but just the speed at which the 10-year yield has moved. we started this year at 0.9% and now at just around 1.7% so that will be a big focus for this market, ty. >> have a great weekend, seema great to be with you we'll see you all next week. thanks for watching "power lunch. sara and wilf are right along with "closing bell." tyler and seema, thank you both very much happy friday welcome to "closing bell." i'm sara eisen along with wilfred frost. dow down 11 points let's look at what's driving the action another leg higher in yields putting a chill on sentiment, although tech is in the driver's seat facebook, chip stocks rallying cyclicals are lower for a change peloton, zoom, airbnb all moving higher and a push and pull in vaccine headlines. acceleration in the u.s. but lockdowns abroad major indices set to end the

week lower nasdaq outperforming, though small caps are the biggest loser on the week, down 3%. >> the dow is down a little bit, the rest is higher ahead today, richmond fed president thomas barkin joins us for an exclusive interview after news surrounding the future of a pandemic aera bank rule. later, will stimulus checks lead to another surge in retail trading? we'll ask the ceo of robinhood competitor the s&p is up 0.3% today, down 0.4 for the week, mike. >> it's a market of offsetting currents, maybe swirling currents out there it's really kind of push/pull between certain parts of the market based on what yields are doing and benefitting others it's netting out to not much of a move, down a little bit than 1% on the s&p 500 but a couple of percent off all-time highs.

internally there's been a little more correction in the growth areas. we've not done any damage to this immediate trend a lot of folks were looking at levels just below 3900 on the s&p, 3870, let's say one thing that is maybe giving a little more of a frictional feel to this rotation, take a look at some real bellwethers of the mega cap tech or growth trade and of course the financials and cyclicals trade. you see this inverse action we've seen especially in the last month or so with apple and jpmorgan chase now, this rotation looks very seamless apple sells off, jpmorgan goes higher but that was jpmorgan when apple was at its highs at 140. when apple goes down here and jpmorgan is in the 150s, it's just a little bit of a different lift to get those value sectors working. it's really just a small, binary

trade to illustrate why this rotation maybe has gotten a little bit stretched or the energy has come out of it just a little bit in the short term take a look too at what has happened we are right now at the best 12-month performance for the s&p 500 since at least the 1930s we're pushing an 80% gain from the march 2020 lows. we hit the anniversary of that of course next week. these lines right here are the previous times when the 12-month return for the s&p was above 50%. and so actually this is 1980 that's a typo. so this one is 1983. here is the late 90s and early 1998 we did get this 2010 i keep saying feels like a 2010 type market coming off that major low in '09 what you'll see is none of these lines were at a major market peak, but there always was a little bit of a payback or sideways coming shortly thereafter or not too far thereafter so in other words usually the market slows down a little bit,

usually we have this digestion i think that's just sort of a way to set expectations after this amazing year of the markets. >> people are like, wow, i've got some such gains on a 12-month basis i might as well take some profits in the same way when we get to june we think my banks, my energy is not up that much anymore. >> if you're a long-term asset advisor or allocator, you're going to assume there's going to be mean reversion in returns but buying power gets exhausted in the short term and you basically have valuations that get a little bit out of hand and have to get reconciled with the fundamentals, so a lot of those things i think do happen a lot of this happens off of a major low. like 1982 and 2009, although the late '90s broke all the rules because that was an acceleration from an already strong market.

>> mike, thank you very much mike mentioned jpmorgan. let's talk more about the banks and that development from the fed and the rule change earlier today. after an initial flurry of excitement this morning for both yields and bank stocks, things did settle down during the session. the kbw banks index now down about a percent or so having been down much more than that around the open. the fed announced that the special exemption from the slr, the supplementary leverage ratio, that banks had enjoyed due to covid relief would indeed expire at the end of march and not be extended as some had thought. the slr requires banks to have capital equal to 3% of their assets or 5% for the largest banks. it's basically one of the most stringent part of the annual capital tests and requirements last year's rule change for covid meant that treasuries and cash kept at the fed didn't have to be counted as assets, there by lowered the capital restrictions and requirements that had to be held against

assets richard ramson described it as a modest negative versus expectations, though doesn't think it changes banks' behavior much even in a worse case scenario hits eps by 1% to 3% for the biggest banks. jpmorgan is the one likely to be most affected but can easily rectify pressures by reissuing pressure shares or slowing deposit growth to reduce asset growth one factor that softened the blow is that the fed said the board will shortly seek comments on measures to adjust the slr. nothing is set in stone there and it's possible there will be long-term changes to the slchlt r which banks might welcome in due course sara, yes, jpmorganis down 2.9 and the kbw banks index down 1.4, slipping a little in the past half appear hour but they have been unbelievably strong of late so keep it in that

perspective. >> i think this has been politicized, right senator elizabeth warren, especially the democratic senators like elizabeth warren and sherrod brown, have been against this part of their argument is that it constrained lending is there any evidence to that? is there merit to that did that make this even trickier for fed chair powell to make a decision because they were getting that kind of pressure? >> it's not clear that it's a one-to-one that it would constrict lending. what's going on and one of the reasons that they did offer this relief in the first place is between quantitative easing and huge treasury issuance there's a lot of reserves being created that sit within banks. it's kind of like deposits and cash having capital be put up against it that in itself will restrict lending. one reason the market did not get too overexcited or alarmed about this decision is apparently in the interim, a lot of the treasury holdings, for example, are no longer at the holding company level for the

banks. they have put it down into the subsidiaries they found work-arounds, in other words, to this point i think one of the issues was going to be and maybe will be what is going to be the net demand for treasury securities as we try to fund the stimulus and deficits from here on out. it's not so much that banks will elvis have to start liquidating things, it's a matter can we take down the supply as needed down the road. >> interesting, mike in fact the goldman sachs analysis did suggest that citi and bank of america will rectify things by moving it from holding company level down to different entities, whereas jpmorgan might have to do a little bit more finessing but all fairly achievable one could actually argue the opposite as to whether it restricts lending or not but the general point that was part of that politicization is banks have rallied aggressively and benefited a lot from various measures not complete bailouts like last time but various measures. this is not something that we

need extended. so much has changed since november, whether you're talking general economic outlook, vaccination rates, all of those things, steepening of the curve. do we really need to keep extending more measures that help them make more money in the short term. >> and help them buy back more stock is another part of it, yeah well, we're going to talk much more about the fed's decision today and also the fed's decision on wednesday on interest rates and inflation when we speak exclusively in just a few moments with richmond fed president tom barkin the dow is down 105 points, the nasdaq, though, tech stocks and momentum are in rally mode you're watching "closing bell" on cnbc.

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it is still lower for the week this as the 10-year yield hits 14-month highs joining us for an exclusive interview is richmond federal reserve president, tom barkin. welcome back, president barkin, good to have you. >> thanks, sara, good to be here >> we've got to start with rising treasury yields we are going on eight weeks in a row now, started the year with the 10-year below 1% we're now at 1.75. i know you and other fed members have said you're not particularly worried about it because it doesn't look disorderly when would you get concerned about the move we're seeing isn't bond yields? >> well, i think market function would make you nervous at some level if you wouldn't see the treasury market functioning, you'd have some concern. most of the days it's increased. it looks to me like it has something to do with optimism on the economy, whether that's vaccine rollout or fiscal stimulus or higher inflation

expectations >> are you worried about it causing a disruption in the markets and in financial conditions overall places like the housing market which has really been humming along on lower rates >> well, there's a lot of momentum in the economy right now. i think we're going to have a very strong summer, a very strong fall as pent-up demand comes back in the economy, as vaccines roll out. i think the economiey is going be strong enough to take somewhat higher rates. >> you think summer and fall will be very strong. inflation will jump quite aggressively for those periods of time even if you think it's then going to settle back down afterwards >> i think we will see price pressure this year the first thing we'll see is the deflationary reads of last spring roll off. so the 12-month numbers will go up just because the baseline

changes. we had very strong price pressure in the fall so by the time we round over that, that will get normalized but you can't help but hear the supply chain issues people are having filling their stores. i really do think i'll speak for myself, you know, the desire to get back into the economy is quite strong and i think that kind of demand will lead to price pressure. as you suggest, though, the fact that we'll see price pressure over six months is not the same thing as saying we're going to see inflation over the next several years. >> president barkin, i just want to play for you a clip from chair powell's news conference just two days ago on this topic of inflation here's how he characterized it. >> inflation expectations are strongly anchored around 2%. we know inflation dynamics do evolve over time there was a time when inflation went up, it would stay up, and that time is not now that hasn't been the case for some decades

>> is that your view do you feel confident in saying that any inflation that we see rising will just not last? >> it's impossible to predict the future but what i think is there are these long-term disinflationary trends, think of them as headwind global access to labor and global access to product would be a good example. technology, which allows you to check prices on your phone is another example. the power of big retailers like walmart or home depot and their ability to negotiate strongly with people who might want to raise price. all of those things have been working against inflation. in addition to what the fed and other central banks around the world have done, which is stable and consistent messaging around inflation targeting. and that means, i think, that you've got very stable expectations i'd note that inflation

expectations have come back toward our target, but don't seem to be moving out of line in the markets. and as i talk to executives, they may see short-term price pressure but as i probe them on the your normal routine is a 2% increase in january, are you changing that to 4%, i don't hear them saying that. >> president barkin, you mentioned you're not worried about the level of treasuries. what if credit spreads did gap up they haven't yet, but if they did, would that be a worry for you? >> well, i have to say credit has been one of the really positive stories of this economy. you might expect in a normal downturn significant upticks and defaults both in personal and commercial we certainly saw that in 2008. you just haven't seen that the same way now to me credit spreads ought to be related to credit performance. so far i'm encouraged. >> just for those, president barkin, that see the federal

reserve estimates for growth going to 6.5% this year, which was above consensus and a really good, strong story for the u.s. economy and inflation going well above 2% and wondering why isn't it the time now to be talking about tapering the emergency stimulus that's in the economy, what would you say >> well, we've given very clear guidance that's in line with our new framework. you could play another tape from chair powell that has to do with maximum employment, it has to do with hitting the 2% inflation target in a sense that you could moderately overshoot for some time in an effort to return expectations closer to 2%. and when we hit those and similarly on asset purchase when we hit substantial further progress, i'm ready to taper and move rates but i'd like to do that when we hit those targets, which i hope and think we've communicated pretty clearly. >> i wanted to ask president barkin about the slr

obviously this morning we learned that the current removal of banks having to abide by it until the end of march won't be extended there was an interesting line that said the board will shortly seek comment on measures to adjust the slr is that just going to be applying to how you bring it back in at the end of the month or could that be long-term changes to the slr forever more? >> well, i think we took a bunch of extraordinary measures a year ago. many of them are now -- it's time to wind them back as the economy comes back and you heard my forecast for the rest of the year you saw we have facilities that are winding down at the end of the month as well. my take on the release is it's a longer term look at the slr, ranan the question as we operate, we're the outlet for where reserves are and it wouldn't be appropriate for some of those to be held in more increased levels

by banks but that's something i think we're going to go out to comment from as the statement says. >> i want to dig into your forecast a little bit more i know we're not supposed to pay too close attention to the dots, but the dots are out there an increasing number of fed presidents and fed officials do expect to start raising rates next year. is that you? >> well, i expect to start raising rates when we meet the conditions that we've talked about. and my personal forecast has a very strong year this year it has unemployment coming down, you know, somewhat slower than the strength of the economy because i think that labor force participation is going to increase, we're going to bring people back into the workforce as i said earlier, while i see inflation and price pressure being strong this year, i don't see that yet as a strong multi-year phenomenon so there will be some creep back. when those conditions hit is

when i want to increase rates. i'll just give you my view on the forecast is there's a forecast and then there's rates. there's not rates, then a forecast so i don't have a sense that there's a timing, there's a year, there's a month, there's a quarter that i'm thinking about. i'm trying to figure out what's happening in the economy, and when we meet that is when it's time to increase rates. >> how close are you watching yields around the rest of the world, which obviously have been even lower than here in the u.s. for the last decade or so, often still in negative territory. if they suddenly started to rise, one can imagine the delta when they do being quite significant. do you think it will pull u.s. yields higher? is that something you're potentially concerned about? >> well, if international yields rose, i guess i would hope and expect it would be because some of the struggles that they have had in terms of bringing their economies back would be behind them so i could see that happening as a very good thing. i have to say we're blessed in

this country, our economy has been quite vibrant, it's bounced back faster. i think our yields are actually a sign of strength, inflation expectations are stronger here than they are in places like japan and europe i think that's a sign of strength assuming that their yield increases were related to increases in their real economic forecast and a move of inflation back toward their targets, i think that would be a good thing too. >> what are you hearing from your district, the carolinas, d.c., virginia, west virginia, the fifth federal reserve district what do you hear as we're about to get another $2 trillion in fiscal stimulus in relief from covid. >> first of all, great relief that vaccines have been rolled out and are being administered and you can see in all of these states us moving down the progression. and so i just hear a lot of optimism about the future, because once you have people you know and friends getting those

vaccines, it just seems like the back end of this gets closer and closer i've talked to retailers even this week who have seen the impact just in the last couple of days of the stimulus checks, particularly low to medium end retailers who have seen money coming into the economy and coming into the economy quite strongly i think as retailers and restaurants, movie theaters i saw today, you know, reopened across the country, i think you're seeing just a real sense that that spend is going to be strong there's tightness in the labor market that's been true for the last several months, in technology, health care and in manufacturing and construction but even the people in hospitality are nervous about whether they're going to be able to find enough workers to get back to the capacity that they project. the folks who, of course, i'll call it the least confident are those who are dependent on businesses getting back to work and dependent on business

travel that's probably going to lag still somewhat, but i hear a lot of optimism in our district. and even those business organizations, they're starting now to have those conversations about coming back and how's it going to be. it's all starting to feel a little more proximate. i think it's a promising time. >> tom barkin, thank you very much for coming on and sharing president of the richmond fed. we appreciate it. >> glad to be with you thanks for your time we have 35 minutes left in the session. we are well off the session lows, of course. still in the red for the dow but only down 120. we were down 350 at the low. coming up, facing reality. mark zuckerberg weighing in on the upcoming privacy changes to apple's operating system which could have a major impact on facebook's future. we'll tell you why zuckerberg remains optimistic. as we head to break, check out some of the top search tickers. 10-year yield once again on top, followed by tesla, apple, linde

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welcome back upcoming changes to apple's operating system could have a major impact on facebook's advertising revenue, but ceo mark zuckerberg is making new bullish comments about the privacy update julia boorstin has that story for us hi, julia. >> well, facebook is taking a new tack in its battle with apple over its operating change. that will ask users if they want

to opt out of being tracked. facebook saying it could end up helping its bottom line. yesterday in a clubhouse interview, mark zuckerberg saying a lot of these changes are going to make it harder for small businesses and developers. now, facebook has said that if they can't use data from tracking, advertisers will generate 60% lower sales based on those ads in a twist zuckerberg said this could end up helping facebook because of its investment in e-commerce, saying, quote, apple's changes encourage more businesses to conduct commerce on our platforms by making it harder for them to basically use their data to find the customers that would want to use their products zuckerberg announcing that facebook already has more than a million active shops with more than 250 million people interacting with shops every month, so that's a sign of their investment there now, along with spotify ceo daniel eck, zuckerberg did criticize the fees that apple charges, saying they take a bigger cut than what facebook

takes. guys >> julia, speaking of, we've got to talk about this instagram version for kids i know the company is going to face a lot of criticism for targeting a younger demographic under 13 years old, but i actually think it could be good. if the kids are going to use it anyway, at least they should use a safer version. tell us about it. >> sara, that's exactly their argument that's exactly what the ceo said he tweeted out confirming this report he said kids are increasingly asking their parents if they can join apps that help them keep up with their friends a version of instagram where parents have control like we did with messenger kids is something we're exploring. we'll share more down the road sara, you're absolutely right. they figure if kids are going to try to skirt the rules and get on the app, they'd rather they do it legally. of course there are hurdles and parenting groups and parents that might not want their kids to do this but there are already risks of bullying on different mobile platforms and digital platforms

and these are all things that facebook will have to deal with when they're dealing with the under 13 set >> agree parent control is key. julia boorstin, julia, thank you. if your kid is going to use instagram, wilfred, at least you should control. >> it social media in general for kids has to be appalling i think controls are a good idea but people would just move on to other platforms i'm sure anyway, one of the great battles of the generation. we have 30 minutes left and we're up 0.2 of a percent on the s&p, down a third on the dow nld athe nasdaq leads the charge up 0.7 today rebounding from some softness earlier in the week webbush upgrading starbucks from neutral saying it sees more upside and long-term visibility. earlier today the starbucks chair mellody hobson weighed in on the covid recovery and where she sees starbucks' business going from here.

>> do expect this economy to be very strong coming out of covid. we've been calling it the roaring '20s like many others. we also think this will be a very robust period for growth. >> starbucks' shares are down a quarter of a percent or so. deutsche bank is adding molson doors it likely caused disruption in molson coors operation the stock climbing and is just about in positive territory. 28 minutes left of trading time now for a cnbc news update with rahel solomon. >> hello, everyone talks have resumed among the u.s. and china officials in alaska both sides are accusing the other in grandstanding and showing little interest in meaningful dialogue. the house of representatives holding a moment of silence calling on everyone to remember the eight people killed at three atlanta area spas earlier this week. in texas police are looking

for a man who stabbed a fast food worker after being told to put on a mask. it happened at a jack in the box near houston the store manager was hospitalized with three knife wounds but as since been released. and in connecticut, most businesses are enduring their first day in about a year without capacity limits, though distancing restrictions do remain and connecticut is not alone. get the latest on all the state reopenings tonight on the news with shepard smith sara, i'll send it back to you. still ahead, our weekly doctor's appointment dr. scott gottlieb will be here to discuss the growing debate over whether vaccinated americans do still need to be wearing masks. as we head to break, a check on bonds for you. yields, the story of the week. the 10-year yielding around 1.73, got higher than 1.75 yesterday, but still eighth week in a row where we have seen rising yields. it's wreeaked havoc on the nasdq and stocks in general.

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we have 24 minutes left of the session. we are well off the lows and now down less than 100 points on the dow. the s&p is higher. the nasdaq is up close to a percent. after the break we'll take a look at the global economic recovery and what it all means for banks when we speak with former chief executive lord davis. later stimulus and stocks. we'll ask the ceo of webull if he is peing exctan uptick in trading as stimulus checks hit bank accounts. [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad.

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banks under pressure today after the fed said it will not extend emergency capital relief enacted during the pandemic. but the group has been on a tear this year with the kpw banks index higher by 24%. joining us with me is lord davis, chairman of letter one and former ceo of standard chartered amongst many other things thanks for joining us. >> nice to see you. >> the last decade whether we're talking european banks, asian banks, u.s. banks, could said to be a bit of a lost decade for

banks relative to other sectors on the stock market. do you think the next decade will be quite the opposite >> well, as chairman of letterone which is a long-term investing company, we see from a variety of industries we're involved in the impact of the digital revolution and that is affecting banks all over the world. you know, you look at the valuation of stripe, there's just so many new entrants encroaching into the banking industry i think, you know, with the impact of covid, the digital revolution is going to speed up. you know, i still see huge value in the customer franchises across the world, but increasing competition for the industry >> so will only the tech-enabled banks survive or grow their share price over the next decade and does that mean the bigger players are perhaps better positioned than the smaller players? >> well, i think if you're a

small player and you're technologically savvy and you've got a good customer base and you've got a modern workforce that really understand the changes going on in society, then you will do well. i think the challenge for the big players across the world is legacy systems, how do they handle that. but i think the other issue which is you've heard lots of bank ceos, i've been out of mainstream banking for over a decade, but i see it in letterone. the way in which you manage the culture of an institution has changed as a result of covid the way people work, the work life balance, there's so many issues that come out of covid, not just multi national but also banks. >> i have a question on that note wilfred pointed out to me the work that you did in the uk

starting in 2011 to get more women on boards and ended up doubling it in the years that you were there, but still i think at, what, 25%, 26% of the f ftse how do we double that number especially as big companies here in the u.s. are grappling with those questions, about how to include more gender diversity and racial diversity on their boards why is it not happening fast enough >> well, look, if you're a chairman, a ceo or board member of any company, it doesn't matter whether it's public or private now, and you don't understand the impact of the sg on your business, either the youngsters will leave your company or your customers will leave you as a brand so for me esg is a wonderful development. it's changing the way we look at capitalism as part of that, you have just got to be a diverse institution at the board table, but also

right across the workforce and i think one other challenge as a result of the digital revolution is that, you know, some years ago, you know, boards of directors, theyoungsters in a company would be looking upstairs for wisdom. and today, the boards of directors are looking downstairs to the youngsters to see exactly what's going on in society, because it's so fast moving. so it's not -- diversity and inclusion at the top of a company isn't just about ethnic diversity or male and female, it is generally also about ages and i think that's quite a challenge for boards >> a good chance to ask you about one of letterone's big investments in l1 energy gas company. do you see that as a strong decade ahead it's in the short term been rallying pretty hard

how do you square that with a strong view on esg >> well, i think we've made a declaration on being net zero by 2030 and getting rid of flaring, et cetera, and we're also in new clean forms of energy. so i think the oil and gas industry will continue to be an important part of energy sources, but they have got to modernize and they have got to -- you know, climate change right across the world is now one of the issues of the day you know, inevitably oil and gas and oil and energy companies have to adopt their strategies i think the other thing is, you know, you've got climate change, you've got health and wellness, you've got a range of issues now really hitting every industry. and i see from letterone's perspective, because we're in retail, we're in health care,

we're in tech, it doesn't matter what industry you look at, you're in a bit of an industrial revolution and you have to adapt. oil and gas is no different. >> just finally, lord davis, are you surprised not to have seen a better improvement in relations between the u.s. and china since the change of administration here or do you expect this to be the norm now, some kind of tensions for the foreseeable future >> well, i think this is the issue. this is the elephant in the room, as you described earlier on i think that the world needed america to get back onto the global stage, whether it's w.h.o., whether it's nato, you name it. the u.s. has to be at the table. and you retreated. there is no doubt that china is a huge super economic power and the relationship between the two, the rest of the world is watching very carefully how the meetings go in alaska. they're very critical to global security and global economic

development. so i wish them very, very well in their deliberations because it's very important that these two great trading giants get on and solve their differences. >> lord davis, thanks for joining us great to catch up, as always. >> thank you very much indeed. up next, wall street gets bullish on ford's ev ambitions and the story sending visa lower. all that as we take you inside the market zone. we've got about 14 minutes left of trade we'll be right back. all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm.

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just over ten minutes left in the trading day we're in the market zone commercial free of the action going down to the close. mike santoli is here and we've got chief investment officer jason snipe with us as well. let's kick things off with the dow lagging in the red while the s&p 500 and nasdaq are higher. the s&p 500 and nasdaq currently on track for weekly losses so is the dow as well in fact. the russell 2000 the worst performer for the week mike, interesting, just a little snapshot even though tech is doing relatively well today, we do have tesla in the red, apple fractionally was in the red earlier but now is essentially flat, and some sort of noticeable declines there on the week for the likes of tesla down 6%. >> yeah, i would say you still are not having really persuasive rebounds in a lot of kind of aggressive high-growth tech.

that has not been the case you definitely have seen some efforts to migrate back into high quality nasdaq stocks at times when the yields have given them a chance and they have backed off in general today we have tentative action it's quadruple expiration day, that keeps the indexes sometimes within a band and that is what you see right now, give and take we are not seeing treasury yields make new intraday highs versus yesterday but i don't think anyone is convinced that it's not really paid off in terms of calling the top of this yield move >> jason, how much of your strategy right now is built around rising rates, which has been the predominant theme this week and the last few weeks. if so, what do you do? >> it's an interesting question, sara what we have done here is really embraced this inflationary trade that's been going on since november obviously the 10-year note, the push and pull between the

10-year note and the nasdaq is something to make mention of and obviously follow very closely. but for us it's making sure you have a balanced approach here. even keel between value and growth i think that's going to be important as we move forward and kind of see how the markets trend over the next few quarters. >> mike, oil prices noticeable pullback for the week as a whole. is that something that could start to take the wind out of a sector that has been incredibly strong so far this year? >> it's been an excuse to skim a little bit of the momentum gains out of energy. it's interesting, though, because it was pretty much neglected, just cast aside group several months ago with this revival, when you see people getting more excited about the demand picture, maybe we're not going to see a similar supply response because of long-term secular issues, i think people did make up rationales for why there was a lot more to go one of those would be if you looked at a 10-year chart of energy versus the s&p because it

looks like it's just barely even budged, even though it's up vastly for the last seven months for me it requires some consolidation. $60 was a pretty significant area to get above and see if it can hang above there for a little while longer. tesla under pressure again today after reports that the chinese government is restricting the use of tesla vehicles by state and military personnel, citing national security concerns. china's alleged growing distrust of tesla comes as america's auto safely agency ratchets up investigations into tesla. the agency disclosed that it currently has 23 active investigations into recent tesla vehicle crashes. and competition in the electric vehicle market overall continues to heat up barclay's upgrading shores of ford to overweight saying they will shift their strategy toward battery electric vehicles in the coming years that's really helped ford and gm

jason, how do you play this team is tesla risky from here >> so it's a great question. i think tesla for us has been a trade, we've been trading in and out of it over the last 18 months and i like -- i like this move at ford. i like -- i've liked gm. we've played the do-the-yourself market with autozone which we moved out of recently. but what i will say, i like the alliance with ford and vw. i think the increase in competition is a good thing. and i think there's obviously a lot of like upward trend and movement here. i think it's an opportunity to jump in and be a part of it. >> mike, these guys have performed very well as well. there's very few groups left out that haven't. >> that's true, absolutely in fact the only thing you could point to to say has really been left behind or nobody has an interest in are the truly lower growth defensive ends of the market, like staples, like utilities, some parts of health care definitely have been sitting this out but yeah, things like gm and

ford, it's followed along this theme where older economy legacy companies are getting credit for being participants in the new emerging big picture growth story. for her it's electric vehicles for disney it's streaming. even for other media companies it has been streaming. target all of a sudden is a aomi channel retailer the safety issue with tesla is kind of a nagging story line then of course things like china demand has been a big question mark because they have been very excited about it at tesla but it's never been clear that china itself would be willing to sort of put tesla at any kind of advantage to their own domestic producer so i guess that also is a little bit of wear and tear on the growth story for tesla. >> shares of visa falling on a report of a possible probe into the company's debit card business kate rooney has that story for us hi, kate >> hey, wilf visa down 5% following a "wall street journal" report that the justice department is investigating whether the

payments company is engaging in anti-competitive practices, specifically for its debit card business sources telling "the journal" merchants have complained about paying excessive debit fees and regulators are exploring whether visa limits competition in debit card routing this comes just months after the doj tud to block visa's $5 billion deal to buy fin tech company plaid, also citing antitrust concerns back to you guys. visa down about 6% or so mike, adding to a sort of broader financials pullback today for different reasons. again, one of the financials that hasn't performed well relative to the banks here today. >> it is true. now this of course is really in the high growth bucket, in fact literally in the s&p it's in tech as opposed to in financials, even though it is essentially financial transactions it's interesting, there's been always this complaint among the

retailers, the merchants have never liked all the fee structures it never liked the fact that these companies have a bit of a lock on things but it's always been the case. the reason they had high valuations was it was a sustainable duopoly plus a few other players. i don't know if it's going to change right here. they have always been able to make the case that the overall value proposition to consumers is actually very good. they can provide this huge range of services on the back end to the merchants and obviously consumers, so we'll see if it really does compromise their pricing and earnings power longer term. right now i see it as a decent excuse to take a little bit of the premium out of the visa. >> it's about these invisible fees to consumers. jason, do you see this potential doj investigation as a threat? >> so i think it's a potential headwind here. obviously these doj cases take some time to unfold and develop. you know, for us, this industry the way we've played it, when we

talk about the growth names, square and paypal come to mind as areas of opportunity as we kind of look at decentralized finance as the future. so, you know, i think it could be a blip in the road, we'll see. but time will tell over the next few quarters. >> slipping a little bit as we approach the close the s&p is now flat. two minutes left, mike >> it's been net positive throughout the day we had some small cap outperformance that also does mean positive breadth for the new york stock exchange and we are there. it's certainly not overwhelming. 1800 stocks higher against 1450 to the downside. i did also want to make note of the new highs versus new lows on the nasdaq this is typically in the last few weeks, highs have swamped new lows it's been overwhelming this is the first day in a little while, there haven't been too many days where you've had 100 52-week lows there's some internal correction going on that's been hitting

some of the reaches of the nasdaq even though there are more new highs, this is something to keep an eye on. the volatility index, we got to two straight closes below the 20 mark we're basically hovering right there. kind of a not much to see here thing at this point. it seems like it's not ready to completely fall off a cliff and say we're back into a very calm, normal springtime market on the other hand it's not standing in the way of the s&p continuing to rally because it's been around here for much of the last several months, sara. >> as we head into the close, let's take a look at where we stand, one minute left the dow is falling about 200 points, wiping out gains for the week, now lower. visa is a big part of the story as we just talked about the antitrust probe from the doj shaving 86 points off the dow. nike still having a negative reaction to its earnings report and sales miss yesterday shaving 33 points. strength in the dow now, home depot, united health and salesforce s&p 500 under pressure but we have a mixed picture communication services are up, technology is down

financials are the worst performers after the fed move today and energy is rebounding after a very tough week where the sector was down 7.5% the nasdaq and this russell 2000 both rebounding today, a little less than 1%, but both lower for the week, especially small caps closing lower 2.6% or so nasdaq down for the week a little less than 1%. fourth down week in the last five. welcome to "the closing bell," everyone, i'm wilfred frost. s&p closing down 6 basis points, just slipping into the red as we approach the close you can see the final 15 minutes or so of the dow fairly negative closing down 233 points or 0.7%. the nasdaq up about three-quarters of 1% all three of the major averages were lower for the week, largely because of yesterday's selling, communication services, consumer discretionary.

the best two sectors today, the worst, real estate and financials. coming up. the ceo of webull on whether or not stimulus checks will lead to an increase in trading activity. jason snipe is still with uls and gina santos joins the conversation mike santoli, first to you taking the s&p 500 into the red for the day, we're still off the session lows, but just ending on a slightly sour note. >> yeah, i would say expiration friday close i don't want to really extrapolate what's going on here aside from squaring up of things in general the market had a hard time gathering its feet under it because it was off balance either because yields were going up or coming back and it was going to be a re-rotation type of move. net/net the overall trend has held up. i think it's interesting that we're almost a quarter of the way through the year s&p up 4%, less than 2% from all-time highs in a decent position but it's also taken near record

levels of net inflows into equities you've had a lot of money thrown at this market and a lot of deal flow so it's been this very active situation where high demand meeting high supply and it's netting out to certainly still a bull market, but it seems a little bit more tentative. in the last half of each of the last three months, you've had this period of turbulence right here so i guess we're digesting the massive rally of 2020. >> really if you look at the communication services strength, mike, today, a lot of these media names continue to make new highs. discovery communications at a high news corp, viacom cbs as we've covered. what's driving this big run? >> they are very heavily weighted in the value indexes. they have become this sort of momentum pure value, and all of them would have qualified, has become this momentum trade. we've said it repeatedly here. in terms of what newswise is doing it, i don't know i'm not sure if the market was

reacting to the nfl deal here but that's not a discovery story, so i think they have been trading kind of as a group they have been trading inversely to things like facebook and netflix, when those stocks have been weak on some days so i don't think there's really much of a particular fundamental story line there's not really a through line there it's much more about this relative trade between value growth and momentum. >> gina, where are you on that relative trade between value growth and momentum. >> we've been overweight value really for several months now. if you look at what has been driving that, initially it was concern about how long the pandemic would last. now i actually believe that the rise in rates is actually pushing investors to really think about where to find growth at a reasonable price. so i think this is really -- i don't think folks are interested in catching falling knives so if you look at the value side, the value side has just

outperformed growth. i think that really has been about trying to find better value of growth company -- of companies that can participate in the reopening trade everybody agrees that this reopening trade probably could be very big. >> even when it comes to growth, jason, not all growth is considered the same, right you've got tech names like apple and facebook and then you've also got names like zoom and peloton. are there any of those trades that you should be in? do you distinguish there between the high growth momentum names and the mega caps? >> without a doubt you know, when we think about growth, we put them in those two different camps. obviously there's the high flyers, the zooms, the pelotons, and some that we like, which are twilio, square and paypal. i think that's a different camp. obviously we've seen the rates move from 0.90 up to 1.75 this past week.

obviously a lot of the high flyer names, those crazy p.e. ratios, they're obviously vulnerable to this movement. but on the other side as you mentioned, the stronger growth, like the microsofts, the googles of the world, those are some of the names we've leaned to and added capital and some of the pullbacks over the last couple of weeks. >> richmond fed president tom barkin, who is a voting member, joined us last hour. he struck an optimistic tone about the economy. here's what he said. >> there's a lot of momentum in the economy right now. i think we're going to have a very strong summer, a very strong fall as pent-up demand comes back in the economy, as vaccines roll out. i think the economies is going to be strong enough to take somewhat higher rates. >> gina, that's going to be the thing, right because he also echoed exactly what the fed chair powell said this week, which is we're going to make our decision based on data, on inflation, not on

forecasts, and we're not in any hurry. we're not precommitting anything on rates and on talking about tapering is there a conflict there from what's happening in the bond market right now >> well, i think that fed chair powell has said, and i think what is worrying the markets, is that the fed is not just looking for data to support that inflation exists but he looks for persistent inflation now the new fed framework really is going to require 12 months of observed inflation, which it has been a decade since we've seen inflation like that. so if you look at how long it will be before the fed will finally move, it could be sometime in mid-2022 and i think that the bond market is looking at two things one, the sustainability of debt issuance, that's one element, and how much inflation is going to be sort of generated through

this post-pandemic boom. now, our estimates are that we're likely going to see some short-term inflation, but it won't be persistent, and that it will be a while before the fed actually acts. but the bond market is pricing as though there's going to be more inflation than that >> mike, did we see a little bit of a short-term top in yields today? the 10-year spiking, pulling back, the 30-year closing lower on the day >> it's very tentative and c contingent at this point one thing you can say is the rate of change higher in yields has been fairly extreme over the last couple of months. you've seen tremendous positioning in a direction of higher yields. a lot of speculators see massive outflows from the long-term treasury etf so all of these ingredients suggest that the higher yield trade issin kr in kcredibly cro consensus. the thing is bonds move based on macro and they have these tidal

shifts as opposed to necessarily just responding to short-term positioning very much so i think you can't doubt the trend is higher but you wonder if it has to take a break for a little while, take a pause. i'm not sure what would have to happen for that to happen. maybe we get a little softening of data or a little concern even over a stock decline, it could work in that direction right now you would think that most of the short-term move is in in yields right now. >> if yields are rising, jason, on higher growth prospects, shouldn't small caps continue to rise that was the hottest trade on wall street, it got pummeled this week, down 2.77%, the worst mostly among the major averages, is that over? >> without a doubt, those names have moved so much and i think a lot of that has to do with just taking some profits, taking some off the table as rates continue to move and repositioning, looking at other opportunities in the market. and i think themarket is still

trying to digest inflation obviously the 10-year that's been going over the last couple of weeks so i think there's been some time for a little bit of a pause and i think that's what's happening in the small caps. >> gina, in terms of international markets, which are you most excited by at the moment >> we're actually looking at the developed markets relative to emerging emerging markets have such a huge run with the sort of china beating the world to the reopening and a lot of that got priced in. now you're actually seeing the rest of the developed markets catch up even with the bad news that's coming out you heard paris locked down again. but we still see from a valuation perspective, and remember that the markets right now are very focused on valuation, more so than ever from a valuation perspective, there's still a lot of value locked up in some of these international companies. and so it's -- for us it has been so far a trade that's been working. >> a lot of those european averages closed the week higher,

including the dax going against the u.s. jason snipe, gina sanchez, good to see you both. thank you. up next on the show, the ceo of robinhood rival webull on whether he has seen an increase in users defecting from robinhood following its restrictions on gamestop. plus barry bannister on why he expects value stocks to outperform growth by 40% over the next three years and dr. scott ttebgoli also coming up. we're back in just 90 seconds. 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,

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at emerson, we advance the safety and efficiency of the lng industry to meet the world's need for reliable, affordable electricity. emerson. consider it solved. gamestop set to report earnings next week following the frenzied trading in january. joining us now in a "closing bell" exclusive, webull's ceo. the company is a trading competitor to robinhood. a very good afternoon to you thanks for joining us. >> glad to be here, thanks, wilf. >> so the retail revolution, let's look back a little bit first. how do we get to where we are today? >> yeah, well, from my point of view, this is something that's been happening for quite a long time it's not just something that happened on january 28th we've been working towards this for many, many years i think -- i think three most

specific things actually was when the world went to zero commission as number one schwab, fidelity, td all announced pretty historically that commissions were now going to be zero and this put in a whole new 1wave of investors. then we had the second obvious wave which was covid people had more time people had more time to learn about the market, to actually open up that brokerage account that maybe they have been putting off for years and entertainment wasn't around. there wasn't any sports books anymore. there wasn't gambling. so the one thing that remained open was the stock market. of course you also had every night people would come home and see new all-time highs in the market a very, very aggressive fed policy and stimulus packages that just threw fuel on the fire then ultimately the third was that culmination of social media and investing that culminated in the gamestop scenario on january

28th. >> and is it all here to stay, or when a couple of those factors change in direction, which they inevitably will, whether that's the market pulling back and people experiencing sear just losses for the first time and/or of course hopefully economi reopenings so that we have other things to fill our time with, will retail engagement in the market decline in those moments? >> we may see a little bit of decline and maybe a little pullback in engagement and activity but what we will have gained is a now new educated young american in terms of how the capital markets work and how the financial system works, so they can be smarter about the financial decisions that they make going forward even if there is a pullback in engagement, it's still a positive for everyone. >> so what are your numbers like right now and how much did you benefit, if at all from the robinhood debacle when they had to restrict trading on gamestop and amc and others when things were going crazy?

>> well, we've been growing aggressively for the last several years. it just wasn't one event that we became, you know, a player, i guess, in the world of retail trading. this has been ongoing. we've been working hard at acquiring customers. we found that where we position ourselves in the market, we're a bit more sophisticated in how we present our analytics, our charts and our platform, so we take a lot of customers like you mentioned from robinhood that are looking for a bit more engagement and a bit more data so they can make a better decision when they trade or make an investment. so this has been going on for a while. but no doubt did we see a huge jump in users when different brokers put on restrictions on specific names or brokers went down those are all big tailwinds for us. >> what's your view on crypto and bitcoin specifically, and how engaged are your customers with it? >> well, we've been really fortunate with timing. we opened up crypto trading in mid-november of this year and

bitcoin at that point was about $17,000. so timing is very, very key in everything you do. so we've been really fortunate we've seen a huge uptick in customers opening up crypto accounts on our platform we're well above a million accounts right now and we're looking forward to adding new product and adding new cryptocurrencies for our customers to invest in >> anthony, what about the risk factor, if at all, being owned by a chinese company you're a chinese company and expanding aggressively in america, where, i don't know, consumers could be concerned about their data going to china, going to the chinese government, about all sorts of cybersecurity risks, not to mention the geopolitical clash that is on full display right now between the u.s. and china and a potential crackdown on chinese financial companies in the u.s.? >> sara, i'm glad you brought that up. so webull financial is a u.s. brokered dealer. we are a u.s. company. we're registered by the s.e.c.

and finra. so our customers' information in the u.s. is based in the u.s it does not leave the u.s. our chinese parent company is a technology company they do not run the broker dealer the broker dealer is run here in the u.s. our broker dealer, webull financial, is cleared through a company in the u.s. called apex clearing so essentially our customer accounts are actually held a a u.s. clearing firm called apex clearing based in dallas, texas. so not one customer account is based in china not one piece of information is going to china in any sort of way. so it's a little bit of miscommunication there we are a u.s.-based company. >> i want to end, anthony, by pivoting back a little bit to a topic we touched on earlier, which is what's going to happen as and when significant losses are experienced by all the sort of people that as you said were enticed into the market only over the last year or so when markets have only risen. first part to the question is who's responsible for those

losses do you expect to have a backlash when it what happens and what will it do to engagement in market levels? >> we're very clear that all investments have risks and deep risks and we make that very clear to our customers i mentioned before, the education that our users get out of this experience of learning to investment, so if the market does pull back and you do see some losses happen, yes, they walk away with a bit of change out of their pocket, but they get to have an education through experience that they would never have had through school or university there's nothing better than experiential knowledge so, yeah, that is a risk investors need to know the risk when they get involved in the markets. >> really quickly, anthony, are you seeing stimulus checks flow into stock accounts? is that happening? >> we have seen an uptick in deposits for sure. there is definitely a pretty substantial increase in the amount of activity that we've

been seeing during this whole stimulus download over the last week and a half. it remains to be seen how that kind of plays out, but it certainly has risen the tide for all ships in the brokerage industry, absolutely. >> anthony, thank you for joining us good to see you. >> good to see you happy friday. >> likewise. 41 minutes left of friday, work friday. anyway, switching focus, u.s./china talks are jus wrapping up. we've been watching as these became increasingly contentious. the u.s. delegation just speaking moments ago let's get to eamon javers who has a summary for us >> yeah, that's right, a tense couple of days in alaska as the u.s. and chinese delegations are meeting trying to hammer out some differences first real high-level significant negotiations between the two sides. the chinese side just walked out of that hotel negotiating room without saying anything to the press. the u.s. side, the secretary of state and national security advisor, both making a few brief comments the secretary of state saying

here that they certainly knew going in that this was going to be tricky. there were some areas where the united states and china were fundamentally at odds. he cites taiwan, hong kong and cybersecurity at some areas they're not seeing eye to eye. he said it's no surprise when you raise those concerns you get a defensive response on trade, he says, they're going to continue to move forward in a way that fully advances and protects u.s. workers, so the u.s. signaling to china they're not backing down there, saying we wanted to share specific concerns we have about a number of actions china has taken and we did that. woe also heard from the national security advisor, jake sullivan, here who said, look, we expected to have tough and direct talks and we were clear eyed coming in and we're clear eyed going out so that gives you a sense of where they are both sides having the opportunity to lay out their concerns and obligations for the other. it doesn't sound like a lot of

progress was had a lot of rhetoric, a lot of tension, not a lot of progress necessarily, wilf. back over to you. the s&p 500 posted a weekly loss for the first time in three weeks today. up next, mike santoli will have a look at whether a surge in sentiment could lead to a market bounceback. plus barry bannister will join us on his call on value over growth. we are spotlighting some cnbc krrkts here is courtney gibson on getting more women into leadership roles. in the u.s., more than 50% of the college educated labor force is made up of women, yet women still only hold 25% of leadership roles and less than 5% hold the title of ceo as leaders, we all need to demonstrate that this is a business priority by not only what we say but what we do, what we measure, and how we lead. right now, you're planning for your future.

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the company has now confirmed that particular story. in a statement visa says the u.s. department of justice has informed visa of its plans to open an investigation into visa's u.s. debit practices. while visa has not yet received a civil investigative demand, we have received a notice to preserve relevant documents related to the investigation we believe visa's u.s. debit practices are in compliance with applicable laws. visa is cooperating with the department of justice. that ends the statement. as we said earlier, closed down 6% already on today's session so not really moving much in extended hours, sara >> yeah, just a big confirm. let's send it back to mike santoli for an update on investor sentiment as we close out, mike, another down week for stocks. >> yeah, sara, we talked about the huge inflows into equity funds. that seems like there's a lot of excitement over stocks other indicators a little more mixed. this is bank of america's bullish indicator.

you see it's been building what they consider to be excessive bullish levels but not yet there and it's hesitated for a while it's somewhat comparable to coming off deep lows in 2016 and hesitating a bit in 2017 so in other words it's saying maybe get ready to worry about excessive bullishness but not yet quite. this is tactical investment advisers, the national association of active investment advisers weekly equity exposure. this plunged and it seems to follow the growth stocks more than anything. it did bounce back but not right now suggesting that people are excessively aggressive in their holdings of stock. so i think it's a mixed picture but something to keep an eye on, especially if the market keeps clicking to new highs in the coming months. >> we will do so mike, thank you. up next on the show, former fda commissioner, dr. scott gottlieb, on the cdc's decision to relax distancing guidelines

for schools today, and whether vaccinated people can still spread the disease plus, the ncaa basketball tournament tipping off, and a massive amount of money is expected to be wagered on march madness. we've got the details later on "closing bell. inside you, electrify you. they grow from our imagination, but they can't be held back. they want to be set free. to make the world more responsible, and even more incredible. ideas start the future, just like that.

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anthony fauci on wearing masks after being vaccinated listen >> you want to get rid of vaccine hesitancy, tell them they can quit wearing their masks after getting the vaccine. give them a reward instead of telling them that the nanny state will be there three more years and you have to wear a mask forever people don't want to hear it and there's no science behind it. >> let me just state that masks are not theater. >> if you already have immunity, you're wearing a mask to give comfort to others. you're not wearing a mask because of any science. >> i totally disagree with you. >> joining us now, dr. scott gottlieb, former fda commissioner, sits on the boards of pfizer and is a cnbc contributor. welcome back, dr. gottlieb that resonated with a lot of people, i think, because both of them made good points. but the bottom line, question i have for you out of it is has there ever been a case where a vaccinated person transmits covid, or has there ever been a

case where a vaccinated person contracts a mutation and gets sick from it and if the answer is no, why do we still have to wear masks if we're vaccinated >> yeah, we've seen some people get infected after full vaccination, although it's sharply reduced based on the outbreaks that we've seen. for example, there was a report of an outbreak in a nursing home in the midwest where most of the people who were vaccinated either developed no disease or mild disease i think one person was hospitalized as a result of covid. so we know that vaccination does dramatically reduce the chances of both contracting covid and becoming symptomatic to the point you're going to have a bad outcome or be hospitalized we also know it reduces asymptomatic disease and transmission we're seeing that in the data coming out of israel but lower risk scdoesn't mean n risk so people still have some risk so i think you still need to be cautious in an environment where there is a risk of contracting the infection and there's a high

prevalence environment so there's a lot of spread. but that's basically this month. i think in april and may people can be more liberal. i think people will be taking off their masks because we're going to see prevalence decline across the country people who are vaccinated can go out with more confidence even though you're at lower risk, it doesn't mean no risk and there's no risk that you can't transmit the infection so if you're around people that are at risk of covid and haven't been vaccinated, you should still take precautions >> what about -- one more on this if you've been fully vaccinated, would you feel safe eating inside a restaurant, dr. gottlieb >> right now, no when i go out to restaurants, and i have been out to restaurants, i've eaten outdoors i'll probably continue to do that even after i'm fully vaccinated i think when we get into april, may, and the prevalence starts to decline, i will feel comfortable going back indoors into congregate settings i will have people over.

i will host barbecues. so i think we just need to be prudent. when you're fully vaccinated you're at lower risk, probably substantially lower risk of contracting covid, especially if your underlying risk was low to begin with so i think that you can take more activity. you can take less precautions. but right now march is really a difficult month because the prevalence is still fairly high. we still have these variants circulating. we don't know which way it's going to go, especially in the new york region where 1526, that variant that's become epidemic in new york is circulating we don't really fully understand it yet i think as we get into april mope f hopefully the risk continues to decline and people can engage in more activity. senator paul was right, we need to see light at the end of the tunnel we need to have guidance that prescribes an environment where people can start doing things again but that is probably not right now. it's probably as we get into april. >> my invite to the barbecue last summer must have got lost in the post, dr. gotgottlieb, b

i'll make sure you have the right one when you start up again. i want to ask about europe it looks like various parts of europe are entering the third wave, as it were is that because their vaccination rates are lower? by that i mean does that mean we and perhaps the uk will not experience a third wave or are there other factors that we should look out for to make sure we whdon't repeat or mirror >> it's probably an indication of b 117 becoming dominant now i don't think that the european experience will be predictive of what happens here. so far we've been behind europe. meaning what's happened in europe has then happened in the united states three or four weeks later. i think the tables have turned and now the u.s. is ahead of europe hopefully we have enough immunity in our population and continuing to vaccinate at a fast enough clip that we're going t stay ahead of variants like b. 117. in places where it becomes the predominant strain like florida,

texas, california, you're not seeing cases tick up again they have maybe plateaued. we'll accept a plateau if it means that we'll continue to vaccinate against that and start to see declines as we get more vaccination to the population. the two variables right now are the upper midwest, michigan looks to be ticking back up again in terms of cases and hospitalizations and the tri-state region where you're seeing cases go up in new york, new jersey and connecticut. we don't fully understand why. i think in the tri-state region, 1526 may explain some of that. that's now the majority strain in this region in detroit and michigan it's a little harder to explain we really don't understand what's going on there but it could be a combination of b 117, relaxing precautions and they don't have as good vaccination coverage, particularly in the city of detroit. >> i mentioned the new guidelines from the cdc, dr. gottlieb, on schools loosening the space restrictions there was also a cdc study out today showing the devastating toll that remote learning has taken on children and their

families emotionally, physically there are still parts of this country, especially on the coast, where schools are closed. is there any reason for schools not to be open for in-person learning at this point >> i think schools can reopen and i think schools should be reopened this distancing requirement, the 6-foot distancing requirement has probably been the single costliest mitigation tactic that we've employed as a result of covid, in response to covid. it really wasn't based on clear science. we implemented it early on based on an assumption that coronavirus would spread like influenza and there was prior research that flu spread through droplets and if you stayed 6 feet apart it reduced transmission we've simply learned that it's spreading through aerosols, not just droplets so 6 feet probably isn't as effect i've if this was purely droplet transmission. i think that we've overrelied on

a flu-based model probably caused us to overestimate contaminated surfaces as a source of spread and underestimate the utility of high-quality masks in reducing transmission it probably caused us to overestimate the impact of distancing the 6 feet. we should have readjudicated this much earlier. i think there is nothing wrong with having followed that flu-based model and been wrong, but we should have been evaluating this along the way. so cdc did the right thing today. unfortunately, it wasn't really clear, the statement they made. >> dr. gottlieb, finally, what's your view on the messaging out of european capitals, european leaders the last couple of months about the astrazeneca vaccine? >> yeah, look, i think the europeans need a more coordinated response the fact that they had member countries going their own way on this and adjudicating the data on their own and taking pretty dramatic regulatory action in advance of the eia stepping in and rendering some judgment,

that process isn't very good i think it's going to discourage people ultimately from using the vaccine. if their judgment is that the vaccine is safe and effective, that's to the detriment to the populations. they need to step in early to adjudicate these things and the member countries probably need to defer to their regulator. >> meantime looking at a thumbs up picture of boris johnson who did receive the astrazeneca vaccine earlier today. dr. gottlieb, thanks for joining us good to see you. >> thanks a lot. 40%, that's how much stifel chief equity analyst barry bannister thinks will nderrm fi out which sectors he thinks will be the best performers. gi w . wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow.

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time for a cnbc news update. rahel solomon has it for us. the white house is reportedly considering flying migrants to states along the canadian border for processing "the washington post" says border officials are requesting the move to help with the recent surge from border crossings. michael cohen met with new york prosecutors again today that comes amid a swirl of new activity in the case, including fresh subpoenas and meetings with key witnesses. british prime minister boris

johnson has received his first dose of the astrazeneca vaccine. he's urging other britons to do the same he got his shot at the same hospital that helped him recover from covid-19 almost a year ago. and the white house says that it is cancelling this year's easter egg roll due to the pandemic instead it plans to send out thousands of commemorative eggs to vaccination sites and local hospitals and says that the bidens do hope to resume the easter egg roll tradition next year sara, apparently it's a whole procedure, a whole production. more than a thousand volunteers and at this point in the pandemic, still too soon, hate to say it. >> yeah, well, i guess they can't put out those images of the crowd, not yet at least. rahel, thank you still ahead, banking on a value breakout our next guest is betting that value stocks will outperform growth in a big way over the next three years his argument, what it could mean for your portfolio when "closing bell" comes right back

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continue >> it bottomed on september 1st, 2020, and got a big supercharge about two days after the november election when we realized there would be quite a bit of fiscal coming down the pike the fed is certainly easy. they're facilitating the fiscal policy we rose at one point over 20% on value relative to growth using russell 1000 indices that was the largest gain in 21 years, since the summer of 2000 when the tech bubble had peaked. so, yeah, i think it can continue >> is that why your target -- is your target still on 3800 on the s&p 500? so you don't think there's upside because it's so heavily weighted in technology >> well, typically value relative to growth rotations are not particularly s&p friendly. growth markets are dominated by bull markets with mid-teens and high teens returns for the s&p on a rolling 10-year basis value markets are no such thing. the last time we had one, 2000

to 2013 roughly, the s&p was flat, just over 1500 meanwhile, during that period oil went from 11 to 147 a barrel so the timing is such that a value-driven market would not be a particularly bullish market. this year we're looking for the earnings growth to be offset by p.e. compression as the real 10-year yield normalizes. >> when you look within the sort of cyclical sectors, energy, industrials, banks and so on, which is your favorite >> the financial stocks have the potential to return a huge amount of cash on cash, right? so they are great yield vehicles they are overcapitalized they have cash there is not a political football sense in the financials, that's yesterday's newspaper. now the banks are very well capitalized, almost run like utilities with a hefty yield the banks have a lot of leverage to the yield curve and i think credit quality looks pretty good so financials as our kpw

subsidiary has a long list of buys, i think those are fine, all the way from banks to diversified financials now, on the industrials, those also look pretty attractive. they have a lot of earnings growth ahead of them and the p.e. multiples are still somewhat reasonable, price to book, price to sales, which are other ways to do this analysis over the long term i would be only concerned on energy and basic materials in that they're so dependent on the dollar weakening and china growing respectively and those stories look like they got discounted into the market pretty fast already. i need to see more evidence of that so i would emphasize the financials and the industrials going forward. >> i feel like the value call, barry, was easier to make, i don't know, six months ago when growth was having just an incredible year and led us out of the covid bear market but now we've seen growth underperform what's happened to the relative valuation on growth versus value

just in the last few months as we've started with value outperforming? >> yeah, i actually made the call early i was before that, so i got walloped you know, value got hammered over the three years, nine months to september 1st, 2020. it underperformed growth 51% it would have to double just to get back to where we were when the trump tax cuts came into view and the fed first intimated that they would tighten policy, as they did in 2017-18 with great effect now the fed is no more they are not going to tighten. and you've got the large spending coming out of washington it looks like taxes will be a little harder to push through. so if reflation now is just avoidance of deflation, eventually you do reflate and value clearly wins valuations for the overall market, which is the benchmark here, we are on a cape ratio

operating earnings basis, we peaked over 31 times on a trend basis that was way outside the bands on standard deviation, that was high, and that's just recent so we think that the valuation of the market will compress over time back the low 20's and earn would offset that keeping the s&p and growth stocks roughly flat as value gets a bit. >> thanks so much. good to see you. >> thank you. >> up next, 69 million americans can bet legally and large rcn rity expected to wager o mah madness. how it could effect the biggest names in gambling when we return at fidelity, you get personalized wealth planning and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes,

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up next, 47 million americans are expected to bet on march madness this year. cnbc is at fanduel sports book at the meadowlands with more contessa. >> reporter: oh, basketball is back, baby, just listening to those sneakers on the court is like man, getting the juices flowing around here. it's so exciting, march madness. and this time, not only you have brackets as an option but millions of americans will be able to legal by bet on sports book for the first time.

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thousands of americans are expected to bet massive money on march madness. contessa is at the fanduel

sportsbook at the meadowlands with more on this. contessa >> reporter: hi, yeah, there's a lot of excitement here at fanduel sportsbook across from the georgia washington bridge, and through the tunnels a lot of traffic. fanduel anticipate way more business in march madness than the super bowl but without the big tech glitches as we saw in the beginning. why? because the traffic is spread three weeks. american betting gaming associate said betting will triple and so 25 states, plus d.c. now have legalized sports betting. 74 million americans than 2019 can now place legal bets in their home states of course covid adds a problematic twist.

strict health rules mean some are missing key players and a possibility a team could have to withdrawal all together from a tournament fanduel says if that happens they will void the bets and refund the players now, should i make this bet on michigan to win it all what do you think? michigan sarah? >> i think i have gonzaga, actually. >> you and everybody else. >> i'll tell you what i have. >> you think so. >> i will tell you what i. >> they're number one, they're the best. >> oh, good. way to weigh in, will. >> i actual have one before in the tv news room challenge believe it or not. >> what? >> go with 34i67 mitch -- michigan i was disappointed with duke contessa, having a lot of fun at the meadowlands. as we look ahead to next week, besides brackets we will focus

on powell and yellen testifying on wednesday and thursday on capitol hill about stimulus relief and global pni manufacturer numbers starting to roll out and what happens to treasury yields that's tcue for the stock mart >> and it's not reacting to the realtime data. it's about everybody revising their forecast what gd prks is going to do and fed want to let inflation take them at their word so we'll see in the short-term also we got to keep in mind, tuesday is the anniversary of the market low march 23rd last year so you will have a real contrast between the situation we're in now looking towards maybe 10% nominal growth this year and record plunge in gdp we saw back then. >> week to date, clearly one big loser was energy this week. >> yeah. energy, as i say, i think it's a

low conviction sector. people were buying it because it seemed so beaten down and had picked up rebound momentum we'll see if there's anything more to extrap"late night" this week . >> we're out of time have a great weekend "fast money" starts right now. >> i'm scott in for melissa lee. this is "fast money. today's trader lineup -- tonight on fast, a bold call on the banks, dony -- tony mcguire on the qualify today plus ford driving higher on the back of a big upgrade. is this the stock to play in the ev space and betting on the march madness could be a slam dunk for gambling we start with fwri