it is fun to watch, for one. second of allt(■there was an interesting call out of jefferies rising the price targetç■ on gamestop by $120,00 to $160 per share. ok e1shocking, right jefferies is also on the deal for the secondary offering for gamestop there you have it, gamestop shares downc26%. tyler good to be withfá you. >> good to be with you. >> thanksqfor watching "power lunch. >> i am wilfred frostçó■along wh sara eisen a mixed session. stocks messily gaining back after yesterday's late day selloff. the dow in the green, s&p holding on the gains, the nasdaq off by more than 1% despite a drop in yields and the s&p not holding on to gains afterall fed chair powell and second yellen spoke for a second day on rating his expectation for a very strong year of growth

we are seeing big individual moves to the t1■ç■ownside on the back of earnings includingq■ selloffs of gamestop, adobe, winnebago and general mills. energy is popping 6%, energy because of crude oilç■ popping quite comfortable today. it has beenlp sliding ofç■ late. 59 minutes left inx■ the session down over 1% on the nasdaq. >> a hugejf lineup of guests coming your way. black rock's rick reider, about the latest guidance from the fed andok where wehe sees test remo. general mills fresh off earnings about demand of groceries, includes the ceos of slack, docu-sign and the ceo of zoom on the future of workq■ post pandemic

first,ñ■ mike santoli tracking e action on the markets. joining us to discuss intel's w■ comeback plan ise■ intel'se■ ri after. we are trading 3900çó■object the s&p, right where we were on february 8th up less than 2%xd■from where we were in late january the market has slowedñi■down it flattened okout really starting to chew up the turf right in this area between 3900 and 3950.q■ we have crossed 3940 seven of the last nine trading days why? we have had momentum break a little bit in the cyclical names that were benefitting from higher yields and reopening enthusiasm we have had a pullback in growth that haven't rye built ando■ the is not a lot of energy behind them however the market allowed some of the overheating groups to cool off aso3 lot. the arc invest etf, down 5a■ú0% peak to o■trough spacs as a group went down 20%

high toçó■low.ñ■ even the small caps down 8%. and nasdaq 100 down 11%e1 high low. allok the '1ñ■stayed withinqa couple of percent of its call time high. it is using up a lot of energy the tread water andçó■relievedo■ whatever lpoverbought conditions were there high beta has been the winning trade for monthsñ■ñ■ right now however, giving something back in thex■ last month in favor of quality which vastly outconfirms high beta which is more cyclica■ and leif rans companies in the years leading up to october. obviously a little bit of a spillback in these dominant cyclical beta tre in place for months. so far note■ too much net damage for the overall market, though, guys >> thinking of catalysts and events here, president biden next week, one1 wednesday s seto unveil his new economic plan, custom is, as reported, supposed to call for trillions of dollars

in spending for i.t■(■u)ucture, and alsoe■ higher taxes,e■ kcort taxes. taxes on wealthy çz'dividuals. where is the market on potential positives and negatives? what is factored in ç■f■here >> i think the market -- it would probably end up being a net positive if you got axd■very sizable package that would outweigh whatever marginal tweaks to the corporateçó■tax re but it is all tooqdistant to start prizing in we don't have details orf■ proposals. it would be summertime at the earliest before you have gotten anything then what's going to decide things before then is the¦x■pace of reopening, whether acceleration is right in front for to it kick in. >> s&p essenti! minutes left manufacturing announcing plans to spend $20 billion to build two new chip factories in arizona. the move comes as a global chip shortage weighs oni■ automakers

and the ■l!■tronic industry mor■ broadly. the new ceo made his first appearance on cnbc earlier today saying the company is ready to be back in a position of leadership >> intel has been humbled. we have been beat up a bit over the last several years by some of our missteps. and the company is hungry to be lack in thenadership position. it's hungry to step forward again, to be that execution machine. as i have come, i described it as sort of like ajf desert and the first rain, flowers pop up all over. seeing w3■merge. we are ready to be back. >> joining us, vijay rakesh. he)b@ised his price target to $72 and has a buy rating ons7■ e stock. see you you likeç■ the announcement, particularly the new plants in arizona is it a bit too little, too lathe, or you welcome it

whole heartedly? >> thanks for having me on, i think it is a smart move, and a timely move, because i thinkm■■t is a confluence of the u.s.xd■ government and theó■■■departmen% defense wanding on-shore domestic production as a national security strategy it's a function of key customers, amazon, i]microsoft, call com, google, erickson, call com, all needing a domestic pbo(uq%=9■■facility that also plays into this. you know, it helps having a third leg to the four-country ç■ the found degree overseas issue. i think the timing is good, it is a smart move.o■)f1 o they can get to $100 billion foundry markete■ over the next five years there is incremental -- 20 billion is very significant, if th]■f■can■1 do

that. >> what is the time line here? no doubt the moves and it is politically sensible right with politicians on both sides of the aisle wanting more semiconductors madeok in this country for national security reasons among other things but how long does that sort of thing take when do you expect it to shully show up in intel's earnings and if it happens, to come to fruition if you look at what intele doing today it will be mostlyq22 nanometer capacity they willñr■want to expand but that will take time. two years out you could seejf tm nans that needs to get ironed out definitely they would be one of the contenders in that leading edge jfplay. give it three to five years as to what it would take to make sure in this business. but watch out, they are coming

you know, so -- >> why the sunoffq■w■ intraday r compared to last night do you think? i guess your buy e■rating i guess this is a bang the table moment buying opportunity, isn't it >> i think this stock is underowned i would say the hedge funds have been much more attracted it is really -- on the long side i tiw'k think researching and looking at this name as it intel longer term i would say in term of the selloff here, not really i mean intel has held up, it is■ holdingw3■up much better than their peers. if youe■ look atq■ some of the s they are down a lot more intel is up 30% flat year to date that's better. probably one of the best performing semistocks in the group orñ■■■heier, year to date. again, you ñi■now, i think they are definitely starting a whole

new stu#) map. they are big some big old technologyq■e■ guys back i think they are back now. and i am sure they will start trying to push hard onc■i■all t new strategies >> set best performer in the dow this year, right afterv vijay thank you for joining us on 'c■intel. today on new comments from the cema mody with more. the cruiseline's request the he assume u.s. sailings this july reiterating its seasonal saile1 order remains in effect until november 1st and that the return of cruising will be a phased approach it really underscores u.s. health officials' ç■reluxe rollout of the vaccine now, if it is november 1st, that would be 20 months of no u.s. sailings, putting even more

and their liquidity position sara i am also hearing from folks i speak to in the industry that you will likely see other cruiselines follow royal's lead and prioritize the> cema mody, thank you. another tough one for the industry. after thet(■break, shares of general mills are lower today after the quarterly earnings missed the mark. we will talk toe1 the company's ceo about the results after the break, plus his outlook for grocery spendingx■?cpj bars and restaurants start the open back up you are watching "closing bell" on cnbc. nasdaq is do 15%wn.2 dow is up 162 points ♪ ♪ we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa

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worst performers in the s&p 500 today, downee■ about r reporting strong sales and volumes y■n■mmt■business the companvv though did miss earningsq■ lpestimates.x the ceoçó■jeff haremenning joins

us now >> nice to bee1(3■here. >> sales were strong, up 8%. people continue to shop a lot and eat at e1home. the miss i think was onr and profits.e■ what happened there? >> as you(iu(■ our sales continu to be robust across north america retail.q our pet food business internationally. the challengeçó■in the quarter s not operating profit, eps was below consensus based on a miss in taxes and venture income. more importantly as investors look ahead there is aok lot of discussion about food demand at home what that's going to look e like we are confident though it may be below what we currently expect it will be above prepandemic levels and there is also concerns about inflation and the beginnings of inflation. >> tell us more about that what are you seeing on the cost■ side as we have seeni■ the price of commodities a on ae1 lot of e input costs, wheat and corn and owe many others rise what does that mean forok consumers pay?

>> if we look over the next three months our inflation rate for our fiscal year will be 3%,■ which is what we guided to at the beginning of the year. we will see significant inflation to everyoiq■w■ the ne three months but afterw3■that, broad based inflation, thing like grain and dairy, and aluminum ande1 steel, inputi] e■costs. and other thing like logistics we are anticipating more inflation in the 12 months ahead. we have5a■ great productivityxd■ initiatives, we generate aboutf■ 4% savings from our cost ofi] goods. >> when you look ahead to the next few months, jeff, and you see more stimulus coming in and the economy improving offset by reopening, did you think it is going to be a net positive força slight net negative? >> as we look at prepandemic, i think it will be a slight net positive.x as we have seen a miss this current quarter, the pandemicñr■

withdrew some of our sales growth and so did stimulus spending i would submit that there is more stimulus spending, more money in the pockets of consumers thejf next few months that would drivee■ growth for he is even with restaurants starting the reopen not all the schools w eopen, everyone is not back to work at office, no everybody is ever roing the recovery of away from home consumption i thinkjf is going be slower to react than a lot of people are currently anticipating >> two categories in particular r[d■lly help you jeff,e■ i feel like they were both major pandemic phenomenonons that is baking and breakfast at home especially breakfast at home,e1 which is not a thing that was q■érowing before the pandemic. what's giving you confidence that either those two trend are staying and you are going the continue the see higher sales there? >> you are right, you named two of the three categories we have seen kind of acceleras growth. one of those was in breakfast serial

int■ okcereal. people rediscovered the joyse■ cereal as a breakfast food and as a snack we have seen consumers cominge1 in, we have seen a lot of boomers comingf■f■ back to cere, hispanic consumers coming back to cereal. the same would be true of baking people rediscovered that the kitchen is the heart of the hom■ and sales are acceleratinge■ on flour and cake mixes the third category that has grown during this pandemic because it is important is our pet category there are significantly moreç■ pets now than there were a year ago. our blue buffalo pet business has in increased. they damage a branded companywç■ like your own because people might be pushed morec■ towards inbrand products rather thanñ■ producte1 names that they see wn they are in store on the shelf

>> not at all■]thi)■ the growth in e-commerce we think is here to stay long term. now 10% of oure■ business is do through e-commerce, which is about double what it was 18 importantly in most of the categories in which we compete we have better shares on line than off line because 85% of our e-commerce business still goes through stores.ym■ what we have seen is that it is the biggest best brands that are winning in the e-commerce world. fortunately we are in the position where we have thee■ biggest and best brands. what i am telling y>e■ is true i china, europe, and in the u.s. as well? jeff, you mentioned the cereal comeback you know we have got to ask you about the story that has gone absolutely viral, with cinnamon u.s. toast crunch. a man jamd jenx■ son carp says that he found shrimp tails in a box of his cinnamon toast crunch purchased from is that possible >> it is amazing the amount of news coverage that this story

generated. some of it is humorous what i want you and your viewers foy seriously at general mills and based on the information we have now it is highly unlikely that this occurred até■■■the general mills facility right now we are in the process of working with the consumer between what happened from when it lot of our docks and when he opened it. we are working with him tof■z■■ figure out what whaktly happened, and where. >> you are working withqhim? he's not happy with the way it was handled by the brand, he came out on twitter and said there was no chance of itjf happening. heñ■ wanted to know why you didt take it more seriously people have shell fish allergies, people eat kosher all kind of reasons fori] concerns. >> we have reached out to him in the x■meantime and w"■are hoping and asked him to return the product to us so we can take af■ better will be at where itx■

happened and what happened i can assure you i am knowledgeable about the situation and we are taking it seriously and we are hoping he will cooperate and get to the bot>o■■■of this. >> just to be clear, it is not a new sku that's coming? >> it is not a new flavor favorite the only place that i know we have shrimp in our product is in >> jeff harmening, thank you for addressing that, it is everywhere right now, we appreciate it. as well as earnings. your way with corporate leaders during thise1 show many that are direct has hit by re reopening. in minutes the ceo of docu-sign on their big boost last year and whether they can keep going after reopening. and then theñ■3■cfo of zoom on whether video conferencing is here to stay tickers on cnbc.com. ten-year note.

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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.

sty today is equal pay day, the day that women have to work into a new year in order the maket■ the difference of what a man

makes. >> women were paid 28 cents to every dollar paid the men as of 2019 census data and the gap does ten to be larger for women of color. now, compared to white men, latinas are paid 55r dollar.e native american women,i■ 60 cen■ and black women, 63 cents on the dollar.e activist the racial and gender scoreçó■card for equal pay day e praising six u.s. companiesi] f posting numbers. mast mastercard, pfizer, citi, starbucks and adobe with bny is going the start reporting those numbers this year. pfizer has the smallest median global gender pay gapqpaying women 99.6 cents on the x■dollar equal work up from ten last year

and five the yearqbefore transparency is of course the first step towards closing that gap. back to you. >> right, julia. thanks for that. julia boorstin after the break, ax■x■ sign of e times. shares ofñr■docu-sign climbed 1% over the past year we will ask the ceo if that momentum can continue as americans head back to the office here's a check of the yields.j the ten-year at e■1.64 as we stand.

growth, momentum, tech names that are getting hit especially hard, like tesla, apple, facebook, paypal, inindividual the, under pressure with value and cyclical names

outperforming. time for a cnbc news update with rahel solomon. hi, rahel. >> vice president harris has been charged to tackle migration efforts at the border. two girls ages 13 and 15 are facing murder charges because of a failed carjacking. they targeted a 66-year-old man, the car was turned onto his side and the man was thrown on the sidewalk and died in hospital. in a mass shooting 12 people were killed, victims blamed a toxic workplace and supervisors who didn't recognize warning signs. and no progress on the sue he is canal. a 1300 foot ship is stuck, photos show it totally blocking the canal which carries 12% of all global trade heavy winds are being blamed incredible for more on efforts to free the

ship and how long it might take check out the news with shepard smith. shares of docu-sign are up more than 130% on the year as the pandemic has transformed the way we do business but it has fallen 30% from its highs as investors question whether the growth can continue. today they had their annual conference showcasing their latest capabilities. joining us is ceo dan springer dan, good to see you, thank you for joining us. >> thanks for having me. >> extraordinary growth numbers looking backwards. congrats on that to what extent is that the traditional business of literally signing contracts versus some of the new areas you are trying to expand too into? >> if you look at the fiscal year '21 growth, the year we just completed to your plint, e signature provided the lion's share of that growth. we grew the revenue 50 last year and on our scale this coming

year we will hit $2 billion, good growth. what we saw with the pandemic there was the need for people to get the first step into their agreement cloud which e sixty oftentimes in because of the urgency in the work from home model. as we move forward we will see broader docu-sign agreement cloud, clm and the broader management of their agreement. that's how we see things shaping up. >> everyone is wondering, clearly there is an ease of use whether you are sitting at home or in the office to do e signatures versus physical signatures and scanning and returning. when people do go back to the office is demonstrated for your product going to be lower? >> we don't think so when we look at what you referred to earlier as the digital transformation, if we think about the digital transformation piece that docu-sign is powering, it feels like a freight train that's only going in one direction people are not going to go back

to sort of the manual processes, dealing with paper, having a much less positive environmental impact than you would with a digital solution like docu-sign. so the benefits of speed, their customer having a better experience it is possible that people who have made that move, they are not going back. >> dan w that in mind, how do you think about how big your business can get as wall street's beloved metric, the total addressable market. >> we think about it in two pieces the signature pieces our strong leadership position and what brought us to this dance at $25 billion and growing. if you think about it, even though we have such a dramatic market share lead it's still very early days in that business as i mentioned we are only going to hit about $2 billion in this coming year. so very early innings. from the standpoint of the rest of the docu-sign agreement cloud or the overall agreement cloud

cyst space we see that as about the same size, approximately another $25 billion. we see a lot of years at the high greta ahead. >> dan, to what extent the you rely on single big customers, corporate customers. i am a user of your product regularly but not a paid for subscriber i guess my usage relies on somebody on other end paying for your subscription fee. >> we appreciate them doing that we have almost 900,000 customers around the world we go from the smallest company to the biggest we say over time every company should use docu-sign however, the larger customers, the ones we have a direct selling relationship as opposed to those who come to us on then line model represent 85% of our revenue even though it is a smaller percentage of customers. we don't have individual industry or individual companies, so it is diverse in terms of that need

on the other side, you described yourself, we call you a signer as opposed to a customer we have now had a billion people sign with docu-sign. it is incredibly widespread as well >> one thing i have heard also about your stock, which is why a lot of growth managers like it, but also esg managers like it because it is obvious, right, it conserves paper to have to digitally do signings. do you think that's a big driver of flows into your stock >> i don't know how to think about it from the investor standpoint but i can tell from you a customer standpoint and employee standpoint this environmental focus is big at davos two years ago with jane goodall we launched to be you sign for forest, building off that core consent that using our product you are having a positive environmental impact. we have seen that really take off. it makes our employees really proud to work here and many of our customers like walmart and union lever come forward and say we have got an esg effort, an

environmental focus, and docu-sign as a supplier can be part of that overall effort. we have seen positive feedback from those cite sides. from an investor's standpoint i think people check that box. i don't know how much is driving their investment decisions but clearly it is something they are positive about us having >> dan, thank you for joining us good to check in with you. >> thanks for having me. cheers >> docu-sign we have got 25 minutes left to go before the bell here's are where we stand. nasdaq approaching the lowest point of the session as we speak. technology is under pressure we are seeing the dow remain higher, but, again, well off the highs, up only one third of 1% thanks to honeywell, sat pillar, nike and 3m. s&p 500 dipped down .2 it is weighed down by communication services, consumer discretionary and technology. up next, find out which wall street firm is paying out bonuses and raises to mid and

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another update in the battle for work/life balance on wall street mid and entry level investigators are getting $20,000 bonuses as well as some raises this move toms as kormt culture and work/life balance have been brought out the forefront by the likes of goldman sachs. 13 first year analysts were surv surveyed it is fascinating that the story keeps on disk more angles. two quick points i wonder whether the goldman sachs bangers that are now being promised they don't have to work on saturdays would have rather got en20,000 or not. >> probably. >> it comes to the point which is, these are high-paying jobs f. money placates your concerns, then it kind of suggests the complaint in the first place perhaps is a little overdone and this is a job that kind of comes with a trade-off you are well paid. it is tough hours. and if you don't really want to

take on that trade-off, so be it, you can leave. >> well, i do think that the different strategies and approaches to this issue by all the banks is notable this is obviously the most generous, at least from what we have learned jefferies i think gave analysts & associates peloton bikes or apple products, not bad. jane fraser said you don't have to zoom on fridays at citi group. and goldman sachs said saturdays you don't have to work interesting how they are approaching this and by the way the capital groups have been on fire, m&as, ipos, spaks, even janet yellen one of the toughest critics on banks says now they can buy back shares. >> i think that's one of the more important points we haven't brought up surprisingly given we discuss this all so much when all of these complaints carted to come out, after bonus time. i think last year clearly was an

absolute blow out here for investment banks we don't know for junior bankers how much higher their bonus was to the year before or what was expected in the era we are in that banks couldn't be seen to be paying huge amounts out when others had tough years whether they had gotten appropriate bones we haven't have heard all of this complaining. but maybe if they got the 20 grand up front you wouldn't have heard about the story in the first place. great story. keeps giving us more angles. we will see what we talk about on this front tomorrow much more on all of those developments over the next couple of years. still to couple. >> i am like bruce willis in die hard 2 where he is waving to of the incoming flights. >> bruce willis himself, charlie

wnrin skoi will be us to break do his bold call on of today's biggest decliners. it is down almost 20%. that's next. with a bang, energy and change came to every part of our universe. ]■ tdso seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business.

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[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 touchdown with' got josh brown back as well welcome, josh. we will kick it off with the broader markets. stocks are getting hit hard into

the close. the s&p 500 is down. technology is getting hit hard in the nasdaq. media names, also reopening place, airlines, hotels leisure. what is driving this >> i think there is still hesitation about exactly the pace of reopening but also in combination with the fact that getting very long cyclicals had become a consensus trade you lost a little bit of the yield tail wind as theyt yields back offed in general the market has gotten to a point where it broke stride in terms of the big momentum drivers out there. i think part of it -- we talked about it yesterday is, retail trading flow has really diminished you don't have the same amount of price in sensitive buying that you get following some of the growthy names that we had in the early part of the year lus we have the quarter end rebalancing that we keep talking

about. those are the results of the environmental factors. and we are up 70% in three months once that happens you tend to have a choppier digestion period thereafter this is what it looks like and feels like. >> nice jump on monday, then a couple of choppy days. what's yourtake on what's goin on this week >> we made a new record high on the dow last week. so like if your expectation is that you are just going to make new record highs every week forever you probably don't belong in the stock market like, this is -- the me, this looks like a very calm on the surface market and then i understand that beneath the surface there are some rotations that look extremely violate and if you have traited positions in the arc stocks for example, or the 50% revenue growth club, it is not fun and it definitely feels much worse than what the broader averages are suggesting. so, look, i just think that that's where we are right now. it is interesting because you would have thought all this

stimulus money, everyone was ready for this to pour right into bitcoin and pour right into the people stocks and kathy wood and tesla. and all of those things are not rallying is he i am not sure that it has a bigger, broader meaning. i think it caught people by surprise because that's what their expectation was. >> viacom cnbc plunging today, the stock is down 27% in the last two trading session afters the companies announced plans to raise $3 billion from stock offerings. i asked a viacom shareholder about the stock's valuation just two weeks ago. >> i am sort of like bruce willis in "die hard 2" where he is waving off the incoming flights. i have got wave people off here. if you own it, it is okay the own it you about i can't tell you to come if at these levels. this is now trading with a lot of optimism, frankly and i think it is still being helped by that short position. so we still own it, but we have reduced our position >> charlie, that was a preciousent call

congrats on that i guess, of course you will be wish ugd sold more than perhaps you did. down 27% in two days are you changing your mind now and starting to top up again, or not? >> well, what's changed is that they went from a net short position where there was a squeeze and stock not available, and then the company issued a lot of new stock and that put a change in the dynamic. so there isn't that same sont of short squeeze. frankly what they did was issued a mandatory convert and a lot of people that buy that simultaneously short the stock so the trading dynamics are just terrible here in the short run but fundamentally, this is because the stock ran too far. i mean it was trading at -- it had gone from three times earnings to 22 times earnings. it was well above our valuing a. we are value investors we compare the stock price to our calculation of the intrinsic value of the company and it got above that. and so that's just what changed.

value investing is tough in the short-term but in the long run things go to what they are worth. it has come back to earth. it needs to come back more for it to be attractive to news looking at the 12 month performance, very come cnbc up 378% discover is down with it today and has been up 211% over 12 months why have we seen this crazy move in these stocks? >> because everybody hated it a year ago this was the most hated name frankly in the entire stock market i mean the stock was trading at $10 at three times earnings. i made no sense and all the bad things people were predicting have been proven wrong paramount plus has been a great success. they didn't lose the nfl everybody thought sports were dead forever they are coming back bob backus was hated as a ceo. now he's loved being a value investor you love situation where is everybody hates it custom is where it was

a yeara and three week ago everybody loved it and that's not good. >> are you still bruce willis waving people away or are you advising people to get back in now, down 27%? >> so our valuation of the company is still below today's stock price. but we are in the hold zone. it is no longer dangerous. i can't tell to you buy it here. we sold a lot. we sold, frankly, close to 80% of our position. so i would still tell people to be cautious here but it is obviously more attractive today than it was three weeks ago. >> what did you buy instead? >> some other names that are unloved. i mean there are still some names. one of them we talk a lot about. people don't like mosaic people don't like madison square garden entertainment it is selling for two thirds of the intrinsic value of madison square garden plus radio city hall the agricultural economy is

exfloweding and mosaic is going to have a banner year. people hate smucker's. the jelly company. people hate it that's what we love. >> charlie baranski. thank you. let's talk intel the new ceo laying out his strategy for the company today josh lipton. >> sfwel is back that is how new intel ceo pat gehl singer is putting it here, outlining a new ambitious strategy for the chip joint giant. now intended to be a competitive found dairy meaning manufacturing kmips for other companies. gehl singer explaining why on cnbc. >> it is a different market. as we said, $100 billion found degree market by 2025. and there really are very few companies that can step into that with leading process technology there is also extraordinary

interest on the part of u.s. and european countries and governments for a more balanced supply chain and, again, we are one of the few companies that can step into that >> as part of this effort, gehl singer says intel is going to invest $20 billion in two new chip factories in arizona. still some on the street have questions here like bernstein's stacey raz gone, a found degree business is something this company tried above and failed they are also taking on a goliath, tsmc, spending a ton of money itself which stacey says beg as big very for investors. how will intel attract enough business at the end of the day to make this transition viable back to you. >> josh lipton, thank you. it has been a big winner this year, josh brown, down today, down overall over the last year. what do you make of the new strategy in the stock? >> i mean, it sounds great, if

they can pull it off but if you remember why they stumbled over the last couple of years, it has been because of whack execution. they are not good at making chips anymore. the other head wind that he didn't mention just now but i will is that we have a new class of oems making their own chips apple is chief among them. i don't see that changing on a dime no matter how good or efficient intel gets it looks as though some very large tech players that were buying huge amount of chips from companies like intel have decided that they can do it themselves in a more efficient way. and the types of capex that they have poured into that project -- again, you don't just stop because an svp from intel takes you golfing. he see that as a permanent head wind and tsm is -- i mean, they are just better at intel i hope i am wrong. i am in, he ma i hope in two years intel is better than they are and can

really pull foundry business in. but the stock is getting the benefit of the doubt how they are going to succeed >> >>. you can now buy a tesla with bitcoin. this according to a tweet from tesla's ceo elon musk. he goes on to say that bitcoin retained to tesla will be kept as bitcoin not converted into fiat currency. the model 3, the most popular model is around $38,000. shares of tesla down 4% today. mike, i mean, this, if this starts to be the way people transact would justify having bitcoin on the balance sheet for liquidity reasons. but, again, highlighting the different prices there, already shows how difficult it is going to be to really be the main medium of exchange.

>> yeah, i think it is marketing. it's signaling that tesla is the up to date car maker if you happen to have massive paper gain, so to speak, in bitcoin, and wanted to swap it in a tax inefficient way for a vehicle like a tesla, i guess this is kind of interesting. i can't imagine it is going to actually, you know, include that many people for a company that's supposed to be selling a million cars this year to me what's interesting about it is the performance of tesla shares already you know kind of more than 25% off of their highs on monday, we got that big audacious new tries target from kathy wood and arc of $3,000 a share. the stock was up less than 3%, nasdaq up less than 2% lost half that gain on tuesday today we are down on this supposedly flashy announce me on bitcoin. tesla has gotten up off the mat and made bears look stupid many times. you can't take it as a signal that this company has no more bids for the stock at these

levels but i think it is telling that this stock is performing the way it is given the news flow around and it the kind of hype that continues to fly >> so, josh, do you think there is a change in the hype machine that is elon musk and how traders are embracing moves like this a lot of the bears and the skeptics will say these are all kind of smoke in mirrors distractions from what's going on there >> i would be really excited if i could buy bitcoin with a tesla. i am going to work on that problem, sara. it would be interesting if tesla starts acting like a traditional automaker with interest rates rising and that being a head wind for people financing car purchases. that would be very old economy i am long gm i think this is the year where the incumbents fight back, you are going to see a lot of new models hit the showrooms, hit the streets, and not boring stuff with electric batteries, like truly exciting new vehicles and it's not that tesla is not

the leader they still will be it's just that they are not the only game in town and we know from other sectors in the stock market over the decades when that happens the dynamics do change among people buying and selling stocks i don't think it is any more complicated than that right now. >> nasdaq is down almost 2% right now with a few minutes left into the close. s&p is down.5% two minutes to go here in the trading day. mike what do you think of the market's internals we have been falling throughout the hour. >> the picture eroded throughout the day. it accelerated a little bit with the heaviness in the nasdaq. it is hitting the knock stocks it had decent breadth this morning. more than two to one to the downside a new feature, new 52 week-highs versus 52 week lows, new lows exceeding new 52 week highs. last week everyone was wow being the number of new highs because

we were not at the anniversary of the market lows now you don't have that tail win. plus erosion underneath the surface of the market. definitely something to stay alert about. it is not meaning that the market has to go that low. we could be correcting internally the vix under 20 you have a lot of push/pull that's keeping volatility a little bit contained now it popped back above to and a ib had of an upside tilt when it looks at sort of the april vix futures as well. so you have got to keep an eye on all those things, wilf. >> under one minute left likes like we will close at the session lows the dow is holding on to nine basis gains. the other major afternoons nall the red. the nasdaq composite down sara mentioned the best part of 2% as we stand the russel 2,000 down 2.25%. oil big jump, up 5%. energy up 2.5% after a softer start to the week for that

sector industrials materials and financials holding on to gains the other sectors are in the red, the likes of tesla down 4%. the arc etf down 5%. gamestop down 34%. at the close, the major averages are predominantly red with the dow holding on to -- it closed in facts flat, for the dow the s&p 500 down.5, and the nasdaq down 2 fundraise. at closing the dow dipping into the red. >> i can't believe you didn't say bang on flat the dow pretty much closing bang on flat. welcome back, everyone, to "closing bell. i am sara eisen along with wilfred frost. and mike santoli, cnbc senior markets commentator. take a look at how we finished up the day on wall street. dow couldn't hang onto the gains. it was higher all day long then slid with the overall rest of the indexes into the close.

we closed down two points which i guess doesn't make it bang on flat what hurt the dow? well we saw technology as the biggest loseran the day. crm, salesforce, disney, nike, apple, the biggest drags caterpillar, hoehnwell and chevron held up well, a few other dow components as well s&p 500 down a little more than half a percent i won't down more because energy popped 2.5 rz energy materials fnlts and utilities all closed up a hoft the technology and consumer sectors were lower. the nasdaq down 2% at the close, and the russell 2000 index of small caps keeps getting hammered here, down 2.35% into the close today. another day where growth momentum, technology underperformed some of the more cyclical groups. investors are awaiting earnings from rh and kb homes we will bring you those results as soon as they are released. shares of zoom video are down 30% over the last six

months after being one of the biggest winners early in the pandemic ebs this hour we will speak to the company's ceo on the decline and whether the new policy is a sign that users are getting sick of video conferencing. also, slack considering disabling a feature of its messaging platform first, what happened on wall street today the selloff. josh brown still with us victoria fernandez also joins the conversation from cross mark global investments first though, to you, mike, on what caused the spill into the close and the general softness as we have seen yields stabilize. that was really the big source of anxiety in prior weeks. >> yeah, in fact it is usually the threat that you are not fixated on that does seem like it undercuts the trend now, last week we were talking about how there's nothing that says that when yields go down all big growth stocks have to go

up and when yields go up all value and cyclical stocks have to rise. that's the way the market can be behaving here we have a genre ral rethink of the pace of acceleration we all expect at the same time i think the growth bid has begun away. you have some wounded trends in that area. what we did close directly on the s&p 500 is its 20-day average. that's kind of the short-term trend line that people follow. it is at the low it has been trading very technically in this ill liquid choppy environment i don't think it was necessarily news driven though there was chatter about joe manchin in the senate coming out in favor of a tax increase and infrastructure bill i don't know if that was another excuse for it but it was in the mix. >> victoria, have been been buying any big tech names on rene pullbacks wilf, actually what we are looking at is trying to find

some of those growth or tech names that have had a pullback and is an opportunity to upgrade our portfolio. we sold out of cisco and bought nvidia recently. it gives us an opportunity to have a name in there that has a really strong balance sheet. they are net debt free they have got great margin and then you are looking at a company that has exposure to gaming, data centers but we think there is an opportunity on the automotive side over the next three to five years. we think you need to be picky when you are looking a of the names that pulled back find the ones that have good growth opportunity and really sprang balance sheets. nvidia is the example that we have used. >> josh, what about you? any examples of names that pulled back that look enticing >> i definitely think paypal has pulled back substantially enough that you could say, okay, it is still not a cheap stock but it is probably going to be unof the

leading financial services companies in the world over the next decade. and it -- it's buyable here. but then there is this whole category a of stocks that -- like, i understand how much money is dropped in them and i understand they should be able to bounce but i still think the bounces are selling opportunities. and chief among them is peloton. and i have been bearish on this stock the whole way up and now the whole way down this thing is off from like 170 down to 101. and this is an interesting area. this is the moment of truth it has been able to defend $100 a share on every pullback going back to like october with the warm weather and people getting back out and the reopen, i personally think that this stock is going to break below $100 and there's really not a lot of support so, like, there are a lot of those types of stories out there, too on line education -- all kind of stuff that made a lot more sense a year ago than it does today.

so i don't think it's easy i guess is what i want to get across here. and i don't think every one of these high flyers gets to be a high flyer again when tech does recover. >> josh, can this spread out to the rest of the market i mean, if you broaden that out to maybe the arc etf which clearly had huge inflows last year and early this year also if you look at the chart doesn't will be like it has much support a few notches below where it is now. are you concerned it kind of infects the rest of the market >> you know what, maybe from a sentiment standpoint, but these stocks are not the indices they are all very reasonable possible none of them are profitable. so they are not even in the s&p. these are russell 1000 names fastly down, peloton down. these are names we know because they are volatile, they move but

they are not on the indices. i am going down the list they are all very red. they all have a lot of money trapped in them much higher but they are not in the s&p 500. i don't think structurally they represent an issue for the overall stock market the way you might think even though they are popular. i could be wrong we will see how much worse things get but for right now i hate the term ring fence, but i have to throw it out there i think most of the damage is being ring fenced to this very specific group of stocks what is interesting, wilf, is they all have the same owners. the hedge funds that are big in pager duty are also very likely big in twilio. like it's the same group the wanna be tiger cub hedge funds that are in these names. so we will see what ends up happening. but i think it's okay for everyone else so far >> speaking of air coming out of a stock, did you see how

gamestop finished. gme after the first earnings report last night down 30% at the close. what do you make of the action >> exhibit a in a little bit of the flight of the retail bid that was able to really drive a stock higher on a specific set of circumstances, part of which was pleat radio silence from the expect and a complete lack of clarity on the realtime progress of the business. so it was all about short squeeze? guess what it is no longer a crowded short. limited supply of stock? well they are going to do a offering when you had the report last night given the valuation of the company at a tremendous premium to anything like what other kind of challenged chain store retailers are, there is just not much to kind of support things once you have that collision of reality and that shareholder

base that was just chasing it higher i think that's one of the issues just a general supply and demand in this market i don't think there is a chronic problem but right now there is indigestion it is a problem with all the spacs and the secondaries there is a little bit in the way of too much new paper out there for it to be absorbed it has to be done gradually. >> let's talk about -- >> i was going the say. >> go for it. >> on gamestop, i think you have a lot of people whose introduction to the stock market was this, and a lot of people feeling a little bit silly about having gme tattooed on their ankle in late january or early february and -- even if the fundamental do improve, which nobody thinks they will any time soon, just the overhang of trapped money -- i keep using that term because it is very relevant right now. there is so much supply on any rally. it makes even -- even catching

the falling knife trade and hoping for the bounce -- it makes that even hard to do i agree with everything mike said. >> let's talk about one of the winning performing sectors today, energy up 2.5%. vick toia, is that a sector you like >> you know, it is difficult for us to say as we sit here in houston that war not big supporters of the oil and gas companies right now because we just feel like they have a long road ahead of them we know that chevron was one of the best performers today, up 2 or 3% or so. and there is momentum in the reopening trades but we think they have head winds because the supply can be up pretty quickly with opec when they see demand coming into play with reopenings esg dependents come into play and the capital investment they have to make to really hit the metrics they need on the esg front. we look at it more on a utility side where they are looking at renewable energy, they are looking at solar, they are

looking at win all across the made to. for us, those are the opportunities we think are most beneficial for our clients. >> victoria fernandez thank you for joining us. >> josh brown, always good to have you, to. when we come back, zoom-free fridays that's the new policy citi group is petit putting into place after the ceo warned of video fatigue. other companies could be cutting back on video meetings as they try to create a better work life balance. coming up black rock's rick reader back in just 90 seconds here on@

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that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones! oh yeah! zoom fatigue seems to be taking a hold of zoom video. with the stock selling off by 7% today, and down 20% in the last month. at least in the stock market despite the recent moves lower zoom has been a huge winner amid the pandemic rallying more than 100% in the past year. as countries begin to reopen can zoom keep up the momentum the in its business joining us, zoom's ceo kelly speckleberg. thank you for joining us. >> hi, thanks for having me. >> i mentioned that term, zoom fatigue it has been in the news lately with citi group's new ceo saying no video conferencing on friday are you worried about a stigma being attached to the name, to

the brand, because people are just so sick of staying at home all day and working from home and video conferencing >> well, we certainly understand that being on video all day long can be challenging we spend a lot of time working with our own internal employees to had them understand how to optimize and take a break during the day. maybe take one of your calls or your meetings then go outside on a walk set your meetings to 25 or 55 minutes because it gives you a little break i think we are all suffering from not having that break we used to get walking from room to room and now you are jumping from meeting to ut meeting and take taking just seconds. our days aren't punctuated by commutes orstopping at the end of the day to picking up your children we have guided internally to think about boundaries, to make sure you set aside the golden hours of the day that are important for you and the family all of that leads to us finding

a better balance in our lives that we have been challenged with over the last year and may have been blending home and work together. >> as worry trying to do that, we are also trying the reopen as vaccines come around what are you seeing in terms of activity lately on zoom, and also orders from some of the big corporations which has been driving your business? >> we are just as excited as everybody is to see the progress with vaccinations around the globe. what we hear from our customers is they are really thinking about the hybrid return to work. that we -- recently, it is going to be announced tomorrow a survey we conducted with boston consulting group employers expect 30% of their workers to want to work remotely after the pam and that 70% of these businesses said that video conferencing will be vital to the future of their communication strategy so we see that with the acceleration over the last year of video communications, it has become embedded in everything we do, in our personal and our work

lives. and that especially with employees, they love the flexibility it has given them and employers have seen productivity has been maintained we are working with customers to figure out what is going to work out for them best when we can move around the world safely to have the convenience it provided over the last year. >> if people do shift back more to voice calls or voice meetings, do you lose out on that business or can you capture it >> we can capture it we have zoom phone that recently celebrated its two-year anniversary. we have seen tremendous momentum in that product. we have over a million paid. as our customers really started strategically thinking about their work from anywhere strategy, that zoom phone is an important part of that discussion it is available in 44 markets around the globe and so we absolutely can

continue to be part of that strategy long term even if people want to communicate sometimes without their video. >> competition has always been an issue you have managed to stay on top. but there are some big companies that are in this gape as well, webex, microsoft, how do you plan to stay ahead as everyone tries to envision the new hybrid work future? >> yeah. -- to our customers and our employees. the way that we do that is we listen to them the reason that we are kpet -- our kettive edge to date has been our ease of use and the reliable that is what has made our product work great with kin der gar tense, k-12, grandparents reading to their grandchildren all the way up to the largest fortune ten customers that are using our products we will continue to listen to

them as they send employees back to the office safely innovating. the democraticatization of communication, all of our screens are the same size. how do you maintain that when you go back to an office where some employees are in the office and some are working remote. our galleries is great for that. >> do you have to consider adding none pure communication services microsoft and slack merging with salesforce the suite of services those companies can offer for a sort of all in one price is clearly a lot broader and deeper than zoom can offer. >> we are focused on moving from being a kuller product to an amazing platform where people spend their days last fall we announced zoom apps

these are collaborations with other providers of workplace services like drop box and box what zoom apps are going to allow to you do is collaborate more deeply when you are in a meeting like this. salesforce, ar sanaa are developing apps. we are striving for being the platform where you can spend your entire day, if you are in the conference room with colleagues or at home working remotely that this will be the place where you not only communicate but you collaborate and get your work done as with he will. >>cally, we have been doing a lot of looking back because this week a year ago -- it has been hard the believe it has been a year since we have been in this pandemic and few companies have been as impacted as you. you literally became a verb. when did you realize what was happening and how your lives and your business would be totally transformed? >> i remember the day clearly. we sent our employees home on march 3rd. on march 4th

we had our earning call. eric and i and our head. ir were in our office by ourselves with a few technical support people the next week was business as normal we were all getting used to working fully remott me. march 15th was the day we woke up and the world had changed overnight. as a reminder in december of 2019 we were averaging so million meeting participants by april of 2020 that had groan to over 300 million day had he meeting participants we are thrilled over the last year to have been able to connect families to support meaningful events in people's lives like adoption as well as providing 125,000 education doe mains in 2-12 throughout the world for free we are happy to have kept the world connected and played an important part over the last year. >> kelly thank you for joining us much appreciated. >> thank you. meantime, earnings are

crossing >> a nice quarter here the fourth quarter for rh, restoration hardware w earnings per share coming in at $5.07 above expectations of $4.76. revenues up 22% to $813 million. also above expectations. the adjusted gross margin up nicely, 480 basis points to 47.4 operating margins also higher. there is a note in this shareholder letter and release that says the demand has accelerated sharply, in february up 73% and the first two weeks of march, demand up 96%. you can see shares of rh higher by 8.8% after-hours. the conference call starts at 5:00 p.m. eastern time back over to you >> big beat. kourtney, thank you. kb home earnings also out right now. leslie picker. >> sara, slightly different

picture for kb home. those shares selling off in the after-hours partially due to a miss on the top line revenue came in at $1.14 billion. the street was expecting $1.21 billion fore the first quarter on the bottom line though it was a significant beat about ten cents a share, 1.02 for the quarter. a 62% increase year over year for kb home. now they gave some commentaries of color as to why they saw a significant margin improvement housing gross profit margin increased to 21.1 fundraise largely do you to just the pace of orders, price and starts and their ability to optimize assets n. particular, the millennial demographic which is engaging in a lot of first-time home buying and they are looking for homes with maybe lower prices, smaller square footage but they still saw an average selling price

increase 2% to $397,000 during the quarter. they also note that their backlog value, very strong 74% year over year increase here still, nonetheless, shares down nearly 4% in the after-hours trading. guys >> leslie, thanks so much. up next, mike santoli will have a look at whether value stocks are still vuaalble after stocks are still vuaalble after significantly talk about the rik and potential profit and loss. could've used that before i hired my interior decorator. voila! growth growth w our trade desk.couple.rategy m ♪♪ flexshares etfs are built with advanced modeling. (a1. to fily prtg n strengthening client confidence in you.

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welcome back, let's get up to mike for look at value versus growth. >> it relies on the fact that value stocks are at a near record discount the growth stocks it is relative value in absolute materials, value not necessarily cheap, 18 times forward earnings with the s&p forward earnings, by far a 15 year high. growth is expensiexpensive, in h 20s multiple you have to have earning come through on value in order to be able the see they can still perform. this is a 30-year high in this ratio, which is a good thing value is going to grow faster

than growth this year because of the snapback effect on cyclical stocks but it does have to come through because presumably a lot of that is priced in at 18 times earnings >> value has been working. mike, thank you. up next, blackrock's rick reider on whether he is worried about inflation and how veorshlde ttg going hybrid, with ibm. environment, if we continue to see that we'll be right back. supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

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treasury yields lower for a third day in a row reversing the recent run-up after federal reserve chair jay powell comment in addition the economy seems to be strengthening he said though there is still a long road ahead. joining us now blackrock's cio of fixed income rick rieder. we had a surge in rates, now everything has calmed down the market digested auctions relatively well. where do we go from here >> it depends on your time frame. i think for the next week or so it is hard for rates to move higher quarter end rebalancing, rebounding taking place. we have done some this as well some of the investment grade corporate bond markets where yield are starting to be attractive dollar prices are down significantly. back enoff the yield curve is

providing interesting opportunities that said, i think if you look two or three, six months hence rates are going higher i think we are just going to pause here for a bit of time >> rates are going higher why? are they going higher because we are expecting better growth? are they going higher because we are expecting inflation? going higher because they expect the federal to taper sooner than it is talking about tapering, which it is not talking about yet? what is it >> so a myriad of thoughts there. the first thing i would say, growth is going to be the primary driver you are seeing economic indicators that are close to where we were and some through where we were prepandemic. the growth is -- i think the growth is going to be explosive, to the high side i think you are going to see a number of dynamics you are seeing in some of the numbers a little bit of soft innocence the last couple of weeks because the data we are now reading off -- it was interesting seeing the kb home numbers, off of tough weather. but if you strip that out the economic data is going to be good first part, economic growth is

going to be explosive. second part, up the federal should start tapering. i think there is a dynamic about how do you start that taper and using draining some of what you have been buying at the front end of the yield curve to support long term interest rates. i think interest rates will head higher and i think it is important to understand the plan right now, part of the reason the markets are jumpy we don't know the plan from the fed and how they are going to transition i think when we learn more about how they are going the do that markets will be more stable. i think you are going to press rates higher and i think rates will stabilize when we know what the plan is and when the federal is going the start tapering. i heard jay powell and janet yellen talking about inflation we are not worried about it moving higher. i think the transitory effects they are talking about are quite significant. we are going to have more inflation than we have had the last couple of years but i am not worried about inflation moving out of control that's not going to be the instigator for

rates moving higher. >> are we going to be in an environment again where people want to save money in traditional deposit accounts >> wilfred, that's long discussion, but i think it is healthy for the system if into rates move higher -- for the middle income, it is a saving mechanism companies don't really borrow -- consumers don't borrow on the front end of the yield curve in the housing market i think it is important, if you let short-term rates move higher i think there are a lot of healthy dynamics but you have the support five ten year interest rates because it has an important dynamic for the markets. it is different than the '70s and yaents and '90s where company used commercial paper products to fund capex and m&a

so letting the front end yield move higher it is healthy. right now there is not a lot to buy on the front end because liquidity is so pervasive and -- are not allowing you to carry no matter who you are. >> if we are going thao to see ridesing rates continues what does it mean for stocks? the greta to value rotation continues? or can the everyall market absorb this? >> i think equities are going higher that being said we are running a much more cautious position in equities than we have for a while. i have been on with you guys a number of months now, probably almost a year now, we are talking about how equities will be the beneficiary of not just low interest rates but the fact that companies can finance at attractive levels. i think there is a series of uncertainties out there today that are making equities -- still they are going to go higher but i think we can pause a little bit some of it because we are going

to see some increase in interest rates once we get past the next couple of weeks. somewhat because we frankly we priced some of the equities a of the too high i think this recalibration around some of the excess that's taken place is really healthy but i think we have got the see that through a little bit. today was incredible how you are seeing some of that recalibration. i still like buying. we are buying cyclicals. we hike cyclicals. we hike some of the financials it is going to be interesting to pick away at some of the technology stocks as well but i think we can be patient here we are running a high cash position it is as high as we have run i think we will be patient here for a period of time >> rick rieder, thank you for joining us i appreciate it. out of blackrock we have got a market flash right now on rite aid. leslie picker with the details >> sara, i want to draw your attention to shares of rite aid, plunging in after-hours trading.

a really interesting story here. they provided an update to their full-year 2021 guidance. clearly had to adjust it based on some incolumnent weather in february which hurt sales as well as a weaker flu -- cold and flu season, which hurt their comps. now they now see for the full year a 90 to $100 million loss, whereas the estimate was for $125 million profit. their top line for the year, $24 billion, pretty much in line with expectations there. but interestingly here, the cold and flu products are seen as more of the higher margin products on their shelves. they weren't selling people were wearing masks, they are staying home, so there was a much lighter cold and flu season really taking a hit for the financials at rite aid now they are expected to report earnings on thursday, april 15th so this was an adjustment to

their guidance ahead of that as for vaccines, they do note they are significantly reramping up on the vax on side. again, shares taking a significant hit. now down nearly 20%. guys >> leslie, thank you very much for that one. still ahead, the ceo of slack on what the future of work will look like once the pandemic ends, and more people return to the office as we head to break, here's another check on our after-hours earnings movers. rh up 8.5% kb home down nearly 4%. don't miss cramer's exclusive interviews with rh ceo tomorrow at 6:00 p.m. on hey, dad! money.

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welcome back tame for a cnbc news update with rahel solomon. >> hello, everyone virginia has become the 23 hrd state to abolish the death penalty. the governor signed the bill outside the correctional center where more than 100 executions were carried out since the early 1990 snooz ohio seeking to force a lawsuit to speed up its use of date for redrawing congressional

districts. the coast guard unloading four tons of cocaine earlier today the french military said it seized six tons of cocaine from a cargo up shchlt they say it is france's largest ever drug bust at sea. glaxo smith klein has fired slawy over sexual harassment allegations. in a letter to employees, the ceo said she is quote shocked and angry about the harassment but she also praised the woman who came forward with the allegation for her courage and strength sara, i will send it back to you. >> re hall solomon. shares of slack higher by more than 50% over the last year thanks to a big boom in business amid the covid-19 pandemic and the takeover of course. what's ahead for the company's bottom line as we move toward reopening? we will discuss with the slack ceo, after the break

♪ mom and dad left costa rica, 1971. and in 1990, they opened lrazu. when the pandemic hit, pickup and delivery was still viable. that kept us afloat. keeping our diners informed on google was so important. the support from our customers, it honestly kept us going. i will always be grateful for that. ♪ slack shares up more than 50% this past year, the move largely coming off the news it will merge with salesforce this july the company rock out a new feature allowing users to connect outside of the use of their organization however, hours later they announced they are disallowing a

feature. joining us to discuss is slack's ceo stewart butter field thank you for joining us. >> thanks for having me. >> let's clear up this complication today about the possibility to send abuse. i mean that's no different from someone sending abuse on twitter or guessing your email address or anything like that. >> yeah. yeah i think -- first it was an unforced error on our side kind of an embarrassing mistake. but, yeah, it is not well understood it is a little bit like if i wanted to share a clip from cnbc with someone and i include a he is message in the share notification i could say nasty stuff in there. putting that to one side slack has been growing it includes share channels, includes this new ability to

directly message with people outside your organization. this is not unsolicited messages lets say you work at an auto manufacturer and you spend your career working with people at the parts company. it is people you work with closely but whose employer is different than yours. >> what would you say it is a sem return to email that originally you were a challenger in the face-off? >> this might be an aindicatic reference. it is more like the old blackberry messenger in order for you to message me i have to give you a pin because they can be shared i still get to approve your message. it is not just that anyone can message anyone else. it is double opt in on both sides. >> stewart i was curious if you could give us an update on the deal your shareholders voted to approve it, you are getting bought by salesforce but sounds like the d.o.j. asked for a second request, more

information, which i guess is not uncommon but there is a political desire to be tough on answer trust, especially with technology what are your expectations >> i wouldn't want to speculate what's going on inside the department but i think part of this is almost certainly due to the change in government it has -- it took a while to get an attorney general appointed and a deputy attorney general for anti-trust is still to be appointed. so it is a little bit hard for people to move quickly in that kind of environment. but we don't anticipate any problems. >> once that part of it is done, stewart, how long before you fully integrate each other's software offerings such that they will be sort of a united single salesforce slas offering to customers >> it is a great question that gets at the heart of what we feel if opportunity is there won't be one merged product. slack will still be an independent company. we have 156,000 customers as of this year. we will continue to sell slack

independencally. and salesforce will continue to sell sales cloud and service cloud and marketing cloud independently. however our position at slack has been whatever tools our customers use we want the make those tools better because they use slack. and there will be an emphasize on salesforce's products here. if you work with service cloud in a call they are and a group of agents are swarming the case is the torm following slack is the perfect tool the coordinator collaborate on that engagement the same thing is true for the entire sweet of products. >> we have been showing numbers stewart of your growth during the pandemic obviously as we have worked at home. how do you envision the post-pandemic work environment what sticks what doesn't. >> that's a good question. i have a maybe naive hope that we collectively, not just slack, but we all view this as a moment where there is a lot of opportunity. there is long way to go, v

but there is a little bit of light at the end of the tunnel while thou one would want to relive the last year, for many people there were elements that were things they want the retain so the ability to spend more time with family not having to commute. the increased flexibility. ideally, we can marry the best of the old world with the things that we like about this new world. but any time the system is pushed this far off equilibrium, there is an opportunity for great change one of my favorite sayings is never waste a crisis i think there is an opportunity out to reinvent work that just didn't exist before. >> i want to go back to the new messaging service and ask whether you think it is a threat to bloomberg terminals given that bloomberg messenger is such an important part of that terminal i forget which journalist tweeted about this -- edly, thank you etch have, he put that idea in my head. >> i hadn't seen the tweet it is an interesting question.

no, not especially lie because i think that's a very entrenched market if we could be helpful there of course i would love it but it is a perfect analogy because that's ultimately the marketplace for capital markets. you know, it's how the buy side and the sell side reach eacher to, supply and demand meeting in the middle there are hundreds of thousands that have no corresponding marketplace today. that could be anything from the commercial real estate in a different rhett metro market it could be wholesalers, stuff from china that's being sold at the dollar stores. it could be fine line and three star michelin restaurants. there is all of these practicingmented infective ways for customers and suppliers to meet one another i think there is an opportunity the create those inside of slack. >> stewart, thank you for joining us with an update on the business. >> thank you for having me. >> and how you are thinking about things we appreciate it. >> nice to see you. still to come we are looking ahead to tomorrow's tech

testimonies. the ceos of facebook, google, twitter, they are all gearing up to speak on misinformation what every investor should be listening for, straight ahead.

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after ours, rh is seeing accelerated demand during the pandemic kb home going the other way, home billers q1 revenues missing the marks, both have been huge housing play winners over the last year. >> ceos of google facebook and twitter to testify tomorrow on capitol hill a preview when we come back.,n" yes! hey ava, how's my bracket looking? this is gary, i invested in invesco qqq. a fund that invests in the innovations of the nasdaq-100.

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mercedes-benz suvs were engineered with only one mission in mind. to be the best. in the category, in the industry... in the world. visit your local mercedes-benz dealer for exceptional lease and financing offers. mercedes-benz. the best or nothing. ♪ ♪ and twitter set to testify on misinformation tomorrow. and we have the preview. ylan >> well, facebook is already making ways to support changes to section 230, known as the tech industry's liability

shield in his written testimony zuckerberg said -- systems should be in place with defined content but -- ceo of google saying outright repealing section 230 could dampen free prosteks -- protections -- meanwhile -- lawmakers are split on this issue. i am told democrats want to focus tomorrow's hearing on finding solutions not just the fireworks. i will say those are some famous last words back over to you. >> thank you very much for that. mike, as we look to tomorrow we're going to be watching obviously that tech hearing impact if at all it will have on the stocks there is a question out there, right, about whether any anti-trust action will be taken. we know the latest commissioner for president biden has been on

top of big tech and written arctic thes about amazon -- art iicle articles about amazon. >> yeah one additional layer of doubt -- all though facebook one of the best performers, not showing too much concern until recently i think in general it is less favor supply and demand set up -- lots of nuances and choppy and hundred thing for crowded positions and complacency surfing from area to area taking value out of each trade out there right now. >> mike, it's worth pointing out six straight days of the final hour of declines for the s&p 500. >> yeah it's been a very pronounced pattern maybe that does say something about this asset allocator, rebalancing out of equities into fixed income or fully allocated

institutions out there and net sellers later in the day will also say once that kind of becomes the rule book and everyone thinks they got the pattern figured out it sometimes doesn't persist after that >> melissa, we took five seconds off you yesterday, here's five back, here's "fast money" starts right now. >> we're even now. thanks i'm melissa lee this is "fast money. tonight's trader lineup guy adami, tim seymour, jeff mills -- following kb home and rh both on the move after earnings, what it says about the health after hours and gamestop to the moon, why one analyst is raising the target on the stock by 1,067%. later, the real money in fake buildings. the virtual real estate market is on fire, cash in on the craze. the nasdaq falling more