market i'd note energy we've seen an unwind happening in that trade too given the dynamics in the crude oil market. >> it's going to be very interesting to see how the earnings come through. i suspect it's going to be an amazing few weeks of numbers that will eye pop compared with a year ago. >> easy comps, right >> morgan, great to be with you. thanks for watching "power lulu lunch, " everybody welcome to "the closing bell." i'm wilfred frost along with sara eisen stocks gaining steam the major averages all with gains, the nasdaq up more than 2.5% since monday's open any close higher for the s&p 500 will be a record the dow set for one, the nasdaq not quite. president biden unveiling details of his first budget proposal to congress laying out a $1.5 trillion road map we'll break down the highlights

in just a moment the producer price index, a key measure of inflation, jumping in march by 1%, well ahead of expectations the year-over-year gain was the most in nine years dow transports are higher today and higher for the week as a whole on pace that their tenth straight weekly gain for the first time since 1989. 59 minutes left to go in the trading week, sara. >> we've got a big show coming your way in just a few minutes an exclusive interview with christine lagarde. we'll talk about the pace of recovery in europe, the battle against the virus and what's keeping her up at night. plus shares of pager duty of more than doubled getting a boost from the work-at-home trending we'll discuss the wild ride with the ceo in just a bit. one hour left of trading mike santoli tracking the market action kayla tausche with details on president biden's budget proposal mike, start us off as we see another potential record close

for the dow and the s&p. >> quiet, calm, firm strength all week it really has been just trudging higher pretty low drama most stocks have not necessarily gone off to the races. here is the s&p over the last week you see this last little burst higher we've been saying all week that the market is really hugging the upper side of this line right here and actually it resembles in some respects if you look at some of the technical setups the way it was in august and july of last year, kind of as we accelerated and raced into that september high back here we were all able to say things look a little complacent, things were overbought maybe we're getting stretched and moving to an overshoot but it lasted a couple of months before it did that eventually when you pull back you did basically go below those levels when we broke out so ultimately there tends to be a flattening out or a test but no signs of that just yet another 3% higher and you'd really be stretched on the s&p houses and cars very much

underpinning a lot of the strength and enthusiasm about the economy. it's very difficult to get too bearish until these trends change so home builders and home related as well as the global auto stock index, they are point in the right direction even though autos have kind of flattened out just a little bit as volumes have come off just a bit and global markets have not done quite as well take a look at volume. it has become relatively quiet slower pace, slower volatility this is not bearish. now, these spikes are expiration weeks. so that's where you basically get this artificial mechanical spike higher this is what i want to focus on. back in january and february you did see sustained levels of much higher turnover in the markets you had a lot of retail flow coming in. that has ebbed a little bit. now you're at the low end of the range. this is christmas, that's thanksgiving outside of holidays, it's kind of quiet it's not outright bearish when the market gets this calm but

usually something comes along to disturb the peace a little bit, guys. >> we're expecting earnings. what's the setup >> the setup is abeat for expectations once again. we've had a pretty good sell the news response the past couple of quarters you did not get benefit for great beats. the 2021 outlook matters a whole lot. i think the market is positioned to suggest there is still further upside for full-year forecast so we'll see if managements give any credence to that expectation. >> mike, thanks for that looking forward to some banks' earnings in particular next week. meanwhile let's turn to washington where president biden unveiled details of his first budget proposal to congress. kayla tausche has a look at what's in it for us. hey, kayla. >> reporter: hey, wilfred, it is guidance to the congress calling for $1.5 trillion in spending for the fiscal year that begins in october all in all it represents a 16%

increase to nondefense discretionary spending to $769 billion and a more modest 1.7% increase to defense spending to $753 billion administration officials said they were trying to right the ship in several policy areas the biggest boost goes to high poverty schools, $20 billion increase there $14 billion to climate change efforts. more than a billion dollars in an increase to enforcement of tax audits and a $1.6 billion increase in funding for the cdc. just a few moments ago president biden in the oval office where he was getting a briefing from his economic team also pointed to an increase of $4 billion funding that he is requesting to fight the opioid crisis. in that briefing which the pool just saw just a few moments ago, he also took some time to offer condolences to the queen of england for the passing of prince philip and also made some

comments on infrastructure where he said that he's already spoken to some republicans about the proposal that his administration has put forward in the last few weeks and he believes that it will get republican support. to be continued there. we should note that the infrastructure and tax plan is separate, but complementary to the budget proposal that is being unveiled today officials say they are meant to kick off deliberation processes as they work toward seeing exactly what a more robust budget would look like that could get approved by congress through those official processes that will get under way momentarily. >> i was going to ask a follow-up point. as you said, this isn't necessarily the full proposal, there's other parts to it that you just outlined. nonetheless, what is the timeline from here from what was announced today and indeed the more significant other parts to come >> well, certainly this is a

requested and essentially just an overview of what the administration hopes directionally congress will work toward as they go through the appropriations process what's going to happen after that is they're going to release a more robust budget blueprint we expect at some point later this spring, possibly later this month or in early may and that would include budget requests for foreign aid and entitlement programs that are not included in the detail that was unveiled today. separately, there is also going to be another process in parallel where congress is going to be working to try to put some money together for annual funding programs for surface transportation and for federal waterways. that happens every single year and the hope is that through those processes that they can cobble together a bunch of these bills to put together something that resembles president biden's infrastructure proposal, although still remains to be seen exactly what the final

shape of that will look like based on what support he can get from members of either party. >> kayla tausche, kayla, thank you. the dow is up about 140 points, near session highs headed for a record close. after thebreak an exclusive interview with christine lagarde. we'll discuss the challenges still facing the kaunt nept as that economy lags the united states you're watching "closing bell" on cnbc. all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm.

for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. the world around you may seem like an immovable, implacable place. it is not. it can be bright. quiet. and safe. it's a change that will be felt from this street. to this street. to no street. and everywhere in between. all it takes is the slightest push in just the right place and that will be the tipping point that changes everything. ♪ ♪

[ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. and that will be the tipping point that changes everything. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day

by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for fifteen hundred dollars off your kohler walk-in bath. visit kohlerwalkinbath.com for more info. 49 minutes left of trade the s&p and dow both on track for record closes. european stocks are also trading near record highs. there's optimism there that the recovery is coming following in the u.s.' footsteps, but with many countries still in lockdown and cases of covid-19 still surging, there are some serious questions about the strength and timing of the bounce-back for europe i did speak exclusively with christine lagarde about the pace of recovery. listen >> i think there is recovery you know, recovery is delayed

certainly, but it's not derailed it is delayed because upper has been hit by the third wave of the virus. not exactly the same one, the one that we call the english variant, which has hit hard most european countries we are still going through some lockdown measures. not as severe as back a year ago, but it is still slowing down the economy, which is back in many ways because there has been a lot of ingenuity on the part of the private sector to resist the slowing down of the measures so a lot of invention, a lot of innovation, a lot of ways to deal with the situation that is still inflicts a lot of uncertainty. i would say this, sara i think as everybody else has said, the light is at the end of the tunnel we can see it. it's not yet within touching

distance we still have a few innings to go, but it is certainly in 2021 a second half of a year that will be a recovery that will be moving fast, actually. >> it's good to hear in your latest action, you announced that you were going to ramp up bond purchases to counter the rise that we've seen in yields, which we've seen here in the u.s. as well. my question is why if rising yields are a sign of the optimism about the economy and higher inflation, why do you need to fight that >> well, you know, when the governing council met earlier in march, we had observed for a few weeks a rapid increase of the risk-free interest rates of the sovereign bond yields. we thought that this was undesirable and unwarranted in that it would lead to some tightening that was, as i said, not warranted by the economic situation that we saw in europe.

and we didn't want, you know, those risks of tightening to jump ahead of an economic recovery that could occur in europe during the second half of '22. so a lot was imported from the united states and we thought it was perfectly appropriate to resist this rick of tightening and to make sure that we could continue to preserve the favorable financing conditions that we had back in december. >> so are you satisfied to see yields back lower today? >> i think that our action has been efficient i think it's been efficient ever since we started back in march of 2020. but i think that markets have understood what we want to do and how we want to preserve favorable financing positions and apply a joint assessment based on what we see on the financing conditions that are out there and our inflation aim,

and particularly our determination to return to pre-covid-19 state and then move on >> you are expecting a rebound this year, as you mentioned, but do you think there is a possibility that you'll have to extend the pandemic emergency bond buying program beyond march, '22, when it's set to end? is there a chance of that? >> you know, this emergency pandemic program is characterized by complete flexibility. flexibility across time, across asset classes, across countries, and we decided when it was needed to extend it and expand it, we did it twice. if it is necessary to do it again, we will do it again if it is necessary to spend more than what has been identified, we will do so. if we can spend less because the situation improves fast, we will do so as well.

so we will use the flexibility in all respects. the committeemen that we have under the pandemic emergency program is to make sure that it supports the economy and helps reach the goal of price stability up until which time as the governing council decides that the pandemic crisis is over we've assumed that it will be march up until now if it needs to be extended because the governing council determines that the crisis is likely to last longer, we will extend it. >> what about tapering, how big of a challenge is that going to be in this environment, and is it too optimistic to expect that you might start tapering before the end of the year given the forecast >> you're thinking tapering in u.s.-like terms. we are in a completely different situation. the u.s. is probably going to hit its inflation targets rather soon we are very far away from that

'21 we'll probably see inflation at 1.5 and that is largely temporary and technical. it will go down again, we think. and our goal is close to 2% and below 2% so we're very far away from that. what we tried to do with our forward guidance is indicate that we will continue net asset purchases until very close to the time when we will actually look at rising interest rates. sorry, rising policy rates so tapering is really not in the same terms, should not be discussed in the same terms as in the united states we may well reduce the pandemic emergency program when the time comes, when we see the crisis coming to an end, yes, but that's the emergency program we also have the program of asset purchases.

as i said, net asset purchases will continue until we start looking at rising policy rates >> when do you expect europe to reach herd immunity? i know you're not a virologist but it's a critical economic question. >> i will not make an announcement on herd immunity because doctors, scientists are arguing about that what i can tell you that there is a strong determination to reach 70% of vaccination before the end of the summer. for some countries it will move faster i know that there is a commitment to have a very sizeable part of the population in france vaccinated before bastille day, which is the 14th of july. we'll see about that but certainly before the end of the summer 70% of the population vaccinated is something that seems to be very much within reach, because now vaccination rollout is picking up, is getting speedier and more efficient than it was in the last few weeks, which i think that the europeans are now

really dealing with, addressing with determination we have to keep up and press on to make sure that injections are taking place fast. >> what about stimulus injections obviously the u.s. just passed a $2 trillion bazooka and there's another $2 trillion package potentially on the table europe has the euro joint recovery funding it hasn't been signs off on and is about half as big is that frustrating to you >> if you put together the whole package that was agreed by the europeans, which is this special fund plus the multi-annual budget, you get to about $2.2 trillion that's roughly the ballpark figure that we have. when i say the europeans, we have to keep up and press on, that's what i mean it has been agreed, it has been voted by the european parliament all 27 member states have to ratify i know that 16 of them have done

so they still have a few weeks to make sure that funds are actually dispersed in the second half of '21. that's what we are counting on in terms of our projections. so yeah, pressing on is in order now. >> but is it adequate enough, the size and the scope given the trillions of dollars we've seen from the u.s. and given some of the economic hurdles that you have in front of you it would certainly make your life easier, wouldn't it, if they could go bigger on fiscal action >> it was great that during this crisis fiscal and monetary acted hand in hand and this has to continue it's difficult to compare because we're comparing orange and apples here. europe has much higher automatic stabilizers than the u.s the recovery plan and the resilience plan here is really targeted at making sure that there is transition towards digital green productivity enhancing measures, whereas the

u.s. plan is more driven, the second will be of a different nature when it is voted. but i think it's difficult to actually compare because you have national measures that are taken and that provide fiscal stimulus as well so you need to package everything at the european level and possibly compare it. but i'm not even sure that this is actually appropriate because they are clearly tailored in a different way. europe wants to be more digital, more green, more effective for the moment i understand the u.s. voted part of the plan. it's demand driven and improving the vaccination process with great efficiency and this is very good news for the world as well. >> european stocks have risen to pre-pandemic highs european bonds have rallied. the euro has rallied against the dollar strongly over the last year do you see the markets broadly or parts of the markets out of sync with the economic fundamentals, the reality on the

ground >> well, you know, we monitor that very carefully. as you know, we don't target any particular exchange rate, for instance we are very attentive to the impact it has on inflation obviously. but we need to make sure that from a macro credential point of view and from a microcredential point of view the banks are properly equipped, the regulatory authorities are properly equipped to deal with what would be unwarranted movements. but we don't see that at the moment >> we'll have much more from that interview later in the show including the one concern that president lagarde has that keeps her up at night which i found a little surprising, wilfred as far as the market headlines and takeaways from the head of the european central bank, i would say she says the recovery is delayed, not derailed, and expects the recovery to come fast in the second half of the year she said that the program, the

pepp which is their pandemic emergency response program can be extended or expanded and she won't hesitate to do so beyond that march '22 deadline of when it is set to end, so some reassurance there and she's trying to provide stability in the face of the economic fallout, which continues very much in europe >> totally i thought it was particularly interesting on the prospect of more fiscal spending i think she was trying not to say anything perhaps that would come across as criticism for the politicians. sure, it's fair enough to say comparing to the u.s. is like comparing apples to oranges, but you're absolutely right with your angle of questioning because the reality is maybe there's truth in that, but it's comparing great big afternoon els with tiny oranges when you look at the dollar amounts, the euro amounts, the percentage to gdp of relative points and on top of that bureaucracy to get it through, she said 16 of the nations have approved the latest package but there's still

another 11 that need to do so. so i think the speed and size of fiscal stimulus and the ease with whichit's passed here and you'd say in the uk as well versus the eurozone definitely leaves something to be desired we'll have to see, hopefully it's different, but last time that was a big hindrance in the years after the recovery, the early 2010s, one of the key factors why europe lagged and hopefully that won't be the case this time around the other point of course for a snapshot on what the market is saying, look at where yields are. yesterday risen and then the action today kept it in check a bit but huge sways still in negative territory shows what the market thinks the prospect for growth is there relative to here. >> i thought it was interesting she explained why they decided to move on those higher rates. they were worried about the impact that that would have, tightening financial conditions, which is something that jay powell and the federal reserve did not do in terms of move. she's satisfied now. i think she made that clear that

the market understands the ecf and is satisfied with the lower yields she said they're picking up the pace of vaccinations and taking it more seriously because as you know very well, it was a fiasco. they were well behind, the europeans, because it all went through brussels there was bureaucracy, they bet a lot on astrazeneca which had a lot of hiccups and there have been problems. but news today indicates they're placing bigger orders with pfizer it has a factory in belgium so that should be going faster and she sounded pretty optimistic. >> yeah, fingers crossed for that on all sorts of levels. big apples or clementines. we have how long left, 35 minutes left of trade. we are set for record closes as things stand the nasdaq is positive too, not in record close territory. still ahead, public figures and organizations from bernie sanders to president biden and to the nfl and mlb players have

weighed in on the amazon union vote now the results of in. we'll bring you the latest developments. and after the break, shares of carnival moving higher on a bullish wall street outlook and a nelauiw wst surrounding the cruise industry. those details, next. ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ ♪

cisco. the bridge to possible. 31 minutes left in the session. let's check some individual market movers. shares of beyond meat are moving lower on reports impossible foods is preparing to go public. the company is rumored to be

exploring an ipo this the next 12 months or going public through a spac beyond meat down 3%. credit suisse upgrading carnival from outperform to neutral the vaccine rollout makes a mid to late summer start reasonable. florida sued the cdc to allow cruises to resume. we spoke to carnival's ceo and here's what he said about the timetable. >> we are working with the cdc and the administration to come up with a practical solution the guidelines issued on april 2nd under the conditional sale order are not particularly workable, but we're confident with conversation and exchange we can get to something, so we can be sailing in the summer here in the u.s. >> shares of carnival up a couple of percent. fubo tv jumping on the news that it's won exclusive streaming rights to the qatar world cup qualifying matches including the ten teams in the football federation. we discussed that yesterday. somewhat of a surprise the scale

for world cup qualifiers but it is the greatest sport in the world, sara. >> so glad you could clarify the difference or the relative value on soccer, wilfred. time for a cnbc news update with leslie picker. johnson & johnson says it's aware of what it calls a small number of very rare blood clots in people who have received its covid vaccine but it says right now there's no evidence the vaccine caused those clots european drug regulators say today they are looking into four serious cases, including one death. europe's vaccination efforts have been hampered by concerns the astrazeneca vaccine may have caused a very small number of blood clots. a lawyer for the federal government says it has no plans to shut the dakota access pipeline while an environmental review is under way. that means a federal judge will be deciding what happens in response to the invalidation last year of a key environmental permit. the fbi has arrested someone who allegedly wanted to blow up

an amazon data center in virginia the 28-year-old man allegedly told an undercover fbi employee he thought the center was serving federal agencies he was arrested in ft. worth after accepting what he thought was an explosive device provided by the fbi tonight on "the news with shepard smith" the legal fight that still awaits amazon after workers rejected unionization. and zoos in england set to reopen after months of pandemic shutdowns. visitors will have their first opportunity to see some new additions, including these lockdown babies at the chester zoo. oh, my goodness. sara, you and i have basically lockdown babies. ready to emerge into the world be seen. >> yes cuter than the little baby giraffes, even. >> we're biased, but i agree. >> leslie, thank you. still ahead, the burrito bounce chipotle has been on a roll this week up nearly 6%, doubling over

the past year. we'll talk to thecfo as to wha the future holds. zillow is another big winner the company's president joins us to talk about the red-hot housing market. bonds are mostly higher. the 10-year is 1.66% overall yields have been lower but we did get a producer price inflation report that showed a rise of 1%, so certainly prices heating up at the wholesale level. we'll be right back.

this week marks two years since pagerduty's ipo. the stock has also been a big winner amid the pandemic rallying by more than 120% in the last year. joining us more in a closing bell exclusive is jennifer dijada some impressive statistics i touched on just a couple of

them there i guess the question is to what extent has your growth, whether top line or user growth, been accelerated by the pandemic as opposed to being part of what would have been your typical five-year structural growth outlook anyway >> it's nice to see you and happy friday i appreciate you all having me today. look, two years ago when we went public we predicted that the entire market was going through a massive transformation, that the underlying complexity to support the digital performances consumers expect would generate the need for a whole new technological environment to support that so i think that we have benefited from digital acceleration and even cloud migration over the course of the last couple of years as we've seen our business accelerated over the last two quarters with improvement in our net dollar retention as well as growth and new adjacent offerings like customer service

and security what we're really excited about is as different markets open at their own pace, we think there's additional opportunity in front of us. so overall i think it's driven by some of the macro trends that are really important but what the pandemic taught us is that digital business is here to stay and the technology to support the digital experience for the consumer is complicated and challenging. all of our employees are now going through this transition from being in the office to remote to potentially a hybrid environment. so you need a distributed software platform that's cloud made and enables realtime work to happen automatically and quickly when it matters for your customers and your business. >> jennifer, clearly i get all of those positive winds that are boosting your business at the same time, is it suddenly a very competitive space to operate in i feel like we have quite a few different companies that do

similar types of things that you do or do you think you're totally different from the rest of the field >> of course i think we're totally different. we really defined and created the digital operations through an ecosystem of 550 integrations and applications we enable customers to really find signal in the noise from their growing digital ecosystem so they can identify problems and challenges that are time sensitive, unpredictable, unstructured and mission critical and execute on them through teams distributed across their business and across functions. so we do more than monitoring, we do more than incident response and incident management and increasingly we're helping customers move from just responding more effectively to becoming proactive and we've seen our ability to do that deliver over an 800% rli in a two-month payback period pretty impressive for customers. >> i always struggle to figure out exactly what you do,

jennifer i know you're helping all of these companies, big fortune 500 companies deal online with their incidents, the problems that they have. can you just give us examples as to what some of those common incidents are and which industries are feeling them the most right now >> sure, it's a great question if you think about all of these industries that are being disrupted through new digital opportunities, whether it's financial services where we've seen a lot of strength as consumers want to engage with their money as opposed to a physical banking environment, it's really important that if a problem associated with someone working within their wallet or their transaction environment happens that they not only identify that challenge but resolve it before it has an impact on customers or transaction volume, for instance same thing in food delivery. if something goes wrong in food delivery quickly, it can impact your business in a material way in a very, very short period of time so it is about not just identifying that problem but distributing the work to diagnose and solve that problem

very quickly, then learning from that and deploying change back into your continuous development environment quickly as well. we do all of those things in a cloud native distributed very e easy-to-use, easy-to-employ environment. >> jennifer, thank you for joining us. we've got about 20 minutes left before the bell the s&p is up 0.6 of 1% tracking for a record close it would be at least a third of the week if you look at what's outperforming, consumer discretionary, health care and industrials. energy, staples and communication services lag. still ahead, our weekly doctor's visit dr. scott gottlieb joins us to break down the new headlines surrounding pfizer and moderna vaccines. april is financial literacy month. cnbc is committed to sharing messages from business and thought leaders about the importance of financial education. here's former sba administrator maria contrara suite.

>> for me financial knowledge is everything, it's empowerment you can have a good idea but when you have financial empowerment, you know how to execute, you know how to access capital and you can scale. i came here from mexico at the age of 5 i learned about how to save money, how to invest it and how to use it well i was able to start a bank, the first hispanic owned bank in california in two generations.

hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed,

revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

straight ahead, boeing's new warnings about the 737 max and how defense stocks could be hit by the new white house bgeudt. "market zone" is coming up next. ♪ if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances- designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals.

like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right. ♪ ♪

sales are down from last quarter ♪ but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

13 minutes left in the trading day. we are now in the commercial-free market zone. cnbc's commentator mike santoli is here to break down these crucial moments and we've ought ad is odyssey and jason snipe here at well we'll kick it off with the broader markets. stocks at session highs rallying at the close the nasdaq on track for weekly gains. both the dow and s&p 500 are on track for record closes, mike. if you look at what has worked this week, really strong gains out of technology, consumer discretionary. growth trade back front and center. >> that was the story for the week but today the cyclicals got a little bit of a bounce too so it's a little bit of melt-up mode at this point the market i relentlessly higher in this very calm way

funds say we can take bigger positions and we're going to have greater exposure because volatility is lower so that's a self-feeding mechanism we might be in for. plus that's against no fundamental selling pressure yes, you can talk about valuations and positioning being stretched. i've been talking about it for weeks. what isn't happening is people feeling as if there's a macro driver for selling into this strength because the expectations for corporate earnings and this huge economic snapback are very well entrenched >> do you agree with that, jason? is it hard to see what could be the catalyst to stop this? >> i think there's a confluence of positive macro data the last couple of weeks. we had labor numbers that were great, ism numbers that were blowout. and the vaccination distribution has been going really, really well over the last several

months, five times the average of what the globe is doing so i think it's hard to trade against this market at this point but we'll see how earnings look over the next couple of weeks and going into the next few quarters >> ten minutes left, we're up 0.6% on the s&p consumer discretionary leading today. amazon employees voted against a unionization drive in alabama. dee bosa has the story for us. >> wilf, it was a key victory for amazon in its most significant labor challenge ever in the u.s. but this is far from over the union battle over the last few months captured national attention with lawmakers and labor activists in other parts of the country weighing in in fact senator bernie sanders just issuing a statement on the results saying that he is disappointed, but not surprised. quote, it appears that some of amazon's anti-union efforts may

have been in violation of nlrb law, close quote indeed, guys, the retail union will challenge amazon's, quote, lies, deception and illegal activities amazon, though, anticipated these claims, rebutting in its own statement our employees heard far more anti-amazon messages from the union, policy makers and media outlets than they heard from us guys, an indication that this is probably just a taste of the drama still to come. it could also be just the beginning of grassroots organization by warehouse workers at amazon, now the second largest private employer in the nation. back over to you >> dee, thanks so much for that. mike, a strong session for amazon but it's been a strong week, week and a half anyway it's quite an attractive little spike up in the chart. >> yeah, after months of really doing very little, this was really the poster child for mega cap growth that got all of its

gains several months ago it's all in the books by september and then bided its time and waited, waited, waited. it's still not back up to the february highs i think it's really not that much in the grip of any fundamental debate here. yes, obviously long term it really matters whether labor costs are going to be and what labor relations look like but in the near term it's about how much are you going to pay for this massive economic force in the u.s. economy and people feel as if not buying near the highs, might as well give it a shot that's just a very mechanical flow type move, it's not news driven >> jason, what do you think? do you think this removes any sort of weight if there is one, there was one on amazon stock or will the politicians and union leaders keep at it >> yes i think this is a major win for amazon clearly and clearly obviously they have been a huge covid winner last year and trading sideways since labor day.

i've seen some energy in the stock over the last couple of weeks. i've really focused on their aws business and i think they'll do well into earnings and we'll see how they continue to move forward throughout this year. >> let's talk boeing shares are under pressure today after the company warned of a potential new issue with 737 max planes phil lebeau with the details phil >> boeing is under a little bit of pressure in part because the company is telling 16 customers, 16 airlines to temporarily ground some of their 737 maxes we say some because we're talking about maxes that were delivered after the faa ungrounded the fleet which happened in november so here's what we're looking at right now in terms of the max grounding. approximately 80 planes are impacted production change causing a possible electrical issue. by the way, this has nothing to do with the mcas flight control software which was at the root of the problems for the 737 max over the last couple of years.

the fix time could take a couple of hours or even a couple of days but it's not a long-term problem facing these airlines. in the united states among the big carriers who have the 737 maxes that are affected by this, american, southwest and united they have all pulled the max from their schedules while they check for this potential electrical issue involving the 737 max. guys, back to you. >> so it sounds like, phil, what you're saying is this normally wouldn't have been a huge deal but just because of the issues and the attention that boeing has garnered -- >> correct. >> -- overthis plane and all of the inspections and all of the issues, every single headline like this counts. >> let's be clear. whenever a manufacturer says do not fly this plane until you check out this issue, it is significant. however, if this had happened and we had never seen the max grounded before, it might be a small mention at most. it's getting a lot more attention, as you mentioned, because of what happened with

the max. >> jason, this temporary blow or permanent blow for boeing? >> i think it's a temporary blow here you know, if i'm looking at it and downloading what i read this morning on it, it appears to be an electrical issue. obviously boeing did not do well last year, was down about 34%. it's up significantly this year, about 17.5%. you know, i think this is a pr issue, but i do think it won't be a major blip going forward. >> the white house unveiling an outline of its budget proposals today and morgan brennan has a look for us at how that could hit defense stocks morgan. >> speaking of boeing, one of the names in focus here, $753 billion. that is how much the biden administration is proposing to spend in fiscal 2022 on national defense. a 1.7% increase versus 2021. $715 billion is for the pentagon specifically up 1.6% or

down 0.4% adjusted for inflation, which is, i should note, better than the worst case expectations as great as a 10% cut. the key now, where that money would go we're still very light on the details. we don't get those until next month. key elements will include optimize naval ship building, nuclear triad. northrop grumman, raytheon have been trading higher but others are lower. keep in mind all of these names have seen a pretty good run in just the last couple of months sara. >> morgan brennan. morgan, thank you very much. mike, was this a lower-than-expected increase in spendsing? it's definitely lower than the rate we've been seeing under the trump administration >> if you look at how the market has been trading, these have been underperformers you look at lockheed or

northrop, they have not been as cheap relative to the market as 2009 everyone loves every industrial because there's massive leverage to the economy as opposed to government defense spending. so i think the market has discounted a relatively poor outcome for these companies and maybe this is a slight relief relative to what people could have expected. it's interesting how they're very much core value names there was a lot of time during the trump administration when they needed ata big premium just because it assumed there was always upside to defense spending growth. >> maybe slightly better than expected, jason, but there's lots and lots and lots of spending going on last year, this year and in the year ahead. if you're getting just behind inflation if it increases, does that ultimately suggest that you want to be in other cyclical areas of the space other than defense? >> yeah, i think so. you know, if i looked up the defense budget, i think it's

slightly a net positive. i think as mike mentioned, there was some folks on the street that thought this might have been potentially a 10% cut worst case scenario. but to be honest with you, we haven't played these defense names. we've been other areas of th market where we see more opportunity. so i think at best it's a net positive going forward, almost like an inflationary increase from a spending perspective. >> just over two minutes to go on the trading day mike, the dow is surging, up more than 100 points since we started the hour. >> it's a little bit of an upside air pocket here people may be front running the routine monday however, not internally as strong it's a very indexymove you see on the new york stock exchange actually declining volume, exceeding advancing volume so that doesn't necessarily invalidate what's going on but it's narrowing leadership at least at the moment so if you want to also take a

look at new 52-week highs and lows, that's a much more positive picture both on the new york stock exchange and the nasdaq 268 new highs. that's pretty good but the overall skindex is at a high 20 new lows. the vix mentioned earlier, you've seen this volatility collapse it's been a much quieter market. realize volatility down, the mega caps leading. that usually does put downside pressure on the vix and sort of reinforcing maybe higher equity exposures on systematic strategies, wilf. >> mike, thank you just under one minutesara said,e to take us, the dow up 0.8%, s&p up 0.7%. we'll have record closes on both indices. the nasdaq also rallied but only up half a percent and still a little way off its record close. health care, consumer discretionary the best two

sectors, up 1% three sectors in the red energy is the worst performer, down about half of 1%. we do have the vix lower as mike as saying, 16.6, well below the 20 mark, the 10-year hovering around 1.65. at the close, record close for the s&p 500, up three-quarters of 1%. the dow is up 0.9%, the nasdaq up half a percent, not quite a record there, but the nasdaq the winner for the week, 3% of gains to the dow's 2% of gains for the week as a whole, sara. >> very strong finish to what was overall a strong week for the bulls. welcome back, everyone, to "closing bell. i'm sara eisen along with wilfred frost and mike santoli take a look at how we finished up the day on wall street for a friday the dow surging into the close, up 300 points to finish up 299 at a new record high united health actually added the most points to the dow today, 73 on its own

honeywell, salesforce, home depot. it was a mix of the tech names and some of the industrials. boeing was one of the biggest losers, took 16 points off the dow. j&j also lower health care was a big leader as well as consumer stocks. amazon helping that surge. industrials also having a very good day and the nasdaq with a 3% up week gaining half a percent today, thanks in part to the strength in technology which was back this week. apple one of the biggest winners in the qqq the russell 2000 index of small caps lagging, closing flattish and has been an underperformer so far chipotle a big winner on wall street as restaurant stocks rally amid the economic reopening. coming up, the company's cfo on the outlook for the restaurant industry as well as its brand new plan to offer employees free college degrees. first off let's talk about this market, jason snipe is still with us.

barry bannister from stifel joins the conversation mike, stocks had a pretty strong week >> i don't think it was a reaction very much in theway o headlines. i think it was basically an atmospheric move it's piling on to the upside cliche has become a cliche for a reason because they often are true never short a dull market, don't fight the fed, don't fight the tape all of them are lining up in the bullish camp i do also think this complete sapping of volatility is reinforcing all that's going on. however, the expectations of the economy are the context for everything the fact that you do have corporate earnings estimates still going up and very tame treasury yields and credit markets are very strong, it's all in the mix i just think this week was just an extension of an ongoing trend that's been pretty relentless. you're now getting to levels, you have to look at the s&p where it's trading and say, okay, maybe you're going to set

yourself up for a little bit of a test right here just because of overbought readings and all the technical stuff that usually say it should start to slow down for now but has not done so yet. >> barry, what is the key risk you're looking out for that could trigger a pullback or derail things more meaningfully? >> the reason for the rally was the pullback in the bond yields, real and nominal on the 10 we have a lot of leverage, a lot of convexity to very smaller changes in yields. so that was the main driver of the pe-driven bounce in growth getting a bit of a reprieve. so that's what we are watching there. the other one that you have to watch on the signal basis is inflation. so we got some front-end inflation in the ppi, we've seen bottlenecks, we saw it on the pmi index. if we start to see more durable inflation and the pe inflation

goes down, we could run into trouble in may after the seasonal strength fades. >> so you don't believe the fed that it's going to be temporary and not cause any real move in interest rates or tapering or anything like that >> i was listening to vice chairman clarendon this morning and they're hopeful as anyone that it's more durable and not temporary inflation. they would like to see a sustained increase in inflation above the 2% target before they consider having succeeded. so if we've thrown more money at this economy than we spent on world war ii in the last year. the covid spending is $5.75 trillion world war ii cost $4.1 trillion in real dollars. we've got $120 billion a month, $6 billion or more a trading day of qe. if we can't generate inflation, we never will. so we'll see

>> mike, what about the ark complex, those sorts of stocks have they performed alongside everything else this week? >> no, they haven't been a feature of the leadership here yeah, there was a bounce this week but in general you've had the fever break multiple ways over the course of the last three months you had the gamestop frenzy, the melvin capital blowup. tesla has really done not much of anything. you know, the market has absorbed that and moved on to the next thing even this sort of margin call liquidation with archegos. so all of these provided little checks for risk appetite along the way. is it going to be something big or do we really want to keep risk on here and they say yes. by the way, the s&p 500 year to date up about 10%. 9.92% just in price so you're basically race right to the consensus year-end target for the s&p 500 for most strategists

out there. so obviously the market itself is just kind of not really playing along with the scenario that one of these little blowups is going to take the whole thing down. >> jason, i'm just looking at what didn't work this week and energy is the notable laggard. that's the only sector that closed lower on the week, down 4% but it's still the best performing sector so far this year, up 27% that and the russell 2000, which energy is a part of that, but also ended the week lower on a sharper up week. what do you do with those two sectors which had been winning the day? >> i think some steam has come out of the sales on some of those trades obviously as you mentioned, they have run up quite a bit since the beginning of the year. i think the market has refocused on some other areas. the 10-year has quieted some over the last week and a half. i think folks are kind of focused on large cap growth, established growth obviously you've seen that with

the nasdaq run this week and i think some of the value oriented names obviously have moved some with financials up about 18% year to date and going into the print next week i think we'll see some really strong numbers so i think that's where the market is as it stands right now. >> jason snipe, thank you for joining us it's good to see you barry bannister, you as well have a great weekend. restaurant stocks finishing the week in the green amid hopes that more consumers will resume eating out as vaccinations pick up as demand rebounds, restaurant and fast food chains are ramping up hiring and beefing up benefits to attract workers. taco bell, starbucks and olive garden chipotle saying employees will have the opportunity to earn debt-free college degrees in a variety of fields. joining us is the chipotle ceo jack, great of you to join us.

is this about getting workers and retaining workers in a more competitive environment? >> this is something we've been doing for a number of years now. what we announced isn't a brand new program of debt-free degrees, it's an expansion we've had debt-free degrees with a number of universities but we've expanded that to ten universities and different degrees. so i would say this is just the next step up it just shows that we are a company that will always invest in our people. >> do people take advantage of these programs a lot of big companies have been doing this, and you yourself have said you've been doing this debt-free colleges but don't people just want to make a paycheck? are they able to earn more by doing these -- by enrolling in these college programs that you're offering? >> sara, i think that's the big misunderstanding in the press the headlines talk about how much they're making. but 85% of the folks that take advantage of our debt-free degrees are crew in our restaurants. when folks take advantage of

these debt-free programs, they're three and a half more likely to stay with us and seven times more likely to move into management so we see this as an investment in our people. if they want to put the time and energy into learning, we want to put our investment dollars behind that learning >> and it's great to hear this initiative, jack, and clearly an investment in your people. that said, separate question over the next ten years, particularly with this big digitization push that you're making, will your overall labor needs be lower per unit of sales or per location, however you measure it, in the next ten years than it was the last ten years? >> yeah, you know, wilfred, on the margin it does take a little less labor than the front line but i would say it's on a margin i think more importantly, our business is dpgrowing. we're going to add 200 restaurants this year. so just for that layer of growth alone we need between 350 and

450 salary managers and a thousand hourly managers as well, not to mention many, many thousands of crew. so we are in a growth mode right now. so we need more people, not less we know that if we invest in our people, they're more likely to bring their full self to chipotle appeared it's a win-win situation for both of us >> you're in growth mode and the stock has been more than a double in the last year. another sharp week of gains. high expectations, though, that these high double-digit comps will continue. does that put pressure on you? >> well, listen, we put pressure on ourselves we have high expectations. high expectations for our food, high expectations for our people and then high expectations for our results as well. what's happening, though, and this is what i think the market is picking up on, is the pandemic of course really, you know, put some charge behind our digital business but as we see covid move behind us and we still have a ways to go, we're

keeping most of that digital business, about 80%. as the dining rooms open, we picked up 60% of what we lost when the pandemic started so we're going to be ahead of the game when the pandemic is fully behind us so we're optimistic about where we go from here and we always have high expectations for ourselves. >> what about bottom line costs, jack, where are you feeling the pressures? food inflation we mentioned labor as well >> yeah, food inflation we're watching very closely. it's one of the more difficult years to predict what we can't predict right now is what kind of supply and demand out of balance there will be right now it seems pretty benign it seems like things are pretty tame so i'm not really worried about that we expect there's likely to be labor inflation but that's not really anything new. we saw mid-single digit labor inflation. those are things that if it costs a little bit more to bring in top candidates into our

business, we're totally fine with that. even though the cost of hiring people and the cost of, for example, these debt-free degrees, they show up on our income statement as an expense but we see that as an asset and an investment. when we feel like that investment pays off year after year after year because we run all of our restaurants, we don't franchise. we have 90,000 employees if we treat them well, we know they'll treat us well. >> can you give us an update on some of the new menu items which have also been catalyst for the stock and analysts enthusiasm, the cauliflower rice and the potential you see for price increases? >> cauliflower rice was great. we launched that january 1st that's a limited time only so that will be on our menu for a little bit longer and then we'll move on from that. quesadilla quesadilla was the number one most requested item. it took us a couple of years to get it right from an operations standpoint that's going very, very well so we're very excited about that.

we've got other things in the pipeline as well for example, we're testing brisket right now, its early days, but that's looking promising as well. our culinary team is always cooking up something in the kitchen. and so we're going to continue to innovate but those are the things right now that we're focused on >> jack, thanks so much for joining us. >> thank you up next, the president of zillow on whether the red-hot housing market is showing any signs of slowing down. plus former fda commissioner dr. scott gottlieb responds to vaccination rates to help the global economic recovery we're back in 90 seconds we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize

and improve the electric grid. emerson. consider it solved.

new data from zillow shows it could be another hot year for the housing market the company forecasting 6.61 million existing home sales, a 17.2% increase from last year so it's been a big winner rally buying 260% in the last year joining us for more on a "closing bell" exclusive is the zillow president, susan. >> thanks for having me. >> clearly all of the year-over-year statistics are fabulous, though there was in fact some data out from red hat earlier that did suggest things were plateauing a little bit when you look more month-on-month and quarter-on-quarter are you seeing any of those trends as well or is it just all

upwards at the moment? >> yeah, we did see a small lag in pending home sales in february, but that was due to some terrible weather in the northeast and the south and the midwest and also some lagging listing inventory. but all the indicators that we see say that this housing market just continues to be hot and there are a lot of reasons for that one is safety has been this giant concern for would be movers, and so vaccine progress is tremendous. we're starting to see this go a little more. we also know people have been waiting for certainty about their jobs, how much they can be expected back in the office and when home prices continue to appreciate also this week google trends told us that more people are searching for the phrases should i sell my house or should i buy a house than in google trends history. what we know is moving is on a lot of people's minds and we are

imagining a lot of would be movers will come off the sidelines here. >> where are we on the sort of deurbanization trend that clearly was at play for a lot of last year. do you think that's peaked >> yeah, i mean we really believe in this idea of the are great reshuffling is what's happening. it's less about this flight from urban and flight to suburban and more just about people moving. just people wanting to get into new spaces and, you know, this idea of suburban flight, we've been seeing that for many, many years. this natural you have a family, you get a little older and you want to move somewhere where you have more space, so we think that great reshuffling is going to continue. >> but prices are rising quickly, susan, so isn't that going to eventually at some point impact affordability and start to hurt the demand >> i mean that's what economics 101 will tell us, but i think the part that's really important

to remember are mortgage rates right now. even though we're seeing those rise a little bit, they are as historical lows. and those mortgage rates are really what feed the affordability. and so as long as those stay low and also we have this pent-up demand from buyers as well so it's quite possible that we see a bunch of listings come on and there's enough buyers to scoop them up and we'll stay in this place we're at right now. >> are you seeing increasing take-up of zillow offers and what sort of savings are people experiencing if they're using that relative to traditional methods to exchange? >> thanks, wilf, we love talking about zillow offers. we're continuing to put out really strong offers, especially in this time, sara, as you said of pretty significant home appreciation the most recent innovation with our i buying zillow offers we're excited about is this actually

putting live offers on houses. so zestimates have been this incredibly important product where homeowners come to zillow, want to see their home value and now in 23 cities we've transformed that to be an actual cash offer so for sellers who are looking for a strong offer, certainty about closing, flexibility about closing, especially in this market where, you know, when and will you be able to find your next home, we're seeing a lot of customers that think that's a pretty great thing. >> what are the hottest markets right now? >> back to this suburban question, we're seeing a lot of excitement around places like columbus, ohio, austin, nashville. and what that is, is these places where there's a metro center, so you have those conveniences, you have the culture of a city but then there's the suburban rings around them where people can

find more space for their dollar so those places continue to be hot. >> really good check-in, susan, on the state of housing. susan daimler, thank you >> thanks for joining us. we've got some breaking news on jessica alba's company. finally filing for an ipo, julia? >> finally filing its s-1 for an ipo. this is a long time in coming, but you're right the honest company founded by jessica alba is looking to trade on the nasdaq with the symbol hnst the company revealing that its revenue grew nearly 28% from 2019 to more than $300 million in 2020, revealing it also generated a net loss of $14.5 million last year but it did increase its gross margin by 370 basis points to nearly 36% now, some interesting stats about what is the honest company here 63% of its revenue currently comes from diapers and wipes

that business grew over 16% last year, but its other categories, including skin and personal care and household and wellness, both of those categories, those smaller growing much faster. another interesting stat on the company's revenue, more than half of all of its revenue comes from amazon, target and costco combined so, sara, we'll see what happens in terms of timing, but this is an ipo that we've been waiting for for several years now. >> several years, julia. the company has had some controversies over ingredients, losses a big "wall street journal" investigation that found sulfates in the laundry r laundy detergent. have they gotten past that >> it seems that they have they have really changed their business model over the years. i interviewed jessica alba many years ago about people were subscribing to honest company and getting their monthly delivery of diapers and other household cleaning products. now they're really selling a la

carte and through these big retailers such as target and amazon so the business has evolved dramatically at this point the fact that they're going public does indicate that they seem to have put those controversies behind them >> touting also some of the statistics here, 68% of the workforce are women, 53% of leadership are women, which makes sense because women are most of the buyers julia, thank you julia boorstin hard to believe, but earnings season set to kick off next week up next, mike santoli looking at what wall street is expecting and whether the strong growth is already priced into the market. plus coinbase is set to go public next week in a highly anticipated direct listing we'll tell you what investors need to know ahead of that offering. and a nice moment between competitors last hour. elon musk responding on twitter to a report saying nio has now produced more than 100,000 electric vehicles writing congrats to nio. that is a tough milestone. 'lbeig bk. the lexus es, now available with all-wheel drive.

this rain is bananas. lease the 2021 es 250 all-wheel drive for $339 a month for 39 months. experience amazing at your lexus dealer. will there be an ev for me? all-wheel drive for $339 a month for 39 months. what about me? one for me? you mean us? what about me? and me? how about us? yeah, how about us? great question. wait, can i get one in green? got one for me?! hey, what about me? what about us? is there an ev for me? ev for me? us? what about me? me? for me? ♪ ♪ (dog whimpers)

so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

stocks closing at record highs again today. both the dow and the s&p 500 mike santoli is back with a look at expectations ahead of earnings season which officially kicks off next week with the banks and the question is how much good news is already baked in. >> it always is the question

expectations are definitely high they're probably appropriately high over the course of the first quarter. the s&p 500 estimates went up by 6 percentage points. normally they go down by 3 so analysts have had to chase earnings higher in terms of the forecast for the past quarter. this shows a leading earnings indicator from bank of america, it's global, not just the u.s., so here is the model which suggests what forward quarter earnings will look like and it dill foretell this huge snap-back. what they're basically saying is this suggests the second quarter, so the one we're in right now that will be reported later in the summer, is probably peak for earnings growth for this phase what that means is you're going to have slower pace of growth after that and tough comparisons. that's down the road the question is what is priced in take a look at the s&p 500 forward earnings valuation over the course of the last few years. what you'll see is it's actually plateaued since last year. the pe has hovered in this 22

range since last may obviously the market is a whole lot higher than it was back then but earnings forecasts have kept pace yeah, this is richer than it's been for 20 years but it has hung out here. normally the second year of a bull market you do get some compression in pe but earnings usually makes up the difference. i think we'll be in that mode come the summer where it's going to be reliant on profit growth and sustainable profit growth as opposed to people taking share prices up in anticipation of that. >> mike, great stuff moderna shares rallying on a new study showing its vaccine antibodies last at least six months former fda commissioner scott gottlieb reacts to this and j&j's manufacturing issues coming up. plus the push for evavaccin passports leading to a surge of vaccination cards. denails coming up. ha ha. jill it with that unexpected bill from her back surgery.

aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. hold on, i think she's trying to give us a side-eye... because she can't turn her head! (laugh) get help with expenses health insurance doesn't cover. get to know us at aflac.com we see temperature control software giving everyone a shot at vital vaccines. at emerson, our software is shepherding medicines through every step of the cold chain, helping track conditions to keep each dose safe and effective. emerson. consider it solved.

did you know that petco, to keep each dose is now a health and. wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪

petco. the health and wellness company. let's have a look at how we finished the day on wall street. resoundingly strong hour of trade surging into the close, up 0.8% on the s&p 500, 0.9% on the dow. half a percent for the nasdaq. that was enough for record closes for the s&p and the dow, not quite for the nasdaq nor the russell. the russell in fact only just positive and was negative for the week, down half a percent compared to the nasdaq's 3% gain, the best performer for the week. time now for a cnbc news

update >> hello, everyone here is your cnbc news update. testimony today at the derek chauvin trial, the medical examiner, dr. andrew baker, said that the way police held george floyd down and compressed his neck is more than he could take given floyd's existing heart problems. the house ethics committee is investigating matt gaetz citing public allegations that the florida representative engaged in sexual misconduct and illicit drug use gaetz has hired two new york lawyers saying they'll take the fight with those trying to smear him with falsehoods. the state department is making it easier for u.s. officials to meet with their taiwanese counterparts earlier the white house said it has growing concerns about chinese activity in the taiwan strait. and a senior white house official tells reuters that the administration is looking at sending conditional cash transfers and covid vaccine doses to guatemala, honduras and

el salvador. the goal would be to improve conditions in those countries to try to reduce the number of people who want to escape to the u.s. you are now up to date sara, back to you. >> rahel, thank you. up next, former fda commissioner dr. scott gottlieb on pfizer's expanding their vaccine to had aadolescents. as we go to break a look at the winners and closing as we did close with a new record dow high hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown,

your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

some promising vaccine news out today. pfizer requesting emergency use authorization for its covid-19 vaccine to expand to adolescents between 12 and 15 years of age moderna's vaccine, the antibodies last at least six months after the second dose joining u is former fda commissioner dr. scott gottlieb. welcome back, dr. gottlieb,

didn't to have you. >> thanks. >> so on the question of younger adults, good news that pfizer is going after the teens now. when it comes to younger children, which is being tested, are there different safety concerns and different dosages being tested >> typically the fda would look at 12 to 15, which is the age group that pfizer or the company i'm on the board of filed for today as little adults and so they do look at children differently, of course but typically the kinds of considerations are similar when you get below 12, you start to think about reformulating a product like this, a vaccine, because below 12 you probably see more of an immune reaction to the vaccine itself so you might test a lower dose. that's what the companies are doing. pfizer is doing that, moderna is as well where they're doing dose de-escalation studies. basically testing lordosis in younger kids to see what's the lowest dose you need to elicit an immune response 12 and above you could use the

same dose typically. this is true of a lot of vaccines below 12 you might have lower doses and that's what's happening here. >> dr. gottlieb, there was a story that because of the issues around the astrazeneca vaccines that france will offer one of the mrna vaccines to people that have astrazeneca for the first dose does that make sense to you? >> it depends on what they think the relationship is between the side effects they're observing and the vaccine itself first of all, whether there's a causal relationship but they believe there could be so they're taking some regulatory steps. if you believe that the mechanism, if you will, of what you're observing might be immune mediated, meaning the vaccine is triggering an immune reaction, it might make sense because you'd see more of that immune reaction perhaps with the second dose than with the first dose.

and so by sparing that second dose, you're less likely to elicit that immune reaction. i don't know that's what the europeans are thinking, but the kind of side effect that they're observing that they think could be related to this vaccine, which is destruction in rare cases, destruction of platelets, sometimes that is an immune mediated reaction. >> dr. gottlieb, we know how important the vaccine distribution is for the economic story in this country obviously, but globally i had the chance to talk to fed chair jay powell this week listen to what he said about the recovery and global vaccines >> the recovery, though, here remains uneven and incomplete. the burden is still falling on lower income workers the unemployment rate in the bottom quartile is 20% there's still 8.5 million people out of work. this unevenness that we're talking about is a very serious issue. viruses are no respecters of borders. until the world really is

vaccinated, we're all going to be at risk of new mutations and we won't be able to really resume activity with confidence all around the world >> i thought it was a really interesting point from the fed chair talking about the need for global vaccinations. when is there going to be access for the global population? i think right now 0.1% of vaccines have gone to poorer countries according to the wto >> look, i think you're going to see more vaccine going to low and middle income countries in the sendcond half of this year there's going to be more supply including with pfizer. pfizer has been working with covax to distribute vaccines to low income nations the thesis was was that the j&j vaccine and astrazeneca would be used in lower income countries because they were easier to distribute and didn't require as complex storage requirements in terms of the cold chain they needed those vaccines have run into

this challenges. j&j on supply issues and astrazeneca on the issues you highlighted earlier. so i think we'll be looking towards the mrna vaccines to distribute them globally we need to put more resources into these countries to provide for that supply chain. i think this is something that the u.s. government is talking about, thinking about, so i think there will be action here. i think we should be doing something on par with what we did where we pour in significant resources into low income countries in particular to try to get the logistics in place that we need to distribute these vaccines we might be more dependent on the mrna vaccines at least in the current cycle than we thought we would be initially. >> i wonder how much comfort we can have in this country it's great we are racing ahead with vaccinations, but how comfortable can we feel if so little of the global population is vaccinated? obviously the mutations will come from there, right, and eventually could come back and supersede the impact of the vaccine. as long as people aren't

vaccinated, don't we risk having these new and dangerous mutations? >> as long as this virus is circulating at the levels that it currently is around the world, there is persistent risks. i think there's greater risks from countries adjacent to us like mexico where there is a dense epidemic and i would focus resources on trying to address that problem and address our neighbors. it is probably the case we're not going to see an endless cycle of mutations with this virus. this virus has a limited repertoire in terms of how it's going to mutate and we've seen a good portion of that there's still going to be things that surprise us and there have been things that surprise us along the way but we've probably seen a portion of the repertoire of this virus so it is possible that we could develop a complement of vaccines that protect against the majority of mutations that we're likely to see. now, that's a big risk to take it's an assumption that even if we have continued spread, the kinds of mutations aren't going to continue to threaten us in the way the current nmutations

have we still should be getting vaccine to global environments we still need to make sure that vaccine is made available in low and middle income countries because this virus is destabilizing. there's a lot of reasons we want to distribute vaccines some have to do with our own interests but a lot of it has to do with taking care of the global population and recognizing there's a lot of people suffering and the virus itself is destabilizing. >> are you worried by any of the little spikes that we're seeing in regions across america, michigan, for example? >> look, i'm always worried about it that represents a lot of suffering as well, especially the very dense epidemic in michigan in the metro detroit area i don't think that these epidemics that we're seeing are going to spark a new national epidemic i think we expect that he had there would be regional flare-ups and we're seeing that. i think after two or three weeks of probably plateauing around the country in terms of cases we're going to start to see continued declines heading into may. we need to do what we can to put out these fires. michigan, i think, took some

prudent steps tapping the brakes a little bit the administration took a prudent step trying to get more vaccine into that city i wish they had done it earlier. but i do think these flare-ups we're seeing regionally are probably going to decline. a lot of them look like they're related to opening schools the cases are in a high school age set. that's not an argument for why we shouldn't have opened schools, i think we made a right decision opening schools, but schools did become sources of outbreaks. we need to make sure we're adequately protecting the kids. >> i was wondering of what you made on some of the michigan numbers on vaccinated people getting infected with covid. 246 michigan residents that were considered fully vaccinated two weeks after the second shot getting covid. 11 hospitalized and three of them died. aren't those numbers scary because they were considered vaccinated if you multiply that at a grand scale or should we not take it like that? >> yeah, i actually haven't seen that data. i've been looking closely at the new york city data in terms of

what they have seen about people who were previously infected or vaccinated getting infected with covid. we haven't seen numbers out of proportion of what we normally expect i can't comment on the michigan numbers because i haven't seen them so i don't know what the denominator is remember, even in the clinical trials people who were fully vaccinated got infected with covid. and it is going to be the case that with these new variants you might see more vaccine break throughs the vaccines still look to be very effective against the variants but perhaps less effective. i just can't comment on it because i don't know what you're talking about. >> it was a small percentage but still noteworthy and unclear also i guess whether they were picking up prior infections that happened before the two weeks out of vaccination. >> right you worry about data sets like that because you don't know what the doughenominator is. you don't know if there's people who are mildly ill that you're not detecting. so i think it needs closer examination. remember, someone who has been

vaccinated probably is less likely to go get a covid test because they might get sick and think it's something else and might not assume it's covid. so i need to take a close look at that. i will as soon as we break off this segment but it's something that you need to look at >> dr. gottlieb, it's always a pleasure thanks for joining us. >> thanks a lot. up next, fake coronavirus vaccine cards are becoming a hot new scam and popping up in online market places what companies are doing to crack down, ahead. plus, don't miss the premiere of "tech check" monday 11:00 a.m. featuring an exclusive interview with the uber ceo an outstanding lineup of on-air talent and wonderfully pduroced as well. we'll be back in a couple of minutes.

man: "fender bender," take 1. tonight's matchup: me versus an ugly fender bender. if i can eke out a win, it's going to be a miracle, baby! uh, mr. vitale? it wouldn't be a miracle because geico gives you a team of experts to help manage your claim. it's going to be a nail-biter. no, the geico team is there for you 24/7. geico is awesome, baby! (shouting) too much? i think we got it. yeah. thanks. thank you. geico. great service without all the drama.

we see increased efficiency connected to more comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead

and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow, that is easy. so, need another reminder? no, no no, i'm good. uh, yes please. oh. ho ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com. law enforcement officials are warning about a new online scam involving vaccination cards. aim o eamon javers has the details. >> reporter: people around the world are celebrating with a card like this one and looking forward to a post-lockdown life. they think many will require proof of vaccination for people to travel, entertain themselves or even go to work that has led to a black market online for fake vaccine cards as some people wanting the benefit the card without getting the

shot now the major internet sales platforms tell cnbc they're cracking down on people trying to sell those fake cdc vaccine cards. ebay said we are taking significant measures to block or quickly remove items on our marketplace that make false health claims including vaccine i.d. cards or similar items that could be used to falsely represent that a person has received the vaccine facebook also told us that fake vaccine cards violate the company's policies for sale on its site ebay says it has removed or blocked 50 million listings overall that violate its policies around covid including price gouging and false medical claims the irony is, wilf, these aren't that hard to falsify all it would take is a printer and heavy duty stock paper this is pretty flimsy. some argue we may have to come up with a more secure system overall to verify that

back to you. >> i know we're up against time but that's exactly my point. the card is so unimpressive in the first place, i'm not sure there needs to be a market to fake them, you could do it yourself my fear is when you travel -- >> if you want to photo shop you can definitely do it. >> these foreign countries when they get to you get to countries are they going to recognize. >> ♪ ♪ ♪ ♪

♪ s. no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪

we've got some news on melvin capital the company at the epicenter of the gamestop saga leslie. >> we have their march numbers and first-quarter numbers, numbers we've recently been tracking closely after the gamestop saga which caused significant losses for the firm in january they were up 20% in february but this month they were down about 7% for march which brings their total first quarter returns to negative 48.8%. this is all according to a person familiar with their

numbers. and a spokesperson for melvin declined to comment on those we don't have more details on exactly what positions it was that kind of caused the large swings in the first three months of the year 1st down then up then down again. we're continuing to report that. we learn more we'll get it to you. >> down 49%. pretty good, compared to archegos at least. >> after the break, what keeps central bankers up at night. candid answers from fed chair powell next.

cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

this week i had a chance to speak with the world's two most powerful bankers fed chair j powell and president christine lagarde and asked them what's keeping them up at night listen. >> first mention the nine or ten million who are trying to get back to the lives they had, to get back to work, you may know this, there's a pretty substantial tent city i drive by on the way home from work on virginia avenue. we need to keep reminding ourselves though some parts of

the economy are doing great there's a large group who are not. i really want to finish the job and get back to a great economy. >> i'll tell you what worries me this is not necessarily a central bank govern's main preoccupation traditionally but those who will be crushed most out of this current pandemic and economic crisis will be women, particularly young women, and i'm very concerned that the ground that we had gained over the last few years be not lost and that they eventually lose out most as a result of this situation. so that's, you know, i think of my little girls. >> christine lagarde president of the ecb j powell president of the federal reserve i thought they were candid, not necessarily what you would expect from central bankers as far as what they're seriously worried about, gives a window

into their personality and mandates, a joke that this is a woke fed, with powell's comments how he's talking about this economy being unequal and he's really thinking about the workers. it shows you that's where their heads are at right now and shows, they're impatient whether it comes to keeping their extraordinary policies. >> totally and it's a great mission they both separately touched on there. though one has to acknowledge it's a rather blunt tools, the tools they're in control with to try and help pinpoint some of those. >> sure and that wasn't the question to be fair, it's really what they're thinking about. >> no, completely. but it's an interesting point about how far do you push loose policy to try to rise the tide f all boats when it is only the smaller ones perhaps that still need it. pivoting to next week. quickly. earnings coming. i'm very excited about the bank, particularly the earnings call as it related to archegos,

morgan stanley, goldman sachs, going to be fascinating. >> hopefully yes, we'll get more color in terms of the outlook in terms of the capital markets activity and net interest can continue through the rest of the year. >> we look forward to that that does it for cloegt. h "closing bell" have a great weekend. "fast money" begins now. >> i'm in for melissa lee, this is "fast money." tonight's trader lineup guy adami, steve grasso, mcdonald and barbara ceo of win crest tonight on fast apple seeing its best week since january. names like facebook, al apple hit highs. is a buy now plus boeing taking max 737 out of commission on the heels of another production product