because of what the fed chair said. >> that's right. >> his remarks about intrarates and inflation and so forth that was one of the things that was factoring into today's trade. as you see there, the dow is now off just 304 points. nasdaq, though, negative for the year morgan, good to be with you. >> good to be with you, too. we have an hour left of trade. for that, we are going to go to "closing bell," which starts right now. thanks for watching. and we will pick it up, morgan and tyler, thank you. welcome, everyone, to "closing bell." i'm sara eisen with wilfred frost. a calmer market this morning quickly giving wti a frenzied selloff in the arch, the major averages making a sharp move lower following comments from fed chair jay powell nasdaq dipping negative for the year let's look at what's driving the action fed chair jay powell raising the specter of inflation at a "wall street journal" conference this afternoon saying the economic

reopen, quote, could create some upward pressure on prices. those comments helped lead to a spike in treasury yields powell didn't want to seem to did anything about it. it is also pressuring high growth stocks, apple down around 1.5% tesla taking another leg lower as well. one bright spot in the action, the energy sector winning once again. crude oil prices jumping on news of an opec agreement to keep output unchanged 59 minutes left to go, wilfred in another active session. >> energy topped materials, havingly bod told by tech, down 2% we are off the lows as we speak. on today's show we will be all over the volatile market as we head into the close with a lineup including david rosenberg, victoria, fernandez, stephanie link and mohamed el-erian plus we will speak with kroger's ceo and the heated debate over hazard pay, mask mandates and

the prospects for food price inflation. inflation of course a hot topic today. first let's get to the market action mike santoli is tracking it for us and steve liesman has a review of what the fed chair told us earlier. david rosen from rosenberg research also with us to break down knows comments. off the lows but meaningfully lower on the day. >> what had been a delicate rotation from growth into cycle became disorderly. look at the s&p 500. this morning we cracked below last week's low. that's about 37 0. we also spent about an hour in negative territory year to date before this little bounce. and you have really lost the steady trend line. now it is about rebuilding from here only about a 5% pullback from high to low. this is nothing beyond really the routine. interestingly along the way a oot lot of the higher flying

parts of the market have had a good purge look at theis vesco etf. 305 on this etf was the high almost exactly six months ago. this one almost three months ago. the low today was around 305 maybe that's a automatic reflex area for a mechanical bounce or in fact the large cap nasdaq 100 type stocks the ones with profits look better situated this is the percentage of nasdaq 1-stocks above a 20 day average. this was this morning. during the indicate you got below the 10% threshold. typically decent for a short-term bounce. that was the fall. and this is march of last year it doesn't usually get much lower than that unless you have more sustained selling pressure. valuing as it has largely been a valuation

adjustment again the nasdaq not terribly extreme at this point. how the cloud commuting etf, that's come down a lot other times around 40 times earnings so the higher yields are putting pressure on those areas. ipos, spacs, arc invest, all of those down 20, 25% i think you have had a decent amount of flush of money out of the hottest areas of the market. >> not gamestop. bucking the trend. the ten-year yield spiking today on comments from fed chair jay powell on the economic recovery and its impact on inflation. have a listen to powell. >> we do expect that as the economy reopens and hopefully picks up we will see inflation move up through base effects, which means just that the very low readings of march and april will fall out of the 12 month

window and also through a surge, if you will, in spending that may come as the economy fully reopens that could create some upward pressure on prices. the question is how large those effects will be and whether they will be sustained or more tran transitory. for more, let's bring in david rosenberg and steve liesman. steve, the market reaction, it was sharp. you saw it in test reyields. the dollar jumped, stocks fell tell us what powell said and didn't say to create the big move >> i think the didn't say the probably the more important part of this, sara. i think what happened here is you heard the comments that he made about inflation and really, i think the market had some expectation in there that the fed would have its back when it came to inflation rising and yields rising. and there has been this gathering momentum of commentary out there, sara, that the fed was going to step in and enact some form of action to control yields on the long end

all of my reporting suggests that's not the case, that powell does not want to do that and doesn't have the support of the board or the committee to do such a thing at these levels, that 150, 155, even 160. the fed expects yields to rise the market, however, wants protection from the fed when it comes the inflation and higher yields powell didn't give it today. >> i guess, david, the market has been conditioned to get support from the fed and has been very harmonious with the fed throughout this whole journey. now are the market and the fed on different pages >> well, i think that -- i don't know if they are on different pages. look, all powell said on inflation was he paid lip service to base effects, which i think even teenagers know, and that we might get some temporary pass-through i don't believe for a second that jay powell has some big inflation view or sustained inflation view in his forecast

or anybody else's at the fed the really -- the new piece of information today was what he said about how concerned he was with this backup in treasury yields when he said that, it will be a concern to him when we have a more generalized backup in interest rates across the economy. what hasn't happened yet -- of course everybody focuses on what is happening with treasury yields but that's not the only interest rate but is it the interest rate that necessarily matters for the equity market per se he's really saying i will start to get worried about the backup in treasury yields once it starts to facilitate its way into widening credit spreads so the story that doesn't get told is that even with this massive backup in treasury rates, a high yield spreads bear he budged. investment grade spreads barely budged he is look at the backup in market rates in the testry market in the context of what is happening to overall financial

conditions, which haven't really tightened of the at some point if the equity market continues to correct and it seeps into a deterioration in the credit markets and you start seeing back up in high yield rates and in investment-grade rates, they will probably step in at that point. at what level, who knows i think that was the new news today, is that he is not going to step in to cap this run-up in bond yields until of the it manifests its way into the credit spreads that's my reading of the situation. >> do you think that this inflationary expectations, yields rising, inflation rising will prove to be transitory, that we will have a bounceback in the economy as stimulus comes into effect but it will only be temporary and therefore rates won't have to go up based on fundamentals. >> a lot of it is very short-term noise there is no doubt -- we are going to get a two-quarter boomt. i am estimating second and third

quarter will be spectacular. the economy reopens. vaccinations but it is the stimulus that's just huge. i mean even if we save a large part of it, it is just too big then i think we will get a fiscal hangover. but, look, it is still different than if we went back a decade ago to a ten-year cycle that had monetary stimulus, not as much as we have today, but back then who knew what qe was in the back end of 2009. it was radical we had stimulus, including barack obama's infrastructure land the story last team was core inflation bottomed at 1.6% then it went to 2.4% was the overriding story that the 2.4% peak in core inflation

at 3.5% unemployment rate and the stock market that went up fivefold that the 2.4 core inflation rate at the peak was the lowest rate in core inflation since the 1930s. my picture stis me there are a lot of structure factors that are going to impede the inflation that people are putting in their forecast right now. >> you are in the powell camp. guys, we have got to leave it there. thank you for your quick take on powell and this mover with seeing today david rosenberg, steve liesman, we appreciate it. we will have much more on the market selloff throughout the next two hours here on "closing bell,". up next, kroger trading higher on the bask earnings. we will discuss the results. plus the growing debate over hazard pay with ceo robert mcmullen dow is down 446, well off the lows of down 700

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let's have another look at the nasdaq the composite is down 2.3% that's the nasdaq 100 for you. in fact, some of the big cap tech stock as mike was saying earlier, those are with earnings with penal pe multiples pels like facebook and alphabet recovered intraday and are higher mostly red on the nasdaq 100 the nasdaq comp down 2.3%. had recovered to 1.9%, we recovered a bit from 2:30. kroger shares rallying today of a the company came out with an earnings beat this morning. kroger also saw double digit same store sales and digital sales up 118%. the company also surprised on guidance, better than expected for 2021 joining us now for an exclusive interview is kroger's ceo rodney mcmullen welcome back to the show good to have you. >> appreciate the invite, sara >> on the guidance, i think

that's what maid the strongest statement, because many others are having trouble seeing what's out in front of them why are you providing it and providing one that's more optimistic than the street was expecting? >> if you look, it is really -- what we are finding is the customers telling us they enjoy cooking and enjoy doing things as a family. 60-some percent of our customers say the highlight of their day is the family dinner we believe that will continue even when we get past covid. and obviously we hope we are on other side of the pandemic but it's really all of those things together in the customer connection if you look at all the things that we have always been strong on connecting with the customer from a fresh standpoint, the seamness experience, increasingly customers are e enjoying it and the personalized experience it's all of those things working together and i really believe the customer is connecting with that the range is wider than normal, that was really because of the

wider uncertainty than what we would typically have >> what are you seeing from the consumer right now, rodney, as vaccination rates have picked up in this country, people trying to go out more, i would think, and as more stimulus flows with that recent $900 billion just passed and more potentially here on the way. >> what we are finding is customers are upgrading from a quality standpoint and that's across all customer segments and we believe when people find out they really love fresh, they really love a little higher quality -- if you look at premium wines, if you look at murray's cheese -- all of those things cross all customer segments, people are upscaling a little bit for that quality. and it is really the splurge we really think that that's that we are seeing. and when people get stimulus money, what we are finding is groceries is an important part of that spending and that quality upgrade is also an

important part of it as well. >> groceries and gamestop to top the list perhaps rodney, when it comes the mask wearing what's your latest stance particularly as a couple of states start to alter the guidance on that front >> all along, throughout the whole pandemic our focus has always been keeping our associates safe and our customers safe we have made well over 30 changes on doing everything we can to keep people as safe as possible we are going to continue asking our customers to wear masks and our associates to wear masks we just think it's an important part of the overall process in keeping everybody safe and we would expect to continue to do that going forward as well >> speaking of taking care of your associates, rodney, you have found yourself in the middle of this major controversy over these hazard or hero pay mandates they passed in long beach, passed in seattle. you closed two stores in response why did you decide to close stores instead of paying your

workers 4 to 5 dollars more per hour as mandated >> if you looked at the scores we closed, they were struggling already. as you know in the grocery business we operate on razor thin profit margins. one of the thing we are super proud of is if you lock at our average hourly rate per company it is over $15.50 per hour, that's up over 50 cents over the last year. in addition to that, between pensions and health care and some other things that we provide that many of our competitors don't is an incremental $5 an hour so it is over $20 an hour. so far, last year we were able to envest a little over $2.5 billion in our associates in terms of safety and incremal pay. and $1 billion of that was making -- supporting pension for over 30,000 of our associates. so when you look at everything,

we continue to invest and support our associates our associates are incredibly critical to our future and we really think that, you know, we really have asked the politicians do everything you can do to help prioritize grocery store workers in terms of getting the vaccines, and you know, together we will get through it but those stores were marginal already. and when you have incremental expense where it is not addressing all of your competitors, it is only some -- they have decided who the winners and losers were, it was stores we decided to go ahead and close them because we thought that was the best long term decision. >> but you can understand the counter-argument, rodney, which is, you know a lot of those fwoen bonuses that you paid were one time and that the risk is still out there for those heroes, foreign front-line workers, and you have reaped billions of dollars during the pandemic why not use that to pay some of

the workers more money >> and we have and you know, we look -- some people will talk approximate the one time and that -- for us, we don't look at it any different we would really get back to we have invested over $2.5 billion, a good clunk of the incremental profits last year, we did reinvest in our associates and our customers in keeping them safe for us, when you look at that overall, that's something that's really important and as i mentioned before, you know, we operate in a business where it is razor thin profits, and we want to make sure that we are doing everything we can to keep fresh food affordable for our customers. and those are costs that not all of our ket torres have the same, incremental cost for us, we think it is really important for politicians not to pick the winners and losers. >> rodney w that tight margin in mind as we look at all sorts of

commodities prices rising significantly over the last few months are you expecting food prices and total checkout prices to rise. >> for the wholier we expect inflation to be at 1 to 2%, which is a pretty normal number. if you look at it within the year there is going to be huge variances from month-to-month. if you look at the second quarter a year ago we had huge inflation in meat. this year we would expect to have pretty large deflation. when you look at it over allwe are still at the 1 to 2% estimate but it will be very bumpy along the way. >> just to circle back on the hero pay thing again, rodney, because l.a. county just passed it yesterday does that mean we are going to see more grocery stores in the l.a. area closing? >> we haven't made those decisions yet. we will look at that market and look at where our stores stand and make that decision at that point in time.

>> your union says that you are just doing this to intimidate other governments from not passing these same rules how do you respond >> we are absolutely mott doing it to intimidate what we are doing is what i said before we operate in a business that's razor thin profit margins ask. we really continue to invest in our associates in multiple different ways on keeping them safe and incremal pay along the way. and when you look at all of that, we are just super proud of our average hourly rate of over $15.50 an hour and benefits on top of that over $5 an hour. so over $20 an hour in total benefit pay. >> we hope you can successfully help them get vaccinated rodney, thank you for coming on and addressing the issue and earnings we appreciate it as always. >> thanks, sara. thanks wilfred. >> thanks to rodney mcmullen talk over each other, my

apologies. nasdaq sliding again in the last few minutes. down 2.4% now on the session still off the lows but if we have the intraday chart you will see the last ten or 15 minutes has been sliding back down. after the break, we will dig into the inflation debate and discuss whether you should be using the big breaks to top off equities. top searched tickers ten-year note, tlaes, apple, nasdaq composite, and palantir we are become in a couple of minutes. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

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we are down 2.5% on the nasdaq approach 2g% on the s&p. the dow is down 175% as we slide again a little bit after a reasonable afternoon bounce the last half an hour or so. as you can see, sliding towards the close. let's bring in victoria fernandez of cross mark global investments. good to see you. thank you for joining us are you more likely to top up on these pullback days or sit on the sidlines until it has all shaken out >> we actually like these pullbacks wilfred as an opportunity the what we call kind of upgrade our portfolio. we have a wish list of names that we have been looking at we are using these pullbacks as opportunities to go in and get some of these names. nvidia is a name we added to our portfolio recently and we think even though there is this rotation going front growth to value, for longer term

investors, which are what our clients are, then there is an opportunity here to get some of these growth names at prices that are 17, 18, 19% off of their recent highs and add them into your portfolio. >> so nvidia is one of them. vic victoria, what have been a couple other key names you have been adding over the last weeks rather than selling. >> every the last month we have been adding names. names could be like service now, text terra, within the energy space. we like apple. we like amazon these are all names we still hold microsoft is one of our largest holdings in our portfolio. and all of these names have had tremendous pullbacks, using it as an opportunity to start a position or add to your current position in order to take advantage of their growth opportunities over the next year >> obviously we have been debating a lot what chair powell said earlier and what rates have done with the ten-year spiking again to 1.55. are those levels that concern

you more broadly for your equity holdings or are they at least not rising too fast to make you sell holding broadly? >> it was definitely a quick move to get to this point from where we were in the fourth quarter of last year and i think it's the pace of that move that had a lot of people concerned the actual level itself of 154, 155 doesn't current me we are not even back to the levels that we were in january of last year before the pandemic we were close to a 190 on the ten-year treasury. so it is not the level that concerns me. i do think the pace was a little concerning, and that's what powell said in his interview today, that that's what caught his attention. but we have seen that consolidate somewhat up until this afternoon i don't think we will see this same quick rise. but i do think we will continue the see yields trend higher for the rest of the year getting close to where we were a year ago. >> victoria fernandez thank you for joining us. >> my pleasure. sara, we are down 2.3% on

the nasdaq >> yeah. down 426 or so on the dow. time now for a cnbc news update with contessa brewer >> sara, here's what's happening right now. california's legislature has approved a $6.6 billion plan aimed at getting students back into classrooms. it will give $2 billion to school districts but only if they begin in-person instruction by the end of the month. governor knew some says he will sign that bill. in iraq, security preparations are set for pope francis's arrival tomorrow it is the first ever meeting between a pope and a grand ayatollah. they have declared a cease-fire for the duration of the papal visit. universal pictures delayed the debut the next fast and furious movie by a monday. universal and cnbc are both part of comcast. a tragic end to the first day back in classrooms in one arkansas town.

15-year-old detailin burnt has died after being shot by another student monday for more on the case, you can tune into the news with shepard smith. that's tonight at 7:00 p.m. eastern time i will send it back to you, wilf. >> contessa, thanks so much. we have got just over 30 minutes left in the session. let's check in on individual market movers. burlington a bright spot, earnings beat and better than expected same store sales. planning to expand store counts. the stock is up 10%. square bought a shake in jay-z's music service title. spiking on the news though part of a broader tech slide today? we have more to talk about on that one and whether that makes sense. certainly has been a good few weeks to be jay-z. still to come, the nasdaq erasing all of its gains for the year is this the perfect buying tune for those that missed out on the big tech rally

we will discuss with dan ive and funds trust tom lee. they are on opposite end of this call. another busy afternoon of earnings coming your way spanning aert have a of industries that have all been impacted by the pandemic we have got results from i max, broad com, gap, costco we will bring you the numbers as soon as they hit the tape. 29 minutes left to close before we head to break a check on bonds yields are moving higher after fed chair jay powell's comments this afternoon ten-year spiked above 150. it is 154 right now. 161 was the high last week heading north. that's weighing on technology and the broader market we'll be right back. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information.

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26 minutes of trading. another down day on wall street. most of the selling, technology, down another 2.1%. materials also at the bottom of the pack consumer discretion father and industrials all the worst performing groups. the two green spots in the market energy sector. that one is up 2.2% after an opec decision to keep output

intact helping oil prices and all the energy names communication services also coming back as we have seen some of the families like facebook higher on the session. everyall a down day. 1.5% decline on the major averages, almost 3% down on the nasdaq up next, a chief strategist at nuveen tells us what he's buying during this selloff. check out bitcoin as we head to break. falling back below $50,000 dow is down 357, a big improvement from down 700 which is where we were earlier this afternoon. still, broad based selling we'll be right back. alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions

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♪ ♪ welcome back stocks selling off on comments from fed chair jerome powell on inflation earlier today. the dow down 1.2%. the us arel 2,000 down 2.8%. for more, let's bring in brian nick thank you for joining us clearly yields are higher. is that a buy signal for bank. or as we are looking at all the banks except for one or two of them down today and showing everything is going to be

pressured if this trend continues. >> i think the bank makes sense here we have steeper yield curve than i thought. but i think it gets steeper from here though not at the pace we have seen. and that should be good for banks. we have the best household balance sheets that we have seen here in the united states that should look good for consumer cyclicals. we are still big believers in the recovery here, if anything, the strength in the recovery and the stimulus in addition to the efficacy of the vaccines in a cumulative is responsible for this mini tantrum we are seeing in bond markets. we are still thinking this is a good thing we think investors should be fully allocated in equities. >> since last week, the dow is down 6%. the nasdaq down 8.3% does that make sense do you expect it to become the norm for the shored to medium term. >> the outlook for growth is

strong and broad based for 2021 and 2022 as well it probably makes the tech earnings irrelevant which now they are negatively correlated with interest rates generally rising rates is good for technology relative to the rest of the market i don't know how long that holds. some other sectors will start getting attention like industrials as we talk about infrastructure and like banks and consumer cyclicals maybe because they didn't have quite the run last year look better to investors right now. >> just to be clear, on tech holdings, should you stay, stay in them for the long term and sort of ride out this period of volatility on rising rates or would you be repositioning the portfolio totally into more cyclicals? >> directionally that's what we are doing. we are probably gone from far overweight tech to mildly

overweight tech but we still have that position because we think at the end of the day the "uss a growth market tech has got a very large role in the u.s. market relative to the rest of the world. that when we come out of this, which is going to be an artificially high growth period because of the bounce, because of the stimulus, these stocks are going to look very att attractive to folks looking for long term returns, not just over the last few years where is the bulk of the return going to come from in the u.s. market we think it is tech. but this the short-term we are away from tech and into cyclicals. >> are you buying overseas >> especially in emergin markets. the powell comments were interesting. if you think the fed is going to lose its infer here and tightan prematurely, i think that is very low, then you don't want to own emerging markets high dollar, all of those have been toxic for em over the last years. if the majority of the committee

didn't think her going to be raising rates for three years i think the road ahead for em looks good i don't know if the currency is going to appreciate against the dollar at the same rate but em equities tend to do well in the return seeking risk on synchro nows environment >> thank you for joining us. thanks for having me. we are all over the selloff four down 2% on the nasdaq, just off recent lows. we are moving fractionally higher. up next we will look at tcina's tumble and key thing to wah broad com's results as we take you into the "market zone" next 18 minutes left in this big day of selling yeah! (laughs) virtual wallet® for digital banking. one way we're helping to make a difference at pnc bank.

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14 minutes to go in the trading day, we are now in the "closing bell" "market zone." commercial-free coverage of all the action going into the close. cnbc senior markets commentator, mike santoli, is here to break down these crucial moments of the trading day. and today we have got high tower chief investment strategist stephanie link with us, too. we are off the lows. the nasdaq is now down less than 2%, but significant selling across the board today mike, what is the balance now between being oversold versus breaking below certain key levels of support? >> i don't think we are sort of broadly comprehensively oversold to the point where you would say this is a washed out market. down just 5% in the s&p 500. sort of challenged some of the technical levels i think the bounce today both made sense and could also be seen as a little bit too cute. you got to the exact 10% pullback this the nasdaq 100

to the exact kind of year to date break even level in the s&p and then bounced it makes sense but i don't think it is necessarily very decisive. if we are looking up for this welling up of fear and having a sense of lick wi dags nobody seems like they are doing that it looks like the first half of a 10% direction but not all of them get there i think the cyclical stocks and credit indicators are not showing any change in the macro outlook. it is much more about discount rates, what yields mean for valuations and it is kind of crowded and growth stocks, high velocity growth stocks that have broken stride. >> but you have, two, steffi, factors, that were helping the bull market run going the other way, which is test reyields and the u.s. dollar. does that make you rethink what you are doing, what you are buying and selling right now. >> no, i mean, look, 50 basis points on the ten-year is a lot

in five week's time. perspective. 1.54 it is manageable. prepandemic we were at 2%. we talked about this so many times y. are rates going up? that's most important in my mind rates are going up because we continue to see not only deep sent data but it is broadening that's a good thing. this week along the market pmis continue to stay in expansion. ism at the best level since 2018 chicago pmi up, we talked about manufacture asking the renaissance fair it is happening. it is for real i listened to a million different companies on the manufacturing side and they say all good things. it is only 12% of u.s. gdp but for every one job created in the industrial manufacturing sector 7.7 jobs are actually created around it. it is very, very important to see the manufacturing parts of the economy doing well flip over to the consumers which we know is 70% of the u.s.

economy. continuing claims are still too high but headed in the right direction. the hiring intention up 96% for 2021 year the date that's a huge number that's all good on the job front. at least we are headed in the right direction. we talked about it, personal savings of 21.5% versus $5 that is huge potential pent up demand that is why you see the opening names doing well frankly when you have a little bit more growth, more inflation, that translates into better action for the value versus growth trade to mike's point, growth is extremely crowded. it pulls back, you might want to look at some opportunities on the growth side at some point. >> even if, mike, rates are rising for all the reasons that stephanie just laid out, the optimistic growth picture in the u.s., for the return of inflation, the market is not settled with it. and they are clamoring for some sort of action can you review what operation

twist is and why that seals to be something that the market is expecting. operation twist is the name give to the fed's program where they would skew their purchases of bonds to the longer term maturities to try to suppress yields in the longer end of the testry curve the idea being that those things fed into mortgage rates and such and they didn't want the curve to get too steep that was something from the last mini cycle, whatever you want to call it. i don't know that the market wanted something aggressive like that, maybe some openness by chair powell to that, or some concern that there is a limb being neared to how comfortable they would be with long term rates going much higher. we had the five-year yield above .75. it is where the ten-year was months ago i think it is mostly an adjustment process filtering into valuations assumptions and all the rhett of it. i don't know necessarily -- the other thing that powell said and brainard said earlier this week,

which is we are not worried about where yields are unless it is accompanied by -- tightening, credit spreads going out that means the market has to panic more if they want the fed to respond. >> there we go again >> sara? >> yes. >> one set, the core pce that the fed looks at for inflation, it is at 1.5%, it is quite manageable that's the number you really do want to watch, especially going forward in the next couple of months you are going the see easy comparisons it is going the rise, watch it watch the speed of it. >> yeah. and inflation expectations are rising as well. we have got to hit tesla shares, which have gotten hammered this week with the selling. let's get to phil lebeau for more on the action in that stock. >> brutal week for tesla back to tuesday, really a brutal three days for the stock

down 14 to 16% depending how it closes today at one point it was trading i think at 715, $718 a share, down basically $100 over the last three days what is behind this? you heard mike talking about what's going on with the high multiple stocks. look no further than tesla if you are a believer that high multiple stocks should be under pressure that's why tesla is. and there is no catalyst for optimism right now aside from our belief that tesla will lead the ev market, we haven't seen news or an even. there is nothing that you can hang your hat on if you are a tesla bull right now aside from the optimism that elon musk and his team will be the leaders down the road. and finally, ev stocks are stalling, especially this week look at it it's test lachlt it's lordstowners mo, risker, neo, and even the ev-related stocks look at quantumscape another stocks that under pressure even though everybody within the

auto industry will tell you evs are the future they have had a heck of a run over the last month and it is not surprising that as the market comes under pressure the ev stocks will be coming under pressure. >> mike arc lot of people pointing to the fact if we close roughly where we are or lower for tesla, then from a chart perspective there is lot a lot of support for a wire lower. you can't find forward on a pe basis for a further lower. >> the s&p bought this stock at 695 when it went into the index. it is down 10% before it announced it was going to go in the index it was at $400 it went up so fast in those four months broadly, the market is hunting for stocks that have a high story to substance ratio it doesn't mean the story is wrong. it was too much reliance and hot money that built up gains very fast not just tesla, not just ev.

pretty much everything if you want the look at software. it is in the books in terms of that stuff getting cold and those stocks are down by a ton it is the start of the process it is under way, i think a lot of this. >> is it looking cheap to you steph, now at only 155 times forward earnings >> you know the answer to that look, this is in my benchmark. it hurt me all the way going up. no really, this is a sentiment stock. i bet it, a total addressable market stock i own active that stock is down as well. they have fundamentals and they have earnings and margin expansion and free cash flow those are all the characteristics i look for and i do like it that's the one i would buy on the weakness sorry. >> there we go a pullback option for you. shares of snowflake not pulling back today after yesterday's earnings beat. the ceo was on "squawk alley"

earlier today talking about the company's growth going forward >> we are bottled up in the economy wasly due to the lockdowns and constraints and what have you. once you start unleashing all of that, i see it as a positive for everybody in the economy, not just us. so we are looking forward to letting it rip, right, and really pursuing our opportunity with everything we have got. >> mike, this one hasn't had the same level of buildup over a sort of medium to long period of time like tesla. but had also been unbelievably successful and thus part of the general pullback of late. >> 40% off its highs before going into they results. everybody universally agrees it is a great opportunity, perfectly positions company. and you heard the ceo or the cofounder talking about the fact that a ga economy is going the ramp their business, too great, but you have to see what's already been priced in. as i said, down 40%.

a lot of these stocks already are. maybe this reset has already gone some distance toward being complete >> broad comshares are also under pressure ahead of the chip makers earnings after the bill josh lipton has a preview of what we can expect. >> heading into this report broadcom like the rest of tech has been under pressure. the chart there. up 180% from its march low check in with chris roland at success ka hannah, he expect a modest beat in part given strength from customers like apple. however we know there is a historic chip shortage across the industry that chris says could limit upside the big number to watch, q 2 guidance chris is looking for $6.42 billion but has to be closer to $6.6 billion for the stock to move higher. >> josh lipton, thank you. steph, what are your thoughts on

broadcom >> well, i own it. i like it. it trades at about 20 times forward. you get a 3% dividend yield, you get cloud, data center and 5g. apple is a 20% customer or revenue base for the company they are going the see tail winds for that as well i think the biggest numbers i am looking for right now are bookings at $7 billion and backlog of $14 billion i do expect a strong quarter it is about the quite. i think the quite might be better or less bad on a squepgs business because this is their seasonably slow quarter into next one. >> mike the dollar had a nice jump today as well as yields. >> it did. dollar went up to a mul month high marginally. it happened as yields were popping after powell did speak i think that's a little bit of a challenge. it puts a little bit of a wrench in the works there are a lot of trades that are on heavy reright now in this market are based on the premises of a continually weaker dollar

it could up ensome of the general macro trades that are out there. not level that you worry about but just the fact that it did pop. it was a stand up and notice moment. >> didn't derail oil oil is the best performing sector, the only positive sector in the s&p 500 as we approach the close. what are the internals showing >> not good but not as bad as you think. the new york stock exchange had positive revenues earlier in the day before the selling wave hit. less than one third of all the volume on the new york is advancing volume, two thirds on the declining side on the nasdaq, much more negative look at the new highs versus new lows on the nasdaq 322 new lows, that is a high for many many months back. the fact it is exceeding new highs -- it is showing you the damage is piling in tech, growth, biotech. that's something that's going to have to work through as we get

through the direct corrective period even if we are primed for a bounce volatility index, definitely lift here. we never really crashed below 20 up around 28, 29 the vix futures look like they are still in okay shape. in other words one of those things you would look for to say is something breaking louis in the capital markets? is there a lot of stress building up? there is a lot of mispositions so far you are not seeing it in the roll tilt index even though people continue to be on edge. less than a minute left in trading, the dow is down 385 points it has been a wild ride today. a 900 point move from positive to a deep negative going down more than 700 points after extents from ted chair jay powell suggesting they weren't prepared to intervene in the bond market. we saw yields take off 150 after those remarks. the subpoena better than it looked earlier in the afternoon.

every sector is lower except for energy all the highs today are in the energy names as well as comcast, our parent company also making a new tie. technology is the weakest link, worst performing sector. the nasdaq is down 2.2%. that's going to take it negative for the year, down 1.35% year to date all the other major averages are still higher the nasdaq, which was the big star of 2020, is now lower, with more pressure on technology as yields march higher. that's been the story. and it happened in a big way today, wilfred. >> off the session lows at the close, but markedly lower for all the major afternoons welcome to "closing bell." i'm wilfred frost along with sara eisen and mike santoli, cnbc senior markets commentator. the russel of call caps down 278% nine out of 11 sectors were lower. communication services was flat. energy was the outperformer, up

2.5% tech stocks essentially the focal point getting crushed again today. coming up, we will have a debate whether this tech wreck will continue we will be joined by tom lee and dan ives we have earnings coming, broadcom, costo, i max and gap all set to report. we will have all of those numbers as soon as they cross. stephanie link still with us and mohamed el-erian joins the conversation let's start with the comment from fed chair jay powell that sent a lot of the market falling. >> we do expect that as the economy reopens and hopefully picks up we will see inflation move up through base effects, which means just that the very low readings of march and april will fall out of the 12-month window and also through a surge, if you will, in spending that may come as the economy full rely opens and that could create some

upward pressure on prices. the real question is how large those effects will be, and whether they will be sustained or more transitory >> mohammad, what was new in that statement and why did it send stocks lower? >> very little was new the problem wasn't in what he said it's in how he said it policy makers and economist also look at this and say, well, he said something pretty obvious. market participants look at it very differently they will say he said something that's -- for the fixed income market, for what i have been betting on for a long time, ample provisional and central bank liquidity and therefore it is worrisome for stocks. i think this is simply the economist and policy makers not understanding that their words are interpreted very differently in the marketplace >> it's a weird situation,

mohammad, because you have got test reyields rising which in effect it should be a good thing, right we have been expecting higher growth we have been wanting higher growth we needed to get out of the depths of the pandemic, and more jobs, and more stimulus to help fight it so treasury yields are rising for right reasons and that's why stocks have been rising why does it fool so ugly and why does it feel like the market is pressing the fed to do more when powell sits there and says we are going to do as much as we can and we are going to stay all in until we totally get through this? >> this is really important. it is a good thing that treasury yields are going up for the right reason the right reason is that this economy is set to recover very strongly that's good for the stock market long term. the problem are the initial conditions it is what you have heard me say for a long time. the massive disconnect between fundamentals and what have been liquidity driver valuations. i was very struck by the words that mike and stephanie said

i agree with them, when they referred to, oh, it is those who had high story to substance getting hit. those where the sentiment was the driver it is those where liquidity was the driver all that tells you is we have had a massive disconnect and what it does assume is that we cannot assume qe infinity. we can assume that interest rates will remain low forever skmchl that means that two thing that have worked so well for stocks are under pressure. there was no alternative there is an alternative now. secondly, importantly is what all the model driven flows are, which is stocks because when discounted cash flows are what they are and very low interest rates of course you buy stocks and that's what's being challenged. >> mike, we mentioned sentiment earlier, and positioning what about flows have we seen money flowing out of equities yet? in particular, of course, the

oft focused on arc etf >> there has been no time really for those flows to reverse last week we are looking at record dollar level flows into securities the arc complex experienced outflows but you have had days where they picked up a lot of money, there has been some dip buying i don't think as of now you have had the reaction run through that chain of people being alarmed by what the market is do and then flowing out -- we are down 5% in the s&p after it went up 80% in 1 months if you are a central broker, you say there is a long way before i have to worry. you are worried about main street, the market can come in a little bit what i find fascinating is when powell is asked do you see any

issues with financial stability, any doubles, do you see the stock market as being too high and he refuses to bite on that and outright say yes i think the market is too high but when he does something like this knowing that the market is going to take what he says to get concerned about where rates are going people think that it was inappropriate or unwelcome i think we are still in a band of not really worrying about the absolute levels of either rates or stocks even though, yeah, it could get messy from here if things don't break right. >> so, steph -- what's in the eye of the storm we mentioned some of the high valued stocks. would you put ipos spacs? what do people have to be careful with that have gone up so much if we continue to see this pattern >> ipos, spaces, reddit, high growth stocks stocks that trade at 42 times 2022 sales those kind of thing. i understand why the growth trade worked last year

we had slow growth and a very accommodative policy we had no inflation anywhere at the time last year naturally growth is going to work we talked about if you see better gdp with more inpolice station and higher interest rates that usually is a better environment for value overgrowth and growth got super, super crowded. i actually think there is going to be an opportunity in growth at some point, but i don't want to go for those high flyers. but i don't want to go for the software companies that i can't figure out and i have got to go and do the total addressable market thing i used to do because that makes those investments vulnerable at any time imlooking at -- i went underweight fang i would look at them again i am not there yet, they are not down enough given what they did last year. i like sem conductors, semicompany equipment companies i am overwait on cycle accounts and financial and industrials. i am going to add to those spaces because i think that's

where i see the operating. if powell was seen as less dovish and nervous about enflags the market would have sold off three times as much as it did today. he went the transitory angle as i mentioned earlier the core pce of 1.5% is very, very manageable. >> mohammad, can you understand that oil closed up 5% almost does that make sense to you? can it continue? >> it does make sense to me because opec plus came and said we are not going to lift the output curves. we are not going to increase output and the market was worried that they would increase output so, yes, that makes sense to me. i want to stress, because it's really important to think of what's going on in terms of risk factors. the biggest risk factor now is the liquidity risk, where l liquidity has gone and lifted wotus that shouldn't have been lifted so high

the second risk is interest rate risk the third risk is default risk everything steph just said makes sense. stay away are the names, the fongs for example, where liquidity has been such a strong driver they will be attractive again. in the meantime, focus on where credit risk or default risk is mispriced. that's the better place to be. the time will come for fangs again but we have got to take steam out of the liquidity with driver names. >> why don't you think we are still in a period, mohammad, of intense liquidity? he's not pulling back on asset purchases. he's not raising interest rates. yes, the financial conditions tightened a little bit but off of rock bottom levels. >> steph used the word i have been using the fed ends up in a lose/lose situation. sara, you and i have talked about this in the past when asked earlier this week what should the fed chair say, i said nothing, because whatever

he says will be misinterpreted think about it what is he supposed to say the economy is picking up and inflation expectations are going up that's reality it is a good thing it is not a bad thing. it is good thing what is he supposed to say if he were to say, i don't care, we would get a massive selloff if he were to say i do care and i am going to intervene even more, whether it is operation twist or more qe the players would say you are going to put even more stimulus into this it was a lose/lose situation he tried to strike a balance in the middle when you try to strike such tricky balance the likelihood of making a mistake is high. >> what about if he added color about what tools are in the tool box to use if they do see a disorderly move or an excessive tightening of financial conditions and just sort of talked about what's left for him to do. do you think that would have been a mistake >> it would have been because this is a very greedy market this is a market that has gotten

used to pushing the fed around, and the ecb, to that extent. so if he had put out there certain tools that they are thinking about, the marketplace would have wanted him to accelerate implementation. i tell you the best approach would have been to say nothing at all but he tried to strike that balance. it's very hard i don't think anybody could have struck it. it is tricky i go back to steph's notion, it is a lose/lose situation right now. >> and a greedy market mohamed el-erian thank you, great to have you here on a di like today we appreciate it stephanie link, you too, always good to have you. coming up, tech takedown, we will debate whether technology will make a comeback soon after another big day of selling in that sector. also awaiting earnings from broadcom, costco and gap we will have instant analysis of all the numbers as soon as they come out. >> former goldman sachs ceo marty chavez on the future of

financials back in just 90 seconds on "closing bell. you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪♪

welcome back that's how we closed down 2% for the nasdaq a little more than that for the russel, a little less but still down for the s&p and the dow eye max numbers are crossing joolia boorstin has them for us. >> i max beating expectations on the top line with revenue of $56 million cross the $47 million analysts anticipated

earnings missing estimates by a penny with a loss of 21 cents per share. the company saying results reconflict a strong performance in china and japan where local language releases recorded robust box office which they say ranked near prepandemic levels they also announced they have installed 33 systems inside 11 agreements in the fourth quarter. they are enthusiastic about the box office and audiences returning. >> i-max up 4% after-hours of course after a negative day of trade in the actual session. let's flip it back to the broad markets. to the tech sector in particular the nasdaq leading the declines today as we have been discussing, down 2.1%. joining us to discuss where from here, dan ives and tom lee tom, i will come to you first. you have been calling more for outperformance of value overgrowth of cyclicals over tech but i think it is fair to say you have been bullish for the

headline markets overall and subtling people should buy some of the recent dips what do you make this pullback we just experienced the last few sessions and few weeks. >> well, i mean, it has been -- i think it has been very rocky, obviously the last couple of weeks. i think equity investors in our conversations are grappling with two thing they may not have had to deal with the last ten years. one of the potential for inflation to actually have to be priced into equities i think there is a lot of confusion. and then it's a bond market that seems to be testing the fed, which kind of scares people because, you know, there is a difference between the bond market feeling like they can move the fed around versus the bond market maybe having a communication issue which i think mohammad was suggesting. if the latter is the case, then i think stocks will be fine. but, yes, it has been rocky. and stocks are due for a correction i don't think we should be surprised that it has been bump

snooe tom what do you make of the fact that the vix is once again climbing again i know when it pulled back significantly on one day you thought it was a bullish signal. is this a bearish one? >> yeah, i mean the vix is a you are in of markets expected future volatility. in a way, i think it generates signal two ways. one is i think for the most part i think we should expect the vix to average this year at lower levels, it averaged almost 30 last year. i think it is going to average below 20 the entire year i think moving below 20 would be bullish. but the last couple of days we have had a spike in the vix. whenever the vix spikes like this we know it triggers a lot of deleveraging. i think in a contrarian way, as ugly as today was, you have to remember, if someone is an equity investor, you know, with patient hands, you know, they should take advantage of days like this. this is the days to actually be adding to their equity exposure.

on th -- >> on that note, dan n this conversation you are the tech bull we know how you feel on some of the names like apple of all of them that have gotten beat up in the last weeks, which ones look attractive. >> docu-sign, you look at a z scaler as well and ultimately apple that's a $3 trillion market cap as we look at it through the rest of the year we think tech stocks are up another 30%. i view this as a white knuckle period which creates more opportunity given the $2 trillion incremental spend that's the key. >> what's your view on tesla from here? >> my view is we are going through -- obviously this risk off period you are seeing some of the worries on ev. but it is a $5 trillion market i view that this is a company that's going to change

automotive going from 3% penetration to 10% and i think still this is the trillion dollars market cap. china started off rocky in january. we think that's going to a bust throughout the year. ev continues to be a bright green light as well as tesla. >> you are making the fundamental case and you have got the stories down pat for these stacks, dan. are you saying that the majo liquidity environment and the super low interest rates don't have anything to do with the valuation in the names you are talking about? >> oh, it definitely does. but when you look at some of these names, down 30%, like docu-sign or z scaler for what's redesigning digital transmission in cloud stock and cyber security investors are waiting for this period and they are going to buy two handsful because to me that's really what's going to lead tech higher it is not just cloud cyber security, it is fang names and we view this as just the

middle of what's going to be a tech bull cycle. >> dan and tom we have got to leave it there two opposing views on tech we appreciate it we will stick with the technology beat because broadcom earnings are just out. josh lipton with those numbers josh >> broadcom reporting q 1 results, 8:.61 versus expect igss of 6.55 revenue coming in at $6.66 billion. for q 2, looking for $6.5 billion. analysts modelled it closer to $6.3 billion digging into segments, sem conductor solutions -- ceo saying we expected well during our first fiscal quarter driving 14% organic growth year on year. this growth he says reflects the critical role our technology franchise has played in this environment of accelerated

digital transformation conference call is at 5:00 p.m. eastern. back to you all. >> the stock is unchanged. josh, thanks. up next, former goldman sachs cfo marty chavez plus, mike santoli breaking down the sentiment showdown on wall street and whether the bulls can win back momentum in this market after another tough day of selling for them. as we head to break a look at today's biggest losers in the w.do

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bank stocks after fed rool ral reserve chair jay powell's comments joining us, marty chavez former gbz cfo. former gbz chief technology officer, and head of trading marty, good see you thank you for joining us. >> good on the here. >> a question on the broad markets to start if i may. clearly volatility has picked up and tech stocks in particular pulled back. do you think that was probably due and that started to get some frothy type indicators leading into the last couple of weeks? >> wilf, i'm just someone who

spent an entire career not making statements about causality. i think it is really hard. i think human brains are designed to find meaning and find patterns. i always stick with the old one about more buyers than sallers. >> pivoting to the sort of long term and fintech opportunity you built out marcus or were a big part of doing that at goldman sachs. what do you make of walmart entering the space and poaching goldman sachs people at the same time, do you think that's proof of concept what have goldman sachs is doing or a threat to goldman sachs. >> i think it is absolutely a proof of concept of what goldman sachs is doing i, as you know, you are very kind, i was part of a whole team that evaluated the firm's possible entry into consumer finance and worked on it with

many people and contributed to the building of it i would say, wilf, the way to think about all of this is that in the future of the financial ecosystem, which is already arriving, you had better be the producer of some products or services that are wrapped in apis, application programming interfaces so the computers can call them. and you better be an astute consumer of lots of apis provided by others and there really is no intermediate strategy. that has very much been part of the success of the goldman strategy. >> but ultimately, wouldn't it a scary prospect for the country's biggest retailer to dive deeper into the world of banking directly to the consumers? >> well, sara, there is many points of view on this i actually had the privilege of teaching a class at stanford gsb last spring. the court materials are on line in case anyone wants to see them, how software ate financial

i have very strong thesis that the future of fintech is banks meaning no one is going to say i borrowed money from the fintech. right? there are some things the banks need to do and you are definitely going to find banks providing those kinds of banking services from inside the regulatory construct and then they are going to wrap those services in a computer accessible form in ipis and they are going to make those services available to everybody else. you saw a preview of that with the apple and goldman credit card you are just going to see more and more of that there are some things like taking deposits, other things like health, that are regulated and they always will be. >> marty one area i know you are heavily involved in is biotech it has been an area of significant weakness over the last couple of weeks do you consider it as an opportunity not per se as investors buying biotech toxibut

that it is a golden opportunity for the sector as a whole? >> i see this, wilf, as an unbelievable olden age for the life sciences and biotech. a long time ago when i was a kid, freshman year, i remember a professor said the future of the life sciences is computational that future has arrived we are in the very, very early days of that it is a very long term theme going into the next many decades. i don't pay much attention to the latest two or three week up or down. >> you joined the board -- the chairman of the board of recursion a biotech company. back to the fintech theme, i wanted to ask you about squir's investment in title and adding jay-z to the board a company that gets a higher valuation than some of your bank that you are talking about does this make sense to you, this move. >> it does

the move makes sense to me and yes, there is this -- there is this valuation gap as you observed i don't really know what to make of it. i would say one story is there investors are beginning to understand the value and the importance of regulation and yes it has consequences for the return on equity the banks are not going away and they are fine businesses they are getting rerated we are seeing that and i would say at the risk of stating the obvious, that any bank that doesn't get really great at making software is not going to have much of a business in the future. so you are going to see this big convergence. you are going to see the so-called fintech firms buying banks, becoming banks or zooitd deciding to just stay out of the banking side of the regulated ecosystem and get those kinds of banking services through apis which is exactly how the apple credit card works.

>> is it easier marty to pursue some of these things outside of traditional financial companies? is there more flexibility when you are outside of a firm? i ask in sort of a broadway because you left goldman sachs, a couple of your colleagues have of late. is one of the factors the opportunities you have when you are outside of an institution like that. or is that just coincidence that we have seen some of these departures. >> well, there is opportunities. and goldman is an incredible place to learn the craft and does an unbelievable job of recruiting people and training people and there are lots of opportunities. i know many people asked me, why did you retire one way of thinking about it is 25 years is a great run in one place, and every once in a while you just want to -- you want to learn and grow, and sometimes you come to the conclusion that you do it outside. or you go back and forth it is sort of ancient history now but during the.com boom i

started an early software service firm it was an incredible experience. a fintech before people used this term and went back to goldman sachs and had an amazing time i think the back and forth across the banking regulatory construct, i think it is healthy a good thing. >> marty, thank you for joining us good to see you, as always. >> always a pleasure thank you. a pair of retail earnings just crossing, gap and costco. courtney reagan has both for us. >> hi wilf let's start with costco. costco putting up a mixed quarter here it appears to be a very big earnings miss reporting 2.14 the street was looking for 2.45. revenues did beat, though, coming in at $44.77 billion. consensus was for $43.78 billion. the total quarter comparable sales, up 13%. digital up 76% remember, costco does still report monthly we did get a peek into those but they are also giving us

february comps, those up 14% and digital up 91% shares of costco, little changed after-hours, down just about half a percent let's move to gap. gap, inc., reporting a diluted earnings of 61 cents it is unclear if this is comparable however there are some charns and gains in there gap revenues though did miss, pretty clearly, putting up $4.42 billion. the street was looking for $4.66 billion there. when you look at the brand breakdown, old navy remains the leader i think it is important to point out that in north america gap brand comps were positive. flat overall a big divergence, though n the global numbers old navy the leader globally, up 7% for comparable sales. ate letta a smaller brand, but up 26% banana republic however global comparable sales down 22%. when it comes to the full year guidance, this looks to be about -- about in line to

perhaps slightly higher for the revenues the eps guidance is from 1.20 to 135. on line sales for gap up 49% making up 46% of total shares from the gap are slightly higher but less than 1% after hours in response. sara, back over to you. >> athletic becomes a billion dollar brand, posting that number in sales. we have a market flash encore logic bette bertha comes with the details. >> this is a deal that has been on the rocks this afternoon, co-star group announcing it is walking away from its $6.9 billion bid for core ogic. they say they are terminating any further acquisition discussions. they believe that rising interest rates will negatively impact the outlook for the mortgage refinancing market.

just on monday, co-star had sweetened the bid by $450 million. core logic still didn't like the size of that bid and was balking. and it looks at this point that co-star figures, they are just going to walk away they do cite the interest rate environment which of course is hitting the mortgage market hard right now. back over to you >> yeah. helping co-star up 7.5%. up next, more color on gap's numbers that just crossed. and mike santoli looking at a pair of contrasting sentiment indicators and whether they are signaling another risk to investors right now after the s&p clos dedown 1.3% big day of selling nasdaq down 2% we'll be right back.

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stocks closed lower again today, though off the worst levels of the session. tech was hit especially hard let's go to mike santoli for a look at sentiment. where does it stand. >> it isseda good time for a mood check here. it is off the highs of extreme bullishness. this is the weekly aii poll. this is the spread between investors who say they are bullish and those who say they are bearish. it has been sliding for a couple of weeks as the market softened. but not showing a lot of concern. this is as of tuesday so it doesn't capture the last couple of days of trading if we get a deemer pullback you

would want the see this going down further for a contrarian measure. valuations have gone away from the average, extremes in price action in stuff that seems hard to value the story stocks, the fast-moving stocks, this has mean been at a high. i am not saying it has to mean revert because there is a new public participation in this market but it shows you we are coming off weak positions in general. finally, a weekly pulse of the active professional managers has pulled back. it is not where it was in september and october. a net positive for the market that they are not as extended as they were. still ahead, costco under pressure after missing profit estimates. and gap higher > plus a fed flag on gender

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welcome back it's time for a cnbc news update contessa brewer has it for us. >> here's what's happening right now. the senate has volted to begin debating the $1.9 trillion covid

relief bill. before they can begin, all 628 pages will be read on the senate floor. makes me tired thinking about it after republican senator ron johnson made good on his promise to force the reading the congressional budget office says the federal debt will double over the next 30 years but that excludes this covid relief package publicly held debate is expected to grow more than twice the nation's gdp by 2051 in dallas, a 13-year veteran of the police force has been arrest asked charged with two counts of capital murder brian riser is charged with two unconnected killings in 2017 investigators say the murders were not related to riser's police work. in spain, authorities used a bulldozer to crush nearly 1400 weapons kepttured from extremists it is to pay homage to the victims of terrorism in spain. the prime minister took part in the event and says he helped it

would high pressure repair the pain caused by the terrorism sara, back to you. >> contessa, thank you. up next, your retail roundup. costco and gap both out with results just moments ago the stocks are moving in opposite directions. we will dig in with the retail analysts after the break. a check in on the biggest losers in the knked oc100 today, reaching correction territory, 10% off its highs. we'll be right back. for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin

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easyaspie.com. gap reporting earnings just motion ago old navy a big driver in the quarter with comp us up 7% i had a chance to talk with gap's ceo about the numbers. she says old navy was a standout, grew market share and is now the number five retailer in the u.s the number two apparel brand it climbed from number nine to number five this year. she also said the health of the consumer is strong and they are paying more. said they grew their customer file by 14% over the fiscal year joining us for more is dana tellsy, ceo of tellsy advisory group. dana, this is clearly a company that is remerging differently from where it started prepandemic. what should investors do with the stock. >> one of the key things that came out of this report is inventories are up 14%

they are going to have merchandise to move through the first half the game line they have in place with old navy andate letta going off mall and on line is the right plan covid could be impactful to margins with 14% inventory levels the first half of the year in the near term i think there is opportunity in costco, i went to get through that inventory in gap. >> just on gap, i of course asked soapia acceptingle dana about kanye west there is lot of anticipation there. she said she spoke with kanye last night, not a progress report on the creative deal and that they are on target. she said this is a priority for all of us and they are on track to launch the line in the first half of the year what is that going to do with the core gap brand which has been under pressure? >> collaborations mean things. collaborations with impactful influencers is key

is it going to be a savior i don't think. i think it has to be old navy andate letta who are the drivers. but to bring awareness to the collaboration could help them and on the core margin side. getting clean on inventory and having a positive impact from low rent costs is the key going forward. >> what did you think about the costco report. >> the last week of february their camps were up over 300 basis points the fact that they did a 13% comp in february is encouraging. they missed the quarter on the eps. we have got to hear a breakout of some of the covid costs but they are an essential retailer i think gap has the game plan in place for the future i think costco is where the consumer is going now. >> more broadly, dana, we just got a $900 billion shot of stimulus, we saw what it did to retail sales they boomed in january if we get another $1 trillion

plus, almost $2 trillion, where is that going to go? which retailers do you want to be in? >> i think the names i want to be in, i want to be in the reopening and recovery names urban outfitters because people are going to get together for socialings occasions i think you will see the ambercrombies of the world do well look at burlington's numbers today. they were very good. and you can chase demand don't forget luxury names like lbmh will be impactful you will see consumers want to get out and spend. i think they will want to spend on occasions, travel and service, also, we haven't had apparel spending in over a year and i think they will want to refresh their wardrobes. >> what is your latest view on walmart? it has had had a pronounced slide in just the last couple of weeks. does that make sense to you? do you think this is a great buying opportunity >>ic the wall marts and the targets of the world are more of a buying opportunity the reason why, it typically is

66 days for consumers to form habits walmart and target sell more than just essentials and i think you will see people continuing to go back there i think you have an opportunity in walmart with their buying power, with what they are doing with on line and i think there is awareness there, and with stimulus, their customer is going to benefit >> one thing that came up in a conversation with the ceo of gap was the port situation and some issues they have been having there. not alone, dana, what's going on with the supply chap for retail right now and where do you see the problem points. >> i think it has been one of the most impactful ish us supply chain. we are seeing congestion getting into the ports anywhere from two to even three weeks. once goods arrive the availability of truckest just to get those goods are the ports all the way out until the distribution centers and ultimately to the stores has been one of the most challenged time periods it will probably take the first

half of the year the work itself out. i think that's why you are going to see inventory levels continue to be at a little bit of a mismatch until we sort this out. by the back to school season we should have it sorted out. >> you like you like big box what don't you like in retail? >> you definitely want to watch some of the things out there where some of the brands have been a little bit weaker i'm watching some of the laggard names which have moved a lot if they've had rubs, are you able to main tape the runs i think department stores are challenged some of the closed mall areas, inability to get traffic, it's making the mall retailers challenged urban areas, whether it's locals or tourists, we don't have it. that's also some of the stores that depend on urban area sales are going to be more challenged,

given the strength of the suburbs lately >> thank you for joining us. >> thank you for having me >> this afternoon's earnings movers and we'll tell you what's behind the moves in broad com and imax as well the big push for gender diversity has made progress over the last few years, but w taneda show there might be a bump in the road when we return. honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones! oh yeah!

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...and learn how much you can save at xfinitymobile.com/mysavings. a quick look at some of this afternoon's biggest movers broadcom shares higher and shares of imax moving higher on mixed results. the company saying it's seeing strength overseas, particularly in china, japan and looking forward to reopening up next, bridging the gap. women have been making progress toward board equity, but some fresh data is pointing to a startling detail

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shaped by technology and human ingenuity, we can make it work for you and your business. this women's history month we're looking at the gender gaps across business. today we're honing in on women on boards. julia borson is here with the kind of progress we're seeing toward board equity. julia. >> women are making progress towards equal representations on boards the progress slowing according to the new diversity index it find that about 24% of all

russell 2004 seetsd are held by women. but 6% have no women on them at all and only 8% boards are 50% female last year it was 39% down from 4% the prior year. they warn that at that rate boards won't hit gender parrot until 2022 back to you. >> which is disappointing. obviously, there's a number of ways to fix this more female ceos would help, get a bigger pool, but also boards taking from a pool that's not just ceos, go down a few levels. as long as companies continue to focus on diversity and gender, racial diversity, gender diversity, they can get more people bottom line up.

it all goes to the board levels which makes the call >> abc six on the roughly is particularly disappointing seemingly no progress on those slightly smaller companies >> that shows how much there is to do. >> like that enacted by goldman sachs in terms of not taking a company public and that will help with some of those smaller companies. i think we'll start to see the investment banks and others to get out. there is a long way to go. >> or you might see more california where they start to mandate you or punish you. quotas not the best way, but it might work >> pivoting to the selloff today, 2.1% on the nasdaq. prominent names down, like the teslaings of the world be interesting to see what happens. >> this started six months ago

with rotation out of the huge stop, it's well along, a much more messy rotation. fang is not really where the excess is right now. i also wonder if just when everybody's convinced all of a sudden we get a re-rotation or a flattening out of strengths and weaknesses >> much more annals coming up now on "fast money." >> the tech trade continues to unwind as stocks sink. all three major averages falling more than 1% the nasdaq, all of the schemes for the year, the biggest thee-day drop since early september. jay powell, the fed chair saying they are going to stay on the sidelines even as rates spike. what should you be doing now guy, tim,