in the world, they have only inked contracts with 24 of them thus far. so the addressable market and the opportunity for growth is still there. in a significant way and we expect these trends to

continue you know, i think the 30% forecasted growth is a bit modest and i understand that the street was, you know a little bit taken back with that but i think they are in a position going forward we are not concerned at all. >> roger thank you for joining us. >> thanks, guys. we have got, what, 40 minutes left in the session. now negative on three of the four averages. the dow up by .2%. which would be a record close for the dow. energy still nicely higher eight sectors slipping into the red in this final hour of trade. we will have more to come on the markets, plus check-in on bitcoin. it traded above 50,000 earlier for the first time ever. it is 48,000 as we speak. up next, goldman sachs launching marcus invest today a new platform for the retail investors. ragyoml dive into the bank's stte cing up much more still to come.

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dow is up 70 points or so. little more than half an hour left of trading. shares of spotify touching all time high levels today the company announcing it is adding ramona suddenson to the

board. the volatility in pot stocks continues. look at shares of aphria, surging double digits again. 25% higher, this after the sharp selloff last week as the pot stocks got caught up in the retail trading frenzy. they are all higher. aurora up double digits. and till ray, set to merge with aphria up as well. goldman sachs today launched an investing tool for their consumer-faced product marcus. marcus has lending products, savings products and now will also have marcus invest. the time and biggest piece of their puzzle will be checking accounts which they are aiming to deliver by year end at which time it will be a full service bank which could capture all of a client's banking activity

furthermore, it's not a single stock trading platform it is a low-cost managed etf portfolio that will be actively managed based on goldman's investment group's recommendations. in one case it is kind the anti-thesis of robinhood it is true to say of course that a bank like goldman will have more much ability to execute trades than someone like robinhood who rely on others for execution. but it would cannibalize existing revenues for someone like goldman sachs and create minor conflicts for existing clients depending what they were to to do with the order flow the interesting thing on this, is obviously, if it attracts more customers for marcus as a whole and if those customers come from marcus savings or lending customers or whether they come from outside the marcus ecosystem altogether.

but more importantly when they have got the checking accounts as well when someone is on marcus closes down their other banking accounts and goldman sachs captured the entire pool of earning reference so far it has been a success for them the question is how big will it be in a year or two's time. >> it makes sense to get some of the asset side the customers' portfolios, of their financial life, doing the personal loans on one side of marcus. it is interesting they are taking this approach essentially to plug investors into these investment portfolioses, models they have in-house and go the roboadviser route as opposed to free trading, which really isn't in itself a business it is obviously relying on other revenue flows. i think that's interest. also, if you go back five and

seven years at the dawn the roboadviser, the thing is younger people know you can't beat the market. they know you have to have low cost exposure in index funds and they want the robots to do it for them and what's on robinhood right now is people who want to flip weekly stock options nobody knows what people want. >> this is something that's going to be a fee of .35%. robo, etf driven, what does it say about the fees of 1%, 2% for sort the classic actively managed portfolio? i guess the proof has to come in the performance whether it is goldman sachs's traditionally managed funds or anyone else in the industry, whether that's justified compared to what this sort of product will generate in

terms of performing. >> you are paying for the algorithm. >> also -- i was wondering, it is interesting that it is coming at the same time as this explosion in retail trading and that robinhood has taken so much of that. i wonder what type of clientele they are going to attract in light of it. it is similar messaging right as robinhood but i think goldman sachs would be in it to capture a broader financial services clientele who are in the market and in the business of accumulating wealth in the longer term. >> totally i think it is more coincidence that it is being launched at this point offer the robinhood surge. it is not designed to capture per se that customer nor does it offer individual stock trading that's not the say they can't switch that on at a later date being the type of business they can switch that on perhaps quicker than others might be able to do interesting addition to the marcus offering. it will be great to see how it

does once they add the checking accounts as well by the ep of the year goldman sachs 1% -- or 2% now. banks performing well in general today. switching focus. marriott announcing after a battle with cancer the ceo arnie sorenson has died. >> he was a giant in the travel industry and the first person not named marriott to lead the company, becoming ceo in 2012, leading marriott's international expansion from china to india and the eventually acquisition of starwood for over $13 billion which made marriott the world's largest hotel operator and a formidable competitor. sorenson never minutesed words outspoken on a number of topics. the trade wars most he recently the insurrection at the capitol.

tony amy coney barrett capuano and stephanie listen arts will lead day to day operations at marriott as they try to work through the lead up back to normal travel in 2021. i never talked to more employees who said they worked at a company because of the ceo than sorenson. >> his warmth and his smile stand out. sure, he was a great ceo he was just an all around new guy. he will be missed. pancreatic cancer a terrible disease. thank you. time now for a cnbc news update with. >> here's what's happening at this hour. federal regulators are launching an investigation into the texas group that manages the state's power grid about 4 million customers there remain without power. greece also getting

pummelled by heavy snow. athens getting a rare blanket of snow which has been a treat for some but also caused isolated blouts across the country. three deaths are linked to the bad weather. the senate will hold its first hearing into the capitol hill riot next tuesday the former chief of the capitol police and the former heads of security for the house and senate have all been called the testify. from washington to alabama, at least nine states have now either delayed or canceled vaccination appointments be sure to tune into the news with shepard smith to see what exactly is being done to get the vaccination drive back on track that airs at 7:00 p.m. eastern that is our cnbc news update at this hour. sara, i will send it back to you. still the come, scott black, value investor who gives us his top two picks. and what he is calling the new economy stocks like snowflake and douche don't think he is a fan a. check on bonds

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dow is up 78 straight ahead, companies like palantir and quantum escape moving sharply lower do big moves lead to big value we will talk with scott black about where he sees opportunity and whether he would consider buying any of these buzzy names. 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?

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the dow, s&p and nasdaq itting had intraday record highs today with the s&p up nearly 5% so far year to date. investor scott black of delphi investment joins us now with why he sees opportunity. good afternoon, thank you for joining us. >> thank you for inviting me, wilfred. >> i was reading some of your notes and recent interviews, clearly, you think that u.s. equities are generally speaking, overvalued but more likely to continue to

rise than fall from here >> right let's use the p/es on the s&p, it is around 23 times expected earnings. even if you look at the small and mid cap, the 2000 is 26 times, and the 2,500 is 27 times. if you look at norms, valuations are stretched. but we have never seen the long bond at 1.3% so we are in uncharted waters here higher p/es are justified based on lower interest rates. the other thing is the fed is going to be highly accommodative. they basically said they are going to continue to buy $120 billion of bonds a year. they are going to keep interest rates low. so you have the wind to your back the two unknowns -- one, the rollout and successful effectiveness of the vaccine we have done a very poor job we have 330 million americans, 660 million shots. we are woefully behind we have got to get people

inoculated so we can return to normal second, we have to figure out the resolution of the new stimulus package maybe $1.9 trillion is too big, but for those people who are really suffering out there -- there are many, both in small business and people below the poverty line they probably do need the extra $1,400 that president biden has promised i think the economy is contingent on those two variables. >> we have seen a few 3% or 4% pullbacks in the s&p over the last month do you think over 2021 we will continue to see those kinds of pullbacks or is that going to be the norm for the rest year >> i am not a technician i think a lot depends on whether we can reopen the economy. around the barren's round table, i said the s&p 500 is a a surrogate for the overall market would be up 8% or 10% total

return, including dividends. last friday we were up 4.8%. it says yes the market may be choppy but i think the direction is still upwards there is election i had withity and the federal reserve is being benign in terms of monetary aggregates >> what does it all mean, scott, for growth versus value? on one hand you have got the nasdaq up 9% this year, which is way outperforming the s&p, almost double the s&p. on the other hand you have got value groups such as financials and energy at the top of the market for the year. what does that say >> yeah. actually if you look at the russell 2000, growth has slightly outperformed value year to date. same thing with the 2500 growth versus value i can't predict which segment is going to do better what we try to do is buy growing companies with upper earnings, strong balance sheets, strong cash flows and low p/e ratio,

and you hope that that work. we are up over 10% year to date. we are having a very good year and we benefitted from the small and mid cap effect year to date. if you go back over the last two, five, ten or even 15 years you will see growth outdistanced value, doesn't matter if it is large cap, medium or small it is difficult to say this is the inflection point for value. >> scott you picked out two stocks, advancics and arrow. tell us about them. >> advancics is a chemical company out of honeywell the earnings are really taking off. we expect the top line to grow 11%. we figure that earnings almost double this year i projected 2.15 against 1.18. it is an 11.7 multiple it is very cheap other chemical companies, medium sized, like eastman sell at 14

times. big ones like dow and dupont sell at close to 20 times earnings i think you are getting a bargain at 11.7. they are free cash flow positive, return on equity is 13%. the markets they serve are excellent at this point. building and construction is number one ago fertilizer because they produce ammonium sufficient fate and they bank intermediate chemicals like acetone and acrylics that goes into solvents and the industrial markets i think they will do well. they are able to pass along increases in their feed stock which is a benzene derivative. >> and quickly on arrow? >> look, we own all the semiconductor capital stocks, the big ones we own some of the semiconductor tax that are 20 and 30 multiples. arrow is the largest distributor in the world basically the stock is $105. we figure they are going to earn

10 to 10.30. they have a 10 p./e. this is a good surrogate play on the growth global components, which are basically semiconductor chips. s ram, d ram, field programmables. that's 72% of the business enterprise computing, which is both software and storage is another 28%. the business is going to grow this year on the top line. probably in excess of 20%. the earnings are taking off, the last quarter they reported was excellent. they had a blowout fourth quarter. sales were up 13%. and they came in at 317 against 220. a mid point of 10.15 in earnings we have a 10.4 multiple with the 14% return on equity the balance sheets are leveraged and they will generate over $1 billion a year in free cash. last year they generated $2.4

billion. this is a solid business basically if you want a cheap play on technology this is it. because most of the technology stocks are having huge moves off the bottom last march. >> thank you for joining us, scott. much appreciated full disclosure, scott is an owner on both of these companies. advancics is now up 13% following your pitch there >> thank you. still to come,itin bco hits a new high and the key metric to watch when quantum scape reports. we will take you inside the "market zone" next labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm. a hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place.

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12 minutes left in the trading day. we are now in the "closing bell" "market zone." commercial-free coverage of all the action going into the close. cnbc senior markets commentator, mike santoli, is here to break down these crucial moments of the trading day. and today we've got steve weiss back from short -- capital we will kick it off with the broader markets. dow currently on track for a record close the other afternoons are lower hovering near hospital record highs. texas power outages drive up energy prices, mike, and it adds to some strong gains we have seen in the sector. >> without a doubt commodities in general have been on quite a move in sync with what is happening in the bond market bonds market is on the move. we now have new almost 12-month highs in bond yields it is all part of the same story. whether the market has it perfectly right or not the trend is strong in this direction of

pricing in acceleration, pricing in a reflationary move without really immediate fed implications so it is mostly about how the economy is going to perform as we get closer to spring. >> higher yields, if it persists at this price is presumably going to hurt some of the more high priced stocks that's already happening today. >> it is definite lee affecting relative performance some of the high valuation growth stocks have come in more. it is part of the rotation because yields are up and it makes accepts to incrementally own for cyclicals and financials and not necessarily growth stocks it doesn't have to be that way but it is at least in the near term the way the market will behave we will see if this plays out. nasdaq names haven't been racing to new highs the way some of the subsectors had, like the cloud stocks, so haven't been affected so adversely. >> it was a big move, now near a

one-year high on yields. what does it mean for equities if we keep going higher? >> well, it depends how we get there. so if you continue to see these rocket moves, then i think you have got a chance for sustained decline in the market, but no more than 10%. i actually believe that if we move slowly and the economy continues to improve, which i fully expect matter of fact i think we could hit gdp levels close to the '84 highs of 7% or so. if we get to 3% the market can handle it. but if we do it tomorrow or in a few weeks, being you have mystic, then i think the market is in for rough slegd. those would be knee-jerk reactions down we have strength in the markets. the analysts overrated the recovery in these companies. you are having a massive capex spending cycle that had been

declining last year prior to the virus. so you have pent up spending demand from ceos who want to invest in their businesses we are not seeing the byebacks because they will go towards growth w. the synchronized global economic expansion we are going to have a very, very strong economy that will drive rates up but the market will handle it because the economy is going to improve. >> bitcoin hit all-time highs today briefly topping 50,000 for the first time early today on squawks we had a guest weigh in on the future of digital currencies >> you don't want to go to a non-uniform currency where you are walking into starbucks and maybe you will pay with et ethereum, maybe with bitcoin, maybe with the dollar. that isn't how we do this. we have a uniform currency that came in at the civil war time. a dollar is a dollar >> steve, where do you stand at

bitcoin at these levels? what's the best way to get exposure to it >> i own bitcoin actually, believe it or not, through robinhood because the fees were the lowest the buy it there. the execution was also horrendous from the platform and i wired money one day and it took 14 days for it to clear versus wiring money anywhere else you get clearance in that day or the next day so they are playing with the float. robinhood, there is nothing free with it. in terms of where i stand, i don't see it being a currency any time soon, perhaps not in your lifetimes because of the volatility i am not sure it is a store of value. but i am also playing it through gbtc, which is the gray bar trust. that's a good way to get liquidity in it. i am there because it is a momentum trade what this market loves and traded to have last three or four years has been momentum as long as you continue to have these nods from corporate america you are going to see it

continue to move higher. let's not forget there is a scarcity effect there. it is a trade until it isn't i have been in and out multiple times. i am playing the greater pool theory for a little bit. there is smart people in it i'm just not a buyer -- >> i think he was going to say of it becoming a global currency let's talk palantir, plunging after this morp's results. josh lipton has more. >> palantir reported a beat on the top line and expecting revenue growth of 45 fundraise and then 40% why the selloff? a breather is expected after such a strong run. it is q 4 commercial segment

rising just 4% perhaps it looked disappointing to some. he notes a lockup of the sale of stock is lifting soon. analysts do think shareholders could take advantage of that and sell shares. back to you. >> josh lipton, thank you. mike, where is the valuation on palantir after the tremendous surge we have seen and now the pullback we have seen over the last few weeks >> it is a pretty towering valuation. i think it's in the realm of 25 times plus expected revenues for this year. expected to do $2 billion revenues, $55 billion market cap. clearly 30% projected topline growth is maybe not enough in the short-term it just had such a wild run and some of the volume levels have been just absolutely enormous in this stock 170, 180 million shares a day was not uncommon in january. it just became caught up in a lot of -- just the most trendy, most active names. i think a lot of that is burning

off here >> steve were these bad results or just a strong run-up in the stock for palantir i >> for me, palantir, it is nothing i am interested in frankly. everybody seems to be involved in it on the momentum side you don't miss your first or second quarter out as they did this quarter even though the growth is there, it is so expensive i can find other stocks to play there and still think i can get tremendous performance frankly this i think has lower to go. but the revenue number is fantastic. the question is will they achieve it because they misguided this quarter maybe they will do it again. i don't think it deserves this kind of multiple. after the bell, quarterly results from ev company quantumscape. >> this is the first financial report from the company since its ec ipo late last year.

these guys are prerevenue. so the numbers are not what people are going to be focused on it is more the guidance that's going to come from the analyst calls. three things that people will be focusing on, solid state battery progress what happened since their last report any new partners or complaints we know about the joint venture with volkswagen s. something else being involved? what's the path to profitability. you look at shares of quantumscape keep in mind what few estimates are out there they are all looking at 2028 projection asks doing a discounted cash flow back from there. so you have to really look out into the future before you see these guys at profitability. don't forget tomorrow morning, squooet, don't miss our interview with the ceo of can't up scape we will hear him on the analyst call in just a bit >> mike, what's the form on some of these recent ipo spacs when they start to report but don't have bottom line earnings yet?

does it sort of bring home the valuation question >> to some degree. the pattern has been once the deal comes in they don't perform as well as they do when there is a run-up how many steps are in this process of figuring out whether it is going to justify the $18 billion market cap it has right now from whether the technology is going to be ready and adopted all the way down to customers and profit. >> two minute mark, mike, to go before the close what are you seeing in the market internals dow is higher. others are losing momentum. >> a little bit on the softer side internally. breadth has been strong, hitting highs but today a little bit of a give back. up down stocks in the new york stock exchange from the open of trading it has been weak because you opened with strong breadth. then look at the housing, home

building sector, itb, that's actually taking the brunt today, down 3% of this move higher in treasury yields. of course it is going to feed into mortgage rates which are now near record lows and the itb up 25% on a one year basis a little bit of concern for what it does for affordability long term the volatility index, barely clipped below the 20 mark for a moment now up to 21 kind of rebuilding back after a three-day weekend >> just under one minute left. we are fractionally negative on the s&p, just higher on the dow and down about .3% on the nasdaq the russel is down about two thirds of 1% set for a record close on the dow. energy the best performing sector, up 2.3%. financials up 2% communication services the only other positive sector.

the other eight are negative the there are a is sort of flat today. oil is up nicely, 1.2% gold and silver both down today. and as we have been discussing, yields meaningfully higher, 1.3 touched today on the ten-year. advancics on the move, a recommendation by stock black is up 14% eight as we approach the close. that recommendation made moments ago on this show we have hit the clouse nasdaq down about a third. a 1% record close for the dow. sara. >> another day, another record high, just for the dow today welcome back, everyone, to "closing bell. i'm sara eisen here with wilfred frost and mike santoli, cnbc senior markets commentator look at how we finished up the day on wall street, dow closed up 62 points salesforce was the biggest contributor to the dow's gain.

the dow is now higher for a third positive day in four look at the s&p 500. it closed basically flat, hovering near an all-time high you saw a strength in groups like energy on the back of crude oil's surge given the cold temperatures and oil production off line in places like texas. consumer staples, utilities and industrials the biggest losers nasdaq pulling back about a third of 1%. there was strength in communication services which helped out the nasdaq but overall tech was lower the russell 2000 index of small caps down bm th-- almost three quarters of 1% coming up, quartly results from quantumscape an ev spac. plus a cnbc exclusive with the

ceo of eye max on the heels of a big box office weekend in china, where he is seeing growth and when he expects more u.s. consumers to go to theaters. all coming up. first, stephen weiss is still with us. michael yoesh cammi joins the conversation first, though, i will send it to you, mike, on the bond market and how that's influencing what we are seeing in stocks? >> starting to really get people's attention not just because of the levels, 1.3% on the ten-year but the steepness of the ten-year. maybe signaling the economy is going to roll before too long and what's priced into a lot of the segments apple was down 1.6%. i joke, it is kind of a bond proxy depending on how it trades restraint on the market at least in the nasdaq and financials, all time highs going back 15 years ago and longer seasons we

last saw some of these levels. a lot of give and take i think the backdrop is everyone is positioned for economy to get better if the rates move, stays very, very violent like this then you wonder about who is going to get caught offsides and it creates more stress on the financial markets. we are not seeing that yet. >> mike, you have been positive on the banks is there still room to run. >> i think there is room to run. i think interest rates are going to move higher i don't think inflation is out of control i don't expect it to be out of control despite the stimulus and the infrastructure bill that will likely come net interest margins help a lot. i think financials are i think a place where people need to be. you can't be only in technology as tempting as it may be i talked to somebody this morning about that you can't all be in technology because the world is going to shift. financials are one of the places

it is going to shift to, i think. >> you brought up inflation. you said you don't think it is a big worry. that really is the debate of the moment if we get more than $1 trillion, $2 trillion of stimulus passed. how are we going to absorb that from a markets perspective and economics perspective. why do you think inflation is not a worry or at least a sustainable risk facing the economy? >> i think it's certainly a risk i don't want to suggest that inflation is absolutely not going to occur but i think that you still have just major issues related to the covid virus even though market sentiment is very high and sometimes people confuse market sentiment with reality of what is happening in the economy you still have lots of unemployment and still have an economy that's not going to be fully open let's be hons, probabliers even if we are more optimistic in july it is probably not going to be fully opened until next year that is going to be a head wind in addition to the spike in oil prices

i think there are a number of issues that will cause the economy to slow. oil is sometimes an inflationary measure. i think there are lots of inputs that really are going to balance off some of the pressure for the economy to percolate higher in terms of its overall growth to make inflation be a concern, but from our view, not a major concern. >> steve, we have gone from around 1% on the ten-year to 1.3% in about the space of a month. mayorly quickly. if that pace continues and we get to 1.5 or 1.6 in another month, will that spook investors in the equity market significantly? >> well, i think it already is in certain areas of the equity market you talked about the underperforming groups, utilities, yield curves, ay, which is sustainable renewable company, it was off today for another other reason than it has high yield n. terms of spooking the overall market, that kind of move could do it but, again, i think it is a buying opportunity

because the economics are going to outweigh the increase in rates. and inflation as long as that stays under control. and i don't see inflation as a problem. i don't see energy prices on a sustained march higher matter of fact i think you are seeing close to the top in energy and it will roll over opec will do what it always does, increase production, whether stated or whether they do it behind the scenes, they will increase production you have got a blow-off event today which is the weather in texas. those are never sustainable for energy pricing and this won't be any different. so the move to green energy is still the place to be, not in fossil fuels. >> if we do see this continued march up in treasury yields, pike, which sectors are most vulnerable >> the pure yield sectors as steve said but i think you want to watch how it really filters through into the high valuation growth

years. it is interesting because it's not as if it's really the immutable math of the market that says if the ten-year is at 2% that somehow can pay 35 times earnings for microsoft or something like that, but it does actually give a little bit of a test to those valuations i would say that's where you want to look home builders. fundamentals are great, supply and demand looks excellent psychologically it is going to have an impact on building as well. let's turn to hedge funds. leslie picker has a look at why retail investors might be paying more attention to these reports than usual. >> reporter: retail traders have been searching out clues for where the big guys are putting their monies maybe they are seeking out vulnerabilities they can profit

from an example, game stop. it is paernd on the long side, too. if you remember the silver squeeze. others were urged not to follow suit because hedge funds were long a silver etf and could benefit. within the next 90 minutes or so we will see the bulk of filings that shows hedge fund longs, puts, and calls as of the end of december after witnessing what happened last month it is likely many funds which changed their positions in the six weeks since but some maybe not. >> leslie, thanks. steve weiss as we all know, they are backward looking. do you buy into the idea that we will see retail traders fishing around for other squeeze positions? we tend to get more long

positions in the 13fs than short positions. >> they don't disclose short positions. they do disclose long put positions. so if they are short through that way -- look, retail traders can comb the there fs. all they want. they are dated, number one and number two hedge fund traders are no better than anybody else. number two, they own a portfolio of stocks. to go in and cherry pick as a retail investor the results until the next 13f comes out buy names after doing research if you want ratification that viking, andreas owns it, that's great. smart investors. otherwise, i wouldn't buy it because it is on a list of four or five hedge funds.

>> or sell i mean, it worked with game stop, isn't it, steve. >> right. >> melvin capital. didn't that show up in the 13f and they seemed to successfully target it for a while? >> yeah. let's recall how they got there. the person on reddit had longed the stock two years and was pointing out what a value play was. then the stars aligned and they said okay let's go after this. short squeezes are always there. i own a couple stocks one of which has a high short interest. it is about 40%. i invite reddit to come against it i invite more shorts into my names. because that means they have got to come and cover a bench plate, i have been playing short sw squeezes for a long time, but only when it is accompanied by fundamentals. >> what's your top sector pick based on all the latest

developments here in the u.s.? >> i think given the valuation of technology, i think health care i think you are going continue to see more progress with this new vaccine development strategy that's been used for the covid virus. and i think that finally, instead of health care companies, pharmaceutical companies being the bad guys i think you are going the see a lot of people lining up to see what new vaccines are going to come out for what new diseases and there's going to be a lot of money thrown in that direction i think health care makes a lot of sense >> steven and michael thank you for joining us. when we come back we will talk with the ceo of eye marks about its monster weekend at the box office and the key thing that's driving ticket sales. plus we will discuss the pandemic pet boom with the ceo of zoetis. we are back in 90 seconds.

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you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq . shares of i max up 3% on the monster weekend with the chinese new year it is up 45% from its 2019 record remember, theaters were closed in china this time last year and still have capacity limits in place. joining us now, i max's ceo richard gal fant good afternoon, thank you for joining us talk us through this chinese weekend and what you think drove it specifically which it was sort of a pent up demand issue

or whether it will be repeatable for new the month and years ahead. >> nice to be with you, wilfred. i mean, we expected there to be a pretty good weekend. but beating your own record by 45% especially because it is an interesting time of year chinese new year is when it all shut down last year. a few days before is when the global pandemic started. i think there were a lot of factors. by the way, what i max did particularly well, but the industry itself is up 33% from its record in 2019 that means they sold this weekend about 90 million tickets. just put that in the context of the u.s. i think the only thing you could say is it's pent up demand that people just got tired of sitting on their couches, watching streaming or whatever else they did and i think they are just happy to get out. i think it foreshadows the rest of the world

i know there has been a narrative going around now that oh, people are going to get out of the movie-going habit people will be happy to sit on their couches. i completely degree. you lock at the results in china. not just in i max, but everywhere it tells you when it's safe to go outside and people want to go they are going to run together to the movies. >> update us richard on what exactly the restrictions are in china. we saw video there everyone is obviously wearing a mask but there were a lot of people there. what capacity restrictions are there? when do you think this sort of weekend can take place in the u.s. >> well, thanks for asking that, because that's actually a very good question. this all happened while there was 75% capacity limitations, which meant 25% of the theaters -- people weren't allowed in in beijing because they are being even more careful there

were 50% capacity restrictions they are not even fully open yet and we are having these kinds of results. the u.s. is different for a variety of reasons one is the studios are located in hollywood, los angeles, they look out their window and see some of the worst covid in the united states -- in the world as a matter of fact and they haven't decided when to open hollywood move east and it becomes myopic when you are in a place where the case rate is so high you also have the vaccinations going on in the country. you also have other major places like new york that are effectively closed about 30% of the box office in the u.s. is open right now, and probably around 60% of the theaters until you get those films available, and until you get enough vaccines in arms, you don't know i know you are going to press me

on my guess and anybody's guess is as good as mine, but if you asked me now, i would say something like may, june for opening and i am hoping by the summer it is back to quasi normal >> what are you seeing in the 30% that is open, richard? in places like new york, they did start indoor dining recently is it fair is it unsafe to go to movie theaters in this environment >> it is funny, because there was an article in some european journal, a scientific one. and it is 14 times more dangerous to go to a restaurant than a movie theater and you actually don't have to be an epidemiologist to understand why that is because in a movie theater, you are wearing masks, looking at the back of someone's head and on the screen it is a passive experience in a restaurant, you are taking it off to talk, waiters are interacting, people are interacting. in fact, movie theaters are much

safer. the reason that's such a good question is governor cuomo just announced that they are going to open sports arenas so it is hard for me to understand, youfor example screaming people who drank a lot of beer, you know, talking to each other, yelling, high fiving is in fact safer than sitting in a passive movie theater. but you know, becoming a cynic as this goes on, i think it has as much to do with politics and constituencies as it has to do with safety. i think if it was up to safety, the theaters could be open now like they are in most states in the country. >> richard i get the point you made earlier that the chinese weekend highlights how people do still want to go to the movi theaters, perhaps contrary to how some reported the story over the past year. i also get that perhaps you are more cut off from that theme anyway because you have the big action block busters than the

independencie flicks that said, do you think your industry is permanently damaged by what is likely to be a much reduced theatrical window for the long term? >> i don't think so. you use the words much reduced window universal has spoken and that's on block busters over a 30-day window. i think some of the other studios, disney, warner brothers, sony, are all thinking that through we had an i-max conference recently the head of sony went on and on about the importance of the theatrical window. if you look at some of the projects going on now, simultaneous pvod with the actual release or streaming, i think most of those studios have learned the lesson during a pandemic, it's okay, but in the real world, it is not going to happen that way you know, it is so easy to generalize about the present and i mean no disrespect -- i am

sure i will get mail about this. but my life and i watch bridgerton we really like it on netflix but she turned to me afterwards and said what are the chances a year from now when we can go to the knicks game or go to a concert or to a movie that we are going to spend eight hours watching bridgerton. i don't think that answer is very high. look at the chinese results, beating the record by 45%. it tells you people want parts of their normal life back even more than they wanted it before. >> you clearly didn't like bridgerton as much as i did, richard, because i would watch no matter what is open we really liked it, to be clear. we really liked it. i wanted to ask you what you thought of the wild ride that amc shares have been on, the fact that it was targeted by retail day traders as a short squeeze, and the stock has

surged is there a fundamental case there? what do you think about it >> the major fundamental that changed was there was a risk of bankruptcy at the time it was trading down to around a dollar. and adam and his team did a good job of taking on debt working in different ways before the short squeeze the chances of bankruptcy will last. as a result of the short squeeze they raised about $1 billion and i think they put that risk way behind them right now. so they chose the right target at the right inflection point because the interruption risk was so much less you know, whether it was worth in the 20s then or whatever it is now is a complicated question i still look at companies like tesla and smaller tech companies -- i'm an old timer. the good news, i look at i-max and look at our earnings

potential in alliance with my old time reliance on valuation but it helped remove the bankruptcy risk. >> thank you for joining us. always good to catch up with you. >> thank you. up next, mike santoli back at the telestritor with a deep dive on earnings forecasts speaking of earnings, zoetis beat on the top and bottom line. it has been a moon shot since being spun out of pfizer weilsee at wl wh's ahead for the company with the ceo a reminder watch or listen to us live or on the go on the cnbc app we are back after this ally changed my life. it was the easiest application process. sofi made it so there's no tradeoff between my dreams and paying student loans. student loans don't have to take over for the rest of your life. thank you for allowing me to get my money right. ♪♪

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news alert on berkshire hathaway the 13f filing is out and moving stocks leslie picker with the details >> sara, that's right. the two stocks moving as a result of this filing include chevron and verizon. berkshire hathaway revealing stakes in both of them about 48 million shares worth $4 billion in chevron that's as of december 31st and in verizon, 147 million shares worth nearly $9 billion as of the end of december.

now these two names, they had actually held the stock -- both stocks as of september 30th, the previous quarter but they had been kept confidential before. this is the first we are learning about these two names although it appears that berkshire hathaway has been holding them for quite some time took a smaller new stake in marsh and mclennan. >> no longer reporting a position in pnc and jp morgan, which is interesting an ongoing move in that direction to sell down their positions in the banks. kquantumscape without with quarterly reports. >> the company reported a fourth quarter result -- nobody had an estimate on what to expect they lost $2.41 a share. there was no estimate out there. this is their first report since going public they are prerevenue but there

are three important announcements. first they are developing a prepilot line sell facility. that will be developed in san jose second, they plan to enter 2022 with over $900 million in liquidity, enough they say to see them through first production thirdly, they plan to spend up to $290 million in opex and capex. put those together and people are saying okay we have developments we will hop on the analyst call which starts in about 35 minutes and we will hear more from the ceo of quantumscape. don't forget, tomorrow morning we will talk with him exclusively on "squawk on the street." >> nice call from adam jonas at mardi grasson stanley. liked the stock last week. let's go back to mike santoli for a look at earnings

estimates broadly. >> they are speeding higher. s&p 500, the blue line going back to 2015, raced hirer. stock prices tend to lead the fundamentals when it comes to these inflection points. in this rendering it look like earnings forecast are catching up to the stock market but look at this period of time. when earnings raised higher after the tax cuts in 2017 and 2018 and flattened out here as stocks got more expensive relative to those earnings right now if you think the s&p 500 can earn $200 it means it would outperform forecasts by 15 percentage points in 2021. it is aggressive you are still at 20 times earnings that's a give and take on the valuations. mike thanks. still to come, behind the big boom in pet care the pandemic has led to a huge uptick in pet adoption now zoetis is betting demand for its products won't slow down

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your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity. pet care company zoetis beating on both the top and bottom lines this morning. the company seeing strong momentum for 2021 despite the pandemic uncertainty giving full year guidance of 9 to 11% revenue growth. the ceo, kristin peck joins us now for an exclusive interview good to have you back. >> thank you good to be back. >> big growth still in companion animals. is it the pet adoption theme

running strong. >> the pet adoption theme i think will continue. we saw great momentum in q 4, which as you just mentioned will mean some strong performance for us in 2021 we did give guidance of 9 to 11%. a lot of that is being driven by growth in our pet care business. a few drivers of that, one is parasiti sides we are excited at the success of a new product last year, doing $170 million we think that area is going to be great growth. great growth in dermatology as well for us as well as diagnostics. it was a strong year in 2020 but we are looking forward to 2021 and the growth is being driven not just by pet adoptions but people more time at home with their pets noticing more and the innovation that our portfolio continues to deliver. >> how do you think about what the future holds in that sense once we get more vaccines and people start to go back to work

and we all go out more, are you going to be facing some pretty tough comps? >> we don't think so, for a few reasons. one, i think once you have a pet and they become part of your family -- we talked before about the humanization of pets you know, you are spending more time with them they are becoming more and more important parts. veterinarians have found ways. curbside, telehealth -- i think pets are still going to be a very important part of the family when you combine that with the innovation we are going, best the class monoclonal antibodies, that level of innovation is going to be sure to bring pet owners back to clinics to get the best care for their animals. >> why was livestock down 7%, kristin? will that persist? >> sure. i mean, overall for the year livestock -- 202 overall it was a zero it was a tough quarter if you

look at q 4. we are in a business that can be driven a lot by weather. when the cattle moved in the u.s., which tends to drive a lot of sales, we had a really strong q 3 that really drove a lot of the q 4. i think the real story in livestock as we move into 2021, where we are expecting a return to growth in livestock is being driven outside the u.s 60% of our livestock business is outside of the u.s and we are seeing tremendous growth in markets such as china and brazil rebuilding the herd in china after asf as well as strong fundamental growth in some of our major markets outside the united states. >> kristin, question on innovations, which you said will continue to drive growth we have seen such amazing medical advancements lately for people mrna vaccine technology. monoclonal antibodies to fight covid-19 can any of that be transofficered into innovations for pet health >> absolutely.

we had our first approval of machino clonal antibodies a year ago. we got two more approvals for monoclona antibodies for osteoarthritis we can leverage a.i. as you look at the launch we had in september of last year for vet scan imagines, which is first indications for fecal. but really you can do it in the clinic, point of care, at your visit. they can take a sample, scan a picture of it and then we can tell you if there are any parasites there then at the visit and show you a picture of it i think some of the technologies in hume health such as a.i. can be brought to animal health and we are excited to see the growth of that platform. >> where do you stand on cbd products and similar products for pets and whether pet own

remembers qualified to decide when they might be appropriate to give to their pets? >> sure. it is an area we are watching. it's not an area we are invested in we tend to invest in things with strong scientific innovation type back grounds. i don't think i am the best person to comment on individual owner decisions. it is certainly a fast-growing area but at the moment it is mostly over the counter with lots of great new products it is a face that consumers are truly interested in. as we look at the strengths of innovation and science-based for us at zoetis, it is just not an area of focus for us. >> finally, the 9 to 11% growth rate you are guiding to can the high end of what was predicted talk us through what you are seeing is that the china opportunity? >> we are underrepresented in parasite sides

deck deck that's one derm is another. diagnostics. and china, which has just had outstanding growth as you saw for us in 2020 we had about 34% growth that's because we invested for the long term w the strong performance and the steady cash flee we have we are continuing to invest long term. china is a great example where it is being driven not just from livestock but really equally between livestock and companion animals. that is a important driver for us but the important thing is -- >> still no "closing bell" dog yet. >> it is one of those ideas that we are all very warm to, but practicality of it might cause issues. still to come, the reddit ghw ing frenzy has shed ne lit on the inner workings of wall street. could some big changes be ahead? we will discuss when we return

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welcome back time for a cnbc news update. >> hello, everyone here's what's happening at this hour 15 states are suing the national

highway traffic safety administration over a delayed increase in emission penalties for automakers that fail to meet fuel efficiency requirements reg will iters say the delay could save car companies up to $1 billion a year. the biden administration is urging nations around the word to act quickly to stop ebola from spreading in africa the world health organization is warning six african nations to watch for cases afteroutbreaks have been identified in ghana and the democratic republic the congo. 66-year-old david villa headed the $130 billion wisconsin investment board he also frequently appeared at cnbc's delivering alpha event. the cause of his death was reportedly cancer. you are now up to date that is our cnbc news update at this hour. i will send it back to you, sara. >> thank you. we have a news alert on melvin capital, the center of the reddit trading storm

leslie picker with more. >> that's right, sara, it was at the very center of the reddit trading storm with a lot of dialogue on reddit about kind of taking down this firm as a result of its put positions on game stop, something that traders found, based on their third quarter filing well now we have their fourth quarter filing which was just disclose this is as of december 31st, so right before we really start to see this frenzy over game stop shares toward the middle and back half of the month of january. and interestingly, melvin capital upped its put position they owned about 6 million puts at the quarter end, increasing their exposure there by 11% from the prior quarter. now, we don't know what their position was exactly as this was all unfolding over the course of january. all we know is as of december 31st, they had recently increased their exposure there now, the firm did say that they had closed their game stop

position amid all of that during january, during that time frame. and we will be hearing from melvin capital they are set to testify, gabe plotkin is set to testify on thursday at the house financial services committee so we should be hearing a bit more on that front later this week. >> but you get a sense of just how painful that was if they did keep that short position >> exactly not only kept it, but increased it. >> yeah. up next, does wall street have a plumbing program? speaking of the game stop trading frenzy could shed new light on how markets work behind the scenes and some top industry experts calling for ching quantity u ape reporting results a few minutes ago saying it has enough liquidity to make it through its first production cycle stock off the highs but still up almost 6%. we'll be right back.

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the game stop trading frenzy has brought some of wall street's behind the scenes systems into the limelight now there is a big argument for change kate rooney with that story for us. >> wall street's back-end infrastructure is getting tested as a record number of new investors pour into those same volatile stocks. let's start with the brokers

everyone from robinhood to charles schwab saw more out ans on number mobile apps and website. analysts say this was thieu to what they called astronomical volumes. and putting up collateral in customer trades in names like game stop that was active on reddit be robinhood is pushing for more real time settlements instead of the two-day process. and a different type of stress but payment for order flow market makers in that behind the scenes revenue model are now seeing new pressure and pushback from lawmakers wilf, back to you. >> kate, thanks for that set up. mike we are all going to be eagle eye focused on these hearings it is going to be interesting to see what comes out of it clearly some of these aspects have been brought into the front line of discussion over the last couple of mondays but are well

understood and have been around quite some time in the industry. >> without a doubt we talk about the settlement process. it is not as if this was a antiquated thing, t plus two it was t plus five in the '80s and it was a big thing to get it two t plus three and then went tot plus two three years ago i think technology pushes it in the direction of having shorter settlement trades. but also having fully funded trades up front. that's not a the way it works. you trade and then you figure out what money is in what account. things like that the issue it became an issue with robinhood in particular is because the customers' massive concentration of a small number of very volatile stocks. that's why the firm had the outsized exposures and had to limit the new positions in those areas. it is not something that the bigger more diversified trading

houses have. it is robinhood focus in on it and they are unable to handling those volumes. another racial discrimination lawsuit filed against mcdonald's today details on what the company is facing after this break. you're sitting in the place where giants ate. the four way is the heart and soul of the community. ♪ man: "fender bender," take 1. tonight's matchup: me versus an ugly fender bender. if i can eke out a win, it's going to be a miracle, baby! uh, mr. vitale? it wouldn't be a miracle because geico gives you a team of experts to help manage your claim. it's going to be a nail-biter. no, the geico team is there for you 24/7. geico is awesome, baby!

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a new lawsuit filed against mcdonald's, our kate rogers has the details. kate. >> herb washington a former oakland a's player has filed a civil rights lawsuit against mcdonald's claiming that the fast food giant discriminated against him by leading him to buy low volume restaurants h. e operates 14 units today down from 23 in 2017. the suit says he was the largest black franchisee in the u.s. at one point. >> consideration and breaks that mcdonald's routinely extends to white owners to ensure they're successful and when i spoke up and objected to this treatment and the treatment of all black franchisees, mcdonald's merely told me shut up, go back to the grill and flip hamburgers. >> the company said in a

statement to cnbc that washington is facing business challenges and that he's been given multiple opportunities to address those issues adding, quote, this situation is the result of years of mismanagement by mr. washington whose organization has failed to meet many of our standards on people, operations, guest satisfaction, reinvestment the company also said it's currently reviewing the claim. back over to you >> it does raise the question, kate, about how many of these franchises from mcdonald's and other fast food companies around the country are black owned. do we have numbers on that >> you know, sarah, that's not a number that i have off the top of my head biut this suit and to other lawsuits filed against mcdonald's in the past several months have basically said the number of black operators have been cut in half in recent years. it was over 400 at one point it's just under 200 right now. they also allege there's a big operating cash flow gap between white operated restaurants and black oerpted restaurants of

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quick check on shares of quantumscape, ev battery maker kind of pre-revenues up 7.2% off the back of earnings, and tomorrow investors will be watching for that interview coming at 9:15 with the ceo of quantumscape this is the first quarterly report since going public. we've also got a number of other earnings tomorrow, hilton, shopify, twilio, of course the federal reserve minutes, mike. and you've got these names moving, retail names we're still watching them. you know, imax ceo was on this hour of "closing bell," the stock is shooting higher after hours on some of his comments talking about returning to normal hopefully by may. it's just indicative of the fact that there is so much more retail participation in this market than we had say in the last few years look at this move. this is just on a cnbc

interview. and i get it, a lot of people watch us, but it's kind of a new phenomenon that's developed here. >> it's a new old phenomenon it reminds me of back 20 years ago, that's the way it was people just sort of listening for the incremental mention on any old ticker symbol, and that's kind of the way it's going. everyone was waiting for the 13 fs, everyone's waiting for this mystery new stock berkshire hathaway was going to buy. look at davita intraday, it shot higher because the it was reported berkshire hathaway owned 32% stake. not a new position, it was just a marginal little increase in the holdings, and it show higher during the day and then came right back down because people just jumped on it. that just shows you how people are completely primed to try and grab any little scrap of potential new information or reason for a stock to move >> i get it. a lot of people watch us alike that quote, sarah.

of course last week charlie revealed he gets accosted because of his appearances on "closing bell. >> on the street >> you're obviously right about that statement and mike, the other thing i was going to bring up, which we didn't do in the show, we finished sort of flat on the s&p today. that actually is in quite stark contrast to the rest of the world, europe in particular oaf the course of this week. europe was sort of flat today. big gains in europe on monday when we were closed here so so far two days into week, the u.s. is, you know 2.5% behind. >> just kind of stalled out on a relative basis a lot of that performance has a lot to do with how the huge nasdaq stocks are doing. that's really the distinguishing factor of the u.s. market is where you have this massive amount of market value in those huge tech platform stocks. if they aren't working, usually the others can catch them. european banks have been incredibly strong. it's not just been about u.s. financials, and this yield move globally definitely has kindled

that trade again. >> the other thing of note, keeping an eye on the dollar, which has restarted its weakening tread of late. gold was weak today, mike, but oil continues its surge. >> oil, of course there's fundamental reasons, weather reasons for that we'll see if the rest of the market is getting to the point where some of these trades are getting stale. people are very short bonds right now. >> that does it for us, thank you for being one of the many people who watch us. "closing bell," "fast money" now. >> r. tonight's trader line of guy adami, and technology permitting brian kelly. tonight on "fast," a new record for the dow, a year since hitting prepandemic highs. the benchmark index seems unstoppable. could there be a threat lurking in the wings why you might want to be wary of the dreaded i word and later five-time nba all star chris weber has a new project that could light up one re