people are going back to the doctor for routine procedures. >> tom pollen, thank you for your time. thank you for watching "power lunch. "closing bell" starts right now. >> thank you very much welcome to "the closing bell." i'm will frid frost along with sara eisen it's a tale of two markets the dow hitting another record intraday high but the nasdaq in jeopardy of turning in its first five-day losing streak since october. let's have a look at what is driving the action jobless claims better than expected at their lowest level since the pandemic began totals 498,000. tomorrow we'll get the jobs report tech stocks are pulling back we're seeing big losses on the back of earnings from uber, fastly, rocket, etsy and twilio. and we're keeping a close eye on vaccine makers following

news that there were significantly paired losses. 59 minutes left of the session, sara, the nasdaq in the red. >> we've got a big show coming your way in just a few minutes a first cnbc interview with verizon's ceo hans vestberg. we'll talk about the sale of aol and yahoo! plus jack lew joining us to talk about the biden administration's jobs plan and tax debate after president biden just said he'd like to see the corporate tax rate between 25% and 28%. a little clarification there a little lower than first put out. get ready for a flood of earnings square, roku, dropbox, peloton and many others. many of those names getting hit as momentum pulls back expedia down 4.3%. roku down 9% mike santoli is tracking another volatile day for the market.

michael yee is with us to talk about vaccine stocks on the back of yesterday's news surrounding the patent protection issue. mike, start us off. >> yes, it's calm on the surface, a little chaotic unde underneath there's been a pretty violent push/pull below the surface. a lot of speculative growth areas of the market, high value, low profit are still getting liquidated today it's not about the big cap faangs but you see the s&p. this looks very, very placid right here 4180, that area is starting to look pretty significant. we popped above there each day this week. we first got above there about three weeks ago so it's struggling in this area, but this trendstill seems to look okay it hasn't violated anything, hasn't shown much in the way of ongoing weakness because industrial, financial, consumer stocks still seem to look okay take a look at some of those

hard-hit groups. february 12th was the peak in all those types of more risk appetite plays and more emerging growth areas so this is the equal weight russell 1000 since mid-february it's up 7%. obviously a very good move in three months or so this work from home portfolio down 9%, obviously had been very strong before. all these areas very strong before this. really under assault those stocks and then the ipo index has backed off too so yes, we talk about faang weighing down the market earlier in the week. this is what faang looks like as a percentage of the overall s&p 500. the top five stocks. remember late last year we got to an all-time peak well above 20%, around 25% of the entire market that is back down hard from here you ask where would it settle out if we had this ongoing take from the few and give to the many who knows. that was the year 2000 peak.

if you go all the way back into the '70s it was much higher. but this is what's happening in aggregate people feel overinvested in some of the secular growth plays they want more immediate exposure we'll see whether this is culminating, this whole rotational move. it still does look like a disorderly rotation which is keeping the overall indexes intact for now. >> my question, mike, is why you mentioned the ark complex. why the sudden change in heart for some of these once beloved momentum names which have really collapsed? >> first of all, it's been going on for three months. i think the fact that they haven't been able to sustainably get a bid after that, really it's about how much they're up if you go back and look at a full year of arkk it's up a lot so it's giving back huge upside overshoot. and momentum stocks when they break stride and no longer

basically represent momentum in the market, it's tough to know exactly what buyers are going to step in because there's no way you're talking about valuation as a support for most of these things it's really mostly about stock price momentum and to a lesser degree top line pmomentum i think it's the preference of investors right now. we have a lot of exposure. we'd rather own stuff in the real world going up in price tomorrow and the day after that seems to be what explains a lot of these moves. >> arkk etf down 12% this week. moderna, biotech and pfizer off today, although off the lows of the session the biden administration supports waiving patent protections but angela merkel opposes that plan. let's bring in michael yee who covers the biotech sector and has a hold rating on moderna michael, does it make sense that

we have paired some of the losses in these share prices >> great to be here with you to answer your question, yes, i do think that it makes accsense. there was a lot of concern and a lot of headline news about the idea we would break patents for these vaccines as you said, angela merkel defending those patent rights for these vaccine companies. >> so what happens next? does her -- does the fact that she's opposed to it block the move from the u.s. in any way? if the u.s. still decides to share the patent, can other countries like india and china get on board with that and try to manufacture them? >> yeah, so it's more complicated than that from the standpoint that the wto organization, which is a group where this idea has been originated and is being pushed forward, as to have a substantial and i think unanimous vote to push that through. there was a hope that the united

states would have leverage and try to convince others to go their way, but obviously germany disagrees. by the way, bion tech a german company. we believe the u.s. is trying to save face or might be trying to negotiate lower prices either one of those things i think has an impact but they're not going to be sharing patents. i don't think that's going to be the case. >> michael, what if we did get to the point where the patents were waived. some people saying last night this would ruin innovation in the pharma space forever more because next time who would step up to the plate to do the innovation is that a process that you think is fair or do you think this is quite clearly a one-off circumstance if we got to that point that covid clearly is so important to the world as a whole and some of these companies have already made a lot of profit, while others have already given it away for free do you think the precedent would

be seen as a carved out one-off or it would ruin innovation forevermore? >> i think that's the key, very slippery slope at what point do you determine that now is a pandemic or next year is not a pandemic or the year after that is not a pandemic at what point do you say, well, we did it before, why not give it all away, open up the patents and everything is free we have so many companies behind moderna that is trying to come up with therapies, pills, injections to treat covid and have vaccines. at one point they'd say why would we invest billions of dollars and say why worry, in 2022 it will be free i do think it's a slippery slope. i do think we won't be talking about this in a month and there will be significant pushback and it's not going to happen. >> what does it say about the pharmacy's relationship with the biden administration and what could come from that >> i think the democrats will

continue to push forward various proposals about drug pricing legislation. pay attention to that. that's likely to come over the next month or so that's going to hit the headlines. i think once again we'll debate medicare price negotiation i'm very confident that is not going to be pushed forward nor passed, but there's going to be continued noise which will impact some of these stocks. and i do think, again, that the biden administration is trying to look good, save their face and obviously try to make sure they're doing their part. >> michael, thank you for joining us and for clarifying. after the break, the verizon ceo, hans vestberg joins us to talk about his company's push to close the digital divide you're watching "closing bell" on cnbc. the dow is up 135 points the nasdaq, though, still lower by half a percent.

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oh when june-- the 2021 rx 350. hit that guy! yes! wait i don't remember that! it's in season 4 - don't tell me you haven't seen it! i watched season 3. you won't stay caught up for long unless you keep watching the best shows from hulu, peacock, starz, showtime, and hbo max, all year long. just say "watchathon" into your voice remote to add a channel or streaming service and stay caught up. verizon announcing a new initiative to help bridge the

digital divide beginning may 12th, customers that meet the fcc's income based requirements will receive monthly discounts up to $75 per month on the company's broadband serves also announcing a training initiative with the national 4-h council to bring digital skills to rural communities joining us to talk about this and much more is verizon chairman and ceo hans vestberg welcome back to the show, hans good to see you. >> great to be here. thank you for having me. >> so covid-19 has really shined a light on this digital divide, the haves and have nots when it comes to online learning for broadband and online work, remote work. how big is that gap in america >> i think what has happened is we'll probably leap from five to seven years when it comes to online work and digital usage in the country, and of course that means that we open up a gap. not everyone has a broadband

service. i usually tend to say mobility, broadband and cloud services is the 21st century infrastructure. we see it in this situation with the pandemic that is so important to have in order to actually do your work or education or staying connected with your friends. so that's why we have a big gap but we have an opportunity to bridge that gap and see wherever you live and come from you have the same chances everybody has. >> you're targeting rural communities where a lot of these problems lie is it affordability or an access problem for obtaining broadband. >> number one is access, th there'there' affordability and finally application. on accessibility, we're going to build even more out in the rural areas and we commit a pl dollars for building in the most rural areas. then when it comes to affordability, you mentioned

yourself in the start of this program and for low income families, we'll help and have offerings for low income families and then finally we are working with education as you also mentioned, we are doing training for technology, but we are also doing our verizon innovative learning, which is now in 400 schools, which is broadband devices and also s.t.e.m. education. so all in all this is over a five-year time period in investment and more than $3 billion u.s. dollars we think we can support all three because all three needs to be addressed to breach the divide in the united states and also in the rest of the world actually. >> it's something, hans, that the administration does want to target in its latest infrastructure plan. do they go far enough toward addressing this issue? >> i think where we come from, our industry, we think the most sensitive areas is around affordability and application. and there we really need the

federal government to be part of it and see that low income families can access good broadband services and that the same goes for the applications that there are telehealth applications, there are remote learning educations that are in the cloud or can be delivered remotely they are parts we think the federal government can do. you've seen how all the networks were up during the united states during the covid in other countries of the world i think all carriers are committed to that. we are very committed to that and right now where we can do fixed wire access in rural areas is going much faster and we can cover the last people in this country that is not connected. >> switching focus, hans, why is now the right time to sell out

of aol and yahoo!? >> we have been working for two and a half nears since i started, part was to get users on our owned and operated content bike yahoo! finance, yahoo! sports. the team has done tremendously over the last two quarters we have been growing double digits on our business and so the time was right because now you need to start leveraging that and invest even more in our business right now with verizon, we feel like our main course is seeing that we serve those customer well and now we're going to be part owner of the new entity but clearly somebody else is going to take the next step for them i think it's a great future for them and we are built to be a very strong business going forward. >> do you accept when some people say that telco companies like yourself aren't the best

managers, owners, of content created businesses or is this just a moment in time where you would rather be totally focused on delivering the pipes, as it were, than having to confusemul? >> there might be carriers can can do it great. i think we want to prioritize our capital so it's more a thing about us, not that others are doing wrong. but in our strategy, in our core strength in the company, we are leveraging those and doubling down on those in order for us to have this growth that we now have committed to to our shareholders 2% this year, 3% over time, 4% growth that's where we want to focus our capital. >> so let's talk about your core focus. obviously the wireless business. it was coming off of a tough

quarter. we've seen at&t be very aggressive on the promotional front, hans. you've held your ground so far do you feel that you're going to have to do more promotions, free handsets and the like, and if so, how do you avoid a price war that we've had amid the big three? >> i think we're seeing a very competitive market for wireless for many, many years we have a long-term view on when we are doing promos that that should be growth for us so we will be aggressive when we need to be. right now we have been following the market to see what is happening and so coming out for the first quarter, our service revenue continues to grow because our customers, they are migrating from unlimiteds, unlimited premium and that's why we take the journey on five years. we feel that we have a very good structure to both grow as a company but also give great value for our customers.

then we have deals with visa plus, and music. customers will stay with us but also to migrate. >> hans, i know you're committed in both areas, the relative importance of wireless and fixed line communication, do you think there is a shift going on such that in the next five to ten years wireless will be far more important than perhaps it was five or ten years ago? >> i definitely -- first of all, when i talk about fixed network, they are always part of the wireless offering as well. i don't do a distinction but from the edge of the network, we're going to see much more wireless connectivity because with the mobile edge computer with 5g, for example, all the iot devices that are starting to grow, there will be much more wireless connectivity at the edge of the network than we had before.

but again we build a lot of fiber ourself because that is the backbone of the network in order to transport all the data we have in the network. >> how do you view your competitive position on 5g there is a broad perception that t-mobile has stronger 5g assets with spectrum and the like. >> i feel like we have clearly the best assets in the market. we have the wire which nobody else has we have just acquired spectrum for $53 billion which will make us having the strongest position in the market on spectrum. we have always had the best network and most reliable network and always had the least spectrum in the market and now we'll have the most spectrum i feel really good about our position and how we allocate capital and how we continue to get our customers the best network and best brand and great offerings. >> my other question on 5g obviously there's been a ton of hype and you guys have put a lot of your strategy behind this,

how do you maky off of 5g? is it more profitable for you? are you able to charge more for it what are the economics of it >> in our case we build the fiber network once and have three different businesses on it so a five-year mobility for consumer and businesses where you have a five-year phone in your hands and that's the migration path we're using i'm going to use fixed access to the home so that gets broadband it's just growing by year end -- our broadband will cover 50 million households but that's only one network. the third one is what we call five-year mobile edge compute. that's where we bring the cloud infrastructure to the edge of the network and offering enterprise services with low latency, and that we're doing together with amazon and their cloud solution

we do it also with microsoft so i have three business cases and one network. i basically have the mobility case only then >> hans, great to see you. thanks for joining us. >> thank you very much still ahead here on "closing bell" shares of norwegian cruise lines are sinking after earnings and after management says a resumption of sailing in july might not be possible. we'll speak with ceo frank del rio about that news in just a little bit

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still ahead, former treasury secretary jack lew joins us to talk about the biden administration's jobs plan an his thoughts on how to pay for it. plus twilio's shares down sharply, getting hit as cloud stocks retreat ceo jeff lawson will join us to discuss. as we head to break, yields are moving lower the 10-year back down to 1.57, a little lower than that as far as data today, jobless claims came in better than expected, below 500,000 for the first time since the pandemic began ahead of an all-important jobs report tomorrow 1.56 is your 10-year yield we'll be right back.

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the s.e.c. chairman testifying in congress discussing the gamification of trading and social media hype

around popular stocks. kate rooney has a look at some new data surrounding the millenial trading boom hi, kate. >> hey, wilf a lot of attention on robinhood during that hearing today but it's not the only game in town for younger investors. turns out fidelity is gaining a bigger slice of that demographic. this week fidelity reporting 4.1 million new accounts in the first quarter. that was up nearly 160% from a year earlier and of those accounts, more than a quarter were opened by people 35 or younger. that demographic for fidelity grew more than 220% from last year it's one of a few firms benefitting from the rising tide of new traders this year analysts i talked to said gamestop and this whole meme stock phenomenon have brought more attention to investing. charles schwab brought in 3.2 million new quarters and robinhood doesn't publish its user numbers but they estimate the startup has brought in at

least 6 million new users this year robinhood is expected to go public in the next couple of months more competition for that younger demographic could pressure its core trading business guys, back to you. >> kate rooney kate, thank you. time for a cnbc news update with rahel solomon. >> hello, everyone here's what's happening at this hour new census data shows people left cities during the pandemic largely to be closer to family many people leaving cities were not motivated by jobs, weather or biospheres. in georgia college athletes will be able to make money off their fame the governor has signed a bill allowing them to be paid for their name, image and likeness. in florida, more than 30 fist responders were needed to get a horse out of a muddy lake. you can see the horse there and all of the first responders. they used a harness and a lot of elbow grease to get it back onshore. officials say that the horse was

not injured. no word on how exactly the horse got into that lake but clearly it took quite a few people to make that happen i'll send it back to you guys. >> that is some video. that's. 29 minutes left to go before the bell here's where we stand in the markets. the dow is on track for a record closing high it's up 192 points i say that because it's such a difference in some of the tech stocks and momentum names. the nasdaq is down 0.2 of a percent. still lower. three-quarters of a percent lower for small caps. president biden making new comments about his jobs plan and the corporate tax rate up next, former treasury secretary jack lew will weigh in on that and more. and may is pacific islander and asian american month we'll spotlight some of our own anchors and reporters. here's deirdre bosa. >> my mom grew up in a small fishing village in taiwan. she moved to canada at the age of 16 with no english, no job

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the u.s. labor market showing signs of improvement the unemployment number below 500,000. president biden said a corporate tax rate of 25% to 28% would raise hundreds of billions of dollars. joining us now an exclusive interview, former treasury secretary jack lew mr. secretary, very good afternoon to you thanks for joining us. >> good to be with you again >> i wanted to start with a big picture question about some of these tax increases that are being talked about at the moment do you think the primary reason for those is to redistribute wealth for fairness reasons or

is it to pay for the spending? have we not learned in recent years that in fact spending doesn't need to be necessarily paid for by taxation >> so i think there's a fundamental question of how much of this new spending should be paid for you know, i was very much an advocate when we were in the crisis that it should be done through deficit financing. but i must say i am still one who believes that as we emerge from the crisis, it is important to pay for the things we think it's important to invest in. whether the investment is in the physical infrastructure, the human capital, or dealing with some of the other issues that are in these plans, i think it's appropriate to pay for them. i think the sources of revenue fix things in our tax system that are unfair and will

actually address some of the questions that have become so paramount about inequality of distribution of income and wealth, but i think it's also a question of how important it is to pay for these initiatives if the appetite for the new programs is great enough, it will stimulate more interest in finding the sources of revenue to cover those costs. >> when you consider the topic of corporate tax rates, which we just mentioned looking like it might be a little lower than people thought, 25% to 28%, do you think that will come into play at the same time as these international efforts to establish a global minimum corporate tax rate and if that doesn't happen, would you be more reticent about hiking the u.s. rate >> so i think if you look at where the corporate tax rate was set in 2017, when it was at 21%, it was way below what anyone in the business community had actually thought the goal was

for the years before that when there was much discussion and even negotiation about business tax reform you know, the goal when i was at treasury for the business community was to get to 25%. so in getting from 21% to 25% is very low hanging fruit i believed at the time that i was at treasury and i believe now that 28% would not be an uncompetitive rate the question is, is it important to raise the revenue for the very important investments that they would finance in terms of the international situation, the administration is proposing a number of things that i think make the 28% rate one that would work. they're proposing taking the minimum tax and instead of having it apply on an average basis, have it apply country by country. they're very actively working in the international community to get other countries to come along. and i think the combined effect of these efforts would be to

have the global standard rise and the u.s. would be at an appropriate place in it. i think we're just the beginning of a discussion. i don't know where the end point is, but i think the whole package does work and i certainly hope that there's ambition in getting enough revenue from it to make a significant difference. >> well, there's a question of what's realistic as far as passing all of this, mr. secretary, but also what could harm the economy which, yes, is booming right now, but is also fragile and vulnerable and we still have 8.4 million americans out of jobs. so raising the corporate tax rates, the capital gains tax, the individual tax rate, talking about a global tax framework, all of that, net-net don't you think that could hurt growth and job prospects? >> first of all, while it might be an interesting discussion about what the effect of everything combined would be, it is the beginning of a process.

ike it's unlikely that you see everything enacted so it's something of a hypothetical question that i don't think one needs to cross i think each of the provisions is defensible on its own i don't think that higher tax rates stop either businesses or individuals from wanting to have higher incomes and more earnings it does sometimes if not structured correctly have the risk of creating some distortions in terms of where capital goes i think care needs to be exercised in terms of how provisions are structured to avoid that but i don't think that a higher capital gains tax rate that approached parity with earned income would discourage either individuals or businesses from wanting to have investments be profitable. >> mr. secretary, i wanted to ask you in a big picture way about this discussion point that's emerged in the last 24

hours about potentially waiving the patent protection to various covid vaccines and whether if we saw that, it could be a genuine threat to the idea of american capitalism, innovation and the sn incentive s to come and start your company here not to mention how it would r & d with the big pharma companies what's your take on that >> i think the pharma industry and the government research that was behind the development of these vaccines demonstrates that the united states is still the leader in terms of innovation in these very important areas, and that's important and it should remain that way for our competitiveness and our national security i think we're at a moment where the pandemic is a global problem, it's not just a problem within the borders of any one country. i think there's a lot of things that need to happen for the solution globally to involve the

united states as a leader. i think this is a step that's a part of that alone will it solve the entire problem? no, but there are other things in the works and this will be part of that the world will long remember who was there to help and who wasn't i think the u.s. role in the world, it matters in terms of our economy and our national security this is an unusual circumstance, and i think if you look at the source of the intellectual property, it's from multiple sources. government research was a big part of it private sector research and development was a part of it and there is considerable profitability in making these products i'm not against that in this case when you're talking about offering to help the poorest countries of the world to have a vaccine available, i'm not an expert on the efficacy of it, but if it will help, i think it's a good idea. >> mr. secretary, always a

pleasure thanks for joining us. >> good to be with you. >> treasury secretary jack lew. we are gearing up for a big hour of earnings roku, peloton, amc, square and many more. we'll tell you the key things to watch next in the market zone. tomorrow don't miss our exclusive with cathie wood the ark etf is down 30% from its recent highs it's down 11% this wk.ee big interview tomorrow in the first hour of "closing bell. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $800 off our latest 5g smartphones.

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less than 13 minutes left in the trading day. we are now in the "closing bell" market zone, commercial-free coverage of all the action going into the close mike santoli here to break down these crucial moments of the trading day as always. today we've got hightower chief investment strategist stephanie link as well major averages continuing to diverge. the dow is on track for a record close. the nasdaq is down again, which would make it its longest losing streak since back in october of last year. things have improved, mike, over the course of the last hour. every sector is now positive in the s&p except for health care and the nasdaq is almost at the flat line. any reason >> i wouldn't say there's a specific reason. we get a jobs number friday morning. the market probably doesn't want to lean too far in one direction or another also just the flush in some of the small cap index, actually still down, and some of those emerging areas and biotechs has been pretty extreme.

i think the market is bent but not broken as a whole here and today's even at the worst was not at the week's low. so we're talking about narrow ranges at the index level but really a lot of churn underneath. >> steph, i know you call it silly season and anything can happen during silly season that said, do you get a little bit concerned when you see the extent to which big cap tech has sold off following outstanding numbers for most of the big players? >> not really, wilf. it's good to see you i think even though we have new highs in the dow and good numbers on the s&p, the underlying story we've talked about for months now, quarters now actually, is that you've seen this rotation from growth to value the russell value 100 is up 16% and growth is up 5%. i think the sell the news on tech is kind of getting wrapped up in the growth sell as well. the high multiple growth sells so i think the reason why you're seeing the rotation is for good reason, though

we've talked about it. endless liquidity is leading to a better economy and a little inflation. why is the bond market not selling off, right you've got a 10-year at 1.56 i think it is a function of the fed keeping real rates negative. also you have seasonality with japan probably buying at this point in time. so i think, though, the combination of strong growth, a little inflation and low interest rates is goldilocks to me that's why i have said during silly season you want to take advantage and that's what i've been doing i added to cart pillar, i added to @, i added to cortiva so a mixture, staying diversified by leaning on the economically sensitive stocks as well. >> shares of uber lower today, to the tune of 8.5% after the company missed revenue estimates. on last night's earnings call

the upber ceo warned of tough comps, but the ceo was on "squawk box" earlier today saying uber is still poised to grow. >> we want people to get anything they want, but we're also very happy when they go when they go back to work, when they go back to restaurants. we win both ways and we still relevant to the consumer, whether they want things delivered to their home or whether they want to go out, whether it's to a party or to a restaurant or go to work >> mike, down about $4 or so today. it wasn't long ago it was above 60 it's been quite an aggressive pullback for uber. >> part of it goes along with the general move out of the stocks where the day of profitability, if it is out there in the future, is pretty out there in the future. it's pretty tough to model uber's business as well as they

have perhaps done flexibly kind of switching towards the strategically interesting areas and be lots more things to lots more users it's not necessarily something that's going to spin earnings starting tomorrow. so that's one of those issues. and i do think it kind of gets thrown into that group with sort of less profitable, high concept tech. >> down 8.6% new data showing brick and mortar retailers are making a comeback courtney reagan with the details. courtney >> hi there, sara. so the retail recovery is in bloom. new spending data from mastercard across all payments shows the total u.s. retail sales grew more than 23% in april year over year but also 11% more than april 2019 so well before the pandemic. total spending at department stores is actually up 200% and up nearly 10% compared to april 2019 jewelry spending is even

stronger home furnishishing remains up from both 2019 and 2020. in-store traffic, though, is still well below 2019 levels according to censormatic solutions. last week store traffic was more that 20% below 2019 levels it was up nearly 320% from 2020 but that makes sense because many retailers were still closed back over to you. >> any accepts that this is lasting, courtney, or how long it could last? it makes sense with things reopening and so much pent-up demand from people staying at home and being on their computers all the time, they want to go out and shop. i guess the question is for how long >> that's such an important question and i don't think anybody knows the answers. i know the ceos are watching the vaccination rates very carefully region by region and they think that is the key to unlocking a lot of spending. but how long it lasts, i don't know

how many times are you going to refurnish your home, right so it might be category dependent. but for things like apparel, that's really looking up across online and in store because a lot of the stuff that we had bought a year ago is no longer exactly what may be the most stylish now, which is probably exactly what retailers want to make us think we have to go out and refresh our closets. >> skinny jeans are out. you have to go out and buy a whole new set of jeans. >> i still can't decide what kind of jeans i'm going to transition to. >> some of us are more pleased about that than others you're a big fan of your skinny jeans. >> well, i was but i can't be anymore. they're not in. >> we're going to be so uncool walking down the street. >> be a trend setter, sara. >> all of a sudden, sara, after 15 years of that being the mode. >> exactly what do you do, just throw them out? >> mike will never throw out his bean pole tight jeans, he loves them so much. we have to move on, alas,

because we are in the market zone julia boorstin has more. roku down quite sharply. >> yes, concern that growth and revenue will fall off as economies reopen and that is putting pressure on the stock, down 7% today. it is still up with 120% over the last 12 months so the most important thing in roku's earnings report is the company's outlook. the trend in hours viewed and any numbers from april could be seen as a key indicator of where things are going for the first quarter analysts are expecting growth of 3 million new users on a 53% increase in revenue and a 13-cent per share loss for the company. now, as of now 72% of analysts have a buy or overweight rating on the stock we'll be watching to see where it moves after the bell. >> julia, thanks so much we're also going to get results from square. kate rooney has a preview of

those numbers for us >> hey, wilf square has been one of the biggest winners during the pandemic, but can they keep up with that growth that's really the big question heading into earnings today. analysts are still focused on its digital payments driver, the cash app, and its venmo competitor where people trade stocks and crypto. there's high expectations for bitcoin trading revenue, especially after what we saw from coinbase's first quarter. finally, there's a lot of hope for recovery in square's core seller business and those in-person payments bottom line, the bar is really high here for square this year some analysts are wary about that valuation, increasing competition and decelerating growth guys, back to you. >> thanks so much for that, kate you mentioned that we are at session highs. the dow is up over 300 the nasdaq is up 0.2%. mike, quickly, though, roku interestingly down so much both of late and today. you've been keeping an eye on

that one a bit. >> sure. it's actually at an interesting point. not really even into the teeth of the pandemic but late last year as well into early this year, and it's backed off and at its 200-day moving average technically speaking it's testing this uptrend and i do think it's primed for potentially a pretty good move on the numbers just because the sudden move has been so extreme in a short period of time. it's not a short situation either, not a heavily shorted stock. >> not too far from the high steph, what do you do with roku? are you in this name >> i'm not in this name. in this theme i'm in at&t. especially after the quarter that we talked about just last week i think that with roku, they're in a sweet spot, though, because 50% of the advertisers are going to the connected tv. and that's right where they are. i think the bigger question for roku is what are they doing on their m & a strategy they're buying content to build

out their channel. and then also they're buying other things, other technologies so that they can get ctv more momentum so you want to hear what their strategy is all that being said, it's a very hard stock to value. it's a momentum stock that's broken so it might pop on the news but i think it's going to be tough to regain that momentum just given the macro environment. >> just about two minutes to go in the trading day mike, what are you seeing in the market internals as we've seen a lot of improvement into the close. >> still pretty mixed under the surface. definitely improved from where they are at the worst of the morning. now we are positive on breadth it's 2.1 billion advancing shares against 1.8 billion declining. that was actually negative the first part of the day. we did get a little bit of a bid in there in the market look at the new highs versus new lows in the nasdaq it really shows you the split between winners and losers getting pretty dramatic. both well above a hundred. it's pretty unusual to have more than a hundred new lows but then

you have new highs then the volatility index, if you want to take a look at that, we were above 19 and have backed off. the entire market has found -- did i mention often pulled into a neutral spot ahead of a jobs number expected to be very good. some folks pointing to that willingness that biden stated looking to go lower on the corporate tax rate, although that was not necessarily too surprising necessarily for those tracking this, wilf. >> we've got just under one minute left. a great final hour of trade. all 11 sectors of the s&p are higher we are at session highs on the dow, up 315 points so 0.9% s&p is up 0.75%. the nasdaq which was in the red is up by 0.3% itself now we do have gold and silver both nicely higher today. oil slips a little bit but has been strong of late. the vix falling now by the end of the session 18.4 and the

10-year slipping quite a lot to 1.57 it is financials, consumer staples, communication services and technology which are the best performing sectors. those four sectors are up more than 1%. all 11 are higher. health care at the bottom, but nothing in the red as we approach the close 0.8% again for the s&p, almost a full percent, 330 points on the dow. the nasdaq itself up 0.4%, sara. >> a lot of buying into the close there. 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. up 315 on the dow. goldman sacks was the biggest contributor to the gains but there were a lot of winners. home depot, microsoft, ibm all near the top of the list losers, caterpillar, chevron and mcdonald's z consumer staples and financials were the biggest winners

actually financials and then consumer staples communication services also added more than a percent. the nasdaq was up higher, up 0.4 of a percent it did manage to avoid five days of losses which would have been the longest losing streak since last october we did end on a high rate. there's the russell 2000 which was tdeeply in the red but just going positive into the close. the dow closing at a record high investors are set for another wild hour of earnings after the bell brace yourself, i've got results from square, roku, peloton, amc entertainment, beyond meat wait, there's more we'll also get numbers from shake shack, expedia, trip advisor, dropbox and iac we'll have instant analysis of all these results as soon as they are released. stephanie link is still with s. tiff me mcgee joins us mike, first to you on a strong day for the bulls,

we've got this divergence between momentum in technology and some of the cyclical plays. >> that's been the case all week it's all netted out to about a half percent gain in the s&p 500, not too far from its highs. so clearly it still reflects mostly being a fitful rotation from some of those secular growth areas where they are not going to have very special earnings growth and people are definitely pricing in a tone of optimism further about the economic acceleration everybody expects so it's a we bent but didn't break we have this jobs number coming in the morning and it seems as if people will remain open to potential good news even though the bond market is doing a whole lot of nothing still. >> tiffany, do you like the action today, the rally into the close and essentially all three of the indices looking pretty good, despite as we've been discussing some of the pullback in the overpriced tech names >> absolutely. rally is a wonderful word.

it's great to look on the screen and see green so absolutely. i absolutely love the rally. we're looking -- we've been looking and really paying attention to these high growth tech stocks as everybody has we're also looking at small cap stocks we think that now is the time for investors to diversify the equity portion of their portfolio so we're seeing wins across different industries. we like that. >> you might be seeing some banners crossing under the screen getting some breaking news from the federal reserve releasing their financial stability report which was scheduled where they comment on how the world looks in terms of asset prices they do make some comments on stocks prices on risky assets have increased since november and prices are high with expected cash flows they attribute it to lower treasury yields. some other tidbits, the fed

talks about archegos and notes a bit of a lack of transparency around hedge funds and how that could be a risk. lil brainerd put out a statement with this financial stability report she said that illustrates the limited visibility of hedge funds and says it may not be capturing important risks. so i would say those are the two headlines on there the fed saying that asset risks are a little bit high and hedge fund exposure is a little bit of a risk. >> part of the problem with archegos is it wasn't a hedge fund, it was a family office so it didn't have to make the same disclosures. perhaps she should have said family office in that quote. >> same idea. >> we get the gist it's also an important fact as to why there was no disclosure maybe hedge funds should give more disclosure also but it's the fact that it was a family office why they gave no

disclosure we're at the top part of a historical distribution, all things that we kind of know, mike, and that we are fairly stretched to the upside. so, again, things have gone sideways or down for certain indices and certain stocks which means we're not as overboard a stretch as we have been at times in the last six months. >> that's right. i'm sure fedofficials who watc this sort of thing are not really upset to see a lot of the somewhat overheated parts of the market -- we were talking in january and february how we were looking like a 1999 mega tech melt-up momentum chase situation. that broke ntirely now we have a market that's pricing in very generous credit conditions and good economic news, a faster growth scenario so it's not something that's of immediate alarm. >> do you think, tiffany, that the market has started pricing in a taper or scaling back of the $120 billion in extraordinary stimulus that the fed is buying in assets? has that started

>> you know, quite possibly. you know, that really is the big question, right? the fed has said repeatedly that they are not even thinking about, thinking about a tapering but you have to kind of think with the economy -- with things doing so well, can they continue to stimulate so i think a little bit of that is going on. i think the market is starting to price in a little bit of that you know, as an investor, a professional investor, i kind of wonder how long can the fed keep this up? >> let's get to the first earnings report. dropbox and deirdre bosa has the numbers. dee. >> hey, wilf i'm seeing beats across the board here revenue at $512 million versus $505 which the street was expecting. earnings per share 35 cents versus 31 cents expected rpu average revenue per user better than expected at $132.55.

arr, annual recurring revenue which they have been releasing over the past year or so coming in at 2.11 billion dollars paid users, this was a key metric to look for, coming in at 15.83 million. that's better than the 15.7 expected we will get guidance on the call we will listen for that and keep in mind shares are up about 10% this year. so far up nearly 2% in the after hours. back to you. tiffany, dropbox, what's your take? >> yeah, absolutely. i really expected that we're very happy to hear those results. they have a highly sustainable business model i also like the fact that nearly 50% of their revenue is generated from customers outside of the u.s you know, they generate revenue entirely from the sale of subscriptions to its platform. i think in this day and age as companies are really figuring out work from home, work from

anywhere, there's always a need for a service like drop box no matter where they're working. >> steph, are you seeing any opportunities in the post earnings reactions so many numbers have been strong and we've highlighted the big tech names, but a lot of others as well. strong numbers that the market seems to have anticipated and are seeing some pretty sharp falls. any buying opportunities out there for you on that? >> so yeah, absolutely i think we're lucky that we're in earnings season if stocks fall, if you listen to the conference calls, listen to management teams, look at the business models, there's absolutely opportunity all the time that again goes back to earnings season silly season because the reactions are sometimes really silly and don't make any sense so i bought caterpillar on the weakness when they blew away the numbers on every metric, especially margins, and they haven't raised price just yet. at&t had a phenomenal quarter and are back on track in terms of subscriber growth hbo max came in at 2 million, double what people were

expecting. they're doing a good job and the valuation is really interesting and you get a 6.5% dividend yield. cortiva is an ag company and i think that's a 2021 story. they didn't actually raise guidance because they're very conservative so i bought more of that today estee lauder was down 8% so i bought more of that too so i had a buying spree this past week for sure. >> mike, pivoting while waiting for more earnings to come out, what should we make of the 10-year back down at 1.56? steph mentioned it earlier it's not based on bearish outlook for the economy, though. >> no, i wouldn't say it is. there's a few things going on. clearly there's demand to capture the yield and treasury market from around the world

it's still kind of -- you're in the money if you're a non-u.s. investor being able to pick up yield in that way. there was just a natural flow back into fixed income after an awful first quarter and rebalance there. also, the fact that the fed has persuasively saying rate hikes are so far down the road we're not going to talk about them -- keep in mind two-year yields are not going up and the yield curve is sort of wide enough, one might say, for the immediate growth picture so it's not clear exactly what's going on, but it seems like mostly just a pause in a rising yield environment. >> peloton results are out, diana olick has the results. diana. >> yeah, it looks like an overall beat for peloton but not a word in the shareholder letter about the major treadmill recall just yesterday the company recorded a q3 gap loss of 3 cents a share versus 12 cents revenue at 1.26 billion versus estimates of 1.11 billion. connected fitness subscriptions

strong at 2.08 million versus estimates of 1.99. the company reported significant improvements in wait times, back to pre-covid levels for the bikes. connected fitness products revenues beat evidence but was that strong demand or catch-up from delayed orders? we still don't know. and no guidance in this report peloton always offers guidance so that has to be again about the treadmill recall which you can be sure will be the focus of the call coming up at 5:00 p.m. >> diana, just in terms of the treadmill recall, what are some of the financial risks to consider it's not an easy logistical feat to recall a treadmill. you can't just ship it in the mail what are some of the issues here >> obviously it's going to be the cost to go into people's homes and remove them if people wanting to accepted them back. if you read the facebook page, most users are saying they don't

want to send it back for those that do, they have to take those back. they're also offering to move it to another room. and then of course there would have been the revenue on the treadmill plus we don't know what they're going to do with that lower model, the treadmill, the lower priced version so it's lower to the ground and guess would not have the same risks as the treadmill plus they were supposed to launch that in the u.s. i guess we'll hear more about that on the earnings call. maybe we will, maybe we won't. a lot of unarchsed questions on peloton right now. >> tiffany, has this been a buying opportunity the last few days, the pullback that we've seen >> yes, so this is really tricky something like a recall and safety, you know, when someone has died because of that, it really is cringe worthy. you know, peloton has been a name that we've owned for quite some time. actually right after the ipo we love the story. of course we all know how great the pandemic was for peloton

we really have felt that this is going to continue -- that the peloton story will continue to unfold long after we're all back to, you know, moving around freely in the world. and so we actually did not buy this week because we were really waiting on really the earnings call, which i haven't heard. but really the earnings call to really have some more color around how they were going to handle the recalls but really kind of looking at these, the sales of the tread really only represent about 2% of their sales this year, right? and so they generate most of their income from the bikes, the exercise bikes, and also the subscription services. then when you look at the subscription, only about 6% of their subscription is from the treads so we understand that this is a huge deal and they really have

to get past the optics of this, but we do believe they're going to continue -- that they can get over this and continue to do well. >> we've got another one crossing, square kate rooney has the numbers. >> hey, wilf square popping here after hours. a big beat on eps coming in at up 41 cents adjusted compared to estimates of 16 cents on revenues of 5.06 billion unclear if that's immediately comparable we're still going through the numbers but square popping here after hours, up about 3% here. back to you, wilf. >> i'll take it. kate, thank you very much. steph, on square >> yeah, probably a big beat on the bitcoin trading and then also on the cash apps and seller volumes. the seller volumes actually, it looks like it came in better than expected. the numbers were 65 po% to 68% in print people were at 58%, 59%

so those are really good numbers there. the stock is down 19% from its highs so i think the expectations were low enough headed into this print it's a great secular story the valuation always perplexed me i've always leaned more on kind of paypal if you will, but i don't own either at this point. >> stephanie and tiffany, thank you both for joining us today. great to see you as always. >> thanks, guys. many more earnings coming your way we'll bring them to you as soon as they cross. plus, cloud stocks have been crushed, shares of twilio are getting hit especially hard after softer than expected q2 guidance we'll speak with the ceo jeff lawson about tt haoutlook and when cloud stocks could make a bit of a comeback. we're back in 90 seconds

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that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. expedia's results are out are seema mody has those for us. >> strong results from expedia for the quarter. gross bookings of $15.4 billion blasting through estimates it's retail segment which incorporates vrbo saw revenue over a billion dollars, much better than what analysts were anticipating expedia also plans to pay off 50% of the preferred stock issued in 2020 during the second quarter of 2021. it looks like investors

responding positively to that news more on expedia and its growth and vacation rentals tomorrow when we speak with ceo peter kern on "squawk on the street. shares higher by 4%. >> seema, thank you. shares of twilio falling today following its earnings last night the company beating on earnings and revenue but gave mixed guidance for the second quarter. the stock is up nearly 150% from the last year though it is off 30% from the highs as cloud stocks get hit across the board. joining us now is twilio's ceo jeff lawson. jeff, weeklcome back. >> thank you great to be back. >> your company has been a beneficiary of the pandemic and a shift of going online. is that still happening as the economy opens up >> of course don't think of twilio as a company that was only relevant for covid. we are the beneficiary of a

decade if not more long trend for businesses to enter the digital economy and to engage their customers using digital channels yes, covid forced some of that migration faster than it might have happened otherwise, but that is the secular trend that has been fueling our growth for a decade and why we put up numbers like we have, growing 62% year over year after a nearly $2.5 billion run rate that is a secular tale that's been going on for a long time. >> stock is down 9.4% today. the outlook, the fact there's such great expectations for a stock that has run up 150% the last year. talk us through that outlook, which has caused a little consternation with such high expectations. >> we are extraordinarily bullish on the business. we see relevancy across every industry, across every continent. we see businesses of every kinda

da adopting digital so every indicator we see says this trend will continue for a long time. in fact we did a survey of enterprise business leaders and more than 90% of business leaders said that because they are engaging with their customers digitally, they now have a tighter relationship and a better relationship with those customers. so again this is a trend that's gone on for a long time and is still in its infancy we are in the early days of a very long game to help every business not just transition to digital but to go win in di digital, and that is an important mission that we take to heart but one every company is undertaking as we help them. >> so you're taking on new clients and expanding the number of clients, but are there any risks, maybe not imminently, but in a few years' time, that some of your bigger clients decide to tackle the services that you provide for them in house as the likes of uber continue hiring more people, more tech experts could they do those things in-house >> well, that's something that

investors have wondered about for many years, there was a lot of speculation about that. but we have been putting up expansion rates that are industry leading for many years now as a public company. our most recent, 133%, is leading in pretty much every category that there is so i think those fears have been put to bed by our continued strong growth rate 62% year over ear, $2.5 billio in revenue our existing customers are growing, not shrinking >> what are you seeing in some of the hard-hit areas, travel websites, i guess retail did well during the crisis, but some of the harder hit sectors of the economy that you do business with, how much have they recovered in terms of traffic and engagement >> we have a very distributed customer base. that means we don't have exposure to any one sector or the other. we have a very distributed revenue base but that also gives us visibility into things that are happening. what i would say is we're starting to see strength across the board.

a year ago you would have said there are certain sectors growing a lot and there's other sectors like travel and hospitality that are rapidly shrinking as we all know because people stopped traveling now you're starting to see a really good balance. the companies investing in digital like e-commerce, telemedicine, things like that, are continuing to grow their footprint as new behaviors are getting established and then the industries that were negatively impacted, you're starting to see pretty incredible strength as those are returning to their prior highs as people are starting to travel, starting to return obviously as geographically dependent, but here in the united states, for example, you are seeing those start to return. >> jeff lawson, thank you for joining us for a snapshot of twilio, the ceo. roku results just out. julia boorstin has the numbers. >> yes, that's right roku beating expectations on the top and bottom lines reporting

$574 million in revenue exceeding the $492 million estimated, while earnings of 54 cents per share are a surprise profit analysts had been expecting a 13 cent per share loss. the company's revenue guidance exceeding expectations for the second quarter, though it is worth noting roku added fewer active accounts than anticipated, 2.4 million rather than 3 million and streaming hours did fall slightly short of expectations roku do expect year over year growth rates to be slower this year than 2020 but they do expect growth of users and streaming hours to be above pre-covid levels meanwhile -- and you see roku shares up about 6% meanwhile iac reporting revenue exceeding expectations earnings per share at $3.46. that is not comparable with expectations because it doesn't include an investment gain from mgm resorts of $292 million.

so that is not comparable there. but i do want to note that the company also announced that they will be completing the venue spin-off on track to happen may 25th back to you. roku jumping -- taking most of today's losses in the normal session. beyond meat's results are also crossing. kate rogers has those for us kate. >> hey, that stock moving lower. a miss on the top and bottom lines for the first quarter. adjusted loss per share, 42 cents. that is greater than the 19-cent loss projected by analysts revenues $108 million for the quarter. the street was looking for $113.7 million the company's ceo says they're seeing improvement in revenue and gross margins despite ongoing pressure on the company's food service business, adding that there's a slow thaw that's occurring both domestically and internationally. not giving full year guidance

for 2021 due to ongoing uncertainty with covid but is giving q2 revenue guidance that is right in line with what analysts were projecting there for q2, guys back over to you. >> kate rogers kate, thank you. shares of norwegian cruise line under pressure after a big quarterly revenue miss up next, the company's ceo on those results and why a july restart of sailing may no longer happen some interesting comnton atonree ll today that he will clear up, next

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shares of norwegian cruise line closing in the red after reporting a narrower than expected quarterly loss and a miss on revenue expectations joining us is norwegian cruise lines ceo frank del rio. frank, good to see you thanks for joining us. >> hello, how are you? >> very well, thank you. i think what's been grabbing the headline most of all is when you think you'll be ready for the u.s. cruises again and july perhaps not possible >> look, we will start cruising in july, but it won't be from u.s. ports we've announced cruises out of europe, out of greece, spain, italy, and out of the dominican

republic and jamaica over the next few months. but i seriously doubt we will be able to stand up a vessel out of a u.s. port in july. august is also in jeopardy it's all because of the disjointed guidelines from the cdc. what we received yesterday was anything but a clear path to rest restarting the industry is willing to vaccinate a great majority of the vessels and the people we, as you know, put forth a very iron clad proposal to the cdc over a month ago where we are demanding on mandating 100% vaccinations for both crew and passengers on top of that, we're going to layer the 74 protocols by dr. scott gottlieb put together. so we believe that our vessels will be the safest place on earth. i don't know any other venue you can point to where everyone

inside that venue is both vaccinated and following these protocols. not hotels, not resorts, not apartment buildings, grocery stores, hospitals, nowhere and yet either than ease on the demands and the requirements by the cdc, they seem to double down on the cruise industry. can you imagine having to take on your mask and take off your mask in between bites of your meal or in between sips of a drink? it's absurd and doesn't happen anywhere else in the world, anywhere else than the united states and so the unfair treatment that the industry has had to endure for over a year continues. it's got to stop, it's unfair, it's unamerican, and certainly in contradiction to the goals set forth by president biden 70% of adult americans will be vaccinated by this summer. we're going to vaccinate 100% of everybody onboard our vessel

we are dumbfounded, quite frankly, as to why the cdc continues to put forth such onerous requirements on our industry. >> i don't even understand what you've saying, frank you're going to require 100% of the people on the cruise to be vaccinated and the cdc is saying what >> the cdc is saying, oh, that's nice, but you still have to go through all these protocols, including 100% masking, social distancing and the masking is absurd. you know, even in the height of the pandemic in this country where you had to wear a mask inside a restaurant if the restaurant was open, when you were having your meal, when you were drinking a beverage, you can take it off. well, if we're interpreting what the cdc's guidelines said -- stated yesterday correctly, in between bites or in between sips, you've got to put it back on and take it off and put it back on. it's absurd. we wouldn't put our customers through that so if that's --

>> restaurants don't have to do that i don't even understand -- do you think it's political >> you know, i don't know what it is, sara. i know it's absurd i know it's outrageous and it's got to stop. >> frank, let's talk about the positives. how big is the pickup in demand been, and when, where will you be able to meet that demand by >> you know, wilfred, we had an earnings call today as you know. we stated that we have never seen this level of demand in the history of the company, not even in 2019, which was a record year not only for us but for the entire industry. not only do we have more bookings by a substantial amount for 2022 at this point, but at higher prices. so we're seeing pricing power. we're seeing demand across all three brands to all destinations and what i said this morning and i'll repeat here again is if we're allowed to actually

operate the krcruises that we a selling, 2022 could be another record year. it sounds crazy that we can go from a year where we're not operating, we haven't operated in over 12 months, where we could have a record year in 2022 if we're allowed to actually operate. and if we are willing to operate with 100% vaccinated crew and guests onboard, tell me another venue on this planet where you will be safer. there isn't one. and so we're perplexed as to why the cdc doesn't see it that way. and quite frankly, the cdc is a harbinger of what the rest of the world will do. cdc is looked upon as the gold standard around the world by other public health officials. if the cdc doesn't let us cruise, nobody else is going to let us cruise. so we have to jump the hurdle of the cdc not just for u.s. sailings, but for sailings in other parts of the world >> frank, thanks for joining us today.

we appreciate it. >> thank you meanwhile, shake shack results are out and kate rogers has those for us hi, kate >> hey again, wilf this is a mixed first quarter for shake shack earning 4 cents adjusted for eps that compares to an estimated loss of 9 cents per share. revenues a miss, $155 million in the quarter compared to $162 million estimated. same-store sales increasing 5.7% that's a positive sign the company's ceo saying that tourism will be key to recovery. they opened ten shacks this quarter, including in big cities, new york city and hoboken. projecting revenues of $174 to $183 million which is a bit weaker than estimated and perhaps why the stock is falling after hours. >> kate, thank you for that. still ahead, the ceo of

zoetis we're back in a couple of minutes. ♪ ♪ ♪ ♪

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welcome back time for a cnbc news update. shepard smith has it for us. in the news at this hour the los angeles angels of anaheim have just cut the legendary hitter albert pujols the three-time national league mvp is in the last year of a 10-year deal that pays $240 million. he's number five in career home runs but this year his batting

average dipped below .200. he's the oldest active player in the majors he's no longer an l.a. angel. the pandemic is looking up virginia and minnesota the latest states to announce lifting most covid restrictions except for mask mandates the governors for both states aiming for middle of next month but they say it all depends on vaccination numbers going up and new infections going down. across the nation, positive rates showing encouraging declines florida down to 5% now, lowest since march. and new york state zippsinking o 1.25%. that's the lowest in seven months. tonight the biden administration wants to lift patent protections for vaccine makers the companies say it will compromise safety. we'll talk with dr. scott gottlieb about all of that on the news, 7:00 eastern, cnbc see you then wilf, back to you. >> shep, thank you. up next, we will ask a shareholder of roku and peloton

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shares of roku popping after hours and peloton moving the

other way. let's bring in kevin landis. let's start with peloton, down 5% initially it looked like these numbers were pretty positive after what's been a tough week for them what's your take >> well, you know, i guess we got pulled into this investment because it looked like a great trade. then we hung around because we thought maybe it might turn out to be a great investment i think a lot of other people were stuck on that analysis there. and so, you know, investors get nervous in situations like that. it doesn't take much to get people thinking they want to get out of the trade if they're not so sure about the investment >> so what about roku, up 7.3% after hours. good-looking sales picture, pretty steep sell-off in the session earlier. >> yeah, you know, that's one we really, really like for the long term there you just have to take a look at the market cap and compare it to all the other players in streaming and realize that although the chart makes it look like an expensive stock, it's still a pretty small valuation compared to the other big players.

i can't think of a company that's better positioned on streaming than roku. >> i just want to come back to peloton. i was confused about what you were saying about hold it for investment versus a trade. are you suggesting others should sell here because of the disappointments of this week or the opposite >> well, no, this is the whole unwind of the stay-at-home stock trade. if you think it was just everything is going to snap back to normal. but if you think that there's going to be a disruption, and think back to the way once upon a time netflix disrupted blockbuster, think about how it is that peloton might disrupt all the gyms, and that people might decide they just don't like going to the gyms, they're a little more germophobic and don't like the service they get there, they like working out and home and having that virtual community, that's the difference if you're a long-term hold or whether you're trying to play it like a trade. >> got it. thank you for your quick take on

both of these names. up next, zoetis seeing a big boost in sales during the pandemic pet boom. but what's the company forecasting now that we are reopening? we'll discuss with the ceo when "closing bell" comes right back.

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zoetis ceo welcome back to the show >> thanks for having me. it's great to be here, especially for our best quarter e ever. >> so these results were driven by the companion animal trend that we've been talking about and that is everyone going out and adopting pets. how sustainable is that? where does that go >> sure, no, we were really pleased with the quarter we grew 21% on the top line. that was driven primarily, as you noted, by our companion animal business which grew 34% our livestock business also grew 8. what was great to see on the companion animal side was how much that growth was driven across so many different categories great strength in our paris portfolio which was only 34% of the company -- sorry, our pet care, which is 34% of the company when me ipo'ed that's now 55 so we're really excited. that's 16% of the company.

strong growth in dermatology, so that was around 24% as well as launching some new mavs. what you're talking about with regards to many people adopting pets, spending more time with their pets and the spend per visit was up which is a consistent theme for us. we see this as a sustainable growth trajectory with continued growth on the pet care side. more and more of these people adopting pets are millenials and gen z and they're presdpdisposet be spending more with their pets. >> my sister would agree with you. what about livestock, in the u.s. it was down is that correlated with returning to restaurants and eating out where does that go >> sure. i think if you look at livestock globally, it grew 8% to your point it did decline in the u.s. but grew internationally. it's important to note in our livestock business that 60% of our livestock is outside of the u.s., which is why you saw the overall growth for us but the

dl decline in the u.s in the u.s. the decline was driven by poultry and swine and some really specific factors with regards to rotations off our products and poleulpoultry, cetera we are going to see continued pressure on the u.s. livestock side as we have the loss of exclusivity in draxon. as we look at the second half of the year, you'll see a little more of a drag there but really exciting growth as you saw overall 8% growth in livestock and that's primarily driven by growth in china and growth in brazil growth in china, our swine business there was up 128% that's three quarters with that business being up 100% or more so really great growth in brazil as well. >> you mentioned, kristin, the strong growth in china and brazil largely because of livestock. what about pet trends internationally outside of the u.s. are they matching the trends that you're seeing here or a bit behind >> that's a great question we see three growth trends that we think are sustainable between

2021 and 2022. the first obviously is the pet care trend and that's really the growth in our derm, our mavs but if you look at international to what you're referencing there, you see growth in china in the quarter of 75%, growth in brazil of 48%. what's really interesting48% what's really interesting about that is there's significant growth in both live stock and companion animal 5z you look at china i referenced the growth in swine 59% growth in china there a lot of cats seeing great growth in brazil and our product in brazil the third great trend is diagnostics and it's great that they're mutually reinforcing international grows, pet care grow, those new products increased relevance in the pet

care clinics as well we are excited we have a number of sustainable growth drivers that have been a strength for us in the quarter that we think are sustainable not just in 2021 but in 2022 and beyond. >> aside from earnings in a company in the pharmaceutical space that makes and develops drugs what you made of the biden administration to waive ip protections for covid-19 vaccines. >> it's a great question, although that specific decision doesn't effect zoetis or the animal health inland empir industry the goal is to vaccinate as many as possible. and i believe the decision to reduce incentive around innovation around new strains, et cetera, as well as invest in huge, high-quality manufacturing fashi facilities for those proed products,

anything that didn't do that is dangerous we need to innocent advise companies innocent advise people to get us there thanks for joining us. >> up ne, xtwe will dig into moves halving after-hours in a few minutes. uh - uh, lisa, maybe less heartbroken? geico lets you file a claim online, over the phone or with their app. ♪ that makes me wanna say... ♪ ♪ stay... ♪ (sniffles) are...are you crying? uhh, there's pollen... geico. great service without all the drama.

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let's get back to kate rooney with more on squares earnings >> quick update on square. the numbers are comparable to wall street estimates, eps coming in at 41 cents a beat by 21 cents that revenue topping $5 billion for the quarter $2 billion above what analysts forecasted the big reason, bitcoin. square brought in $3.5 billion in revenue from just bitcoin alone in the corner, up 11x year-over-year gross profit for bitcoin only $75 million, to put it in context it's 2% of the total bitcoin revenue so not great margins there. i just got off the phone with

square's ceo who pointed us to the profit numbers saying it is really what the important number is for square, how much it is impacting the bottom line, as far as bitcoin, she talked about engagement is driving more user growth on cash app and top four revenue streams for cash app as well back to you. >> thank you very much square up 7% after-hours now look ahead, investors will watch jobs report tomorrow for april, consensus forecast at 1 million jobs compared last month's 916,000. that report at 8:30 eastern. more reports, adidas, draftkings, nikola and ark invest cathie wood right here. tomorrow on jobs 1 million added would that move the markets? >> i don't know if one million on the nose would move the market, we're still 8 million jobs down and the fed said we

have to get closer to that i think the market wants confirmation we're in acceleration phase, some of the estimates are closer to 2 million. >> great final hour of trade left us up nearly 4% on the dow and 0.4% on nasdaq we're out of time on "closing bell." "fast money" starts now. >> i'm melissa lee, and this is "fast money. tonight's trader lineup guy adami, dan nathan, pete, and jeff mills tonight on fast we're tracking peloton, square and beyond meat. all three stocks on the move after rarting results, their calls are just getting under way. we'll dialled in and bring you headlines. and patent problems, under pressure what to do when you own these names. and what to do, live from new york, it's elon musk i'll never host "snl." spotted on the streets as he gears up for this week's "