this is what we asked for. these are the flu-like symptoms that you get for a couple of days after you get the second shot but really it's going to be okay. >> but are you watching the chip stocks like everybody? if that's the bellwether it's not been a pretty week. >> maybe that's just the 101 fever. >> i hope so thanks, everybody. dom, thank you thanks, everyone, for watching "power lunch." jon, it's been a pleasure, that does it for us today "closing bell" starts now. >> no one ever asks for flu-like symptoms welcome to "the closing bell." i'm wilfred frost along with sara eisen stocks tumbling with the nasdaq seeing the brunt of the declines, down 2.3%. the dow is well off its lows, though, as the guys were just discussing, only down 0.3% as we stand. tech leading today sell-off with apple and the faang stocks all sharply lower pandemic winners are falling as well treasury secretary janet yellen making comments on the economy at a conference today saying, quote, it may be that interest

rates will have to rise somewhat to make sure our economy doesn't overheat, end quote. there is some green on the board. materials, financials, energy and industrials all high that's why the dow is falling less than the nasdaq as we stand. we are lower, sharply. 2.3% on the nasdaq, sara, with 59 minutes left in the session. >> all the tech daurlgz are down, amazon, alphabet, tesla. coming up today tony dwyer joins us with his take on today's tech sell-off where he's looking for opportunities in this market. plus a key read on the consumer we'll speak with the ceo of under armour on the back of today's strong earnings and guidance. more big earnings coming up after the bell, including lyft, t-mobile, zillow, activision and more let's focus in on the big stories we are watching. mike santoli tracking the volatile market session. meg tirrell with the latest on covid, including president

biden's comments this hour and hiemts fhighlights from an exclusive interview with the head of pfizer mike, start us off. >> pretty disorderly exit from tech today very determined selling and it's turned from what was an across the board week in the indexes to really much more of a messy rotation again, a familiar tone that we've seen for a while so the s&p, no net progress since mid-april. in fact we're now below where we were a couple of weeks ago so you've had this flattening out of the index many people, me included, saying right here, okay, we're a little overbought, we'll see if we go sideways and if you need a pullback not much has really happened to change that determination. you do see some funny things under the surface meaning bond yields down along with banks up and growth stocks leading to the downside something seems a little bit hinkie but here's the overall trending which is a scarcity in real stuff like commodities. and this is software, which led

the way last year. what was scarce last year, stable, profitable growth and that's what software had so you had this real split people are more interested in playing the industrial upturn as opposed to that steadiness of tech here's a similar story but somewhat different wrinkle this is interactive brokers. these are market makers largely in retail trades and the arka flagship etf these are much farther off their highs than we see right here ark holding up okay but one element of what's been happening is an apparent loss of interest in parts of the equity market that retail traders were enthusiastic about coming into the year maybe it's all going towards crypto or maybe it's just going toward real economic activity. but i do think that you have to keep an eye on this as a tell. what we don't know, guys, is whether this is effectively just the stealth under the surface

correction that some of the more kind of aggressive parts of the market are undergoing and the overall market kind of with stands it and can stay on trend. we'll have to see. >> one factor will be interest rates. i think we need to dissect secretary yellen's comments a little bit today because it's not clear whether she was talking about interest rates, the ones the fed sets or the market interest rates, number one. number two, it was a rare veering into fedland from a treasury secretary cabinet member who used to be the fed chair herself. what do you think? do you think it's cause for this tech sell-off? interestingly, treasury yields across the board of lower. >> yes, yields are lower the tech selling was right from the jump this morning so i don't think it really was triggered by janet yellen's comments. and it was a little bit vague. in other words, was it just kind of a pro forma statement saying, hey, yields, you never know if that's the way the market will take yields or if in fact the

fed at some point will have to put on the brakes and forcefully try to restrain the economy at some point what i do find interesting is you do see pretty pronounced moves toward banks, when in theory we were likely to have a comprehensive sell-off and didn't get it. >> currently down 2.2% on the nasdaq. let's turn to the coronavirus. president biden making comments about the country's vaccination efforts. this morning pfizer reported results, beating estimates raising guidance on strong vaccine sales. meg tirrell spoke with the ceo earlier and joins us with the key takeaways. meg. >> hey, wilf it was a big quarter for pfizer mainly driven by their covid-19 vaccine. forecasting $26 billion in sales in 2021. that's up from a forecast of $15 billion previously the company also laying out key milestones for the vaccine this year including filing for full

approval later this month and data for booster shots, data on pregnant women, data going down in kids of younger ages, down to ages 6 months toward the end of the year we had ask the ceo what difference it makes to get full approval of the vaccine versus emergency use authorization which is what they have now. here's what he said. >> we cannot just give it to employers or to cvs privately or to other vaccination sites or the physicians cannot use it in their practices. if you get full authorization, those channels are going to open >> he noted, though, that right now governments are still showing a lot of interest in the vaccine so that could be a key purchaser going forward even if they have full approval which would give them flexibility on how they sell the vaccine. in terms of president biden's comments, setting new goals for vaccinations in the u.s. just now.

aiming for july 4th, seeing 160 million people fully vaccinated by that date now, aiming for that goal, if we stayed on the same track that we're on now, which is about 1.3 to 1.4 million shots per day, we could actually get there by june 12th, according to our data analysis so this goal actually implies that we will still continue to see a slowing in the pace of vaccinations in the u.s. that we have already been seeing they want to see 70% of adults vaccinated with at least one shot by july 4th, guys a threshold at which point we might to see major impacts on hospitalization cases and deaths here in the country. guys, back to you. >> meg, i guess we got a glimpse this morning with pfizer not only with the success of their rollout and production of their vaccine but what they charge for it and the profit margin when you compare it to astrazeneca and j&j. >> yeah. well, astrazeneca and j&j are

doing this on a not-for-profit basis during the pandemic and so you're not seeing major numbers like you're seeing for pfizer. moderna reports on thursday and we expect to see an updated forecast for 2021 revenue as well so it is quite a different proposition. it will be interesting to see the way these companies use that money, what they invest it in and what they do with it. >> losing some of the gains, pfizer flat now. meg, thank you. we've got just about 42 minutes left of trading. the dow is currently lower by 97 points, only 97. the session lows were down about 347. the biggest drag, microsoft, salesforce and apple you've got gainers in there like united health care, j&j, some of the industrials like honeywell and caterpillar. we'll have much more on the market with the nasdaq down 2.3%. after the break, under armour getting hit but reporting strong earnings before the bell. we'll speak with ceo patrick

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welcome back under armour posting strong q1 earnings before the bell today beating on earnings and revenue and also raised it's full-year outlook. they are seeing solid growth in e-commerce, online sales growing by 69% shares popping earlier in the session but since then the stock has turned lower with the overall market joining us in an exclusive interview is under armour ceo patrick frisk. good to have you back on the show welcome, patrick. >> thank you, sara. >> so how much of this strong results, and it was impressive across categories and channels and geographies, how much of it was driven by reopening and stimulus, getting people back into stores? >> well, i think it's a mixed picture from across the world. if you look at the u.s. specifically, it certainly is a lot of stimulus money coming into the economy right now if you look across into -- all of the stores are pretty much

closed except the uk in china, it's pretty much the same picture the back half of 2020 going into 2021 so it's a combination of a consumer that has saved money and is willing to spend. our sector, the athletic performance sector which is buoyant right now. i think it's a combination of those things playing into what we're seeing going on with under armour to your point, it's holistic growth for us, which we're excited about. >> the margins are a really good story and the profitability that analysts and investors are excited about. how did you manage to do that at a time where supply chain issues have risen we've seen costs also rising affecting the entire sector, i'm sure, including you. how sustainable is that profitability? >> i think what's really encouraging for us is that we see our whole transformation journey here that has been going on for three years really starting to take hold. what you really see in 2021, if

we go back to 2019 for this brand specifically it's the quality of the revenue now coming through so we're seeing higher average prices we're seeing less promotions by the brand and the marketplace, less inventory we also reported inventory is down 9% during the first quarter. very strong revenue growth so it's a combination of that as well as what we call constrained demand in other words, we're exiting some what we feel is undifferentiated retail, especially in the u.s. we're tightening up our inventory buckets and delivering our go to market that's become more and more better through the last three, four quarters with better innovation, better product, better footwear, better apparel and the consumer is responding. >> that's what i wanted to ask is on the brand strength there were questions about under armour in the previous few quarters about where you fit in. nike and adidas were doing really well and both taking market share in the u.s.

how have you positioned the brand? who's your core customer, and how is that resonating >> well, we did a lot of work a few years back to understand the opportunity in athletic performance. we have always felt that we are an athletic performance brand. we wanted to double down on that and wanted to know if there was enough opportunity in that space. we clearly saw lots of opportunity in that space and that's why we doubled down on the performer which an athletic mindset. doing that well with beautiful product we believe is also going to translate in things down the road but at this point in time sticking to our strategy and being helped somewhat by the current trends in terms of athletic performance is certainly helping us but it is about athletic performance and making you better that's what under armour is all about. >> patrick, i wanted to ask just in broad terms what you thought about the european super league. i know you don't sponsor

tottenham hot spur anymore, but i guess a big picture question about whether the sport should ultimately always be for the fans in the first instance and whether we kind of moved away from that a little bit. >> we are of course looking at that and watching it at a distance our focus now of course has become very intense around our athletes, and that's really where we're focusing our attention. we also have some very important relationships with the leagues, especially here in the north american marketplace as well as some of our schools that we of course are heavily involved with but ultimately how that plays out, i think the future will tell but i do think that we're starting to see things evolve in the space. i'm not sure exactly where that's heading at this point in time underarmor is focused on supporting our athletes and making you better, that's why we're here ultimately at this point in time

we don't sponsor any of the leagues. >> so are you done, to that point, shedding some of your athlete sponsorships and some of the other team sponsorships that you did scale back on? i also notice you didn't re-sign misty copeland, which was huge for you. she was the center of one of the campaigns. >> yeah, in general we feel very good about where we are right now. we have certainly been scaling back a lot of our various investments another t-- over time we think that we're getting into a better balance as a matter of fact, that's one of the reasons why we're investing more into marketing in the back half of the year this year is because we feel confident about our ability to read and react now we've spent a lot of effort putting new tools in place, making sure we understand our return on marketing investment to such a degree now that we feel it's time to put money back into the top, driving brand

beyond what we thought going into the year, which is one of the consequences of this year being better than we had anticipated coming into it. >> you launched steph's golf line during the masters. how is it doing right now? >> it's going good we're so excited about the work we're doing with stephen we're continuing to develop some of the apparel that we're doing around the basketball initiative as well as the golf. >> i have to ask you because the news came out last night about this s.e.c. settlement for $9 million related to disclosure of pulling forward sales. that's the allegation of course. you didn't confirm or deny it. what can you tell us about how that happened and what's in place now to make sure that investors are not misled again >> well, first of all, we're happy to put that behind us at this point of course being a public

company, we're going to adhere to regulations as it relates to any sort of accounting practice going forward and we always have that's really all i have to say about it now you can imagine that it's good for us to have that behind us. being able to be focused on the business is really what we want to do and service our consumers going forward. >> finally just a ceo future of work kind of question, because it's been reported out there that you are overhauling the global headquarters there in baltimore and cutting capacity, as you envision this hybrid work model. how do you picture the future of work >> we think it's going to evolve we have done extensive work with our teammates here at under armour to understand their preferences going forward. we've done that in combination with how we see ourselves developing we've had a number of different cha campuses here in baltimore we want to consolidate into one place. so for us it's a combination of

working smarter, allowing you are teammates to have more flexibility, and also for us to drive more efficiencies and drive energy back into the brand. you know, as part of that rebuild we're also investing quite heavily into that campus making sure that we're building state-of-the-art human performance center that will enable us to figure out how to make athletes better going forward and that's very exciting for us here at under armour. >> keep us posted. thank you for joining us on earnings day >> thank you. we have 40 minutes left in the session. we are down 2.3% on the nasdaq only a quarter of a percent on the dow. after the break, stocks are up for two cryptocurrencies not named bitcoin that hit record highs today. we'll tell you wt's hihehabend t moves in ether and dogecoin, next

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major averages have recovered but the nasdaq is still the biggest loser of the bunch. the dow is only down 94 points but the nasdaq is getting hit by more than 2% it's a sea of red out there. all the tech names that you can think of if you look at the qqqs, apple, amazon, nvidia, the chips are getting hurt a few bright spots, adp, amgen if you're involved in tech or momentum or stay at home or any of those places that have been beloved by the market and are scared of higher interest rates, that's where the selling is happening. >> apart from two assets which

have been loved by the market, two cryptocurrencies in particular at record highs kate rooney breaks it down for us >> hey, wilf bitcoin has some new competition in crypto as other coins rally this week. ethereum jumping above $3,500 for the first time this morning. it's up more than 20% in the past week. bitcoin, meanwhile, is pretty much flat for the week it's down slightly today ethereum has quadrupled so far this year. ethereum is seen as a more useful version of bitcoin. it's often called digital oil while bitcoin is known as digital gold ethereum plays a key role of payments in the blockchain network powering most nfts and other decentralized apps annual lists tell me the cryptocurrency tends to benefit. but the true underdog of crypto

as always, dogecoin. it's the biggest winner today. it's the fourth largest cryptocurrency by market cap topping 56 cents a coin today. it's up 36% right now. this meme-inspired currency really started as a joke in 2013, but it's now being used in some real world scenarios. the oakland a's became the first mlb team to take doge as a payment following the dallas mavericks last week. >> why, kate, is ethereum used more as a payment than bitcoin. >> it's used in the blockchain network ethereum, which is used to build things like nft apps, decentralized apps so it's a programmable network, whereas bitcoin is seen as a store of value it's seen as slower, more expensive. ethereum is a more popular blockchain and ether happens to be the cryptocurrency that goes along with that. so the thought is if that

becomes more popular as we see nfts blow up, people are betting that is the sort of more useful version here. >> and one broad question, kate. what we saw for so long people argued bitcoin should hit this price because that would equate the same market cap as gold. when we start to see other cryptocurrencies do as well as this and cross those milestones that you just mentioned, is that as any way seen as negative for bitcoin because the argument that about that gold market cap would apply to crypto as a whole as opposed to one individual cryptocurrencies >> there are people who are maximalists when it comes to bitcoin and say that is the first, it's got the first mover and they're not moving out of it it is seen as sort of a rising tide you often see these two trade in tandem so it's interesting they're going in opposite directions today you don't have the same fundamental analysis that's popped up with bitcoin there are some new price targets

for ether but we haven'tseen a much technical analysis as this being the smaller version of bitcoin. >> not bad, quadrupling in 2021 so far kate rooney. kate, thanks. next, tony dwyer joins us with his take on today's volatile market action and whether he's buying the dip in tech. and later, katie stockton will zero in on the weakness in big tech she has a chart of apple that you don't want to miss. as we head to break, a check for you on bonds yields are down a bit, the 10-year yielding just below 1.60, at 1.59 despite the fact secretary yellen says we might need to see higher rates to prevent the economy from overheat k that certainly did not help the mood in tech we'll be right back. hey lily, i need a new wireless plan for my business,

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i irobot sinking the stock down 8.7%. speaking of chips, citi is out with a new note on semis the firm says a correction is coming and believe it will happen in the fourth quarter of this year. citi reiterating its buy ratings on micron and texas instruments. the stocks both down a little bit. broadly the chips and tech sectors are suffering as a whole today, sara. >> software, momentum. time now for a cnbc news update with rahel solomon. >> hi, sara. we now have video believed to show the motion when a section of the metro collapsed in mexico city plunging a train to the road below the death toll has risen and now stands at at least 24 people mexico's president says there will be a quick investigation into the cause of the accident and nothing should be hidden from the public. >> in detroit workers are going

door-to-door to tell them where to get free covid-19 shots president biden has set a goal of july 4th. normal temperatures across the u.s. are one degree hotter than they were 20 years ago. it's part of a report done every ten years by government meteorologists while some places are seeing cooler temperatures, 90% of the u.s. is warmer than it was ten years ago. rainfall is also shifting. the west is considerably drier i'll send it back to you. we have 28 minutes left in the session. we are down 2.3% in the nasdaq, which remains down not far from its lows, about 90 points or so from its session lows. the dow still outperforms, only down a quarter of 1% we are all over this volatile day on wall street when we come bk,ac we'll talk to

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straight day and on pace for its worst day since march 18 let's bring in tony dwyer. tony, great to see you as always thanks for jumping on with us today. big sell-off on the tech side on our hands. it kind of hides, though, some decent performance from some of the cyclical sectors what's your take on today's action >> well, it's really interesting, wilf. the stay-at-home stocks and secular growth stocks, sometime you'll have a rise in rates per janet yellen's commentary and that's going to negatively impact the multiples but typically when you're coming out in this point of the cycle after the first year, you typically worry there's not enough growth and the fed may slow it down even more if they tighten too quickly. now it's the opposite. there's a lot of growth and the market is scared the fed may not slow it down quickly enough, and that keeps changing the dynamic of these mega cap stocks >> and in terms of whether we

are due more of a pullback, if this is just one of the many 2% or 3% blips and then we'll continue marching higher, what are the key factors and warning signs you're looking out for >> i think we're in it i downgraded the market on april 13th on a short-term tactical basis and we called it a power-on stall if you think of an airplane at an air show, the airplane is screaming across the horizon and all of a sudden it pulls up and at some point it loses lift no matter how much power is applied. we've gone straight up over 80% since last march's low we've got this ascent that is really incredible. earnings are phenomenal. the growth outlook is terrific you can't look at the macro backdrop and say, wow, this is horrible it's what made us go on economic offense last may but some of that was pulled forward by the gains we've had so the only way that you can fix one of those stalls in an airplane is to come down a little bit and regain air speed for the next leg higher and

that's the analogy we're using again, you have a sustainable market drop, an economic drop, when you have a need for money and limited access to it we have the opposite here. we have an extraordinary amount of money availability and that creates economic activity. >> so what do you do then with the big cap tech names apple, blowout quarter last week the stock is down 5% over the last week. amazon, down 3.4% over the last week also another quarter that was hard to even find anything wrong with the fundamentals of these businesses so do you stay away on the prospect of higher rates or do you take this opportunity, this sell-off that we've now seen to get back in? >> if i told you last august that amazon and apple would be unchanged or even down a little bit, would you have believed that the market has been up like it's been up i don't think anybody would have but what we've seen is this idea that mega cap tech is the market

leadership has been correct since that time. they haven't moved since then, they have been in a flat line. katie will show you that they haven't done that much so to suggest, wow, it's down 5% today, everything is going down, this is a typical correction, i think. >> what do you think about sea seasonality factors, tony, and whether that will play a role as to your weighing up as to when to get bullish again >> wilf, i'm nota big seasonality guy. i know it's a popular thing. i think about how the market is going to act based on what it's done the market has gone straight up into may it's been on this grind higher so i think we're in a similar environment in 2004 and 2010 in march you went straight up 45%. you corrected into the

mid-summer you did the exact same thing more dramatically. 81% from the march '09 low into the early spring of 2010, a 15% corrections and you ramped from the correction period during the mid-summer so we're in this typical period where you have this massive ramp, you bring in a little fed fear it causes the leadership to waffle a little bit. we're early in an economic market cycle i want to attack the weakness. the problem is as you guys know, corrections only seem natural, normal and healthy until you're actually in one and then it feels like something different that's when we want to get more aggressive it's into a 5% to 10% pullback. >> so if we're in the early innings of a strong economic psych it and the federal reserve will have to raise rates eventually or start tapering, why is the 10-year at 1.58 it broke the low of 1.60 that's like a key level heading

south. >> think about my analogy of the plane. you're going straight up i don't think this is about janet yellen's comment i think that is maybe the catalyst for it today but you had a tired market to begin with it's been doing nothing the last two weeks. frustratingly so on both sides i can't tell you the number of times i feel like an idiot on an up and down day on the same day. i think i'm right or wrong and ultimately it's a grinding market that's pback and forth ad janet yell engave us an excuse to take a little profit we've been looking for. >> not sure she meant to do that but it's happening nonetheless tony dwyer. >> i don't know that she did i think she did. she was a fed chair. she knows exactly what she's doing. janet yellen is not some rookie out of washington. she's in a comment that goes public she knows exactly what she's doing in my opinion. >> tony dwyer. tony, thank you.

>> thank you, sara. lyft set to report earnings after the bell we'll tell you the key things to watch for in the market zone next we've got less than 20 minutes left of trading.

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zone mike santoli is here to break down crucial moments of the trading day and we've got paul hickey with us on the phone. stocks under pressure today but the dow now near a session high. the selling pressure of course has been led by tech that's why the dow is only down by 0.2 of 1% mike, i guess that's the standout surprise when you see the nasdaq down 2.3% there are some winners in there, including some 52-week highs earlier. >> sure. it's not been an across the board skimming away of value here there is an interesting dynamic going on as i said earlier, in the morning it looked as if this was going to be an excuse for just a little bit of a flurry of selling across the market. we haven't had a 1% down day in the s&p 500 in 31 trading sessions it's not a record but that's a pretty long stretch. something usually comes along to have a little bit of a setback like this.

it seems that -- the nasdaq composite not able to hold above the february high for more than a day. a lot of it just said, okay, i guess we own enough of this stuff. the incremental dollar wants to be exposed to the replace boom and not necessarily in these reliable very high quality growth stocks. so for now it looks like a messy rotation but as i said, it seems like it's almost a little bit of a determined unwind in those stocks when you see apple down 4% on no news after warren buffett said the biggest mistake he made was selling a little bit of it over the weekend, you have to say what's exactly motivating that level of pressure. >> what is, paul, in your view especially stark after the results that we saw from apple and amazon and alphabet in the last week or so. >> yeah, i think it's a little bit of resetting things here

we've had prior quarters where those mega cap techs have all reported in the same week. we actually got out of last week with the market being flat in prior quarters and earnings seasons where they all reported in the same quarter, the market was usually much weaker so those stocks were up a lot into earnings i think people are selling and it's not that uncommon just putting it in perspective here, we've had 25 record closing highs this year, which is about one in every three trading days so i think you've just got to -- one or two days doesn't make a trend. i think with some of these cons that we're seeing, such as selling on good news, we're heading into a relatively weaker time of year and the uncertainty regarding taxes, those are things to worry about. at the same time, there's plenty of positives out there that i think outweigh those

we have market breadth which is strong for the s&p 500 the nasdaq has been weak for a couple of weeks. but the covid trends are declining, the economy is doing better and then as far again, wilf, you were just mentioning we're near the highs of the day going into the close. when you see relative strength into the end of the trading session, that's a sign that people are comfortable holding equities. >> the dow is only down 70 points so we've continued to improve this hour. clouds and semi stocks are weighing heavily on the nasdaq today. josh lipton is here with more. >> the clou is under pressure today and it's down about 10% over the past three months that does vastly underperform the tech sector in the market. steve kinnig pins that pressure on stretch valuations after remarkable runs. every blemish, steve says, getting punished notable laggards, twilio, and

zoom over the past three months underperforming the tech sector in the broad sector. nvidia, qualcomm and skyworks being the laggards today. chips is one, paul, that you were watching as a cyclical play, market leadership group and the action in the last few sessions has not been great on that front what do you make of software and chips? would you be a buyer of either on this dip? >> first of all, as i've said many times in the past, semis are a great leading indicator for the broader market so this weakness should be paid attention to it's ironic that the semis on the rally ran out of steam right when talk of the semi shortage went mainstream. last sunday it was on "60 minutes" they were talking about the semi shortage. usually when those events are that much in the mainstream, it's been priced in. but, you know, the earnings season, every semi company

that's reported so far is down since it reported earnings even though the results have been great but i think one of the things you can look at with this sector and the cloud sector is they have seen some of the biggest gains. if tax policy is going to change, if capital gains taxes are going higher and it's not retroactive, these are names where investors will want to take profits because they have very big gains on those positions. so i think that's a short-term hit to the group what's really interesting, if you looked at the cloud stocks on a normal day down this much, you would think interest rates are higher but interest rates are lower. so it seems to be a different situation than the old -- than the old area, and i think it may be more pointing towards peopl raising -- taking gains while they can at the lower rates. >> mike, when people talk the smh being this new sort of transport as it were, the data has been fabulous, but clearly as paul is highlighting some profit taking going on regardless of what the

underlying economic data is. >> right or the new industrials even. i think people have made that point for sure you know, obviously massive multi-year run this doesn't really undo much of that but definitely in terms of the rhythms of where we are in the cycle and this idea that you have this bottleneck period and it's not necessarily the most smooth functioning supply chain at this point probably is weighing on things but also again, i think everyone is very interested in the earnings momentum in parts of the market that have not been going up for years on end. that to me is just what's kind of capturing the incremental marginal dollar in the market as opposed to the well-known really positive long-term stories in semis. >> the transports trying to close at another record high moving in the opposite direction compared to some of those tech names. frank holland breaks it down for us frank. >> they're near record highs for the second straight day. the index outperforming all

others trucking and logistic stocks leading the way. it surged 1700% higher year over year in april, just giving some indication of where the economy could ramp back up rail stocks also higher coming off a week where auto shipping is up 400% metals, chemicals, those are 30% higher year over year or more. tomorrow new rail numbers giving more insight into what's moving in the domestic supply chain back over to you. >> frank holland, thanks so much the dow is trying to go positive as we approach the close only down 0.1% paul hickey, some positive momentum behind some sectors, like the transports. >> yes, the transports, it's a record winning streak in the dow transports, 13 weeks but the rally is sort of narrowed a little bit in the -- in recent weeks.

since the start of the second quarter, only seven of the stocks in transports are down and six of them are airlines so the people mover stocks so to speak, the reopening plays of people moving about, that trade has sort of lost steam but as we're talking about in the prior segment and the underperformance of semis, money is going into where the incremental growth is and where there's the supply chain bottlenecks and moving things around, there's a lot of demand for goods and products and those companies moving stuff around are getting incremental dollars as opposed to tech and cloud stocks that were doing so well for so long. >> the specter of inflation is looming largely over stocks. kroger says consumers shifting to eating away from home coupled with rising costs from inflation could pressure margins dollar general also getting a downgrade at key bank. that firm says risks from fading stimulus boosts, difficult comps and inflationary pressures will

hurt as headwinds for that retailer rising inflation may not hit stocks equally advanced auto parts is upgraded from buy to sell they like it given its unique ability to pass on higher costs to consumers and that's the heart of the downgrade for grocers is they don't have much ability to pass on higher prices so they have to absorb it in the margins. how have those stocks acted? for so long they weren't given the benefit of higher sales because the market assumed the sales would fade as the economy reopened. >> they have taken a back seat for sure i don't think anyone would have expected them to be great performers after lapping the results of last year and not being really great inflation beneficiaries. some of the consumer products companies that feed into grocers certainly are, arguably can capture the price increases, but maybe not the retailers as much themselves i think more broadly speaking, at some point this whole idea of

runaway commodity costs to the upside, all of these short annages it morphs from being a really good sign of strong economic demand and recovery and it becomes a signal of disorder and this high friction phase we're in in this recovery. it's just unproductive kind of chasing of stuff going higher in price. there's going to be winners and losers on either side but we might be nearing a moment such as that. >> the dow down just one basis point and now down 3 basis points paul hickey, touch on the importance of the final hour of trading for us. >> yes we talked in the first quarter how at the end of the day we were seeing selling into the close. ever since the start of april, we've seen strong buying interests toward the last hour of trading where the s&p is typically closing near its highs of the day so, again, that's a sign when people are willing to hold stocks during periods when they

can't trade them, overnight session, that's a sign of comfort holding those positions. so i think that's a positive sign that people are willing to buy stocks into the close. buy the dip on a day like today and hold things overnight. >> lyft set to report its results after the bell deirdre bosa has a preview >> hey, wilf, lyft has been seen as a prime reopening trade as ride sharing bounces back but that thesis hitting a few snags. both lyft and uber are having driver shortages there's also the regulatory overhang it hasn't gone anywhere but sort of intensified with president biden's labor secretary's recent comments on gig worker status. lyft a few weeks ago said that it was on track to reach adjusted ebitda profitability by the third quarter so the street will likely want more details and to see more evidence of how they get there, so that's a metric to watch, adjusted ebitda

profitability. >> got it. we will look to you for those results when they come down. lyft is down a little more than 1% match, by the way, is down more than 7%. they also report after the bell. we've got just about two minutes to go in the trading day mike, what are you seeing in the market internals as the dow recovers >> so the headline dow is recovering below the surface still net negative in terms of breadth that often is the case you get morning sell-offs that are a little sharp and it's tough for market breadth to come back even if some of the big caps and high-priced stocks are doing well you see 1.4 billion to the upside and 2.4 billion to the downside of the new york stock exchange the damage localized on the nasdaq if you look at the net new highs versus lows on the day, 52-week highs and lows obviously still more highs than lows we are after all not too far from records in the indexes. but new lows above 100 is something noteworthy haven't seen that in a while

so it seems like some of that corrective activity started piling up at the feet of the nasdaq the volatility index popped above 21 for a little while today so we went up out of that downtrend we have been in. it's given up two points intraday from the high we got a little bit of that bump and now it's receding as the rotation in this market offers some support for the overall index as well. >> one minute left and the dow is positive, higher by 21 points that is the session high s&p 500 only down 0.7% nasdaq only down 1.9%. it was down about 410 points at the low, the nasdaq. it's now only down 270 of course tech, communication services, consumer discretionary still very much the worst performing sectors on the s&p, but we are well off the session lows indeed with the dow positive materials, financials, industrials, energy and health care are in positive territory on the s&p 500, so having five sectors there very much the best

moment of the day. it was only really two or three sectors for most of the session. oil is higher, gold is lower, the dollar is higher today and yields have slipped to 159 as the vix has jumped 6% or 7%. it's below 20, at 19.4 at the bell we are ending with gains for the dow of 13 points or so. the s&p still down by 0.7%, the nasdaq down 1.9% some big cap tech stocks down at the bottom of the pile. >> amazing to see the dow go positive in the final moment of trading. everything else closed down. welcome back to "closing bell. i'm sara eisen along with wilfred frost and mike santoli take a look at how we finished up the day on wall street. dow closed up. it was red all day long. we got as low as almost 350 down and finished higher 22 points. thank you, united health care, caterpillar, johnson & johnson, no thanks to salesforce who took

42 points off the dow. there's the s&p 500 down a little more than 0.6 of 1% it was a tale of value versus growth really. materials, financials and energy closed higher, so did industrials and health care. technology at the bottom of the pack the ark etf which a lot of people watch down 3.7% closing below its 200-day moving average. there's the nasdaq down on the day, by far the biggest loser. it was looking worse at some parts of the day but has pretty much been lower all day long focused on higher interest rate comments from treasury secretary january -- janet yellen. coming up on this hour, we've got much more on today's wild action and whether falling tech stocks are starting to look attractive when we are joined by katie stockton and her charts. plus, investors are now awaiting quarterly results from lyft, activision blizzard,

zillow we'll break those down when they are out. paul hickey is still with us, greg branch, managing partner at veritas financial group joins the conversation welcome, greg. first i'll send it to you, mike. what triggered the selling in tech and where it fits into the bigger picture. >> i don't know if we have a good answer of what triggered the selling except for the idea that very conspicuously the stocks couldn't do a lot with great earnings and we're out of things to look forward to specifically in tech right now also the general sentiment of this economy is in a brisk expansion right now. we can play it in various ways, even if we're off the peak growth rates it seems like if you had an interest in putting any fresh money in this market or just finding a new place for it, it's going to be in areas that are exposed to those trends. i don't know if i want to draw a story beyond that. even with yell en's comments, it happened at 11:00 a.m. the nasdaq was already down solidly before that.

i think it's much more a matter of a messy phase but the overall market has stalled out or broken stride a little bit we're in this period of just chop in the last couple of weeks. >> greg, do you think these little pullbacks will be just that, just little given all of the data and the earnings has been so positive >> yeah. look, i disagree with mike a little bit this is something that we've been waiting for and watching, for the fed to change its posture. it warned us that it would signal that and i think today constitutes that i think treasury secretary yellen was very intentional in what she said. i think the market did exactly what we would expect it to do when inflation worries come to the fore we saw sectors that benefit from rising yields, such as the financials and improved net interest margin environment. we saw commodities that can pass on the pricing and we saw tech suffer increasing interest rates are

more deleterious for growth and tech as we look out to the earnings streams that we're valuing, those earning streams have a lower ceiling as the money that is used to fuel that growth becomes more expensive and so i don't know if this is temporary, ifthis isgoing to be something that is going to persist. once we figure out if the inflation is going to be more acute than the original 2.2% or so that the fed said they were comfortable with or if it's going to be more persistent than a couple of months they said they were comfortable with, either way, if they are changing their posture, i expect that to weigh on the results over the next few months. >> so much there that we could chew on, but we've got to get to some earnings first. t-mobile just out. let's get to julia boorstin. >> t-mobile beating across the board reporting better than expected results in the top and bottom line earnings of 74 cents per share beating estimates of 57 cents per share

revenues $19.8 billion beating estimates of 18.9 billion. the company net additions 1.4 million new subscribers. estimates had been 1.2 million the company also raising its guidance for 2021 net additions to between 4.4 and 4.9 million, up from the prior guidance of between 4 and 4.7 million. also increasing guidance on merger synergies, saying merger synergies with sprint will be between 2.8 and 3.1 billion so overall rosy guidance for 2021 that stock now up over 3%. back over to you. >> julia, thank you. mike, julia mentioned up 3%. the market will like that added synergy cost savings as a result of the merger. >> yeah. they have been kind of thriving on that for a while. the market has loved the merger, as i think everyone anticipated if it got approval to create this kind of trilogopoly or

whatever you want to call it in the space. the stock has been hovering below its highs so we have a little bit of a perking up back towards those highs. this isn't new ground but a net positive reaction. >> let's get lyft's numbers. deirdre bosa has them for us. >> hey, wilf lyft shares are popping in the after hours after thecompany beat on both the top and bottom lines. revenue coming in at $609 million versus $559 million expected that is a decline of 46% year over year. so it is a recovery from q4, up 7% from the previous quarter losses much better than expected loss per share of 35 cents versus 53 cents expected a net loss of just under $400 million. ajdjusted ebitda, that continues to improve quarter over quarter and year over year better than the company had expected at $73 million, so getting closer to that adjusted ebitda

profitability. the company says it will reach in the third quarter i did catch up with the president and co-founder john zimmer on driver supply. he he said heightened demand is a good problem and they are starting to see supply improve he said they are not out of the covid winds just yet and they are emerging from the pandemic leaner and more efficient. guys, we will get guidance on the call, so we'll be listening and can bring you that when we get it that kicks off in about 20 minutes. >> dee, thanks for that guidance on the call but don't miss tomorrow's enter roo with john zimmer that will be on "squawk box. >> greg, what was your take? initially jumped, which did come after a negative session, but giving up some of that initial jump now and down a little bit in after hours. >> well, they're doing exactly what we want them to do, right they took the last couple of quarters to wring costs from the

business helping the operating leverage they forecast they can break even on ebitda with 80% to 85% of the volumes that they saw in 2019 march was a significant increase in volumes and so i think that steady is the course if they can achieve that ebitda break-even in third quarter, this is as pure a play on the recovery as we're going to see. >> 13.5 million users there. lyft shares are unchanged at the moment activision blizzard is higher by 3% after hours let's get to josh lipton with those numbers. >> sara, activision reporting a q1 eps as 81 cents versus expectations of 70 cents $2.7 billion of adjusted revenues against 1.8 billion for q2 they are looking for 70 cents. they also raise their outlook

for the year after that strong q1 performance looking for 370 on 8.6 billion ceo in a statement saying the employees continue to demonstrate what he calls exceptional performance under challenging circumstances. he said that relentless drive across our franchises produced strong first quarter results that were well ahead of expectations our continued overperformance he's saying enabling us to raise our outlook for the full year. this conference call kicks off at 4:30 eastern. >> paul hickey, what do you do with a stock like this better results these stocks, though, video games are well off their highs after they saw tremendous growth during covid-19 and people were inside. >> yeah. so it's a tough -- tough comps going forward. activision is a name we actually oe owned heading into this report but we were stopped out of it today on the decline so we unfortunately had it wrong and as you said it's higher

after hours. unfortunately, missing out on that, but just sticking to the discipline when you have a stop in place with any position, you have to respect those. so i think it's a great industry we've liked it, but we were forced out of it just -- we're willing to say we're wrong when the market tells us we're wrong. >> let's get to caesar's numbers. contessa has them for us. >> caesar's reporting $1.9 billion in revenue that includes income from discontinued properties that still have to be sold but still are earning money for the company. a loss of 2.06 a share adjusted. uncertain if that's comparable to analysts' estimates here's the key profitability metric ebitda, earnings before interest, taxes and all that, coming in at $548 million adjusted way above consensus of $428 million. i want to focus on las vegas

ebitda numbers 162 million versus estimates of 117 million. stupendous margins in las vegas, more than 32%, trouncing the profit margins of the nearest competitor on the strip. of course cost efficiency in these casinos has been a huge headline in the industry and then those regional casinos, really strong performance. 418 million versus the 306 million estimate we're hoping to get more insight about this acceleration in recovery from the ceo, tom reed, on the call. as you can see, the stock is now down a little more than 2% in extended trading this call starts in about an hour, guys. >> two words, operating efficiencies really helping out the margin picture there, thank you. zillow earnings also out, let's get to diana olick. >> a nice beat for zillow. eps is 44 cents a share versus estimates of 25 cents a share. the stock is up about 3% in after hours trading.

revenue at 1.22 billion versus estimates of 1.02 billion. part of this may have been because of some gains in their home division. that is the i buyers and then sell it. it accelerated much faster and may have pulled forward some of those gains and why q2 guidance is a bit lower than expected it came in at 1.23 to 1.28 billion versus estimates of 1.296 billion. that also may be because mortgage rates are rising and home sales are slowing zillow plans to hire 2,000 workers, up 40% from a year ago. part of that may be that i buyer program where they get more agents to buy and sell homes int, that's internet and technology was up 38% from a year ago and also traffic to mobile apps and websites in q1 up 19% year over year. so a nice beat for zillow.

a lot of that on that i buyer program. >> thanks for that, diana. greg, what's your take, a lot of earnings crossing tonight but also over the last week. are you concerned when you see big cap, tech and others pull back off the back of such good earnings >> i'm not to some extent we know why that's happening i and others have been keeping one eye focused on the inflation numbers and again that is more harmful to tech and growth but i'm not worried over the long term because what i think this earnings season has demonstrated is consensus remains way too conservative there is a powerful beat and raise, there's a powerful upgrade and upward revision cycle that will play out in the second half once we have a better handle on what those inflation numbers are going to be and how the fed is going to react. so short term will remain very volatile until we have some

specificity on that. but we're looking at back half numbers which are 60 and 50% in the cases of some sectors they're pre-covid levels i'm just looking at the opportunity for particular stories to deliver growth well above what consensus is expecting right now. >> paul hickey, greg branch, thanks for joining us. much appreciate it. >> thank you up next, lyft shares volatile after reporting a smaller than expected loss we'll ask an analyst what he wants to hear on the company's call which kicks off in just a few moments from now. plus mike santoli will have a look at what the surge of inflows into equity etfs so far this year could mean for the market we are back in 90 seconds here on "closing bell."

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shares of lyft initially popped, but they are now again up 2% or so. quarterly report beat wall street expectations, revenue down 36% year over year. joining us now is an analyst who has his take. >> results are good but we've been working this reopening trade and consensus was expecting a beat but numbers were good. the profitability was better than expected and that's certainly something that people are focused on as we go into 3q.

this is a company that took out 300 million or guided to 300 million of expenses out of the business last year and took out 360 million. so certainly the bold take for the company is they can come out of the pandemic a lot leaner and more profitable than before. >> which is in reference to deirdre's comments, what do you expect to hear on the call about the outlook? >> we'll get revenue guide and ebitda guide and so we're expecting revenue to double next quarter because we're comping pandemic lows and expecting ebitda to ramp as well interesting to see how driver incentives will impact that guide. uber will increase driver incentive by $250 million. lyft hasn't quantified that so looking for that commentary there. and if there's any commentary responding to marty walsh potentially looking at gig economy workers and potentially adding benefits there. our view on that is that that

was a back burner issue after prop 22. certainly his comments brought it back to the front burner and so we'll be looking to see what the companies have to say, but we think this is going to be a long time before we get any final conclusions here >> uber was down along with lyft during the normal session. which is your preference between the two? >> yeah, so we have a buy rating on uber, a $77 price target. we have a hold rating on lyft. really it's the market opportunity here we think mobility will come back in a similar market structure so that means a 70/30 split between uber and lyft. we're bullish on the potential for this uber pass or super app as they call it. they have a buy versus build strategy in delivery, and so we think that to uber eats adding alcohol, adding convenience they announced today partnering with go pub we certainly think is interesting and grocery as well with corner shop we're bullish on them to become

the amazon prime of anything that has an expiration date you need within an hour or need from a local vendor. >> bernie, thank you very much for joining us on lyft shares up 2.6% after hours. i want to bring you some headlines from the treasury secretary janet yellen this time she's speaking at a wall street journal ceo conference and it appears she's walking back a little bit what she said earlier at the atlantic conference which was front and center for investors today saying that she thinks that we might have to see higher interest rates to prevent overheating. now the treasury secretary says she does not anticipate that inflation will be a problem in the u.s. economy treasury secretary yellen also saying aside from some transitory increase in inflation in coming months, i don't think there's going to be an inflationary problem the fed has tools to address them, which is different than saying that we might need to see higher interest rates to prevent overheating. >> it seems that you were right because tony dwyer and i were saying earlier she wouldn't have

said anything earlier unless she meant it because she's so well trained. >> she's not the fed anymore. >> i know, but she's still well trained and an expert in this area. >> for sure. >> but this does seem like that if she's walking it back a bit that it was a bit of an error. it's not like it really pushed rates anywhere. >> also she doesn't have control over rates anymore and it's not so ground breaking in that it comes in the context of a debate about whether we are going to see inflation nobody knows f sure. if we see another $4 trillion of spending, what does that look like and how does the economy absorb it? we're also seeing a boom in the economy which could also lead to higher rates anyway, let's get back to mike santoli who has a closer look at the recent rising share of people investing in stocks, mike. >> for sure, sara. just a quick thing, she was responding to a question based on the premise for all this new potential infrastructure spending and what might happen down the road. in any case, yes, people are largely all in on the market

this is a cumulative 12-month flows into equity etfs, the main vehicles people are using for new money into the market. here we are, by far at a new record and kind of went vertical similar to what we did in late 2017 into 2018 so retail pretty much likes this market take a look at this separate set of data coming out of bank of america from their own client trends this is different types of clients. hedge funds, institutional clients that are not hedge funds and private client that is retail what you see is retail investors still net buyers over this period while hedge funds and institutions have been selling into it. now, you can say that's a negative if retail is picking up the slack from professional investors. however, it could also mean that positioning among the big money among professionals has backed off a little bit so maybe things aren't quite as vulnerable in terms of market levels, guys. >> and by percentage, what is the breakdown, much bigger despite the inflows into retail

investing in the last year or so, still heavily weighted to the institutional hedge funds? >> yes, i would say that's true. although institutions and hedge funds, if you're looking at flow data, they're always rebalancing. as the market goes up, the flow looks like they're negative but still have pretty high positions in that area. >> mike, thank you match earnings are out julia boorstin has numbers >> match beating on the top and bottom line with adjusted earnings of 57 cents per share versus 40 cents analysts had estimated. revenues of $668 million beating estimates of $651 million. the company's guidance for second quarter revenue also stronger than expected the company guiding to a range between 680 to 690 million, that's above the 678 million estimated. and the company saying they expect both tinder and non-tinder businesses to contribute growth of more than 20% in the second quarter. they talk about improving trends across the portfolio saying

they're pleased with the way 2021 has begun and are optimistic that the rest of the year will continue this momentum i've just got to tell you guys that they're signing off their letter to shareholders, looking forward to a summer of love. back over to you >> aren't we all julia, thank you julia booboorstin. tech stocks tanking on wall street today up next, kate katie stockton on whether she sees any kind of a turn-around. plus jessica alba's honest could price at any moment.

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welcome back a volatile day for the market. the dow rallying back to close higher by the end of the session but the nasdaq was down sharply, 1.9% having its worst day since march 18th let's bring in katie stockton. katie, great to see you, thanks for joining. let's start on the nasdaq chart and what you make of today's action but the recent action more broadly. >> we had already seen a loss of short-term momentum from the nasdaq 100 and its tech constituents, but just today we saw a breakdown from the consolidation phase that had

ensued so the breakdown was associated with gaps down for both the nasdaq 100 and a lot of its bigger constituents like google. that gap down is probably of a breakaway nature because it occurred after a good, strong up move so that suggests that this pullback will continue as mentioned, it does reflect a loss of short-term momentum. intermediate term momentum isn't great either and there is room for oversold territory we use support levels as a gauge of downside risk for the nasdaq 100 it's about 8%, maybe 9% below current levels looking at previous lows and highs and also the 200-day moving average a decline of that magnitude would be pretty significant and pretty painful, but we would see it as something that's corrective within the scope of the long term uptrending which had gotten very steep recently. >> 8% to 9% is certainly more than many are expecting i would think, katie you mentioned google

what's that chart looking like >> so google gapped down and this follows the gap up in response to earnings last week that gap down leaves what we call an island reversal pattern on the chart it's a very short-term pattern implications are only for the next couple of weeks or so but it reflects a loss of upside momentum, kind of a last-ditch effort to push higher. that then fails and leads to the closing of that earnings-driven gap. it does support for google, for alp alphabet that one the support is also about 7%, maybe 8% below current levels if you look at the chart, that would be a pullback to the breakout point we would view that as very healthy and something that's very likely to be met with buyers that feel like they missed that breakout. >> if you do want to shift, katie, now to the groups that do well cyclically when the economy does well, we saw strength in

materials, financials. which sectors look the best? >> with a pullback that persists like we suspect it might, naturally you'll probably see more defensive positioning we're in the camp that 10-year treasury yields will see a retest kind of like the tech sector but maybe not quite as dramatic and with that, you tend to see interest grow in areas like reits and utilities, consumer staples. i would expect it to be a bit more defensive and for that to be short lived i think the more cyclical sectors will be more neutral in relative strength terms so that means they're probably mixed with some opportunities both on the upside and downside there. you have to take it on a case-by-case basis. >> katie, are there any areas that look very vulnerable? 8% on the nasdaq 100 is very vulnerable but we talk about the teslas of this world and the ark complex is the support levels for them

further below the 8% pullback level? >> yeah. i would say generally speaking we're looking at the 200-day moving averages or march lows as initial support levels so we have to look at them individually we're looking at higher lows for the most part versus march because that's really the nature of the so-called retest that is under way. i would highlight the semiconductor sector i think everybody has noticed that it really lagged in april and with that underperformance, the ratios looking at things like the smhs versus the s&p 500, those ratios look pretty topee so it differentiates this weakness in terms of relative strength from past pullbacks it does suggest it will be worse. it doesn't mean we'll have another 8% to 9% downside but it will lead us to respect the short-term momentum which is to the downside. >> what about bitcoin itself the chart, is it a buy how correlated to you see it to

the overall market. >> it's certainly acting like a risk asset you see that on a day like today. it's in a world of its own right now. we think we can enter bitcoin at a lower price. the support there is around 42,000 the reason we're expecting some corrective price action there is primarily based on momentum gauges we saw in april a loss of intermeade i can't tell term momentum so the gauges that we track support another few weeks of corrective price action with hindsight so i think there's downside there. >> katie stockton, thanks for joining us. >> of course. education company cheg beating revenue estimates. coming up, the company's ceo and whether students returning to the classroom will hit the bottom line.

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welcome back it's time for a cnbc news update with shepard smith shep. >> here's the latest news at this hour. opening up los angeles and san francisco have now met the guidelines that let them ease many pandemic rules. they are the first urban areas in california to move into the least restrictive of the state's reopening plan california officials now aiming to return to business as usual on june the 15th two top senate democrats now want to spend $73 billion to electrify buses across the nation currently just 2% of the

country's 70,000 transit buses are zero emissions the majority leader chuck schumer and sherrod brown want money spent entirely on vehicles that are made in the usa. and the risk of tornados continues to be extreme over many big parts of the southeast. punishing rain and wind flooding streets and tearing down trees those storms have already claimed at least three lives across the south georgia has some of the worst of it all and still ahead of it, multiple counties there in the atlanta metro area under flash flood warnings right now we'll have the latest on the severe weather tonight on the news, 7:00 eastern, cnbc sara, back to you. >> shep, thank you. up next, the ceo of education technology company cheg on the outlook for remote learning as re sdes motuntreturn to school. the foo makes you boogie. (upbeat music)

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a quick check on this afternoon's biggest movers lyft shares getting a lift after the company reported a smaller than expected loss thanks to strong revenue per active rider. activision, t-mobile, match and zillow also rallying after each company beat wall street's top

and bottom estimates earnings beats leading to gains for all of those stocks. it did happen last week for the big cap tech but since then, we'll see if that applies to these in a week's time as well. as demand for remote learning in danger as more students return to the classroom. the ceo of chegg will weigh in next ♪ because things are coming back. ♪ making now, the time to move forward. ♪ at u.s. bank, our goal is getting you to where you really want to be. ♪ because side by side, there's no telling how far you'll go. ♪ u.s. bank. we'll get there together. ♪ the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100

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big winners from the remote learning trend, shares more than doubling from pandemic lows. there was a 64% increase in chegg subscribers. joining us now for a first on cnbc interview is dan rosenweig. welcome back, good to see you. >> thank you, sara how are you? >> all good. another impressive beat for you and double-digit growth across the board. how much is it related to covid, do you think >> a lot of people have asked the question about stay-at-home, not stay-at-home we're neither of those it doesn't matter if you take the class in person or if you went to campus and you're hybrid or stayed at home and took it online wherever you are physically doesn't affect our business and so we're seeing growth in all three of those categories. we looked at conversion, we looked at engagement, we looked at renewals. they were the same across all those categories, so it's not that covid helped us in the united states. covid did help us outside the united states, which was for the first time students went online

to find learning help and they discovered chegg and that growth has continued so we benefited from that. but we expect to see continued high levels of growth, high margin for years to come because the category is so big. >> so as kids go back to school, dan, and we have seen that, how are they using your products what types of tools and what types of skills? >> remember, we're for higher education so it's the same whether they're in-person, hybrid or offline, which is they come in to master their homework, to understand concepts, to get answers to questions, to be able to replace office hours, which they're unable to get, or labs which schools are no longer funding. even post covid they're not able to fund them the way they used to so our use just continues to grow the frequency with which people use us, the number of pages they consume. everything as been up and to the right. it's been a pretty spectacular business year as much as it's been a difficult personal year.

>> dan, if we were to jump forward three, five years when the world is back to normal and talking just about education, so college and below, what age group will be using learning from home the most versus the least in a normal world? >> that's a great question first of all, congratulations on your engagement. >> thank you very much >> so it depends i think there's going to be a boom in home schooling, which is not something that chegg does. we don't go to lower grades. i think you're going to find a lot of parents were frustrated by what they saw online for k through 12 and a lot of teachers were frustrated, to be honest with you, and they had a right to be. on higher education and high school, you think you'll see high school continue to be in person but hopefully technology will be used to help people meet them where they academically are because the classroom can't do that the classroom can only teach to a middle grounds higher ed is the one that's

going to see the most remote learning before the pandemic started, less than 30% of students said they wanted some form of online learning over the course of the pandemic it's now 75% of all students have said they want a hybrid learning environment, but stunningly 44% of all professors now agree they can teach as well online as offline. the holdouts are what you'd imagine which is the entrenched four-year college professors that don't really want anything to change. so it's going to be higher education and in developing countries where people can't get into physical locations. evening you're going to see a large transition, regardless of whether the biden impact of free community college happens or not, you're going to see a lot of community colleges go online because the professors struggle with the same thing the students do, which is too much time to get physically at a location for only 50 minutes of teaching. >> how is the international rollout going, dan, and where do you see the most opportunity

>> yeah, it's going spectacularly well we said we hope to be at a million subscribers and we think we're going to do better than that we're seeing success obviously anywhere that people need to learn s.t.e.m. and they teach it in english, we're seeing extraordinary growth so the obvious countries, australia, canada, but we see a lot in asia, turkey, saudi arabia, united arab emirates i mean it's really difficult to point out anything one over the other because they're all growing. and what that proves in our opinion is what we offer is a service, is actually relevant around the world because s.t.e.m. is s.t.e.m. we're not teaching politics or religion we're supporting those in math, business, science or computer science, which is really where the world has to go and ais going. >> did you see the new york city schools aren't going to have snow days anymore? it's going to be remote. >> that's what it should be. >> it just feels wrong.

>> i used to make a fortune because i shoveled driveways but my stepfather made me read books and do book reports so i'm not a big fan of snow days i went to school in upstate new york and they said the same thing, which is remote learning is something when students can't make it to the classroom, we don't have to miss days anymore. the idea is to get greater efficiency, greater personalization and greater relevance. chegg is just the beneficiary of this so we're seeing extraordinary growth and continue to feel momentum all over the world so it's great for our business, but honestly more importantly it's great for students, which is they can get personalized learning in the language and at the level that they can learn best at. >> dan rosenweig, thank you for joining us. >> thank you guys for having me. >> good to see you. up next, a seat at the table. california making some major strides in the fight to close the gender gap on corporate boards what could other states be doing to follow their lead nner newsom, first partner

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companies in california have nearly doubled the the number of women directors on their board since 2008 according to a new. >> reporter: blp --

report from california partners the first to mandate women on their boards last year governor newsom signed a law saying people from under represented communities on their board as women. now first partner of california khouw founder of the california project. c o-founder. thanks for joining us, the question why mandated? do you have proofs that the significant jumps you've seen comes directly as a result of the law. it's not happening broadly across states and companies, just because of societal pressure and pressure from institutional investors, going that way anyway. >> great question and thanks for having me. had so, look, the law is working and the proof is there, we've almost doubled the women on corporate boards about 98% of public boards in california have at least one woman on their board

by the end of the year if they are a board of six or more they will have three women if they're five they will have two, if they are four or less they'll have one. we're on path there with 418 companies that still have to comply about 563 seats to fill. and, you know, we're on that trajectory and it's really exciting what is an interesting and unfortunate statistic though is that, women of collar, 32 is that women of color 32% of california population, and latin 19% of the population and 1% of the board seats so we need more women on the boards to represent not just the population but the consumer base and knowing women are 85% of consumers in california it makes sense we'd want to bring the majority of the female population, latina women on to the corporate board. >> on the topic of equal pay, do

you feel the process of gathering the data and publishing it for companies does drive them to then make changes, act as a wake-up call or is a public naming and shaming that leads them to then take action. >> yeah, appreciate that, you know we haven't had to do any public naming and shaming. yes when it comes to whether it's equal pay or women's representation on corporate boards this is public information and one case the hand of the secretary of state the other the department of labor. it's really about better business practices we know when you have one woman on a corporate board that have you 26% stock performance growth relative to all-male boards. so we know that there is, you know, ga gains to be made with women and

same with the equal pay gap we're aiming to have the smallest gap in the nation but we still have work to do as we educate the public and make people aware the fact they're not compliant which we're all moving so quickly people aren't thinking about that when we give them steps to comply and show them this dirth of, especially when it comes to women's representation on public boards this breadth of talented women that are available in the pipelines to leadership it makes it so much easier. at calpartnersproject.org we have a resource hub to make it easy for those seeking board seats but also talented, diverse women to step up and advocate for them selves to be on those boards >> jennifer, have you heard from companies themselves as a result of these m mandates and whether, a, they're prepared for the next wave, and b, they're on board with the mandates, or they would

have done it anyway. i wonder as the exodus of companies from california a lot has to do with regulations, not necessarily saying this one, this is obviously very well-intentioned but the idea california has been a high tax state with a lot of rules and a lot of mandates. >> so, actually that's a myth. since june of 2020 we have increased the number of public companies in california by 10% and that's a fact. and we have incredible reserves. you know, future happens here first. i'm really proud of california and i wouldn't want to live anywhere else so that's just important to note. but again, we know the greater of the diversity of leadership the greatest productivity the better the bottom line, period so california really is leading in this respect and we are a plurality street with no majority latinos are almost 40% of the population so we're

modeling what i think will happen to the rest of the country which is leading with diversity and inclusion and equity at the front of our, you know, our business agendas. and again, you know, social, environmental and governance practices all do better with more women and more diverse folks in leadership just as risk management performs better with women in leadership there was a study that came out that said when there's a crisis the response is 28 days quicker when you have women on the board. so i'm really optimistic about what is happening in california and companies are seeing that. and you have some companies that have not just equitable representation of women on their boards but even a majority of womennd some of the companies doing really well are pager duty hp, and gap. >> i agree to that, jennifer newsome thanks for joining us, ogss us posted on the prre

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now to our wall street look ahead, key earnings to watch tomorrow, gm, hilton, booking

home holdings, etsy -- don't miss the federal reserve vice chair, they're talking, the fed meeting is over and they are clarifying their positions got to hear from the vice chair. >> mike, one comment on the market. >> wait for tomorrow's upgrades. >> there you go, that does it for "closing bell", "fast money" starts now. >> on the button i'm melissa lee this is "fast money" tonight's trader lineup guy adami, tim seymour, karen finerman -- steve will join us we hope tonight big names on the market getting whacked and how the traders are trading the sell off. plus lyft moving higher on the back of results, the call is under way, we'll bring the trade. later, social media stock slammed again today, is time to unfriend these names we're digging in first, did janet yellen just put th