way and they could decide whether they wanted to participate. it was smooth. >> necessaryson griggs and leslie picker thank you for joining us as we watch shares of coin base trading right now. thank you for watching "power lunch" "closing bell" starts right now. thank you, morgan, and frank. welcome, everyone, to "closing bell." i'm sara eisen along with wilfred frost. mother mixed session on wall street on a jam-packed news day. the dow setting a record high, small caps are rallying. but the nasdaq and s&p 500 are in the red bitcoin is at a record and dome coin all the way up to 14 cents it's all about the base. crypto trading platform coin base making its highly anticipated wall street debut. the whole market is getting a lift setting a fresh high around $5,000 the federal reserve releasing

its last beige book saying that the economy is recovering at a moderate pace. 59 minutes left to go in the session with the energy sector currently in the lead. wilfred. >> but off its highs ahead on today's show, two can't miss interviews on coin base and the future of the crypto market. we will speak with the coin base cofounder and board member fred ehrsam about the currenty to the market a great day for him. of course. another great day for early investor rashawn williams from manhattan venture partners he will join to us weigh in on the valuation and the company's future growth opportunities from here looking forward to those interviews. and wells fargo moving higher on the back of today's earnings the best performing of the big bank we will speak with the company's

cfo. let's focus in on the big stories. mike santoli is tracking the market action. and i have got a closer look at the key takeaways from the banks' earnings. i am not sure i should be teasing my own hit mike, we will get to you first. >> softening up in the indexes in serms of the s&p. really, it is still the same story in terms of this fallisitious rotation, big versus small, cyclical against growth on a day to day basis today it is small caps, a broader list of stocks doing better and cyclicals that bounced after a few days when you had the opposite you have a six month chart of the s&p 500. up more than 18% we had this little bit of a tilt higher after we broke out. month to date, it really has been an upward grind since the second trading day of april. but we hid 4150 intraday as a high today then we backed off right after the coin base listing, about 1:25 this was from 2017 into 2018

i wanted to point it out a loof conditions are harkening back to january 2018 when they had this culmination of a long and calm rally this increase right here, for six or seven months was likewise 18 plus% as it has been in the last six months. the difference, look at the huge spike, the acceleration higher, this momentum built up a lot more also, we were coming out of a low volatility environment right here we are now arguably just entering a lower volume it the tilt range after a day of exciting trading be mindful that a lot of things look like the s&p 500 in particular might be getting ready to have sort of a culmination moment with a lot of things going right for a long period of time in the short-term look at coin base. mentioned it we got that listing. it is trading lower from the opening price. a direct listing, part of the point is maximize demand to get a clearing price at the open as

opposed to price it low and hope for a pop or really restrict any of that kind of access to the initial shares you have heaviness, insiders being able to trade, you don't have underwriters out there stabilizing the price. trading blow he that $100 billion aggressive valuation that we had. also some tells, the ipo, etfs, spacs and the arc funds thing that we track. the ipos and the arcs look tentative and halting. we talked approximate how retail traders haven't been as aggressive a presence in the last weeks or a month. maybe coming now getting interested with coin base and the run and the new highs. it aims to be seen whether that's going to be a force in the summer. >> not today tech down, arc innovation down

mike santoli thank you the testimonies are the winners today as the big banks officially kick off earning season wilfred has the takeaway from goldman sachs, jp morgan and wells fargo. >> indeed a strong afternoon for those stocks goldman sachs. record revenues, record eps, investment banking, global markets, and asset management all beat comfortably and impressive operating leverage roes north of 30%. jp morgan capital markets activity also very strong. waels fargo and jp morgan's eps was a big beat but flattened because of a benefit in the line for providings for bad loans jp morgan's ceo saying we don't consider this core or recurring profit however it is of course better to have benefits not provisions and they are only possible because of a better economic outlook. good news overall. diamond saying he expects a very strong economy

with the recent rise in nields in mind net interest income did disappoint for wells farga and jp morgan. it was only soft because clients were able to pay down debt confidence on the wells fargo that net interest and loan growth would improve had the second half of the year, and that started to drive wells fargo shares higher. their cfo will join us shortly they did touch on the archegos capital buildout. >> highly created and leveraged positions. this is not the first time we have seen a situation like this. and it likely won't be the last. we have robust risk management that governs the amount of financing we provide for these types of portfolios. our risk controls all of which were put in place before the march events worked well we identified the risk early and

took prompt action consistent with the contract with our client i am pleased with how the firm handled it. >> as we sit here today compared to a couple of weeks ago it might be possible that the archegos issue ends up being a net benefit over time to likes of goldman sachs and morally morgan stanley as well if prime brokerage units close down in other places in europe and so forth and they ends up gaining market share because of it without having taken on some of the big loss has the european rivals took on i think it is a snapshot that we saw in the goldman and jp morgan numbers that universal banking is working for the big u.s. banks, not so much for the european banks and not fessl capital markets yps for goldman and jp morgan, too, unbelievable today. >> investment banking fees soaring for jp morgan.

i wanted to ask about loan growth we knew going in deposit would surge and loans not so much. any guidance on that any outlook of loans picking up as stimulus fades a little >> that was a good important part of the wells fargo call which drove the shares higher. we will be able to talk about that with the cfo in just a moment i think the key point is the explanation for why loan growth was weak in this past quarter was a good one it is not because we are about to head into recession jamie dimon says look if it is because a covid variant is spiking up and that's what's hurting loan growth and net interestncome then that's a bad thing. but if it is because there is so much liquidity and consumers and are raising capital then they can pay down their debt they don't need the take on further loans. that was his positive spin and said it will come out in the next quarter or next half of the

year wells fargo is up 5% >> dow is up 66 points, financials outperforming we will talk much more about the bank and the recovery in america when we are joined on the other side of the break. first on cnbc, by the cfo of wells fargo which as wilfred said is up 5% as we head into the close. you are watching "closing bell" here on cnbc

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and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. shares of wells fargo hitting a 52-week high after topping earnings estimates their cfo joins us now on a first on cnbc interview. thank you for joining us. >> thanks for having me. appreciate you making the time. >> really the other way around on a busy day for you. let's start on the macro outlook. it was interesting to hear some of the comments you and charlie were making about the outlook for the consumer based on some very, very short-term data even since the end of the quarter i don't know if you could expand on that, the scale of pick up we have seen in consumer spending

and what you think about the rest of the year >> it is clear that the consumer is in really good shape. both from a liquidity perspective. they have more cash than they did, you know, even prepandemic, in a lot of cases. and you are starting to see activity levels pick up as the vaccine rollout and the economy and states start to open back up while it's still really early, i think, in that recovery, i think you are starting to see some really good signs, which should set up more activity for the second half of the year. >> the shares kinds of picked up during the call when you were able to kind of keep guidance where it was or tight ten range as it were particularly for nii and loan growth linked into that what gives you confidence that the second half of the year or next three quarters will allow you to kind of make up that initial guidance >> well, let's start with the quarter. that -- underneath that, there are three or four things sort of happening that i think helped with the story

first is we are seeing economic trends improve we are seeing that coming through a number of lines in our home lending business, the investment bachging business, the asset based fees and our wealth business, all up solid double digits year on year you are seeing credit performance be really good both on the consumer and the corporate side or the commercial side which i think that's in part due to forebearance and in part due to a lot of the stimulus that's been injected. offsetting that has been -- the nii -- the impact on nii from lower rates which you were sort of getting at there. but i don't have all, like we feel really good about where we stan in terms of capital, liquidity and sort of how that positions us for the future. as you sort of think about the second half of the year, you know, the trends are improving and the likelihood that we are going to see a robust economy in the second half seems to be increasing

as you look at -- whether its the consumer as we just talked about, you look at the overall sort of job creation that's starting to happen, you know, all that should set the second half up to be pretty robust from a economic perspective with that should come more demand for loans particularly on the commercial side. we are hopeful that that comes as the recovery gains momentum. >> do you worry about state of the consumer and business when the stimulus wears off is it artificially inflated to you? could we see defaults and bigger problems, say, into next year, when that wears off? >> well, i think it's clear that the stimulus is really provided a bridge to get through this pandemic for most people, as you sort of look at the folks that have come out of these forbearance programs, you know, something like 95% of them are actually performing and up current on

their loans. so in most cases the stimulus has provided an effective bridge to get people through that but it is still early. and you know, i'm sure as we sort of get through the second half of the year we will see -- we will see folks that probably would have had problems, you know, anyway, prepandemic, start to come out of the forbearance programs but it's a really small percentage of the overall number of consumers that were part of those programs from the beginning. >> with the asset cap, mike, i mean you are kinds of up against the ceiling of it. how hard is it making your job to service clients with that in mind any update on when it might be lifted >> you know what, as relates to the work we are doing -- we are very much focused on executing the work we have got to get done to build out the risk management infrastructure we think we are making progress but there is a lot of work to get done we are very much focused on it

we have had to make tough decisions over the last year as we have sort of worked through the pandemic we are continuing to do that as we sort of look forward to make sure that we can be there for our clients. le are, the constraint for us is deposit levels and how much deposits we can bring on our balance sheet. we have plenty of capacity to continue to support both consumers and our commercial and corporate clients from a credit perspective or loan perspective. >> 2021 event, that it gets lifted >> we are focused on getting the work done, wilfred when we do that the fed will make their own determination on that. >> finally, i would say, mike, this quarter is probably the first in quite a long time wre after the quarter numbers and the earnings call we are not seeing analysts have to lower their estimates in one area or another. clearly, the share price reaction today is reflecting that do you fl like the bottom is in it's up from here? >> yeah. look, i think if the base case

plays out we talked about where rates continue to stay where they are and you start to see the loan growth pick up in the second half of the year, then it is likely we are either at or near at least the bottom for nii. but, you know, there is probably a little more time to play out before we call it, for sure. but i think we are likely close to it, if we start to see that loan growth pick up in the second half of the year and rates stay where they are. >> thank you for joining us, much appreciated it. >> thanks for having me. >> tomorrow bank of america will be part of another big day of earnings and brian moynihan the chairman and chief executive will join us first on cnbc at 3:00 p.m. eastern time don't miss that one. still ahead, coin base jumping from its reference in its first day of trading though currently trading below its opening price. we will be joined by board

member esahrm. we are back in a couple of minutes.

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when i was at goldman i would sneak into the bathroom occasional to trade bitcoin on sites that i think weren't particularly trust rgt. >> fast forward six years, things changed up next, fredder sam returnsa rd high. teching out the bond trade ten-year around 1.63 fed chair jerome powell saying the taper will likely come before they move interest rates. we'll be right back. wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪

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story of the day, coin base making its trading debut earlier today with the stock opening at $381 per share, compared to its $250 reference price the stock still trading above the reference price but down about 10% or so from the open. ginning us for more in a first on cnbc interview is coin se

cofounder fred ehrsam. it is great to have you back on the the show cofounder, major shareholder, board member what has today been like for you? >> today has been al huge culmination for i think the crypto community and what everybody has been building towards for over ten years i think coinbase is the most publicly visible thing that's in the ecosystem today and that what i think people will begin to wake up to perhaps starting with this direct listing is how big the crypto system is and how big it is likely to grow over the next decade. >> how big is it how much is it likely to grow? i remember your partner saying it would be worked $1 trillion now it is a $2 trillion market and growing. >> right it is one of those things where when we talked about it early, it seemed insane to give perspective, when we

founded cosby in 2012, one bitcoin was worked worth $6. all bitcoins were worth $50 million in total fast forward ten years to 2021 as you said, crypto assets are cumulatively worth over $2 trillion there are many of them it's not russia is bitcoin and not only are we looking at the potential future of money, but also of the financial system and a new internet application platform. >> with that in mind, i was wondering what you thought over the next let's say decade, five years to a decade. do you think the share price of our company will be tightly correlated to the performance of the underlying assets, bitcoin in particular? or might they be even they gotively correlated? >> i think what we have seen in crypto over the last five years is there is more of a diaspora there is a lot more going on

i think if coinbase does its job and executes well it will continue on its mission to make crypto easy to use and there will be a whole lot more to use in crypto. when we startethe company it was inning and crypto was the goal today it is beyond that people are doing trading and lending directly on it and there is the nft phenomenon that's revolutionizing modern media i think it will be less correlated to any singh singular crypto assets. of course it will be correlated to the success of crypto overall. that's something i would be very happy to have exposure to. >> that's sort of what i was wondering, which is where coinbase goes from here. we have seen the trading story, and the juicy margins, and the profitability. and the money you make on trading. but you have said that beyond that, it's an on-ramp to crypto. what does that mean?

where does this business go. >> well, so it is sort of inherently hard to predict what the future of crypto locks like much like the internet was hard to predict when it went main treatment as crypto is now in the late '90s. i think the high level way to think about it is as crypto grows there is going to be a whole lot more that happens in the crypto universe. and that's hard to see today but in ten years i think it will be very big. and if coinbase does its job right, that means it's not just the easiest way to one click buy some crypto from your bank account. it's also the easiest way to use all of these crypto native financial services and future internet applications. >> where do you stand, fred, on how many different cross examinations can really achieve critical mass and be around for the long term, in ten i don't remembers' time? is it limited depending how people market them

or will we be talking about just two or three of them in ten years' time? >> i think what we will see is vibrant ecosystem of crypto assets specifically the idea of cross examination as money or as pure store value, that might be confined to a small view there may be a few winners there. bitcoin and ethereum are very large in that category today what we have seen in the last three years are a whole series of other assets emerge with real utility value, when you look at what happens in decentralized finance as well as people even minting their songs and their artwork on top of crypto those are new crypto native assets while they don't look like money i think there will be whole categories of crypto native assets that look like that that could be quite big. >> fred, a lot has gone right for crypto lately, for coinbase and bitcoin. but bitcoin is trading off the

highs. it is back down to $61,000 your stock also off the highs. tesla, square, a lot of the bitcoin-exposed companies are trading off as well. we have seep the rise of nfts and just this explosion of hype. some are wondering if this is the top. >> as somebody who has been working in crypto for ten years, i have heard that statements hundreds if not thousands of times. this is the fourth crypto cycle. it started in 2011 when i was trading out of my apartment in new york working at goldman. crypto went from $32 to $2 -- specifically, bitcoin, in the course of two hours. it happened again in 2013. it happened again in 2017. and now it's happening again i think the reality is that if crypto is to achieve the huge mission that i think it can, which is being a new global digital money financial system

and internet app platform, there isbound to be a lot of volatility along the way it's certainly not for the faipt of heart in the early days that was a huge challenge in being coinbase and staying the course so i think it will be volatile from here, but that's just the nature of such a huge technology coming into existence. and i don't think it could happen any other way. >> one of the big risks has always been regulation it's something we talked about back in that interview in 2015 on bitcoin but it still looms large the new s.e.c. commissioner just got voted in today we know that gary gensler is maybe a friends of crypto or at least understands the crypto community. but everyone wants to pounce here central banks, the cftc. what specifically would you welcome from regulators? and what could actually materially damage your business and the right of bitcoin in

terms of regulation? >> the thing that's been extremely challenges over team with regulation of any new technology is it is very hard to predict where it is going. as regulator you are in a tough spot you have to think,m had, i should put in place safeguards right now, but if i do they might have unintended consequences that i didn't fully predict. the thing i would look for is governments around the world, potentially even the political leaders outside of regulators, waking up to the fact, as we have started to see in the united states, that this is an internet high pressure sized opportunity for every country. and one can imagine what the united states' economy might look like if we didn't lean into internet as we did with high-level declarations from the white house in the late '90s and how different the united states would look today so that's really what i am looking for. i think crypto as the next internet-sized opportunity will become a part of public

discourse outside of regulation and help all countries make good risk/reward decisions around it. >> fred ehfor you as one of the largest individual share holdsers and founder and board member of this company thank you for joining us today. thank guys. still to come, curb your enthusiasm why bank of america securities is telling consume investors to manage expectation force the s&p. she will join us next. 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.

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as earnings season kicks off, bank of america raising full year eps forecast by $20 to 185, up 32% year over year, but the firm telling investors to curb your enthusiasm as the s&p 500 year end price target remains unchanged at 38,000. of course we are at 4125 joining us to discuss why bank of america's head of securities savita subramanian

the first of which grabs my attention, sell side indicators. talk us through that it is a sentiment indicator we have been tracking for decades here at bank of america. it is basically looking at what wheat strategists are telling you to allocate to equities in your overall portfolio what we found is that this is -- you know, if you take the average of all of these allocation recommendations, this ends up being a very contrary indicator of what you should actually do with your money. historically what we found is when there is lots of good news and everybody is bullish, and it look like stocks are going to go up forever and allocations grow extended those are better times to sell because chances are all of that good news has been priced into the market today, we are at similar levels of very stretched allocations to stocks in fact, we are just one percentage point away from a sell signal from this model. i think what this underscores is the fact that there is not a lot

of reasons -- doesn't feel like there are a lot of reasons to worry today. the economy looks great. you know, we have got this recovery in process. we have ipos, esoteric instruments. it field like a good, great environment. stocks have been going up nicely for the last 12 months in fact, we have seen record levels of returns overthe last 12 months. and i think what that tells us is that the market is more likely to disappoint in the opposite direction of where everybody is really thinking it is going that's one warning sign to us, that things are looking pretty topee. >> isavita what do you do in tha environment? where do you go? >> there is always something to buy. our view is while the s&p 500 might be pricing in a lot of the good news there are pockets of the market that are definitely still trading at relative discounts. and i would stick with cyclicals. i would look for capex

beneficiaries since we are hearing a lot more about potential infrastructure, potential capex boom areas like industrials, even financials, which have worked reasonably well over the last few quarters but there is still a lot more upside, we think, in terms of relative gains. i think what's interesting is that despite the fact that this year looks very different from last year in terms of reopening the economy. we have a new administration we could potentially see taxes go -- tax rates go higher rather than the cuts we saw a few years ago. investors are still very similarly positioned to this growth and tech bias that they have had for multiple years. i think that that is slowly being taken out by this value rotation i would stick with value i would stick with cyclicals, with industrials, financials, even energy. i think there is more to go. small caps i think there is more to go. people look at this violent

rotation as though it has been a really long time that value has been outperforming growth. but actually, it has only been a couple of quarters we really need to think about it within the context of a big recovery, you know, potentially a big move on the cyclical recovery frontier. and really look for pockets that are undervalued today. and we are still finding a lot of them. >> well, it's a trade that's working today, for sure. russell 2000 up 1% s&p lower. savita subramanian thank you so much. coinbase wrapping up its first day of trading as a public company. we will look aut hboow it performed and what it says about the market next, in the "market zone."

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>> announcer: the "market zone" is sponsored by etrade trade commission-free today with no account minimums. breaking news on the federal reserve. steve liesman's got it steve? >> sara, vice chairman rich clarida providing a one-two punch of dovishness from the fed. saying appropriate monetary policy will remain accommodative for some time after the conditions to raise rates or normalize poll so has already begun. that's a future promise of even more dovishness than i think we have seen in the past. he says it will not tighten because the up employment rate has tightened after its long run natural rate it is a bit of an academic speech but has understandable notions for investors.

he defines maximum employment as the highest level of employment that does not generate sustained pressures that put the price stability mandate at risk. again, this follows comments from the chair who said raising rates is unlikely before 2022. that raising rates is not going to happen until a recovery has been achieved. >> steve, thanks so much for that very interesting extra insight similar theme overall of course of late. oil still up nicely. dollar down .2%. we now have 13 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 we have got josh brown with us as well suit is tie this week. very nice. let's kick things off with the broader markets. stocks off session highs

the dow and s&p 500 hit intraday record highs earlier in the session. mike, big gut checks at 2:00 p.m. and 2:45 p.m. but ultimately the last couple of hours of trade softer. >> felt big in a market that has been in a schleppy way walking higher the russell,000 is up more than 1% the s&p is struggling. past few days it has been the reverse. s&p looking good because of the mega cap stocks. it has been a harmonious kinds of back and forth we have been enjoying obviously it can't last forever. but it has been tough to anticipate when it has reached the maximum level on the particular phase of the rally. >> i think we have to talk about commodities, josh. oil provides up 4.5% energy is the best performing sector materials up there as well lumber prices at a new record high do you stick with the commodity

based exposure as the stock market and the inflation theme heats up >> yeah. it seems like the dow is the new nasdaq and the dow has more exposure to that stuff than the nasdaq does. s&p is flat but a new all-time high for the dow today very interesting that the potentially negative news for the reopen via j&j didn't really seem to have any impact on these stocks capital one still looks outstanding. aa, super strong stock the year looks great freeport mcnamara, your best performing s&p 500 name. to your point energy got a selloff in tech but the money is going somewhere, into this continued cyclical trade. yeah, i think we have got to keep these trades on our radar, on our screen each if we are not directly engaged in them because i think they are a good gauge for sentiment around the real economy performing this year and

outperforming, frankly, a lot of big cap tech so that trade was not knocked off. >> the other big one on the screen all day, coinbase the direct listing a huge milestone for the crypto economy. kate rooney with the details rate in. >> sara, coinbase, the largest u.s. crypto exchange, is now a cally traded company, after years of skepticism on wheat today seen as a ledge myselfin moment they took it from a hobby for coders to letting everyday investors trade it the $100 billion valuation implies it could grow beyond its brokerage business despite making the majority of its wretch on trading fees there is plenty of skepticism on coinbase but the bulls are focused on the next phase of crypto, which includes moving

more of the traditional financial system onto block complain back to you guys. >> kate rooney, thank you. exciting day, josh are you a buyer of coinbase? do you think it's having an impact on the overall market >> i'm not i am a customer at coinbase. i think it's an outstanding company. i think brian armstrong has been a visionary. i think they have done pretty much everything that you can do right right. but i think a lot of the money has been made in the preipo market, which has been the case with a lot of very fantastic stories like snowflake so as much as i would love to be an investor here, i am not big of a muppet. right? my first summer in this industry i was actually still in college cold calling for a bucket shop on third avenue. we were pitching the e trade center ipo like that was what everyone was all excited about. the parallels shouldn't be missed coinbase is coming basketball further along than e*trade was.

e*trade was only handling 8,000 trades week with less than 1 million customers when they became public in '96 they spent their entire life as a publicly traded company up until their acquisition by morgan stanley last year fighting for the most part a fee war. in '9 they were getting $20 a trade. that eventually went to zero the question is, we know that coinbase can't continue to garner the fees they currently are for trading crypto there is no way fidelity is going to sit there with their hands folded there is no way you won't have competition as the asset class comes of age but the question is, will that matter in can wols volumes be so much bigger that they can withstand that average fee they are gettthink it is being priced in as a fait accompli, like they

definitely can i am not in it it is an amazing company i just wish it was 230 rather than 330. >> shares of wells fargo rallying on the back of an earnings beat. earlier we spoke with the cfo. here's his outlook for the second half of the year. >> whether it is the consumer as we just talked about you look at the overall sort of job creation that's starting to happen you know, all that should set the second half up to be robust from an economic perspective with that should come more demand for loans, particularly on the commercial side we are hopeful that that comes as the recovery starts to gain momentum. >> mike, the intraday chart there told the story it was down after the numbers. and you started to ask the question of why is wells fargo still behind its peers when it reports these numbers?

the earnings call tone was completely different it did feel like they are turning a quarter. >> right i think you have in addition to just the macro macro story-- j morgan is considered to have had its act together for years and is riding the trend. it makes sense also the give and take within the earnings reaction to the different banks is probably going to be a theme that we see for most earnings i think this earnings season. >> tech for the most part under pressure some news. instagram and facebook could be getting rid of likes let's get to julia boorstin for more >> you might have that option. instagram is experimenting with giving its users the option of not seeing the like counts on their posts. they are saying this is to,

quote, understand that lessens pressure when posting to instagram. facebook says it is working on giving its users similar controls over their experience on facebook. the idea is that if getting likes is not anxiety inducing users might want to post more. back over to you. >> all right about $38 of up side there julia, thank you josh, hiding the likes good idea? you are a social media may have been at least on instagram these days i like a lot of your stuff >> i appreciate it i like a lot of your stuff, sara i think this is a distraction. first of all, nobody is posting anything without likes because what's the point you don't get the endorphins why are you posting? just to piss people off. the trade-off was i know this is

going to annoy my friends but i want some likes today. if you get rid of it or make it voluntary i can't imagine that doing something. the question is they have 100 ways to micro target someone and they lose 20 of the case does the volume tee klein that's being discussed the story of apple is the real story. everything else is press release. >> mike, you are of course a machine when it comes to instagram and facebook. >> i have yet to post once. >> you are on twitter. >> yeah. >> more charts than photographs. anyway, but the share price had a good run over the last month or so? >> a great run absolutely i think we were able to say it was really kind of exhibit a in the idea that some of the faang stocks had been cheapen asked left behind a couple of months ago. it climbed to an all-time high the you will have aation is not at an all-time high.

along with alphabet it looks modestly valued. it is not the story on that. it is more of what types of stock are going lead this market or going to be the performers right now. it has had a little bit of a burst and it is probably time for a rest but i think it sort of fits in this with mode of it's not really reopening, but it's also this stable grower that you are not necessarily going to have to worry about, the path or the fundamentals for a while. >> josh, you keep making the point that you like that there is rotation, you like it when tech is under pressure, energy and materials and industrials pick it up and the index moves higher what do you do with the faang names, which have been under pressure they have come become back but they are questions as -- kprofs. >> i have to be honest. >> yeah. >> i have been lost in the narrative because i look at charts more than i read opinions when you look at charts of large cap tech there is a rotation but a lot of these stocks come off

of their highs for a couple of days but they don't really go anywhere nvidia made a record high yesterday and then again today that is as large cap tech as you get. arguably, it should have replaced netflix in the faang acronym long ago and they don't care that there is a rotation going on they are changing the world and eating the world with software and cards and chips. i don't see that you need to have a rotation. it's nice that we do but there are plenty of large company tech names at all-time high asks they are not paying attention to the fact that they are supposed to be done just because copper is up like they are doing what they want. >> just under two minutes left mike, what do the internals show >> they have been stronger than they have been this the last couple of days the split on the new york stock exchange, not two to one, again, nothing going on at the s&p level. it is a small cap-led market showing its way into stronger

breadth. look at beta trade high beta is basically a proxy for cyclical stocks. had been lging you had this burst this is a fwrf for a that's what small cap is, what energy, some of the industrials. that was the big story in the morning. volatility index has been backing off. spent most of the day under 17 now it is a little bit above there. down trend in fact i think if some of the tech and hyper growth starts to pick up it will go back up but so far the market supporting itself. >> the dow breaking a two day losing streak. higher by 41 points. what is driving it some of the materials, energy names. that's what's working in this market today the s&p 500 overall under

pressure by half a percent the nasdaq is down a full percent. but russell,000 index of small caps is working up . % there is the bell. dow up 34 points tech, consumer discretionary, communication services all lower. bitcoin down $783 as coinbase comes off the highs of where it opened up. >> welcome to "closing bell. i'm wilfred frost along with sara eisen and mike santoli, cnbc senior markets commentator. quite a big slide in the last couple of hours of trade and into the close itself. the dow closing higher, but only by 54 points the high of the session for the dow had been 234 points higher the s&p 500 was down .4% the nasdaq down a full pearls at the close. financials did well, banks like

goldman sachs and wells fargo had a strong session at the bottom of the back, consumer discretionary and technology. >> coinbase opened at 381 closed at 328 coming up we will speak with an early investor in coinbase to get the outlook. plus find out why black rock's jeff rosenberg thinks investors should be moving away from fixed income and where they should be putting their money to work. josh brown and alicia levine with us. mike santoli i come to you first of all you said interna pretty good you have got cyclicals doing well today final couple of hours of trade a bit soft >> they were sort the healthy part of it is what you really have -- it is not paid to overthink the way this market has managed to find

a way to progress higher with this rotation w the dynamics we have been talking about. not a lot of selling pressure. however, it has also clicked to a lot of the targets you might expect it is up 10% on the s&p 500 year to date. it is basically above the average strategist's year entarget that's not bearish, but it shows you we have front loaded some of the gains for this yea also the first half of every month this year has been strong. you get to the options expiration, this month is on friday, and maybe you have turbulence i am not saying those are the only thinks going on but it has happened each month. i think those things, the muscle memory, the hoopla from the crypto company causing selling in square like micro strategy like tesla it is annoying the environment i don't think it is time worry t i think all of those things tend to be offsetting currents at these levels. >> good way to put it. alicia you say you are overall

bullish but see a lot of land mines. what do you mean >> as mike said we put a lot of performance into the first quarter of the year. there are three issues out there that the market is not grappling with the rate risk, the inflation risk and the tax risk. those lay in front of us when you saw the beige book come out today, you know, the stocks took a more cyclical turn because what we are seeing is that in the real economy not only do we have input costs going higher but those costs are actually being passed on to the ends user and the consumer if that's the case then the narrative that the fed is giving is still being bought by the market that inflation will be transitory but it does raise the question whether it is going to be more than just the next couple of months and whether there is something out there lurking that could be more problematic for stocks and yields. >> josh are there any stocks that you do think have

overheated that you have been happy holding but are now fully valued. >> i definitely feel that -- like we have been through that with amazon and ael and they have had a blow off top and pulled back. but the fact that they have gone up a lot and they have been successful and now maybe they are underperforming a little bit as other areas of the market get the flows, i kinds of -- wilf, my strategy is to live through that i am not suited up this is a linen blazer were brooks brothers. i want to opponent out reits. >> snakt and tie >> yes -- well, no i am wearing lacrosse shorts under my desk. i wanted to talk about vnq this is the vanguard reit index. it is not the best etf to play reits with but reits are an untold story right now. they are historically the best

inflation protection investors can get. and i agree with alicia. i think when people think about what to do with their portfolios now that everybody is obsessed talking about inflation. yes, if you want you could buy copper stocks. i don't. i like the reit innecks. 3.5% yield these are all businesses that have the ability to raise their rents to coincide with higher costs in the economy, and historically better than gold, obviously better than the dollar, better than the stock market in terms of purely being able to hedge inflation in a productive way that doesn't involve buying coins from keith hernandez on the internet. so i like reits. i don't think we talk about this area enough. and it's a great inflation story when you are trying to construct a portfolio. >> a lot of people think there is a shakeout coming for commercial real estate, josh, when we full rereopen and everyone comes back to the office and then some people don't come back to the office and a lot of those leases go

away. >> yes, i agree with that. here's the thing there is still a lot of inertia in the space because most people don't sign a commercial real estate least for one or two years. the majority of people who are in a lease are in it for seven years minimum and usually for larger sizes ten to 15 years you will absolutely see pressure on vor in additiono, on sl green. that could be a decade-long story as those leases run off and they try to get tenants to come in and sign at lower prices i will not dispute that. are we saying that that hasn't been adjusted already? we are dealing with this thing for 14 months. it is not like that will suddenly occur to people i do think that these businesses in the reit space -- there are so many different versions of reits in the indices i am talking about or you can studiously choose to avoid manhattan, boston, los angeles, downtown commercial properties

you have the choice as an investor but i think there is huge opportunity generally speaking in this space because people are going to be seeking inflation protection >> reits are up. well at least real estate as a sector, 11% for the year. we are still awaiting results from cdc's emergency advisory committee meeting on johnson & johnson's vaccine. meg tirrell with latest details. meg, we are expecting that this hour >> we are potentially, sara. they are running a little bit behind as they talk about all of these events related to these six cases of rare blood clots seen in people who have taken the johnson & johnson vaccine. now they are getting to the discussion portion where the cdc advisory committee is talking about what kinds of recommendations they could potentially make here. one option of course is that they just say this is something to be aware of and don't actually change thinking with the vaccine. another is they could make a age or sex-based recommendation. all of these cases were seen in

women ages 18 to 48. they also noted that for astrazeneca vaccine in europe and other countries around the world where they have seen some of these similar clots they have made age-based recommendations tees are some of the ones they cited in the uk they recommended for age 30 plus. australia, 50 plus n. european cups, ages 55 to 70-plus we don't yet know where they are going to shake out on this or even if they will come to a new recommendation today it sounded as if at least part of the committee was considering extending the pause as they look into this and try to make a sound age-based recommendation here we will continue to listen and we will bring you the results when we get them >> meg tirrell thank you very much. alicia it was amazing how the market was able to brush off this news. a little bit of love for the stay-at-home stocks yesterday and pressure on the airlines not much at the overall market level. does it do anything to alter the

time line not just for the u.s. but globally. >> it pushes it out by a couple of months globally but overall the story is bake in, that we are having very strong recover reese globely because of that, because we are biassed to cyclicals here we really like europe here. we think you should use some lousy news coming out of europe to build positions in the europe mark it is mostly cyclical. has very little tech, which has made it an underperformer for about 15 years this is a nice point for it. if you look at the german bun yields they are moving higher faster than our ten-year right now. i think it is an interesting way to play cyclicals, get inpolice station here and a way to diversify the portfolio while we have rich valuations here in the u.s. >> josh, to round things off, i wanted to see what you thought of the banks' earnings

i forget where you are positioned if at all in any of them. >> i am straddling the past, present, and future, i am long jp morgan and paypal the results today were unbelievable i think a lot of people saw them coming i think jp morgan is red because people understand that that extra $5.2 billion in profit comes from dropping loan loss reserves to the bottom line. you can't do that twice. so, like that's why they are not getting as much credit for the size of the beat but i am okay with that. i am in it for long term i think they are navigating the environment in a very, very intelligent way. ank over the last six months i am happy. >> josh and alicia, ins thou good the see you both. we have a market flash it is on thermofisher. contessa brewer has got the details. >> hi wilfred. thermofisher is close to a deal to buy ppd for $15 billion, ppd

trading was halted a short time ago because of volatility but it closed up more than 12% and continued the climb in extended trading. ppd runs the studies that pharmaceutical companies use to test clinic klg trials thermofisher is a live pfizer company. therm or fisher shares ended the day down 1.5%. >> they have been on a long road higher the ten-year chart is amazing. coinbase closing lower, about 14% off its opening price after the highly anticipated direct listing up next we will ask an early investor in coinbase whether he is worried about a crypto top. plus, mike santoli looking at a surge in veinstment advisory sentiment and what that could mean for the overall market we are back on "closing bell" in just 90 seconds.

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get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. coinbase finishing the day down 14% from its opening price, which was about $381 cema mody just spoke with two major players in the crypto space for their thoughts on the debut and today's action the wink el boss. >> they run a crypto exchange at an eti conference. this exchange competes with coinbase tyler telling me one company won't build the entire market. as much as we think we are

competing with each other, we built this market together goes on to say, cameron, that this is a great moment for the industry, and wished this. the best of luck that that we continue to look at public markets and determine whether it makes sense for gemini we will keep watching that one stream the brothers are watching is launching a credit card and other strategies they will be launching soon. >> new products for coinbase, something to discuss, the cofounder fred ehrsam joined us last hour and was asked whether crypto is at a top. >> i have heard that statement hundreds if not thousands of times. i think the reality is that if crypto is to achieve the huge mission that i think it can, which is being a new global digital money, financial system, and internet app platform, there

is bound to be a lot of volatility along the way. >> for more, let's bring in ray shawn williams his former fund queens bridge venture fund was an early investor in 2013 his current fund has been an investor since 2018. i guess it is zbrogs on what must be a propertible day for you? >> it has been one of the best weeks of my career probably can't tell but as soon as we hang up, i am probably hopping on a jet and going on vacation. >> lucky you, in all sorts of ways to what extent do you accept when people suggest this has been a fantastic moment going public but there is going to be more competition we just heard cema mention what the winkel boss twins were talking about, gym my, and there is a lot more competition to come. >> i remember starting on wall

street in 2001 looking at all the banks and it was the same debate then when all the financial institutions were competing against each other and there was a co consolidation what you are betting on here is the fintech industry in general, blockchain specifically. they are you are looking at how they can get the users and expand product offerings if you fundamentally believe that blockchain and crypto is going to be around and that that market will continue to increase in size then you know there is room for more than one winner. we love competition. coinbase has been dominant when it comes to competition for the last eight years, and we think they will continue to be. >> where does the growth then come from in the you are expecting the margins to compress, and those fees to compress as competition comes in, how do they grow into a valuation worth $00 billion. or i guess in the 70s now where it closed. >> when we started doing late

stage tech investing at manhattan financial partners a lot of people said it was overvalued but when you look at public companies the average compounded annual growth rate is 3 to 5%. coinbase has been growing at 100% and did $1.3 billion in revenue and repeated that this first quarter. the growth rate is insane. it warrants higher valuation i also remember people saying $100 billion was too high for tech companies now you have apples and amazons out there that have clearly proven people wrong. for this company you have to look at what got them there. for your viewers here are five things to look at in order determine whether or not the company will continue to grow. number one the strong growth rate they have already been experiencing the users. 56 million youers is insane for a company that started seven or eight years ago. how quickly that growth rate is

growing on a quarter by quarter basis. i have never seening in like this on a company doing billion in revenue usually that number goes down as the revenue goes up. in this case it is increasing every year here's the fourth i think the. profitable when you are profitable you don't have to rely on the capital markets to innovate so you will see them expanding into other business lines and other verticals. that's important the same dna that got them innovating and competitive and dominant in the industry that they are continue thousand they are profitable, growing, the can acquire people and expant people. >> what's the fifth? >> number five is the growing tam. one thing that people don't talk about with coinbase a lot is how the total addressable market is

increasing for crypto, for dital currencies it is not decreasing it is hard to know what this company will be doing for five years because there is more water in the ocean today than there was seven years ago. that's one of the most exciting things about this company. i would say the same thing about amazon 20 years ago you would have never known that the market would be as big. but i really think that coinbase has an opportunity to continue to expand the market, mature it make it mainstream we still don't have institutions on wall street for these markets yet. all of these things bode well for their fundamental analysis and then you can look at the technicals and all of the millions of users finally have a chance to buy the stock and i think in the next 12 months this thing is easy 2x where it is now. >> if everything comes to fruition you would see bitcoin prices explode why own coinbase instead of

bitcoin itself or should you own both >> i remember in 2013 we had the same conversation with our investors. we had it again in 2018 when we invested what we are betting on is the casino not the one table it is hard for me to pick which currency is going to be the winner knowing how volatile it is and how non-fundamentally it trades for me i would rather bet on the house or the scone, and not one currency that could go up or down when another one wins or loses. coinbase is in the middle of the market creating applications that didn't exist. >> thank you enjoy your vacation. >> we have a news i lert on del. contessa brewer has it. >> del spinning off its equity

ownership of somewhere, p wear the plan calls for vm ware to distribute a special cash dividend as much as $12 billion to all vm ware shareholders including egg del technology dow up 7%. vm wear up less than 1%. the ceo says this will drive value and growth and in a statement del will focus on modernizing its core infrastructure and push opportunities the grow in hybrid and cloud and telecom. and they will use the proceeds of the spin-off to pay down debt >> contessa brewer thank you. we will send it back over to mike santoli now, who is looking at investment adviser sentiment. and what it tells us about overall market we check in on the spread between bulls and bears in the indengs. it lifted back up to where it started to show up in around

december early december you got up to these levels a close to 50% spread. this is like 63% or 64% bulls. what it tells you people are generally psychologically -- equity exposures are high but it is not a moment when you ring the bell like it is the top of the market the market in december did flatten out. we were talking about the 2018, 2017 environment more exuberant but generally in the same change. it goes into the mosaic of indicators that say this bull market is well embraced. up next, black rock's jeff rosenberg says investors should be looking into fixed income alternatives right now plus, david solomon addressing the bank's jr. banker burnout.

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check out shares of americad of expectations with strength if denim and tops fromming revenue will top $1 billion. the whole story up on cnbc.com

up 9% now. >> looking at stocks today the market closed mixed. the dow closed well off of session highs but higher for the first time in three days the s&p 500 lower. bond yields, a little bit firmer still in the 160s range. joining us, jeff rosenberg of black rock good to have you why are bond yields lower lately when the trajectory for growth looks up and economic reports continue to show real strength >> i mean we had a huge move it was a resetting of interest rate expectations to the recognition that the combination of fiscal policy, you know, following the georgia elections -- we changed the trajectory for fiscal policy the combination of massive fiscal policy with massive monetary acttation really is sparking historic expectations for growth in 2021

and that went lieu the bond market in terms of the rise in rates. we have had some consolidation from that. and i think that's where we are at we are at a new inflection point where we are pivoting from the conversation about where economic growth goes from the benefits from fiscal policy to when does the fed recognize that substantial further progress in and the implications of the tapering of the bop purchases that are to come >> and all of this is making you guys rethink fixed income allocations. what are you telling investors to do, how to change their traditional views here >> you know, it is sort of catalyzed by the negative returns. nearly over 3% negative returns in some of the major bond benchmarks in the first quarter. it's the impact of rising interest rates from a low interest rate environment. and a real question in the

outlook as to whether or not the feds' forecast, which are basically saying there is a temporary increase, and then we go back to the old world, against the other side of the argument, which is, hey, maybe not so fast here maybe we are at an inflection point, and the significant stimulus coupled with fiscal and monetary policy, you know, might mean a different trajectory. if there is a different trajectory, then the transition to that higher real inflation and term people yum world for the bond market means some significant periods of negative returns to the fixed income market and that possibility really should concentrate the minds of investors about the need to rethink fixed income it's an old slogan we had back in the post gfc environment. but we are back again into that kind of environment where you really need to think about the role fixed income should be expected to play in this kind of transitionary environment.

>> we just put up on a board some of your recommendations, jeff, in light of that why, if we are seeing rates rise and treasury prices fall wouldn't that also been difficult period of returns for likes of bank loans or emerging market debt or higher yield debt as well? >> well, the issue with taking on the higher credit risk as one potential solution is that it just has the offsetting impact of really benefiting from the kind of environment that this scenario of higher rates is reflective of. inflation is a beneficial aspect to decreasing credit risk. having a bit more credit risk in the portfolio can help to mitigate the rise in interest rates. now, that's not a full solution. none of these solutions will solve all of the problems. if i add credit risk to an overall portfolio that includes equities i am reducing the

interest rate sensitivity but at the same time i am reducing the diversification properties so we could see some solutions with regards to using credit risk and higher credit risk in the portfolio. but at the same time, we'll recognize we will also need to talk about alternatives for the diversification properties that fixed income is losing in this kind of rising rate, low interest rate environment. >> any diversification in foreign exchange into cryptocurrencies, bitcoin? are you there yet? do you see correlations there with the u.s. dollar. >> you know, the earlier segment on coinbase, certainly a tremendous am of interest in this it is too early to say we really don't know where some of the alternative currencies will go. in terms of kinds of the old-fashioned all trptive currencies like gold, as an alternative diversifier, its track record is really mixed

so our advice in looking at alternative diversifiers is look alternatively at periods where equities are going down. going down substantially and look for the performance of your alternative in those kinds of periods. historically fixed income have done well in those environments but particularly in an environment where inpolice station the challenge to stocks -- so when looking at all tentative diversifiers it is looking at how they perform in the larger decline of equities that's the measure as the metric for evaluating all termtive diversifiers when i am looking for diversification to my equity portfolio. >> whether bitcoin can hold up i guess in a down turn jeff rosenberg, thank you. we appreciate it. >> thank you. >> still ahead on "closing bell," as the cdc advisory committee meets about johnson & johnson's vaccine, we will talk to a j&j analyst approximate what happens to the stock

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don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. welcome back time thousand for a cnbc news update with rahel solomon. >> hi, ever. disturbing new details this afternoon in a decades old missing persons case prosecutors say missing california college student kristen smith was killed in 1996 during an attempted rape that

the suspect's father helped hide her body paul flores is being charged with first-degree murder and his father is being charged with accessory after murder. a growing humanitarian crisis on a caribbean island, st. vin send, where a volcano continues to erupt one fifth of the population has been displaced and short ans of food and water are on the wise nato leaders will withdraw their troops from afghanistan in coordination with the u.s. pullout. within a few months. to lighter news. another side of the u.s. reopening. champagne sales are bubbling up. kneelen is iq says sales rose 88% in march some distributors are having trouble restocking as demand picks up >> all of those sunday mi mostas. >> 88% compared to last march because of lockdown or month over month? >> my read was month over month. >> either way. >> i have had many sunday

brunches as of late. so i have done my part. >> you account for a decent chunk of that. so do i after the last month there we go. that would fall into april for me. we are still waiting for results from the cdc's meeting on johnson & johnson's covid vaccine. coming up, we will discuss how j&j's stock will be affected if the vaccine pause continues. here is a check on the winners and losers on the dow today. back in a couple

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simplicity feels good. chase. make more of what's yours. he can now see from our results, client activity is extraordinarily high and i fully appreciate how busy our people have been this has been exacerbated by the isolation of working remotely in a covid-19 environment to address this we are taking

concrete action including additional hiring, reallocating resources and pursuing stricter enforcement of boundaries. in this 24/7 connected world we have to help those transitioning into the work force to understand that goldman sachs is a place where we work very hard to serve our clients but also need to be thoughtful about personal resilience and well beings that was david solomon on the junior bankers clearly, the company has responded in a big way to that story from about a month ago about burnout of junior bankers. i think that has gone down fairly well internally, according to various sources what i would say there hasn't been a back down on is wanting to see ultimately in due course safely people coming back into the office on an earnings call today he was saying those two don't need to be exclusive saying keeping the objective of bringing our colleagues back to the office is not inconsistent with meeting

the desire to maintain flexibility. this is not something you would have seen 20 years ago. >> certainly not the openness, the public nature of the complaints, or the kind of pleas for some different considerations and you know, i think one thing that goldman can lean back on is the idea that it's not unique. obviously other banks are dealing with same things and also casting the stresses as an outgrowth in part on remote working also supports the idea that, hey, it would be better if we are all together as a team and we can try to address these things in general. >> and i wonder, wilfred -- my question was going to be how much of a challenge is that going to be? some of the bankers -- david solomon has been saying he has been going into the office every single day the question is, will the rest of the folks come? at what point do the banks start to main date people come in, for productivity, for culture, for ideas, for all of those things,

but also so that people have some separation with the work life balance thing it is a problem working from home. >> i don't think offices go back to over 50, 60, 70% capacity until everyone is vaccinated i don't think anyone is pushing for that eventuality until that moment is reached. jp morgan's jamie dimon said only 10% will be fully from home people will be able to choose what days of the week ay home outside of that. the people i have for people our aim, plus or minus five years in finance people want to go back into the office, they are going stir crazy at home i don't think that ever caused as much friction internally at goldman sachs. what i will say, the key i think is an undertone is do people get paid a bonus that matches what they their their work forces

policy is and their work policy performance? goldman doesn't have to face that up any time soon. this quarter was outstanding for goldman sachs. the other thing is do the bonuses match that outperformance if they do i don't think you will hear more complaints. >> a lot of banks said they would give more bonuses for junior bankers right in didn't bank of america say they were going to give an extra 10% for analysts. >> it is not the first time bankers on wall street would not think the bonus doesn't match what they think they were worth. >> when we come back, the fight keen kohl's and activist investors is officially over we will break down the details of their agreement when "closing bell" comes right back usic: “y” joe esposito]

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why is that? >> sara, wilfred, thanks for having me on the show. you know, i think the evaluation that investors are using to assess johnson & johnson's business hasn't really baked in vaccine revenue contributions. i think there is two reasons one is that johnson & johnson hasn't incorporated vaccine sales into their 2021 guidance and they would be very clear that they would be selling the vaccine in a not for profit model. so the earnings impact would be de minimus even if they did reach 1 billion doses in 2021. i think those two things have been the leading causes for a lack of a big bump in the stock price for johnson & johnson. but i also think that johnson & johnson is just a big company and just a broad revenue base, that there are a lot of different drivers. i think investor sentiment had picked up, improved with the

progress on the vaccine but it wasn't a huge valuation driver is this we are talking about 6 or 7 million doses of this vaccine administered in the u.s. before this pause. where will we be by the end of the year, all thing considered >> johnson & johnson reiterated they are on pace to deliver 1 billion doses worldwide. in the united states they have contracts with the federal government to supply 100 million by mid year. then there is no 100 million on top of that by the end of the year johnson & johnson hasn't disclosed pricing for the vaccine but on the not for profit model we expect it is $5 to $10 a dose globally that could be 5 to $10 we haven't incorporated vaccine revenues into our portfolios yet.

>> first up is hearing what the cdc has to say and should get that soon thank you, josh. josh jennings of cowan. up next, we are going to talk about retail, department store drama. the latest on kohl's a indts activist's battle. a big new development today. that's next.

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welcome back, kohl's is expanding its by back and adding three members to the board now more on the battle >> so a resolution to the activist battle worked out around 1:00 a.m. i'm told. the activist group of four say they'rs happy to have found common ground as well kohl's is adding two of the activist suggests five board members former burlington ceo and another who served on past boards and has leadership in the restaurant space the activists are also happy about the addition of ceo christine day who worked with gus priously at starbucks and all of this put together also got the authorization for up to a $2 billion

stock buy back now goss told me put together this doesn't change anything about her grand plan kohl's has momentum and a great stat -- strategy in place in her opinion and they're continuing on their way >> now the question is the turn around of the business whether they could really grow again i know there's a stop of optimism around sophora partnership big strategy point, ton of optimist and strong sales were reported yet by the owner of sophora what do we know when it could happen or move the leader for kohl's. >> it comes later this year, officially in august, that's the beginning of the partnership and so michelle wanted beauty to be a destination for kohl's before the sophora partnership was

announced. i think what is interesting with that we know when sephora was partnering with jc penny you're talking abou a department store and sales radiating out from there that's an important part going forward. we'll see if it w0rks for them another interesting thing is the addition of the former lulu lemon ceo at time kohl's is expanding the athletic leash all right collection, adding under armour years ago and had success with that even when under armour as a whole didn't have much success it has been working there with nike and her own private label. her expert ease works with

others to execute the plan michelle has in place. >> and she's got star power now, ceo of the russell wilson and sierra athletic leash all right wear. >> that's right. >> courtney thank you. major average sliding with the nasdaq down a full percent what we're watch ago head of tomorrow's trading day next 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. the lexus es, now available with all-wheel drive. this rain is bananas. lease the 2021 es 250

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stocks closed mostly lower today, outside of strength in small cam caps, value outpace growth tomorrow retail sales will be released for the last month and we'll get earnings from p pepsi-co delta, big banks, bank of america, others. what's key >> all of it it's key. jobless claps as well ha -- claims have not been a big market mover plus if we see a re-re-rerotation whatever you want to call it, nasdaq to

former high and back down today, will be lock in the sic cyclical of the small trade earnings sometimes traps the indices opposed to giving an overall market catalyst. >> for the banks we had 7% differential between wells fargo and jpmorgan these earnings to matter, factor into that relative recent performance and valuation. certainly those things matter. i'm interested to see capital market performances bank of america and citi whether it is a tide to lift all boat or whether market shanes will come through. goldman sachs closing only 2.3% but numbers outstanding. >> quite phenomenal and often you see over the course of an

earnings season expectation get dragged and bar is raised or lower for the rest capital markets big swing factor in all this. >> tomorrow don't miss bank of america ceo brian moynihan at 3:00 p.m. and thanks for watching today, "fast money" starts right now. i'm melissa lee and this is "fast money. today's traders guy adami, tim seymour, karen finerman tonight on fast coinbase dropping the first day of trading so what happened exclusive reaction from an early coinbase investor. plus the big winner, one saying this is the true stand out stock in the batch of bank earnings. and check out the after-hour moves in dell as the company announces big spin off shares soar we start with $2 billion question did coinb