we will come back to you to talk about it more in the future. greg marsh, we thank you very much. >> thank you. courtney, it has been great to be with you this hour we are watching bitcoin. i know they are going to watch it for the next how hours as well as the dow, s&p, and nasdaq, which is now way off its lows. >> that's right. and the dow is just now positive here that is it for "power lunch. now over to "closing bell. >> courtney, tyler, thank you both very much welcome to the "closing bell," everyone, i'm wilfred frost along with sara eisen. the ugly turn lower continues on wall street, although we are well above the worst levels of the day. let's look at what's driving the action first off, take a look at the one-week chart of the nasdaq we were off by more than 2% of the lows of the day today, and down over 5% for the week as a whole. let's also have a look at the 50 day moving average we are below that level, too high rates continue to be the story. but fed chair jay powell is

continuing to stick to his message, saying we are a long way from normalizing policy. and data still coming in better than expected. housing numbers booming, consumer confidence beats reopening plays are continuing their move higher, the nasdaq, as we stand down only 1%, sara, well off the lows. >> really another lopsided trading action growth underperforming value coming up on today's show, two key reads on the state of the consumer and the economic recovery we will talk with precinctor and gamble's ceo david taylor, whether americans are continuing to hoard cleaning products and whether he is expecting a post covid baby boom. lus the ceo of chipotle joins to us talk about restaurant spending and what that will look like on the other soid this pandemic. and later, ceo of voting systems company dominion he filed a lawsuit against the ceo of my pillow related to claims about the election. let's focus on the big

storieser with watching. one hour left of trade mike santoli tracking the pullback also looking at today's tesla accelerating tumble. we have the big takeaways from jay powell's testimony mike, let's start with this volatile day in the market tech hit hard again. >> it was. it looked like a mini capitulation in terms of the megsy selling at least in large cap tech we have bent but not broken in the longer term trend. the s&p 500 here you don't see the intraday low, which was down around 3,800 it did kind of break below this narrow channel here just as we did in last january. the question is was it just another test we got down near the 50-day average if you care about the technical stuff. it has been technology tesla emblematic of this move in terms of digesting a massive gain, breaking technical levels, having some of the kind of self-reinforcing options buying

that had driven the stock up working in reverse i have a one-year here i want to point out thresholds on this chart. it was just before $400 a share when it was going to go into the s&p 500. it goes in to the s&p 500 december 14th, i believe, at $695 per share right there, that's the spike higher now you have kind of broken below that and done this big round trip i want to point out you are still working into massive "fast money" gains here, it is not cutting into that much muscle. the entire history of tesla in terms of declines off of a high. these are the deepest --you know, you see some of these deep ones of course that was march of last year understandable this morning, it was around 29% drawdown from a recent high. but it has had multiple of these pullback, very severe, down 25 and 30% over the course of its

history. in 2010, it went from $3 up to a hive $900 before this pullback i do think a lot of the crowded tech stories areting a little bit -- having some flight out of them i don't know if you want to necessarily say that it is all of a sudden kind of game over. seems still like a little bit of a jagged realignment of investors preference right now away from growth. >> mike, great context in terms of the scale of the pullback this is now the biggest pullback since the lows last march. >> for sure. >> the question, for the retail traders that may have entered the market and this stock in the last year may be feeling that pinch? >> no doubt. so much of the activity has been in the call options. you had this massive amount of buying at higher levels because volume would swell up in those areas as well. yes, there's lots of people who are feeling trapped right now in this stock i don't think it is really the

s&p 500 index holders because it is so diversified. it is 3% of the nasdaq it is definitely taking its toll but it is definitely moving. kind of an accelerated version of what is happening in some of the other big expensive growth stocks. >> fed chair jay powell testifying before the senate banking committee today laying out his thoughts on everything from inflation to employment steve liesman has the big highlights for us. >> while markets have growing worries about higher bond yields and inflation, fed chair jay powell in day one of the two days of testimony on the hill making clear neither of those who change easy fed policy any time soon. here's what he said about inflation is this we have averaged less than 2% inflation for more than the last 25 years. inflation dynamics do change over time but don't change on a dime we don't see how a burst of fiscal support or spending that's not -- that doesn't last

for many years would actually thank those inflation dynamics >> powell saying repeatedly during his two-plus hours of testimony that his big concern is recovering the 10 million jobs that remain lost from the pandemic the recent surge in bond yields -- powell attributed it to expectations of an improving economy. the ten-year yield eased off about three basis points after powell began speaking suggesting some measure of success on his part powell didn't rule out some change to fed policy later this year but he made clear any change was many months down the road, would be gradual, and flagged well ahead of time wilf >> steve, i just had a quick question about something chair powell said that was interesting to me. he talked a little bit about research and interest in the digital dollar and it's something that secretary -- treasury secretary janet yellen also sort of expressed openness to for the first time, i think that we have heard from these high-ranking officials. what does that look like is that something that the u.s.

is really likely to take on, as china doing? and how would that affect monetary policy? >> so the fed for quite a while, many -- i could say beginning under janet yellen began studying the idea of a central bank digital currency. you know when the fed says they are studying something, sometimes it's a way of easing pressure for us asking about it. and sometimes they are really doing something about it i think they are really studying it there is a study now with the federal reserve bank of boston and mit where they are looking at a central bank digital currency the parameters are shaky and powell see it this as a two, three, four five-year embarkment they are trying to speed up the payment system on one hand that's sort of a crypto thing. the other thing is a diltal bank

cryptocurrency i don't know what that heens, but it is something the fed is studying now. after the break, shares of proctor and gamble almost exactly where they were one year ago despite customers spending big on cleaning and hygiene products during the pandemic we will discuss the stock price and the outlook for consumer spending with ceo david taylor next you are watch "closing bell" on cnbc

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dow session highs with less than 50 minutes left of trade. it is up about 35 points disney in the lead that stock break out to new highs on the reopening trade. the s&p 500 has gone positive. we have seen this recovery across the major averages. it would now break the losing streak it has seen over the last five days if it close inside the green. the nasdaq now down only half a percent. it was down almost 4% earlier in the session.

in the open we saw that big drop earlier. the dow is down 300 points shares of proctor and gamble are down 8% despite growth across all of its categories. he spoke with ceo david taylor about where he sees consumer trends and whether people at this point, with vaccinations rising and cases falling, are still hoarding cleaning products >> no, they are not hoarding anymore. they are in -- in many cases they are working offthe inventory they have built at home i think consumers recognize there is still a lot of variability ahead in what could happen so they are going the maintain a little more than they did prepandemic. but no i am not seeing the hoarding anymore. >> how do you think about life after the pandemic as far as the consumer habits and changes? what's permanent, and what's not? >> i think many of us have experienced now over a year of changed behavior so from our copy perspective, health, cleaning and hygiene

categories will take an increased importance than they did prepandemic. i think we have all gotten in habits of cleaning more often. we have got in the habit of the home being a bigger part of our life e home is our fitness room, the home is in many cases our office, and home is certainly where we live with our family. in many ways these habits will likely sustain for an extended period of time post pandemic that bodes well for many of the categories we compete in the other thing that the pandemic did was caused consumers to move towards trusted superior brands, which then benefitted companies like p and g. >> given that message, that a lot of these trends are here to stay and that the trusted brands are working, are you frustrated to see the stock it is really barely moved even though we have seen the overall market sort of take off here i get that we are seeing higher rates, and the dividend paying staples aren't exactly in favor.

but is it frustrating given the kind of numbers you are putting up and the forecast you are making >> i think you said it stocks are -- or industries can go in and out of favor what we can do that's in our control is continue to deliver strong results and yes, certainly my hope is my belief is over time strong top line, strong bottom line, with good fundamentals, will get rewarded over time by investors. i think they see p and g as a company that's delivering that. >> what have you learned or changed about manufacturing and the supply chain over the course of the pandemic? >> it certainly caused us to look back at our business continuity planning to make sure we had additional alternatives in addition to the pandemic we have seen things like the storm that just hit our country. we have seen floods in some countries. we have seen volcanos in some countries. having a system that allows you to flex your supply chains and

your inventory. >> has it resulted in higher costs, manufacturing, freight, raw materials? is that going to be passed onto the consumer >> we haven't chose to pass on the freight impacts. we are working hard on things like cost savings to offset it again, i think some of the spriks we have seen in freight, both ocean freight and trucking costs here and in other countries, some of that is driven by short-term changes over time in the rise in e-commerce there might be pressure on freight and some other costs. but we first look to make sure we can offset what we can through cost savings we want to maintain outstanding value to the consumer. over time, if there is broad cost increases we will have to think about what's right in terms of pricing but the core is great consumer value. >> so sounds like it's not happening yet. >> no. >> the company just got a $900

billion shot of stimulus are you seeing that in consumer spending yet >> the category has been robust. people are at home and our categories are used at home. i certainly think that anything that enables the consumer and enables them to have more flexibility will benefit p and g. over time i think the pandemic has had a meaningful change on their behavior and they have rethought about where they spend money. post pandemic it will be interesting the see on some of the spending that's been diverted into the categories focused at home what may happen. my belief is that health, cleaning and hygiene is going to remain strong post pandemic. >> do you worry though that when the stimulus effect wears off, even if we get a new batch this year, that eventually people will trade down to cheaper brands than tide and owe lay and

use generics >> i don't think that's true we have a broad portfolio, so we cover different price tiers. in each price tier we work hard to have superior offerings in many cases people choose the superior performing product because it gives them a meaningful difference and then the cash outlive a many of our categories is not that high. if we can provide brands consumers trust and superior performance i think they will continue to choose to purchase our brands we are seeing that in many countries. even in the developing world we are not seeing a massive trade down where there is not the stimulus payments n. fact we have seen in many categories here in the u.s. increased household penetration. more consumers have come into our categories and our brands this the last year than they did in the previous years. those consumers have now been exposed to superior performance. and post pandemic, i think many of them will stay with our brands. >> what about grooming in

particular i noticed that it has been growing, custom is a reversal for you. -- which is a reversal for you are people shaving more during the pandemic, during the quarantines? i thought it was less originally what is happening? >> you are right, they are shaving less during the quarantine but grooming also includes dry shave. our brawn business has been very strong we have seen strength in the brawn business around the world. we have also seen strength in our female grooming business but we are seeing male grooming in many cases, wet shave continues to be down when people are at home, they do shave less ask that reduction incidence has an impact in aggregate, though, we have worked very hard to make sure we serve people with facial hair and people without facial hair now we have a broader line of products that help people that want to style their beard or have other needs or other grooming needs, both wet and dry, male and female. >> which also brings me to

beauty you have brands which were growing, explosive growth before the pandemic, like sk 2. what's the outlook there as places like china where that was a hot market have opened up? >> our beauty business continues to grow nicely that product was affected when the travel retail channel was shut down. that was an important channel for sk 2 but it refocused on domestic consums in each of the countries where they offer it. china, hong kong, taiwan, korea or japan -- they have done a nice job we are seeing good growth this year we expect to continue to grow for the balance of this year by serving domestic consumers when travel opens up, we will make hard to make sure we reearn the travel retail business. >> got to ask about babies and the diaper business in particular as we go lieu the portfolio. what are your expectations for any post pandemic baby boom or the opposite >> what we have seen so far is a

reduction in the birth rate in many countries the u.s. and many countries around the world during the pandemic i don't certainly know what will happen post pandemic, but our business is still growing. one way we grow our business is the premiumization and extension into other areas so wipes is doing well pants are doing well as a segment of the baby care market. we will work hard to make sure we are present and superior in those areas that are fastest growing. in total with the birth rate going down that puts pressure on the category but the increased household penetration we can have in countries around the world allows us to still grow that business. then post pandemic my belief is and hope is that people have more confidences to make choices on what's right with their family and maybe have fewer health concerns that existed this year. >> how much of the overall business is happening on line right now?

>> above 10% for this country. and more like 40 or 50% in other countries like china and korea in the first half of theier our e-commerce business was up almost 50% it is growing really fast. that's one habit i think will last post pandemic people are used to the convenience. they found this can meet their needs and we want to be present wherever consumers want to shop. on line, click and clack collect or in store, we will work hard to have programs for our customers to reach our shoppers where and when they want to shop >> david taylor, ceo of proctor and gamble would not name names when i asked him which retailers have done best to pivot. the story we are seeing and what we have seen from the numbers has been one of top line growth for this company they have been a pandemic winner he is laying out the reasons why he expects to see that continued

growth, whether it is changed consumer habits toward hygiene, the trend toward premium loved old school brands during the pandemic he sees that continues or just growth in the economy in places like china where they have a big presence. the stock, though, as i mentioned, staples are the worst performing sector for 2021 they are not meme stocks i think they are the opposite of that they are certainly not stocks in favor when yields are going higher and the street hasn't been convinced that these kinds of sales we have been seeing -- p and g had its best july sales in decades taylor painted the picture they expect them to continue to grow. >> topline growth despite less sales in men's shavings, unless of course you still have to shave n which case you still have to buy the products great stuff. s&p 500 up .4% as we stand

the dow is up 100 points, plus and the nasdaq is only down .3% now with 38 minutes left. still i ahead on the show. >> oh, my god. chipotle is still my life. >> a viral tock video of the chipotle kid with new products we will speak with the ceo about soaring on line sales and more checking out the top searched tickers. tesla, and louis it motor spac and churchill capital. tesla is at 703. it got down to 620 or 630 soon after the open well off those lows. churchill capital still down well over 30%. we are back in a couple of minutes.

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the nasdaq still the biggest laggard of the major averages. well off its lows. apple was down as much as 5% and just went positive a major bounce mid session steadily throughout the session. let's get check in on earnings movers macy's reporting an earnings and revenue beat this morning. the company saw same store sales

fall less than expected. the stock up 5%. itself a big intraday recovery story. shares of home depot are falling despite an earnings and revenue beat they are not ri providing 2021 guidance that's pressuring the stock, down 3%. still ahead, shares of square getting hit as the company gears up for earnings after the bell and the downturn is closely mirroring the price action in bitcoin. we will break down those results as season as the numbers hit. quick check on bonds yields mixed across the curve today. the ten-year is higher, yielding around 2.36% one-year highs continuing to be a big focus. the long bond. yields fell a little bit after fed chair jay powell said the economy still needs his full support. we'll be right back.

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30 minutes left of trade dow is now up 130 points what a turnaround.

time for a cnbc news update with rahel solomon. hi, rahel. >> hello good to see you. here's what's happening at this hour, everyone golf icon had to use the jaws of life to -- tiger woods has been in an accident. he was brought to the hospital. new witnesses have been subpoenaed to testify. the federal government steams sob narrowing the folk fous the officer who kneeled on floyd's neck. pilgrims pride is being sued for conspiring to fix chicken prices and suppress competition according to the justice department. nasa left a secret message on the parachute carrying the perseverance rover down to the surface of mars. when decoded, the parachute means dare mighty things, it is

also on the wall where mission controllers watched the landing. for more on how the code came to be watch "the news with shepard smith. for me the rest of the day. coming up, we will discuss business their the biden administration and the frimwork for inclusive capitalism as we speak to lynn doorester dethros child and tim ferguson coming up next on "closing bell." [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito]

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sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. the coalition for ininclusive capitalism looking to create economic policies that benefit all workers through its now framework for ininclusive capitalism created by a commission, it features 21 policies aimed at creating more opportunities for workers, expanding the work force, and enabling fair game sharing for workers. joining us now, lady lynn

forester derockets child and roger ferguson thank you for joining us good afternoon lynn, i will start with you, if i may, which is just a big picture point as to why you founded this grouping in the first place. and my broad question is, did you feel that capitalism was genuinely underthreat without progress of the sort you are trying to seek >> well, to answer your second question, i definitely believe that capitalism is under threat, that we cannot have these levels of inequality and injustice, and destruction of the planet that in many ways have been caused by our free market markets and expect the social contract to survive. it's certainly been under a lot of strain. and it was because of that strain that i thought to put together this commission and vital to the commission was

the situation where we were before covid and before george floyd, but we still had a situation where inequality was at levels in america where many of the wealthiest people in america were saying, this is terrible, this is terrible and the facts merited it since 1979, the stock market had been up 600% worker productivity had been up 70%. and average worker wages had only gone up 12% so we were definitely in the midst of a problem and it seemed to us that whatever administration was going to get elected, and little did we know that we would end up with a president who said he would be rewarding work rather than just wealth but when we started, we decided, first of all, we were going to be very, very diverse. republicans and democrats. we were going to have geographic base from new york to florida to

texas to ohio and california and also, gender and race diversity as well as professional backgrounds so we brought in corporate leaders, and investment leaders, and we consulted with labor leaders, and public policy experts. and we said, let's be bold, but pragmatic. and let's come together with some policies that whoever wins in 2020 can address like a laser, we said, the concerns of the american worker. because it's really obvious that the american worker has been left behind even while the american worker is the reason that we have the prosperity that we do. >> and roger -- storry, lynn i was going to ask to what extent this problem has been accentuated or created over the last ten to 15 years by the loose policy that we see from central banks around the world

something that fed chair jay powell recommitted to just today in terms of driving higher financial assets, assets that wealthy people tend to have exposure to, but not leading to the same level of wage growth? >> what we have seen from the fed is an evident to try to do two things one is to meet their overall commitment for maximum sustainable growth, including maximum employment and so we have actually seen the fed maintain a very loose monetary policy by historic standards, and even compared to perhaps some of their own models as they work really hard to bring more and more people back into the labor force so that's actually been one of their priorities under janet yellen, and also now under chairman powell. and indeed, we have seen them talk about unemployment rates that need to continue to come down so i would say they have worked hard to bring people in the labor force. having said that, you are also right that, you know -- and central banks -- in central bank speak we say one of the

transmission mechanisms for equality isn't the asset prices. some of the inequality we have seen is due to the stock market rallying and house price going up it is pair to say those assets are owned disproportionately by wealthy individuals. having said that, i think it is important to bring in broader changes because some of the inequality, wealth inequality that lynn is talking about started in the mid '70s. that's when we started to see this problem emerge. and similarly, the decline in the number of people who describe themselves or would be described as middle class also goes back many, many decades i would be cautious saying all of this is due to current monetary policy while also saying current monetary policy supported asset prices which is also owned disproportionately by

wealthy people. >> lynn, you have a detailed proposal of how thing can be improved one thing that comes up is hiking up the minimum wage sometimes it is described as socialist. is it hiking it capitalist where do you stand on it >> the commission encouraged a move toward the $15 minimum wage i stand squarely with that that means a person working 40 hours a week will earn $30,000 a year so it's really difficult to believe that that's going to put too much stress on certainly big companies. and it's versus willy possible r policy to maybe tempt the teenager who lives at home or to take into consideration certain sized businesses and certain

locations in america but $15 minimum wage is absolutely a necessity i mean, franklin roosevelt was talking about a decent wage. and he brought business along with him in the great depression to lower hours and increased wages. we have got to do this and it really has got to be part of building back better. >> roger, senator elizabeth warren today, in the senate banking committee hearing with chair powell, brought up the idea of fixing wealth inequality through taxes, through fiscal policy, really and she has been advocating, did so on our show, for the wealth tax. is that the way to go about it >> i wouldn't argue that's the way to go about it i think looking at taxes, both income taxes and other taxes, certainly has to be part of a package of solutions given the fact that we are looking at a system that has gotten out of whack and it has

taken 40 or 50 years to get there, we are going to have to look at a range of solutions and not say there is a way to look at it. and taxes should be part of it we shouldn't pretend it is otherwise. however there are broader activities as well one of the priorities we have been working at is obviously getting the private sector organizations through these commitments to determine what we can do in the private sector even as policy makers try to hash out some of these tough macro economic issues. so my belief, as a capitalist and a person who leads a very large company that has a large stake in capitalism is we need to look at the full range of things taxes, for sure. because of the redistribution aspects, without undercutting the incentives to invest and grow we need to look at other kinds of regulatory fixes. we need to look at what the private sector can do. we need to think about

education. there are many, many tools here. and i think we need to be expansive in our consideration of the various approaches that are necessary to try to make sure the capitalism maintains its role as being ininclusive as well as creating wealth and good jobs for everybody >> roger and lynn thank you both for joining us very much appreciate it. >> thank you >> thank you straight ahead arc big ev company jumps on the spac band wagon and snap soars on its investor day the "market zone" coming up next muteft in trading and the s&p and the dow now firmly positive

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we have got a market flark flash on electric vehicle delivery leader workhorse. it is tanking. frank collins with the details. >> shares of work force down more than 50%. trading was halted temporarily wuss it was resumed and the losses continued the company was vying for a contract to update the poust office fleet about a ten-year contract for $480 million oshkosh defense received the contract lorostown was also competing for it they are down, too the stock down 50% after losing a contract to update the post office fleet back over to you. >> it has been another hot prerevenue ev company. frank collins thanks. just 12 minutes to go in the trading day. we go into 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. today we have anesthesia amarosa back stocks recover nicely throughout this hour. the s&p is now up .4%. information technology sector just went positive the dow is up, 100 points. and the nasdaq at one point was down almost 4% s. now down a lot less than that just a little less than half a percent or so. there is the nasdaq. down a quarter of percent. bridgewater founder said the market looks to be approaching bubble territory and that some stocks, particularly emerging technology companies r already in extreme bubbles mike, which resonates at a time like this where some of the hottest tech companies like tesla are under the most pressure. >> that is truchl i think one of the biggest questions around this market has been would we be able to see some of the

overheated areas of the market cool down a little bit, have some of the froth skimmed away have some of these reversals in these sectors where it seemed too easy for a while without necessarily causing a broader pullback it remains an open question. i don't know that we have the answer to that we did get a gut check in spac-world today in some of the areas related to evs also having some of the air coming out not upending the overall market. one thing that does not conform to the idea that it is bubbly is the angle of ascent in the s&p 500. it has been orderly. that usually is something that does start to take off if you are really talking about a bubble it goes way more vertical than we have seen so far. >> anastasia, are you impressed that the dow week to date is up a third of one percent despite volatility and the lows today and the pullback this the tech stocks >> wilf, it does make sense to

me that the broad market is not overly fazed by what's going on elsewhere. the reason i say that is that we are now squarely in the reflation part of the business cycle meaning you have higher inflation expectations and higher rate expectation as well. even though rates are going up, we know historically the market bradley tends to go up in more than 70% of instances when those two forces are in play i am not surprised that the broad market is doing what it is doing. but it is interesting to see the nuances under the surface and some of the froth that is coming out of some of those sectors i see that as a healthy development. i love to see that the clean energy stocks pulled back by 20% and some of the electric vehicle shares pulled back as well some of the high flyers in tech are also pulling back. i think that's a development we needed to see because frankly it makes the sectors that we very much like for the secular potential a lot more investable once they have experienced the

pullbacks. we needed a catalyst we got it. it was more than a 30 basis points backup in yields in a short period of time so i am encouraged by the price action that we are seeing. >> electric vehicle maker lucid motor is the latest firm to announce it will go public through a spac merger. but the black check company it is merging with is plunging on the news. >> that's churchill capital vi cciv that and lucid motors making it official last night after months of investor anticipation why isn't the market cheering. >> part of it is the way the deal is structured cciv tapped a $275 billion private placement at $15 a share. that's nearly 75% below the closing price of vviv yesterday making it dilutive to those who already owned the stock. cciv has though received an

onslaught of attention this the recent months by the retail crowd which helped bid up the shares by nearly 5% through yesterday on speculation it would merge with lucid guys. >> leslie, thanks for that mike, i know we mentioned tesla already briefly. i guess is it particularly impressive in light of the likes of the move there in lucid that tesla has improved so much intraday >> on one level -- i wouldn't say a zero sum gain but i think they have a claim on the same type of enthusiasm i think the overshoot in what the market valued the spac before the merger terms were out showed you that people were sort of channelling their enthusiasm about electric vehicles into another area like into churchill cap tachl so i think there is a little bit of a give and take on that level it does show that you ultimately these spacs are not obedient specifically to what the market decides to price them out before they happen. you have to give them a realistic valuation.

i think it make some sense one thing that tesla can never be is the next tesla a lot of these companies come along to be valued as the next tesla and there is sort of give and take along the way. snap staging a turnaround today, now up almost 12% julia boorstin with details on its investor day. >> snap shares were down as much as 10% earlier today now they are up more than 12%, the stock popped on the company saying at its investor day that snap is in a position to drive multiple years of 50%-plus revenue growth the ceo and other senior executives outlined the opportunity to tap into dpland for video advertising, for augmented reality ads, with a self serve ad platform they said they believe the camera and the snap map will both be multibillion dollar platforms and augmented reality represents the most exciting long term opportunity for the company.

>> julia boorstin, thank you stapp up almost 12%, which takes its 12-month gape to 325%. i guess when you are promising multiple years of 50% revenue growth, that is unique. >> yeah. there is no doubt. all of social media essentially has been -- kind of got these step function increases in market value snap is above $100 billion right now. it has extended to pinterest facebook has held its own. clearly, the market said guess what not really a single static pie that these guys are fighting over, actually expanding over time and, you know, again the market is ratifying these massive revenue multiples on all the secular growths. maybe at some point we sober up and say that was too high. but right now theels are the rules. game. ceo charlie sharp of wells fargo is making moves to right the ship today the bank announced it agreed to sell its asset management unit to gtcr and reverence capital partners for

$2.1 billion wells fargo will maintain a 9.9 stake in the business and will continue as a client and distribution partner the deal chipotled to close late they are year is the biggs shakeup at wells fargo since sharp took over. he is going through lots of restructuring and reforms at the bank the interesting thing that jumps to me. it is not a particularly high price. $600 million in aum. $2.1 billion a little underwell. ing to the prices people were talking about. they are keeping hold of their wealth management which is more profitable it is another sign of consolidation broadly in the asset management space other banks like jp morgan had been rumored at a distance to be looking at this. clearly, they are not part this deal but another little step in the right direction for wells fargo as opposed to a particularly

high-priced brilliant deal >> that's right. i mean there was no credit being given to wells fargo for owning this relatively subscale asset manager. $600 billion is a lot of money but it was spread around a lot of different managers. i also think the whole premise of having kinds of an in-house asset manager is to cross sell is that really what wells fargo wants to be doing at this point, saying we have a lot of cross-sell stuopportunities? it makes sense cash flow and so i think it is probably a rationalization of the business private equity see steady revenues there they can ilk. >> wilfred mentioned consolidation, maybe that's one reason, higher rates, financials have a lot going for them. up again today bringing the week to date totals to 1.5%, second best performing group of the year for stocks do you like it

>> yeah, that's right. it is interesting because it is not a bad time to be a bank. in fact, a pure banking business right now. because when you look at the two trends i was mentioning higher real yields and higher inflation expectations the equitior that most positively correlates with both of those things is actually the banking sector that has the highest correlation. and diversified financials along with energy and autos. i think it is the right sector to invest in it is one of the cheaper sectors of s&p it is down, lagged from the beginning of 2020. we absolutely like it. by the way we know now that the stress test results or the assumptions are fairly aggressive so i suspect that once the banks have cleared those hurdles, you could actually see some of those capital provisions get released in terms of share buybacks we will wait for that in june. >> just under two minutes to go in the trading day mike, what are you seeing in the market internals as the market recovered here in the final

hour, though taking a bit of a step back right now. >> tin decks -- the indexes hav recovered. look week to date, the equal weighted s&p against the regular market cap weighted version shows you that the average stock is outperforming, basically by a full percentage point. it is the mega caps weighing down the s&p 500 finally the vix. it did get a pop as you would expect with the selloff in stocks this morning above 25 but it receded back, so in this 23 area. so the range saysing in was broken in the selloff this morning. >> bitcoin is still down 11% to 47,700 other than that, most of the things that were selling off earlier have recovered a lot intraday the nasdaq now down only .4% the dow is up by 44 points, off its highs which it touched half

an hour ago of 124 points. but well off its lows. the s&p is up .2%. energy and communication services the best two sectors. the worst, consumer discretionary and tech apple just negative at the close. tesla down 2%, but well off its lows closing ate $700 it had been down to $620 they close, sara, slight gains for the s&p and the dow, only half a percent of deline for the nasdaq. >> a lot better than it looked earlier in the session, and breaking a five-day losing streak for the s&p welcome back, everyone, to "closing bell. i'm sara eisen along with wilfred frost and mike santoli, cnbc senior markets commentator. look at how we finished the day on wall street up for the dow, 13 points, off the session high, and off the session low. thank you disney, which contributed the most to the dow's gain vees a chevron, verizon also at the top. home depot at the bottom after a

cloudy outleak at results today. s&p up .4% gains in communication services. losses in energy and health care the nasdaq down. fifth time in last six sessions. it was down 4% earlier a. recovery off the lows. the russel down almost 1%. le 8%. in another day where growth underperformed investors are now waiting results from square and toll brothers we will bring you all of the results as soon as they are released plus analysis on how to trade the stocks we will also discuss the state of the consumer and the outlook for food prices when we talk exclusively this hour with the ceo of chipotle, brian knickol, coming up. first, let's talk about the market an thashia is still with us. and stacey from merrill lynch joins us mike i will turn first to you. at one point, matt, who watches

the technicals said the overall market was moving tick for tick with bitcoin and tesla when they moved down, s&p followed those were really focuses for investors today. >> certainly certainly in the, mo then you started to see some of the devergences develop over the course of the day. the market did not go into free fall mode except in the big nasdaq 100 names which was tracking crypto for a while there. essentially the s&p went back into this area in january where it broke out to new highs from, kinds of checks to see whether there were going to be buyers below those levels at least right now there have been it is routine, a realignment of invest preference from secular growth into more the recovery plays. but i think the fact that you can get an air pocket like this shows you there is some pent of selling, that basically there had been a little bit of laziness creeping into the tape. maybe it got flushed out today

or maybe it is more to go. >> marcy, does today highlight that we are not going to see any major pullbacks, more than 3, 4, 5% in the next couple of months? >> yeah, i think it would be expected to see a pullback, maybe 5%, based on sentiment it has come so far really since election day but i think it is important for investors to take a step back with the context of the big picture. we are in the early innings of an economic expansion. our view is we are in a long term secular bull market we heard jay powell today. sounds like he has his foot on the gas. i would say equities over bonds and i would be positioned in a barbell of invoation and cyclicalities. which are going to be most exposed to gdp, which i think we see rising this year and next. >> which we are seeing are you surprisedance tashia the market didn't react more we did see a turn after -- both in bonds and stocks after powell

did make it clear he was still dovish, not seeing higher rates, not thinking about raperin asset purchases. are you surprised there wasn't more of an impact today given the kerps concerns about higher rates? >> yeah. we had seen yields rise significantly. we have seen some of the broader up desese pause their performance and have seen some distinct selling in some of the higher data parts of the market. this to be expected. any time office quick move in interest rates the markets tend to react overall the markets tend to respond positively to higher rates. consider why the rates are rising they are not rising because jay powell is about to hike rates. they are not rising because we have a federal tapering asset purchases. he said he is not going to do that any time soon the rates are rising because we are vaccinating more and more

people, doing it faster than the consensus expected as a result we upgrated our gdp significantly for this year. i think many others are doing it across the street as well. that's a good rice in interest rates. >> mike, on the topic of rates and what we heard from powell today we did see the long end tick up and then it flattened out during the course of the session. how is credit reacting in light of that? >> it softened in light of that, especially in the morning. it was tracking stocks lower it looked like there was going to be a sympathetic move in credit but it did firm up they are not at alarming levels at all credit is pretty tight it is something you now have to have on the radar screen because yields are going up, totally true, for the right reasons. but also, when corporate bond prices go down, it is just marginal reduction in net liquidity. i wouldn't say it is really a real scary signal. but it is something to keep an eye on here. >> marcy, you said that the outlook bodes well for the

cyclical groups tied to the economic recovery and the low interest rates that we are going to continue to get which ones are your favorites? >> right now, we like financials i agree with anastasia rising rates, lon loss provisioning which will roll off in the coming quarters and share buybacks resuming all bode well for financials we also like industrials we have seen a lot of healing in the global industrial economy, you are seeing it in pmi and manufacturing data around the world. i also like consumer discretionary. i think, as vaccinations accelerate, you are going to have to borrow a term from my completion in the second half of this year, revenge and reunion revenge spending on luxury goods, maybe while we have all been sitting home in yoga pants and sweat pants. and reunions all the family we haven't seen, the trips we haven't taken the consumer has a high savings rate

there is a lot of demand for services and i can see that playing out on progress on the health front. >> an thashia, you like commodities at this stage. which in particular? and what's the best way to get exposure >> we like commodities as we sit here and think about the revenge and reyunch, this also means return to mobility. it points squarely to the oil market we have seen a pretty significant rally in the oil market just in the last couple of months. but we think the oil is positioned for the potential squeeze higher here, especially if you have any sort of unforcing circumstances. this to be a faster realization of demand expectations that we have or it can be a supply shock, something like what we saw in texas last week the risks i think are skewed higher for oil that's one of the cleanest ways to express that. >> we have really seen this kind of action sweeping across commo commodities, marcy, all over, almost commodity is up strongly. i talked last hour to david

taylor, the ceo of p and g, he's not passing on higher prices to the consumer yet where do you stand on the whole inflation threat and how that's going to play out in the markets this year? >> yeah, i do think, you know, we may get some burst of inflation this year, which powell said today he would likely view as transitory. when you think about inflation, the question we have to ask, is when does it change the feds' trajectory i don't think that's a 2021 story. i think that's further out now i think you will get inflation back to target, that 2% target probably at some point in 2022. but you know, i heard from the fed today they are committed they would require fight inflation than dip inflation it seems like they want the economy running on all sillers about, to focus on the labor market and get the country back to the prequid levels. i would prefer inflation, i

think it means stocks over bonds and cyclicality like we just discussed. but i don't see problematic inflation this year or maybe even next year but it will show up. it is a great lagging indicator. it is always late to the party but it does arrive. >> we mentioned tesla quite a few times. apple is performing relative to key levels and major averages. it, too, had a big intraday recovery. >> it did. apple was leader on the downside along with tesla it look like a messy chart it broke through a bunch of levels, it was 15% off its highs at the lows of the day it did get oversold on various readings and it did kind of lead the comeback in a way of the nasdaq stocks. if you look on a multiday basis, it is going the look like a huge rally and back up to flat, up on

a shelf. over the next couple of days we will be saying was this a warning shot or was it a sign that we are in this period for kind of indigestion in the overall market >> the other one i wanted to bring up, mike, to just take your temperature on the sentiment behind it was moderna. worst performer in the qqqs today, for the week it is down like 1%. it is still up 40% this year, and explosive over the last year or so. just wondering what the thinking in the sale is is it taking profit from the winners or a rethink of the trajectory of covid-19 the bullishness had to do with the fact they were going to keep going lieu with new boosters, new shots as the mutations formed. >> right, it is a retail risk appetite name. that's the way it trades eyan roically for a company that obviously is a play on vaccinations in general, is really is kind of a covid portfolio play to the extent that that stuff is

also backing off it is going to be in that basket of things that did extremely well based on the circumstances of covid between the high beta profit taking and the retail names and that factor i see why that was a downside leader today. >> square earnings -- >> we have got square earnings -- go ahead. >> it was meant to be you. but i am on screen square earnings are out. indicate rooney has them for us. >> square's fourth quarter results out. a beat on the top and bottom line earnings first came in eight cents better than expected 32 cents per share revenues also better than expected and some headlines here on bitcoin. square had bought about $50 million worth of bitcoin the company doubling down on the total bitcoin that they hold the company purchased about $170 million worth of bitcoin that now makes up about 5% of square's total cash or cash equivalent so the company going further into the bitcoin market.

we are still reading into some of the guidance and other payment volume aspects of this report again a beat for square and the stock pretty much flat it had been down earlier today based on some of the bitcoin prices. >> more discussion on what that all means to come later in terms of square's numbers. thanks to anastasia and marcy for joining the "market zone" today. chipotle shares trading lower today but the stock up more than 50% over the past year up next, the company's ceo on the stock's big rally and whether he is seeing any signed of food price inflation. we are back in 90 seconds. folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride!

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we can make it work for you and your business. ♪♪ chipotle shares trading lower today but the stock has soared throughout the pandemic, up more than 50% driven by an explosion in digital sales they were up 174% from last year making up 46% of sales in 2020 joining us now to discuss is, in a "closing bell" exclusive, brian knickol, the ceo of chipotle, great to have you back on the show. welcome. >> thanks, great to be here. >> that's been the story of the stock rise, even in the face of a pretty brutal year for restaurants as a whole, the digital sales rowth. my question to you is, now what? now that we are hopefully getting out of this pandemic, what happens to that growth. >> look, i think the digital growth obviously was a key piece

of the puzzle in 2020. it is going to continue to be a growth engine for us in the years to come. i'm also excited about getting people back to our dining rooms to experience our great culinary and obviously all the customization that comes with the chipotle experience. i am very optimistic our chipotle business is -- before covid was 80% on premise. and 20% digital. now we are more in a 50/50 split. now we have got 20 million rewards customers so we can do more things with them on a one to one basis i am optimistic how this digital system plays out with access, our which i boat lanes with our communication and all of the digital communications we have in our business. >> you seem to tugt that people are starting to come back into the stores as indoor dining returns. what are you seeing there in terms of traffic and changes, perhaps in day part and spend

that may look different than prepandemic? >> you know, what we are definitely seeing is our digital business really i think drove more the dinner occasions, group occasions. what we are starting to see, gradually coming back, is, you know, as people get more out and about, their mobility goes up, their desire to still get together is out there. you know, we are seeing our lunch business starting to come back we are starting to see these occasions that are tied with normal routines. you need kids to be going back to school. so you get that afterschool business you need people going back to their work environments. you need people out and about doing their work so then you will start to see those occasions rebound. week we are seeing it kind of happen on a gradual basis. one of the perfect examples i shared in the past was i was visiting some restaurants and there happened to be a u.p.s. driver sitting in our restaurant eating i asked him, hey, why did you decide to dine in the restaurant versus get it to go. he said i was tired of eating in

my car i think you are going to see people say i like the occasion when i can sit down and have a meal whether they do it on their own for a quick bite, with friends, family, i think it is going to come back. >> brian, you have clearly got the model working well and you understand how to roll out both the digital and physical platform i was wondering how repeatable that was, could you use the software and the app you built and all the knowledge and understanding you have with the restaurants with a totally new concept if you came up with it and suddenly reach out and build out a new brand very quickly >> you know, look, we think we have the ability to put this digital system into other cuisines down the road if we wanted to go down that path. right now what we are very much focused on is maximizing the system we put in place for which i boatly there is a lot we can do understanding the data, when

people are ordering, when they want to order and how they want to order i am excited for the growth we can do within our chipotle business obviously if it sets the table where we wanted to get into other cuisines in a fast casual way and do it with integrity it gives us a channel down the road. >> how much discussion is there going into that? which cuisines >> right now i would tell you we are much more focused on chipotle it is something that -- you know, you always have an eye towards as we are developing things, you know, is there something beyond what we are currently doing? we put that thought to it. but what we are focused on is building lots of restaurants every year, growing our digital business, bringing back our in-store dining. the good news is there is lots of runway in that. we can go from 3,000 restaurants to 5,000, 6,000 restaurants just in the united states and i haven't even scratched the surface on our possibilities

outside the united states. >> we will stick with chipotle cuisine, truist put out a quote saying they are expecting new menu items, a new case dia menu by march can you tell us anything about that, how big of a driver that would be. >> the case was dia is something we have been looking at for a while. it is the number one requested item i saw the analyst's note he thought some equipment we have been installing in our restaurants would allow us to make a case dia in the time we want to do it. we have taken our time on this one. it has been two or three years where we have been testing the proposition. we don't want to slow down the front line or our digital make lines. we now have two businesses doing over $2 billion each, you know, and closing in on $3 billion so, we want to do it where it

adds to the experience, does not take away from the experience. but there's a lot ofcustomer demand for case seas from chipotle i can understand why they taste amazing a barb coa case dia is tough to beat. >> amazing there around case dias already. >> you can get them for kids. >> i was told that today yeah, didn't know in a. >> you can and some of our customers still go ahead and ask our crew to make them and the crew makes them but it slows us down it's not the best experience so we want it to be right up there with people's bowls and burrito experiences. i am excited where it is going get it. >> double up on the kid's order and it is a adult order. it is easy what are you seeing about food price inflation? >> luckily, we have not seen food inflation really facing us right now. we had a moment during covid where we were dealing with some beef prices and, frankly, we had

too much of something, not enough of something. and our guys running the supply chain did a fabulous job of keeping us in business with the right items at the right time. but knock on wood, right now we are looking really good. >> brian, we have got to ask about the chipotle for life, chipotle is my life kid on tiktok that you are teaming up with. >> yes. >> yes you are going to sell limited edition shirts, i think. it is not unlike mcdonald's has teemed up with travis scott to sell clothing. duncan i think is selling bridal robes. why are you guys all selling clothes right now? >> first of all, if you haven't seen that video, it is a riot. but you know, it is one of those things that turned into like a people we said we wanted to be in culture and part of the conversation in culture. the chipotle is my life has got its cult following

people have been asking frankly how do i get t-shirts or gear like that. our team said let's check him down and let's do something fun with him he's just having a little bit of fun. when you do watch the tiktok video you can help but smile and you know the t-shirt is a riot, i think. >> kind of a ran come t-shirt without the whole video behind it we will see. you will prove us wrong and it will sell out. wanted to go to the headline point. and finish things off. digital sales almost half of our overall sales. to what extent is that a covid phenomenon versus you know where you expect digital sales to be as a percentage overall in five year's time? >> i think what covid did was pulled all of those behaviors forward. i kind of thought when we set out on this journey it would be 30, 40% of our business. it is proving to be sticky in that 40-plus-percent range

as we go forward we will definitely plan on seeing our digital business hold there from a percentage standpoint. absolute dollars will continue to grow. transactions will continue to grow this is really just i think the beginning of what will continue to be a big piece of the business for chipotle. we finished the year at $6 billion, and $2.8 billion of it was digital. if you go back two years ago it was a couple hundred thousands dollars. i think the business is here to stay what we have seen in markets that started the reopen dining rooms we hang on to 80, 85% of that digital business while we gradually bring back our in-store dining. i am optimistic that it is going to be a sticky part of our business and we are going to grow from here, both our in-store dining and our digital dining >> brian, you guys in the past faced an uphill battle trying to win back trust from consumers around safety concerns i know you have done that, passed some of the sickness

scares how has that informed your thinking about the vaccine and whether you are going to make, encourage employees to get vaccinated so that consumers can feel safe? >> look, we always want to be a leader for our teams on safety and wellness and you know, that was the approach we took before covid. that's approach we took during covid. and that's the approach we are going to continue to take. specifically to your question about vaccines, we are not mandating it, but we are doing everything we can to make sure people have access to it when it's their turn. we are strongly encouraging them to do it and we want to support them in any way possible so they can get that vaccine, assuming their comfortable in doing it. look, i personally believe it is the right thing to do. you know, i have read everything i can read and you have to trust the experts that, you know, these vaccines are safe, and it's proving to be, i think, a big driver of, you know, the success we are seeing with the covid cases going down and therefore our hospitals not being overwhelmed.

and obviously, the death toll diminishing. so i am very optimistic about our organization taking advantage of those vaccines and doing the right thing for each other and our communities. >> brian niccol, thank you for joining us >> thanks for having me. >> ceo of chipotle. >> take care, you guys, bye-bye. >> you too. $1.3 billion, that's how much dominion voting systems is suing my pillow over his claims of voter fraud, that the company allegedly talked about rigging the election up next, dominion's ceo discusses that lawsuit and whether irreparable harm has been done to the reputation because of election conspiracy theories we'll be right back.

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the core of the belief structure that led to the attack on the capitol in january the demonstrate onvoting systems ceo joins us for a first on cnbc with eamon javers. >> we are johned by john polis of dominion voting systems right now. thank you for joining us this is a massive lawsuit. the massive document that you filed in court the other day i was reading through entire complaint. the question here is what are you trying to achieve? is this about getting they comments and conspiracy theories to go away are you trying to make some kinds of larger point with this lawsuit, john? >> thanks, eamon the ladies and gentlemen point really is to get to facts on the table in front of a court of law where evidence is properly judged in this particular case we have mr. lindell who advertised throughout truth and all he produced was absolute nonsense and like others, he touted so-called evidence, yet he

produces fake documents. and just like others, they refused to take these claims to court where evidence is properly weighed by a judgment. >> $1.3 billion is a whole lot of money where did you come up with that figure >> it is a preliminary number. it is hard to put a hard number to it but the reputational damage alone has been devastating to us. we are seeing untold damage unfolding every day with our customers and the effects they are having with a lot of constituents who unfortunately watched these videos and watched the repeated attacks and disinformation they can be forgiven for believing them er presented as fact they tout evidence although they don't actually produce any evidence and they are unwilling to bring it into court that is a serious problem not just for anyone onbut for the entire electoral system.

>> do you want to put my pillow out ofbusiness here? is that the end game >> no, that's not the end game and there is no secret end game to end anyone's right to first amendment free speech. we frankly intend to rely on free speech to get the facts out. our intention is to get the facts on the table so american voters can understand exactly what happened during their election and how fallsse the allegations were. >> you say mi pillow is using some of these qanon terms as sales codes for customers to dial in and buy their my pillows, using terms like qanon. are you alleging here that qanon is sort of at the core of the my pillow business strategy overall? or is this sort of a fringe thing they were doing on the side of the overall business >> the codes in particular are a great example of just how reckless mr. lindell was in his

peddeling of disinformation and the falsities. depending on the program he was on, he would offer different promo codes to lure voters to his website for tuhe ultimate goal of making money. >> john, i have got to let you go here, but last question for you. is this the last lawsuit we are going to see from you? are there others in your sights here >> this is definitely not the last lawsuit as i said many times before, we are taking a very measured evidence-based approach as to what we file next. and we are not ruling anyone out. >> fox news on your list >> we are not ruling anybody out. >> okay. john pollous, thank you for joining us. let's get back to the market, and mike santoli looking at fixed income indicators for us. >> the treasury market obviously has been fast repositioning for a better growth outlook.

this is the spread between five-year treasury yields and 30 year so you can take any different slices of the maturity curve and decide to have it tell a story this is telling a story of not very much fed hiking over the next couple of years maybe a couple of hikes by five years but the better growth outlook, getting back toward normal levels, 2.2% on the absolute yield on 30 that's a positive picture. investment grade corporatend bo, the testify lqd, it looks like it is rolling over mostly because test reyields are up but there is attention being paid whether it accelerates to the downside and it does raise at least at the margin the cost of credit for companies. that's under 1.33, 1.32, maybe it says the come flexion this market has changed still ahead, square shares

under pressure after the company announced they purchased another $170 million worth of bitcoin. we will get analyst reaction to that and the actual numbers coming up. plus awaiting results from tomorrow builder toll brothers and analysis of those numbers to come

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stock. whether square's new purchase is behind the selloff as we head to break, here are some of the big winners in the s&p 500 today. a stock staged a dramatic comeback and closed in positive territory into the close a lot of oil names marriott trading at a record high, up 5% on the announcement of a new ceo we'll be right back. ♪ well we have a safety net. we'll be ok right? ♪

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news on game to be josh lipton has got the details. josh >> wilf, game stop just now announcing that jim bell, its cfo is going to be resigning from his role on march 26th. thanks mr. bell for his significant contribution asks leadership remember he was appointed to that role in june 2019 the company saying it initiated a search for a permanent cfo if a permanent replacement is not in place then they say its chief accounting officer will be appointeder interim cfo. game stop announcing jim bell, its cfo will be resigning from his role on march 26th. >> maybe because he didn't do an offering when the stock was trading in the 400s, josh. you will though i presume no

reason given >> there was no reason given for that certainly there was a lot of hot talk about that topic. but no, the company saying in a short statement saying simply it thank mr. bell for his contribution asks leadership including they say his efforts over the last year during the pandemic >> josh thanks that. the point to your question, which is what was on everyone's mind, i guess if that is the reason, although josh reporting we don't know what the reason is, it seems unfair to blame it just on the cfo. maybe he is the front man of deciding when capital is needed. but this wasn't just his decision, it was for the ceo and board as well. >> it was tongue in cheek, but. >> i think it is tongue in cheek. it is the question all of us are thinking. >> but the question is why accident they take the opportunity. yes. maybe when it was 300, 400 anyway, never a good sign to see a cfo step down. we will see what happens the latest on game stop.

>> time for a cnbc news update with rahel solomon. hi, rahel. >> hello good to see you. here's what's happening at this hour, everyone tiger woods in surgery now with multiple leg injuries, that's according to his agent, after the car he was driving near los angeles this morning went off the road and rolled over he was the only person in the car. and police have scheduled a news conference for about 80 minutes from now likely more updates coming from there. in europe, astrazeneca expects to deliver less than half of the covid-19 vaccine doses that it promised to supply in the second quarter. a european union official tells reuter's astrazeneca informed the eu it will deliver half the doses. that could hurt the bloc's target of vaccinating 70 million adults by summer. an 81 yearly german woman is taking tiktok by storm she is a fitness star. she posted her first exercise video last spring when the lockdowns began. she has since won more than 2 million likes on the tiktok app

thanks to videos of herself doing planks and pull ups, and synchronized dance routines with her husband. guys the thing that i love about this story, she said she didn't start really working out until her 50s and look at her now. i need to start doing pull 00s or jumping jacks, getting my life together. there you have it. you are up to date at this area. i will send it back to you. >> thank you on the tiger woods story, longtime sponsor nike just weighing in here with a brief statement saying we are following the news around tiger and our thoughts and hearts are with him and his family at this time. up next, we willdig deeper into square's results and their bitcoin purchase. later we will look ahead to tomorrow's big slate of earnings featuring the likeofs nvidia,

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emerson. consider it solved. more color here on square earnings out this afternoon. kate rooney with the details >> hey sara. i just got off a media call with square's cfo and we got more detail on why the company bought bitcoin. a reminder in the fourth quarter, square said it purchased another $170 million worth of bitcoin

they are saying that bitcoin has the potential to be what she calls the native currency of the internet square she says want to participate and learn about that in a disciplined way i asked her about the risk there. she said it is an increasing part of the business bitcoin made up 5% of the tote groettle profit in the fourth quarter. bitcoin users tend to be more engaged. they are seeing people who use bitcoin tend use it more often cash app had a big upturn, double digits. stock is down about 4 pores after-hours? back to you. >> let's discuss this further with sigh ran fineser who has a buy rating on the company. before we get to the earnings, what do you make of this purchase of bitcoin? clearly it is slightly different than the tesla purchase of bitcoin. because square offers the ability the trade it so it kind of needs an inventory

of the assets. its revenues from that have been growing very fast. >> absolutely. what kicked bitcoin's price up last year was when paypal and square said they would facilitate it by take it as a method of payment. it is more and more interestingly being used as a method of payment. and i think that they bought more so they could have the inve inventory, if you would, to transact in bitcoin. and i still think this whole story of square is that it is one of the key components of this ongoing secular shift to electronic payments. and square goes beyond the payment. they offer a full process of -- a full suite of retail process management services. and being able to transact and cryptocurrencies like bitcoin is a key component and will be a key growing component of that. >> i get why they are doing it, ivan, but what if bitcoin

crashes? i am not saying it is going to but companies like this and tesla are increasingly tying their stock prices to the value of bitcoin, which is very volatile, as we have seen this week. >> yes i mean, that -- bitcoin is going to be a method of payment. the problem is, the volatility you don't want to see companies taking, if you will, currency, a type of currency risk. so they are going to have to have some way of hedging it as it becomes a more integral part of a method of payment and that's going to be the risk that all companies take. and i think eventually you will see the financial service industry offering tools to help companies like square, fuif you will, hedge their bitcoin inve inventory. >> got leave it there. ivan, thanks for weighing in stock is down 4% after-hours up next, a new report looks at what is really driving

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what matters more? metrics or memes when it comes to tesla, the answer lately has been memes a new report found that an uptick in submission about tesla on wall street bets, the subreddit group that tweeted about gamestop helped fuel a surge in shares last month showed that the firm saw an increase of more than seven or more submissions today over yesterday is predictive of outside returns in tesla's stock tomorrow, if they do see that. tesla's down over 12% over the last week. some of the chatter has died down you can read more on cnbc.com/pro interesting study that shows what's buzzed about on reddit one day could result in the price reaction as relates to

tesla, shares are moving a little bit after hours cathy wood of arc invest apparently was on bloomberg radio talking about how she was buying a lot of tesla today. the stock is down. >> i don't know if that's a bullish sign or not. if the buyer that bought the debt and propped it up was somebody who's always been buying so aggressively, i think perhaps more bullish but also it's well worth having a look on the cnbc.com writeup interesting to see it more formalized in a proper research note moving on. diana has numbers. >> wilford, a strong first quarter for toll brothers. ets came at 70% a share. revenue of 1.41 billion versus

estimates of 1.35 billion. signed contracts were up 59% year over year and the value of those contracts up 68% year over year the ceo said the housing market remains quote very strong. he points to low demographics, and a heightened appreciation for homeownership. they raised guidance i would just note that on that low mortgage rates which are essential to a luxury home builder, we are seeing rates move up sharply in the past couple of weeks, more than a quarter of a basis point an excellent first quarter for toll we'll see what comes next with the higher mortgage rates. back to you. >> up next, the wall street look-ahead that every veorinst needs to watch ahead of another trading day tomorrow

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and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management. tomorrow will be another busy day for investors featuring day two of fed chair's capitol hill and a lot of earnings. in the morning, parent company of tj max.

we'll get a read on travel, nvidia which has done well we'll discuss legalized marijuana and how pot stocks have gotten involved in some of these reddit trades. the merger set to close in the second quarter so that will be interesting, as mike, those stocks have been on fire what will be watching as the nasdaq is 5% off the record high >> it was down 4% on the day earlier. some of the reactions could be a lot of learning companies, also booking holdings is priced in a full travel recovery. all those things, i think, fit into this whole question of how much we've already priced in in terms of the economy and the reopening. >> today was the vix what does that spell for the rest of the week >> it didn't change anything

with regard to its general range. look, it's been elevated with the market at its highs relative to what you might have expected. we're still in the zone of a pullback in the s&p. 3, 4% is all we got and the vics didn't see a reason to go further. >> slight decline of the nasdaq. that does it gor "closing bell." "fast money" starts now. >> i'm melissa lee and this is "fast money. tonight, the latest bandwagon. it has all the opportunity the stock come and gone. we'll get answers. plus is the dollar going digital. what the federal reserve said tote we're all over the after action earnings toll brothers and square we start off with the nasdaq re