that action here in today's session. it will be interesting to see how this plays out going into that final hour of trading here. >> as i've said many times, a little bit of inflation is not a bad thing for equities at all. it is one of the reasons things get more expensive including stock prices >> yes well, good to be with you. >> good to see you in person >> thank you for watching "power lunch. "closing bell" starts now. >> it certainly does welcome. i'm wilfred frost with sara eisen. the s&p 500 lower but the nasdaq is getting shellacked down over 2% tech stocks taking it on the chin today let's look at what is driving the action rising bond yields at the heart of the story the 10-year reaching 10.5% earlier today though it has retreated from those levels that put pressure on tech and growth stocks. momentum names like moderna, zoom, peloton all plunging alphabet down 3% the stocks that are holding up, reopening phase like retail, travel, energy the big gainer. banks also continue to hold on

to strong gains. 59 minutes left of the session down over 2% a little off the lows. but, still down sharply for the nasdaq. >> we were down just over 300. coming up on today's show ariel investments chairman john rogers back with us to talk about the big swings in the market and technology in particular and how he is positioning right now as rates tic higher again bitcoin is on the rebound in a major way racing back above $50,000. for those looking for a new way to play it we'll speak with the first analyst to initiate coverage on coin base ahead of that company's public debut. and he likes it. let's get straight to the big stories we are watching. one hour left of trade mike santoli tracking the market action steve liesman with a look at the beige book just released any signs of inflation and kate rooney is focused on the retail fueled action in rocket companies mike, let's begin with the market >> i mean, we keep getting tested in terms of how much

megacap tech weakness the overall market can absorb through this rotational process. it is still holding in okay given all the downward pressure from the nasdaq. you see here the s&p 500 certainly getting way down spending a lot of time in this area right here. it is below what we had thought was this very kind of orderly trend right there. so, you know, it seems a little delicate in terms of its ability to continue to with stand some of the selling pressure from the nasdaq if in fact we keep getting it we did clear some technical levels on the down side and some of the huge nasdaq stocks that probably added a little bit of acceleration look here. a picture of this rotation this is really the crux of it here it's banks against the inded in 100. here over the last six months you see it has been real resolute it is going in different directions over the last few months you look at that and you say wow. 45 percentage points of out performance in six months. how much more can that possibly go given the fact that there is a limit to how expensive banks can get. look at the same chart on a two-year basis and you can see how much of a lead was built up

by the nasdaq 100 right there. so you see 60 percentage points of out performance, still, over two years. so not to say this has to converge not to say it only happens with one going up and the other going down or that you can't have fits and starts along the way but that is what is happening here is a violent rotation from where all the money has been concentrated into smaller parts of the index did also want to take a look at some of the hot money gauges, these risk appetite bellwethers. this would be the arkk, etf complex. since february 16th they have all really been for sale the spac index, recent ipos, then solar and alternative energy this is basically the frontier where people get excited about disruptive technology and the next new thing that has not been the trade. it's been mostly old economy let's kind of play the economic acceleration story, guys >> so today as a recovery trade kind of day yields are higher. industrials, energy, financials

lead the market. even though we got two pretty disappointing data points on adp showing private sector hiring, less than expected on services, so it is an uneven recovery when is the market going to start paying attention to economic data again? >> we are now 10 or 11 months into investors basically giving a mulligan to the real time economic data. i think everyone assumes there is going to be this moment it's probably weeks and months down the road when you really have to see the spring ahead in economic activity and pretty confident it is going to happen. maybe friday's jobs numbers will give us some color but talking about february nobody was buying the bank stocks and the industrials and the energy but what happened in february they're talking about spring, summer, and the rest of the year >> mike, thanks so much for that down 2.04% on the nasdaq as we speak. meantime the fed releasing its beige book last hour finding growing bottlenecks in the manufacturing sector that raise concerns about inflation

steve liesman has the details. hi, steve. >> wilf, thanks. the federal reserve saying eek -- beige book saying economic activity increased modestly you know it is a collection of economic anecdotes from the 12 federal reserve districts found businesses are optimistic about the next 6 to 12 months because of the roll out of the vaccine consumer spending was mixed. while there was rebound and travel activity and leisure and hospitality remains restrained manufacturing activity seems to be rebounding but the beige book says it leads to cost increases. new york, philadelphia, boston, cleveland, and richmond mentioned them the richmond report from the fed saying quote many firms reported supply chain disruptions as shortages of materials and packaging both domestic and imported led to longer lead times and higher input prices. most reported higher employment

levels and difficulties in attracting qualified workers so far only a modest rise in inflation is seen but the numbers are being watched closely with an expected strong rebound in the economy sara, you can play this two ways, right? you can say this means inflation is coming down the pike. on the other hand perhaps the supplydisruptions are temporar and may get smoothed out >> modest covers all of it steve, thank you steve liesman. meantime, shares of rocket companies coming back to earth today after a furious rally this week driven by the reddit crowd. kate rooney with the latest for us >> reporter: hey, sara rocket companies is the latest stock getting caught up in the reddit frenzy. the parent company of rocket mortgages didn't quite see the level of mentions that gamestop did in its hay day but it is still getting a lot of attention on social media after a 70% rise yesterday. as that stock comes down a bit today, though, we are also seeing traders on reddit commiserating over the losses.

rocket's solid fourth quarter earnings may have been what originally started this online snowball and also the target of shorts based on its valuation and potential impact of rising interest rates if we've learned anything from the gamestop rally, reddit traders do like to bet against short sellers. and the last piece of this whole reddit recipe, rocket companies happens to share its name with the favorite emoji of reddit traders. of course the rocket symbol has become synonymous with the stock going to the moon. meanwhile, another mortgage company might be riding the wave or the space ship in this case of rocket companies today. that is united wholesale mortgages. it's seen a big run up in the past 24 hours and it is getting mentioned on wall street bets not quite a yolo trade as they say but one to keep an eye on. guys, back to you. >> thank you very much for that. we have by the way the nasdaq down 2.1%. 280 points the low is 360 points. the dow still higher off the break the trade on rising rates we'll speak with ariel's john

rogers about the stocks and sectors he likes as bond yields take another turn higher and tech gets hit. you're watching "closing bell" on cnbc. ♪ ♪ ♪ ♪ ♪

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move your xfinity services without breaking a sweat. now that's simple, easy, awesome. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. the latest ariel schwab black investor survey shows the racial wealth opportunity gap between black and white americans continues to persist 55% of black americans reported stock market investments in 2020 compare that to 71% of white americans. however, that gap looks to be closing among younger investors with 63% of both black and white americans under 40 now participating in the stock market joining us now for more is john rogers, chairman, coceo and cio of ariel investments good to talk to you. we'll get to the market questions of the day in a moment just on this survey i guess first step to fixing the problem is diagnosing why that is. clearly, this is contributing to

the wealth gap because black americans haven't been able to participate in the stock market boom as much so why the gap >> well, you know, the wealth gap has been growing larger and larger every year between the african-american and the white america. and, you know, we've been behind for a very, very long time as we know because of the way we came to this country, the historic racism and jim crow laws and things that really impacted us, restrictive covenants that didn't allow us to buy housing in the fast growing parts of communities. we were way behind the race when it came to wealth and it continues to get worse but it has been exacerbated by the last two financial crises. you know, with 2008, 2009, the ariel survey has showed that african-americans are over indexed to real estate and of course that crisis was caused by the real estate market totally collapsing during 2008 and 2009 and then the most recent covid crisis, african-americans have a

disproportionate amount of our jobs in the service industries and less than technology, less than financial services. so our community couldn't work from home and build wealth in the same way as white america. so those are some of the reasons why things have gotten so much worse and it's really a troubling statistic that we have to continue to worry about >> how do you close that gap particularly on investing in the stock market why do you think the younger generation is starting to show progress on that front for black families and black americans? >> well, i think one of the ways to get progress is for all major corporations and anchor institutions in our community to understand there is a problem. and that their african-american employees even though they might have similar percentage comparableability when it comes to joining the 401(k) plan when you look behind the surface you see african-americans often have much less saved because we'll be in the most conservative investment options, most

conservative funds, much more likely to take hardship loans, early withdrawals to help support expanded families. so we need, it is really a responsibility to anchor institutions to put extra effort on really making sure that minority employees are comfortable in the investments within the 401(k) plan maybe there should be more minority owned options within the 401(k) plan that will get minority employees excited about it melanie hobson has often talked about that and did a special once to shine a light on the fact that when it came to retirement we weren't as prepared i think that is part where the corporate world can make such a difference by working hard getting people with contributions to a higher level and people more comfortable in the markets. >> we want to pivot to the markets and today's action is the type you've been expecting for a while when value out performs growth. mike just looked at some charts before the break to show quite the extent of that recent out

performance say since october, november of value over growth. but you think it is the start of something that could prolong for many years >> i really, really do it's been a wonderful time for value investing and seeing the nasdaq really getting crushed this year. it gives all of us hope. you know, we were in the wilderness for close to 12 years. it was very, very painful. but the valuations got way out of whack and the opportunities are really there now the sun is coming out for all of us dinosaur value managers the momentum we think is going to continue because as interest rates get higher, because of the higher inflation in this country that will be coming over the next several months we feel strongly that higher rates will really compress the p multiples in those very expensive growth stocks and give opportunity for the more cyclical stocks to bounce back stronger and really be able to out perform >> so let's talk names then, john last time you were on you told us msg, madison square garden was one of your favorite picks

it's had a nice run. not quite though at the highs since back before the pandemic of last february how much more opportunity is there? >> we think that -- we love the whole madison square garden complex of companies our favorite is madison square garden entertainment they own the garden, itself. the chicago theater here the new, exciting sphere project out in las vegas it is just really well positioned because now as president biden said yesterday we're going to be fully vaccinated as we go into the spring and summer and may and june so people will be back watching concerts they'll be back watching ball games and hockey matches within madison square garden. we think it is going to be alo of room to run there we also love madison square garden network the regional sports net. you know, the knicks are doing better than anyone expected. there is a good chance they'll make the playoffs. fanduel and all of the other gaming services are advertising on sports television more than ever we think that is going to really be a great tail wind for madison

square garden networks >> are any of your long favored stocks that have performed particularly well in the last couple months where you have taken a bit of profits, still holding them but you think the short term performance has been a little excessive viacom cvs has doubled in three months for example. >> my colleague loves to talk about that stock you know, we went to high school together so we are on message on that one. we love, love viacom but it's gone from, you know, less than $11 a share roughly to now it went over $70 today. we thought it was amazingly under priced before. and now it is getting to be more fully priced we still think there's more to run. it's still a significant position for us. but to your point we have lightened up a little bit because otherwise it would have been too big a portion of our portfolio. our media names in general have done really well companies like nielsen and meredith, tegna all bounced off their lows and our bet on the media space has been one we're

really proud of. >> a multi-year run for value, john you've been waiting for a long time we'll see if that's true thanks for joining us. always good to talk to you john rogers. from ariel if you want to hear more from john head over to cnbc.com/pro he is going to give a pro talk in a few minutes that is exclusive to cnbc pro subscribers. a lot more from john rogers. after the break, taking the las vegas out of las vegas sands. the casino operator off loading some of its most famous properties on the strip. we'll discuss the gamble with the company's former president, next and as we head to break check out some of today's top search tickers on cnbc.com. 10-year yields still attracting plenty of interest it has been right up there the last few sessions. we're seeing yields back up to the highs since we saw last week not near -- the high was 161 but still. higher than the last few sessions rocket companies the latest

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down 2.3% and the low down 360 points you've got names like tesla down 4% amazon is down 2%. alphabet down 2% apple down 2%. significant, high profile, large decliners and plenty of red

there. not much green on the nasdaq 100, down a little more. 2.5% what happens in vegas now leaving vegas. las vegas sands selling its vegas properties to apollo global and real estate investment trust vici properties for $6.25 billion. this includes the venetian resort and the convention center the las vegas sands says it will continue to invest in sang pore and macau casinos the stock up today. let's bring in the former president and ceo. great for you to be here and i know you helped build out the asia business. do you think this is a good move >> thank you, sara i think it is an excellent move for the company. i think they did a wonderful transaction. most people think of las vegas sands as las vegas and basically 90% of the ebitda or so around that number comes from asia. this transaction will provide

significant capital to the company with lots of opportunities in texas and new york and possibly even japan and other places in asia las vegas took about 30% of the time for about 10 or 11% of the ebitda and over the years it's been relatively flat in 2009, 2007 the venetian before it opened at 380 in ebitda and the two of them together in 2019 i believe did 490. so there wasn't very much growth even with the two hotels lots of competition coming 8,000 more rooms in las vegas coming along on line down the strip so i think it is a great a transaction for the company. very well done >> las vegas sands says it wants to explore opportunities online gambling which is something sheldon edelson had not really bought into.

what do you think about that strategy they don't own regional casinos. >> no but they can do a lot of stuff online without owning regional casinos they can merge with other companies. they can get by other companies who are in the business. it's a great business the online gaming business. it is going to grow. the margins are absolutely terrific sheldon is really concerned -- sheldon's concern was teenagers and young people getting online to gamble. if you can solve that problem i think online gaming is going to be spectacular for the company i think mr. goldstein already talked about that in one of his talks a few weeks ago. and i think once again getting out of the busyness of las vegas and into the concentration where assets can provide significant growth for the company and, also, provide the company opportunities if they want to dispose of other assets on a single basis because the parts may be worth more than the whole. >> mike, the growing adoption of

online gaming and legalization of sports betting in particular in various states, in fact it suggests that las vegas as a whole might be under threat for the next couple decades. >> i don't think so, wilfred las vegas is an incredibly unique environment the difficulty for las vegas is that with lots of the big, high rolling chinese gamblers that made it in many of these properties over the last number of years, that's going away. but the mass market gamers are still there. the convention business is still there. and online will take some of it. but not enough to dispose of vegas. it is a very, very unique entertainment, convention, and leisure destination. i think there's a lot of future in las vegas but it is going to be awfully hard for the existing properties to compete with the new ones and lots of growth has to take place in the room rates and otherwise to be able to get those ebitda numbers up.

the -- this decision was just absolutely a wonderful one for the company. i really feel good about the management, the leadership that they got this done and the investment bachlkers who worked on it i actually talked to one of them today. and it's a great transaction vegas can survive but it can't grow enough in the venetian -- this gives them much more opportunity. >> are there any other remaining golden opportunities in terms of untapped markets whether in asia or elsewhere, mike, that they could put their capital to work in >> well, they're working on an addition to the singapore facility at least over the last few years. that is going to increase that business i think there are going to be other opportunities in asia and the big one of course the big banana is japan. they dropped out of japan about a year or so, year and a half ago. we were involved in that for many years but i think this particular transaction may give them more interest to go back into that

market and that'll be a four or five-year project. and other ones will pop up taiwan might come along. you never know but asia is a big place. australia is another place i think there's still plenty of opportunity for them there if they want it but mr. goldstein has already talked about texas and we were always talking about the possibility of flushing, new york and other areas that could be opportunities for that type of product >> everybody needs the state revenues right now mike, just a question about apollo this is not their first foray into the gambling world. remember the takeover of harrah's and caesar's and a messy rrpts. what is the track record there for what it could mean for the process for these hotels and casinos under their ownership? >> yeah. i think they are looking at the growth of the casino opportunity. they've been looking at it for

years. and it is a very good base for them considering the venetian to grow from there if they want to. they get to know the business inside out i think they've been wanting to be in vegas for a long time and i think it'll be a good foundation for them to learn the business and see what opportunities they can do. apparently the gaming industry has got a very, very good growth, future with internet and online and all the rest of the stuff, sports betting, all the rest of the stuff that's going i would think this will not be the first, not be the last acquisition. >> las vegas sands now up only 1% mike leven, thank you very much for weighing in. >> you are very welcome. nice to see you again, sara. bye-bye. >> you, too. time for cnbc news update with rahel sullivan. >> hi, sara. hello everyone

the border patrol says two vehicles entered the u.s. through a hole cut in the border wall one had a deadly crash with a tractor trailer killing 13 people another suv carrying 19 people caught fire. all 19 were captured by border patrol agents. in los angeles detectives are looking at data from the so-called black box from tiger woods' suv they're trying to get a better picture of what happened before the crash that seriously injured the golf star. a senate panel dead locked along party lines with the nomination to run the department of health and human services still goes to the full senate for a vote republicans have criticized becerra for his position on abortion rights law when he was california attorney general. ahead of international women's day mattel is releasing new barbie dolls to inspire young women among them an eleanor roosevelt barbie and influencers of today like actress and activists. you can watch the news with shepard smith for more on

efforts to show young women they can be anything they want to be. sara, back to you. >> i'll pick it up there thanks so much we'll see you next hour. we've got just over 30 minutes left of the session and we've just hit session lows moments ago. back off them again. the dow went briefly negative, essentially flat the s&p is down a percent. the nasdaq down 2.4% let's check individual market movers shares of hugo tv falling today the entertainment company posting a beat that stock down 18%. lyft shares higher on news it anticipates a ride sharing recovery sooner than expected. last week the company saw the highest ride volume since the pandemic began we spoke to lyft's cfo yesterday about that resurgence. >> people have been just locked up in their apartments and homes and we do expect that when it is safer for the economy to reopen there's a lot of pent up demand. there is nothing left to stream.

no one wants to eat another meal at home. we do expect we will see a strong resurgence in demand as people can go back to their social lives >> lyft trading higher by 8% a quick check on the faang stocks i mentioned earlier all of them moving lower the nasdaq getting whacked down 2.3% and nasdaq 500 down 2.5%. tesla down 4%. had been higher as well for the first hour of trade or so. quite a steady intraday slide. we'll have much more on the tech sell-off as we approach the close. later the chairman of macros says one particular sector has been winning all year and that will continue. he'll join us with that call coming up. as we head to break a check on bonds, yields back on the rise 10-year up to 1.46 did hit 1.50 pulled back a bit. as you see 1.47. 30-year 2.24 nasdaq down 2.4% back in a couple minutes

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25 minutes before the bell here is where we stand in the

markets. the dow has gone negative. under pressure from technology all day long the nasdaq is down 2.3%. as far as the s&p 500, energy, financials, industrials, those are the positive groups. that is why the dow is out performing but tech, consumer, all of the other names are weighing on the market as yields march higher. straight ahead high competition in the cannabis space. we'll discuss what sets aurora apart from the others on the market when we talk to that company's ceo. an exclusive coming up on "closing bell" next sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

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welcome back virginia is the latest state to approve adult use marijuana. the bill now awaiting governor ralph north am's signature under the legislation legal possession and regulated sales will not begin until january 2024 aurora cannabis ceo miguel martin joins us now in an exclusive interview. very good afternoon to you thanks for joining us. >> good afternoon. thank you for having us. >> do you see more states continuing down this path and do you see federal action on this front as well? how big a game changer is that for you and your industry? >> it's huge we had the governor of new jersey and the governor of virginia this is a strong economic issue

as well as a social issue. i think we're getting to the tipping point of where the states are starting to fall in terms of cannabis legislation. it is not just the u.s. but also around the world aurora today sells its products in 13 countries. the global position on cannabis is definitely positive for companies like aurora. >> we were talking earlier on the team, as part of the bill in virginia it says home cultivation up to four plants per household permitted. is that something you would rather not see included? is that a threat to your business or anything just generally moving in the direction of legalization is all positive >> it's not a threat we see that structure in canada and other markets. sort of like home brewing that you see in craft beer. any sort of collection to the plan, overall awareness and positivity around that aspect is good for the industry. so when you see those home grown provisions it is definitely not a detriment. we think it creates stickiness for the consumer, to the overall

category and definitely is a positive >> we've seen a lot of consolidation in preparation for this opening up. till ray, aphria, we talked to those ceos canopy where does that leave you in terms of a push into the u.s.? can you do it without having more scale or a bigger partner and a better balance sheet >> we absolutely think we can. the strength of aurora is its diversity of we have the number one medical business in canada, one of the largest international medical businesses, the number one cbd brand according to nielsen in the u.s. and a strong business so the diversity of our over all business and the science and genetics behind the company i think put us in a good position. you mentioned the balance sheet. overall performance year over year has been really strong for aurora we have over 500 million on the balance sheet and we're in a position to be opportunistic when it comes to the u.s. i would tell you not always bigger

better in this situation i think the science, regulatory expertise, and the history, the canadian lps have, particularly aurora in the canadian market, will play, you know, really strong in the u.s. i expect the fda will have a lot to say about the u.s. market and the only real companies that have that type of regulatory experience are the canadian lps. we think we are in a great position at the time in which the u.s. opens up its market >> why do you think your stock has lagged some of your peers over the last 6 to 12 months >> i think there is a lot of aspects to that. first and foremost we are just the beginning of this transformation and i can understand people are looking for that the recent quarter versus a year ago i think gives a strong indication we are on the right path i think a lot of retail investors and just now starting to see institutional investors there are some investors that want to see a peefiece of the u. even if it doesn't make exact sense at this juncture it is my job and the management team to prove to others.

but with the growing international business, number one cbd brand in the u.s. i think there is a lot to like in the aurora story for investors long term. >> some analysts also miguel pointed to some pressure on the canadian sales business which we thought was growing so quickly what is going on there. >> there is some pressure -- if you think about 1500 stores in canada selling these products and curb side delivery and different actions that has had an impact. i think that is where you want to look to a diversity of the overall business of the companies who has a strong international foot print, who is a diversified business but there is no question the consumer business or the business in canada right now i don't think it is a structure issue but a timing, whether it is covid, stores not having a chance to open up and long term canada is going to be just fine. companies like aurora that have been successful in germany and israel and netherlands and on and on are going to be successful in other markets

including the u.s. so i think the global tail winds behind cannabis are very strong we're very bullish on the future >> thanks so much for joining us good to see you. >> you as well thanks so much. still a come a new way to trade the reddit frenzy. those stories and much more on the sd'sigecneexinnaaq b dli nt the market zone.

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into the close cnbc senior markets commentator mike santoli here to break down the crucial moments of the trading day and as always we have the wealth management ceo josh brown back as well. we'll kick it off with the broader market stocks are under pressure heading into the close the nasdaq is on track for its worst two day drop in six months it is a lot of those high flying tech names that are under the most pressure. it is also driving down the s&p down 0.75% josh, what do you do if you've been in stocks like apple and tesla and have had a great run here is this going to stay, this total repositioning of the market off higher yields >> i think it is important to just be very honest with each other and ourselves and say we don't know how long these episodes will last for and that is why we build diversified portfolios i know it is boring and no one wants to hear it but these

environments when there is a huge change in trend are exactly the reason why you never want to put yourself in one position when all of your bets are on one side of the boat you can't do it. like in real life. you can't do it. there are people with very complicated positions in the large cap technology and growth names and that has been a great trade. it's worked flawlessly something changed sometime around late summer there was a little bit of a shift in trend that was imperceptible at first and now it is obvious. now the new consensus trade is get out of large tech. get into small value i don't know that is something you want to bet on continuing forever either but it is really pronounced you take a look at the russell 2000 value today 1.6% russell 2000 growth down 1.6%. they're almost like looking glass images of each other so this is what happens when you make one bet versus the other as opposed to just being in a

position of humility and saying i'm going to own a little bit of everything and i understand that at any given time i will have the teslas and the apples that don't look so hot. i have to live through that. >> mike, to that point, as striking as big tech's decline is banks and energies continued march higher. >> right so it is not that complicated a story. the huge megacap growth stocks benefited from the scarcity of growth last year and the fact that rates seemed anchored and extremely low levels everything kind of worked to expand their valuations. it is moving in reverse. i think that you can take some comfort as a market wide investor that it's not necessarily causing a wholesale liquidation of stocks. it is not a comprehensive sell-off yes we are still benefiting in terms of cyclical sectors and there is not a lot of stress evident right now in terms of it seeming as if investors are trapped in these highly concentrated growth positions and therefore have to just, you know, puke risk out everywhere that is all good i just still think there are limits to the rotation still limits to how much people are going to pay in terms of for

the cyclical value stocks but we may not be at that moment yet but i think it is coming soon. >> josh, you always sent us some notes before the show. you describe zoom and target as looking disgusting what do you mean by that >> well, talking technicals nothing to do with the company fundamentals >> i know. giving awe chance to clarify that >> my notes are very colorful and i work very hard on that stuff with michael bat nick my firm's director of research and we try to give your producers a little sense of some of the things we're noticing. it's interesting it is not just tech stocks under pressure you take a look at the candle if you were to look at the japanese candlestick charts of things like for example zoom and target and companies with really great results and then really nasty candles and typically that is not the end of something that is something that happens somewhere in the middle of a down trend so it would be great if i come on the show and say, yeah.

buy them no those are telling you that there's a lot of distribution and a lot of money trying to get out. walmart's interesting. stock is in free fall. eight straight days where the close is lower than the open walmart now in a 15% drawdown. not really a tech stock. but a lot of the reason why it went up was because it was a company that could thrive in a lockdown, work from anywhere environment. so what the pandemic giveth the pandemic now taketh away am i doing that right? so i think it is really important that we just recognize there is no such thing wilf as one way trades one way trades are not real. they can masquerade as being one way trades for a long time. arck is a really good example. it looked like a one way trade how could it not work? boom you lost a fifth of your money you had in arkk from two or three weeks ago that is how fast we must remain diversified and

act as though everything in our portfolio can go in both directions >> a new etf trying to cash in on the reddit trading frenzy is getting a lot of buzz on wall street leslie picker has the details. >> ticker buzz set to take flight tomorrow. known as the social sentiment etf. this tracks an index that uses analytics models to find 75 large cap u.s. stocks they believe have the most positive investor sentiment dave portnoy of bar stool sports throwing marketing muscle behind this etf tweeting his support to his 2.4 million followers yesterday. the catch is buzz only rebalances once a month so is likely to miss the quick shifts of the socially driven stocks and additionally only invests in companies with market caps over $5 billion, guys >> leslie, thanks so much for that mike, is this a sign of, well, we pointed to many and have been wrong. sort of marking the top. but is this a type of activity

something that you would typically point to in that regard >> well, i don't know about marking the top of anything in particular the etf industry is going to try these somewhat gimmicky or at least buzzy sounding strategies for some dramatic approach, something that seems one step ahead. i think there is a little bit of a trap as leslie said. once a month rebalancing there is a chance for getting whip sawed around depending how often they chase some of the social activity. 75 large cap stocks. it is very difficult to have much to distinguish that portfolio from an overall broad market index if they're going to be all above $5 billion so we'll see. >> are you buying, josh? buzz i mean, social media is a new phenomenon for tracking stock performance i guess. >> yeah. it is. maybe there are trades to be done with this but from a long term investing perspective because it is a monthly rebalance the holdings will be so radically different

from like let's say january to december so if you're like a longer term investor, what are you investing in really? so i don't have an issue with it i understand that markets have changed and obviously social -- you know, i was somebody that was watching this whole thing develop from within. so i understand that there's a lot of signal coming out of social media i just don't know that is something i necessarily need but it'll be really interesting to watch whether or not this thing attracts flows and i would just say so far everything portnoy has touched has turned to gold. a lot of people were saying the penn gaming thing was a bubble when the bar stool deal was announced and like who cares it's just these internet guys, blah, blah, blah this could be one of the largest market cap gaming companies in the country by the time bar stool and their personalities are done marketing it and promoting it and doing events with them. so i don't know that i'd want to bet against this finding an

audience it just doesn't necessarily fit in with the way that i'm investing. but there is nothing -- that doesn't mean it's good or bad. >> just one quick point. it is not as if the industry has neglected this idea of mining social data sets to try to trade. i mean, this is just the retail version of an activity that's been going on in a very high powered way and the entire trading system is based on it and has been for a very long time this is just kind of like your version of it, to trade on the stock exchange >> also, to that point -- >> using ai. >> a lot of people, a lot of people would mock this idea, oh, it's just a herd you'll get all these people to herd themselves into a herd or they would say oh, that is so corny, the top for fin twit or whatever this is not very far apart please from people that were following foot traffic at different stores in the mall >> right >> in the 1980s and '90s it is not that different it is just faster paced and

arguably more sophisticated not less so wall street people have always been looking for ways to gauge the feelings of the crowd. and this is just one more way to do it. i'm not really an expert in the portfolio construction of this particular etf i haven't looked that closely at it i would just say people have always wanted to know what's hot, what are people talking about. it is not new and so it is not quite as gimmicky as maybe people are saying it is. >> i think it's in stocks like draft kings and another highly buzzed about, chatted about social media favorite. >> sure. whatever just went up. >> exactly i want to show you we are at social lows doup down 83 points on the dow we've lost steam into the close. sell-off in technology accelerated. yields are higher and a lot of the bigger winners we've seen like etsy for instance are getting crushed the hardest. the worst performer in the s&p

down 12% oscar health falling sharply during its wall street debut today. bertha coombs with the details >> reporter: yes, sara oscar priced above the rain thrain -- range at $39 a share but opened three below that and traded in the red all day. the tech enabled obama care insurer is backed by alphabet and the co-founder josh kushner's thrive it's doubled aftermoving into the medicare market but in eight years has yet to make a profit here trading near the lows of the day. the ceo told me they have considered doing a spac but have a habit of doing things the hard way and he wanted a real listing he says. competition certainly getting harder as they look to push into more virtual health care plans, which all of the big guys are looking at as well sara >> bertha, thank you bertha coombs, oscar down 10%. mike, the higher rates, higher treasury yields if they continue

does that end the ipo enthusiasm we've seen or is this something specific >> i don't think it's rates so much i think it is supply it is just a number of new ideas. something like 500 spacs in the last year. direct listings have tended to trade a little bit tough on the first day at times so maybe it is not that surprising that you would get it a little bit of sag there because it was not really a road show. it is the hazard of going this route. >> 2:00 to go in the trading day. what are you seeing in the market internals as we reach session lows >> they've been very mixed all day, sara. earlier in the day there were more stocks up than down in the new york stock exchange. it's now changed and very almost evenly split in terms of the new york, the inded in much more negative you still see the average stock doing better than the large cap index because the megacap growth stocks are getting hurt so much. it is getting remarked upon, the stay at home versus going out trade. if you look at etfs to track those two sectors it is pretty stark this week. the work from home etf down 2.5%

and then the leisure and entertainment, hotels, airlines, things like that up 4% this week so again, it's pretty much obvious type action but still working for the moment volatility index, definitely getting a bump here. we were kind of, you know, in the low to mid 20s for a while still 26 this isn't panicky levels because you still have the divergence in the different sectors that can suppress index volatility but looking like it is an ugly close and we're above 25 again >> it is an ugly close with 55 seconds left the dow hitting a fresh low. it has really joined the selling in the last 20 minutes or so having held on to gains for most of the session there is the dow's intraday dropped down a third of a percent. 111 points s&p down 1.25% the nasdaq continues to be the laggard down itself close to its session lows of 2.7%. the nasdaq 100 down 2.9% amazon, apple down close to 3% tesla down nearly 5% as we speak

and the selling continues as we approach the close a fresh session low. we did get a little bit of a pickup in yields today the high is 146 on the 10 year gold and silver and oil is gaining 2.5% and energy the best performing sector. energy and banks giving up gains into the close hence why the dow is at a session low itself with a close of 131, 0.4% decline s&p down 1.3% the nasdaq hitting a fresh low at the close down 2.7% >> we started the final hour of trade up on the dow. closing down more than a hundred points welcome back, everyone to "closing bell." i'm sara eisen with wilfred frost and mike santoli cnbc's senior markets commentator take a look at how we finished the day on wall street making new lows of the day at the close. just a spill there into the end of trade the dow closing down 119 points. worst performers, sales force, microsoft, apple that tells you the story of

today. another tech wreck best performers were boeing, american express, goldman sachs, jpmorgan financials really shy today. along with energy and industrials the three groups that closed positive but the overall s&p down 1.3% because of weakness in groups like technology and consumer discretionary each down about more than 2.4% each. communication services, utilities, also weak the nasdaq hit hard again down 2.7% those high flying names that had done so well lately, names like moderna, lululemon hit among the hardest as valuations come into question on the higher treasury yields the russell 2000 index, small cap, down 1% on the day. plus bitcoin bouncing back after a recent decline we'll discuss the outlook for crypto with the first analyst to initiate coverage of coin base ahead of its direct listing. investors are now awaiting results from snowflake and american eagle we'll bring you the numbers as soon as they are released. first up though let's talk about the sell-off

josh brown still with us gabriela sanchez joins the conversation first to you mike on the ugly close. what drove it? treasury yields were higher but they weren't quite at the startling levels or the speed we saw last week. what is going on >> yields have essentially been static most of the week. it's mostly just, i said an hour ago the market was being tested for just how much relentless pressure it could take from the megacap growth stocks going down it sort of started to show some cracks here. i don't think it is necessarily that different from what we were talking about. it is mostly rotational and about just valuation premium coming out of large cap growth and being re-assigned to the cyclical sectors everybody thinks the top line growth in this economy this year is going to be powerful. and so they want to get out of the stuff that you owned because there was no growth to be found anywhere else. and into the stuff that is going to be a beneficiary. are there limits to that action? absolutely can there be wear and tear on the overall indexes just because

of the biggest stocks in the market just, you know, for sale aggressively absolutely you're seeing that we closed today, the s&p got basically monday's bounce almost gone and you closed pretty much on the 50 day average it seems as if in addition to the fact that the market is up 75%, in 50 weeks, i think all of that is coming into play in terms of just a little retrenchment here. >> in terms of the levels you're watching, amazon closed at just above 3,000. how important is that level for that stock >> i think it is meaningful. if only on a technical basis i don't think people from an investing standpoint will change their minds but i also think there is some psychological meaning. amazon is in a group of large cap technology and consumer cyclical stocks that have not been able to really make any forward progress whatsoever going back to labor day. and, you know, we talked about faang this faang that and faang the other thing a lot and yes those stocks are very important

in terms of the s&p 500 and even the dow from a market cap standpoint but they have not been leadership stocks for about half a year now. they really haven't mattered that much. and when you look at performance year to date, you see things like the regional banks up 30%, 28% give or take none of those very important large cap faang stocks look anywhere even near that. so the question is has leadership changed permanently is 2021 just going to be a very different kind of year and when i look at my green stocks today i see simon property group i see live nation. i see jpmorgan these are just not big enough to replace or to pick up the slack for when a facebook or an amazon nose dives like they're big companies they're not that big so i do think that there could be consolidation at the index level but a bull market within

for specific segments of the market and that could be good enough for many investors but again you have to own those stocks you have to be in there. and i think a lot of newer, younger investors just never bothered learning them because they've never seen them go up before >> so, gabriela, if you haven't flipped your portfolio from what worked last year, technology, to what's working this year, energy, which is a complete opposite, is it too late >> that's what we were saying would be the biggest danger for investors coming into this year. the fundamentals are clearly improving in terms of earnings, as well as economic expectations getting revised higher the danger is investors might not be able to see that in their portfolios if they hadn't adjusted them. and we still, the portfolios that we analyze we still see double the amount of growth as we do value. so for this, today, for example, that would be very painful where value has out performed growth

by 200 basis points. we absolutely do not think it is too late there is still time to rotate away from those growth winners from last year, move into value. move from the u.s. to international. and move from investment grade into high yield in terms of the corporate credit space >> mike, where is sentiment at the moment again, including some of the recent, like, jump on monday and pull back again a couple days. are we stretched in either direction? >> bemused and confused i think, wilf the broader sentiment picture was we got to very optimistic over extremes as the market hit highs. not surprising it seemed like it had to recede a little bit and it has. if you look at some of the surveys and positioning data, it's come off of those extremes but by no means do we have people really panicking. in fact, one of the issues with this rotational action and the fact we're making this very, very sound, plausible, fundamental case for why the cyclical and value sectors ought to do well is it makes everybody feel very virtuous

all of a sudden it is hey. this is the fundamentals and what we do we pick stocks we decide on what the earnings are going to be. that is the stocks going up. i don't think people panic out unless in fact it gets very disorderly and the selling in those nasdaq stocks, everybody was saying last summer why do they keep going up every day when they keep going down every day i think it becomes real messy, maybe then we'll see a reset more comprehensively >> snowflake which closed down 9% in the session having results cross. what are they? >> so q4 results here a loss of 70 cents not clear if it is comparable to what the street looked for on the top line revenue $190.5 million the street closer to $179 million. the ceo saying in a statement that they finished their fiscal year with strong performance he says, triple digit product, revenue growth says they saw improving operating efficiency, expanding their footprint globally remember, though, heading into this print stock was already under some pressure. about 40% off its all time high.

and lower in the after hours remember what snow flaik does. it sells cloud based software and helps companies store, process, and visualize data. the conference call is 5:00 p.m. eastern and we'll be on it back to you all. >> josh lipton, thank you. one of the darlings, mike, of last year, when it went public during the pandemic, got as high as what, to the high 300s. >> yeah. >> what do you make of the action so far? >> it is exactly the kind of stock that would have issues here just because of sentiment wise and in terms of fund flows out of megahigh revenue multiple big picture disruptive names like snowflake where everyone decided this is the better mouse trap than the ai economy and the results are great and they're going to show progress in the direction everyone expected them to go but just not enough. you are pricing in years and years worth of great stuff at the high not too surprising in this tape it would trade-off like this. >> gabriela switching back to broader markets you've been

having a close look at what is going on in china. i mean, markets internationally haven't pulled back to the same extent so far this year. what is your take on the chinese market and its influence on what it means for u.s. growth and equities >> sure. i think actually the most interesting event this week is china's national peoples congress which is happening on friday so it was a really important moment to check in on where china is going and what we'll hear from that gathering is china's priority for this year is shifting away from its old economy drivers that worked well last year into domestic consumption so i think that is something we should watch out for in terms of industrial metals prices which have already moved up a lot. it's kind of reaching a ceiling here as china transitions its economy back toward consumption. the second thing we'll be watching is china will present its five-year plan and so it is going to be really three of the most structural, exciting growth

opportunities for investors that will be laid out the growth in china's domestic demand, tech innovation, as well as renewable energy. we think really china both equities and bonds are really just starting to grow in investor portfolios and the only way is up from here. >> josh brown, quick final thought u are there key levels, key pullback amounts that would worry you and make you think we then enter negative momentum for the first time particularly some of the big cap tech stocks for a prolonged period of time >> well, so far again you have dispersion you have green stocks and sectors doing really well. so i think howard marks talks about first saengd level thinking last year it didn't matter you say apple is a good stock you just buy it. this year it does matter when you see snowflake come out with a good report and the stock sell-off or zoom or a lot of the other names yeah these are good companies. but then second level thinking, doesn't everyone already agree with that? yeah and that's why there are no

buyers for these things. because anyone that wanted in is in already and is already appreciating the good news these companies are now reporting. it gets a little bit tougher, a little more difficult. >> nasdaq 100 down almost 3% today. josh, thank you. josh brown, gabriela, good to have you both. when we come back cryptocurrency exchange coin base announcing plans last week to go public through a direct listing up next we'll speak with the first analyst to initiate coverage of the stock and why he thinks it is a buy plus mike santoli looking at the industrial revival trade whether the big rally in copper prices is arng tsttio look stretched. back in just 90 seconds on closing bell

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the amazon moment for crypto is how d.a. davidson describes coin base's upcoming direct listing, listing a buy rating and $195 price target. the bullish target comes as bit coin rallied more than 70% so far this year. for more let's bring in the analyst behind the call. very good to see you thanks so much for joining us. let's start on the headline point i just mentioned why is this such a big moment for crypto as a whole? >> cryptocurrency has been a big topic of discussion for a long time but has really gone on a parallel path to wall street and now with a large megacap company getting listed, being publicly traded, at probably

more than $50 billion of market cap, the two worlds will collide and become intertwined it is going to become clear that crypto is a giant asset class with a trillion dollars, very relevant to the future of the delivery of financial services and coin base is going to present that moment to the marketplace. >> and is coin base going to be directly linked to the gains or falls of bit coin itself or is it sort of agnostic to the price level and which of the cryptocurrencies is doing best >> that is an important point. one of the things that is really interesting and attractive about coin base is that they're going to do well regardless of which crypto asset does well they're diversified across crypto assets. so the investment in an individual crypto asset has the risk of that not being the right one while investing in coin base is going to allow investors to say, regardless of which crypto asset does well coin base will benefit. and since it is a very well

managed firm it is really the standard bearer in this industry it's got great user experience very secure. very compliant and regulatory friendly they're going to be in a position to gain regardless of which crypto asset, which block chain technology succeeds. >> how does coin base primarily make money >> it's really trading volume. so either consumers buying and selling crypto, or increasingly institutions buying and selling crypto they take a cut of every transaction and that's right now. a vast majority of the revenue but increasingly they are starting to provide other services such as subscription services that will become bigger parts of the business and hopefully smooth out their revenue and earnings going forward. >> so looking at your model and your note and price target, it's a pretty rich valuation. i get the bull case you're explaining but we're talking 20

to 25 times sales. >> if you think about what the comparable group is for coin base, it is gold standard companies and open ended growth categories so think, you just discussed snowflake. zoom octa, companies like that. crowdstrike. these are companies that have a huge category that has open ended growth and they're the gold standard in that category they traded anywhere between 30 and 70 times revenue right now so to the extent coin base does well, has a good listing, provides some good guidance going forward, has good current period results they'll be in a position to get those kinds of valuations >> i get what you were saying to wilfred about the diversification but what is the price of -- what if the price of bit coin gets cut in half, goes down below that, down to 10,000 from 50,000. this has happened before what happens to that coin based stock? >> that's right. coin base will not do well if

there is a decline in the price of crypto assets, if there is less volatility. they don't do as well. their growth has not been entirely smooth. parts of their growth are smooth, though their user growth is very smooth the amount of people trading on the platform, the assets they're gathering. those are smooth increasingly those will smooth over all results it is not going to be the same as a sass company that just builds on the same levels of growth all the time. there will be more ups and downs. it is a more risky investment. again, there is a tremendous amount of upside if they continue to be the gold standard in the category. >> it's going to be a good litmus test. thanks for joining us. we appreciate it let's go back to mike santoli for a look at the reflation trade. mike, explain. >> yes as reflected in two key metals the copper/gold racialo, the price of copper to that of gold goes back five years just racing higher

this is as real yields are going up people expect a huge manufacturing recovery of course gold is weak not just because real bond yields and things are going up but because probably being displaced a little bit by bit coin the last time we were up here was mid 2018 it was before the market concluded the fed was getting a little too tight and there was a slowdown there but take a look to a positioning in copper in particular. it has been a key way for people to play the whole phenomenon this is sort of your net long positioning in futures for copper so it looks like it is getting fairly extreme relative to this history and then this is the sort of inverse to that is net positioning in the u.s. dollar so you shouldn't be surprised to see a little bit of reversion in this trade copper has believe it or not a little bit of a green tint to it not just because of patina but because it is used in batteries and all kiternative fuels. that is helping as well. >> we have news coming on the nfl and amazon julia?

>> well, the nfl's close to signing new rate deals wit media partners that could give amazon many games exclusively on prime video. this is according to a report in the dow-jones. "the wall street journal" saying these deals could be in place as early as next week and tv net works could pay as much as double their current rate while amazon could pay $1 billion per season if it does secure the exclusive rights to most thursday night games according to the report. this is all based on sources we have reached out to the nfl for comment and have not yet heard back back over to you >> interesting julia, thank you up next president biden just making it potentially easier for some moderate senate democrats to sign off on nearly $2 trillion of stimulus. details straight ahead plus the ceo of keurig dr. pepper on the strength of the consumer and wthheer rising commodity prices could hurt the beverage giant's bottom line back in a minute the moment you sponsor a job on indeed

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welcome back let's remind you how we closed on wall street down 1.3% on the s&p. 0.4% on the dow. 2.7% on the nasdaq composite and 2.9% on the nasdaq 100 session lows for all four of those averages, tech very much

the biggest decliner on the day. tech sector on s&p down 2.5% american eagle earnings just out. courtney reagan has the numbers for us >> hi there, wilf. for american eagle for the quarter earnings per share beating estimates by three cents at 39 cents adjusted revenue in line at $1.29 billion. if you look at the comparable sales together full company both brands down 1% but buy brand airy up 20%. american eagle down 8% digital sales up for the quarter. american eagle was up but not nearly as much as airy was the company is reinstating its dividend the gross margin also up nicely from a year ago. the company citing higher full priced sales and lower promotions as well as inventory optimization a trend we've heard from a number of retailers shares still for american eagle down here about 2.5% in response after hours.

sara, over to you. >> the comfy clothes, comfy bras on airy continue to just be on fire courtney, thanks we're getting breaking news on disney we'll get to julia boorstin with that >> reporter: disney announcing it plans to close 20% of its brick and mortar disney store locations before the end of the year at least 60 of its north american locations will close. this as the company shifts its focus to e-commerce and building out its shop disney website. after the closures disney says it will evaluate whether it needs to close other stores perhaps more in europe but it is worth noting that disney does have other physical retail shopping experiences including more than 600 disney park stores as well as in shop locations in target now, there are over 50 of those target locations my colleague at cnbc.com reporting out this story which you can find on cnbc.com, guys over to you. >> thank you very much, julia. still ahead energy stocks have been soaring since late last year.

our next guest explains why he thinks the sector will continue to rally from here plus, job kings and dish network teaming up to allow consumers to place bets from their tvs. details coming up. beyond ordina. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

president biden signing off on income caps for those new stimulus checks. the latest development as the covid relief package makes its way through the senate

>> sara, democrats are lowering the cap on who can receive a stimulus check under the new deal individuals earning up to $75,000 will still get that full $1,400 check but above that income level the checks will phase out much faster. anyone making over $80,000 won't get a check at all for couples the threshold to qualify for the full amount is $150,000 the cut-off for receiving a payment is now160,000. this was a concession to moderate democrats who worry that the checks weren't going to households who really needed them the most. i spoke to the senate finance committee chairman who acknowledged this process was a compromise >> go into something like this and you want to get the best possible agreement for workers and families and with respect to getting that $1,400. the income threshold is what i

set out to achieve >> he has also championed the boost in benefits for jobless workers. those will remain at $400 a week and extend through august. moderates wanted to reduce them to $300 a week wyden told me he considers keeping that number a win and said he is already pushing to keeping the benefits going as part of president biden's next big legislative package. back to you. ylan, thank you very much. still some big checks going to reach plenty of people if all of this gets approved the broader markets finished lower today. the nasdaq seeing the steepest decline, down 2.7% rising rates a factor. tech seeing the biggest selling. let's bring in now our guest good to see you. thanks for joining us. we have lots of charts to get to that you've prepared for us but the headline before we dive into those, what do you make of the levels that we closed at today particularly in the nasdaq comp

and the nasdaq 100 >> i think the key word here, wilf, is duration and long duration assets are under pressure that is not unusual when you see rates rise and we're even seeing real rates rise a little bit they're still negative i think it is good news for assets over all. but the high duration assets, those with sort of pie in the sky expectations are the ones most vulnerable when you have the rate rises so pretty much par for the course with how we're seeing things >> what are the sort of support levels and when do you start to get worried for the nasdaq let's say that we're going to see a much bigger and sudden fall from here >> well, look. i think you'll have probably susceptibility for another three to maybe five percent there. i don't see much more than that. breadth generally is good. i think this is rotational in nature we tend to believe that the pie is getting bigger, which means instead of having to sell your nasdaq names to buy your say more traditional cyclical names, there is actually money coming in from various assets whether on the sideline or in the bond

market the s&p, which is really the index that we key off of has very good support down around 3500 the 200 day moving average all within the context of an up trend i think this is a digestion period as we transition from early cycle mid cycle and i think that's, you know, exactly what you'd expect to see the. >> so you still see a green light for stocks overall i guess the question is who is going to be in the leadership position energy is the best performing sector so far this year. you have liked it. it's been a good call of 30% more gains there >> i think so, sara. again, back to the duration idea to low duration asset, i think when you look over the last five years, it's probably the main sector that's been under invested in. it certainly has been vilified from everything from, you know, esg on down so there aren't all that many people, certainly not a crowded place to be. i think people are really under estimating what an infrastructure bill looks like

whatever that number ends up being, there aren't many caterpillar tractors that run on solar so when you make cements, you move earth, you make steel, these are pretty energy intensive operations i think that's under appreciated by the market here >> what about consumer discretionary? >> well, discretionary is interesting and still actually acting really well it made a new high earlier in the week, obviously down today but still the trends are very good there i think that is going to be the most important sector to watch, wilf, because it tends to be the transition between mid cycle and late cycle for the equity markets. and when the relative performance of discretionary starts to falter it isn't the end of the world for equities generally but does say we're in the 7th, 8th, maybe 9th inning it's not happened yet but in the next six months i think that is something we'd anticipate to start to see is that transition. the good news is consumer credit, the other indicators that we look for to see where the consumer is and whether he is tapped out, they're actually

still in really good shape we all know about the balance sheet. you just talked about the checks going out. the consumer is in very, very good shape usually when they extend themselves from a credit perspective that is where we have to start getting worried. i don't think that is in the next month or two. it might be the nextsix months that's what we'll keep our eye on >> do you like financials? financials and energy have moved sort of hand in hand on this recovery trade sounds like you like energy for reasons like infrastructure spending what does that mean for banks? >> well, banks, whatever the fundamental story might be, higher rates, who knows exactly what it is they are certainly one of the better positions that they've been in from a recessionary standpoint you know, they weren't the crux of the problem in this one obviously it was the virus they were very healthy going into it. they've seemed to be getting their act together you look at goldman sachs, jpmorgan, you look at morgan stanley, you look at the traditional pnc or wells fargo, all of these good looking charts that are breaking out, starting to get momentum.

and they score very, very well in our leadership category, and are improving. i do like financials and whether that is, you know, more normalization than the yield curve, loan growth demand, whatever the case may be the thing i like about financials the most is that most of the charts look the same when they all look the same it means there is something happening in the big picture that is driving the group. it is not idiosyncratic. that tends to be good news so yeah we like financials >> a chartist's view of the world right now. thank you. >> thank you >> we appreciate it. coffee prices have been rising in recent months. what is that doing for companies like keurig, dr. pepper, and the big exposure there we'll talk to the ceo about that and much more about the state of the consumer right now whether it can pass on this higher prices as we head to break here is another check on today's after hours earnings mover shares of snow flaik hit even with a better quarter. american eagle down also after hours 3.6% despite better sales of the airy brand.

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>> thhey sara beat on both reveu and earnings but issuing disappointing guidance for the first quarter and you are seeing the stock fall as much as 13% in after hours trade the company also making an acquisition of an identity platform for about $6.5 billion the company says together they can address a broad set of identity use cases shares again down 13%. wilf, back to you. >> thanks so much for that by the way tomorrow on "closing bell" the okta ceo will join us. more to come on that company time for a cnbc news update. rahel sullivan has it for us. >> hello everyone. president biden says he thinks it is a mistake for texas and mississippi to roll back mask mandates and capacity limits for businesses he said it is, quote, neanderthal thinking to think it is okay for people to take off masks with infection rates so high in columbus, ohio a mall was evacuated after officers heard shots fired. no injuries were reported.

the incident appears to have started as a fight between two people police are now looking for two suspects overseas in greece a significant damage there from a magnitude 6.0 earthquake that was felt throughout the region. thousands of people now in central greece are spending the night outdoors because they are afraid to return to their homes. and sometimes you just got to get creative with your workouts. the gym just won't cut it. that would be pittsburgh steelers receiver juju smith-schuster in a tug of war with a 425-pound lion. giving it his all but the lion making the most of her weight advantage. yes, the lion won. but, sara, that is a full body compound workout you know that is a full work out. just don't get that at the gym sometimes. cut to your local zoo to get that type of experience. >> creative. and scary. >> yeah >> i would be scared it would go through the fence.

thank you. >> yes sure >> up next a check on the pulse of the consumer. the ceo of keurig dr. pepper with a look at how post pandemic behavior will change whether americans will keep brewing their coffee at home or back to the office that's straight ahead. plus right across the screen for the after hours movers, snowflake and american eagle both reporting results and both a little bit better. stocks are lower look at okta down 11.6% "closing bell" will be right back

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shares of keurig dr. pepper slightly lower today after reporting earnings last week the stock has been a real winner though a 60% rise from last year's low as the economy slowly reopens and people return to the office. one question will consumers keep making coffee like they have been at home what happens to soda sales joining us now for an exclusive interview is keurig dr. pepper ceo. welcome to the show, bob obviously a big growth driver for you. what do you expect is going to happen as people go back to the office more? >> over the past year as we saw mobility decrease obviously people went from working in the office to working at home and so we saw really a shift in where coffee consumption was occurring. we saw a pickup in our at home business but we saw a loss in

our away from home business. this was a challenge for us to navigate the strength in one area to offset the weakness in another. from a big your picture standpoint if you go back the past five years we've added 12 million new households to the keurig system from 21 to 33 so the short term impact was nice but really the long term has been consistent. >> what happened with the rest of your business specifically carbonated soft drinks as people have stayed home away from convenience stores and fast food restaurants? are they buying more of that at home what is going on there >> what got hurt the moefs would be our fountain and food services, restaurants and hospitality. we saw the impulse channel people would pick up a drink in the gas station to and from work that dropped as well we did see a nice pick up in large outlet stores with take home packs

we saw a real surge in e-commerce we believe we're the most developed food and beverage company in e-commerce so you're seeing this mixed challenge where we had to navigate and offset issues from one channel with growth in another but our execution in 2020 was spectacular. we gained share on 90% of our cold portfolio so that also helped offset the challenges we face >> i want to go back to coffee if i may and ask whether you think people will make more coffee at home long term even when we go back to normal. we've all saved money by eating and drinking at home more than going out. coffee feels like something one could just keep doing and take to work rather than necessarily buying coffee shops. and linked to that do you think people are drinking more coffee in total and that will persist also >> a very interesting question total coffee consumption has remained the same level

prepandemic but it's been moving every year we've seen a shift in where people consume coffee. to your point they are making it at home more than before they've had a good experience with it. we sold 11 million keurig brewers last year. that is a combination of 3 million new households entering the system and an unprecedented level of people upgrading their brewers because they were really shifting to a work from home mode and so the experience they've had with keurig over the past year, which is the quality of the machines is better, the experience with the coffee is significantly higher, i think allowed them to rediscover not only the convenience and the value that comes from making coffee at home but also the quality being significantly higher than they may have recalled in the past >> wilfred's way of telling me he is not going to bring me starbucks anymore before the shore when we get back together which was a tradition. what about the structure it's been so complex since your deal with the jab holdings, the

stake, the lock ups. how much of it is available for public float at this point and can you qualify at this point to join the s&p 500 you are one of the biggest companies not in it. >> it's been quite a journey for us my journey with kdp starts with the take private of keurig green mountain we were a hundred percent private and merged with dr. pepper snapple and only 13% of our shares were available to the public today that number is north of 50%. and that volatility that you described along the way i think has been greatly simplified. we have an anchor shareholder now with plenty of liquidity and shares available to public share holders with a real high quality base we are the most valuable company right now that is not in the s&p 500. you saw that last year we moved over to nasdaq and we are in the nasdaq 100 we'd still like to be in the s&p 500 and we think it's coming >> we can see lots of the brands

behind you we have a wall of them here as well are there any areas that you're not operating in at all that you're looking to, some of the new hot areas whether it is alcohol involved drinks, hot celtsers or cbd based drinks, that sort of thing >> when we launched the new company we were the first to put hot and cold beverages together at scale we describe ourselves as a modern beverage company because we look at beverages holistically from a consumer needs standpoint rather than a traditional format segmentation of the industry which led us to the insight about coffee and cold beverages that is our mindset going forward. we are not in a position to talk about anything beyond that but we have clearly mapped out the open territory in our portfolio. we know where the consumer is going and through a combination of organic development, partnerships, and m & a we'll continue to expand our reach into new areas of beverage. >> why do you think your stock has not been valued the way

pepsi and coca-cola have way under. >> when we launched kdp in july of 2018 until today we've been able to deliver about a 60% total share holder return which is right at the top of the food and beverage industry. we're really happy with that when you look at us on a multiple basis especially compared to our peer set we are trading at a discount and quite simply it is because our performance of delivering strong eps and strong top line growth has out paced our share growth appreciation and so we believe the stock is under valued and we see a lot of upside in front of us. it could be a couple of things we're only a 2 1/2-year-old company. still always an element of prove it to me i think the market keeps trying to categorize stocks right now and you see this in consumer staples as this a pandemic stock or a recovery stock? and our belief is you don't have to worry about that with us because we were doing great before the pandemic. we performed exceptionally well during the pandemic.

we have confidence in our ability to out perform on the other side of this whatever this new normal is. so it's a combination of all of those things that i think are impacting us but we'll be telling our story in mid year of 2021 we'll have an investor day where we talk day wher we talk about the post 2021 time period which is when the algorithm ends it's a really bullish feature. we know we've just got to keep delivering great results. >> well, thanks for coming on to talk about it, bob we appreciate it >> thank you >> wie got breaking news on melvin capital, the hedge fund that was at the center of the gamestop short squeeze >> that's right. i have four sources on this that mel vip capital was up over 21.7% in february. this follows 53% losses in january. as you recall, gabe plot kin,

head of the firm, had been demonized by the reddit crowd. now, it closed those positions in january, clearly seeing a significant rebound in the month of february. again, up over 21.7% for the month. the firm itself dlind to comment. guys, back over to you >> thank you very much for that. mike, i mean, one wonders what those positions were, delivered a 20% game fair play to them >> sure. >> you can't knock a bounce like that that said, are you chasing the losses are you taking on excess risk to try to recover some of the huge losses of the month earlier? >> january was a complete reset of the powerful. portfolio. we knew they had executed before the end of january, even so presumably, if you had to

disaggregate what a 20% return would be, who knows? it could be a hot of these value stocks that have be running all year i don't want to speculate exactly what their positioning is, but there was a mean, growth led and value led that they could have made some hay i think you have to keep in mind, they have some backing, new fresh capital from two investors there as well. sometimes a reset works. >> mike, thank you up next, it could lead to a big up tick in online gambling details when we return

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shares of dish network and draft kings, details from julia. >> well, maybe the future of tv is gambling, dish and graft kings are partnering dish tv subscribers will be able to bet on sports directly from their television it will be integrated in the hopper plan to bring draftkings to sling tv as well as the mobile platform. we are likely to see other

moves, more closely integrated betting and viewing of sports. the net could drive both betting volumes as well as tv ratings. guys, back over to you. >> yeah. a little competition there with your smartphone. julia, thank you draft kings' fall today was more indicative of what happened in the market today. >> yeah. >> which is all of the hot stocks, the darlings, the higher valuation companies that have taken off really got hithard nasdaq down 1.5% for the week. what are we watching for tomorrow more erpgs, kroger, gap. >> one of those stocks that fell today was fubo, also trying to combine skinny betting with sports betting that is one of those meme stops. we're watching to see if we can have any of this holdup. i think the broader market i starting to take on a little bit of wear and tear

if yields calm down again, i'm telling you you're going to hear people say the nasdaq 100 looks did. >> by the way, today a day of selling closing at the lows off the sessions for all three of the averages nasdaq leading down. that's it for us "fast money" starts now. >> tonight's trader lineup, tonight on "fast" we're trading this late day selloff. stocks dropping like a rock into the close. what happens next? we'll break it down for you straight ahead a rocket reversal. reddit crashing back to earth today as investors set their sights on new targets. and why he thinks this stock is an under the radar way to return to the friendly skies. we start off with the toke