i know what the taxes are like but there's trash collection there's sewer, there's water you better be pretty handy if -- i've thought about it, dom, i don't think i'm up for it. >> i'm a suburbs guy, i'm fine with infrastructure, i'll stay right there. >> thanks, everybody suburbs, rural, whatever >> "closing bell" starts right now. welcome to "closing bell." i'm sara eisen with will frost the dow is inching into the green, the s&p 500 is flat any close positive for the nasdaq or s&p 500 would be a new record close let's look at what's driving the action now one hour left of trading a number of names seeing big moves on a packed day of earnings season. ups is surging on blowout numbers. 3m, eli lilly, tesla, all lower.

federal reserve with an interest rate decision and news conference coming tomorrow respondents in our latest cnbc fed survey expect the fed to stay on hold for at least the rest of the year a bullish sign for the recovery. consumer confidence soaring in april. highest level we've seen since before the pandemic, easily topping expectations we've got 59 minutes lefti to g. we're seeing the s&p 500 flat. >> coming up on today's show, chart expert tom mcclellan, using history as a guide to where he thinks the market is heading. plus what he thinks is the best time to buy and sell apple in and around results after the bell, buckle up for a wild ride of earnings. results from apple, microsoft, visa, starbucks, and monday dell mondelez so many earnings coming out, and

big ones we're tracking the market action and we have the key details of the president's coronavirus update mike santelli, we'll start with you. >> market really just pausing to take in the view from all time highs. buyers and sellers today are fighting half heartedly to a draw below the surface, not too much to worry about it's been a little bit of a slowdown two weeks ago we hit these levels on the s&p, a little 1, 2%, minor pullbacks. animating factors today, treasury yields buchlg higher, reopening trade, more of a cyclical tone today, pressure on big cap tech all in all pretty much holding steady as we await obviously a lot of the big earnings and the fed meeting to come. the buyback etf hasn't gotten too much attention, outperforming over the last two years. this two-year chart shows you it's more or less in sync. i point it out because one of

the factors perhaps in alphabet's numbers might be a capital return story they might be getting toward the the end of their buyback. one element with microsoft and alphabet reporting that might be part of the picture. the backdrop for liquidity, u.s. financial conditions have never been looser at least in the history of this goldman sachs indicator. it means things like volatility, credit spreads, all of them very favorable. nothing to really argue with the question is can it get any better from here because right here was early 2018, you saw a quick reversal to the tightening side as things got more volatile and choppy that was a previous all-time low. for now, it's basically saying everything's accommodating the question is how much it can improve from here, guys. >> mike, i guess we've seen with earnings season that you need very big beats to justify any share price reaction where are expectations for these big cap tech stocks that we start to see reporting >> i think that these estimates

are a little tighter to with a we might be getting in the results. now, there's also a little bit of give to the upside in terms of a company's ability but these are much more predictable business models when we're talking about alphabet and microsoft. you wouldn't think you see a big swing because of a big surge in demand for this quarter. they're pretty well situated only alphabet has outperformed the market since september 2 among the big faang stocks that's the one where maybe there's higher embedded expectations >> see you soon, mike santoli, thank you. president biden is giving an update to the government's coronavirus response this afternoon after the cdc makes a big change to mask guidance. meg tirrell with all the details. meg? >> reporter: hey, sara the president giving a speech earlier, coming out with his mask on outside. but after this speech about to change in the mask guidance, not putting it back on to walk back

before he went inside. that with the cdc coming out today essentially with new guidelines that pertain to people newly vaccinated, if you're in a big crowd and you're outside, you don't have to wear the mask anymore even for people who are not fully vaccinated, you don't need to be wearing a mask when you're walking, running, biking, outside or alone or with people in your household. for small outdoor gatherings with vaccinated and unvaccinated people, if you're fully vaccinated, you don't have to mask and if you're eating at an outdoor restaurants with multiple households. experts we've been talking with are hoping this is incentives for more people to get vaccinated if they haven't already, this as we're seeing the pace of vaccinations daily really slow down after a peak april 13 it's down 20% from that high just two weeks ago and so experts are hoping this really picks up. guys, as it comes to kind of the next stage of vaccinations here in the u.s., we talked with

pfizer's ceo this morning where they're waiting for a decision from the fda for the vaccine from 12 to 15-year-olds. here is what he said about that potential timing >> i'm very optimistic because i know the data, we're having 100% efficacy, very good for our ability and safety profile based on that, i believe that the fda will move very, very fast it's a question of weeks >> reporter: so guys, a lot of experts really wait ing for that they note it took only three weeks for the emergency use authorizations to come for adults they're wondering how long it's going to be for teenagers. >> on the new cdc mask guidance, meg, why can't vaccinated people take off masks indoors, restaurants, gyms, bars? why are the recommendations still to wear masks if you are vaccinated is it that they just don't have any breakthrough data on whether they can still transmit? >> reporter: you know, they do

have some breakthrough data on transmission, although it isn't perfect transmission data. but we're just talking with eric topol about this from scripps. he says the data look really good on the data we've seen so far. he thinks that led them to make this amount of guidance. but some experts are saying they should go further, the data can support it, andit would give more of incentive. it seems like they're being cautious given the science right now. after the break, we're on apple watch. the company getting ready for quarterly results tomorrow we'll talk to a chart analyst, tom mcclellan, who says he's identified the best time to buy and sell apple stock around earnings we'll hear from him next we've got 52 minutes left of trade and you're watching "closing bell" on cnbc

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instance industrials are leading the s&p. utilities, technology, and communications services are at the bottom of the pack tom mcclellan is editor of the mcclellan report newsletter. good to see you, tom you've brought three charts. let's start with the s&p 500 which you look at in terms of seasonality and the presidential cycle. >> it's a fun chart, because it's really working well right now. we're in the first year of a presidential term and we have something we developed years ago called the presidential cycle pattern. over team have done the same kind of work you take the s&p 500 data, you chop it up in chunks of time and average it together. this shows you the average pattern of what the stock market typically does the stock market doesn't always behave exactly according to the pattern, it's just a guideline right now we're seeing this market act much stronger than average, which is not a surprise since you've got $120 billion a month from the fed coming into the banking system and it's looking for something to do. so we're seeing much more strength

but we're still seeing the little wiggles that happen on a seasonal basis coming along. it's saying we have a tiny pause, it's okay, it feels worse than just a tiny pause but the big up trend isn't due to end until july if we follow the ideal pattern. generally speaking, the entire first year, from the election to a year later, is flat. so a lot of this will have to get given back this fall if we continue to follow the pattern that of course depends on what they fed wants to do if they start tapering it, it will magnify whatever the normal tendency is. >> the s&p 500 has climbed 24% during president biden's first 100 days in office, the best performance for any president going back to the 1950s and president eisenhower anything that would make the stock market break this historical correlation >> it doesn't have so much to do with the president as much as it has to do with how investors

feel related to the election cycle. when you have an election, especially a new president from a different party, that's all sorts of hope the new guy is going to fix everything and it's all going to be wonderful and everything that we worried about before is all going to go away so there's euphoria, especially right after the election but then when the new guy doesn't get everything fixed, the malaise sets in and that's what the latter half of the year is we're not yet to the malaise stage. we're still in the going up to july phase we're seeing it go much more strongly than the average percentage-wise but it's still following the dance steps, so don't get too hung up on the percentage magnitude look at what the dance steps are saying because that's where the trading opportunity is >> tom, you've also been looking at apple ahead of earnings what's your kind of assessment of the share price where it stands and what earnings tends to mean for that one >> the interesting thing about apple, it has its earning announcement at the end of the

first month of every calendar quarter. so in this case it will be on wednesday. and sually, apple investors celebrate and push the share price up after earnings. it doesn't always work that way. it didn't work that way last qu quarter. but usually that's what happens. the first month in any quarter is generally sideways to up a little bit you get a big up trend after earnings the second month of the quarter is the best time, on average, but your mileage may vary. and the third month of the quarter, it goes back to just sideways choppiness again. if you're ever wanting to be an apple investor, then most of the time it works to be an owner from right before the earnings announcement through that whole second month of the quarter, most of the time it doesn't always work out that way. in fact the first quarter of this year it didn't work that way, we got a big disappointment after earnings so your mileage may vary but that's the natural tendency.

it's following the pattern really well this time. >> or you can just own it and not trade it, as jim cramer says, which serves people well >> yes >> you're looking at the correlation between bitcoin and the stock market it does seem like lately, the whole idea that people are hungry for risk going into bitcoin and other speculative parts of the market has worked well for stocks. is that something you see in the charts >> yes, it's something we've been tracking for about two years. we noticed that the movements of bitcoin tend to show up again about a week later, or five trading days later, and the movements of the s&p 500 not the same magnitude bitcoin is like the tail of the dog and the stock market is like the belly button bitcoin can wag all over the place. but the dance steps show up. and so we saw selloff in bitcoin, and quite a scary one last week. and so we're now in the one-week anniversary that have where we should see a little bit of softness for the stock market this week. but we're noticing that bitcoin has turned back up again from that scary selloff last week

by the time the stock market gets to the end of this week, it should start echoing the uptick in bitcoin, not in terms of magnitude but in terms of direction and timing i wish it were a more perfect correlation than it is but it's detectable, it's there, agent it's a real effect whether you make money for it at all, it depends on the slight distinctions and variation in it the upturn in bitcoin will mean an upturn in stocks, after you get past the fed announcement. >> thanks for joining us the s&p, two basis points of gains. after the break, the current state of banking a major new funding round, andries en discusses the changes

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horowitz joining us now is the ceo, stuart sopp, thanks for joining us good to see you. >> thanks for having me, excited to be here >> so, tripled your valuation in a matter of months very quick first question, is it fair to say that is a no strings attached, no spin in terms of that valuation or is that slightly different terms on it >> no, no, cleanest term sheet out there, as they say in the industry it's a very hot market, no doubt that fintech is du jour and everybody is very interested in it very excited to be partnered with andriesen, they're joining the board as well. i've known those guys for a long time, girls and guys they're a talented team, we're excited to be interrogatory the next few years of currency future with them very exciting time >> congrats on that and i guess on the core part of the business, members 3 million

compared to 1 million or so a year ago so the pace of growth is fast. what do you put that down to >> so there was a framework shift in 2020, obviously covid-19 was a major tailwind. obviously terrible scenario in so many respects and so there was this shift from analog to digital in almost every sector, every business, as we all know, especially in finance, in banking. we are extremely proficient in mobile first technology, banking, acquiring people through pay channels and the rest of it we've seen a whole bunch of people join us on this journey, we were already there readying to we built trust with our customers. the majority of our members are people who, you know, are left out from the banking industry. there's 130-odd-million people who don't fit the business model of banking at the moment they don't have enough deposits, they don't have enough assets for banks to focus on them this enables us to step in, as a

u.s. financial tech company, to focus on people who are still accumulating assets. that's very special because we're then able to step up and into a role of trust when those times of flux. 2020, with covid-19, we saw many times where there was governmental opaqueness around, say, the stimulus checks, getting people's money in their bank accounts as soon as they can, unemployment benefits, things like this we really stepped up as a team, as a company, to really fill that void. >> so is that, stuart, what defi distinguishes you from these other fast growing companies, stripe, plaid, square? is it that you're going for a different income level >> that's primarily right, we're actually focused on part of the market that the banks are not. and they're not actually capable of doing unless they actually change their business model.

that's like the main overarching contender, challenger bank play. we focus on accessibility, over 50% of people who come and join current as a member have never had a bank account before. we have a team bank account and a full checking account, which differs from many of our competitors. we focus on liquidity. if you're not in the banking system as traditionally thought of with mass affluence, you don't have a credit score, you're not part of the credit cycle. liquidity, getting money in your hands as soon as humanly possible is what we're all about. that's another reason we've seen some epic growth finally, in value and progress, we give as much value back we have a point system if you think about it, in mass affluence you get a credit card, you get all this money and you're used to it. if you're on a debit card, you're living paycheck to paycheck, you're never afforded loyalty, never has said we value

your business. we're proud of the progress we've made, accessibility, liquidity, and value, that we give back to the majority of americans. >> jamie dimon, in a more kind of general way, did raise the question as to why big banks are so heavily regulated whereas fintech and other tech challengers to the financial space aren't as tightly regulated. do you think that's a fair summation, and is your response something to say, we're getting away with this luckily, or in fact the big banks are missing a trick, not investing in smaller startups like yourselves because i guess you are semi regulated but it's via a partner bank as opposed to it being yourselves >> yeah, it's a good question. i get this one a little bit. i mean, jamie dimon is, you know, the preeminent, most talented banker of our generation, no doubt about that. however, it's a little disingenuous in some of those comments, because, you know, banks accumulate assets and lend money out.

and if you don't fit that business model, which chase and many other banks are, they're focused on people who have assets as we bifurcate society and the economy, they're going to bank richer and richer people, that's where they're going. of course we are regulated, we have three issuing bank partnerships of which we report several times from visa to even the fed as well. we're under the same remit, same banking regulations as jamie dimon and his team under the durbin act from 2008, what they were trying to do is get to this point where small banks, community banks, but still bank people that the other banks wouldn't do. unintended consequences are, that didn't work out for the community and regional banks but did work out and is still the same objective that is completed by that act. so i think a little disingenuous from mr. dimon >> thank you for joining us, we'll continue to follow current.

read more about current's growth on cnbc.com. ahead, two companies with a combined market cap of $3.5 trillion will microsoft hit the $2 trillion mark? plus we'll get numbers from snack jigiant mondelez and we'll ask the ceo whether there are plans for price hikes. and bond yields are higher today, dollar a little higher as well ten-years around 1.61, nothing extreme but of note. certainly helping groups like financials and industrials, those cyclical plays we'll be right back.

just about 30 minutes lefting tleft in to go in the trading session doordash solidifies its leadership position in food delivery and expects gains during the pandemic to stick that stock is up 6%, still well

off the highs after we saw the ipo. shares of crocs are surging again today. the company's ceo says the demand forthe brand is stronge than ever and he expects revenue growth between 40 and 50%. crocs shares up 16.5%, up 300 over the last year they've also got a nice boost with questlove wearing gold crocs at the oscars. he was the musical director of the show >> that is ideal, because it kind of looks cool but comfortable. >> totally comfortable they've had success with some dl collaborations we've talked about justin bieber, post malone, it's been a hit for them it's comfortable >> they look a big childish, the bieber ones. with all those added -- >> gibbetts. >> who am i to say

hello, everyone. covid-19 vaccination rates continue to decline. the cdc reporting just over 1.6 million new covid vaccine shots today, the lowest daily total in three weeks. a new jersey serial murderer has pleaded guilty to two killings in 1974 police reached him to nine other murders. he is known as the torso killer for brutally dismembering his r derek chauvin will be june 25. the supreme court getting ready to consider whether schools should be allowed to punish schools for things they say off-campus tomorrow they'll hear arguments in the case of a ninth grader punished by her school for a vulgar social media post after not making varsity on the cheerleading team. read more about the broader implications of the case tonight on "the news with shepard smith. they're siding with the school district there but it's a complicated issue >> sounds like it.

rahel, thank you, rahel solomon. s&p 500 higher by two points that will do it for a record close. the dow is up by about 36 points power sports company polaris posting double digit gains in terms of sales growth this quarter. we'll talk to the company's interim ceo about its big push into the electrical vehicle market "closing bell" will be right back hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools

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i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq power sport vehicle maker policy assis reporting earnings that surged 930% revenue is up 38%, crushing wall street expectations. the stock a shade lower today but has been on a tear over the last 12 months, up over 100% joining us now in an exclusive interview is polaris's ceo, mike speetzen strong growth from off-road

vehicles to motorcycles. talk about this momentum in demand continuing. >> we saw record performance again in the new customers coming into the segment. the good news is our existing customers grew at 40% and new customers grew at 70%. folks are continuing to see the attractiveness of the vehicles we make, the ability to get outdoors, whether it's a pontoon boat or a 4c razor we spent a lot of time and money to make sure we can cultivate those customers. we also keep an eye on their repurchase rates what we've seen in 2020, the new customers that came in, they're repurchasing vehicles at a higher rate than we did in 2019 or 2018. that correlates well to continue growth into the future we've got a lot of confidence. as we talked about on the call, we're adding more capacity within the business, everywhere within the business. so we're very optimistic about the future of the company. >> maybe some concerns about

margins, mike? obviously costs are rising across a number of industries. what's happening with yours and across the supply chain, any issues >> yeah, i mean, we're seeing a lot of the same supply chain issues that many folks are seeing the ports are jammed we've got suppliers dealing with covid constraints. our team is beating the rest of the industry in terms of performance and it's a big portion of why we were able to gain share -- continue to gain share in the quarter our governments are up now, what didn't come through is clearly from a lot of the analysts is, we're pricing for that the problem is, is when you price equal to what your cost is, you're going to dilute your margins a little bit that's some of what we're dealing with net/net, we're in a better spot and doing what's right to get vehicles into the hands of consumers and we're able to leverage that all the way to the bottom line by hold the line on our core operating expenses. >> mike, does the chip shortage affect you or not really, relative to the traditional? >> no, it does i give our team a lot of credit. they saw it coming they mobilized quickly and were

able to go out and secure advanced buys. we've got visibility in terms of our supply out through august. the advantage we have over autos is we make less vehicles and our vehicles have less content that's semiconductor dependent that gives us the ability to continue to maneuver the team has outperformed. we've had to spend the money, obviously semiconductors and the components, the prices have gone up but again, we're doing what's right to make sure we can fulfill our demand and keep our dealers moving >> you're also working on electric vehicles. harley-davidson, your competitor, has a new live wire ev bike. do people really want this and will they be willing to pay more to buy ev motorcycles and ev power vehicles >> well, you know we had an electric vehicle motorcycle back when i joined the company. it actually didn't do well we learned a lot through that. our partnership that we announced late last year with zero motorcycles is actually to jointly develop power trains for

our offered vehicles we've done a couple of tease videos for an all new electric ranger that's going to be announced later this year for delivery in 2022 that's a segment where we already have a lithium-ion ranger but it's not that great consumers have been asking for it we know it will open the aperture for new consumers we're really excited it's got even more capability, obviously torque and other aspects that come with that. the best part about that partnership is they work the things they work best, which is powertrain development we do the things we do best, working the articchitecture, th vehicle, and the chassis we think it will be one of the best offered vehicles in the industry >> a similar theme to sara's first question, presumably as you go through the rest of this year, the comps are going to get a hell of a lot harder and your year over year growth will drop significantly. >> yeah, i mean, one of the

things we talked about on the call today, we expect our retail in the second quarter to be down we think recall for the year will be flat last year in the second quarter we posted 57% retail growth. that's a tough comp. one of the things we encourage folks to look at, we compare ourselves to 2019 before this started. our second quarter will be up double digits. we anticipate the year will be up 25% versus baseline from my standpoint, the industry is still healthy we think it will fuel growth well into the future >> what's the demo, who is buying the new bikes or atvs >> it kind of differs between category one of the things we've been really happy about is we're seeing more women come into the sport. we had a 98% increase in female riders buying our products we're also seeing very different demographics, hispanic, african-american and the age demographic is far younger, 40-year-olds,

30-year-olds coming in that's great because it feeds the future of the category we're bringing folks that we know will add to their fleet, repurchase vehicles down the way. that's an encouraging trend we've seen >> mike, thanks so much for joining us >> thanks, wilford shares into the company's earnings report, next. watch our listen to us live longel bk aouhe cnbc app. "csi bl"acin cple. this past year has felt like

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we're in the closing bell market zone cnbc's senior markets commentator mike santoli the s&p and dow are higher, the nasdaq in the red slightly we are set for a record close for the s&p, up ten basis points mike, essentially we are flat and treading water ahead of those big, big tech earnings >> and have been for a couple of weeks. there's been a lot of atmospheric conditions that say, okay, maybe it could be time for things to back off a little bit. it's not happened. there's been this benign rotation some defensive stocks did better now with yields going up you have more of an economic cyclical feel to what's happening below the surface. at times you've had these periods where essentially the market sort of just kind of

plays defense for a little while and holds together i still think that you have to be on alert for the fact that things have been pretty good and pretty easy for a long period of time that in itself doesn't say you want to bet against a dull but firm market. >> tom, you have been bullish pretty much throughout this bull market what is your level of enthusiasm right now for stocks after we have seen such a very strong run-up and we go into the heavy period of earnings >> our convictions quite high and our enthusiasm is high i think symptoms are about to have a rejuvenation of that face ripper rally for the month of april. stocks did stall because of covid cases where sort of stalling but i think we're now breaking to the downside. and then when we look at some of the earnings, especially something like ups today, i think it's really reminding us there's potentially a big demand surprise coming on top of the margin surprise, which means earnings could be doing significantly better and i think people just want to

be cyclically tilted if that's true >> let's hit ups as you said, tom, shares are soaring today, the company delivering blowout earnings. frank holland with the details for us frank? >> hey there, sara ups stock up more than 10% after reporting another strong quarter. two key metrics showing the real strength of this quarter the average revenue per package here in the u.s. increasing by 10%. ground revenue saw volumes increase by 15%, revenues increase by 27%. ups says small and medium size businesses were the driver ups declining to provide forward guidance but its shares and fedex shares still trading higher right now important to note this is the last quarter before pandemic comps. back over to you >> frank holland, thank you very much mike, i like what jim cramer said, he said this is totally underestimated, he said analysts were biased.

is this bullish for the economy or is this a transports thing? they have outperformed >> it can be both things obviously they're very geared toward domestic economy, pricing power, all those things working together earnings estimates have had to raise higher six months ago, this year's estimate was like $8 a share for earnings, it's now 9, probably has to go up after this quarter. that means that the valuation, which is looking pretty full on a historic basis, is probably less extreme than it appears the valuation gulf is looking a little wide relative to let's say 15, 20-year history. that in itself doesn't tell you it's about to reverse. >> tom, is this a sector and the transports as a whole that you think can continue to march on >> well, transports are an important group to watch because it's a barometer of the economy.

and i think it really is a leading sector when transports are doing well and the dow can confirm it, i would say that's kind of a risk on scenario. it really does affirm that investors need to be a lot more cyclical most of our clients are becoming defensively positioned, i think they think the market is topping. news like ups today is a reminder that cyclicals have a lot left >> phil blebeau >> a mixed reaction on wall street to the numbers from tesla. yes, the company reported better than expected earnings but that mixed reaction from analysts gives something for the bears and something for the bulls. for the bulls, they'll say, look, you had strong auto gross margins, better than expected. bears say, yeah, but you had a profit helped by ev tax credit sales as well as sale of some of the bitcoin position here is elon musk talking about what they're seeing in the market right now >> we have seen a real shift in

customer perception of electric vehicles and our demand is the best we've ever seen we're used to seeing a reduction in demand in the first quarter and we saw an increase in demand that exceeded the normal seasonal reduction in demand in q1 >> as you take a look at shares of tesla, one other note from the conference call, they've got two factories scheduled to open later this year. berlin, germany, austin, texas elon says they're both on schedule to open guys, back to you. >> thanks, phil lebeau tom lee, what does that tell you about investor positioning in tesla and also the broader kind of art complex style of stock at the moment >> it's a great question, because some of these, you know, hypergrowth stories, the beneficiaries of the stay at home and the names that people crowded into last year, you know, investors have full positions. so when you have great numbers

coming out of these companies and the stocks don't react, you have to wonder if the news is priced in. it doesn't mean the stocks go down but it means the capacity to surprise positively is diminished >> especially, mike, if the reason for the pre-tax profit, and people are blaming the reason for the selloff on this, it was driven that the emission credits, that's not the first time that's happened, we've seen that in other quarters and the stock has been rewarded for that, or sale of bitcoin, usually tesla gets credit for the bitcoin position >> they don't necessarily get credit for flipping bitcoin within a few months of having made a big decision to allocate some of the corporate treasury cash to a cryptocurrency i think there's a lot of quibbling around the makeup of the results. it's true, what elon musk said, in terms of there's not a usually seasonal falloff in terms of volumes sold. so yes, there was better car demand usually there is a first quarter pullback in terms of total sales. i just think in general, tesla's shares don't hold up well when the focus is on the details of

the business in the here and now. it really doesn't, ever. even when volumes are higher, it's usually been overanticipated by market already. and so that's why you have this little bit of a static around reporting and around when you have a ceo who doesn't really, you know, seem terribly compelling about the story on a conference call, seems maybe a little bored running a $700 billion company. i don't think that stuff works well but it doesn't change the trend in tesla, why people own and love it. >> a similar themed question to the one we were just discussing, do you think retail investor interest in the market has declined and does that matter for you? >> yeah, i mean, i think if you looked at some measures of retail activity, it does look like they're pausing i mean, i think they still have their brokerage accounts but their activity is diminished i think if stocks start to rise again and some of the small caps rally, retail investors get reengaged. maybe it's going to be a new

seasonal effect we have to take into account, retail investors might ignore their accounts for a couple of months >> a check on the markets, we're set for record close on the s&p 500, up by eight basis points. anything positive would be a record nasdaq down 2/10ths, dow up 1/10th, sara goldman sachs compiling a list of stocks that have outperformed the s&p 500 by 34 percentage points, including companies with direct exposure to bitcoin like tesla, coinbase, square, paypal the list also counties jpmorgan, ibm, nvidia, in the blockchain-exposed baskets tom, i know you're on board. do you like the blockchain ones, which you wouldn't necessarily think of as exposed to bitcoin i know ibm is working with blockchain with vaccine rollout and other interesting technology uses >> yeah, i went through that

list i would say it's an 80% complete list they did miss a few names which could be because of market cap but an unpopular opinion i would put forth is, i think some of these crypto equities will meaningfully outperform bitcoin. so if someone thinks bitcoin is going to go to 100,000 or 200,000, some of these crypto equities could rise exponential to that. so it wouldn't be linear to that change but, you know, maybe a function, a square function of that. >> tom, do you welcome, when we see these big spikes, big pullbacks, and bounces, again, in bitcoin, as it sort of flushes out some of the profit takers, or would you rather we get to a stage where it is a little bit more stable and the big volatility is behind it? >> it's very difficult to know what is the right level of volatility the volatility is actually quite useful in crypto and in bitcoin because it makes lending quite profitable

today, if you own bitcoin, you can lend it for almost 10% a year and generate cash and that volatility is also a function of, you know, participants using leverage, which i don't think is that healthy. but there is quite a lot of leverage used to acquire bitcoin. but the ultimate sort of reasons it might go to 100,000 or 500,000 or a million is the number of people actually, you know, creating wallets and using and trading bitcoin. that number still has a lot of room to grow so i think in a few years, volatility will drop there will be a lot less leverage used. and i think the lending, the cash flow yields will drop for now it actually creates a pretty healthy ecosystem that's attracting new money >> as we approach the close, anastasia, looking at a record close for the s&p 500 will only take anything positive to get there. we're expecting earnings from microsoft, google, alphabet, and other names after the bell how do you think that will

dictate, if at all, the direction for where stocks go and what do these names need to approve? >> yes, sara, a lot of important names are reporting but i'm not sure it's going to dictate the direction all that much. i think the direction for now in the markets is a little bit of a consolidation and sideways movement the reality is, a lot is being priced in this market. we're 41, 4200, and we're just getting close to a lot of the price targets out there. i don't think it's going to surprise investors all that much if google beats or microsoft beats or any of those other names. i think the reality is, we're approaching several potentially constraining factors for the market the first one of them is the earnings growth rate, great today, but fast forward a quarter or two and they'll be peaking and sequentially slowing down then we'll start worrying about tax increases and tapering and so on and so forth i think investors are definitely starting to keep that on their radar and they'll take the beats but at the same time they're

also consolidating some of the gains here >> tom, what do you make about certain commodities from copper to lumber to corn that continue toharder, can that continue >> it's worth watching i would include oil as well. part of it is there's some inflation signal there to me the bigger story is, i think there's a demand surprise that's been communicated through the commodity prices surging whether it's lumber for housing. i think oil is hinting there's going to be quite a big consumer recovery too so i actually think it's a bullish sign but if i was to put it into a strategy, i think it just means you've got to be more cyclically tilted i think investors are too focused on growth stocks and defenses right now >> what about the fed, mike? we're expecting an announcement tomorrow, and nobody expects any change in tone or policy from fed chair jay powell eventually he'll have to start to talk about tapering, isn't

he >> eventually, you would think so people trying to make a game out of figuring out when that talk starts officially, you're looking at the late summer or early fall by then you have to imagine a lot of the economic momentum will be in the data and not just in the outlooks. that's been the standard that powell has set out there so you would expect tomorrow it's going to be a very consistent message of, we don't see anything yet that yet represents substantial progress towards those pre-covid levels of economic performance that they're looking for. >> mike, internals, what are they telling you >> very evenly mixed the new york stock exchange, slightly in advantage to advancing stocks it's been close to 50/50 all day. we've been talking about commodities there. take a look at copper here, this is actually the copper exchange traded instrument which basically owns the metal you see up 27% on an interday basis. some of the commodities have come off a little bit. lumber turned a little bit red,

maybe some of the ags. copper has a lot going forward, cyclically, even a green energy story line behind it volatility index steady, with the market being flat, 17.5, not giving you much of a message the realized volatility is coming in, because of all the calm days we've had here that's something to watch, the spread between the vix and the actual volatility we're seeing, sara >> take a look at the dow, it is positive the session low today was down 111. we're higher by 27 points. thank mcdonald's, goldman sachs, honeywell and chevron, those are the biggest contributors to the game 3m is the biggest drag s&p 500 flat and higher, which means we are on track for a record close it was a pretty strong final hour of trade, as you can see from the intraday chart. narrow range today the best performerers are energy, financials, and

industrials. a cyclical tale to the market today. nasdaq will pull back a quarter of one percentage point, holding near its high. tesla, alphabet, paypal, intel, those are some of the drags there. the microsoft is higher ahead of earnings, amazon higher as well. small caps finished with a gain of 1/10th of a%. >> the dow just going bang on flat, exactly 0.00%. >> it's been a bang on flat day. >> we'll out if it's legitimately green or not. no record close to the s&p 500 and nasdaq, very slight declines we're still fractionally higher so far this week after gains yesterday for the s&p 500. and energy financials and industrials, the three sectors higher, all about a percent higher, then all of a sudden the other eight sectors were in the red. welcome to "closing bell." i'm wilford frost along with

sara eisen and mike santoli. we have a lot to come on this hour of the show big, big tech earnings coming any moment now alphabet and microsoft in particular visa and starbucks as well and of course don't forget mondelez, sara's favorite. >> i like oreos. >> we like it all. >> no favorite company >> so much to discuss. we'll break them all down. pinterest, texas instruments, also to come a&d. mondelez we'll be joining by the ceo of mondelez before his earnings call tomorrow lee is still with us as is anastasia a.moroso there's a bit of a tentative nature as we wait for numbers. of course markets fairly fully valued near those record highs >> the day was a push, and i think we've had this prolonged

hesitation it's neither necessarily bullish nor bearish. it shows you there's not a lot of selling pressure, even though the market is teed up at a high and a lot of folks, as you say, have full allocations. i wouldn't make much of it the treasury move today is somewhat interesting, it's been consolidating for a while. you have the 30-year close, 230 and ten year up 62, maybe that story will rebuild again in terms of the higher yield march. >> i feel like we have to talk about inflation. tom, no matter where you look this earnings season, if you're selling consumer products, you're talking about higher costs and passing along high pri prices we just talked in the last hour with polaris raising prices on atvs and motorcycles ultimately what's this all going to mean for earnings and the direction of the market? >> i think one of the things that's sort of part of that same conversation is how long this cycle is going to be

i think there's a consensus today that rate of growth is peaking this quarter or next quarter on gdp i think the inflation numbers you're talking about and some of the demand metrics, and look at the transports, are really kind of hinting this could be a much longer growth cycle. if that's true, inflation is really going to be less of a concern as much as thinking about it as a reflationary cycle and good for earnings. so yes, inflation is prevalent, but people shouldn't look at it as that's going to be the fed tightening it could be a sign that we have a long growth runway in front of us >> google, a really healthy beat looks like a monster beat. we'll dive into all of those, it will be interesting to see how we react in immediate reaction, a beat is leading to a share price jump for alphabet up a few percent. >> obviously the magnitude of

the beat i mentioned earlier, alphabet is the only of the faang stocks that has outpurcerformed the market, by a lot, actually clearly the tailwinds are there. it's one of those things where it's releveraged to the opening but also has the crazy profitable dynamics of one of these tech platforms you have lots of reasons to like it there we'll saywait to see what gets highlighted. >> deirdre boss has been digging through it >> big beat on the bottom line, eps coming in at $26.29, compares with a street estimate of $15.82. a massive beat there revenue, top line, also a beat, coming in at $55.3 billion versus 41.7 billion expected shares up 3.5% let me break down some of the

other revenues the street was expecting $4.1 billion, came in just a little shy that have, $4.05 billion youtube advertisements to that beat, $5.7 billion was expected. came in at $6.01 billion we'll continue to look through these numbers and we'll be getting on the phone with cfo ruth porat shortly and bring you more color >> deirdre bosa, thank you very much for that. the lion's share of that revenue beat is the bottom line that really stands out. it will be interesting to see how that shakes out. disappointing -- not disappointing but perhaps not as big a beat as you might expect, we'll see how that shakes out when we get amazon and microsoft, due any moment. either way the street likes this, up 3.9%. anastasia, what's your take on google >> i think it's an interesting name i can't comment specifically on the name but i will say there's two trends that are working to the market's advantage here in

this particular name you've got the reopening trade that is clearly gaining traction that's why you see some of the advertising numbers that are really quite good and accelerating but will on the second point is, cloud was always sort of expected to consolidate and slow down and kind of pause a little bit after we've seen the massive expansion we've seen in the first half of last year. however, i do think that as we progress through the year, you're going to see some of those cloud numbers pick back up that bodes well not just for google but microsoft and some of the other names. >> alphabet authorizing additional $50 billion in share repurchases a few days ago, maybe they buy back a lot more shares speaking of microsoft, earnings out for that company, josh lipton has the numbers >> sara, microsoft reporting q3 earnings per share of $1.95, versus expectations of $1.78 revenue $41.7 billion. segments here, $13.6 billion, an

increase of 15%. linkedin revenue increasing 25%. turning to intelligent cloud, $15.1 billion. that's an increase of 23%, driven by azure revenue growth of 50% in the quarter personal computing, $13 billion, an increase there of 19% windows oem revenue jumped 10% and xbox content and revenue services increasing. this conference call starts at 5:30 eastern back to you all. >> down 3.5%, mike, a beat on both lines, not as significant as google's beat, that might be a factor at play here. shares slipping 3 or 4%, it's been a fabulous performer. >> exactly, that is the distinction, just exactly what the magnitude of the beat would be required. it's been the pattern, by the way, for many companies across the board. it's not necessarily to have that positive response to pretty good beats

so i mean, look, both these companies clearly dominant, clearly on the -- you know, a very strong trajectory they all trade above 30 times forward earnings it's just kind of the going rate right now. right now i don't think either move, 4% up or down, i don't think that's changing that story very much. >> let's let mondelez. the global snack maker out with earnings looks like a beat on the bottom line, 77 cents and versus the estimate of about 69 cents this is the company that makes oreos and nabisco crackers and the revenues were a beat as well you can see the stock is spiking after hours, up 4.5% $7.24 billion versus $7 billion estimated. if you look overall, it looks like organic net revenue growth, a key tell on some of these consumer companies, 3.8% higher. volumes were up, pricing is higher north america, volumes were down but keep in mind, there weren't great expectations for this quarter because they were lacking a very, very, very strong quarter last year this time last year is when all

the stockups were happening, people were going to grocery stores and hoarding some of the snacks volumes were down in north america 2.8% they jumped, though, in latin america, pricing as well as in emerging markets came through, all helping mondelez in a few minutes we're talk to the ceo dirk van de put. clearly a good tell on the consumer, if you were worried about packaged food companies not seeing the momentum continue that they saw during the pandemic it looks like it's still pretty strong globally. >> it's carrying over here a little bit obviously a part of the market that investors aren't super acutely excited about at the moment just because obviously they had a strong 2020 and it's more of a cyclical year market obviously enough there for it to get back toward its highs. >> lots of big maneuvers

mondelez high, microsoft lower alphabet nicely high let's get to another one that's been crossing moments ago, texas instruments. bertha coombs has the numbers. >> texas instruments beating on both the top and bottom line, $1.85 and earnings per share street had been looking for $1.58. top line, $4.2 the billion, estimate had been for $4 billion. boosting its outlook above the street estimate, earnings for the second quarter will be above the estimate revenue fwguidelines, bracketing the street expectation gross margins beat at 65.2%. that was even sequentially higher from the fourth quarter operating margins also beating at 45.2% versus a 42.8% estimate analog revenues were up 5%, up

33% year over year no real commentary on what's going on in terms of its manufacturing, whether they had any impact from those texas storms earlier we'll hear more on that from the call stocks selling off a little bit here after those results back to you. >> bertha, thank you we've got starbucks earnings also out, let's get to courtney regan, looks like a mixed quarter. >> exactly right, sara for the earnings per share, 62 cents adjusted, better than the analyst consensus of 53. revenues weaker than expected at $6.67 billion, up 11%. street was looking for more, looking for revenues of $6.815 billion. they are raising their guidance, though, for both revenue and earnings, with the mid-points of both of those above the streets consensus. comparable sales, these are always numbers that we look at with many restaurants and

retailers. their global comps are up 15%. that sounds good but a bit shy of what the facts at estimate was. u.s. comps up 9%, driven by a 21% increase in average ticket but then offset by a 10% decline in transactions. remember, many of us are still not commuting to work. all of america is up 9%. china up 91%, driven by a 93% increase in transactions, offset by a 1% decline in average ticket again, that's same store sales one last key number for starbucks, the 90-day rewards members, up 19% to almost $23 million. shares down 2% back to you. >> thanks so much for that down 2%, where to go, so many big maneuvers after hours. tom, we want to bring you in, the 4% moves in opposite directions for microsoft down and google up. what do you make of that because some pretty outstanding

results even for microsoft which is down 4% >> all these companies are -- these are huge companies, producing big revenue growth and actually even beating street expectations but then the market reaction, which i agree with santoli, these are one-day reactions. the fire, ready, aim, not thesis-changing reactions. i think it is highlighting some of the cyclically -- sort of the cyclically sensitive tech like google, are showing not only positive surprise but i think it's reflecting the fact that this could surprise for many quarters because the economy is reopening. so in some ways, you know, crowded stocks have great numbers, and they're not reacting i think that's something we have to be mindful of but the positive reactions are pretty encouraging as well >> microsoft down almost 4% after hours. we've got to leave it there. a lot more earnings coverage coming your way. tom lee, anastasia amoroso, thank you for joining us up next, mondelez's ceo will

join us on whether they're passing on higher prices to consumers. plus we'll get analyst reaction to alphabet and microsoft coming up. back in just 90 seconds on "closing bell. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap!

so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. snack giant mondelez just out with earnings with a beat on the top and bottom lines shares up nicely after hours they were up about 4% or so, giving up some of the gains, still up 1.5%.

mondelez ceo dirk van de put joins us now dirk, you were lacking a very strong quarter this time last year talk about what you saw globally in terms of the appetite for snacks >> globally, obviously a very good quarter last year, we grew 6.1%. this quarter, we're growing 3.8% on top of that if i go around the world, what we saw was emerging markets coming back, which started last year in the first quarter to show some signs of the effect of covid. they're back in a big way, growing almost 10% we've seen very strong growth in china, in india, russia, brazil. so that was very encouraging the developed markets, europe and north america, lacking a very strong quarter last year. it was stronger than expected. we knew it was going to be a

tough quarter for them but overall, the growth was better than expected if i look at the different categories that we're in, we look over two years these days, because it doesn't make a lot of sense to just look at last year. so for instance, biscuits up 7.5% on average for year for the last two years chocolate up 6.5% on average for the last two years our meals and bencverages, the same, 7% the only one that's the same is gummy candy, down 16% over the two-year period. that is normal, because the consumer has a lot less mobility and those are typically consumed when you're on the go. so strong in emerging markets, which is great, and strong in our four categories. >> strong for cadbury, double digit growth there, that was all

wilfred, high in oreos, that was me 3 plus percent revenue growth is what you're putting out there. what data are you seeing from the consumer about whether we'll continue to see this appetite for snacks and for packaged food as people do go out to restaurants more and go out to bars more, especially as we've seen it happen in the u.s. >> yes, well, the first thing that we see, 30% of consumers still say they're snacking more than last year and last year we had the vast majority saying they were snacking more than the year before so they're still clearly snacking more. i think the reason for that is that, yes, we're going back to normal but it's clear also that for consumers, going back to normal is not going to be the same normal as before they see the whole thing that happens with covid as a major trigger for change in their

personal and in their business lives. they're going to go less to the office most companies will accept that people don't have to show up five days a week anymore they want to spend more time at home, which leads to more snacking and so i think going back to normal, yes, maybe, compared to last year. but it's not going to be like it was before, and that's going to help us. >> what do you project happening here with margins and on the cost side and what consumers will ultimately have to pay? we've seen so many price increases across the category. >> yes, every year we make an estimate of what we think the inflation will be. and what we're seeing this year is that the inflation we had planned for, it's going to be more, not a lot more, but it's going to be more than what we had originally foreseen. as we make our yearly plans, every year for us as a company, that includes price increases. it's not unique to this year and what we originally had

planned for this year was similar to other years of price increases, with this slight increase we're seeing in our inflation, we will have to increase prices more we've already done that in a majority of markets around the world. but it's not going to be an overwhelming price increase. it's going to be very manageable for us and very manageable for the consumer >> you mentioned india, what's late threat of with the big spike in crisis? >> obviously first of all my heart goes out to what's going on in india. we have a big business in india. to see what's going on is heartbreaking. and of course we as a company, we're trying to do whatever we can. and we've just committed to $2 million of aid for the health care workers and for medical equipment.

strangely enough, and probably understandable, our business was very strong in the first quarter and we are going to see the same thing in the second quarter. that's everything we're seeing at the moment. and the reason why that is, is that life goes on, consumers tend to go more to packaged goods, to goods that they feel certain about, they go to big brands that they trust, that they have confidence in the quality. so we believe that that is the underlying driver of very strong growth that we saw in the first quarter that will continue in the second quarter >> finally, just on m&a, we've seen you do a number of deals, who, chocolates, give and go, tate's, the cookie company are you continuing to shop here and will we see these smaller, faster growing demands continue to be scooped up like we saw pre-pandemic where they haven't weathered it as well as some of the bigger companies like

yourself >> yes, i think that will continue the reason is not necessarily that they didn't weather the crisis as well as the big companies. i think there's a certain moment that they feel that they might be better off partnering up with a stronger company or a bigger company that can give them a bigger help. and this is a good moment for that, to do that, i think. and so yes, i believe that is going to continue. and for us, it's a big part of our strategy we want to expand geographically, we want to enter into segments of our markets, we want to go into adjacencies. for us, yes, you can expect us to do that >> keep us posted. dirk van de put, we appreciate it visa earnings just out, kate rooney with those. kate >> hey there, sara, visa with a beat on the top and bottom line.

this is for its fiscal second quarter. let's start with earnings. a beat here by 11 cents. that came in at $1.38. net revenues, also a beat that was $5.7 billion, although it was down slightly year over year payments volume overall grew 11%. i want topoint you to cross border payment volume. that fell 11% year over year that still as international travel remains essentially at a st standstill their ceo says they're starting to see, quote, the beginning of the end when it comes to covid and the recovery is, quote, well under way in a number of key markets around the world the stock is moving slightly higher here after hours. >> thank you so much, kate pinterest also out julia boorstin has got that one. >> up 78% for the year earlier

quarter to $485 million. earnings of 11 cents per share beating expectations of 7 cents. pinterest's monthly active users growing a hair slower than anticipated. and the stock is plummeting down over 7%. that seems to be on commentary and guidance the company saying they're seeing a strong correlation between lockdowns and engagement on pinterest and they believe lockdowns probably pulled forward some user growth during 2020, particularly in the u.s. they say the easing of pandemic restrictions slowed monthly active user growth and lowered engagement, saying they saw good retention of newer users in the first quarter but they don't know how long this retention will last. pinterest is projecting 105% revenue growth in the second quarter. that's faster than the 95% anticipated. it's guiding for global monthly active users to grow in the mid-teens and u.s. monthly

affect the users to be flat on a year over year percentage basis, also saying operating expense growth will accelerate you see those shares down nearly 8% back over to you >> julia, thank you. amd earnings out leslie picker with those numbers. >> hey, sara, that's right, amd shares soaring in aftermarket trading, up 3.7% right now after a beat on the top and bottom lines and raising guidance for the full year. and revenue guidance for the quarter beating analysts' estimates as well. in terms of the numbers for the first quarter, eps bottom line, 52 cents, compares with 44% per share estimate top line, 3$3.45 billion, that' up 93% year over year. and beats the estimate of $3.2 billion that the street was expecting. now, in terms of q2 revenue guidance, they say that the quarter over quarter increase is expected to be given by growth

in their data center and gaming businesses and that guidance beating the estimate that wall street had as well gross margins, 46%, equal to that of a year ago in line with expectations and today's stock price performance comes after -- it helps pare back some of the recent performance, down 6.5% year to date going into earnings, although up 52% over the last year. also, worth comparing this one to texas instruments, another semiconductor company, which beat on both the top and bottom line but shares did slip in afterhours trading after that report came out, guys. back over you to >> leslie, thanks so much. up 4%, microsoft beat earnings expectations. the stock got hit and is down 3% alphabet moving in the opposite direction, up 4% a lot of big movers are lots of directions we'll eak an alsptoanyst to

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microsoft down 3% now on the back of reporting of quarterly results despite beating on both lines.

brent, why do you think it's declining? looks pretty good to me. >> it looked great across the board. i think it's just high expectations going in. they beat the top line, but the magnitude of the beat i think was relatively higher in terms of buy side expectations you look across azure, their office suite, you look at the infrastructure, you look at cash flow, all the metrics were right across the board really good and all we can go back to really is just the magnitude of the beat that's really the only thing that's waned on story. as a look at all the metrics, they had 38% commercial bookings growth, that's the highest metric we've seen in a long time you had an easy comp last year because of the pandemic. that's the highest number on a bookings number coming off an easier comp. i just go back to the only thing we can detect of all the metrics we went through is just really the magnitude of the top line

beat that was it. >> and brent, for those who were worried about the pace of cloud adoption and work from home falling off after the pandemic, satya nadella says curves aren't slowing down, they're accelerating how does this shape the forecast >> higher occurring revenue, multiyear commitments, amazon aws is the biggest cloud, aws is way out in front, but it's great for microsoft. there's an environment of adoption we continue to believe azure combined with office 365, teams, the rest of the power suite, it's a really tough lineup you have one of the best major teams in tech running the ship i'm not worried as a passenger on this plane. we've got to get a flight ahead.

ultimately the stock is up 18% year to date you have a big move, big expectations going in. so this seems more a mismatch on expectations relative to fundamentals f fundamentals are alive wallet, azure, all the metrics are really clean other than the top line magnitude of the beat >> he's a buyer. brent, thank you very much microsoft now down 3% less than that ahead, alphabet's blowout earnings beat and the big potential risk facing the search git,t'up.3afr uran is 4% tehos.

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cnbc news update with rahel solomon. >> hello, everyone the biden administration is offering up to $8.3 billion in loans for projects to enhance the nation's electric power grid the energy department says greenhouse gases can be reduced if the country is able to reliably move clean energy from where it's produced to where it's needed. a very unusual scene in mecca. one of the two most holy sights in islam heavy rain fall is causing flooding in the city and usually gets inches of rain each year. italy's pompeii archeological site is reopening. only a few italian tourists were there today with the luxury of not having to deal with the

usual crowds the city suffered from a volcanic eruption 2,000 years ago. the burning manifest value has been canceled for the second straight year. organizers had considered requiring proof of covid vaccination but decided the pandemic presents too many uncertainties. a lot of people will be bummed about that for sure. >> others will be pleased. >> touche. >> instagram will not be filled -- >> with scantily clad people >> rahel, thanks very much an earnings alert on amgen meg tirrell has that for us. >> a very uncharacteristic miss on both earnings and revenue for amgen. its first quarterly miss on those metrics in more than three years. adjusted eps, $3.70 versus $4.05 as the average analyst estimate.

revenue was $5.9 billion for the quarter versus $6.25 billion that the street was looking for. the company saying they felt the impacts of the pandemic, particularly in january and february as patients were not going in for care starting on new therapies. they say they do see that continuing in the second quarter and to a lesser extent in the second half of this year however, they did reaffirm their revenue and adjusted earnings forecast for the full year we're seeing amgen down more than 4%. >> another big one to discuss throughout the rest of the show. meg tirrell, thank you up next, much more on today's after-hours earnings alcluding what an alphabet anyst wants to do with the company's score. we're back in a couple

♪ ♪ ♪ when it comes to your financial health, 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. shares of alphabet jumping after a big earnings beat. deirdre bosa just spoke to ceo ruth porat deirdre? >> yes, i just got off the phone with her, sara as he mentioned that the additional $50 billion buyback was part of a continuation of their existing program she said the primary use of

capital is still to support long term growth. they're going to be investing it back into the business the pace of buybacks has increased over the last few years. on cloud i asked her if this would be another investment year, if they would start looking towards profitability. she says there's still a sizable opportunity so their approach hasn't changed some interesting comments on privacy. we haven't heard her comment on this on previous calls she says privacy is absolutely core to what we do, no question the privacy landscape is changing and regulation is rapidly evolving like regulators, she says they want to protect users. i asked her if they would be limiting third party cookies on android, youtube, search she said "not much more to add." that feeds into the idea, some critics say these are for show only and what are they really doing with privacy remember, they will be affected by apple's privacy changes she wouldn't comment on that

either >> no critics to the share price reaction, up 5%. john friedman from cfra research, and cnbc.com reporter jennifer elias john, these numbers, what in particular is driving the shares higher by 5% >> well, i mean, the out performance definitely blew away my estimates the beat was pretty substantial. the revenue growth over 30%, you know, getting, you know, obviously an easy compare from last year. but still just a really impressive comeback of digitizing, in search of digitizing as it takes share from traditional media but even more impressive i thought was the operating margin, hopping from 19 to 30% year over year and really sort of realizing, are they going to really show some leg and realize a lot of the inherent operating leverage in that business and there's a lot of it, because of the regulation issue.

and apparently they didn't have a problem with going all in. it's just a very intrinsically profitable business. that also was impress. >> up 4.7% after hours jennifer, what about you, as someone who writes about this company often, what were you hoping to learn? and what did you learn >> yeah, i think the big question was there was a high bar for alphabet this time around, the first quarter earnings and was google going to be the big beneficiary of this economic reopening. and what was that really going to look like and i think we have our answer i mean, the revenue rose 34%, huge beat on earnings. and i just think it seems like, you know, this growth that we started seeing peeking out in q4, 2020, is really becoming sustainable, at least from what we can tell. >> john, when you look at this advertising growth, how much of it is cyclical kind of post-covid bounceback versus

structural market share? >> i think it's got to be a lot of both. obviously there is the cyclical part but the outperformance was so strong that i have to believe that it was also -- that it was, you know, sort of part of a general trend. and you can see that by microsoft's results, apparently bing was up 19%. definitely up higher than i thought. higher growth that i thought obviously it says that everybody is benefiting, if you're in the digitizing game. obviously search is such a great business in the mix of advertising with, you know, high rois and improving rois. we should focus on the improving return on investment for the advertisers. i think it's driving a lot of it >> but jennifer, this company still faces significant regulatory risk, doesn't it, under a biden administration >> it does, but funny enough, it

doesn't seem to be affecting or concerning investors a lot of people that at least i've spoken to say it may result in a fine, years down the road, if there's any material effect on whether the company gets broken up or anything that regulators are talking about, it won't have been for the f foreseeable future having these congressional hearings, it feels like almost monthly, yeah, it doesn't seem to be a big concern for investors, at least not this year >> thank you for joining us. good to have you both on board reacting to google, john freeman and jennifer elias of cnbc.com up next, starbucks missing revenues, 2.3% lower after hours. we'll talk tano analyst who is bullish on the name right after the break. "closing bell" will be right back across multiple asset classes, actively managing investments

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just 15 minutes away from the starbucks earnings call set to begin at 5:00 p.m. eastern time the company missing on revenue estimates and global comp store shares, shares lower after hours. let's bring in nick, he's got a $124 price on the stock. the company did raise guidance, both on sales, margins, and earnings what's the problem >> i mean, ultimately this is not a surprise, that

international is a little bit weaker in light of the covid headwinds that have accelerated internationally. on the other hand, the raise guidance is probably the most telegraphed raise guidance quarter in the history of starbucks. so this was widely apartment at the end of the day, beating by 10%, raising the high end of the range by 10 cents, doesn't really do much investors want to see more of an uptick in terms of that high end of the guidance range for the year now, this is the management team, they're extremely conservative when it comes to guidance as the year goes on, it's very likely they'll continue to beat and numbers are going to continue to revise higher. >> what are the key things that you'll be listening to the call, due to start in ten minutes? >> we just need ammunition for

the outyear numbers. we need reasons to increase our estimates for next year, given where the share prices are we take place that will get it we think we're in a post-covid world where starbucks has better ability to mix single digit type growth in americas for the foreseeable be single digit growth much more so than we did precovid during periods at starbucks we have traded in the low 30s and so i anticipate that we're going to get some of that as the year progresses. that's what i will be watching more >> nick, thank you so much starbucks down a couple percent. don't miss tomorrow the ceo, kevin johnson, will be on "squawk on the street. they will be joining the show including dave calhoun >> a top arsenal, right? >> booked purely to talk ar

arsenal. don't want to miss it. i really and truly am very excited. whether or not they come up for one question or possibly two, i'll be studented in as much as ever more after this short break. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools

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hey, a quick news alphabet is bumping up 4.6% in off hours trading microsoft trading down 3.3%. beat on the top and bottom line, but clearly not beg enough pinterest down nearly 10% because of pouror yourself in te next month yum china is up because of same store sales growth and a better margin as well apple earnings are on deck wall street is anticipating a strong quarter here is your full wall street look ahead next

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now to our wall street look ahead. another huge day of earnings on deck we'll hear from boeing, apple, facebook, ford, qualcomm, ebay and more we take it live as always. kicks off the hour on "closing bell." mike, what do we watch for the earnings from the threat and into the fed meeting tomorrow. we didn't take a step back today. stocks didn't do much of anything, but they held near all-time highs >> yeah, they can take a step back and the big picture story when it comes to the reactions is the close whether or not in fact the bar was too high microsoft selling off a little will waeigh on the nasdaq but i doesn't say a lot about the overall trend. a i think a lot of that we have

been contending with for weeks go back to last summer when all of these big nasdaq companies came out and blew out earnings and stunned everyone with the power and the profitability in the middle of a pandemic it really resulted in a blowoff top. you don't have to make that. things will be good for awhile, we have accounted for a lot of it in the market and it's about incremental progress from here >> focus tomorrow turning to apple which in the course of this month made things a little harder for itself with a little rally after the pull back. >> so it is only up 1% this

year we got a new buy back from alphabet that will be part of this company >> we're out of time here today. you just missed out on a record lose, the dow up by one basis point. "closing bell" is now over for us, please start now tonight on "fast" we're all over this monster night for earningings. microsoft, visa, starbucks just some of the names on the move. many of the analyst calls just getting under way. wall to wall coverage all evening long we're standing by to break the news josh has the numbers for microsoft. >> remember going into this report microsoft was u