in the space realm, if you will. >> and as we get ready to hand it off to "the closing bell" what stands out to me is that none of these names would have been around 30, 40, 50 years ago during the first space race to the moon it would have been the big guys, boeings, lockheed martins, northrop grummans. this shows you where we are today. morgan, great to be with you today as always. >> thank you, you have a great weekend. thank you for watching "power lunch. welcome to "the closing bell." i'm wilfred frost along with sara eisen record highs for the s&p 500 for its fourth straight week of gains. a key early read of consumer sentiment hitting a one-year high for april and housing starts jumped to a 15-year high. morgan stanley and pnc among today's reports. next week we'll have an even

busier week of earnings. netflix, coke, ibm and many other companies revealresults. check out the price action in gold, higher again today and reaching its best level in nearly two months to cap off a fairly solid 2% gain for the week, for the shiny metal. 59 minutes left in today's session, sara. >> good week for stocks shaping up as well, up 1.4% on the s&p coming up on today's show, the ceo of pnc bank joins us to discuss a new initiative they're doing to help customers avoid overdraft fees. plus as big tech gears up for earnings, we'll talk to evercore's mark mahaney. we're awaiting a joint news conference with president biden and the president of japan in the rose garden. we'll take you there live when it happens one hour left of trade mike santoli tracking the action in the markets, wilfred has morgan stanley earnings and kate

rooney is looking at the wild week for doj coin. >> another rally day, sara just a tireless rally stretching to the upside. actually has accelerated a little bit even though it feels like a grind, fourth straight up week we're working on up 7% or 8% over that period that tends to be when you start to ask, it's not paid to overthink this strength is strength and essentially it's finding a way to stay supported. you mentioned value leading today that had not been the case for much of this week so i think you have to give the market credit and don't overthink it. these are the kinds of moments you're looking for when things go very steep and vertical and have some kind of a buying cl climax remember last friday we levitated into the close for no reason and held the gains? we're nudging higher today as well now, there's unusually strong breadth in one almost all big cap stocks are in

an uptrend if you get up here around 95%, you've really only seen it twice in 20 years. once was here. this is early 2004 the other time when you saw a cluster of these was late 2009, early 2010 so you got close in other periods. what does that say it happens early in multi-year bull markets so it's not something that happens at a big scary consequential peak in the market however, let's look at the 20-year chart of the s&p 500 and look at those instances. remember, early 2004, that was about right here and so you kind of flattened out for a little bit there was some downside chop and didn't make progress for multiple months. when you talk about this late 2009 period, you actually did go higher but not a lot of net progress over the subsequent months this doesn't mean it has to be this way i'm just adding context. there was another one when we got close in 2013 and there was nothing to worry about

essentially strength begets strength over time but once you get to these extremes, it's hard to ask for much more in the immediate term when we get to these levels, guys. >> mike santoli, thank you we'll see you soon. morgan stanley, move of the day. lower despite a big earnings beat this morning as the bank revealed details about the losses tied to the archegos margin call episode. what were the big takeaways? >> i think it was the archegos factor but the earnings themself were record earnings up 60% year over year. returning on equity up over 20%. but as you mentioned, the headline, they lost $911 million relating to the archegos capital blowup which took the market by surprise since nothing had been disclosed. the ceo suggesting that was because the loss was not material in light of their otherwise record revenues this quarter. disclosures aside, why was their

loss bigger than, say, goldman sachs? morgan stanley was the number one prime broker for archegos by size goldman sachs was not in the top three and only recently took them on as a client. second, the importance of viacomcbs in all of this which morgan stanley had been the lead underwriter for. james gorman on the earnings call. >> by the fact that one of the large single stock positions related to a security in which we have been an underwriter and we thought the right thing to do was to close that previous underwriting which happened on that friday. so we had to hold off, which caused us to be later than some, if you will. the reason for that was not that we weren't aware of what was going on, we just felt we had an underwriting obligation to deal with. >> morgan stanley sold around 13 times more stock in that secondary placing of viacomcbs than goldman's did who therefore decided they could start selling

the stock sooner a senior source implied there was no hard feelings on this but rather goldman sachs was in a more convenient position as things played out. morgan stanley felt while selling sooner wouldn't have broken rules, it wasn't the right thing to do as a lead book runner morgan stanley's losses were far smaller than credit suisse and nomura they didn't know that they were all taking the same massive positions for one single client. on the call, the cfo touched on that issue >> it really came down to the fact that this firm had large positions, the same positions in the same names at other banks across the street and it wasn't apparent to us i think that's what isolates the situation here or makes it more un unique we scrubbed the portfolio. we haven't found anyone that has similar fact patterns or copycat strategies and we'll continue to be diligent around all of those

points. >> gorman said we don't like taking losses ever and clearly, therefore, regretted having this client that led to the massive loss but totally recommitted to the prime brokerage business long term going forward. sort of saying you can't look at these things backwards jonathan pruzan and gorman suggesting it was a one-off issue and they have gone through their list of clients and assessed things and are comfortable that it's a one-off. >> a one-off but i guess a surprise and much bigger surprise than that. >> big surprise, exactly you know, you've got to put it in context as well $900 million loss for a client that would have been generating maximum tens of millions in revenue. >> why didn't they disclose it earlier? >> again, the point on that was they were in a quiet period normally for earnings. the argument that was a thinking point for management but backed up and confirmed they say by their lawyers was that you'd only have to disclose it if it

was going to really materially change the direction of your earnings report. this was still a massive beat. in fact the department that prime brokerage sits in was $2 billion in revenue above previous quarters. if there had been a normal quarter on the cards and $900 million losses coming, you'd disclose it as being far bigger than expected. but i would say that various reporters at cnbc, including myself and colleagues at other companies were trying to speak from them and hearing from some sources internally to suggest there wasn't a big loss so people have felt a little misled, not just lacking in disclosure >> morgan stanley lower. financials higher as we head into the final hour here turning now to the crypto world, doge coin prices breaking out, gaining more than 400% kate rooney with a look at what's going on with the top dog of the meme trades, kate which wasn't even supposed to be

a real cryptocurrency. >> top dog and an underdog so against all odds, dogecoin is the biggest winner this week the digital currency started out as a joke in 2013. the founders called it a fun alternative to bitcoin it's now a top ten cryptocurrency in the world with a market cap of about $40 billion. about half of that was added just in the past day so you might know doge by the shiba inu dog name it's got an especially loyal fan base on reddit and a tweet by elon musk helped push that price to a record by about 10 cents. this is emblematic of what's going on with social media colliding with markets right now. anything tied to a meme, whether it's doge, bitcoin or gamestop is getting a lot of attention from retail investors. that in turn often gets the attention of institutions.

coinbase does not offer dogecoin but robinhood does and said that it saw a major outage in its crypto trading feature after, quote, unprecedented demand. robinhood is now number one on the u.s. app store this week coinbase came in at number two after its listing. that app store dominance is seen as a little bit more evidence that investing is becoming a form of entertainment for a lot of people. guys, back to you. >> no question about it. kate rooney. kate, thank you. after the break, shares of pnc moving higher on the back of earnings this morning. we will break down the quarter and the state of regional banks and the economic recovery when we are joined by the ceo next. you're watching "closing bell" on cnbc. the dow is up 163.

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welcome back the dow up 167 shares of pnc rallying today on the back of an earnings beat

that stock doubling over the past year. pnc's ceo joins us for an exclusive interview. bill, welcome back to the show good to have you. >> it's good to be here. thanks for having me, sara. >> so big bottom line beat, better fees, big improvement when it comes to credit and those provisions there but loans are still soft how do you characterize the environment that you're operating in right now >> look, the economy is very strong credit is very strong. consumers are flush with cash and they're spending loan demand just isn't there and i think it's going to be there. i think we'll see utilization pick up as people build inventories and the economy gather steam but it's been fairly muted for a variety of reasons. >> what are those reasons and what is the outlook? >> a bunch of different reasons, very large corporates are flush

with cash because of public market and the access of liquidity in the public markets. for our private companies, it's more about at least thus far not building inventories and doing capex. on the inventory side demand is so strong that literally they can't build inventory. the combination of that and the supply chain disruption is just slowed down what i think we would normally see at this point in the recovery in terms of loan growth so it's kind of -- you know, we're hoping for it in the back end of the year, but thus far it's pretty muted. >> bill, i was wondering how you're thinking today about the trade that you made last year, selling blackrock stake and buying the u.s. assets of bvva i guess in an ideal world you would have gotten a better price for blackrock given where it is today. >> look, i love the trade.

we bought bbba at a fixed price when banks are 40% cheaper than they are today in a perfect, perfect world i would like to sell blackrock today and buy bbba six months ago but the perfect world doesn't exist. we're set up for a phenomenal future everything is on track with the acquisition and we wouldn't be happier. >> in terms of expanding, it's so interesting seeing what's going on in the space now. it feels like there's a little more consolidation maybe not a total unleashing of it i just wonder whether you're looking around at other areas. lots of banks have capital and banks have buybacks. what about hsbcs, other foreign banks, u.s. assets seem to be on the chopping bank. >> as relates to pnc, we have our hands full at the moment, at least as it relates to bank

acquisitions as an aside, we have been acquiring in the payment space, you know, even in the mortgage servicing space recently but it doesn't surprise me that hsbc is selling that franchise it wouldn't surprise me to see other people come into the market it's tough in today's world, low rates, high-tech costs, no loan demand, to make returns in a subscale franchise >> bill, you mentioned that consumers are flush with cash. i just wanted to dig in a little bit deeper on the economy because you have such a good read there obviously deposits are way up. i don't think there's any question that the economy is booming right now and is going to with all the stimulus that has flooded in but what about the staying power of this economic recovery? what do you see down the road once some of the stimulus money, the checks start to wear off >> well, i think, you know, the thought and the hope, and i think it's going to be true, as the stimulus wearsoff, we'll

get the real footing on the economy coming back as smaller business and some of the affected industries, you know, reopen and i think we're going to see that we're starting to see that activity in the interim we're seeing consumer spending, retail sales support the economy and we're obviously seeing manufacturing readings at really high levels so i think it's sustainable. i think it will be there for a period of time. >> bill, the acquisition did not necessarily transform but alter your geographic footprint within the u.s. and i know you're very happy and committed to all of your markets but are you particularly pleased at the moment to get that exposure to the sort of sun belt area it seems looking at house prices, looking at migration of people, looking at a lot of factors, it's the place to be in the post-pandemic world. >> you know, look, it was the place to be in the pre-pandemic world. that's obviously accelerated and of course we're excited by that.

you know, you look at the size of the market in texas, just in terms of opportunities of corporates and the growth in population, it's massive you know, we're going to go at this hard and we think we have a good hand to play. >> bill, i wanted to talk about one of your recent announcements on overdraft fees. everyone hates overdraft fees. everyone hates you guys for charging overdraft fees. and some of the financial -- you know, some of the fin tech companies are trying to disrupt this area and entice customers without them what are you doing about it? >> so first up front, you'll see a lot of ads for accounts that say no overdraft fees. that's because they don't allow overdraft. we and frankly every other bank has no overdraft fee accounts. it's foundation checking at pnc. but in that instance we return all the items. if your car payment comes due and it's on auto pay, we would just return it and you'd be late

and you'd get charged a fee by them and have a knock on your credit score what we've done is basically give you realtime information of what's happening in your account and allow you to choose what you pay and don't pay. so in that instance if it came up and you said, oh, i've got to pay my auto payment but you know what, i'm not going to pay this check to my brother-in-law or somebody else, i swiped right and choose who i pay and not we give you extra time to do it. we give you continual notice when you're on low cash or negative balance and we give you all sorts of different ways to cure it before the time runs out leading to that final choice of, you know what, i'd rather pay the overdraft. i'm going to choose. we don't choose, you choose to pay it because that's a better alternative than missing my mortgage payment or my car payment. it's a massive, massive change to the way overdraft has historically worked in service

to our customers it will eliminate a massive headache, i think, for people who have ever been caught in that overdraft trap and we're really excited by it >> you expect others to do the same >> i think in some way, shape or form i think the revenue stream itself is unsustainable for the industry you can't grow your base business if you're continually aggravating 20% of your account base. i don't see how you succeed at that why didn't we do this before we didn't have the technology to do it before technology has finally gotten us into a place where we're no longer reliant on batch processing to figure things out. it's all realtime. you think about the power of technology, we could get to a place, sara, where forget about overdraft for a second, you could get to a place where at the end of the day you could choose and agree to all the payments going out of your

account. you think about sense of security on fraud, on just knowing what's going on in your account, realtime customer information is a massive breakthrough and i think we're pretty unique in being able to offer that >> well, you certainly don't want to aggravate your customers, that's for sure bill, thank you for joining us. >> thank you for having me, guys take care. have a good weekend. >> bill demchak, ceo of pnc. universal's hollywood mark opening its dwgates to guests. and check out some of the top search tickers on cnbc.com some new names including dogecoin and hometown international. that's the new jersey deli with a $100 million market cap that david einhorn called out as a potential warning sign in the market the 10-year is still top

welcome back shares of cnbc parent comcast higher today after raymond james upgrade the stock to outperform citing optimism around nbc universal and in part the phased reopening of theme parks universal's hollywood park is welcoming guests back today and that's where we find our julia boorstin with the latest julia, great backdrop. >> reporter: well, wilf, it's great to be out in the field and you can definitely feel the optimism here when there were lines when the park opened this morning. the park was sold out for its

first three days open to the public universal hollywood and the 48 other theme parks and water parks here in california, they're now all able to operate at 25% capacity with online reservations only and of course distancing within the parks. now, the theme park industry contributes $1.5 billion to annual tax revenue and $14 billion to state commerce to the state of california here universal hollywood took 13 months when it was closed to finish up a new ride and also to revamp jurassic world, the ride. both universal and disney have been investing in technology to enable online ordering of food and to help streamline and avoid crowds now, disneyland and its california adventure park open an april 30th. that park is seeing hour-plus delays for booking online reservations sara. >> i guess that's the pent-up demand thank you, julia. shares of netflix have

underperformed the markets so far this year as the company gears upfor quarterly results. we'll talk to mark mahaney about that name and which tech stocks he likes and a quick check for you on bonds. yields are higher today after a big fall yesterday the 10-year yielding just around 1.57%. it's holding back technology with the nasdaq underperforming and the tech sector in the red we'll be right back. do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy

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just a few small steps can make a real difference. ♪ ♪ ♪ learn, save and spend with guidance from chase. confidence feels good. chase. make more of what's yours. getting a little lift here into the close the dow up 180 with 30 minutes left of trading. shares of sun run are moving today. simmons energy, a division of piper sandler upgrading the stock to overweight. the firm sees buying opportunity in the pullback of the share price. down 51% from a recent high. the analyst also citing strong growth ahead in residential solar. shares of work horse group also surging today. b. riley initiating that stock

at buy saying the company is positioned to beat its competitors to the electric vehicle market and acquire essential customers as it increases production this year up 15% good old cincinnati, ohio, company. >> nice gain for that one. we just did a local company for you as well in terms of the last interview. time for a cnbc -- except they're expanding to other areas so a mix now time for a cnbc news update. courtney reagan has that for us. >> yeah, i'm another ohio an so you're surrounded here authorities say a 19-year-old from indianapolis is the suspected gunman at the mass shooting at a fedex facility where eight employees were killed investigators have searched the suspect's home looking for a motive. president biden is hold his first face-to-face meeting with a foreign leader since taking office, japanese prime minister suga and biden are set to hold a joint news conference in about an hour from now see how they are addressing

topics from climate change to china and the transaction. that's tonight on the news with shepard smith. and russia has broadenedit response to u.s. sanctions it is banning eight top current and former u.s. officials from entering russia, including fbi director wray and u.s. attorney general merrick garland. and in connecticut and much of new england, a late taste of winter parts of the nutmeg state got up to 3 inches of snow today. the storm ranges as far north as maine with some parts of vermont and new hampshire getting nearly a foot of snow that's our cnbc news update for the hour back over to you guys. >> oh, that's wrong. courtney, thank you. courtney reagan. still to come, airbnb a big reopening play what the company's ceo is saying about the competition in travel. that's next. plus evercore's mark mahaney on the internet names he likes most we'll be right back here on

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shares of airbnb are up 160%

since going public back in december our dreeeirdre bosa caught up wh the company's ceo. >> he says travel and booking rebound continues but a new obstacle is taking place and that is making sure that there is enough supply listings to meet that demand >> well, you know, i think that we probably will have a high cost problem where there will probably be more guests coming to airbnb than we'll have hosts for. what we think is we think there's going to be a travel rebound coming that's unlike anything we've ever seen so we are working our very, very hardest to get ready for the travel season. >> while airbnb has typically had hosts come to the platform organically, it is now spending more on marketing campaigns as competition heats up and rivals like expedia offers host incentives he also said that remote work is

here to stay and companies that shy away from a flexible hybrid model will ultimately lose out >> it's a sign of the future any company that is not flexible is probably going to lose out on talent so i don't think the companies will be dictating this >> sara and wilf, if he's right, it will be interesting to see what happens at some of the companies like google and uber that are going the flexible route and requiring employees to at least live close to their offices. >> the less flexible, that is lex shortened. dee, thank you very much for that we'll see what happens on that front. we'll also want to dive a little bit deeper into the likes of airbnb a new note out today saying it sees the stock as the fastest to recover from the pandemic. let's bring in mark mahaney. mark, thanks for joining us. do you agree with the scale of

what brian chesky was saying in terms of rebound and them being well positioned for it >> yeah, i think he's going to have a demand problem on his hands, which is a good thing to have, especially versus what they faced last year the steps they're taking are trying to create liquidity amongst hosts. i think they'll have more of a demand problem, a rebound, if you will, than expedia and booking because it really stepped up because of consumer usage during covid and they have a very strong exposure to the north american u.s. market which is recovering faster than the european market. >> as we look ahead more broadly to all of your stocks earnings coming up, a week or two ago or month or two ago some were looking relatively attractive valuationwise and a big trade-off is whether they're fully priced when we look, first of all, at some of the retailers, do you think online retail will benefit as much when people start

spending again as it did last year are there some tough comps to come >> that's a great question i think it's the overhang question, if you will, on some of these names like amazon we know the tough comp is coming the key on the march quarter earnings call in about two weeks isn't the march quarter result, it's going to be the june quarter guide. does amazon think it can sustain premium revenue growth we actually think it can we think that's going to be the unlock on the stock. the best data point i have is what came out yesterday, which is that first quarter online retail sales in the u.s. grew at a faster rate than they did in any of the prior three quarters. it's not like we had a covid pop in terms of online retail last summer during the worst parts of the pandemic, hopefully. it looks like the growth has continued to accelerate. that tells us that there's been a permanent pull forward of demand who benefits from that better than anybody else in the online retail amazon

>> so you like amazon. what about netflix, also facing some tough comps as people stayed indoors during the height of the pandemic. does this stock still work >> yeah, i think it does but i'm more nervous about netflix going into the june quarter. the one trip-up here is i think the net sub ads which is what the stock trades off so aggressively, i think they're mine for the march quarter the street is looking for 4, 4.5 million new subscribers in the june quarter given that you've got a soft new content slate and they're going through a price increase, that could be at risk i think netflix sets up great for the back half of the year, not so much on the june quarter. >> mark, i'm being told one final question so i'll have to make it a broad one and focus on the names that are super geared towards advertising revenue. which is your top pick of those and why? >> just barely facebook over google both benefit from very strong macro recovery

kind of structural step-up in demand for online advertising because of covid they both still have secular tailwinds. facebook is slightly less expensive than google but both names should work. >> mark, great to see you, thanks so much. >> thank you, wilfred. straight ahead, wall street getting very bullish on the housing market we'll dive into the data next, as we go inside the market zone. hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small

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we are now in the "closing bell" market zone, commercial-free coverage of all of the action going into the close mike santoli is here to break down the crucial moments of the trading day and we've got charlie back as well we'll kick it off with the broader market stocks are at session highs with the dow and s&p 500 both on track for record closes for the second day in a row. the nasdaq is now trading just below its own record closing level. and it is positive, mike, even though technology is underperforming. the tech bond trade, i know we've been talking about it for weeks and it's what caused tech to fall and correct when bond yields shot up but now bond yields are higher. they really are attached at the hip. >> for this phase they have been it's not some law of nature that's been the case forever but right now that has been the cue for deciding what groups perform and lag in the market. it's been a very big cap focused push this last little stretch of the rally. two all-time highs

it's getting a little melty to the upside i'm looking at the new york stock exchange almost 500 new 52-week highs that's strong. it obviously shows you no sellers are really coming in to take the opportunity to unload at these levels, even though there's been lots of excuses and the market has kind of had its gears slip a little over the last couple of weeks i think you have to say, again, it's extended but this is good overbought markets can stay that way for a little while i see the potential for mean inversion not being friendly in the short term. >> charlie, i guess you've seen all of the economic data that you were hoping forgiven the gearing of your portfolio toward economic reopening type names. were you surprised by the strength of it, the retail sales, for example >> absolutely. everything has come in even better than i had thought. earnings are coming in better than i thought, that retail number was eye-popping fourth quarter numbers were actually very good

i'm writing a letter for our first quarter and it's all about what happened in the fourth quarter. operating income for reopening stocks was up in many cases 20%, 25% from pre-covid levels. so we're getting excellent fundamentals right now which had not been baked in. during covid companies took a lot of costs out and that's coming in with a positive surprise. >> mike, the head scratcher of the week, though it's a good thing for markets, is that yields have pulled back despite all this great data. to what extent do we think that's because it's being anchored by international yields and, therefore, perhaps it's hiding what might come and catch us later in the year if inflation does pick up a bit more >> i think there's a lot of ways to slice it. one is just a flow picture and there have been enough global flows to capture what yield advantage u.s. bonds have. there was very heavy positioning against bonds. remember, bonds had their worst quarter in many years so people were underinvested and arguably

the run from half a percent on the 10-year up to 1.75 was exactly discounting this great stretch of economic data that we're now seeing in front of us. so i think there's a little bit of a lead and lag factor going on as well and it has taken the market a while to come to terms with the fact that this is not necessarily going to push us into a fed tightening cycle very quickly so that gets manifested through some of the crowded trades like the steepening trade in the yield curve for the treasuries. >> archegos capital management setting op a storm when it and a number of banks began selling out of highly leveraged positions in u.s. media companies, discovery and viacomcbs along with chinese companies like baidu and tencent music. morgan stanley surprising the market somewhat with a close to $1 billion loss though smaller than credit suisse charlie, i've got to get your

take on this the last time we had you on this show in particular was just after the sell-off had happened, i guess, but perhaps before all the stories had come out what's your take as we sit here today, firstly on where viacomcbs trades sit now and if you've got back into the stock and which banks played which roles? >> i think the story is the stock has been in unstable hands for the last month or so people like me who loved it, owned it at 20 and 30 and 40 and 50, and then all got out, most of us got all the way out in the 90s or 80s then they did the offering when somebody does a convertible bond offering, simultaneously those buyers often short the stock. then there were those big block trades so the stock is just not in natural long-term hands right now. last time i was on i think the stock was 72 and we said it was still above our calculation of

intrinsic value. at 39, it's now below our calculation of intrinsic value we have a value in the 50s so we want to be careful and wait until this settles down, but at this point it's an attractive stock >> so you're buying more, is that what you're saying, or waiting to buy more? >> nice try. i won't tell you when we're going to trade we have learned to be more patient. when it passed our valuation, we didn't bail right away because the market does take a little while to get to the right name but we are today at a level that is below our calculation of intrinsic value. >> got it. new housing data coming in strong, matching some of the other economic data we've seen lately march housing starts up more than 19%, a 15-year high that is spurring lumber demand with prices up 50% just in the last month meanwhile wells fargo getting bullish on the home builders those stocks have seen a huge

run, more than doubling over the last year, mike, which makes this an interesting call i guess if you think that there's room to run in the housing market and the boom we've seen, it's not too late for these stocks what do you think? >> some estimates in terms of the shortfall in housing units relative to what the demand should be are that there's like five years worth of current building rates just to meet demand that's expected i don't know about that. i don't endorse it but that's the kind of stuff going around right now. i don't know what happens to affordability along the way when you see what's going on with lumber prices and bidding wars and everything else in a lot of these hot markets. but again, i look at the 52-week high list today. it's sherwin-williams, black and decker, all the home builders, home depot so it's not as if you can quickly get to a clearing price in houses. you know, that sort of undoes the cycle. so it's been tough to fight and it's one of the bigger drivers

of the economic revival story that goes beyond the stimulus push and the reopening. >> charlie, it feels like -- >> charlie -- >> that we did see -- sorry, sara that we did see -- >> no, no, no, go ahead. >> -- inflation expectations catch up with the market and they have plateaued for the last month. when you see things like lumber up 50% year to date, house prices, retail sales, do you think inflation risks are still being underestimated by the market or not? >> yeah, i still do. i think back in december i talked about in this month, this report we were going to see the first 2.5% cpi we got 2.6 in that month we got inflation up in one month 0.6% now, when you annualize that, you get a number over 7% a year. i'm not saying you should annualize that but we are staring at more than 2.5% inflation for the next year. i think it's going to be close to 3 you can't have a 1.7% 10-year with 3% inflation expectations so people still are anchoring.

nobody has seen any inflation for 30, 40s years. expectations are going to keep going up and they need to because all the factors are pushing higher >> i was just going to ask, charlie, if any of these home builders look like good values to you or if they have run up too much >> yeah, this rally has taken -- it took us ten years to get from 1 million starts in '09 back up to 2 million, which is an historic average -- excuse me, i'm sorry, back from 0.5 million to 1 million now some people are calling for 2.3 million starts that to me has never happened and is unlikely to happen. and so the way we've been investing in this sector is through stanley black and decker, which is still a good value. i don't think any of the peer builders are good values at this point, but this is still a great business with lots of demand. >> cruise line stocks having a rough week seema mody looks at the biggest

laggards >> yeah, down about 6% on the week and that's brought up the question of valuation. the industry ships docked for the past 14 months and slower return to sailing. analysts are looking through the negative near term estimates and basing valuations off of 2023 projections when investors believe the industry will be smooth sailing again multiples of 12 to 16 times earnings part of the issue is there's no start date cruise line ceos did meet with the cdc and white house covid task force earlier this week but still awaiting a decision. that's why liquidity, liquidity is the essential focus for these investors. >> charlie, tell us where you stand in these names now. >> we still like royal caribbean. there's no doubt about it, people don't like the fact that they don't pay taxes they don't have a lot of friends in washington. they tend to be international companies. but they're going to come back the stocks have done very well royal has gone from 23 to 80 something, so we still like the

industry but it's going to be bumpy here for the next quarter. >> what's priced in, mike, as far as a recovery in some of these names? we talked to arnold donald all the time they just keep pushing back the timeline but they say the demand is there and people wanting to cruise. >> i think the market has been busy pricing in continued survival up to this point and obviously eventual return to cruising on a somewhat full basis. i don't think there's a real particular data tae attached tot it's not that precise until you know the timing of when things will be allowed to happen. i think the market has been pretty generous in taking the enterprise values of these up pretty high because they have allowed them to raise a lot of equity and debt and assume that return to normal is not too far beyond later this year. >> what about the dow transports, mike, different area, different performance. >> dow transports are on one of their historic winning streaks

or trying to put in one of these huge winning streaks in terms of number of days and weeks higher. definitely look like the overall market does, very extended but for good reason. everything is going well because of the rails a lot of people love if you wanted a reflationary or inflationary pricing power as well as volume tell, it's all working together in the transports typically you see the transports industrials, which is the broader sector that they exist in doing well and leading the way and not really kind of buckling at any point along the way and you say, fine, the macro message to the market us still intact even if you can't necessarily believe that it's going to be in a straight line and the equity line has priced in a fair bit of this reopening improvement. >> charlie, what's your favorite reopening or economic recovery story play at this point >> well, it was madison square garden entertainment, which owns madison square garden. we were so excited about fans

coming back to the stadium i think i said that on your show last time. unfortunately they just bought madison square garden network, which is a regional sports network, which is not as good a business so that was number one i'm going to move that off and put mosaic onto my number one spot with the reopening of the economy and people going to restaurants, food prices are heading higher, all agricultural prices are heading higher. farmers are doing extremely well and mosaic, the fertilizer company -- >> so you're dumping or holding msg. >> no, i didn't say that you guys are trying to lead me today. no, i said that we were unhappy with the announcement and, however, this is one of those cases where the stock is so cheap. we think the value of the sphere which they're building, madison square garden, the rockettes, you put it altogether and add the cash flow from the networks, we get a number over 150 so this stock is extremely cheap where it is today around 90. but the story is a little more

muddy. >> all right we'll excuse that, charlie we just don't want anyone accosting you on the street. >> they will anyway. >> we want it to be crystal clear. >> charlie, you're just the star they want to accost. >> no, no, no. they give me a lot of heat for viacom which it was at 10 and kept pointing to you as the cause of it. >> all right hopefully that's all settled two minutes -- there's the two minute mark to go in the trading kay. mike, what are you seeing in the market internals >> they are net positive but not as strong as you would think you see the new york stock exchange split not quite 2 billion on the upside, 1.2 billion down below on declining stocks so it's been this way for many days where there's still a little bit of a push slk/pull. small caps and tech have a lot of stocks away from their high i did want to look at the u.s. dollar index

it's been a story, the weakening pattern recently in the dollar, had this rally off the lows, now it's packing off again certainly well above the recent lows but down from the 50-day average. traders are looking at those levels as well and the volatility index has been giving way to the downside as we've discussed quite a bit, now just above 16. so new highs, calm market, lots of rotation that's restraining the volatility and the overall index is compressing volatility. it should happen this way. we'll see if this trend stays in a straight line, wilf. >> calm market, lower yields, ticked up a little today but 1.57 on the 10-year. gold is up this week decent week for the shiny metal, up 2%. major averages set for record closes anything positive for the dow and s&p. the nasdaq composite is just in positive territory which hasn't been the case for the whole session up 0.1%.

materials the best performing sector up over 1%. the worst performer is energy, down 1% and tech is just negative as well banks, very mixed performance. wells fargo up 8% whereas the likes of morgan stanley down 2.5% for the week. there goes the close, sara at the close, a record close for the s&p 500 up 0.3%, dow up half a percent. nasdaq just positive at the close. all of those averages up more than a percent for the week. a strong finish capping off a very strong week for stocks. welcome back, everyone, to "closing bell. i'm sara eisen along with wilfred frost and mike santoli double record close. the dow closing up 166 points, half a percent, and at a new record high. closed above 34,000 yesterday for the first time ever. solidly above there as well. you had a shift into the value in cyclical names which helped some of the larger cap stocks

and the s&p 500, which closed at its own record high up 0.4 of 1% materials the best sector. the only two losing sectors were technology and energy. but for the week every single sector closed higher utilities came up on top along with materials the nasdaq finished up about a tengt of 1%. it's not too far off from its own record high. also closed higher for the week. and the russell 2000 closed up a quarter of one percentage point which makes it a full percent for the week for the small caps. treasury yields have pulled off a bit recently after a huge run-up to start the year coming up, bridgewater's co-chief investment officer on sustainability on why she thinks rates will remain low and some of the opportunities that could create for investors. we are just moments away from president biden's news conference with the prime minister of japan. we will take you live to the white house as soon as that begins let's talk about this record close, though. charlie is still with us

eugene profit from profit investments joins the conversation first to you, mike fourth week in a row of gains for the s&p and the dow to new record heights it's a powerful rally. >> yes the tale of the tape is really becoming more and more impressive this upward grind has been pretty tireless and relentless if you're an index owner of the s&p or trader of it, the best move is to do nothing. the s&p closed at 4185 the intraday low last year was 2191 so you're up 2,000 points in the s&p 500 in 55 weeks. it's a little over 90% so you can certainly be tempted to say when are we going to reach that moment where it seems like enough already or we exhaust a lot of the positive trends that have been driving things you know, the market has foiled that kind of thinking for a while now simply because the macro is too good. the fed is kind of ultra easy relative to the economic news flow and you do really have a case going on. so i think we have to be wary of

sentiment, be wary of the thin air that the indexes are getting up into with this somewhat of a melt-up like action. but really it's very orderly in a way. there's also lots of stocks going down so it's not as if it's indiscriminate at this point so you have to sort of respect the trend while basically saying it wouldn't take much of anything to have it back off a little bit. >> eugene, when you look at all of the data and earnings that are coming out, does it make you think i want to ride this rally and i'd rather not bet against it >> yes, i do i think what mike said about do nothing was pretty interesting and absolutely correct but when you're clients and you see zoom doing what it did last year, you see gamestop, you see discovery and all the stocks rotating back and forth, it's really hard to imagine that essentially the pandemic rebound has shown the capacity to basically stay fully invested and rebalance your portfolios was probably the best strategy overall and not get caught up so

much in fear of missing out. >> charlie, is it harder to find names in your beloved value area of the market considering that has been a leadership spot today and over the last few months the russell 2000, industrials, materials, groups like that on top. >> yeah, no doubt, it's a lot harder today than it was a year ago. a year ago was shooting fish in a barrel we still have some very high quality financials trading at very reasonable prices goldman sachs is trading at 10 times 22 every earnings. on a historic basis that's below average. it's just getting better and better every year, it's like a good wine. so there are names that make a lot of sense i've talked about how some are very, very cheap there are names, particularly if you believe be about inflation, there are names that are going to do very well in an

inflationary environment i would just say i love buy and hold but you've got to be careful when the s&p is dominated by faang stocks, just holding that index can be scary. you saw what happened in 2001. at these levels i would not hold the s&p 500. let's turn now to the fed. steve liesman caught up earlier with the federal reserve governor christopher waller. steve joins us now with key takeaways. steve. >> wilf, good afternoon. in his first press interview as a new fed governor, chris waller who took a seat at the table in january said the economy is ready to rip, and he's not going to do a thing about it >> i think the economy is ready to rip we're looking at growth forecasts of nearly 8% for q2. my forecast is about 6.5% for the year i see unemployment falling to the low 5s by the end of the year and inflation running about 2.5% for the year. so i think the economy is really

ready to go. >> you think a ripping economy would prompt a fed official to talk of easing back what is the easiest fed policy in history, but waller rejected that he said while growth rates may be high, the level of growth remains below where it should be quote, we've got a lot way to go, he said. there's no reason you pull the plug on our support until we're really through this. wilf, you know how he said 8%. i'm working on a rapid update for monday we have about 11 of the forecasts in our number is higher than that for this quarter. >> i was going to say, steve, i get the arguments about potential slack in the labor market and what that might imply for wage growth, but other areas, retail sales. moynihan similar tone to that from waller about seeing it rip higher amazing retail sales for this month but getting better, not just maintaining that. why are people not a little bit more concerned about inflation >> you know, it's the mantra

that you heard, that sara has heard and elicited from powell, i guess, a week or so ago. maybe it was this week the idea that it's temporary the idea that you're going to have -- demand will cool off in fact waller said, hey, after this check, there's probably not going to be another check. after these unemployment benefits run out, there won't be additional unemployment benefits the spending is not going to be consistent it will tail off and then you'll have some decline. but in fact, wilf, i don't want to ruin the story for monday pause we're not quite done yet, a lot of economists see this above potential growth continuing for the next several quarters >> well, that could be one of the keys steve, i liked the interview i thought it was interesting that he just flat out rejected the dots and said they're not working. we don't need them, they're confusing, which has sort of been -- i know, it's funny because they put them out there. and i'm wondering so if they go away, if that becomes -- because powell also dismisses the dots

in the news conferences with you guys and all the reporters if they go away, what does that do, do you think, to interest rate expectations and the market >> you know, sara, i'm a big fan of the dots. i always have been and i think people get all hung up in this and maybe they're not right, maybe they're wrong. the issue is that the market takes it as a promise and not a forecast and the fed officials feel there's not enough information around it or that the markets are incorporating around it. i think if this egey go away, in it's a loss. it's a forecast of where you think you'll be if your economic numbers come out where you expect them to be. i think we'll be a little more lost and have a little less transparency if the dots go away. >> charlie, i was wondering -- i mean i get the positive view on goldman sachs, very understandable after their quarter. do you also get drawn with this environment toward some of the retail banks as well or not? >> you know, it's -- in my

opinion, it's just too much wisdom that banks will do so much better when rates go higher it's much more complicated than that banks did not generally do well in the '70s when we had a lot of inflation. so because i'm a believer that we're going to have more inflation, i don't think these regional banks, which frankly don't have a lot of barriers to entry in their businesses, they're very competitive businesses, are that attraction. the one exception, we love northern trust, we love bank of oklahoma which has a real niche. but other than those two, we don't love regional banks. >> eugene, what about you, are you buying the inflation story or the transitory story? and how does it impact what investments you make >> yeah, i'm more in the transitory camp. i think that the concern i have is that we've had a very strong vaccine rollout here in the u.s. and the economy is opening and things are startingto go well but you've also had the last two

weeks an 11% increase in virus cases and the vaccine rollout is not going so well around the world. in an interconnected global economy, i think there's a possibility that you might get some hiccups along the way so i absolutely think we're going to have the economy ripping as you said here in the short term but going out further in the year, i think that it's going to be very important to see what happens with travel over the summer you have planes filling up you have hotels beginning to fill and amusement parks opening. but the cruise lines are still in dry dock. and some of the other countries are still closed so i've never thought it would be straight up it's certainly very encouraging right now, but i do think it's going to level out some here and i'm not as concerned inflation will be runaway as some of the other commentators. >> charlie and eugene -- >> wilfred. >> sorry, go ahead >> ripping is the new fed speak. ripping is entering the jargon ripping and transitory. >> you can't really have both.

maybe you can. we'll see. temporarily you can. anyway, charlie, eugene, thank you both so much for joining us. have lovely weekends. still to come, with the 10-year yield below 1.6%, our next guest will tell us where she sees the best place to invest. plus we are awaiting president biden's news conference wh itthe prime minister of japan. we'll bring you that as soon as it begins. we're back in 90

with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business.

treasury yields bouncing back a bit but still below their recent highs and still sitting near historic lows, so where can investors find opportunity and what's going on with bonds let's bring in karen, co-chief investment officer of sustainability at bridgewater. it's great to see you again, karen. there is this question about whether we've seen the bottom in rates and they are headed on a one-way ticket higher which has caused a lot of angst for technology stocks lately what's your view at bridgewater as far as where bonds go >> well, i think probably the most important thing for investors to think about is not the bond yield itself but what the environment that the bond yield is showing is like when you see periods when rates were rising, bondi yields were rising and rates were rising led by the long end and you get a steepening of the yield curve. that's a sign that the economy is doing great and the bond market is getting ahead and the fed is really behind what the economy is doing that typically has been a great

time to be earning risk premiums relative to when the bond yield is rising, reflecting that the federal reserve is trying to cut off the expansion, thinks there's too much froth in the market, too much inflation, trying to cut it off very clearly right now bond yields are ahead of the move when that happens, it's a great time to earn risk premiums you get this incentive to keep moving into risky assets and looking at where there's risk premium left any rise in bond yields can shake out some of the riskiest stuff and the biggest froth but can give more fuel to let's give a little more time for the cycle to run it's really a reflection things are good than a reflection that the fed is trying to cut things off. >> so it explains a lot of the recent action we've seen in the markets. the fact that value has outperformed a lot of these cyclical groups like banks have really started perking up. where does that leave us now, karen? where do you see the most opportunities given the backdrop you've just laid out >> i think it leaves investors

in a spot where there's a desire to find where is there still risk premium to earn and places where they're already looking pretty bubbly. there's already a big runoff and isn't a lot of risk premium to earn are slowly being shaken out as the rates come up a little and places like emerging mau markets, diversification or more value stocks, places where there's risk premium to be had. >> to what extent do you think u.s. treasuries are being driven by the rate environments in the rest of the world and is that only going to be a temporary factor thus, could we taken a little bit by surprise later in the year >> well, the sign of the paradigm we are in really is that central banks all around the world have a lot of incentives lined up to lag the economy, to lag the recovery so central banks fall into two categories either they haven't gotten a great recovery yet

for whatever reason the vaccines haven't come through or they're like the u.s. and the economy is coming back, roaring back. but even in the cases where the economy is roaring back, all of the incentives are lined up after a decade plus of very low inflation to say let's let this go and lag the economy and that's going to keep being probably the most important driver of markets, the fact that central banks are wanting to lag the economy. in some sense the stars are aligned in that the fed is on one hand facing the conditions that most classically would say maybe it's time to tighten but on the other hand has been most vocal in saying that we feel our mandate this time around is going to be to let inflation rip until we know it's a problem and to try to get an inclusive recovery that deals with whatever shortfalls are available, whatever places are doing worse. and so when you look at the united states below the average and you take out the most booming cities or the strongest job markets, you actually get a lot of places where there's

still shortfalls so all of the incentives are lines up for the united states where the policies are strongest, fiscal policy is very stimulative, to still lag the economy and other countries aren't even in a place where they'd want to so a lot of central banks want to stay behind the curve. >> we're looking at your chart here that you made of this where you just stripped out the coasts basically and all these cities and showed what, that the fed -- if the fed was just making policy for the coasts it would have to tighten earlier? is that the takeaway >> absolutely. when you think about divergences in the economy, you hear with racial divergence, divergence in education levels take out new york, boston, l.a., san francisco, the most booming cities you could take out a different set. we've done the top quartile. pre-covid the employment market was extremely strong, at historic highs and inflation was

already running decently above the fed target in those cities the rest of the economy, which makes up 80%, 90% of the economy even before covid conditions weren't as good, inflation has been underperforming for many years. as things start coming back, they still look very, very slow in those areas that's the bulk of the country the fed says we're going to let this happen because of the last ten years, we're going to let inflation get stronger you don't have to look carefully for shortfalls take out a couple of the strongest markets and you see the shortfalls in the employment market are everywhere, pervasive. it's just one more thing that adds to this broad environment where the fed has a lot of incentives to lag the economy and be behind the curve. >> has the case for gold been hit severely by crypto's rise? >> well, investors are going to look for real store holds of wealth so the idea that gold wouldn't be one of the key store holds of

wealth that one would use to protect yourself against an inflationary environment doesn't make a lot of sense to me. investors will keep using gold as one of the important tools in their tool kit to say this is one of the things i really need to hold if i'm concerned about rising inflation, which investors certainly should be in an environment where central banks are incentivized to lag the economy and fiscal policy is the key policy driver and that is, as we've seen, policies that give directly to give people checks to spend in the real economy generating that sort of inflationary environment. >> karen, thanks for joining us. much appreciated >> thank you let's get over to mike now for a look at the value versus growth trade >> there's been a little bit of a pause in that comeback of value in cyclical stocks against growth but i think there's still probably a plurality if not majority of investors who think value has upsides. charts like this makes them believe that this is the value relative to growth russell 3000 in both cases

this right here, this late '90s into 2000, that was the internet bubble that was when growth was the only game in town and value lagged badly, in fact to a historic degree. it will track what we saw in recent years as we had faang and this disinflationary environment and tech was the whole story so you see this comeback that's happened and it really encourages this idea that, wow, what's to stop value over multiple years from coming back. i think on a relative batsis its pretty resident but take a look at the actual price levels of the value and growth indexes over that same period of time. this was your value relative comeback it was growth getting destroyed. in an absolute basis, russell 3000 growth went down 60%. yes, value held its value much better than those things in the bear market back then but the outperformance didn't come because it went up a little more than growth stocks

i just think it's a little bit kind of a sober up kind of a number it's a lot to expect both types of stocks to go up and the s&p to go up when value will make up all this groundi. >> mike, that argument is tough if you look at valuation multiples of growth back then to today. >> without a doubt growth was far more overvalued back then but also value was cheaper on an absolute basis back then too. so the divergence was very high. on absolute levels, i think value was somewhat cheaper you could quibble with the macro dynamics and where rates were and all the rest of it it's not to say value can't continue to outperform but that dramatic type of a comeback that we saw back in the early 2000s, unique circumstances or at least circumstances people are not really expecting right now in terms of huge declines and absolute terms of growth index. >> mike, thank you mike santoli. up next, former fda commissioner dr. scott gottlieb is here on a friday on whether

we can ever achieve herd immunity and a return to normalcy with so many americans expressing covid-19 vaccine hesitancy. plus we'll bring you president biden's news conference with japan's prime minister as soon as that begins inasngn. 'lbeig back.to

pfizer ceo albert bourla saying a third booster shot will likely be needed within a year of getting the vaccine scientists don't know how long protection lasts after someone is fully vaccinated. joining us to discuss, dr. scott gottlieb, former fda commissioner he sits on the boards of pfizer and illumina thanks for joining us. >> thanks. >> i guess great progress on that front, but a step back with the j&j vaccine. i know you've been on a bit earlier in the week to discuss this, but sum it up for us is this a gross overreaction or do you support the actions that have been taken? >> look, i think it was prudent for the fda to take a close look at this. a lot of the j&j vaccine was used in the last three weeks, so 50% of the doses that were delivered were in the last three weeks so if there are rare side effects associated with the vaccine, they're going to identify it this week and probably next week you'll finding these cases so i think it's prudent to try

to fully characterize this i do believe this is an important product. i believe if this is a rare side effect it's going to come back to the market perhaps with additional labeling language to advise physicians and patients on what to be alert for, maybe with some restrictions, maybe with some age restrictions until we better understand its full profile. this is a vaccine that's important in ways that are differentiated from the other vaccines it is delivered as a single dose and also has easier storage requirements i think as something to address the global pandemic, this is an important evacuation sgleen i wonders what your hopes were of the u.s. reaching herd immunity by the end of the summer and whether that gives you confidence whether another lockdown won't be required it was interesting commentary coming out of the uk this week where vaccination rates are pretty high and yet they're still talking about the possible risk and need for further lockdowns going forward.

>> look, i don't think we're going to have to do anything near what we did this past year. i don't think we're going to have to close businesses in the way we did this past year, assuming nothing unexpected happens with the variants that we're seeing pop up around the world and assuming that the vaccine is still going to be protective against those new strains as they emerge but i do think life will be different. i think we'll do things differently in the wintertime as coronavirus starts to circulate, probably later in the fall or more likely in the winter. it's going to be frowned upon coming to work sick. i think direct-to-consumer home testifying will be more common place. people will test themselvesmor for coronavirus and the flu. i think we'll behave differently in trying to restrict the spread of this virus but i think it's against the backdrop of largely normal activity, just with more precautions around respiratory health in the wintertime we'll pick up benefits in terms of reduced flu spread. a lot of the mitigation steps we've taken trying to prevent coronavirus were very effective against flu.

so i think there's an overlay of more prudent activity about the spread of respiratory diseases in the wintertime. >> one factor that could determine how much we return to normal, dr. gottlieb, is this issue of whether vaccinated people can transmit. so if we see a lot of people start going back to the office and going back to bars and restaurants after they have been vaccinated, do they present a risk to their kids at home that are not vaccinated >> they do to some extent. what we've seen from the data so far is that people who are vaccinated are less likely to develop infection, certainly less likely to develop symptomatic disease from the infection and they're less likely to transmit the infection. we haven't fully characterized the magnitude of that but we believe it's quite profound. but less likely doesn't mean completely unlikely so there are going to be cases where people who are fully vaccinated either develop symptomatic covid or more likely develop the infection and will have a window where they're probably

contagious so even people who are fully vaccinated i think in a high prevalence environment, if you're in an environment with a lot of covid around and you think you're likely to come into contact with that disease and you're around people who are unprotected, either because they couldn't get vaccinated or didn't get vaccinated and they're vulnerable or they're young children, i still think you need to be prudent i think that's why you're seeing a lot of public health officials still urge caution in high prevalent environments like michigan even for people who are fully vaccinated if you're less likely to come into contact with the infection and you're vaccinated so you're less likely to become infected, then the probability is much lower and i think you can make more judicious decisions to go out and about normally >> we still don't really fully have an answer, do we, dr. gottlieb, about whether you can transmit the virus once you've been fully vaccinated, whether you contract it or not, but just whether you can transmit it to kids i know there's some preliminary data from israel, but when are we going to have that answer

because it feels like that would determine a lot of what we can and cannot do once we've been vaccinated, including potentially wearing masks. >> well, look, if you look at some of the real world evidence, you've seen about a 90% reduction in the risk of becoming infected, even asymptomatic infection for people who are vaccinated. so we're starting to get some real world data both out of the u.s. and out of israel so if you're not developing infection and you're not even developing asymptomatic infection, then you're not going to transmit the infection because you just which have it for the cohort which do develop symptomatic infection, what the risk of transmitting it we don't understand yet but there is reason to believe that even people who develop asymptomatic infection if they're vaccinated, they're less likely to transmit the infection because you're probably getting immune zems at the level of your respiratory mu koesa that probably knock down the virus on that tissue. so they probably have less virus

particles and you're less likely to transmit the infection. how that plays with some variants we don't understand b 117 -- there's going to be a reduced transmission for most people. >> i want to go back to the j&j vaccine to round things off. do you think it has been damaged in public opinion terms as much as, say, the astrazeneca one was across continental europe, or how much longer until it does, if we don't get it fully approved again in the short term >> well, look, i hope not because i think it's an important vaccine for both the u.s. and the global market it's differentiated in ways that make it in certain settings easier to deliver. it's one and done shots so you don't have to bring people back. it doesn't need to be stored under the same cold temperature. even in the u.s. market in certain settings, i think the more os tear setting it's an important vaccine.

in the u.s. more than 125 million have had one dose of a vaccine. we have increasing supply from moderna and pfizer, the company i'm on the board of. so i think that factored into the fda's decision of temporarily pausing use of the j&j vaccine. it's a different risk environment. we have more vaccine supply coming into the market, but i think the j&j vaccine is still going to be an important product both for the u.s. market but especially the global market this was the vaccine we were going to put in a lot of low and middle income countries because of the improved handling requirements around this vaccine. >> dr. gottlieb, good to see you. thanks for joining us. >> thanks a lot. housing starts were much stronger than expected last month. coming up, nuvene real estate's chief investment officer on whether she sees any signs of a slowdown in this very hot market. plus president biden set to hold a news conference with the prime minister of japan. that was due to start already, e will bring you to you live when it begins we've all felt this gap. the distance between what is, and what could be.

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time for a cnbc news update with courtney reagan hey, court. >> hi there, wilf. another deadly traffic stop this one in san antonio. the driver of a truck pulled his gun and shot an officer in the hand after being pulled over the officer returned fire, killing the driver and one passenger and injuring another person in that truck in the subway at new york's times square, police say they arrested a man with an unloaded semiautomatic rifle, ammunition

and gas mask officials say the man claimed to be from ohio and said it was legal for him to have the weapon in cuba, raul castro says he is resigning as head of the c country's communist party. only raul and his brother have led the country since the revolution in 1959 no word on who castro will endorse as his successor. former nba champion dwyane wade is getting back in the game he has bought a stake in the utah jazz and says he plans to take an active role in the team. it's not clear how big wade's stake is, but the nba does have a rule against ownership stakes of less than 1%, so we know it's at least that. i think it's probably a little higher sara, back over to you >> all right, courtney, thank you. courtney reagan. lumber prices have skyrocketed, nearly 300% over the past year. up next, nuvene real estate's chief investment officer on whether higher commodity costs

could start weighing on the housing industry. we will bring you to president biden's news conference with the prime minister of japan as soon as it begins the first foreign leader to meet president biden at the white house. as we head to break, here's a check on the big winners and losers in the dow today, which closed at another record high above 34,000 these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate at scale are going with a smarter hybrid cloud using the technology and expertise of ibm.

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u.s. home building surged to a nearly 15-year high with housing starts jumping 19.4% in march. this comes as lumber prices soar they're up nearly 50% so far this year and nearly 300% over the last 12 months joining us to discuss the future of this red-hot real estate market, carly tripp. carly, good to see you, thanks for joining us. >> thanks for having me, good to see you both. >> what is the key factor that you're looking out for that would worry you about a potential change in direction of this super hot housing market. >> the housing market is super

hot but i think it's justified at this point. we're coming off one of the most underbuilt markets over the last decade if you compare the housing start numbers this morning to where they have trended the last three cycles, we're still in a good place. if you start to couple that with the potential temper in activity due to an increase in material costs, you still have supply/demand imbalance that's going to continue to drive pricing. >> what about those material costs? it's pretty extraordinary, as we just mentioned the lumber price increase , other raw ingredient as well. >> the material costs are staggering but it's a result of the pandemic and it's a tight supply chain i'm sure as the l.a. port numbers got released this week some container ships sat for as long as it took them to get to the port of l.a., so that's going to take a while to work itself through the system. but we have record low inventories coupled with strong

demand honestly i think that's symbolic of this pent-up consumer demand that we are expecting to see post-pandemic. >> how are you thinking, carly, about the future of cities in america and what that might mean for buying real estate there >> sure. so we've seen a ton of population migration out of coastal markets into the sun belt cities. that is not a new phenomenon that existed pre-covid and has been transpiring several years austin, charlotte, nashville, have all experienced 15% to 30% growth in population over the last decade. not only that, it's primarily coming from young people with room to grow and expand. so i'm here in charlotte and where i'm based we've had 45% growth in population age 20 to 29 over the last decade, which is just phenomenal so i don't think it means a complete outmigration of coastal markets, i just think the population is going to be more

dispersed going forward so it's imperative that real estate investors diversify their allocations geographically going forward. >> are you concerned about the outlook for retail space or office space >> i'm not office is going to take some time to returni but like efverything else, it's cyclical retail, i see those numbers improving strongly and i think it may be an unsung beneficiary of the pandemic. so the retail sales that we saw this week, 10% growth, even if you compare february '21 with february of '20, significant growth in sales across the board. if you couple that with a market that's been really undersupplied and underserved from an investment perspective for the last decade, it's really stacking up well, i think, for bricks and mortar investment everybody has talked about e-commerce, e-commerce, e-commerce over the last year and it's true, e-commerce is

here to stay and experience tremendous growth. but i think what's largely been ignored is that the real superstar was bottom line pickup in store so same-day store pickup really stood out as the winner in my opinion and retail investment is going to be the beneficiary of that. >> it's really interesting i know you don't talk public stocks, but there are clearly implications investors can take when they're looking at reits or others so are you saying, carly, you expect real estate and retail to actually grow? because isn't the thinking that even if stores have proven their worth, click and collect, go and have the experience, we're still overstored in this country. >> we're still overstored. no, i'm not saying that's wrong at all if you look at us over any other industrialized nation, we have five to ten times retail there has been no new supply added over the last decade and

we estimate 25% of the stock will be gone and repositioned over the next five years so you have a declining stock coupled with retail sales, in-store sales that are increasing what's going to shake out is the story of the have and have nots that we've seen over the last year but again, i think it's about being selective within the space. but i think if you're ignoring the space, you're going to ignore strong growth coming forward. >> carly tripp, thank you for joining us. >> thank you. up next on the show, shares of quantumscape falling after scorpion capital claimed the company was fraudulent now the company's ceo iscramer g tonight. we're still awaiting that joint news conference with president biden and the prime minister of japan. running a little bit later than we thought, but we wilbritl ing to you live as soon as it happens in the rose garden

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welcome back we are still awaiting president p biden's news conference with japan's prime minister kayla tausche is here with what we should be expecting and looking out for, kayla. >> reporter: well, sara, the expanded bilateral meeting that took place throughout this afternoon was expected to cover a host of issues from the tokyo olympics just 100 days away to potentially increased targets on climate change ahead of the biden administration's climate summit next week, increased cooperation on vaccine sharing

and a pledge by japan that we're expecting to come out later today pledging $2 billion to help build out 5g networks and supply chains that do not rely on china's huawei. now, that last deliverable shows you how largely beijing looms over this summit between two nations that are not china a senior administration official noted that japan has to walk a very careful course here because of the deep economic ties and a close regional proximity between the two countries, but noted that they are going to send a clear message to china that they do not condone recent actions by china to fly bombers in taiwan's airspace and to run live fire military drills off of taiwan's southwest coast even as a biden appointed administration lands in the country there so china will figure very prominently, but we expect whatever statement comes out of the bilateral meeting to be one that threads a pretty delicate

needle here where they are not seeking to provoke tensions, even while they're acknowledgin that they do not support the actions that china has taken that's the line we expect both leaders to take when they appear at the podiums just a little bit later this afternoon >> kayla, thanks for that. we look for to it. a little bit delayed but looking forward nonetheless of. up next investors with one key name to watch, stay at home winner netflix, we'll break down the preview of whatot expect next week on wall street ♪ ♪

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down the crypto order system leading to crypto order failures and delayed notifications for some customers we've seen some complaints about this on twitter. this is now resolved crypto trading is up and running at robinhood but doge coin up 400% this week, one of the biggest in the world, it did start as a joke in 2013 but is the big winner in crypto this week. >> a lot of people making money off that joke but can't share on coinbase interesting. a stock took a dive yesterday after short report from scorpion capital claiming the company was fraudulent quantumscape ceo -- >> we've addressed one of the

fundamental issues that held back solid-state batteries over the decades, working on a solid-state separator, the heart of a solid-state battery it's a substantial breakthrough and the experts will recognize that. >> you can watch that full interview on "mad money" 6:00 p.m. eastern when we come back wall street with a slew of big earnings on deck neck week, likes of coca-cola, snap, sands a full run down when "closing bell" comes riot back. gh back. t back

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big week for earnings on deck monday, we hear from coca-cola, ibm and united airlines after coca-cola results on monday don't miss my interview with james quincey ceo of coke, squawk on the street on tuesday. tuesday, procter and gamble reporting, verizon chipotle las vegas sands. whirl and on deck. at&t american airlines on thursday. that's the busiest days of earning and friday american express and honwell, a third of the dow. the set up gets tougher as we

reach new record heights and close sharply higher, percent and half of gains for the s&p. >> no doubt about it the bar definitely is pretty high in terms of this built-in expectation that we're going to blow away the forecast earnings, beating an 81% rate right now. what's most important is weir looking 30% year-over-year growth rate in first quarter earnings to enable the forward valuation of the market to remain stable, at 22.5% earnings where we were ten months ago as the market marches higher i'm looking for csx whirlpool cyclical names to give us a clue whether people are willing to buy the industrial cyclicals cycl cyclicals. >> wells fargo up 8% after the banks playing significant catch

up of note. best week for gold nothing compared to doge coin. still nonetheless. >> exactly you know, maybe gold was created as a joke, who knows dollar down and yeel yield down give a bit of a bump to gold. >> i think mike just said doge is the new gold. >> meme me on that >> we're out of time on "closing bell." have a lovely weekend. "fast money" starts now. >> i'm melissa lee this is fast money tonight's trader lineup -- hidden gems as stocks hit all-time highs plus pinterest with worse day since november how are traders playing the pull back later, tiktok pull down, what we spotted that's a fresh sign of the times in the retail trading boom record rally on wall street, s&p cl