more than that and the dow industrials sitting right there on 34,000. how about that >> right exactly. >> it's the court knee reagan effect. >> i think as wilfred would say, it's bang on, right there. >> court, great to see you thank you for watching "power lunch. "closing bell" starts right now. >> thank you both very much for that welcome to "the closing bell." i'm wilfred frost along with sara eisen another day, another record high for the dow and s&p 500. stocks firmly in the green with the nasdaq leading the pack, up more than 1% bang on 1% for the s&p 500, just above 34,000 on the dow. the economic rebound producing some very strong data this morning. retail sales surging 9.8% in march and jobless claims came in at their lowest level since the beginning of the pandemic. earnings remain in focus as investors digest results from

citigroup, delta and pepsico and yields making a sizeable move lower. the faang stocks all higher. apple outperforming as well. 59 minutes left of a very positive session, sara >> and a big move lower in treasury yields, even despite the data coming up on today's show, bank of america's ceo brian moynihan joins us to talk earnings. also his outlook for the rest of the year later we'll get a fix on the retail sector on the back of those blowout march retail numbers when we talk to the incoming ceo of stitch fix, elizabeth spaulding. it's her first interview since the transition was announced earlier this week. mike santoli is tracking the market action as always. wilfred with the highlights from the bank earnings. mike, start us off with the broader market, 34,000 for the dow, and a pretty broad-based

rally. >> a further acceleration and extension of this uptrend. a lot of eyes on these levels that the market has been blasting through 4140 was considered to be a little bit of a test, yesterday topped out at 4150 doesn't matter today as you can see, we've gone a little bit steeper here in this uptr uptrend. it's stretching the upper edge of a rally since october 30th is when we embarked on this particular path. it's not really slowing but today it's doing it in a different way. today is a yields down along with growth stocks up. not a lot of breadth but it doesn't really matter because the s&p is benefiting from a lot of that participation, not just by faang through things like health care so slightly a defensive quality. a bit counterintuitive here is the nasdaq 100 against the russell 2,000. large cap growth against small caps two-year chart you see this obviously is the massive liftoff and relative performance of those relatively safe large growth stocks

that was into and right after the crash last year. so it held the strength here this is a huge value rotation, move into cyclicals, small caps racing so what is this here not that far from where the growth stocks have lifted off before i don't necessarily see clear direction on this trending i think it's a lot of give and take at these levels right here. both the nasdaq 100 and the russell have been struggling with various levels so i think we're not really purely in that all one or all the other type market but there's a lot of comeback for the russell if people get very excited about the pace of the economy. so why, perhaps, did we have the consumer and still and financial stocks back off on a day you had great data retail sales priced this this is the discretionary etf going back six months. this is a massive outperformance with long-term treasuries. here you see some moderation here you see one of the worst

times, worst quarters ever for long-term treasuries actually tlt up 2% that's a big move for long-term government bonds, guys. >> as we speak, we're seeing the 10-year yield collapse here, down 1.53. that's certainly helping the tech trade mike, thank you. mike santoli. we're getting some breaking news on robinhood. kate rooney with the details kate. >> hey, sara, the gloves are coming off in the fight between robinhood and the state of massachusetts. state securities regulators say that they have amended their original case against robinhood to try to revoke its broker dealer registration according to a reuters headline just a couple of hours ago, robinhood had sued for an injunction against the state in response to that complaint the state filed that accused robinhood of violating the state's fiduciary rule robinhood is essentially arguing that the state didn't have the authority to enforce that rule

they say that the new rule violates both state and federal laws they say there's no legitimate basis to apply that rule to robinhood. that original complaint accused robinhood of using aggressive tactics. they talked about game fiction, luring new customers into robin ho hood and failure to prevent some of those outages but it's heating up. >> kate rooney, thank you. bank of america and citigroup both out with strong earnings but the stocks are lagging. what are the key takeaways >> the big headline was citi pulling out of 30 markets within its global consumer bank, including china, india, korea, australia and russia they will now operate out of just fourth wealth hubs in asia and europe, london, uea, hong kong and singapore it's a major stop by the ceo as

part of a strategy refresh she told me earlier that we believe our capital investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our businesses in asia the cfo said it would free up about $7 billion in capital. $4 billion in revenue and $3.3 billion in costs bank of america and citigroup had strong capital markets and a big eps beat driven in part by provisions for bad loans switching from a cost to a benefit. both saw costs rise year over year while that was expected somewhat this quarter, it was larger than expected for bank of america 15% or $1.5 billion higher for bank of america year over year which initially didn't hurt the share price but on the call when it led to having to boost the cost estimate for the full year by the same amount the stock started to sell off from the

intraday chart on the flip side, bank of america was able to upgrade net interest outlook for the year ahead by $1 billion highlighting their sensitivity to yields. we'll discuss all of that with brian moynihan at 3:25 p.m. financials one of the only two sectors lower today. after the break, the master of coin that's a game of throne reference. btig initiated coinbase with a big price target, calling it, quote, the gold standard of crypto exchanges we'll hear from the analyst behind that call, next you're watching "closing bell" on cnbc. the dow is up 289 points, on track for a record close

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shares of coinbase slightly lower following its trading debut yesterday. btig anywhere debating the stock with a buy the firm saying it's positioned to be a primary beneficiary of the increasing adoption of bitcoin and other

cryptocurrencies let's bring in the analyst behind that call, mark palmer. $500 so you think this should be a $130 billion company why? what are you comparing the valuation to >> that's right. in our view coinbase falls in the same category as other companies that are in the front end of an enormous open-ended growth opportunity that has arisen due to the adoption of a new technology what kind of names are we talking about? tesla, zoom, snowflake and the like that command premium multiples because their growth is enormous. their positioning within their industry is unique and they're going to be able to take advantage of that. coinbase is particularly well positioned just given the fact that it is the easiest on-ramp for both retail and institutional investors to the world of cryptocurrency.

it is also a safe and comfortable means of transacting given the fact that the company since its founding in 2012 has adhered to regulations in a very strict manner and at the same time has never been hacked now, if you look around the world of cryptocurrency, there's some very big, prominent exchanges that have been hacked. they can't make that claim clearly coinbase fits into a category where if you're an institutional investor, you're not going to be taking career risks like choosing to work with coinbase. >> all good points and clearly that's an elite club when it comes to valuations, tesla, snowflake. mark, isn't it just correlated with the price of bitcoin? if bitcoin is live, we've seen huge moves in that underlying currency, commodity, whatever you want to call it. doesn't coinbase just do what bit coin is doing? >> there's definitely a

correlation between bitcoin and coinbase's stock what we see is a correlation between the price of bitcoin and what are known as monthly transacting users which is one of the most important metrics in the coinbase story if you look at the first quarter, there's about a 96% correlation between the two. you cannot get around the fact that coinbase is very much a play on the adoption of bitcoin and digital assets at large. that's just what it is we happen to believe that bitcoin is a fantastic value and that given the inflationary pressures that we have seen at a macroeconomic level it will continue to see upward pressure over time. coinbase is in a position to be able to take advantage of that, not only on the retail side but very importantly on the institutional side i think that's a part of the story that might not get enough attention, especially with the company's launch of its prime

brokerage platform in january. the idea here is to put together custody, over-the-counter trading, lending, staking, put it all into a package so institutional investors are able to get that on-ramp into crypto, be able to keep their assets safe and be able to earn on them now, one of the things that is fantastic about the prime brokerage business as pertains to equities is securities lending. it's a huge business, a highly profitable business. we believe that coinbase is particularly well positioned to be a lender of crypto in that same way to institutions and to grow accordingly. >> mark palmer, we're going to have to leave it there, but great discussion and thanks for joining us today. >> you're welcome, thank you. up next, a tax day like no other. today normally tax day in america. even though the irs extended the deadline this year, there are still some people who need to file today we'll explain why next. plus don't miss our first

cnbc interview of brian moynihan as his stock takes a leg lower despite strong hearnings before the open he'll join us shortly. check out some of today's top search tickers xte e f america also in th miurof moves higher and lower. back in a couple of minutes. 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. ♪♪ with a bang, visit letsmakeaplan.org to find yourenergyprofessional. and change came to every part of our universe. seismic or small, it continues.

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welcome back today would normally be tax day in america, but as with

everything else over the past year the pandemic has changed that too our sharon epperson joins us with a look at why some people still need to hit today's deadline sharon. >> wilf, even though the irs postponed the federal tax filing deadline to may 17th, you need to send money to the u.s. treasury today if you make estimated tax payments the first quarterly payment for 2021 is due by the original tax filing deadline and that's today, april 15th. who has to pay free lancers, gig workers, sole proprietors, anyone who gets self-employment income or whose income is not subject to withholding. that can include retirees and investors with interest, dividends and capital gains. here's another important point about tax deadlines. >> the irs deadline was extended until may 17th, 2021, certain states did not correspondingly extend their tax filing deadlines as well. you do want to make sure that

you are filing on time in your appropriate state. >> more than 30 states are following the may deadline for filing state tax returns and making payments, but many states have their own deadline so it's important to check with your state. sara >> important warnings there. thank you very much, sharon epperson. time for a cnbc news update with rahel solomon. >> hello, everyone chicago mayor lori lightfoot is urging calm as body cam video is released of a fatal police shooting of a 13-year-old boy last month it happened in an armed confrontation after the boy and a 21-year-old were chased on foot learn more about the reaction in chicago on the news with shepard smith. near minneapolis the first court appearance for the former police officer charged in the killing of daunte wright kim potter has her next court date set for may 17th. in washington, the top watchdog for the capitol hill police is calling for a culture change within the force to address broad failures before and during the january 6th

insurrection he also has doubts on whether the force could respond to another large-scale attack. and it's finally official. jennifer lopez and a-rod, alex rodriguez, have ended their engagement they gave the exclusive news to the nbc's "today" show they realize that they're better as friends and look forward to remaining so i'll send it back to you. >> i was disappointed. rahel, thank you. >> i was rooting for them too. >> it wasn't that shocking but, you know, they just looked so in love. >> but i want jennifer lopez to find love. >> to finally settle down. >> yes. >> thank you, rahel. up next, our first on cnbc interview with bank of america ceo brian moynihan his take on quarterly results and the american recovery, next. later, don't miss our interview with elizabeth spaulding, the incoming ceo of stitch fix this will be her first appearance since the planned

transition was announced earlier this week. we'll talk about her plans for the company. shares are off about 60% from the highs of the year. we'll be right back. ♪ 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. ♪ ♪ my retirement plan with voya keeps me moving forward... ♪ even after paying for this. love you, sweetheart they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. come on, grandpa!

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shares of bank of america are down 3% despite beating earnings estimates joining us is bank of america's chairman and ceo, brian moynihan brian, very good afternoon to you. thanks for joining us. >> it's good to be here, wilf. hopefully you're doing okay. >> very well indeed. all the better for seeing you, brian. if we may, i wanted to start with that share price decline because the numbers looked very strong, the outlook for the economy seemed very strong also. what do you think has happened there on the share price decline. >> well, at the end of the day our company has been up 25%, 28% this year so far every day the stock moves around a little bit but it's a great buy and we'll be buying a lot of it every quarter. >> certainly $25 billion you'll be buying in the year ahead. let's move on and focus in on on the macro, if we may retail sales up nearly 10% month on month

i guess that number didn't surprise you given that early insight you have to data like that do you see that sort of momentum in the economy on the consumer side in particular continuing through spring and summer? >> yes, we do. no, it didn't surprise us at all, wilf. i think appearing with you and your colleagues over the years, we've always had this consumer insight. what's been interesting, if you go back four or five years ago after the tax reform and stuff, the amount of consumer spending doubled at a 5% annual growth rate in our client base, basically moved 5% to 8% or 9% that was moving along and then dropped to 1% year over year it is now back on track to grow at 10% rate over where it was in '19 so it's bigger and growing effectively at a faster rate, which is interesting if you look at the first part of april, that growth rate continues so that bodes well for the recovery as long as the

vaccine virus track continues on and as long as people get vags n vaccinated and the economy is open you're seeing growth at a 10% plus rate, which is very strong. >> loan growth obviously disappointed a bit for this quarter but you were able to upgrade your nii outlook for the full year. was loan growth only soft for good economic reasons? and what gives you confidence that it will indeed bounce back in the second half of the year >> again, if you look first quarter of the last three or four years over the year prior before the pandemic, you would have seen loan growth picking up 5% a year as the economy was growing at 2% to 3%. so if the projections for the economy are to grow at 7% this year, which is the bank of america team has in their projection, the loan growth will come because ultimately companies will have to borrow to invest and pay for their employees and build inventories.

the thing is they have been very efficient with their cash and the liquidity on the consumer side, paying down credit cards and liquidity on the company side, commercial side, is very strong certain industries are still getting through the pandemic but those industries have a lot of cash on hand so you're not seeing them use their lines. what you started to see through january, february, march is the first signs of a couple of things one is this quarter we did 600,000 plus credit card applications versus 400,000 last quarter. so you're seeing the momentum start to build we were at a million before the pandemic on the commercial side you see stability in the lines as you talk to clients, they're excited about the prospects and growth rates when you combine a modest amount of loan growth, very modest amounting with the high interest rate environment, we think we have a billion dollars more nii in the fourth quarter than we did this quarter, which is a

lot. >> i guess the shares started moving south a little bit on the call, brian, on the forecast for costs to increase for the full year does that draw a line under the sort of multi-year cost cutting drive that you've been on? or is this just a one-year covid-related thing? >> we have been trying to keep costs relatively flat over the last several years we brought them down to a level and then kept them relatively flat we knew at some point our goal ultimately is to grow our revenues twice as fast as our expenses or 2 or 300 basis points spread. you need the economy to kind of really start coming through which it's done to 2% or 3% growth rate. what we said is we had a billion and a half dollars of expenses that we had in the first quarter that we don't expect to recur. add that to the $55 billion plus in the last call and that's $57

billion so a lot of things we accelerated in the first quarter for real estate repositioning, severance and we accelerated some employee compensation costs. we're good at managing expenses. we're running a company with less expenses than we were in 2015 and we're a lot bigger company and lot more powerful company, so that's what we're up to. >> capital markets very strong not only did it continue, it got even better. can it continue forever or will it drop off in the quarters ahead? >> well, from your lips to god's ears it will continue forever, but the nature of the capital markets is they ebb and flow, wilf investment banking fees up 50% year over year and the team has done a great job the pipelines are full, all the things they do, so we expect a pretty good quarter next quarter. on the sales trading, actually the first quarter is more robust

so you had a combination of things so the expectations might come down a little bit but we'll see. it's early on to tell and we'll see as it plays out. but the team did a fabulous job this quarter in terms of managing the risk. avoiding some of the potholes that are out there and producing a strong quarter, $500 million plus in trading revenue. >> a lot of attention on archegos capital as i'm sure you saw. i wonder whether you specifically as a firm declined to do business with that particular client, and whether you were a little surprised to see how many of your peers had been so deeply involved with archegos >> we don't talk about client situations but i'll just tell you the prime brokers team has done a very strong job of making sure they manage the risk, whether it's through the amount of margin and amount of capital that people of to put up to borrow and the amount we'll lending and the amount of rules.

there's very complex rule setting all the way into the team so we're very comfortable and don't talk about specific things, but it's nice to have a great quarter in equities in the markets that we see. >> you increased your environmental business initiative commitment of $1 trillion in that area of sustainable finance and other related areas. it's a huge number i wonder how you think about this sort of thing do you think of it as charity, or do you see it as actually something that will also prove to be profitable >> it is a profitable business for us because at the end of day, we reflect our companies. our companies have to make this transition in order for the world to get ahead of the environmental issues out there and so the idea of a bank is to help them finance -- first educate them, understand it and help them finance it our trillion dollars is an example of what we're doing today but it's all about

business through the leadership of anne and tom and the teams that work on this, it's all about finding deals and help the transition of companies themselves, new sources of energy, but it is a transition so this isn't about not doing something, it's about helping companies make the transition, make money for our shareholders and do the right thing in the interim. >> when you think of those headline numbers, a trillion dollars, and other firms are making big commitments as well, brian, are you excited by the pace of transition or still a little disappointed when you look at america as a whole in terms of what's going on are we still behind the curve? >> you know, at the end of day we'll never know where we stand exactly because this is a future projection but i'm excited by the private sector's moves across all different industries and all different companies. as you know, wilf, we work in different groups across the world. but whether it's the private equity businesses, traditional banks like ourselves, asset

owners or operating companies, i think some of the announcements you've made about clean energy suppliers, the supply chain management, even oil companies announcing aggressive plans for net zero, this won't happen unless the private sector drives it the talent, the money, the way we can move things around and create demand for new energies and clean energies, solar, wind, hydrogen maybe, all these are things that the private sector has to drive so it's very exciting but it's also drilled to provide the result and the return for our shareholders and delivers on what society needs from us in the environment and other areas. >> what's your take, brian, on georgia's controversial new voting law >> well, at the end of day we've been clear, we made a statement a few weeks ago. but i think it's time to think this through you know, i was looking for -- i'm a history major by college and i was looking back it struck me as i was looking through that there were election

issues in 2000, 2004 so you had a bipartisan commission formed with president jimmy carter and jim baker, a republican/democrat with a group of people came up with a set of recommendations. when the issues around policing took place, president obama had a commission to look at policing i think it's time for a group of bipartisan commission to be formed to figure out the answer about what the standards ought to be to conduct it. it's state law, they get to decide it but it would be helpful so we believe one man, one vote we believe everyone should vote. everyone believes that that's part of america but i think it's time to sort out the ins and outs to have some commission try to figure out an answer people can live with, otherwise you're going to see these lawsgo back and fort in the discussion. >> as things stand, brian, things go against your core beliefs enough that you would threaten to remove bank of america's from the state or not? >> we'd have to look at it in individual cases generally we want the business community to come together and

suggest what they think is the right thing to do through the chambers of commerce and others. but there's been issues in our home state in north carolina that we had to take a stand on that were important to our teammates but take a stand with what's important to our teammates and our customers and try to take a stand that actually works toward solutions. that's what i think should happen here. there should be a group of people come together with a solution, bipartisan, that people can live with. >> understood, brian i wanted to pivot back, if i may, a final stock price related question but $35 billion excess capital you said this morning and announced a $25 billion buyback. two little points on that for me is all of that $25 billion aimed, if the regulators allow it and everything goes back to normal as planned, to be deployed this year, if possible? and i guess are you thinking at all about a difference between buybacks and dividends

your share price has appreciated a lot but it seems like your preference very much is for buybacks. >> as earnings move up and as do authorizations, wilf, you're vastly familiar with the process and the way that works but there's a couple of things that are different. obviously the fed has made it clear we have this quarter under the guidelines of the trailing four quarters income and our capacity there is bigger than people thought and it runs over $4 billion plus. we'll do that. we'll pay the dividend any ideas as we come out of the process and move to the new set of rules, we'll both increase the dividend and keep buying back shares. at the end of the day the question for a big company like ours, you can make an acquisition, but we're not allowed to make any sizeable acquisition but we did a small one the other day. you can buy your shares back or pay ddividends

our difficult dend dividend rate is 30% of earnings then we'll give it back to the shareholders to invest in other things we're down to about 8.5 billion shares at the end of the day we have all the capital we need to serve customers and make loans we had $980 billion of loans, we have 900 now we can put the 80 billion back on and have capital to do that we've got to give it back with dividends or buybacks and both will increase. >> brian moynihan, thanks for joining us appreciate it. >> thank you, wilf >> ceo of bank of america there, brian moynihan. >> a great well rounded interview. wilfred, great stuff we'll talk more about it later in the show. up next, a new short report has shares of quantumscape

tanking today. we'll have all the details on that next. a quick check on bonds for you. yields lower across the board. this has been helpful when you look at the rally in technology. growth and m momentum names all higher we have seen a sharp drop from 1.78 a few weeks ago where it was near one-year highs. we'll be right back. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

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19 minutes left to go, on track for a record close both for the s&p and the dow. let's check in on some individual market movers shares of quantumscape falling after scorpion capital released a short report that expressed fear over the stock's fragility. they claim the company is no different than other recently exposed spac promotions and ev frauds it goes on to say the. ceo is furiously pumping the stock on tv at every chance.

the stock down double digits virgin galactic sinking on news that richard branson has sold stock over the past three days it comes about a month after the vi virgin galactic chairman sold his stock. still to come with 18 minutes left, we will discuss shares of delta which are under pressure we'll have new comments from the company's ceo on net quarterly earnings fore bea why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond.

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we've got just about 15 minutes in the trading day we are now in the market so did, commercial-free coverage of all the action going into the close. mike santoli is here to break down these crucial moments of the trading day. today we've got chief investment strategist stephanie link here as well. we'll kick things off with the broader market stocks are rallying after strong economic data released this morning. both retail sales and weekly jobless claims both coming in better than expected the dow and the s&p 500 are on track for record closes. technology is working. the nasdaq also doing well momentum names also in the green. steph, every thursday you point to jobless claims and the improvement. we actually got some -- and i pushed back. they have been stubbornly high we got some real movement in the claims data today showing a five han handle so we're talking about

the lowest number of americans filing jobless claims in 13 months are you adding to positions on this good economic data? >> i'm not adding to positions, but i feel really good about my kind of combination of the economically sensitive names to benefit as the economy improves. i also own a ton of reopen names, even though they have had a nice run from the lows i still think that's a place you want to be but i also like secular tech super excited that health care is finally leading at least for the day anyway i think a thought was thermo fisher buying ppd. in this environment it's hard to see anybody raising guidance and they are to your point, we talk about data all the time and we really got incredible data across the spectrum that's not really a surprise we've been talking about the stimulus kicking in and we're starting to see the results. retail sales, i look at the control number that goes right into gdp at

14.2%. you are 11.5% above pre-pandemic trends in retail sales that's remarkable. on initial claims, yeah, we're back to levels not seen since the 14th of march. manufacturing continues to hum the housing index is the fifth best on record so all this data is really good it's not surprising. we talked about all the stimulus hitting gdp and improving gdp and improving earnings we're off to a great start in terms of earnings. we'll watch the reactions for sure but i think you still wanting a bit of a barbell in terms of owning some cyclicals and some secular growth i'm really excited for next week because we get a whole bunch more in terms of earnings and we'll hear from what companies have to say directly. >> we're not done talking about this week's earnings yet, steph. mike, very quickly as we sit at session highs, all of the major averages up by 1%, it's perfect today, great for the cyclicals and yields lower, so why are

yields falling today >> that seems to be mostly about positioning and people believing that they were going to be headed higher. i don't think it's just short covering in bonds but it's people feeling underinvested also the great retail sales number that we've just seen reported, it at least suggests in terms of the cadence of now things are going to grow from here that it's going to pull forward or the pace will ease back a little bit from there but i think it's probably much more a positioning effect an expectations effect when it comes to how people are already set up in bonds right now. so i agree with all of that. the macro backed up is great you're not getting the adverse of higher yields in response to it the market looks like melt-up mode at this point and you're really emptying the tank on the upside for this little leg higher as the market marches up. >> the global chip shortage for pretty much everything, for autos to smartphones is shaking things up. it says it will see tightness

into 2022. the chip shortage could result in larger companies getting priority from suppliers and potentially ga gaining market sr over smaller companies they are initiating amd to outperform arguing it will sustain its advantage over intel long term even if intel sees a short-term bump from the shortage la lots to unpack there, steph. what's your preference in the sector at the moment >> since tsmc is beating and raising and raising capex, i want to own their customers, apple and broadcom i did own amd last year and into early this year but it rose 75% and i took some gains. i think you can pick and choose which ones you want. my biggest position is lamb research, raising their capex by

74% this year alone. so clearly that benefits the cap equipment guys this stock, even though it's up a lot it's low 20 multiples. broadcom i would highlight because you get a 3% dividend yield as well. if you want to play autos, but nxpi is a great name they have an 11% share in the auto space and tmsc just raised guidance for the end markets in auto so lots to own, you've got to just pick and choose which ones. >> mike, your take on the chip stocks which are the biggest winners today? >> i think they're mostly confirming the macro case in the area still 1% or 2% as an index below their highs, pretty similar to where the composite is so it's not as if it's just semis racing ahead and the rest of the market chasing it they're participating. i think you could say that

removes a potential kind of negative yellow light that might be flashing if in fact the semis were moving behind. >> a lot of cyclical indicators showing strength i wanted to hit pepsi, topping earnings estimates in the face of uneven international recovery and weather-related disruptions. pepsi continues to see strong consumer demand for snacking and beverages. frito-lay up 3%. north america beverages up 2%. got a boost from bubly sparkling water. a few points from my conversation with the ceo. he said results would have been a lot stronger if not for the winter storm pepsico gained share in north american beverages for the first time in years. he said frito-lay had a nice tick-up in share he said unlike competitors, they kept up investment in innovation

and that has been serving them well for instance, the new fritos mac and cheese, they can't keep them on the shelves he expects some of the trends will stick around. breakfast at home, for instance, he said is likely to sus tan and even a hybrid work situation means we'll see americans and other folks continue to eat breakfast at home. that should help quaker grow this year. but he also noted that pepsi can be a reopening play as well and benefits from what we've seen in increased mobility, convenience store, for instance, purchases and people going to restaurants. even though they did get a big boost on the at-home trend as well as people hoarded groceries. it outperformed last year. it was considered a stay-at-home stock. one of the big questions is, is it reopening coke was always considered the reopening play because half of their business comes from away from home and people aren't sure

what that means for pepsi and its outlook. by the way, coke reports earnings monday. >> i wouldn't say it fits in either purely stay at home or reopening. there's some leverage to reopening. it's just not at the moment the kind of stock that will capture the attention of investors who are looking at profits racing ahead by 25% for the s&p 500 sustainable high single digit earnings growth or low double digit that you get from pepsi over many years is great when things look rough and earnings growth is scarce i think it's much more about style and fashion in terms of where investors are with the marginal dollar as opposed to anything pepsi is or isn't positioned for as a company. shares of delta are under pressure after a longer than expected quarterly loss. phil lebeau spoke to the company ceo and joins us with the highlights. >> hey, wilf, the numbers worse than expected but not by a huge

amounting. they lost 3.55 a share, that's a loss of $1.2 billion the focus not just for delta but the entire sector is what do we see for q2, especially as more vaccinations take place and more people wanting to take a trip. pretax income loss between 1 and up 1.5 billion dollars. that explains why shares are under pressure capacity down 40%. revenue down 50% in the second quarter. remember, the third row or the middle row, i could say, is blocked on delta flights through the end of this month. then ceo ed bastion says they felt comfortable about selling all seats on all of their flights. >> we were the last airline to keep that middle seat open because it was important our experts tell us with the vaccination rates where they're at and demand as strong as it is, it's absolutely safe to sit in that middle seat. >> we've got three airline

earnings reports on tap for next week, american, alaska, united keep in mind, the big focus is the path to profitability. on that front, guys, ed bastian had good news. delta expects to be at least break even by the third quarter. back to you. >> steph, pulled back a bit in the last week including today and all the reopening signs look pretty good. can you warm up to one of these airlines. >> i don't, wilf, because i'm not as crazy about the business models i think these companies have hard time even in bullish times let alone challenging ones but was very encouraged with delta they're doing the best that they can. i love that net cash sales was double in march versus february, so certainly seeing progress being made yes, to the point made on the june quarter pretax losses actually will go to break even by the end of the june quarter and even make money in the following quarter, so it's all

encouraging. you've got to just pick your spots. i'm comfortable owning boeing because it is a play on reopening and you have exposure to various different airlines and they are seeing an improvement in the 737 max situation, 787 is back into the production, so that's a free cash flow story and free cash flow improvement story i think this year and next year you'll see that. the stock is still down from $440 two years ago >> it's been all about, mike, the momentum on reopening and the view forward that demand is going to come back i wonder if now this is an indication that these reports are going to be more scrutinized from a profitability perspective. a $1.2 billion loss. bastian told phil he expects to be profitable in the third quarter. is there going to be more focus on the fundamentals and financials for these airlines now? >> i definitely think so there's a pricing story going on obviously there's great leisure travel demand that's piling up for the back part of this year

that should filter through but there will be more scrutiny because if you look at delta, the enterprise value in total of delta, debt pluss equity is wher it was before the crisis so i do think that, yeah, there's going to be a little more detail orientation in terms of, you know, exactly what these companies are doing, not just are they, you know, red or green based on reopening pace. >> you heard the two-minute mark, mike what are you seeing in the market internals as we go into what looks to be a very strong close? >> it's a very strong close and it's a little more mixed under the surface. you have more volume in declining stocks on the new york stock exchange than advancing stocks, so we have these days pretty frequently with mega cap growth and today health care working very well. the average stock not so much participating across the board more stocks down on the nasdaq than up at the moment. take a look at gold. don't often necessarily grab it but if you look over the last

six months or a year, it's up almost 2% today. some talk that real yields again took a leg lower because you have nominal yields going down as well and that sometimes bolsters gold. you look at this range over the last six months and it looks like it could be a base fwhbuilg in there so we'll see. the volatility index has been responding to the new highs in the s&p 500. we're clicking slowly to new lows it's pretty benign at the moment, will, relative to what it means for the equity market as it keeps going down. >> equities close to the session highs. they were touched 10, 15 minutes ago. we did see the dow above 1% or up 337 points, up 300 as we speak. the s&p is up 1.1% and nasdaq up 1.3% the russell is still in positive territory. real estate, information technology, health care, communication services, materials and utilities all up more than 1% today only two sectors in the red,

energy down 0.9%, financials just negative. bank of america still down 2.9%. oil up a little bit, gold up 1.7% at the close, sara, up 1.1% for the s&p 500, 0.9% for the dow, the nasdaq up 1.3% and bitcoin up 2.6% as well. bonds up as well today big rally day for a lot of assets 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. double record closing high the dow as a record high, up 305 points, above 34,000 for the first time ever. up a full 1% biggest contributor to the dow gains today was united health care health care overall had a very strong session best performing sector along with technology.

s&p 500 closing at a record high, up 1.1%. second positive session in the last three and we are on track for its fourth week in a row of gains. as far as the nasdaq, technology playing a big role in today's rally, up 1.3% tech and consumer discretionary right up there as bond yields fell sharply the small caps, russell 2000 index, up 0.4 of a percent energy which weighed a little more on the value names and the small caps coming up this hour, charles schwab liz ann saunders will be here with her outlook for the market and what she thinks could be a risk to stocks. and elizabeth saunders on the state of the consumer and what demand will look like once the pandemic is over can they keep up the hot growth? this is her first interview as being announced as the next ceo. let's talk about this record close. stephanie link still with us,

ernesto ramos and jim bianco join the conversation. first, mike, wrap up the session today. strong economic data which was interesting to see lower bond yields, but certainly powered stocks to finish high. >> yeah, so you had the confirmation of the optimistic case on earnings and on economic numbers in the first quarter that's flowing through with none of the negative offset in the very short term of tighter financial conditions in the form of higher yields so all that stuff seems to work together for the moment. i think you could quibble with some aspects of this rally, one of which is it has not been particularly broad the breadth of the peak peaked almost a month ago a lot of people pointing to these sentiment indicators saying people are pretty all in and pleased with how the market is doing and feeling very smart for being long that sometimes doesn't last but you can't argue with the rhythm

and performance of this market in the face of a lot of those things so right now it's been tough to fight it. >> jim, what is your take on that pretty significant pullback in yields that we saw today, particularly in light of such good data this morning >> let's go back a couple of weeks ago. what you had was everybody was universally bearish on the bond market so much so chairman jay powell was saying bond yields are going up and it's agood thing. we're all assuming bond yields are going up and now we're trying to attach positive reasons to it. in other words, everybody in the bond market was massivelydestin short squeeze. did i know it would be today no, but i knew the environment was ripe for that. today's move had all of the fingerprints there was a massive short squeeze. there could be some follow-through but i'm not sure

that the up trend since august has been broken. if you're short bonds, you're probably going to still endure some pain as we move forward. >> china's holdings of u.s. treasuries in february at the highest level since july, 2019, which of course helps i guess, jim. my question is why is this the reaction to all of this very good economic data was it all just discounted in the price of treasuries? is there a view this might not be lasting in thaerms of how hih these numbers can get and how strong of a footing this is on >> no, i definitely think it was discounted in. who hasn't said in the last several months that we're going to have some kind of monster year in terms of economic growth or maybe earnings, that the reopening is coming, herds immunity is coming because of the vaccinations that is the far and away consensus story. so we've had bond yields go from 50 basis points last august to

1.77 two weeks ago so in some respect that was all discounted in, so this might have been sell the rumor and buy the news now that we're getting the news of the good data, it's what we already priced in. >> ernesto, do you welcome this stabilization in yields? >> it's interesting. i agree with jim, it's technical in nature and they should continue to head higher as the economic numbers come in very strong like they did today with all the consumer data that was incredibly strong and you still have all the infrastructure spending that's going to come. so the consensus is we'll have very strong economic growth and i think that is the correct consensus and that's going to translate at the end of the day into earnings growth we're expecting 25% growth 2021 versus 2020 in the s&p 500 earnings and that's a very, very strong number. at the end of the day that will drive the markets higher, although the valuations are a little bit elevated. there are going to be pullbacks here and there, but i think the

conditions are very good financial and monetary for this market to continue to go higher. >> last hour i spoke with bank of america ceo brian moynihan. here's what he said to say about capital markets. >> the nature of the capital markets is they ebb and flow, wilf and so we are up investment banking fees 50% year over year. matthew and our team have done a great job and we hope it continues. the pipelines are full, all the things they do and so we expect a pretty good quarter next quarter. on the sales trading, naturally the first quarter is more robust so you had a combination of things so expectations may come down a little bit. so we'll see as it plays out. >> steph, i guess if anything stays close to the current levels that will be a huge positive, so i thought that was fairly constructive on the capital markets. what did you make of his answers overall? >> wilfred, didn't he tell you it was going to last forever >> yes, he did

from my lips to god's ears, which i liked. i'm not quite sure what it meant but i liked it it shall be. we decreed it. but getting back to the details of the interview, the earnings call underwhelmeda little bit. clearly the share price reacted to the downside. did he answer a few of the questions asked on the earnings call >> i thought he did a great job and you got out of him that he's going to be buying back stock in the next couple of days when they can get it and get out of the plblackout period. i like the fact that they'll do what they can. obviously they're constrained by the fed in terms of timing but i think where the stock price is trading, he should be buying stock he should certainly increase the dividend but they should be buying stock any time your stock is trading close to 1.3, 1.4 times book value, that's still very cheap yeah, the quarter did underwhem, wilf everyone is struggling with nii and why it's not doing that well

in the face of higher interest rates and that's because loan growth has been really sluggish. if you do believe that the economy is going to improve, and i thought he answered the question perfectly if you believe the economy is growing 6, 7, 8% gdp this year, even more, then loan growth should come back it's going to come back not so much in the second quarter but the second half of the year story. i also liked his answer about expenses the efficiency ratio was disappointing and cost was disappointing, but it seemed like a one quarter type thing. i get why the stock is down but i think if this thing falls a couple of percentage points, it's an absolute buy >> well, as moynihan told wilfred, it's already had a strong run the stock is up 75% in the last few months ernesto, what are you getting from the banks as far as any ideas? they certainly had strong quarters we've seen some differentiation. are you a buyer of any >> oh, yeah, we're happily

buying we had goldman sachs for a while. it's sicmply a play on economics like stephanie said. you can't discounting the fact that you have all these retail traders going in and buying gamestop and doing all those things that may not be necessarily quite what the pros do and then you have goldman sachs probably making a lot of money off of that, so that's probably going to continue for a little bit mainly it's a geared play on the economy and the fact that you have interest rates going higher on thelong end so loan growth will come in at some point and will help their bottom line and we hold them and we're very excited about the sector for now >> steph, i know you hold morgan stanley, who report tomorrow do you wish you held goldman sachs after yesterday? >> yeah, because goldman was tremendous it was absolutely a stellar, stellar report across the board

and they beat, especially on their global markets equity trading those numbers were just astounding and they clearly are taking market share. but i think morgan stanley is a little bit different animal. and we've talked about this. it's more like a wealth management piece, which i like they do have the institutional side and the capital markets, which i like, but they also are doing a lot in terms of m & a and e-trade and i think there's a lot of synergies that they can acquire. i think he's really decided that he wants to -- this is the ceo, james corbin, he wantsto diversify the company so they're not such hostage to the yield curve and the steepening or the flattening depending on what happens in the macro world so i like what he's doing. i think the valuation, it's interesting it's now trading at a premium to goldman but i think it should given its diversification strategy. >> it's been up more than double into the earnings tomorrow, morgan stanley robinhood responding to a

complaint from the massachusetts security division, a fight heating up kate rooney with the details. >> sara, we've got an update on that fight between robinhood and massachusetts. the startup responding to the state's security regulator saying they would try to revoke robinhood's broker deal registration in the state. that's part of a larger complaint against robinhood. in a blog post robinhood hitting back saying they don't believe our customers are as naive as the massachusetts securities division paints them to be showing a list of companies in a certain sector is not a recommendation, they say so a nod there from robinhood as being a self-directed broker they go on to say that the complaint reflects, quote, the old way of thinking. that new, younger and more diverse investors don't have a place in the market. by trying to block robinhood, the division is attempting to bring its residents back in time and reinstate the financial barriers that robin hoomd was

founded to break down. so painting the regulators as old school and out of touch. they say they're going to fight this in court and welcome the opportunity to correct the record massachusetts regulators had originally argued back in december that robinhood was game phiing and they failed to meet their fiduciary responsibilities >> an interesting one developing lots more to come. we have to leave it there for the market zone today. steph, ernesto, thank you as always. up next, liz ann sonders on whether the company can meet expectations as easily as recent quarters plus mike santoli will look at new data that can suggest market vulnerability is back we are back in 90 seconds. which saved investors over $1.5 billion last year. that's decision tech.

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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. ♪ ♪ ♪ stocks finishing sharply higher today following blowout economic data and strong earnings this morning from the banks. the dow and the s&p 500 both closing at new record highs. the dow closing about 34,000 for the first time ever. let's bring in liz ann sonders, chief investment strategist and senior vp at charles schwab. liz ann, it's been quite a powerful rally here. >> yeah. >> how much longer can it last how much farther can it go based on the fundamental news we're getting? >> don't i wish i knew that. you know, the fund mental -- >> you're the strategist. >> yeah, but i don't try to time markets in the short term, so i

said it with jest, but there's some seriousness behind it too because i don't think that's how investors should approach investing. clearly the economic news has been spectacular what was interesting at least today was watching the move down in the 10-year i'm not quite sure what to make of that yet, other than maybe given how strong the news is, maybe the bond market is pricing in peak growth coming sooner than expected. and we're still early in earnings season, but of course the numbers have been gangbusters so far we've had less than 40 companies report but 88% have beaten expectations the percent by which companies have boeaten so far is 20%, whih is well above the mid-single digit norm kind of metric pre-pandemic but we still have a ways to go i think it's not just what companies report for the first quarter but what their outlooks are particularly for the second quarter given that that's really

when we get into that acceleration mode from a comp perspective where consensus right now is for a 55% increase year over year in earnings as long as we see that the bar is set low, that acceleration in earnings is doing a lot of the heavy lifting and bringing valuations down, which clearly had been a disconcern, i think, until recently. >> yeah, it's sort of hard to understand what to make of the numbers because the comps are also pretty easy from where we were this time last year, on sales, on earnings so when you talk about the bar for outlooks, which is going to be the most important thing, where is it right now? just explain what companies did you do, what sectors you'll be watching for who can clear that, that will be a tell for whether the market can continue to rally. >> so the consensus excluding today's reports because they put our their consensus data on a

weekly basis is for a 21% jump in q1 and 51% jump in q2 some of the more cyclically oriented sectors like financials in particular is where the expectation is for the highest beat rate. so given the strength in cyclicals since early november when we got the positive pfizer news and those being a driver looking ahead into 2021 in terms of really powering that strong year-over-year growth for the overall index, i think that's where the concentration should be of course we've seen a bit of sector rotation recently, where you've gone more, i think, to -- away from that pure cyclical bias back to more of a fundamentally driven, maybe even a quality bias to what's been working. so the leadership pattern been a little bit different in the past month but i think from an earnings perspective, those cyclical areas and confirming that strength in the consensus estimates will be key to s

sustainability to the move in the market. >> how do you view sentiment and positioning? are there any signs that worry you? >> i think sentiment is the biggest risk given the strength of the market, every measure, whether it's behavioral measures or attitudinal measures are in the upper zones of optimism. when breadth is healthy, which it is for the s&p, less so for small caps or the nasdaq, that tends to be an offset to an otherwise risky sentiment environment. i also mentioned valuations are improving by virtue of the power of the denominator in the fcase of the forward e so you would need a -- in and of itself it doesn't suggest that the market will move contrary to that sentiment. >> liz ann, great to see you thanks for joining us. >> my pleasure, thanks. let's get over to mike for a

look at tactical indicates and whether the market is looking overextended. >> it picks right up on what liz ann was talking about because this does combine sentiment as well as positioning and flow indicators what's interesting is this is kind of a net balance of what those indicators are saying. so obviously we're up near the highs in terms of people being overoptimistic and exposed to the market but these circles show times when things have been at similar levels and either have been correct as a contrarian indicator and the next month was difficult for stocks or have not been correct. it worked in these instances this is like 2018 where you did have a rocky period right after that but did not work, for example, back in 2010, at least not immediately. so i think it's a good reminder that indicators like this basically tell you the atmospheric conditions and whether the market might be able to withstand any kind of negative shock better or worse

but don't tell you what's going to happen. often the market continues to find strength from other places and the good news just overwhelms whatever optimism has been embedded in stock prices, guys. >> good tell, though mike, thank you. stitch fix shares have fallen sharply since the company announced a planned ceo transition just earlier this week well, up next, incoming ceo elizabeth spaulding will join us to talk about the stock's reaction and why the company decided now is the time for founder katrina lake to step away from that role. that's coming up on "closing bell." plus amazon founder jeff bezos issuing his last letter to stpieholders before epng down as ceo. find out what he says the company needs to do better, later on "closing bell." cal: our confident forever plan is possible with a cfp® professional. a cfp® professional

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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. stitch fix shares continue to fall today, down more than 4% this comes after founder katrina lake announced this week she will be stepping down as ceo in august but will continue to work with the company as executive chair filling her shoes in the new role will be elizabeth spaulding. she joined the company last year and currently serves as president. before joining the digital retailer, she spent 20 years with bain.

elizabeth joins us now thank you so much for taking the time. >> thank you, sara great to be here >> it's good to see you. listen, the stock reaction from the investors and analysts i talked to, there was a bit of a surprise on the timing not so much on your appointment, but on the timing of this announcement why now? >> yeah. first of all, thank you so much for having me, excited to be here you know, it's an exciting week for us it's obviously bittersweet katrina has had an extraordinary role at stitch fix and built this company over the last ten years. really the timing felt right covid has accelerated everything for us as a business over the course of the last year we've been able to invest in our future so much of our category has frankly struggled within the last year as you think about apparel retail you've got so many players that are burdened with debt, burdened with retail stores and we've been investing in our future we've seen every trend accelerate for our business. you know, if we think about

where apparel was a year ago, about 25% was online and now it's 40% in the last two quarters we've added more clients than we did all of fiscal '20. really in terms of the acceleration of the business, it also accelerated the roles for us as a leadership team. it deepens the relationship of any executives going through a crisis but really allowed katrina and i to devoid and conquer. for me to play a role in shaping this next chapter and future of the business, to focus on innovation within our model and set the table with our future team we've had a new cfo join, a new chief product officer, dan jetta. and really we feel like the time is now and we will officially make the transition august 1st at the beginning of our next fiscal year. really we've been playing these roles over the last several months katrina frankly isn't going anywhere she is an iconic leader and she'll be our executive chairperson now. we joke around, we'll be each

other's bosses she'll be the executive chairperson of the board she says if there were a few more hours in the week, the work isn't done she'll be focused on sustainability and the role that we can play in the apparel supply chain, diversity, equity and inclusion, and things around brand partnerships and areas that are her strength. and so we kind of feel like we're getting the best of both with each of us continuing to play a big role within the business >> you mentioned that the business is at a pivotal point you've grown tremendously in terms of users and sales during the pandemic people were at home shopping at home, styling at home. how do you position this business for a reopening of the economy when we can all get out of our homes. >> no, absolutely. it's a great question, sara. i think what's been so exciting to us is we believe this is just a seismic shift in apparel

retail this has been a category that's been a little stickier it's been sitting in stores longer than a lot of other e-commerce part of it is the occasions that have been left are those i'm not sure exactly what i meant. those browse and discover occasions. the things that you're looking for. that is really the model stitch fix has been made for and why we think we've seen such great consumer growth. 50% growth in our new clients year on year last quarter alone. our strongest january on record. consumers are now starting to come back. we've seen that frankly and a lot of our data is the markets where there has been reopening are growing faster than our markets where things have been more closed. so the way that we're preparing for it is really this focus on continuing to expand our model i think, sara, you've gotten a fix in the past. our core model has been -- i would love to hear about it. it's this really unique model where you tell us a little bit of information and we use the power of our data, our data science and our algorithms

together with the human touch of our stylists to just send you a handful of items sight unseen. you keep what you love, sending back what you don't. that's been a hugely, hugely successful model we've sold $7 billion worth of clothes sight unseen we now have 4 million active clients. that model is very, very powerful but we see the ability to now extend the core engine of that, which is personalization, data and human touch to bring shopping to our customers in addition to this fix model so that is a big focus of our innovation now. >> no, i tried it a few teams to see what it was all about. i returned everything on the first shipment and kept everything on the second i don't know how typical that was, but thepersonalization really works once you pick up on that consumer data elizabeth, the outlook, though, disappointed last quarter and there were some problems with delivery shipment. there's also a lot of anticipation of this new service that i know you've helped shape

to sell to non-stitch fix customers. so just give investors an update after what was a sharp slide in the stock for the picture you painted for the rest of the year >> yeah. i mean we're really 5optimistic about where we're headed there were some unexpected things last quarter. one of the biggest thing was this notion of carrier delays. with our model in particular we don't recognize revenue until a customer checks out their fix so that had a big impact for us as we think about that glut of shipping in the holiday season we still feel great about where we're headed and the growth and migration to our model the focus to your point is on this new idea of shopping. imagine, sara, you got that last fix that you were describing and kept five items. now you can open up our app and look at what are the outfits that go with that. look at our shop your looks feed that will have outfits in context of maybe a great top that you kept. what are all the other things

that can go with it. or maybe you don't know exactly what you want to go with something but now you want to shop a particular category we have a lot of consumers looking for things for spring and finally going out again. so what this experience is is taking that idea of what our fix model has been but the streaming on demand version of it where you can see personalized looks for you and items for you. we recently launched for active clients this category based shopping which will be the underpinning for our launch for new customers who can start with just shopping and not a fix over the next few months. it's just fundamentally different of how we all think about shopping, which is typically search, scroll, filter, hoping it will fit you everything in our shopping experience is sized right for you, it represents your personal style preferences based on our understanding of a little bit of the data that you give to us but also taking advantage of those 4 million other customers that we have to understand your underlying style preferences

and so that we believe really unlocks the entire market for us and what we're so excited about launching in the next several months >> you're going to bring your folks back to work when you join as ceo in august, thousands of workers still at home? >> that's a great question we will do what's right. we've of course been following all the dc guidelines and understanding where that's at. frankly our maodel already had a lot of distributed work pre-covid. i think everyone has appreciated the flexibility of this. probably in the future more of a hybrid model so we will definitely open our offices. we've told people they can plan on september at this point but we imagine there will be more of a mix that work from home and work in the office in the future >> well, congratulations on the appointment of ceo we look forward to talking to you between now and then elizabeth spaulding. >> thanks, sara. >> from stitch fix. meanwhile we've got news on the nfl an sports betting.

contessa brewer has got it for us hi, contessa. >> the national football league is spreading the wealth among three companies, getting the benefit of try exclusive partnerships with the nfl ahead of football season kicking off again. of course we've got the draft coming up as well. it's with fan duel, with caesar's and draftkings. they'll have exclusive rights to content with nfl, the ability to place nfl content within their casinos. for instance, for caesar's or within their apps. and draftkings becomes the exclusive partner for fantasy sports draftkings is up 3%, caesar's not moving as much and flutter owns fan duel. of course the super bowl is the single biggest sporting event in terms of gambling for the season march madness, the biggest tournament overall for gambling so this is an exciting year. we're seeing expansions across

the nation as more states permit sports betting. citi announcing it's exiting 13 international consumer banking markets as part of jane frasier's turn-around plan mike mayo will join us to weigh in on that it's a move that he's been calling fofor r some time. we'll see if he was pleased with it 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.

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update with rahel solomon. >> r. kelly is set to go on trial for sex trafficking this summer a judge approved his transfer from chicago to new york city and set an august 9th court date the trial has been delayed several times because of the pandemic. in massachusetts, people sit in the rain to honor fallen capitol hill police officer william evans. a procession led the hearse carrying evans to the cemetery where he will be buried. the san antonio international airport is on lockdown an officer-involved shooting happened at the airport but there is no threat to the public the nbc affiliate reporting that people in the airport are being told to shelter in place. and staying in texas, in abilene police are looking for a suspect who robbed a convenience store wearing a gorilla mask police have not disclosed when the heist occurred or how much money was taken, but apparently if you can somehow identify that person, there is the potential for a cash reward.

sara, if you can figure out based on their clothes who that person is. i'll send it back to you. >> rahel, thank you. up next, david einhorn firing the opening salvo in what onuld be a war of words with el musk. find out what he said and why after this break 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. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth. ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪

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last hour we told you about a short report from scorpion capital that sent shares of quantumscape falling today quantumscape just released a series of tweets responding to the report saying qs stands by its data which speaks for itself we have provided higher transparency than any other solid-state battery effort we are aware of with details on current density, temp, et cetera the company says we have work to do so this will be our last comment on this topic. we will get back to work now and continue to let our execution speak for itself the stock did trade sharply lower today, down double digits. though scorpion i will say, wilfred, not super well known but it did have an impact.

the stock is up 3% after hours. green light capital's david einhorn slamming elon musk for their roles in the gamestop trading saga leslie picker has the details. >> musk facing the iron of einhorn. he wrote that musk's tweets and the tv appearance further destabilized it at a critical time musk later tweeted on the same day gamestonk. shares surged to $350 a share the following day. now a long-time tesla elon musk critic says if regulators want

elon musk to stop manipulating stocks they should have done dough with more than a light slap on the wrist when they accused him of manipulating tesla shares in 2018 einhorn goes on to say the laws don't apply to him and he can do whatever he wants, in reference to musk. neither man responded to our requests seeking comment, guys >> leslie, a lot of history there. it was a crazy period of time that summer. he brings it all back. thank you very much. up next, citigroup's international shift. the lender planning to exit retail banking in 13 overseas markets. an'll break down what this could me for the stock with bank analyst mike mayo. that's coming up next on "closing bell.

citi announcing thatthey'r pulling out of 13 markets in their global consumer bank they will off rate out of four wealth hubs those are london, uae, hong kong and singapore they remain fully committed in all markets in the institutional business and they're not wasting any time here. >> we're already getting going and there's no dillydallying here what we're looking at doing is we've begun the work the actions are under way in several markets. we'll look to compete in a timely fashion and we expect to be out in some markets this quarter. >> joining us on the phone, mike mayo with wells fargo. mike, great to have you with us.

you've been calling, i guess, for citi to focus their business a little more in recent years. do you welcome this news today >> well, there's a new ceo at citigroup and her name is jane "change agent" fraser. this is great. she's probably the biggest change agent at citigroup since sandy wile over 15 years ago this is a bold move. she's just day 46 on the job and announcing the shedding of assets in 13 countries, a restructuring of the global private wealth business. and importantly, she sets a tone at the top for a sense of urgency. i love that clip no dillydallying around here so i read from this memo to citi's 200,000 employees, your life is about to change. it's her way, her team's way or the highway. it's clear that she is a woman on a mission i mean nine minutes into the earnings call today with

analysts, she said, quote, a fundamental transition is what's going to take place. and the game plan, this was just a start. we're going to get more details later this year. so i love this start so short in her tenure so i'm optimistic but also cognizant of the failures at citigroup since they were formed in late 1998 the performance of citigroup strategically, financially, execution, culturally, reputationally has been pitiful. this has been a failed experiment for the past 22 years, so i'm more hopeful than i've been in the last 15 years that maybe she can be the change agent that kill help turn citi around. >> obviously with change comes from some execution risk, but the valuation is at a discount to some of the other rivals. does that valuation make it a top pick for you, or is the execution risk something that still concerns you relative to

some of the other big cap banks? >> you know, citi has to define who they want to be when they grow up. in other words, she -- jane fraser today said they will define their identity, and that's something that they're working on i mean they could be a global processing leader. that's over one-third of their revenues if you look at their wholesale and retail payments business they could do all sorts of things i like the stock we recommend the stock at wells fargo securities and more than anything else, tangible book value is $75 the stock price is $72 they can buy back probably 4% of their stock, 3%, just in the next quarter the sales of these assets can free up enough to buy another 5% of stock when you buy back stock below tangible book value, that's one of the best investments of citi's money is in its own stock. so it's just a ridiculously

inexpensive -- it's priced as if we're going into a recession but we're coming out of a recession. you're selling assets probably at a gain and they have this change agent who can potentially create a longer term story but the short-term story is still there for citi and all the banks. credit is improving far more than anyone had expected capital markets are stronger for longer and the yield curve even with the decline in yields today still helps out in the future. you know, citi said so much. >> mike, thanks for joining us and jumping on the phone we appreciate it >> thank you still to come, amazon's jeff bezos issuing his final shareholder letter as the company's ceo. the big change he's calling for, when "closing bell" comes right back

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>> nba legend shaquille o'neal announcing new board members for his charity to further the aim to help underserved communities. i caught up with shaq to talk about the announcement. >> i partnering with boys and girls club and community in schools in atlanta and las vegas. i picked those cities because those are the cities i spend most my time in and you want to

have my friends on board with me because dwighteisenhower said the greatest leaders are the ones smart enough to hire people smarter than them. and everyone on my board are way more successful than i am and considered my friend. >> mark shapiro is another i ask if he would like to see more done at the corporate level. >> only way we're going to open lanes and doors for the under represented is to truly bring in individuals that have a role at the senior level of companies. i'm talking decision-making, authority, control, power. when you see folks from the under represented areas getting hired at those kind of levels that's where it will really make a difference great to hire entry level and get more numbers in there but it's got to happen at the senior ranks for change to truly be meaningful. >> i asked shaq to weigh in on

the corporate backlash surrounding the georgia voting laws. >> it will put certain people at a disadvantage, especially the african-american, we just have to continue to fight it just surprised me that 12 to 15 guys just sat down and thought about certain things like you can't have food and drinks, you can't do this or that, it was kind of disappointing. >> shaquille o'neal and mark shapiro with new announcements to shaq's foundations board. >> up next on the show, the st"state of the union", jeff bes issuing his last letter to amazon shareholders and drawing attention to his comments about workers in light of the union vote when "closing bell" comes right back 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.

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on labor in the wake of the union vote in alabama. he asks in the letter does your chair take comfort in the outcome of the recent union vote, no he doesn't. i think we need to do a better job for our employees. now for decades guys, amazon has put customers unapology gettically first and that to its extreme efficiency also perhaps tough labor practices amazon has been accused of, andy jassy will be the new ceo will have to thread those numbers. amazon prime members 200 million an increase from 150 million from last year and spent $11 billion of video and music content up from $8.7 billion the previous year. to put it in context, netflix spent $17 billion on content in 2020 back to you. >> amazing what he has built,

it's a really good read for a shareholder letter thank you. stocks finishes at the record highs, s&p and dow more earnings on deck and we'll talk to the ceo of pnc to find out how regional lenders are fairing with the rebound in the economy. mike, what will you be watching? >> honestly the bottom market whether this was a one-day spasm that got yields compressed which enabled it to be a nasdaq-led day. that's been the dynamic we'll see if it relaxes of the earnings picture in general supports the idea there's upside to 2021 full year forecast and damps the issues with valuation that many have been concerned about with this market so far i think it's underwriting the optimist point of view even though stock market is up 5% in april and up 10% year-to-date.

>> with goldman sachs bodes well for morgan stanley will see how strong they are relative to goldman sachs standard we're out of time on "closing bell" thanks for watching. "fast money" starts now. >> i'm melissa lee and this is "fast money" tonight's today's trader lineup -- coming up we'll break down how traders are playing the record run. plus slamming the breaks on quantum scape -- you will hear from the man behind the report and attention frequent flyers. we'll tell you what delta said about the future that could have this stock taking flight new developments in the reddit development. remember whe