trillion stimulus. so it is puzzling to me why some who embraced it a year ago have now become critics some members of the senate who criticize it today voted for it last year. we needed it then. and we need it again now so i think people should stop, if you will, nitpicking, and recognize that this stimulus is necessary to help us get back on our feet as a nation. >> mayor, we thank you we have to leave it there. we will see you next month next time. >> morgan, thank you for joining us, and thank you all for watching "power lunch. "closing bell" -- we took a few seconds up from them we will make it up to you. wilfred and sara. >> no problem at all, tyler, morgan, thank you. welcome to the "closing bell," everyone i'm wilfred frost along with sara eisen a frantic friday on wall street, the major averages were up more than 1% near the open before plunging deep into the red and rallying sharply back into the green.

in fact, two session highs on the dow as we speak, 530 points, 1.7% higher. what's driving the action? the jobs number was strong coming in well above statements. unemployment ticking to 6.2% the s&p spiked after that jobs report the senate vote coming as soon as this week senate members agreed to reduce extra unemployment payments to $330 per week but extended them to september sara. >> what a wild day coming up on today's show, new york city officially rolling out the rhett carpet for movie goers towed opening theaters with limited capacity we will speak with amc whatb what it sees happening in the box office as the country

reopens. plus, liz ann sonders will give us her rising rate playbook. tesla adding to losses today. we will ask an analyst whether now is the time to buy let's focus in on the big stories we are watching. one hour left of trade mike santoli is tracking the market action. joining us today, dana peterson from the conference board. mike, start us off with this crazy session. >> an impressive reese reversal. a mini selling panic and then a minor buying panic what was going on at 11 :30. nothing in particular. you saw credit markets doing nothing, no stress whatsoever, it was enough to get a little bit of a lift. also the arc investment type category of stocks also had pressure relieved off of them.

what happened has gotten us back into the zone, 2850, 2870 is where you get to before you say the market is earning back some of the uptrend credit. it looks okay. it has been a realign member type market going growth into cyclicals. whi when it kind of became a zero sum gain in terms of not all sectors going up tech and internet they started the give it up in the middle of february but energy and financial asks other cycles continued to go up this became misaligned that's why you had index losses. look at the districts right now. cyclical sectors, industrials, financials, energy, terse, they are about 27% of the s&p 500 as we stand root now. still 39% are the tech sector plus fang and tesla. all together, 39%. this is a 4% swing from last year nothing says they have to get the each this is why it is a little bit

of a mismatch in terms of the amount of flows in and out and it doesn't have to be a zero sum game this is hedge fund positioning in mega cap tech this is higher hedge funds own a on thton of i. when it is lower it suggests the rotation is mature, it doesn't have to necessarily keep working against thebig profitable tech companies right now, guys. >> rising bond yields have been blamed, mike, for the selloff we saw this week and the past few weeks. they are stabilizing i mean, the yields spike up and then go down, it looks a little bit like what we are seeing in the stock market action. what test consensus on where we are going now that we know this current move is not worrying the fed. >> the market overreacted yesterday to what the fed did or didn't say about concern about yields and it leaves the market to search for its own pain threshhold on tress ree yields that being said nothing is dictating they have to rush

higher from here the curve has gotten steep relative to whether where it was. i think right now everyone assumes they can nudge higher but the velocity and the stress in the treasury market that popped up here and there in terms of jagged trading that was another thing that concerned people that calmed down a little bit over the last couple of days. >> we are off the highs of this session. near the lows. the ten-year had spiked above 160. we are at 155 as we speak. the latest job report shows an economic recovery could be on the way. 379,000 jobs were added in february compared the expect agricultures of 210,000 jobs and the unemployment rate fell to 6.2%. dana, thank you for joining us good to see you. is this jump all related to reopening? does that give us confidence it can continue or make you feel that it is temporary >> well, even the report said that the jump that we saw,

355,000 jobs in the leisure and hospitality sector was related to reopening around the country. so this definite low d-- definitely does bode well for labor markets healing as there is reopening but that's going to depend upon widespread availability of vaccine. >> to what extent do you believe her going the get to targets 6% is impressive for this economy. >> it is going to be looking at a variety of economic indicators having to do with the labor market for example, yes, the overall unemployment rate has been falling. but, you know, other measures of employment have been kind of weak, certainly we saw the unemployment rate for black persons jump up. labor force participation for both men and women has been falling, and indeed for women it fell again and we still have 9.5 million

persons who are still not working compared to a year ago with 53% of those persons being women. the fed is going to be looking at all of these things >> clearly you are also making the case now for stimulus, for the fact that there is still a very deep hole for the unemployed and that's what the administration has been pointing to, dana, but do we need $2 trillion of stimulus at this point, when the data -- it is not just jobs today. manufacturing, retail sales, all points to steady improvement >> well, i mean, we are not -- i did make a case for or against stimulus what i did say is that once things reopen, once mobility restrictions are lift, travel bans are lifted, and people can get facebook work and also that being very much tied to vaccines, that we will see an opening up of the economy. in the meanwhile, certainly, you have a lot of folks especially when we look at the k-shaped

recovery folks in the bottom half of the k shape who are still suffering and might benefit from the fiscal supports what are the fiscal reports? sustainable growth or temporary or transitory in terms of creating a pop and growth that doesn't persist. >> would you have liked to have seen dana more focus on unemployment benefits, whether that's over time or immediately, as opposed to broad stimulus checks >> well, again, i think that, you know, there are a variety of measures that are important here certainly, measures that can help people get back to work would be important so anything that's going towards vaccinations and testing, anything that's supporting businesses such as the ppp and certainly for folks who are still struggling, you know, a cash injection may not be a bad idea for those folks, and also people who are, you know, still unemployed can benefit from unemployment benefits.

again, the key issue is reopening the economy. and really the fiscal supports are just a stopgap they are not really meant to super charge growth. >> how does this set us up for the rest of thee, dana where are we going to be when we tack to you in december if we continue to see the reopening and we do see more stimulus come down where does that leave us >> it means we are probably going to have much higher growth rates for this year than what people were anticipating before there were strong indications there was going to be a third round of fiscal supports we will also potentially see unemployment fall, maybe even fall below 5% by the end of this year, into the upper fours again, the fed is going to be looking at all of these factors, what is driving growth, whether or not inpolice station is pigging up, how quickly it is picking up and how far it goes above their target all these factors are going to be important yes, we will see faster growth, we are expecting a boom in growth certainly starting the

mid year when things really open up and also better labor market indications. all of thatl have to factor into what the fed is looking at in terms of easing -- or no longer easing as much as it has been. >> dana, thank you for joining us good to see you. >> thank you we will have much more on today's big market comeback as we head into close as always. and then after the break it's friday, that means the doctor is in former fda commissioner dr. scott gottlieb will talk to us about the johnson & johnson vaccine and when the country could reach herd immunity. dow is up 1.6% you are watching "closing bell" on cnbc. woo! you are busy... working, parenting, problem solving.

at new chapter vitamins we've been busy too... innovating, sourcing organic ingredients, testing them and fermenting. fermenting? yeah like kombucha or yogurt. and we formulate everything so your body can really truly absorb the natural goodness. that's what we do, so you can do you. new chapter wellness, well done. ♪ ♪ (kids talking) pnc bank believes that if an app can help you track your pizza... come on cody, where are you buddy? ...then your bank should have the technology to help you track your spending. virtual wallet® was designed to change what people expect from their bank. easily see what's free to spend... ...and where you can save, so you can budget even better. ok, he's gotta be close.

six blocks in the other direction. make a left, make a left, make a left! he made a right again. virtual wallet® for digital banking. one way we're helping to make a difference at pnc bank.

welcome back a pretty remarkable session today. and as we approach the close of 45 minutes left, we are higher by 1.6% on the dow more than that on the s&p.

less than that on the nasdaq the nasdaq had been down 2%. the sector heat map. all 11 sectors are higher. it was split earlier in the session. energy up 10% for the week, 3.7% today, over the course this week, energy has been up on down days and on up days. >> it has been a remarkable run. today the s&p has been up a percent and down a percent haven't seen that since july. new pugh research survey finding 69% of americans intend to or have already received at least one dose of a covid-19 vaccine. s that up from 60% back in november this comes as president biden earlier this week said there will be enough doses for all american adults by may let's bring in dr. scott gottlieb former fda commissioner. sits on the boards of pfizer and illumina and is a cnbc contributor. welcome back, doctor >> thanks. >> so, let's talk percentages. 16% of americans have now had at

least one shot of the covid-19 vaccine. if you add that with the percentage of americans that have already been infected with covid-19, how close are we to herd immunity at this point. >> not necessarily close to herd immunity i don't know that we achieve that i think the statistic is that 21% of adults have received at least one those. 6% of those above the age of 65 and 70% of those above 75. 30% of adults by the end of this month will have this at least one dose of the vaccine. when you combine the number of people who have been vaccinated along with people with residual immunity we are at significant levels about one third of the country has been infected with coronavirus at this point. we are approaching about another third i have dults who have been vaccinated you are at high levels, where

the virus itself is going to stop circulating i think people sense that the overall risk is starting to be reduce that's why you are starting to see a push to resume activity. adults who are vulnerable to this invex particularly older americans now have been vaccinated many of them and they want to start going out again. i think that's why you are seeing governors changing policies and creating a glide path towards more normal activity going into the spring and the summer. >> it showing up in today's jobs reports. restaurants the biggest contributor to the jobs game what is safe to do and what is not safe to do once you have been vaccinated. dr. fauci said he still wouldn't hug his grandchildren after being vaccinated how did we know what is appropriate right now? >> people need to assess their own individual risks relative to what their vulnerabilities are i think the bottom line is people who are fully vaccinate ready going to feel protected. they have seen the data on these

vaccines they feel protected. and we need to provide reasonable guidance for what they can do. people who are vaccinated -- grandparents who are vaccinated are going to want to see their kids and grandkids putting out prescriptive guidance saying they can only congregate with others who have been vaccinated isn't realistic. i think we need to accept that people as they gain protection from the verse lieu vaccination are going to want to start going out again. i think that's reflected in people wanting to go out to restaurants as well. once people have been vaccinated and waited the required time to have immunity kick in they feel more comfortable going out if we are in a high prevalence environment i think we should be cautious i don't think we should take the masks off. march is difficult month it sits on the cusp of two time periods. one when there was a raging epidemic in february and april

stands to be slow. it is early to take our foot off the break but we need to create a path as people head into the spring and summer and realize that the overall vulnerability of the population is reduced at nursing homes, infection levels are way down in nursing homes. back to levels they were in last april because now we have fully vaccinated residents of nursing homes. >> dr. gottlieb is saying there will be enough supply for everyone to have had their first dose by may the same as saying they will be administered by them or have we not got the lodgestics to be confident that that will happen >> it is not a question of logistics. i think it is a question of demand there were a couple of cases last week where more second doses were delivered we are still having a challenge getting vaccines into certain hard to reach settings you still have to sign up, go to a mass vaccination site, go on

line for a lot of people that's difficult. taking off half a day of work is difficult. i think we need to think about things of running vaccination sites 24 hours a day like they are doing in new york creating more opportunities for people to get vaccinated and go into hard to reach communities and bring opportunities to get vaccinated directly too individuals we will have more supply than demand soon. right now for a lot of americans it feels like it is hard to get vaccinated i think that's going to persist the next three or four weeks towards the end of march and into april i think there is going to be more supply than demand in the market and people will be able to get an appointment. >> then we are watching new mutation, dr., gottlieb as you have, and whether they can evade immunity, the protection from the vaccine. have there been any documented cases -- not the studies that pfizer and moderna have done, but actual documented cases, where people do get very sick with covid with the new mutations and strains even after they have been vaccinated? >> we don't have a lot of data

of these vaccines in the real world against these new variants we have data against b.1.17, the uk variant and we know the vaccines are protective against that variant we haven't seen the vaccines in the real world against 13.51 and the p high pressure 1 variant the variants that changes a region on the spike protein that had allow it to evade prior immunity we don't think the vaccines are going to be less effective against thatary yant but you don't know until you have data in people. right now we have data in the laboratory and there is reduction in the immunity that vaccines afford in the laboratory but in the no the real world we will have that data soon. even if there is a decline in the protective equities of the vaccine against those variants if you look at the data that we have so far if novavax and johnson & johnson you see a 20% reduction everyall in the effectiveness of the vaccine against 1351

if you impute that onto the mrna vaccines they are still about 80% effective. that's still quite good. i think the bottom line is at least for the foreseeable future we are not going the lose these vaccines people who are vaccinated will have protection against the variants that's giving us confidence. as we get more of the population vaccinated i going to provide protection against these variants. >> so why did we need boosters then >> well, because the protection from the vaccines is probably going to decline over time although we don't know that for sure we haven't followed people out for long periods of time but if it behaves like other vaccines against other viruses of this sort you are going to see a decline in the protective effects of the vaccine over time just like you will see a decline from natural immunity after you have been infected

this is being studistudieds, ths reason to believe that if you receive a third booster of the vaccine it might make it even more effective against these new variants we will have data on that. those studies are getting underway with you there is a suggestion that a third booster might provide additional protection. you could see a situation where heading into the fall people will be getting a booster either from the existing vaccines or maybe from new vaccines that have been specially fashioned to protect against these variants. >> dr. gottlieb, thank you very much for your time and your thoughts. >> thank a lot. >> we appreciate it. good see you. we have just under 40 minutes minutes left of trading. near session highs the s&p is up almost 2%. all secretariesors now higher. energy is in the lead. consumer discretion father is lagging. and the nasdaq up 1.3% it was down earlier more than 2.5%. up next we have talked at length about the reddit trade. how about the trade on reddit

itself we will tell but the new steps that company is taking toward a public offering. check out today's top searched tickers. plenty of macro interest the ten-year yield continues to be at the top of the list. the nasdaq, s&p 500 rounding out the top five we'll be right back.

we see homes staying cooler, without the planet getting warmer. at emerson, we drive the adoption of more environmentally friendly refrigerants, for a greener, more sustainable impact on our future. emerson. consider it solved.

we have got just about 35 minutes left to go going out on a high note for the

market here's a check on some of the reddit favorite stocks and how they are trading gamestop is up again, for the week, shares of gamestop up 40%. rocket companies backing off today. still up around 16% on the week. today, redity itself announced it has hired former snap executive drew vollero as their cfo. he helped snap in its move to go public reddit's ceo said we are thinking about it working toward that open when asked if the company could enter the public market meantime, leslie picker reported robinhood has chosen to lift on the nasdaq when they go public i guess the question is whether reddit and robinhood when they go public bm the ultimate meme public stock >> i hope they go public on the same day everything coming together it will be interesting to watch,

particularly the robinhood one, because it has raised so much capital already. probably lower the amount of capital they need the raise. but opening the doors to further raisings goings forward will be fun to watch. still to come, we will speak with amc's adam aron and ask about movie theaters reopening in new york and whether he feels the company benefitted from being short squeezed temporarily. plus, liz ann sonders will join us in just a moment. here's a look at bonds ten-year did hit 1762 earlier. but pulled back and is in fact 1.55 basically flat on the session now.

dow up 533 points, session high was up 560 points today's move takes us positive for the week, both on the dow and the s&p. nasdaq still down 2% on the week but it is up 1.5% right now, which is a huge turnaround from

what we saw earlier, down more than 2.5%. time now for a cnbc news update with rahel solomon. >> hello, everyone yet another attempt to increase the federal minimum wage in the covid relief bill has failed in the senate the vote was 58-42 a new study says there was actually no mass exodus from california last year a non-partisan think tank says the main change was that fewer people moved to california the study found that most californians who did move last year just remained in state. the state department says that china's changes to the hong kong legislature are a direct attack on the territory's autonomy it also condemned china's, quote continuing assault on democratic institutions in congress. and a dallas police department allowed an officer to keep patrolling more than a year while he was being investigated for two murders. it says that it didn't want to

tip him off to the probes. the news on shepard smith covers the case that airs at 7:00 p.m. eastern. president biden speaking about stimulus as the senate gets set to both vote on the bill this weekend. kayla tausche has information on where thing stand right this minute >> throughout the day today the white house has been fielding questions about exactly why it feels so strongly that this package must be $1.9 trillion despite the fact that there is conti continued data coming in i spoke to a couple senior administration officials the try to get the white house's thinking on exactly why it believes regardless of all the of this data that this is what the economy needs root now and is not budging two themes emerged from those conversations. first many of these officials who are advising president biden served on the obama administration and they still feel they were unfairly criticized following

the 2008 financial crisis for the protracted nature of that recovery and how long it took the get back to prerecession levels they point out that the jobs report is a backward looking number and they think jobless claims is a more accurate look at where thing are today and they point out they are still worse than the worst week during the financial crisis which was 665,000 weekly claims. they are still on defense essentially from the last financial crisis and they want president biden to be approaching year two of his term on a strong economic foot. the second issue is they feel that what they learned under the trump administration is that the economy can run hotter than perhaps economists once thought, that under the trump administration you had low rates, low taxes, easy money, 4% unemployment, and even then, inflation woo was elusive.

with the economy where it is right now that inflation happens is not an immediate risk even with all this money coming into the system whether you believe that or not, that's up to you but that is the argument that the white house and various officials who advise president biden are making behind the scenes that's the line of thinking he is being given in economic briefings like the one he got this afternoon and well see whether or not this is a package, $1.9 trillion, that arrives on his desk and ends up getting his signature wilf and sara. >> it's certainly the case that secretary yellen has been making kayla tausche with added color on stimulus. up next we will break down the state of the housing market and how rising rates are impacting the spring selling season the ceo of lgi homes joins us with what he is seeing when "closing bell" cesig bk.om rhtac

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. it all starts with an invitation... ...to experience lexus. the invitation to lexus sales event. lease the 2021 nx 300 for $359 a month for 36 month's, and we'll make you're first month's payment. experience amazing.

and we'll make you're first month's payment. no one likes to choose between safe or sporty. modern or reliable. 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. ♪ ♪ ♪

historical perspective rates are still very low the rates we are offering to customers, the mortgage rates, are approximately 50 basis points still lower than they were at this time last year. prepandemic, where the market was still really strong. so historically we are in really good shape, but still a very affordable payment for our customers that are currently in rental situations looking at buying that first home and still seeing strong demand. >> are you seeing levels of demand that diana just alluded to with a lot of backup and essentially a kind of demand no matter what the prices are >> we are. we focus on the first-time buyer but the demanded we are seeing is across the board. we are operating in 35 different markets across the country consistent demand across all of our markets, across all of our price points that we focus on.

and even though rates have increased a little bit, that also gives the buyers the urgency to go ahead and write a contract on a house because we are seeing prices continue to go to go up and rates go up so it is a great time to buy >> you are based in texas. curious what the market has been like there with the severe weather. and across the 35 i think markets you just mentioned, where is the strongest activity happening and where is the weakest? >> shurmt thanks for asking, sara, on the weather even here in texas non-event for l girksor, iz. it was about a 48-hour event no material impact to the company. our team did a great job all of our existing houses had very little challenges through the weather. a testament to the quality of the homes that we did, that we build. our accounts payable team did a great job making sure all of our trades and vendors got paid that week of the event to make sure they could take care of their

employ geez and their families as far as market strength texas continues to be strong houston is strong. for us, the carolinas are strong you know, the fourth quarter, which we just reporting our closings, averaging ten closing per community per month was the strongest we have ever seen. we really don't have any markets where we are not seeing strong demand the strength is across the board in all of our markets. >> eric, are you seeing price inflation as well in terms of our raw materials? >> we are, we are. lumber costs are up. a lot of the items are up. labor costs are up for now we have been able to pass that cost onto the consumer rates are helping with that. so our average sales price is increasing $253,000 average sales price in 2020 our guidance for this year is 260 to 270 but right now, we believe we are going to be able to pass those costs off to the consumer. the margins will remain consistent with lgi. but certainly looking at an

average sales price that's probably going to continue to go higher >> eric, thank you for joining us good to see you. >> thank you appreciate night the dow hitting a session high as we were cutting that interview up over -- briefly it was over 600 points now back to 564. strong gains as you can see from the intraday chart well off the lows. coming up, spacs pull back and a tesla analyst tells us why he still thinks the stock is overvalued the "market zone" is next.

want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job

at indeed.com/home. - [narrator] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu. this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. >> announcer: the "market zone" is sponsored by etrade trade commission-free today with no account minimums.

15 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 gina sanchez here as well welcome, gina. we will kick it off with the broader markets. stocks are surging into the close after volatile session we are near session highs on the dow, up 576 points just got over 600 a moment ago the nasdaq has also bounced back in a huge way after being down 2.5% it is now up more than a percent. mike, why such a dramatic turnaround when yields are still a bit higher so is the dollar >> yields are higher but well off their highs from the morning. once it was clear that the treasury market was not going look at the jobs number and go off to the races in terms of higher yields, and really you saw a koresh endoof surrounding

the emerging growth areas that have been under pressure once that relieved and you looked around and it didn't seem like thib was trapped in credit or in the larger cap names and the cyclicals never budged it has been a consistent message that the macro budget was okay context, the s&p is basically at yesterday's highs where we were at noon yesterday. we are still below where we spent most of february it is not that it is an all clear and everything is great. it is just for the moment, the panic after jerome powell's comments yesterday has unwound. >> this week's activity has predominantly been driven by yields >> i think that's the focal point. yields haven't had a dramatic move i think everybody is overanticipating what it is going to mean. to be honest i think more the excuse or the pin that punctured some of the super high price to

yields value stocks and there is froth being skimmed out of the market from spacs, recent ipos and some of the very, very high value tech areas that has been underway and it spilled over into the broader market we will see if it stays contained or not i think rates was the thing that you could focus on to say it was the incremental mover moment to moment. >> it was the nasdaq where you saw the most pain. gina, you advise institutional investors on strategy. would you be telling them to buy these tech stocks? nasdaq has gotten to correction levels, 10% off the recent high. >> i think most of this has been focused on valuation i agree that calling this yield move dramatic is an overstatement. but this has been focused on valuation. and so while we believe in the recovery trade and we are advising our clients to be positioned for that recovery trade we do think you need that at a reasonable price.

some of these names were poised to have air taken out of their balloons >> shares of virgin galactic tumbling after the chairman sold his personal sake in the company world more than $100 million moon while, the cnbc spac 50 index touching negative territory for the year after a very rough week and listly picker has the details for us. >> a rough couple weeks in fact that basket of 50 spacs that have yet to announce a deal has seen volatility, especially today, now in positive territory. the biggest decliners were led by some of the more well-known names in finance whose star power garnered action. but cnbc's post deal index has been hit harder recently this is comprised of the largest

spacs that have already announced their mergers. some of the biggest decliners, star peak energy, very wello dine, and lordstown motors facing significant selloffs, guys >> leslie thanks for that. gina, what is your take on some of these spacs are you optimistic and going the use the pullback as a buying opportunity? >> not at all. spacs have been one of many elements that say there is too much money in the system right now. we have seen money supply growing and absolutely no inpolice station and all of that money has been finding its way into assets like spacs if you look at the way they work the risks are tilted against the retail nvestors. it is one of the reasons we are advising you steer clear of these. in most cases you have institutions participating in the hyped price and then they pass on sometimes a company that's not even ready for an ipo into that spac and pass that risk onto the market we don't see much upside here. >> that's -- i mean that's an

interesting chart. the cnbc spac post deal, mike, is flat right now. >> right. >> and has come back a little bit. is it a good deal for retail investors or not >> they are as good as the story. i think that's one thing to keep in mind that the whole thing with spacs in large part is that a new company can come out there and merge with this shell of cash and tell a story for years to come and make redictions and decide that the outlook is rosie. it is sort of a way in for some venture deals. it is going to be company by company. you can't say with it a brad brush. but the idea that you would pay a premium for a spac upon issue because you were confident this group is going to come up with a snazzy deal down the road, it is a tough proposition but i think it is in tune with the way the market is operating. which is we want optionality, leverage to the upside we are not worried if it doesn't to much of anything. at least up to the last few weeks that was the "today."

tesla shares getting crushed this week. down more than 10% let's bring in craig irwin from roth capital he has a neutral rating, bown 3.5% had been down 10% on the day earlier in the session it bounced like others craig, good to see you thank you for joining us. >> thank you. >> the institutional investors that you speak to who maybe were reticent to buy tesla at its peak valuations in recent weeks and months, do you think they are going to be drawn in now at $600 >> a lot of institutions that were not involved do share my view it was egregiously overvalued it is only off by a third. my $150 price value is where i would be an aggressive buyer of the stochlkt there are people who would start higher than that, but there is no sane reason for the stock to have the valuation it had valued at more than the total value of both the north american

and european automotive sectors. you know, i don't see a lot of people stepping in but we need to say that tesla actually does have some levers it is pulling this year. the entry to india the upcoming mini car. these will have very large units, both of them -- india will be just as good as china. the mini car will be more probably than the s, x, and 3 all put together you know, it is a very good concept for the european market, the indian market, and i think the asian markets as well. you know, we are probably going to have to wait a while before a real buy signal in tesla 24 correction i think is really only partial will he over in the space right now. >> i mean, it is easier, craig, to say that it is crazily overvalued when it is falling. but for a long time it was just going one way, up. and no matter what and we are still a long way from your price target of 150, at $600 per share

which raises the question of who moves tesla on a given day is it bitcoin now? is it interest rates what do you think is actually driving this valuation >> so, there is a lot of enthusiasm for a variety of things one of those is software you know, which i think is a spurious argument. you look at the software content in vehicles today, you know, the nav systems in cars, who buys those now? you use your iphone. you plug it in and you have a superior system to what the automotive oem is offering then you have robotaxis and autonomous and people like to day dream about this there are some aggressive technology investors that bid in and definitely aggressively buy the stock when it is going up. but those same investors are equally as aggressive on their way out. retail adds fuel to the fire right? retail tends to drive a lot more momentum in the space. and then the fear of missing out

plays such a big role. we have been pretty consistent saying, you for example it's overvalued when something sort of gets a value of more than a total sector and only does half a million units versus what, i think 45 for north america and europe combine that's absurd. >> craig, final question with $150 price target, the bearishness that you hold, have haven't you got a sell rating? why haven't you got a neutral rating >> because i am a believer that the india market is going to be fantastic. so i think tesla has the opportunity to surprise the upside i believe i am the one that broke the news of mini car last year the mini car is going to be a big, big deal. so the units are going to be fantastic. they are going to execute. what's going on in the stock i don't think is really a function of whether or not elon musk and his team is doing a great job. it is a great company, great

cars and they are executing well i think this is driven by external factors, the bond vigilantes jumping into the market and doing what they do to the equities and the sector everyall is one of the highest beta sectors of the market fueled by retail and so we have negative beta on the way down that's what's playing out here. >> interesting it is still down almost 4% as tech rallies off the lows craig, thank you for joining us, on tesla >> thank you >> big story of the week let's quickly check the dow. it is just off session highs right now. we are up 585 points 588 right now. it has been a strong final hour of trade reaching something highs up a little over 600 points a big turnaround from what we saw earlier in the day one sector that's not working today. cruises. norwegian sharply lower after offering up another stock offering dragging other cruz companies down with it. >> norwegian launching an equity

offering of nearly 48 million shares in the public market. it is a large deal nearly 15% of shares outstanding as of mid february it's priced about 8% lower than yesterday's close. capital it will use to pay down debt norwegian's sailings are suspended through the end of may. its start date has been pushed back several times that's likely why you are seeing the cruiselines including royal caribbean and carnival seek out options to shore up liquidity. buy doing so they are further delighting existing equity holders. back to you. >> cema mody, thank you. near session highs as we march into close another check. dow is up 590 points united health care is adding the most points to the dow as we speak. most dow stocks higher exceptions, goldman sachs, jp morgan and boeing. everybody else is up, caterpillar, amgen and salesforce near the top of the list microsoft coming back as well.

it is helping the s&p and the nasdaq, which are sharply higher, mike, off the back of the weakness we saw ier and throughout the week. two minutes left, what do you see? >> without a doubt i would mention one of the differences today is the mega cap tech stocks are participating. it is not one of those zero sum gain deals they seem to have found a little bit of footing yesterday in the selloff and recovery with a couple minutes left the internals look better. they started off very, very negative in terms of the volume split. right now new york stock exchange volume much more than two to one to the positive side. you have this kind of reversal in breadth as well as in prices. that's something that usually is at least very short-term a bullish indicator. look at the equal weighted s&p against the market cap weighted version year to date this also hasn't really bunched where the average stock has been outperforming. before today's comeback it was solidly. equal weighted s&p up more than 7% year to date. just a little over two months

into year. still pretty good. volatility index has been fascinating. even when the market was near its lows it was not registering panic. here we are around 25. some stocks going up, some sectors going down it sometimes can smother the volatility and keep the vix contained still, 24 vix implies a 6.5% s&p move each day. that's why it doesn't have to go up that much even if the market is choppy. >> for one minute left remarkable intraday turnaround the dow high was 656 just off of that s&p also up by 2%. and the nasdaq composite, which had been down the best part of 2% is now up 1.6%. the nasdaq will still be negative for the week to the tune of 2% but the s&p and dow both higher. today all 11 sectors on the s&p

are higher energy up 4% today 10% on the consumer discretion father is the worst performer today. positive by .75% the worst perform every on the week as a hole, down nearly 3% split performances at the close, sara, we are up 1.8%, or 566 points for the deposit. up 1.9% on the s&p, and 1.5% on the nasdaq a stomach churning day gives way to a very strong close on wall street. welcome back, everyone, to "closing bell. i'm sara eisen with wilfred frost and mike santoli, cnbc senior markets commentator take look at how we finished up the day and the week on wall street higher that final hour of trade we really took off. the dow closed up 573 points most dow stocks closing higher today. united health care was the biggest contributor to the dow's

gain the s&p 500 up 2%. this was the first day higher for the s&p in the past four we are actually not even too far off from a record high and we are up 1% on the s&p on the week, which makes it the first positive week in the last three. and just if you are keeping score, so far year to date, up 2.5% for the s&p the nasdaq closing up almost 1, 1.5% or so first up day for the nasdaq in the last four. it is still down for the week, which shows you where the brunt of the selling has been on the higher treasury yields and questions about valuation. tech stocks hit hard nasdaq up 1.5% today, though, ending strong. the russel 200 index of small caps, up more than 2% today. first up day in the last four. also not far off from its own record high. but has been under pressure over the past week. coming up this hour, liz ann sonders joins us on the wild swings in the market and how to

move date them. plus, new york city movie theaters reopening today at 25% capacity coming up, amc's ceo adam aron on how that will impact his company's bottom line and where reddit traders saved his stock first let's talk about the market, gina is still with us. michael skin of ubs financial services joins the conversation. first to you, mike, on a crazy week in that it was so painful, especially if you are a holder of some of the winning nasdaq tech stocks, ipos, spacs that got crushed this week, but ended today with hopefully potential for a rebound? >> yeah. i think the market as come away with it to say that, yes, most of the damage that has been done in high value tech, in biotech, in recent ipos in all of those

parts of the market that people would have been able to point to in recent weeks and months and say that's where all the excess is, where the easy money is piled occupy you have seen them come off 20 or 30% there is a concern of a disorderly rise in treasury yields i think the conclusion after a strong jobs number is nothing fundally all that much has changed even though we have seen the violent activity happening in those segments of the market. therefore, the fed is a way long way from doing anything on poll see. you would need 25 months of job gains like we saw to get to full employment it seems like the economy is on track. all of that points to a margaret that can stay in range the s&p did trade the lower end of the range since february. >> michael, do you think rates now pause and that allows equities to rally or not >> interesting question. encourage today.

you had the positive jobs regard report oil continued to be strong, following in the footsteps of the opec decision yesterday. and you really didn't see the ten-year rise, right i mean just by a little bit and it really fell for most of the day. and i think that's what drove the equity markets higher and higher throughout the end of the day. i wouldn't say you are out of the woods yet. i think it's right there is probably a pause but i think the rate regime probably continues upward as you get closer and closer to the reopening. that probably continues this same trend narrative of the more cyclical side doing well and even though i think we saw a nice rebound in tech and health care and nasdaq type of stocks, they have still got some work to do, i think. they have fallen below support and one day doesn't make the trend, you for example get back on firm footing quite yet. >> nasdaq is about 8.8% off the

52-week high or the record high. s&p is only 2.75% away from a record high, gina, which puts it in perspective it felt a lot bumpier, but those numbers don't look all that bad for a lot of investors who were saying we are ripe for a correction. >> no. in fact, if you look across the sectors you know it was very easy to think there were certain sectors that looked wildly overvalued because you had such a weak earnings cycle in 2020. but tech was a great example they were growing at 33% earnings per share growth in 2019 then in 2020 they were the only positive grower at 6%. but it still made them look wildly overvalued. if you look forward they are still expecting to clock at least 24% growth in 2021 which is twice its long term average. this is actually still not that overvalued i think at some point there is going to be a place where it is fairly valued, and investors take a step backand say, this

is still a good trade. >> let's get to bob pisani for a look at the biggest movers during the course of this very volatile week indeed, bob. >> wilf, this was a very strange day. a 120-point move in the s&p? the market really doesn't know exactly how the read the interest rate scenario that's the moirmgal mover of the market mike's absolutely right on that. let me show what you a rough week it was for kathy wood the main arc fund arkk is now down about 25% from its recent highs, but it is a tough week overall for tesla, square, roku, teledoc health she drove these stocks up and there is a up move and a down move in the last couple of week as interest rates moved up remember, february 16th was the top for the markets. that's when interest rates started moving up. elsewhere, other sectors like on line retailers had a rough week. good reason. chewy and stitch fix are not

even profitable yet and they have had huge run-ups. etsy is trading for 60 times forward earnings there in a high interest rate environment when they start moving up high multiple stocks get hit. none of this is ill logical what's going on with some of the online retailers a better way to look at the tech correction is how far off the 52-week highs we are on the mega cap tech stocks. paypal is 20%. they were all at new highs a few weeks ago. up individualia off 20%. apple is 17% off the highs very important to keep an eye on the fact this is still largely a tech correction. the nasdaq 100 down 10% from its recent highs, actually 9 it rallied going into the close. but we had reopening stocks, the rotation we have seen helping out. the dow is only 2% and the transports are only 1% off finally about the yields that's why the market was so

difficult to read today. it couldn't figure out where the ten-year yields were going the debate is do we move to 2% on the ten-year or does it stop at 175, 1.6% i talked to some traders who feel if we go to 2% we could have another 10% leg down in the big tech names that's why the market can't figg figure out what's goingan because it doesn't know what the clear trend is, do we stop her or go to 2%. back to you. >> bob pisani thank you for the summary. the big winner of the week michael skin is energy it has been the big winner year to date. can it continue or are we going to have to talk about the cyclicals, particularly energy taking a pause themselves soon >> that's a good question. i say it continues and i think people are underweight to this sector for a lot of reasons but it is hard to fathom that the best performing sector in the s&p can only be 4% of the

total s&p weighting. the opec meeting yesterday was obviously a positive surprise. there is still a lot of supply constraint and capital discipline here in the u.s obviously we are going to reopen and have higher demand so i think there are a lot of people who have not really done the rotation fully yet they have been reluctant to. they may have concerns about esg for another example. so i think it has a lot more legs but i think it is important the keep in mind that year from now, opec is most likely going to be fully back on line with capacity so as they meet each month, they will be deciding whether they are going add more products to the spigots. i think there will be puts and takes. generally people are underweighted in, in it is the best performing sector, i am expecting that to continue. >> finally, mike, there was a lot of angst yesterday after fed chair jay powell refused to really budge in terms of any policy changes or didn't seem

particularly concerned about the rise in treasury yields and whether he had the markets 's bc as he tends to what's the conclusion, that if powell isn't concerned investors shouldn't be as well >> i think that's the conclusion i think if we saw treasury markets panicking and squeezing yields higher you might have seen unease that perhaps the fed is willingly intending to be behind what the market perceives to be the proper curve i think you can lack out and see indications there is a first rate hike out in the next couple of years that's sooner than powell would say he intends to. basically everyone is saying you have $1.9 trillion in fiscal stimulus coming in an economy that's gaining pace, we don't see the fed's assumption being legitimate for a long period of time but for now they are fine because the bond market seems

settled at the moment. >> we will leave the market zone discussion there for today gina, michael, thank you both for joining us amc shares meantime are up nearly 300% this year because of the reddit trading frenzy. up next, ceo adam aron on the stock's wild moves and whether they will need the raise cash. plus, saks ceo

movie theaters in new york city reopening today after being closed nearly a whole year due to the pandemic. there will be restrictions in place, including limiting capacity to 25%. requiring assigned seating, masks, of course, amc is one of the theaters set to benefit from the reopening. the stock has been a huge beneficiary of the reddit retail trading frenzy rallying more than 200% this year joining us, amc entertainment ceo adam aron. welcome back boy, did we have a lot to talk about. >> hi sara and wilf, nice to be with you >> my question on new york city, adam is whether you are going to get major movies new york and l.a. have been closed that's been -- obviously, those are two huge really important markets. new york only at 25% capacity.

l.a. still closed. are you going to get big-ticket items, movies? >> yes look, today is such a great day for amc. across the country, as the largest movie theater chain in the united states, about 90% of our theaters are open. but nothing is more important to us than opening in new york and los angeles. we are opening in new york city, 13 theaters tonight. 29 theaters in new york state will be open tonight our theaters in new york city has been closed as you said for 50 1/2 weeks just to show you what it means to have pent up demand, across the 500-plus theaters that are open this weekend for amc, two of the three biggest theaters in the cub with advanced sales are in new york city seven of the top 20 theaters in the country in terms of advanced ticket sales are in new york city we think new york is first, but we think l.a. is two, three,

four weeks behind. what that means for us is a lot of new movie titles are coming out. i could rattle off a long list of major titles that are coming out real soon. >> let's talk about the reddit retail trading phenomenon, adam. i don't think we have had you on since that happened. what was that like, to watch your stock price spike as it became a meme stock, number two, right under gamestop and do you embrace it? >> well, look, obviously there has been significant volatility in our share price i am aware of what's going on. but my focus has been on managing our business and driving the recovery of our business what i find so appealing about this reddit phenomenon is the affection and allegiance that americans have across the country to amc, to movie-going, to seeing movies at theaters

you know, you are seeing millions and millions of people rally behind saving amc. >> do you think that was their motivation, adam >> i don't think it is appropriate for me to comment in great deal about the robinhood and reddit phenomenon. suffice it to say that when movies like rya opening this weekend, paramount's a quiet place two. moving into memorial day weekend, sony bringing peter rabbit earlier into may, top gun two, going to chrissen the fourth of july weekend the latest fast and furious installment. you know, there are so many movies that are about to break, so many studios pulled movies from 2020 and delayed them to 2021 they are finally at hand theaters are opening titles are coming.

and perhaps most important of all, we have got vaccinations happening all across the united states add that all together, add that to the safety protocols that we put in place in our theaters, i actually see good times ahead for amc. >> have you, though, adam, raised more cash than you would have otherwise done or raised more cash than you even need because of the artificially inflated share price because of the reddit frenzy? >> so the incredible irony of all this is that between april and january, amc raised about $2.2 billion of cash another $1.5 billion of concessions from lenders and landlords. and of that $2.2 billion of cash that we raised, 99% of it occurred before the so-called reddit rally

are we done raising cash we haven't decided yet we know we have got enough cash in our bank now to last a long time if we see even a partial recovery of the movie theater industry this summer that's what we expect thanks to movie titles and vaccinations, and safe, clean theaters >> well, no question, it also helped you slash your debt load by $600 million, adam. so it was helpful in that sense. the bigger question, though, is, if this fades, the retail reddit rally, if they get out of stocks like this, and if it's a really slow road to recovery, what is the long term picture for your business and for your industry >> well, the way i have lived since last march when we went from having $5.5 billion worth of revenue annually to no revenues at all -- long term

planning for me has been a week from thursday. and we have been fighting for the very survival of this company. as you know, five different times we were within six to 12 weeks of running out of cash but look at what we have prished. we raised over $2.2 billion in cash here we are. and we are open. and we are poised to see the vaccinations occur, poised to see new titles hit our screens, poised to see movie-goers come back to our theaters if we can successfully drive a recovery in our industry then i don't think we have anything to worry about for the long term future. >> why did the chinese sell out, adam >> actually, the chinese -- the chinese. you are referring to our largest shareholder. >> wanda. >> which is wanda. wanda has only sold 2 million shares to my knowledge in the

past two years what occurred with wanda is that they agreed that for the survival of this company, which they thought was of vital importance, this great, proud american company, 100 years old, that we needed to issue more stock to raise cash. so they were diluted down. but they still own -- i think it is 44 million shares and they are the largest shareholder of amc currently but whereas they owned 50% of amc six months ago, they own 10% of amc today >> got it. adam aron, thank you. >> thank you >> we appreciate it. on a big day for amc. up next, mike santoli looking at the huge increase in stock issuance because of the spac and ipo craze and whether that could be another head wind for the market. plus, charles schwab chief

investment strategist liz ann sonders is back to tell us how you should be positioning your portfolios amid the rising rate fears. ♪♪ for skin as alive as you are... don't settle for silver 7 moisturizers 3 vitamins 24 hours hydration gold bond champion your skin

want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. stocks rallied into the close today. let's get over the mike for a look at supply and demand in the market mike, what are you looking at?

>> whistle, there is a ton of new equity supply the mark has had to digest for a while. we look at the quarterly score card once in a while of the it shows all kinds of different equity offerings this is first quarter to date. we have three weeks left this is goc to exceed the second quarter of last year, a lot forced equity issuance to make it through the pandemic. this is remarkable it is about half a trillion dollars so far since a year ago that have been raised. net inflows to equities have not been that much that's why you have the supply head win it has been felt a little bit in the spak etf and the ipo etf essentially you have seen them decline a little bit here. it is a reset and maybe you have to winnow around the new supply. however if you look at the broker dealer index, the underwriters have held up just fine right now by the way next week a big supply we have huge ipos, row blocks and cushion uble from south

korea. >> is it right to think once it passes we might see a bit of a bounce >> yes, but usually the market chokes on the supply when these booms end. it may be going on right now but we will see if it slows the pipeline a little bit. absolutely if it ends things then you would bring things more back in ball pans. >> mike, thank you we will have more on the spacs when we are in bjoedy the ceo of post house capital coming up later in the show. ♪ ♪ ♪ ♪

and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress. firstnet. because putting them first is our job. ♪ if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances- designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right. ♪ ♪

will there be an ev for me? ♪ what about me? one for me? you mean us? what about me? and me? how about us? yeah, how about us? great question. wait, can i get one in green? got one for me?! hey, what about me? what about us? is there an ev for me? ev for me? us? what about me? me? for me? ♪ ♪ (dog whimpers) these days, it's okay to do some things halfway... but taking prescriptions shouldn't be one of them. so cvs has a proprietary search tool that looks for savings. plus free delivery. get a free prescription savings review at cvs.

stocks clouds near the highs of the day after a volatile session. the dow and s&p 500 finished the week higher. but the tech-heavy nasdaq posted its third straight weekly loss closing down around 2% for the week joining us now, liz ann sonders of charles schwab. thank you for joining us. >> my pleasure nice to see you, wilf. >> today's rebound intraday, do you think that mark this is the short-term the end of this pullback or is there more to come >> maybe not we are really in a churning phase right now. i don't mean that just with the use of the term generically when you look at indexes like the high le #low index and you see that a bunch of stocks are making both new highs and new lows simultaneously. that's a sign of church churning and tends to persist longer than

what we have soon so far we didn't get the nasdaq into recovery territory we did on the day. i think there is a bit more valuation reset that has to occur among some of the really lofty multiple parts of the market obviously, driven by the move up in yields. >> we have been focused on tech for obvious reasons during the last couple of week in terms of what's right for a pullback. are some of the cyclical sectors looking a little overbought now as well? >> so i think there is a difference between maybe technically overbought areas possibly within financials and energy that have clearly been at the heart of some of these leadership surges, especially since early november, which was in conjunction with the start of the positive vaccine news. technically you might be there but from a valuation aspect i don't think that's where the

heart of the multiple is and the spike we saw last week in yields it is a question of whether you are focused on technicals if you are looking to take profits, multiples or recent price strength those are three buckets. there can be some overlaps but it depends on when your bias is in terms of what is driving some of the profit taking >> liz ann, what's the advice right now. >> you know, given how rapid some of these moves are, you go seeing really wide disurge approximatence among sectors, best performing sector to worst performing sector on a mul week or monthly basis i don't think investors should try to anticipate what the next short-term trend is going to be, but do more portfolio or volatility-based rebalancing a lot of investors rebalance based on the calendar, they

might do it annually or quartly. but to the extent that you can do it, let your portfolio on a shorter term basis drive where the rebalancing occurs and then it forces us to do what we are supposed to do, add low and trim high. but stay in gear by effective will he reacting to what the market is doing. i don't mean chase what the recent hot area is but force yourself to pare back where you get profits not short-term and add and try to stay in gear. that's the best you can do in this very choppy churning environment. >> is the key for next week what the long ends of the yield curve does, and if it rises more than expected again, will that spook equity investors >> it depends on the mix driving the move higher in yields. it's you know a combination of growth expectations and also inflation expectations on a 5-day rolling basis we did just see the krlgs between

treasury yields and equities go into negative territory but i think a slow move up in yields unlike the spike we saw mid last week which was driven by technical factors and the weak seven-year auction if it moves into slower fashion and it is more on the growth side and less on the inflation or inflation expectation side that's not necessarily a bad environment for equities but if we start to see the opposite of that, and the pickup in inflation starts to exceed the outlook for growth, that's when you tend to get into negative territory for stocks. it is not so much the level. it's the speed and the mix. >> liz ann, thank ou liz ann sonders, charles schwab. good to check in with you. luxury retailer saks 5th avenue spinning off its on line business whether it to be headed to wall

street. a look at some of the stocks that recovered this week's losses energy at the top of the list. we'll be right back.

welcome back time now for a cnbc news update

with rahel solomon >> hi sara hello, everyone. president biden says a recent job gains are not enough and that too many small businesses are closing. he's urging the senate to pass the covid relief bill and stoke economic growth. >> rescue plan, these gains are going to slow. we can't afford one step forward and two steps backwards. we need to beat the virus, provide essential relief and about the financial recovery peoplette need help now. >> arizona has become the latest state to end capacity limits for business the governor is leaving in place the state's mask mandate west virginiaia also lifted capacity lilts on many businesses as well as social distancing is maintained sneader heads take note. these aren't just any wear of

original air jorns up for sale they were sign asked worn by michael jordan during his rookie year bidding has topped $400,000 and the auction ends tomorrow night. sara, if anyone at home has a cool half a million dollars to spend, there you go. that's one option. i will send it back to you. >> that is high, even for sneaker heads who pay a lot of money on the resale market thank you rahel. up next, the cnbc spac 50 index actually turning negative for the year we will dig in on the major spac slide we have seen this week with the ceo of post house capital. "closing bell" brack we'll be right back we made usaa insurance for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it with hassle-free claims, he got paid before his neighbor even got started.

because doing right by our members, that's what's right. usaa. what you're made of, we're made for. ♪ usaa ♪ so you're a small business, we're made for. or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. it all starts with an invitation... ...to experience lexus. the invitation to lexus sales event. lease the 2021 is 300 for $359 a month for 36 month's, and we'll make you're first month's payment. experience amazing.

stocks closed near session highs today in what is a volatile day and week of the market the spac 50 index recently turning negative for the year. is the bloom coming off the rose for spacs? that's the question. let's bring in jackie reesis what's been your involvement in the spac craze from where you sit right now? >> yeah. so let me give you perspective on what i see happening. i have been involved wit several spacs that have been successful to date we are seeing a material dislocation in the spac market

and i don't expect to see 30 spacs price in a week in the way that we had seen at the end of february where i think it reached an all-time high i don't think it's a bubble bursting, though spacs are absolutely here to stay as an asset class but i think there were fundamentals going on in the last few weeks that drove some of the changes in the market i can walk you through that. let me give you a few reasons of what's going on. first there was a 50 basis point increase in rates in the last two weeks. we had a zero percent interest rate interest environment in the past that's a big change. we also see business conditions are off over the last week spacs had the benefit of being valued on long term cash flows it is basically the reason why you see so many targets skewed

toward higher growth and long term growth getting executed this the market. many of these businesses are preebitda n. an interest rate environment adjustment that just happened, these are going to impact ecfs as earnings are skewed towards the back half of valuation. finally, outside the spac market there is an expectation of inflation increases. you all have been talking about it on this program. >> right. >> that's been driving a rapid transition from growth to more traditional businesses in the market overall, these trends are creating a significant pause with institutional buyers. >> all makes sense, what you say. so if it's not a bubble where everybody burst asks there are some good ones in there, how do you pick that? how do you pick a good spac from a bad spac if your retail investor when we keep hearing that some of these companies don't have to do all the due diligence that you would necessarily get in an ipo and when you are in an environment with rising rates and growth companies aren't as in demand?

>> you know, there are 338 spacs outstanding with $110 billion in outstanding capital. it's an extraordinary population of interesting companies i think if i were an investor, i would be very selective. i think banks are seeing that transition today as well where they are not focused onnd writing a plus teams and the teams that are b minus, c plus r probably not going to get underwritten while the public takes a pause and has a moment of digestion for some of the spacs in the market having said that, spacs are still really active in the market there are great companies, active deal flow's happening so there is an extraordinary amount of activity what we saw last year was $95 billion of issuance. most happened in the second half of the year. so they still have two years remaining. 85% of that capital at least 20

months remaining there is plenty of time for investors to see good deals, to make distinctions between what kind of spac sponsor they want to back and who they don't. >> i wanted to ask you a broad question about fintech clearly it has been a great couple of years for the likes of square and paypal and their share prices prove that. i wonder whether you thought there is more gains to come and this is going to be their decade or whether in fact they are going to face a fightback from traditional banks being more ready and nimble on the tech front or other players like walmart with the news of the last week. >> yeah, and it is great news. i think walmart has an amazing opportunity ahead of it because of the scale and physical locations they have across the country. having said that, i do think technology is providing solutions that are meeting the needs of consumers and businesses but today there is only one and a half trillion dollars of

capital invested in what i would call fintech companies and there is $60 trillion of capital invested in traditional companies. interestingly, over 50% of the market cap of banks are over 50 years old. so i do see a wholesale transition over the next ten years from that very small chunk of fintech market cap the really taking over and revolutionizing banking. and i think it is simple, which is customers prefer simple, easy solutions that abstract away complexity and today i don't think banks are meeting that need. you can see it with nps scores of banks versus fintechs and i think banks will see a lot more competition and have to respond in a way that meets the needs of consumers whether that's speed or availability or even just simplicity of language i think that's where the pressure is really being placed

by fintech on the banking industry. >> jackie, great discussion. thank you for joining us. thank you. up next a retail shift saks spinning off its website into a separate company we will speak with the ceo about what drove that decision and what the company expects for 2021 walmart just announcing that former at&t randall stenevson has joined the board the stock finishing the day up 1% we are now going to break. ♪ ♪ ♪ ♪ ♪ ♪ i knew about the tremors. but when i started seeing things,

i didn't know what was happening. so i kept it in. he started believing things that weren't true. i knew something was wrong, but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia related psychosis. and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your healthcare provider about nuplazid.

up next, saks shake up the luxury retail landscape by spinning off its e-commerce business next week we will try something new at 6:00 p.m. while jim cramer is off. it is called on the edge sharp opinions, the hottest takes and fierce debates about the big players and news in the world of business. it kicks off at 6:00 p.m. eastern time on monday you don't nt twao miss it. it will be expertly put together

dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

hbc, the owner of sachs fifth avenue say they'll have a separate business after raising $5 million he's set to become the ceo of the new digital company jiensd us now mark, good to have you why are you making this move right now? >> great to be here, sarah

listen 20 years ago, when lucky first landed on the internet, the stores like us and some of our competitors, we were or companies. you could invest in stores or you can invest online. today with our ability to separate and capitalize differently, we become a brand that is an end brand the stores can be focused on and we can invest in the digital company. so end is the answer. >> does this mean the end of the omni channel where everything was interconnected between the stores and the online business >> no way. it's actually -- it's the beginning of a new waif doing it i think we've broken the mold today. when you think about it, that's the difference sax has the sacks.com with the stores and anything the customer wants to do.

exchange, return, get something altered that they bought at sach's they can have access to the sachs.com and the buyer will benefit from it. >> why not sooner? >> why not soon oar? >> yeah. >> look. this is a couple of steps you have to take and now is the right time we're poised at the precipice of saying ok, it's about too triple over the next few years, number one. number two, you have this digital need of consumer, aging into wealth, ageing and wanting that aspirational. this is the right time, so this is what we wanted to do. >> what are the plans, mark, for this new digital business. is it to go public, on its own you're raising capital and

coming off the time where digital commerce is where all the action is. what's next? >> what's next is the consumer what's out this is growth, growth, growth the amount of customers out there for snks ach's today, it's more expansive than it's ever been the rest of it is going to come if it comes. as consumer, growth, experience, and of course driving that top line >> mark, more broadly, the u.s. consumer and the outlook for the rest of this year, are you optimistic and do you think luxury will benefit from bills being passed or is it tied to the reopening? >> i look at it as the go out and travel businesses. once people start engaging with going to work, going to travel, we're going to be rights there luxury has performed exceptionally well

we've talked about it on the show it's performed very well throughout the pandemic. >> what's going to happen post pandemic, mark, to the trends in fashion and to the habits in the way we buy is it changed forever? >> i think it's forever changing i call at this time next normal. it's going to go over time it's very exciting trends we see in fashion and customer trends. whether it's digital, all these things we've seen over the last few years that are accelerated through covid and we're going to see it coming out. that's the good thing about fashion. it's always going to move. >> thanks for joining us >> thanks for having me. >> we've got some breaking news on a cyber hacking details on is that >> yeah, that's right. we're getting new numbers about

a hack we learned about earlier in the week. microsoft put out details about some julier in abilities in exchange server software urging people to close that up. a number of entities that were impacted by this apparently -- apparent security flaw, reporting that many as 30,000 entities inside the u.s. have been impacted by this security flaw in the microsoft software so that's a big number krebs reporting that this is a mix of business and governmental entities here. what's more alarming, they're saying, is this is being done by an apparent chinese state entity the chinese hacking group thought to be responsible here has seized control over hundreds of thousands of microsoft exchange world wide with each victim representing approximately one organization that uses microsoft exchange to

process e-mail so a significant size and scope here to the hacking attack once again we're seeing an allegation of the hostile nation-state hitting american business and government entities and there's enormous frustration, i can tell you, on the business side, people feeling like we're just outgunned here we can't fight against the nation-state entities. they've got more money to throw at this problem than we do but 30,000 entities impacted in this one back too you >> it's so huge. hard to contemplate. thank you to that upset. >> sure. >> as we look ahead to next week in the markets we're coming off a bumpy week the nasdaq went out with a decline of 2%. felt a lot deeper at some point -- well, it was deeper we're about 9%, little less than that,off the recent highs for the nasdaq what comes next?

is it all about treasury yield >> it could -- if there's a dramatic move in treasury yield, yeah, that's probably going to dictate some of the action i think in the absence of that, if yields are calm or trending gently, i think it's much more about it was today's reversal. we saw the semiconductor stocks up 5.5% to the close i think the nasdaq has nor repair to do out there but some of the more speculative parts of the market could have gotten that big flush and would be less a toggle between growth or value from here on out. >> exxon and tesla have a 23 content price performance difference last week >> i do think that maybe fever is on the verge of breaking. it just could mean it's a little bit less of a sharp line between

those extremes of all value or all growth we've seen some of that maybe overshoot that a to some degree. >> looking at it next week wie got an all star lineup as we mark a year for the pandemic we'll talk to ceos don't miss our first cnbc with ark, ceo cathi wood. we are out of time here. this show, thanks so much for watching "fast money" starts now. >> i'm melissa lee and this is "fast money. steve grasso, won win, pete najarian the chart master says it's time to pull the plug on the energy trade. big winner a handful of names breaking out in today's rally should you stick with that's trades later,