but i find it unlikely. >> here is what i would say, the biggest jumps in used car prices, you could probably guess, it is suvs, vans and to the biggest extent pickup trucks that is the hottest part of the used car market right now. >> todd can't get his pickup this year. he's going to have to wait dom, thanks. >> you got it. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. >> welcome to "closing bell. i'm wilford fast along with sara eisen. a new week mostly in the green i'm not meant to be moving now i'm in shot. the dow has slipped lower. the nasdaq and russell 2,000 leading the gains with small caps up more than 1% as we head into the the time trade. opening trades are getting a lift, airlines getting higher on a restart of travel to europe for vaccinated americans and movie theater stocks are climbing and bitcoin is recovering, up 9% after touching the lowest level since early

march on sunday. coin base moving higher as well. and a rare miss, orders return to growth rebounding by 0.5% but did miss estimates, 59 minutes left to go, sara, a little bit of a decline and the rest in the green. >> coming up on today's show, art gets in on the esports game and skills are up 40% in the past week. this is a roller coaster 10% today as kathy wood builds a sizable take in that company we'll talk about the shareholder in just a moment and later tesla kicks off a jam packed week of earnings with reports after the bell and we'll get analyst reaction as soon as tesla hits the tape but first to the big stories we're watching mike santoli checking the action and robert frank with the latest on a potential capital gains tax hike and joining us is michelle meyer and janet lowe but mike start us off with this market.

>> the market is looked a little bit indecisive in the last week but hard to argument with the strength volumes are low. investors are fully exposed to stocks already and yet the market continues to show that the path to least resistance is higher for now this is a two-year look at the s&p. i chose that because it is fascinating how we've essentially kind of resumed the trajectory, if you go back to three years, resume from the precovid crash bull market as if it looks like it was kind of a bolt in the blue that did not have a lot to do with the ongoing fundmentals. this is a 42% gain over two years. it is very high but not unprecedented in the late '90s, a lot of clusters when you have two-year gains of 42% from an all-time high. also the tone of the market has flipped back and forth between offense and defense. take a look at high beta parts of the market, cyclical and more aggressive versus low volatility and much more cautious and defensive and for most of the

month it was low volume doing the work and today you have high beta making a come back. it started late last week so the market could decide whether it is going to win using offense or defense. at least for now it is been definitely a bullish rotation that is going to -- but kept people off balance look at this contrast here we've known the ipo etf was strong and it was a good risk appetite and it peaked in mid february with arc and tesla and the other risk iyer parts of the market like spaks. restructuring liberation of parts of big companies has been steadily strong as welcome it is kind of showing it is still a liquid market. and otis worldwide was a spin off from the united technologies race to a new all-time high today. just one example. >> otis elevators all over the place. so they're tracking 25% above estimates and we're about to go into a heavy week.

how are the market reactions to the big beats. >> it is tepid across the board. obviously you have individual samples when they do have a huge positive impact, but this is about the third quarter in a row where the market has kind of shrugged even at top and bottom line beats so i think it tells you that the market pretty much this this fixed already. it is going to be very strong. there is obviously a lot of talk in the last couple of weeks how we might be seeing the peak in terms of the pace of improvement in both earnings and gdp but i think as long as the full year estimates keep going up for earnings, it is hard to say we're calling for a peak just yet. >> thank you so much for that. we go to the s&p up about a third of 1% with 55 minutes left taxes are top of mind. president biden is looking to hike the capital gains rate for wealthy americans.

brian deese discussed it this afternoon saying the capital gains hike will only hit taxpayers making more than $1 million per year. >> number one, we're talking about a tax change that would effect, again the three tenths of one percent, the top sliver of households and number two the principle is to equalize the treatment of ordinary income and capital gains an that is a principle that is neither new nor particularly novel. >> let's bring there robert frank that is looking at one big question surrounding all of the tax proposals, whether they could be retroactive what is the latest there. >> well, one big question for that top sliver of taxpayers as well for markets is when this capital gains tax hike could take effect. it is f it is next year, get ready for a wave of selling before the hike but they could also be retroactive. tax changes in 1969 in the clinton tax hike of 1993, both

of those were retroactive. now the gop challenged those 1993 hikes saying they were unconstitutional, the supreme court upheld the increases saying back dating was legal as long as it is supported by a legitimate legislative purpose and that the back dating, quote, isn't excessive. but claw backs on the capital gains could be much more problematic for sales of businesses if the tax hike is back dated to january 1st of 2021, a family or founder that sold a business say in february with a 20% tax rate, could later then be told, well you owe a lot more taxes under the higher rate. that could pose a problem both for the deal contract as well as liquidity. now unclear what the revenue effects from a retroactive tax would be but you would miss that big revenue pop. and you get with a future tax hike but you could collect more

from existing sales so unclear how it would all shape out but if it is a next year tax hike, get ready for a lot of selling. if it is backward dated, people are just frozen with that new rate >> very interesting swing factor thank you very much for that let's bring in michelle mayor from bank of america global research and janet lowe. good afternoon to you both janet, i come to you first, the big question, do you think this will actually all happen >> it is a great question. i think that the biden administration is looking at a number of tax increases and this is only one piece of them. we've already talked about the fact that the the corporate tax rate is something that the administration is looking at going up they want to raise rates on individual income tax rates and the capital gains tax and also a state taxes and all of those things put together i think is what is really important, is that would have the biggest impact on the markets but we think if they're going to do an

increase on the capital gains tax rate, it is probably not going to be an ordinary income levels there are estimates from the tax revenue estimators that say that once you raised the rate a little bit too high, you're going to get fewer realizations and then that fewer realizations leads to less tax revenue and they think that rate is about 28% where revenue is maximized so if it went into effect it would be somewhere around the 28%. >> in terms of what this might do to the stock market, what would it do to the economy and the fact that it is capital gains, does it mean the impact is less than what people are fearing? >> i think there is still a lot of details that need to be worked out and we have to remember that taxes is one part of this story. the reason that tax increases are being discussed is because they're to pay for a lot of spending initiatives so there the other side of the coin which is that the administration is looking to ramp up investment in both

physical infrastructure, which is the corporate tax offset and also what you would consider human capital infrastructure in sense of education reform and et cetera and all of that could reap in benefits all of the pieces absolutely matter and to us we think the trajectory for growth is still very, very strong. and i'm not really concerned that these tax proposals will derail the recovery as they're being discussed right now. >> janet, do you think the market is underestimating impact and the potential of this happening? >> i do. we think that the market is rather un -- anticipating that the corporate rate will go up, maybe between 25% and 28%. but we think that the biden proposal has a lot of changes to taxes on international income for u.s. multi-nationals and that is going to have a big impact under-appreciated right now by investors some of the individual tax

changes, we still have to see the details of the proposal but i think as we kind of look at the totality of what actually might be enacted, that could still have an impact and the other thing to keep in mind too is that right now we're in the midst of having a lot of fiscal stimulus coming from the covid-19 pandemic. and that is going to start to wear off as we move into this next package which is the infrastructure and the social infrastructure and that funding takes a long time to come out. so i think as investors start to really look at the end of covid stimulus, the move to longer delayed infrastructure spending paired with tax increases that might be larger than we're anticipating there might need to be some repricing here. >> michelle, what do you make the goods number this morning and does it in any way take away from the sort of sense of economic data beats of recent weeks and months >> so the core capital goods shipment number which feeds to

gdp was over 1% in the month orders a little bit softer than expected but still showing meaningful improvement so if you look at the trend in business investment, it is actually already been very strong and that is something that i think has been under-appreciated with so much focused on the consumer, but the business investment figures have also been robust. and the indications very much suggest that will continue so we think there is is a compelling argument for greater business investment as companies respond to the gains in underlying demand and look forward towards greater technology advancements, towards changing economic landscape, potentially some restoring and try to capitalize on thall of that. >> this is a feeling this is as good as it gets when it comes to the economic data and the earnings that we're about to see, the stimulus is flowing, the tax gains are potentially coming, it sounds like your vieh bullish. so where do you stand on just

how long we're expected to see those above trend growth rates >> so i think that the data needs to be put into perspective. you're absolutely right that it is hard to compare to the exceptional numbers that we had in march particularly for things like consumer spending or even in the manufacturing surveys because you had everything working in their favor, right, with stimulus flowing in and the weather improving, this kind of level shift in terms of the virus outlook improving and vaccination rising so it was really impactful in terms of the data boost in march and it is hard to continue to accelerate meaning from a growth perspective. but remember from a level perspective, even if we hold it close to these rates, it is very, very strong, right so in a sense, we had a jolt in the spring, the goal now is just to continue to grow at a steady pace and realize the improvement that started in march and if we do that, we think we're going to end with 7% growth this year and in excess of 5% growth this year

for an economy whose trend growth rate was 2% precovid. sothis is a strong trajectory even if you can't compete with the march numbers we've been seeing. >> thanks so much for joining us great to see you both. >> thank you. up next, mobile esports company skills seeing a big pop today and after kathy woods disclosed a multi-million share stake. we'll ask the ceo of skills how it feels do have someone on their side you're watching cnbc it's a wishlist on wheels. a choice that requires no explanation.

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i hope you're ready. 'cause we are. now down about 11 points, 45 minutes left of trading. that's crazy ride for skills the company stock slid more than 30% after short sellers put out a research note related to the revenue recognition and the nfl

partnership. but the stock turned around last week after kathy woods arc innovation fund next generation fund went on a buying spree picking up 6 million shares. they said in part, after reviewing the reports we believe the claims to be either exaggerated or incorrect, we believe these short reports stem from a misunderstanding of the company, his position in the gaming eco-system and future ambitions. joining us now is skills ceo andrew paradise. how did your stock become such a crazy battle ground name >> i can't speak specifically to why the short sellers out there decided to target us but we are certainly very excited about having kathy partner into skills. >> it is brought a lot of bullish momentum into the name for sure andrew, one of the criticisms on the short side was around the nfl deal which you announced the stock shot up like 25% on that day. the short seller claimed they couldn't find any mention of it on nfl.com, they couldn't find

anything on your development platform for making this game. you could just confirm that this is a real thing? >> yes, absolutely it is a real thing. i would say even more broadly, these reports have numerous errors and statements that best come from a fundamental misunderstanding of our business institutional investors like kathy has been really supportive which we appreciate. look, we're not sure how the reports arrived at their conclusions but claims aren't just flawed, they don't reflect what we're seeing or what we're doing. and at the end of the day, we'll be reporting earnings next week and i think our earnings will tell a different story. >> one of the positive, andrew, for your company and stock relative to some of the mobile gaming platforms is your conversion rate, or the stickiness of your customers talk us through why you think that is the case and whether it could even improve from here. >> so, yes, fundamentally the reason skills is so successful

is we're converting about eight times as many pairs per thousand kpur consumers on our platform as the next best alternative when you think about the reason for that, it is really because we're proviefding a better value pop -- proposition and we've actually we've completed now three different market research studies that show that willingness to pay is upwards all the way to potentially 40% of consumers so i think there is a lot of room to expand from here >> what about the questions on revenue recognition, on accounting, comparing you to other frauds, what do you intend to do to respond to those and are you considering legal action >> we're not considering legal action at this time. we think the reality is the short reports are without merit and they arrived at conclusions that simply do not tie out against the business that we're building we followed somewhat approach to

other market approach to other businesses, whether uber or lyft, the com set abroach that we set up was set up by young and validated by the s.e.c these reports simply don't understand the business that we're in and i think investors like kathy expressed that. >> what about the more broad point or question, andrew, that most of your revenue by percentage is sort of plateauing or flat versus a much smaller percentage that is in fact growing very quickly is that a fair point at this stage in your life >> i don't think it is and i can't comment too specifically, in our period right now, but stay tuned until the next week and i'll be happy to share more information as soon as we can. >> every time i talk to you i've asked you the same question which is the surge in business and gamers during covid. is that coming down now that we are seeing more people go out

and more people getting vaccinated, does that change the trajectory of your business? >> i think you'd see that more in console computer games. the nature of our product is an on the go entertainment solution so we saw a surge in the maybe first two to four weeks and we sue normalization in q2 of last year we don't think we'll see much change in behavior from here. >> just to round things off, what is the precise time line for the nfl partnership and when your customers and users will be able to play an nfl partnered game >> so the nfl competition is launching in q2. so that is right now we'll be announcing the specifics as soon as we can share. but imminent and coy tell that you we already have hundreds of game developers who have pre-signed up for the competition. we're excited. if you think about hundreds of

potential nfl games being built, i think there is a lot of content to look at and review at the nfl and we're excited to -- a winner together. >> thank you for coming on to clarify what has been out there. andrew paradise, ceo of skills which is surging more than 10.5%. we'll talk about the arc effect when we are joined that bitcoin mining could be a good thing for the environment. that is later on "closing bell." still ahead, streaming big night in hollywood, netflix, amazon prime and facebook took home statues last night we'll discuss how streaming has upended the movie industry with entertainment co-chair ben silverman next on "closing bell."

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35 minutes left of trading time nor a cnbc news update with rahel solomon. >> hello 2020 census numbers are out. texas will gain two electoral votes and five other states including florida, oregon and montana will gain one seat seven states will lose one electoral vote including new york, illinois and west virginia the south and west showed the biggest population gains, the population is now 331 million up 10% from the census in 2010. after the death of breonna taylor last year, a probe will

look for unconstitutional or unlawful police practices. and more on government spending tonight on the news with shepherd smith and ukrainians holding a memorial for the chernobyl, it happened on this day and a thousand square mile exclusion zone does remain in place to keep people from living in that area that is our cnbc update for this hour back to you, wolf. >> thank you so much into still to come, will tesla deliver, elon musk is up less than 4% on the year afterclimbing more than 700% in 2020. we'll find out if quarterly results will jump start another rally when they report earnings after the bell yields mixed to start off the week the ten year yield around 157 as we stand the 30 year 224 we're back in a couple of minutes.

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31 minutes left in the session let's check in on reopening market groups. abby core citing lower down side risk due to tenant fallout and see benefit stimulus and pent up demand in the reopening and the stock is up by 2.5%. and a boost on the news that the european union is expected to he's travel restrictions for vaccinated americans over a year after nonessential travel to the block was restricted you could see across the board gains for the airlines for some reason still no travel restrictions being reduced between the u.k. and the u.s u.k. is not in the european union. >> how do you know that? >> yeah, better vaccination rates. >> good vaccination rates here both countries still absurdly stubborn bust a personal gripe there. >> airlines and cruises,

industrial metals anl bank and credit cards doing well. we have about 30 minutes left to go dow is down 92 points, 30i9 points, s&p is flat and nasdaq gaining and the russell small caps up a percent. netflix having a big night at oscars taking ome seven academy awards, the most of any distributor. up next we'll talk to co-chair beb silverman to weigh in when "closing bell" returns [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today.

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roku new warning customers that youtube tv could be removed from the platform. juliaboorstin has that story what is behind the standoff. >> roku has emailed users to warn they may lose access to youtube tv saying that google made anti-competitive demands roku telling us google is attempting to use the youtube monopoly position to force roku into accepting predatory anti-competitive and discriminatory terms that will harm roku and our users. youtube tv responding, counter to us, roku often engaged into

thosetypes of tactics in their negotiations we are disappoints that they chose to make baseless claims while we continue ongoing negotiations it is worth noting that roku and google do compete with a number of devices and speaking oftreming, streamers had a big night at the oscars, nomadland with three awards is streaming on hulu and diocese plus won the first two awards for "soul" and amazon wan two oscars and netflix, which went into the awards with the most nomain ises, 35, it did bring home the most oscars, seven in total that reflects the netflix investment in original content as well as the dominance of streaming in the year when most of the theaters were closed but sara, last fight people may have been watching netflix instead of the show because ratings declined 58% from last year guys, over to you. >> i was. >> you were watching netflix or

at the awards. >> no, netflix. >> i was watching the awards until my friend -- received an award. she was early on in the ceremony join us with more from ben silverman, ben, good to see you. thanks for joining us. >> of course. >> why don't we hit that point that julia ended on. down 60%, pretty shocking. to what extent do you think that is the content itself last night, the way they put together the show versus everyone knows it wasn't a full red carpet normal event >> all of it i watched with oscar winners and friends in the business and from the get-go, we were like, oh, no, what are we doing to our business this should be the super bowl of cinema we should have every movie star, every a-list player there regardless of how the covid was

effecting the in-room experience it just was terrible on every single level in how it wanted to communicate entertainment value in and of itself and how it didn't really celebrate the movie business i was so proud and excited to see so many diverse representation within all of the categories and all of the winners. and that is sensational testament to the quality of talent out there and finally getting their voices heard, but from a production value perspective, i could not have thought it stunk more. it was beyond disappointing. >> tell us how you really feel. >> i'm on it. >> i thought we were going to do one question but i have to follow up. is this doing lasting damage or can they turn this around next year if we're out of covid and go back to normal? is this a sign of the steady decline of how much people want to watch the award ceremonies if they get a little bit too sycophantic as it were.

>> well, i think that it is a downward trend last year was the lowest ratings ever and this year topped that new low. but obviously the fact that the movies are not as accessible to the wider audience because they are limited, many of them, to their own subscription platforms, i think that hurts the amount of cultural impact that the movies could make and without exhibition, you also lost all of the marketing push that goes behind those movies. so the huge marketing pushes that have existed in the movie business every single launch to get people to go to a movie theater and take an action of buying a ticket, also disappeared this year. so they didn't have the same marketing push, there fore they didn't have the same awareness and power to generate culture. what trigs used to do, discovery, you found the movies, you found the documentaries and you owned them and it didn't

have the universal -- and television was so strong it continues to dominate the cultural conversation so the dinner party chat is much more in and around still the tiger king and what was happening in the nonscripted space and what was happening in the scripted space. and i think the movies will come back with a fury as we start to see re-entry and vaccine cinemas and whatever protocols will be for arrival. i think the movie business will be back. but the big piece is the marketing push that goes into getting people into the theater, was pretty dormant inside this season's films and therefore they didn't have the cultural impact. >> you're getting into all of the covid impacts that we've seen what do you think will be, if any, lasting changes to the business of hollywood from covid-19, basically a year that just totally upended this industry. >> well clearly it accelerated so many changes that we've been talking about for literally 20 years. from the moment tv, tivo and dvr

arrived it meant digital delivery and allowed the consumer to have a la carte on demand as they want it, whenever they want it and then you add the pricing on the huge flat screens and the unbelievable surround sound for $200 and that started to equal some of the movie experience that you get at a theater. so of those trends technologically driven and then financially driven by the huge investments that the streamers have made in movies and high quality content and i think you've watched and accelerated trend that will continue but i initially felt in the beginning of this that we would kill off the exhibition business and the traditional theatrical business but i'm watching people really want to go back into the real world they want to be at concerts, they want go to the movie theater and want the communal experience human beings want to be together and share emotional moments

together and no greater place than to laugh, cry or love than inside of a movie theater. it is still the best first date in the world. >> or 100th date, i miss the movie theater a lot and sports, live sports. but to go to one point that sort of is within all of that, had which is are we seeing with the success of netflix, with the award recipients yesterday, if there was still a question as to whether talent was willing to way up to job offers that they, streaming service or a traditional studio, right now they'll be indifferent to either because the quality of the output from the stream is as good as any of the major studios? >> all i would say parenthetical to that, it might be francis mcdor mond who made the plea, put us in 70 millimeters, get us on imax and i think there are a lot of storytellers and we watched what happened when hbo max announced without communicating with all of the

talent about its move to streaming only there are filmmakers who really want their movies in a large format experience inside a communal environment where they could hit notes in their story telling that they know will resonate with larger laughter, with larger crying, with larger amounts of reaction. and so i think there is still a group of storytellers and actors and directors who really want to ground themselves in knowing that the theatrical experience will continue, alongside the streaming experience so i think the original conversations that we had in this were, and the biggest point of this is the oscars waved the rules that had you to be there a theater this year. so obviously that kind of opened this accelerated door. but if that role shifts back and they try and help the theater survive by saying you have to have a theatrical premier, i think that the charm and the smarts that netflix and others had in saying, no, you're going to be on aur streaming service but we're also going to give you a theatrical run going to be the

most winning formula but i look at some of the pure indys, like sony and universal, although they have peacock, they're premiering most of the movies in other ways i think they may have a slight leg up with a certain kind of talent but overall, we've seen everybody from, you know, the rock to whom ever migrated to will smith, to streaming and not really caring one way or the other how it impacts their overall career trajectory. >> great to catch up as always we're out of time. i did think of one idea to perhaps save the oscars. move ricky gervais to the oscars and then you could solve the issues at the top. >> he made some funny notes about wanted to being invited there. >> his twitter feed is worth checking out. >> thank you. >> investors gearing uch for tesla's earnings after the bell

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sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding]

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plays seem to be working well today. >> they are. i think you could see that, if you really look below the surface, but also just a handful ofthose big nasdaq gains working, amazon getting a lift, tesla was up most of the day if advance of the numbers and that seems to be just enough. we're kind of trying to squint and argue about a market that has been in levitation mode most days and not news prison and today the s&p hovering around the intser day all-time highs. it sort of shows you when all else is equal the direction of the bias seems to be higher. but everything we said for weeks about people having pretty heavy exposure to stocks and seasonable stuff turning less friendly are also in people's minds as we get closer to may. >> you have scyclicals like energy at the top but at the same time the nasdaq well ahead of the dow. >> thanks for having me today.

so this is been a really easy market this is the don't overthink it market you have the economy booming and the stock that are post high le levered to it are working billion. look at home builders whether it is the new guys or american home for rent or invitation homes, transportsk loog at rails, industrials, materials, all-time highs and you have alcoa and freeport up, freeport is the second shortest stock of the s&p 500 today. the consumer is in great shape you have consumer financial and capital one breaking out this is not a hard market. don't over think it. the economy is booming and the stocks are following suit. >> apple announcing billions of new investments including a new campus in north carolina josh lipton has the details for us >> so will, $430 billion, that is how much apple said it is now going to be contributing to the u.s. economy over the next five years. that includes direct spend with thousands of american suppliers and companies, tens of billions

of dollars for next gen and 5g innovation and you mentioned the state of north carolina, apple will invest over $1 billion there open a new campus and engineering hub and create 3,000 new jobs in ai, machine learning and software engineering in all, apple is now saying that it will add 20,000 new jobs across country over the next five years back to you all. >> just to be clear, this is one of the most tech forward companies and they still want to have campuses, they still want to have people come into the same location going forward as opposed to a big pivot or even a semi pivot to work from home >> yeah, that is true. reportedly, it wasn't that long ago that apple dropped $5 billion on a new campus pretty interesting, apple coming out here and making this kind of commitment, certainly as we're coming out of the pandemic, there is a lot of focus on growth and jobs. i think also you'd have to

mention that big tech is certainly feeling political heat in washington, from both sides of the aisle, whether this is fair or not it is a trend continuing and apple saying, a lot of states red and blue from texas to massachusetts, were intent on bringing jobs, well paying high quality jobs and that could help win over in some friends. >> josh, thank you. michael, it looks like apple plans to spend more than $430 billion on not just this but data suppliers, r&d, is this what you want to see from apple? >> yeah, i mean apple has become so many things it is hard to tell what moves the needle but they're taking this in the right direction. i think they report tomorrow along with many other stocks we'll see what happens we'll see what they say. >> all right let's hit shares of spotify. climbing after the company e-mailed users that it plans to increase the price of many of the subscription plans across the u.k. and europe and will hike the place of the family plan in its u.s. by $1 to $15.99

per month. the change set to take effect this friday. it looks like the market likes it seeing some pricing power up 5% and a trong stock. >> that is a game plan, laid out by netflix and by cable before that make the service indispensable and switching costs perceived to be high and if you're raising it by a dollar if churn doesn't go up by 7 percentage points then you're in the good in terms of being net down the road. so i do think it makes sense right now consumers are getting very conditioned to being latched into subscriptions so i think it is basically part of the story that people have been expecting. it is still been a super expensive stock. people have been owning it because it is such a big player in a massive market. not because they've been able to really shoot the lights out financially. >> plus -- needs a little bit more revenue to buy arsenal. >> which apparently they are

serious about. >> according to reports. but he did tweet about it so it is not like no one has mentioned it but it is continued to gather pace, the story over the weekend and we'll see what happen. but very quickly, michael, what is your take on spotify stock here >> so, u.s. revenue for podcasting just broke a billion dollars which seems tiny and the podcast wars may be heating up over them and the news we got from apple last week but it is not just part of the business right. this is all that they do this is their business so i think they're well siftuated to take advantage of things in motion. >> let's talk tesla. phil lebeau. >> it is the earnings of the day, maybe of the week and for tesla investors, a couple of things to focus on first of all, automotive gross margins as they've been selling more models and the question is

what happened with the gross margins. most expected to be around 22% and delivery guidance, will we get one for the full year 2021 and then there is elon musk himself, the conference call is the most interesting part of earnings day for tesla but the last couple of quarters have been subdued as you look at shares of tesla they are expected to post a profit. it would be the 7th straight quarter that is a profitable one for these guys earnings coming out in a few minutes. back to you. >> we look forward to the numbers. mike santoli, clearly shares aren't doing as good as they were last year that said with a few dips below 600, the 700 to 800 range is a relative win, isn't it. >> absolutely. it was a pretty severe shake out. it had this follow-through to when it got added to the s&p 500. the price of the s&p index funds bought it at 695 in december then ramped with the rest of nasdaq into january, $900 top tick and then, yeah, it went down

below $600 at one point in that kind of nasty down draft and it has rebuilt itself and i think the question when it comes to tesla, how much do quarterly results matter this is a stock driven by this massive big picture multi generational we're going to save the world story about energy, it is not necessarily about beating delivery estimates by a few thousand in a quarter or whether you earned money or if you take out the ev credits and all of the rest of it i think it is ending up being an eye of the beholder story. but the stock has held firm since the down draft and not resisted those lows. it has a mini up trend but within a range at least for a little while longer. >> what is also different this time is we ask about competition now but you're seeing momentum in the business plan and the strategy behind names like general motors so number one, tesla won't have to sell as many of these credits right, this quarter or down the road as the competition ramps up

its own zero emissions kind of vehicles but what about the competition eating into market share >> i think tesla a year ago was 80% of the electric vehicle market and now they're just around 70%. and to michael point, this stock has done so well over the long-term that even the near 40% hold back that we saw a few weeks ago, barely even made a dent in the long-term trend. so right now it is sort of in no-man's-land but even with such a decline is still higher. and also to michael's point, the bulls they are not looking at the fundamentals they think this is a $2 trillion stock. so i think that the betters could hang their heads against the wall, but the bulls are playing a different game. >> mike sants olie, wanted to mention the bounce in bitcoin today. pretty pronounced now, a 10% gain which helps the general mood of risk appetite. >> it does and it is coinciding with a few

other little inklings of maybe some of the maybe retail traders or people who like the high octane stuff getting friskier. you had game stop and amc up today. so if you see these little eruptions of interest in those areas, obviously bitcoin, you talk about something that is still within a pretty strong up turn even after a nasty pullback, that would qualify there has been a lot of talk that it did look like you could have cracked for a little while longer based on how much it was down from the highs and we have sort of the technical loss of momentum so right now it is -- i shouldn't say it is a one day bounce because i guess weekend trading counts when we talk about bitcoin. but it is a relatively fresh little bounce off of a correction. >> how bitcoin base which is getting about a 4 and a quarter percent boost, michael have you bought bitcoin on the dip? would you be a buyer >> well i i will say that it is par for the course at bitcoin. bitcoin has performed better than almost any other asset

class on the planet and the cost of that is real. and the cost is in sane volatility and bit koib holders understand that very well. they've been traded that bitcoin buyers, they better understand that so this is the third time in 2021 alone that there has been a 20% pullback in late january, in late february and just a few short weeks it was at all-time highs going forward remains to be seen. but lastly i'll say that demand doesn't seem to be going anywhere you saw the jp morgan news today and it is not like they could supply or print more bitcoin so we'll see >> you heard the two minute mark pliek, what do you see in the market as we head into the close. >> internal ready pretty strong, the majority of stocks working right here if you look at the volumes. but it is not to one upside versus down side but it is pretty close to that it is running above 70% all day. so nothing really to worry about there. small caps also leading. they want to check in on the

mega cap growth etf, this is very faang like. nasdaq 100 type etf. it did click into a new intra day high around 224. and it shows you that it is trying here to join the s&p in record territories the volatility index has been pretty firm today given the fact that the average stock in the indexes were up all day. but a lot of times that happens on a monday, still within the range call it 16 and change-up to 19 seems like the down trend is still in tact. >> just under one minute left of the session. we do have a slight decline on the dow by two tenths of 1% or about 70 points. we were up 100 near the open, down 42 at the lows. these are fresh lows for the dow as we approach the close the s&p 500 up fractionally two tenths of one% and the nasdaq lead the charge up 0.8% but the russell 2000 is ahead of that at 1.2% energy and consumer discretionary and materials,

still up about half a percent or so consumer staples, the big decline down more than 1%. we have two or three other sectors joining in the red the dollar has been flat today you've seen the ten year hover around 157, all down, down slightly at the close. s&p up two tenths of 1% and the dow down and the nasdaq holding on to the best part of 1%, gains up 0.9%. >> welcome back to "closing bell." i'm sara eisen along with wilford frost and mike sants olie do you is lower. weighed down by united health care, that is the biggest impact negatively for the dow but the s&p did finish at a record high. it was a mixture energy was the best performing sector and technology had a strong day and amazon had the biggest positive impact on spy which is the etf that tracks the

s&p 500. remember broke its four week win streak last week the nasdaq also gaining. had a strong day you saw strength in the chips in the big cap tech names we're awaiting tesla's earnings but it finished up about almost a percent and had its own record close. so a double record the small caps also strong, up 1.15%. climbing back on some of the strength that we saw in cyclicals. financials and credit card and consumer finance all did well today. all eyes turn to tesla's latest quarterly results set to be released momentarily we have reaction to this closely watched report but first this record close. courtney dominguez from payne capital management joins the conversation i'll send it to you mike on the mix of sectors and the nasdaq playing catch-up on big tech after we saw that draw down a few weeks ago.

>> it is been pretty eclectic, sara i won't say that we're still in the mode where it was either only one style of stock or one factor driving things. it is been a little bit more of an assortment of things apping recently i do think big cap was the most important kind of driver in terms of index performance here and it is really in the context of a little bit of a pause i mean two weeks ago tomorrow the srp closed at 4185 and we're at 4187. the question is not whether it is bullish, the question is whether in the short-term it is been almost too simple to stay with it and i think it is impossible to make that determi determination and you have look out for the market could downshift and stop and instead of downshift and stop and reaccelerate. >> what is your take on market levels at this point are you fearful of a pull back >> quite the opposite. i still think the markets have a lot of room to run you see the vaccine and monetary

policy, they are all furthering economic growth here i think you want to make sure that you're taking advantage of the good valuations here so i'm still add fog value over growth, small over large and foreign is looking attractive over domestic so there is good buying opportunities but generally speaking i think the markets still have a lot of room to run here. >> is the market just doesn't care that many parts of the world, very populous parts of the world are still dealing with the covid-19 crisis. it is raging in india with some horrifying numbers it is still happening. we don't have vaccination rates anywhere near the u.s. i mean clearly that makes the potential for new variants to form the market just brushes all of that off, huh? >> that is not going to effect investors. if i sounded giddy, that is a reflection of the market and i would tell investors to curb their enthusiasm it is easy and i can't see it not getting harder from here the s&p 500 has been within 5%

of the all-time high for 119 straight days. everything is working. 97% of the s&p 500 index is above the 200-day moving average which is a high. the median stock is 3.6% off of the 52-week high everything is working. we can't even get a dip let alone a pullback how is that going to manifest, i have no idea but to michael's point maybe be on the lookout. >> mike, we mentioned that some height profile strategists are starting to get a little bit more cautious. do you feel that is out right bearishness or just trying to be a bit cute and tactical and switch back to bullishness if we get a 3% to 5% pullback. >> people say this is still a bull market but we're at a point where we do get a little bit of a slowing, a flattening, a more choppy period if you look at past cycles, everything matched up with that type of a potential

outlook. on the other hand it is probably in that positive when strategists are not super bullish the way the market is. so it is not as if you have exuberance on the sell side that is adding to what i think is a pretty over optimistic tone in general among investors. one final point, the rotations we keep talking about in the market are helping to keep that overconfidence in check just a little bit it is really hard over the course of a few months to say i own all of the right stocks, i'm brilliant, the market is proving my genius right here so that is also a net positive people are a little bit off balance. >> we have an earnings alert mxp semiconductor, josh lipton with the results >> sara, mxp q1 eps, street estimate at 221. and revenue $2.57 billion and 2.56 $2.57 billion, that is basically in line with what they have been

looking for. they were at 2.56. 1.23 billion in the quarter with regard 1.22 billion industrial and 571 million and mobile 476 million and communication and infrastructure at $421 million back to you all. >> thank you very much stocks flat after hours. mike, what stands out to you as we get the semi numbers. >> not an awful lot stands out in terms of the actual results probably more important to hear about expectations for whether you could unclog this supply chain stock is still 5% below the high the semis in general have been a little bit conspicuous and not joining the rest of the market at new record highs but they are very close so it is tough to really penalize the semis for that at this point. >> let's talk bitcoin bouncing back from a huge sell-off. kate has the story for us. hi, kate. >> bitcoin showing volatility again this week. take a look at that one week chart. it is trading back above

$53,000, closer to $54,000 now after falling to near $47,000 just yesterday that was its lower level since march 5th. as far as what is driving it some say the crypto currency was over sold. we do tend to see dips on sundays when the banks are closed so less demand and support there from wall street and speaking of wall street, others are pointing to reports that jp morgan is preparing to offer an actively managed bitcoin fund to certain clients. this is according to coin desk the bank did just respond to cnbc request they are declining to comment on this the bitcoin rebound comes after a wave of selling last week. bitcoin first dropped below $50,000 after news of president biden's proposed capital gains tax. back to you. >> thank you so much michael i'll come to you on this what is your view on the direction from here. i guess one point on this is it always bounces aggressively after a bill of a pullback

but it never sees the volatility die down for something that is supposedly a currency or a store value. >> the amazing thing about bitcoin it is just as volatile at 60,000 as it was at 600 last week you had reports of $10 billion worth of liquidation at finance again reports that they're offering 125 to 1 leverage so you're getting $100 of exposure for 80 cents and so you have the big liquidation you have $10 billion worth of foreselling and then here $54,000 and every time bitcoin is on the ropes, people get excited, this is it, this is the fall and it bounced back this is one of the most resilient assets i've seen in a long time. >> let's now go to tesla because the numbers are out and phil lebeau is going through them what is the headline. >> this is a beat on both the top and the bottom line. and the beat on the bottom line is substantial earnings 93 cents a share. that is better than the estimate

of 79 cents a share. revenue better than expected at $10.39 billion the estimate was for revenue at $10.29 billion automotive gross margins up to 26.5%. we're just now pouring through to see if there is anything in here about a guidance for 2021 deliveries and the street is expecting them right now, the street is expecting them to deliver 799,000 vehicles this year though we haven't been able to find anything here within the reports that says that they are giving a guidance for 2021 though that clearly could come up on the conference call which starts at 5:30 this afternoon. so a beat on the top and bottom line for tesla. >> mike santoli, beat on the bottom line nice to see. but as phil alluded to there, the key swing factor at earnings, even if earnings is the key factor, for the stock is guidance on deliveries. >> you want to hear that in terms of the operating

business, they do pension that they had a reduction in the cash holdings related to the purchase of bitcoin it seems mostly. and if you look at adjusted ebidta, non-gaap, it is flat quarter over quarter so don't think it is a tremendous surprise compared to what we know coming in here. but margin beat is probably certainly welcome. but we're talking about a company of $700 billion in market cap, massively inflated relative to the size of the operating business still so that is what it is all about, the future and what is coming next. >> investors were looking for any updates on the new factories that are being worked on got an update on berlin. the build out of the giga factory is moving forward and deliveries are remaining on track for late 2021. and then then talk about paint and other stuff. how is it doing relatively to expectations the stock is lower after hours.

>> the expectations have been so high they does so fantastic last year that they do have a higher bar to reach even when they are beating expectations and i think people are looking at the earnings call tonight because they do have p.r. like the crash in texas and consumer complaints in china and when you look at their auto pilot technology and consumer market share, that is a key thing to get addressed on the call tonight and something european un investors will be watching. >> do you have a bet against this stock. >> no. i would say this is a rare win for efficient markets. one of the biggest battleground stocks after ernstings, it plat. so congratulations to shorts and longs. you nailed it. >> what do you want to hear, mike santoli, do you think it is a mover of the stock, the crash and some of the issues around auto pilot that we've been talking about, is that a key problem for investors? >> i don't think it is necessarily an ongoing problem relative to what people are

focused on right now if you want to quibble with the fact that they call it auto pilot and it really isn't auto pilot and whether there is regulatory pushback in how it is treated and how it gets rolled out, i don't know. it doesn't seem as if it sets tesla back relative to other auto makes right now we have focus on every single incident. so i don't think it is that. but it is exactly how the overall business is tracking i think sequentially this quarter was the fourth quarter it did not change very much in terms of deliveries or in terms of cash flow and things like that so i think it is about what the trajectory is from here. and by the way, we talk about it being a battleground, it is not a heavily shorted stock. i think it is 6% of the float is short. it used to be 30%. so it is that people have been capitulated out of it or if they got lucky they took a profit on the a down draft. >> we'll have to leave the market zone there for today. michael and courtney, thanks for joining us >> thanks for having me. up next, more reaction to

tesla and what analysts want to hear from the company's up coming call. and cryptal analysts for bitcoin and why they don't think it is bad for the environment as many people claim. we're ckerba he on "closing bell" in 90 seconds. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. i have an idea for a trade. oh yeah, you going to place it?

not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪♪ keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo some news on lyft. we have the details, deirdre. >> lyft has just announced it is going to sell its autonomous driving unit to toyota for

$550 million this is a bit to reach that adjusted ebidta profitable target and they will reach it by the third quarter of this year remember that both ride-sharing companies here in the united states, lyft and uber have been trimming expenses over the last year so the pandemic to help achieve that profitability adjusted ebidta profit ability that is uber last year sold its self-driving unit to aurora. so you're seeing certainly some consolidation in the self-driving car space this time it is lyft and you could see that shares are up about 1.5% they were up as much as 5% guys. it may be because eurinvestors e expecting to hit this measure of profitability this year. >> is this a vote of confidence in the idea of autonomous driving in general or not? i mean this is lyft escaping that part of the business or toyota saying we need exposure

to some good technology? >> well, i think it is a little bit of both. i think that toyota has been on this path, they've invested in autonomous driving so this is taking it another step further and it shouldn't be that surprising because we know that the ride-sharing companies have been under a lot of pressure plus, wolf, we've seen them spend more money on driver incentives, that is a supply of driver shortage has been hitting that recovery. so as they spend more there, perhaps they have to scale back other projects and this is lyft following in uber's footprints at one point we thought that the ride-sharing companies would be disruptive but the pandemic has certainly changed things and they are scaling back some of the move shots. >> thank you for that. marine while tesla just out with the earnings beating on the top and bottom line. shares slightly lower, 1.2% in after hours. joining us now garrett nelson with a hold rating and reporter

laura colny as well. and i'll come to you first garrett in terms of the bottom line and the top line, is this very impressive and it is the key factor that you're looking out for any way on this earnings release? >> sure, thanks for having me. it is very impressive. on the top line the revenue came in about 110 million above consensus. but the real beat, the real factor that drove the 15 cents earnings beat on the bottom line was due to better than expected margins. the motive gross margin came in about 100 basis points better than a year ago. so that is ra -- what really drove the beat it was a solid quarter one thing that tesla, is they've started to execute over the last year, year or two. this was the sixth quarter in the last seven in which the earnings have beat expectations. so i think that is the real difference with this story, is they're finally executing and

one thing that analysts are really looking for is the timing of the completion of their new factories, the one if germany and the other in texas which they reiterated are still on track tor completion and first delivery by the end of the year so not much change with the guidance. >> laura what stands out for you and what are your key questions for the call coming up >> i don't think we have her audio. we'll work on fixing it. >> garrett to you. what is the key question for the analysts call coming up? >> well, it looks like the stock is very little changed here at post release which is a bit surprising given the magnitude of the beat. one thing just looking quickly through the release is they weren't real specific on the full year delivery guidance. so we think that is intentional. after their experience last year, in which the guidance was

for sales of half a million units and with all of the issues that came up and all of the headwinds they faced with covid, and the shut down of their main factory in fremont, california, for almost two months, it put an enormous amount of pressure on elon musk and on the workers to really execute to hit that guidance which they just barely did. so we think that is intentional. it gives them more flexibility and we know there are still part shortages, particularly semiconductors that are effecting tesla and other automakers laura, i think we fixed your audio and i was eager to hear what you were going to say because you write about this all of the time. what are the key questions facing musk and tesla at the mo moment >> i think about tesla could maintain his competitive edge with new battery electrics coming from audi, vw, ford, you name it from the up starts and the fact they're growing sales more than 100 percent

year-over-year but only grew the mobile service lead and service centers by like 20 to -- 22 to 28%. it is a sign that they have a lot of cars out there but the customers who remain frustrated with long wait times for service, that is a sort of a attack vector for competitors and i always notice that in operational details. >> should we expect any comments on the recent crash in texas or not? >> i wouldn't expect them to comment on an ongoing investigation during the earnings call but they might speak to progress on and hurdles with developing the automated driving systems which are not autonomous but are level two automated drivers so driver assist. >> are they still making money on the credit as the other automakers ramp up the competition. >> they are. and it is very important source of earnings, not only revenue but earnings because you think of it, there is basically no

cost associated with that revenue and they've been increasingly that line item has been increasing significantly in recent quarters. so -- you don't think it goes down >> that is right that's right no, we think it actually increases over time. >> interesting garrett nelson, laura, to you as well let's send it over back to mike santoli for a look at where the analysises standond earning season so far. mike >> this is another way to really gauge analysts aggregate enthusiasm it is the split of buy, sell and hold rateks of all ratings within the s&p the number has increased, it doesn't change that radically but it ras increased in recent months and this is converted into s&p 500 terms, it is not dollars, it is at s&p level. if you had every stock meet the

consensus price target within the s&p 500, it would be about 45 4575 here is a chart that shows that relative upside of the current price to the sort of implied target over time and you see it is just under 10%, around 9%, obviously march 2020 everyone's target was high and dry because the parkts crashed similarly here back in the fall. this is not a couldn't raw indicator, analysts see a lot less fundamental upside, they have to raise the price targets and i would take a look particular back in here, that was early this year and then also that september 2nd, that is when we had the -- right about a 10% pullback you saw analysts have very little anticipated upside in aggregate. we're not there yet but if we go up another percentage in the s&p we'll see if we get back to those terms. >> mike, thank you. bitcoin bouncing back a bit from last week's big sell-off.

up next, an analyst on why he said bitcoin mining could encourage more investments in renewable energy even tughoh most people think the opposite we'll be back.

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we've got some news on snap. julia boorstin has it for us >> snap shares moving lowner after hours trading on the company announcing that it is proposing $1 billion in a private offer you see snap shares are down over 1% right now. the company intends so offer $1 billion in convertible senior notes due in 20. this isn't a private placement to institutional buyers. company said it intends to use the net proceeds from this for general corporate purposes including working capital to pay the cost of cap to call transactions and potentially capital expenditures and may use a portion of the proceeds to acquire complimentary businesses back over to you. >> thanks into bit bitcoin regaining steam. criticsoch assert that the mining of the crypto currency hurts the environment by

consuming energy and producing co2. in a new blog post the firm argues that quote a world with bitcoin is a world that at equilibrium generated more electricity from renewable carbon free sources. joining us now is the author of that post, yassine elmandjra from arc investment management it is good to see you. i read the report a few times and i still don't quite get it so explain how mining bitcoin is actually good for the environment, contrary to what most other people say. >> sure. thanks for having me it is great to be here i want to take a step and address how we think bitcoin mining critics fundamentally misunderstand the importance to bitcoin. first mining is the backbone of what makes bitcoin secure and decentralized. to is regulated the big supply and allows it to have no central oized point of control so when we're talking about energy consumption as it relates to mining.

we have to first consider what the energy consumption is and in this case it is a apolitical commodity than to extract gold from the earth's crust but bitcoin is a a lot more tr transparent. even if bitcoin does consume energy, it doesn't mean that it is destroying the environment. so the bitcoin critics who argue bitcoin is bad for the environment conflate energy consumption with carbon emissions and pollution. so what we tried to lay out in the most recent open source model is that bitcoin mining could be a net positive to the environment by accelerating at adoption of renewables and then we lay out the specific implications that it could have for solar energy systems in particular >> still don't quite get it. we were just showing a graphic from bank of america merrill

lynch which shows that not a lot of other human activesity generate a higher carbon footprint per dollar and $1 billion in bitcoin purchases is equal to the co2 emissions of 1.4 cars driven in a year and 1.2 million cars driven in one year and we're seeing 1.5 and coal and fire and power plants 632,000 home energies use for one year is that wrong? >> yeah, let me first address that framing and then we could get into the actual model and how it relates to solar energy systems. so a lot of the analysis that you're seeing here is that transaction energy cost analysis, which a lot of people reference in and our police chief is flawed because bitcoin energy consumption doesn't kale with through put look at how much energy we need to consume to facilitate a

single transaction but there is no per transaction energy cost in bitcoin and that individual transaction don't actually carry any energy pay loads. that goes back to what the use of mining is it is really a means to facilitate the newly issued supply and then effectively reward the miners for securing the network. so the quality of resources that miners are willing to spend has nothing to do the transactions that bitcoin could support. >> we get that it doesn't make a difference at what stage of the process this energy usage is necessary. the point is it is necessary and it is huge and from my reading of your blog and what you're saying to us now, you're sort of positive case for why bitcoin is good for the environment is reliant on allsorts of other things happening. which may well happen if bitcoin is adopted more such as more renewable energy uses, uses in general in the economy as a whole.

but it is not directly linked to bitcoin's usage picking up at all. is that a fair point in terms of your argument, your conclusion that bitcoin is good for the environment, it is totally reliant on other things happening which could happen even if bitcoin went -- disappeared tomorrow. >> sure. so let's like dive right into how bitcoin could actually accelerate renewables and how the energy consumption does not equate to pollution or co2 emissions. so when you look at solar today and some of the limitations, we see that sun shines during the day but not at night so the energy supply is abund ant or nonexistent. so in the case of solar there is a mismatch between the demand. >> sorry, i think you're completely ignoring the questions that we put to you and going back to your original point. i get that energy consumption doesn't necessarily lead to pollution. but what is happening at the moment is not the only energy used for bitcoin mining, is

renewable. and if that was case, fine but that is not what is happening. >> that is correct. >> so you're pushing back to say that energy consumption isn't necessarily polluting the environment but it is if the mix of the consumption includes fossil fuels, which is the case, is it not? >> it is not the case. if you look at overall energy mix of bitcoin mine, agree it is not by no mean renewables based there is a significant portion of the mix. >> what percentage >> so about -- so in hydroelect, 40% of bitcoin energy out lay derived from renewables and 76% of mine are using renewables in sh some capacity. >> it is a massive leap and the whole blog is a massive leap it could well be the case one day that all bitcoin mining is derived from clean energy. but it is simply not the case today. and i get your point that you could pick holes in when some people saying it very, very bad

for the environment. but to try and claim it as good for the environment is just a massive leap that based on what you're saying to us today i don't think you have the pointed to back up >> so this is by no means an exhaustive breakdown of the opportunity but i do think that it is important to address how a lot of what we're seeing today when it comes to bitcoin mining is misunderstood and in that the energy mix is trending towards renewables and if you think about how if we were to look -- to look at this model specifically, how it could actually encourage the overall penetration and actually supply a higher percentage of the grid with no change in underlying solar energy systems as the underlying profitability of the systems. that is i think a conversation worth having and more broadly. >> and i think we should also just for transparency, point out the fact that arc invest is a big bitcoin believer and owned coin base and you published this

in conjunction with square which is jack dorsey is a huge bitcoin believer and holds bitcoin so a lot of people do look at this and say it is pretty self-serving. >> we're certainly long-term believers in bitcoin i just think that most of the mainstream coverage on bitcoin and specifically bitcoin mining still fundamentally misunderstands how the mechanics work to be quite frank, this transaction energy cost analysis are some of the points that you're referencing about general energy consumption still alludes to the fact that there isn't a misunderstanding on one the energy mix and two, how that actually translates to bitcoin as a functioning system. >> thanks so much for joining us today. we appreciate the conversation. >> thank you very much. tesla shares under pressure despite a strong earnings beat coming up, reaction from an analysis who has a buy rating on the stock. we're back in a couple you got your new customers — they get our best deals.

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review will begin immediately. kevin stit has signed three anti-abortion bills into law including a ban on abortions if a fetal heartbeat is detected, opponents of the law are considering options to challenge the laws and try to keep them from taking effect and the environmental protection agency said that it is moving to restore california's legal authority to set vehicle emissions rules that authority was withdrawn but the trump administration year now up to date. back to you. >> thank you. up next, more on tesla earnings with an analyst who said tesla is creating an apple-esque eco-system and shares of lyftar announcing it is selling off the self-driving car unit to toyota for $550 million saw a silar vemimo from uber a few months ago we'll be right back. at cdw, we get these new ways of working bring new threats. that's why we started an office commune. not a security concern around for 50 miles.

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up next, a major alt meet slowdown some new data shedding light on changing consumer appetites in the world of fake meat how that might impact impossible foods ipo straight ahead on "closing bell. but first, let's talk tesla.

jed dor sh heimer joins us we lost the teleprompter there it is good to talk to you. thank you for joining us and i know you recently upgraded the stock of tesla just got the numbers which were a blow out in terms of the bottom line, higher margins, why do you think the stock is down a little bit after ours. >> well what is that saying beauty is in the eye of the beholder, i think you'll get a little bit for the bulls and a little bit for the bears on this one. if you look at the revenues, you have baseline on consensus with a lot of momentum. bears will point to potential slowing of momentum with difficult year over year comps and bulls will look at auto margins that are over 26% and being able to kind of prove out the ability to profitably

manufacture the y over in shanghai our call is a little bit different. it is on the energy sector it is a far cry to -- in this quarter, energy is off a very low base and about what we do see here is an eco-system that is building and it is that if they are able to open up capacity on the 4680 sell, how will they deploy that capacity it is either in vehicles or in energy and the latest add increases that we're seeing on the solar and energy side, that is where wee think that they're going to have some success. >> hasn't that been the case all along on the battery side. what has changed that is led to your new view and i wonder if the whole momentum around the stock has changed. i think it is flat so far this year after last year's tremendous run up. >> you know, i think if you go back a couple of years, i think talking about tesla is more of an energy story or utility and

energy provider. that is not a new phenomenon but i would point out that most of the bullish expectations on wall street are running full self-driving, robo taxis it is not on the energy side energy sector is relatively low. so we're more bullish. double that of the street in 2025 at $8 billion we think that is not being fully recognized and understood in the model. it is going to take some time for that one to manifest though. and i do think that elon has some explaining to do in terms of a couple important points, both on the auto as well as the energy on today's call. >> and i know you look at fundamentals and listening to the call on guidance how much of a problem is it that the stock has plateaued give or take since the start of the year following such a big rise last year and the fact that some

investors might just lose faith because they bought in kwh which it was a gold rush and now it ceases to be that or seemingly has ceased to be that for a few months, they might just lose faith. >> listen, stocks never go straight up. and if they do, that is problematic. i don't see that as -- at least from a fundamental perspective, you might if it gives a little bit back, we look at that as a great opportunity if you buy into the thesis and you start seeing the data points that support that, you're building a mosaic on something bigger and long-term. i don't necessarily see that as a break. on a frothy market that looks like the entire market is kind of stalling out a little bit so that doesn't bother us. >> now down 2.5% after hours ahead of the call. thank you for joining us and up next, is fake meat losing its bite. we told you they were going to do the story and we do have new

data on the food fad on wall street mind ever since beyond meat went on public. we'll do that for you next on "closing bell. did you know that petco, is now a health and wellness company? i adore their groomers and their vets our physical, social, and mental health cared for in one place. ♪ petco. the health and wellness company. wholehearted is packed with high quality ingredients to give me energy. without it, i would've never found this.

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a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture new nelson data showing that alternative meat sales have been falling after seeing big gains in the pandemic. kate rodgers with the story we have all been waiting for. kate >> good to see you, sara take a look at this chart. while overall sales in alt meat have grown, the rate of volume of sales growth in fresh and

fully cooked plant based meat have taken a steady dip according to daya. after gains in march as the pandemic provided an early boost with more people loading up on groceries and opting to try new things in restaurant sales, also took a hit as more people were dining at home. but beyond and impossible are expanding into more grocery stores and lowering their prices which is steepening the competition between the two. beyond is still the category l leader, increasing the stock by 20% and impossible is gearing up for the own ipo later in year. beyond also has a partnership with mcdonald's yum brands and analysts at btig expect to bare fruit in 2022. wolf, back over to you. >> thanks for that. up next, google and alphabet set to report tomorrow coming under scrutiny from regulators but has that met the

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5:30 eastern, and nxp higher after revenues topped expectations that's up 1.4%, tesla's down 2.4, ask we've got a news alert on game stop announcing that it has completed its previously announced sharing offering program sending 3.5 million shares for gross proceeds of approximately $551 million that's the maximum number of shares the company was offering in this round. they've been taken, and moving higher after hours off the back of that sort of confirmation really. >> yeah, up 9% after the break, your wall street look ahead, investors gearing up for the next big faang report google parent alphabet on the docket for tomorrow and its critical ad business is taking are center stage we'll tellou wt w yhatoatch when that name reports next.

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wall street look ahead is sponsored by c3 ai this is enterprise ai. now to our wall street look at alphabet to report tomorrow, deirdre bosa has a preview of that de. >> hey, again, wolf, alphabet

already the best performing megacap tech stock the street expecting the ceo to keep the momentum going as that digital ad market continues to recover. do watch cloud and youtube revenue. this is part of google's diversification cloud. it is still losing money and it's still smaller than the cloud businesses at amazon and microsoft but it has continued to grow at a healthy clip, which investors have appreciated in the past as for antitrust scrutiny, it keeps building investors still not concerned that it will have material impact on the business back over to you. >> the travel return, right, is set to help google how much are they exposed there? >> yeah, they do have a large exposure to travel, especially through their digital ad business so actually, i believe it was bank of america calls google their top reopening pick that all plays into it, and you know, it was a little bit of a laggard last year in terms of those mega cap names but this year it's been off to the races,

that travel, the reopening play expected to feed right into google's strength. >> thanks so much for that we're looking forward to those numbers. it will be a big one, of course big week of tech earnings to come mike, i guess the key question with a lot of the cyclical stocks that have already reported even with good earnings beat it didn't really drive things higher whether that might be different. >> it's tough to generalize at this point alphabet has had an amazing run. it's not as expensive based on, you know, free cash flow and earnings as it's been in recent years. so arguably still some upside there. but i also see the back and forth in terms of leadership, it's evidence of an indecisive tape at the moment we knew earnings were going to be great we knew gdp was going to be roerg. it's all happening the market is digesting it well and obviously holding it together, but not taking each incremental kind of bit of good news as an excuse to catalyze higher at least not yet. >> we did close at a record high for the s&p and for the nasdaq

it's sort of been this quiet march higher without any major catalyst you know, it's not moving on vaccine news or anything like we used to see, mike. what breaks that quiet >> it's just the backdrop, right? maybe it's going to take something on the yield front for them to maybe reassertthe increase in treasury yields that has really taken a break we obviously have a fed meeting this week. >> we had a weak auction this morning, too. >> a weak bond option, too there could be some movement along that front we're going to get through here, we're going to get a gdp report. it's difficult to say. we've had a little bit of an air pocket near the end of each month this year. that's such a well-examined phen phenomenon i'm not sure that would come as a surprise to anybody. i still think it's a mix of relatively comfortable positioning and attitudes towards stocks investors are pretty much buying into the bull market theory combined with a tape that's been, you know, pretty tough to buckle so therefore, you know, don't fight it at this point it seems like, you know, if you tell everybody the fundamentals

are great, it's not coming as news necessarily to the average investor. >> and a little bit of a pickup in the vix, but again, same with yields, steady, nothing to worry about. >> not yet certainly at these levels there's a little bit of an increase in correlations among different stocks that sometimes bumps the vix higher i don't think any of the signals say that we have to be raising alarms just yet. >> that does it for us today on "closing bell," thanks so much for watching "fast money" starts right now. i'm melissa lee, and this is "fast money. tonight's trader line, guy adami, and founder of new street advisers tonight on fast we're all over the after hours action shares of tesla and nxpi those stocks on the move on earnings are breaking down their quarters straight ahead. plus, time is ticking on a correction that's the warning from morgan stanley's mike wilson. why he's calling for a big pullback. and the big rumor that sent amazon shares rallies today. we'll take a trip to the options pits to find out what's with really going on. shares on the move after the beat on the top and the bottom