software, high multiples, those names are all getting torched after some very strong runs. >> all right, josh, thank you very much. we appreciate the insight there. and folks, seema, it was nice to be with you for three-quarters of the hour, once we got everything back up and running here thanks, everybody, for watching "power lunch." hope you enjoyed it. "closing bell" right now and look where they are. >> we are live from the floor of the new york stock exchange. >> we're back. >> it is good to be back i'm wilfred frost along with sara eisen 14 months since we were here at post 9 as we were just saying, good to be back mainly to see old friends. i haven't seen bob pisani in months, all of these great traders. it is a little more empty than normal. >> about half the traders are back they have been taking precautions to get back. march 19th, 2020 we had no idea

we thought we'll be out for a few weeks, see what happens. >> we thought the sell-off might last a little while and what a ferocious rally we've seen since then just extraordinary. >> it's the same and the whole world has changed at the same time. >> and it's good to be back on a day with a lot of market action. let's get to it. what is driving action today the market divergence is playing out once again the dow setting a record high, though its well off its best levels while the nasdaq is sinking as facebook and alphabet pull back on an analyst's downgrade. tesla making a big move lower as well the energy sectors in focus following a ransomware attack on colonial pipeline, one of the largest pipelines in the u.s and we're keeping an eye on crypto dogecoin prices plummeting following elon musk's appearance on "saturday night live" where he called the digital token a hustle less than one hour to go in the trading day. the dow looking for its sixth

straight day of gains. the nasdaq down 2.3%. coming up today, shares of coty are plunging on news that sales fell around 3% on the quarter. we'll talk to the ceo about the one part of the business that she says is booming. more earnings coming after the bell we'll bring you the results as soon as they cross don't miss our interview with pete buttigieg we'll talk about infrastructure, spending, taxes, and a whole lot more let's get straight to the market, though, as the major averages diverge once again. mike santoli tracking all of today's market action. we miss you, mike. >> great to see you guys down there. i look forward to joining you at some point just check on my little space and make sure everything is in order. meanwhile let's look at the markets. really a push/pull we talked about this being a messy rotation the s&p 500, no real net damage

done once again holding above 4200. you had a little flutter to the downside around 2:00 p.m it just seems as though the weight of the largest stocks in the world going down 1% and 2% relentlessly might have been a little too much in the near term but industrials, financials, discretionary seem like they're holding up okay. rotation is good from a macro perspective, but on some levels, sometimes it's just not as neat and tidy as it has been this is the new york composite it is everything on the new york you guys down there, you see all those stocks down there. and this has been this interesting acceleration right here in the composite. it somewhat moves with small caps also heavy financials waiting. very, very broad indicator so underlying markets okay. also interesting u.s. versus the rest of the world. it's been a story of give and take, various periods of outperformance of the u.s. versus the rest of the world almost exactly a dead heat

acwx is everything in the world except for the u.s. market what's interesting is if the big nasdaq growth stocks are not going to be a big factor in the u.s. market in terms of leadership, if in fact they are in a longer term downslide, you would think that would also fit with non-u.s. stocks outperforming pabecause they are underrepresented in mega cap growth it does seem a little stretched already. the dow outperforming the nasdaq year-to-date by more than 10 percentage points at this point. >> is the reason, mike, just the better growth prospects from the u.s. economy, just brushing aside that weaker jobs report we had friday and the idea that cyclical places are where you want to be >> i think that is the underlying reason, sara. that's really the driving mentality that is causing the money to flow away from the big growth stocks that have stability and predictability but that's not so much in demand at the moment also the upside to earnings

forecast has been so dramatic in the rest of the market, mostly in the cyclical industries, that it's just been hard to ignore and say, oh, i want to pay up for 15% or 18% earnings growth from some mega cap tech stocks but on some level it becomes a self-reinforcing momentum type story and that's when it becomes a little less stable. >> echoing sara's thoughts, we miss you here. let's keep an eye on energy talks following the attack on the pipeline operator. there is no supply shortage and they are investigating colonial issuing a statement saying the goal is to restore substantial operations by the end of the week. the attack shut down the main lines at the largest u.s. pipeline since friday. let's bring in tom closer, head of energy analysis at oil price information services tom, good to see you as always

thanks for joining us. are you surprised that we haven't seen a bigger reaction in oil prices? >> i'm not really surprised. may tends to be a month where gasoline prices can peak in the futures market once it was apparent that colonial had a handle on this and they might substantially restore operations by the weekend, things calmed down. i might also add that we've had three weeks in a row where we averaged over 7 million barrels a week in imports. there's plenty of gasoline in the north atlantic to supply a lot of the deep water ports on the east coast. >> what about more broadly this attack in general. is it a ground-breaking moment for the industry will it lead to big change >> i think it's a ground-breaking moment for the digital world or the cyber world. we did stories years, decades ago about colonial pipeline and whether terrorists could shut it down and the answer was no, they have the readiness to rebuild miles

of pipeline very easily. you know, when you're in the ether world or the space of cyberattacks, it's an unknown. so if i were a villain or boris and natasha from eastern europe years ago and targeting infrastructure in the united states, i'd be hard pressed to pick something that's more substantial than colonial pipeline >> so, tom, the fact that this is happening at a time when americans are just starting to travel again and they're just starting to commute again and you've got this reopening which has helped lift energy prices, do you expect that to have a bigger -- an outsized impact on the price of fuel? >> i think it will have an impact on fuel, and i think fuel prices will go a little bit higher but i don't think it will be apocalyptic like it was from, let's say, the arab spring of 2011 through 2014. we're still using 10% or so less than we used in the last normal

year, 2019 and i do think we're going to see surges in the summertime, particularly when schools let out and labor day. but that problem will be more related to the lack of drivers who move the product from the big, huge terminals you see and the stations so one variable that we have to worry about for the rest of the week here and into next week is crowd behavior if people perceive -- >> what is your -- >> go ahead, wilfred. >> i was just going to rounding it off, what is your outlook for wti for the rest of this year? it's clearly had a fantastic start to the year and lots of factors have been supporting it. what's the outlook for the rest of the year? >> well, i think the outlook is it's going to be above $70 a b barrel it depends on what happens in india with covid u.s. gasoline prices, there's nothing magical about $3

we may get there but we're not necessarily going to spend months and months and months there. >> so, tom, it's interesting that you have previously looked into the security of this pipeline and found their vulnerabilities. what about other critical energy infrastructure in this country, other key pipelines. how vulnerable do you think we are? >> you know, it's an interesting question there's a lot of the anti-fossil fuel people who will say, oh, my goodness, we're so dependent on this but what if a major electric utility was hacked, what would we do if we were with electric vehicles so it's a real, real challenge for this administration and probably future administrations. a lot of bad actors out there. >> we'll talk to secretary buttigieg a little bit about it and intra-agency response. tom, thank you for now shares of cosmetics company coty are plucmmeting on the bac of earnings.

fwu the ceo says one part of the business is booming. she'll join us with more you're watching cnbc

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welcome back some bigdecliners on the nasda in particular today, down about 2.2% microsoft down close to 2% apple and amazon close to 3% while facebook is down more than 4% and tesla down 5.5% and it means that is the worst performer of the major averages. the s&p down 0.6 >> ark innovation getting hit even harder than the broader nasdaq as we've seen momentum names sell off. shares of coty sinking after sales fell around 3% versus last year but the company did note improvement in brands like cover girl i spoke with sue nabi, the ceo, and asked about the company's profitability and sales miss >> the profitability was clearly a momentum for us. as you know, this was a can you

milestone that we really wanted to make happen during the third quarter. that was taken clearly by gross margin strong improvement, more than 450 base points versus what we've done in the past and this was clearly the number one objective. in terms of sales, you could really see that our prestige business, our prestige brands are booming, in america or in china, and we are starting to stabilize our mass beauty business worldwide, including in america. you've probably heard during our earnings call that's for the first time cover girl is seeing market share gain since four years. so the picture i really wanted to share with you today. >> what's driving that in cover girl i always thought of some of these big beauty brands, especially like cover girl, like the problem with big food where they need to be cleaner and go more where the consumer is going, and yet there's an engrained perception that they

are a well established, mass market brand how do you change that story. >> cover girl is probably the most loved american beauty brand today, especially in the mass cosmetics arena and comparing to prestige brands. there is a love rate that's so high that it's part of the american culture and of course of the daily user of millions and millions of american women and today men. so clearly this was a great basis to build back the brand on and we've made a bet since my first day at coty because i've been following this brand from my previous years in the industry, i was surprised to see that the brand that invented clean makeup 60 years ago, that invented what we call today makeup powered by skip care something like 20 years ago was not the brand leading this this is what happens after we decided to put back the focus on our assets in other words, what people are

looking for at cover girl is what cover girl is famous for. the rest of the sequence of focusing on clean makeup, focusing on skin care that's powering makeup products and this is why the results of cover girl are so stunning today it's really going back to what cover girl has been standing for. you heard probably the recent announcement around niki taylor, used to be the face of cover girl 20 years ago. she's back today and she's the face of simply ageless, which is america's number one anti-aging foundation this is part of the ongoing study on cover girl. >> what about masks, we're all still wearing them to what extent are they driving beauty trends. >> the masks are still having an impact on lip color usage, even if we are seeing some recovery happening here and there clearly what we are seeing is that in spite of the wear of the masks, people are heavily relying on product that make them look better skin care on one side, complexion products. that's the reason why on the

brand like color girl we've been investing a lot behind clean, fresh makeup for the face and we've been investing behind lash blast clean for the eyes and now we're moving to simply ageless but still a complexion product and we're doing more or less the same strategy in china to take another example where the launch on gucci, on the latest foundation designed for the asian consumer or the new foundation on burberry or clearly driving the sales. anything that has to do with the face and the eyes is booming today. >> i haven't worn perfume in at least a year is that a straight reopening play as people go out more, they'll start using perfumes again? >> sara, fragrances in the u.s. are booming. again, this is the category especially of prestige fragrances this is the category that's leading the growth of the luxury beauty business in america and clearly coty again has been

outperforming very, very strongly in market remember, we shared some time around perfect by marc jacobs. gucci is seeing strong momentum, hugo boss same thing fortunately fragrance is clearly the area that's recovering the fastest. not only recovering, it's leading the growth of the american market not only versus '20 but also versus '19. it's already progressing same thing in china. >> finally just a macro question, sue, i wanted to ask about inflation. we've seen costs go up for all sorts of products and especially in the consumer world. what's going on there for you, and are you raising prices for consumers? are you going to have to do that >> first of all, we will be raising prices because this is, you know, something that we intended to do since day one and second i would say that the price increase that you are referring to in terms of goods,

et cetera, has a limited impact on our gross margin. again, the gross margin that we have just announced as you've heard it, it's a high level that we've never reached up to now. half of it is structural and, therefore, we intend to build the company around this gross margin strong improvement that we have seen throughout the quarter, which will help us fuel all the initiatives around cover girl, around sally hanson in americas, gucci and many others in china, but also you may have heard the latest announcement we made today around max factor who announced that the new face to represent the brand worldwide, same announcement we made a week ago for our key brand in europe, the number one brand in uk as the global activist for the brand. so we need all this gross margin to support this momentum we are starting to see throughout the different brands of the company.

>> our thanks to sue nabi, the ceo of coty. this is a turn-around story. you have to keep the context encl clear here this stock has run up 50% just this year and more than doubled on last year in part faith in her and her strategic execution which we have started to see some progress on in the better profitability, the break-even this quarter, the fact that cover girl returned to growth in the u.s. which she mentioned a number of times in the interview, that luxury or prestige products are also growing strongly, especially in asia, and that fragrance is booming as people leave their house again. i guess they have to wear cologne and perfume. >> what about the high profile select partnerships like the kardashians? >> of course we went there and didn't have time to include everything but they both got new launches, kiley and kim. there are reports that kiley has some major discounted products she couldn't give me any details on the refresh, but there's going to be a whole new line

basically of kiley's skin care coming soon. she erased all of the instagram photos, all of her pictures from the previous branding to tease the new. they're very good at the hype on social media. >> today the stock price down 11% or so after a very strong run previously. broader markets down 2.3% to be precise for the nasdaq. the dow still holding on to gains, but only up 72 points now, well off its session highs, which was up 300 or so. still ahead, transportation secretary pete buttigieg will join us to talk about infrastructure and the american economic recovery following u n'wa t weak jobs report. yodot nto miss that. we are 40 minutes or so away from the close

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s&p down three-quarters of a percent while the dow is higher. time for cnbc news update with rahel solomon. >> hello, everyone here's what's happening at this hour president biden says that his administration is taking the cyberattack that's disrupted the colonial pipeline very seriously. he was also asked if the russian government is involved >> we're going to be meeting with president putin and so far there is no evidence based on from our intelligence people that russia is involved, although there's evidence that the actors, ransomware is in russia they have some responsibility to deal with this >> nbc says that it will not air the 2022 golden globe awards while the organizers of the event work on promised reforms the hollywood foreign press

association is being accused of ethics violations and a lack of diversity among its members. and now to dramatic body cam video. take a look, this is from a new york city police officer who rushed to the aid of a 4-year-old girl hit by a stray bullet in times square you see her running here it all happened over the weekend. officer alyssa vogel says that her motherly instincts kicked in as she put a tourniquet on the girl's leg and picked her up and ran her to an ambulance. the girl and two other people shot are all expected to recover. she said she treated the little girl like she would want someone to treat her child guys, back to you. >> wow, thank you for that and thank you to her as well. still ahead, where are retail investors putting their money to work? some much-loved stocks are being big pullbacks of late. we'll talk about the names some clients are buying and selling. plus we're counting down to

results from wynn and others. here's a check in on bonds yields moving higher the 10-year around 1.6 or so, 1.599 as we stand. we'll be right back. ah, she thought that squirrel on your brand-new flat screen tv was an actual squirrel... leave it. purchase protection for what you didn't see coming. one of the many things you can expect when you're with amex.

32 minutes left to go. shares of trade desk are sinking despite posting an earnings and revenue beat the company giving weak guidance saying it's facing high uncertainty in its business outlook. there is a 10-1 stock split. the stock giving back 25%. it has been a huge winner over the past year or so. and biontech saying there's no evidence they have to adapt their vaccine for variants the stock up 15% marriott shares zippsinking.

>> leisure bookings starting to ramp up but staffing shortages means marriott has to work even harder to recruit new employees. >> we are having a bit of challenge staffing our hotels. we're putting some one-time incentives in place. we're running job fairs. we want to make sure we can accommodate every guest that's returning back to our hotels >> now, the recovery in travel is largely in leisure markets for marriott in florida and arizona. the returning of business and group bookings is expected to pick up this fall but at a slower rate. tony did say china serves as a road map of what we could see here in the u.s. in due time also marriott not expected to resume its dividend payouts until the first quarter of 2022. wilf. >> seema, thank you very much for that those hotel operators down today. we've got 29 minutes left of the session and we are lower,

sharply lower for tech stocks, only slightly lower for the s&p 500 and still higher for the dow, albeit well off the highs of the session, which was up 300. we're at 100 or so. up next, we will get the pulse of the retail investor when we talk to j.j. kinahan check out some of the top search tickers. the 10-year yield on top, dogecoin, tesla, apple and nasdaq complete the top five we'll be right back. this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito]

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new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. the ark innovation fund getting slammed today. shares nearly 35% from their recent high in february. wood appeared on the show on friday and weighed in on the recent market pullback and why she welcomes the move. >> i love this setup you know, the last time i was

on, i think i said that this rotation was good news because it meant the bull market was broadening out, it was strengthening. and the worst thing that could have happened to us is to have the market narrowly focus on just our ilk of stock, the innovation space instead, it has broadened out so that year to date i think it's energy is up 40%, financials are up 27% our point of view, five-year time horizon, nothing has changed except the price. >> this would be the lowest close going back till mid-december or so also some pointing to importantly the lowest close, lower than its intraday low back in march and whether that's a key support level. it's underperforming the broader market year to date. so has the rotation in stocks impacted where retail investors are putting their money to work as well. let's bring in j.j. kinahan.

j.j., good to see you. thanks for joining us. >> hello. >> let's talk about april specifically you've just released some of your data on that. are you seeing similar type of rotation away from the massive outperformers of last year >> oh, i think the biggest thing you're seeing, wilf, is you saw a month with the s&p 500 up over 500% yet our clients' exposure was relatively unchanged in the past when clients would sell stocks, they immediately reinvest it in other stocks. what we started to see last month is clients sell stocks, some of it going back into equities there were net buyers of equities but also net buyers of fixed income i think this tug of war that we're seeing between value stocks/growth stocks is weighing on the retail investor as we are seeing it weigh on the market overall. today being the perfect example

with tech selling off and consumer staples and financials doing so well. people are a little bit confused as to where to go next i think as we start to see more businesses open, more people get back to work, hopefully we'll get a few more answers for people. >> what have people been buying most of all in the last month? is it typical cyclical stocks like energy and banks or is it a little more complicated than that >> no, it's a little broader than that. we saw last month people buying disney, viacom apple was fairly well bought last month i look at days like today where facebook and tesla are selling off and i would expect them to be bought. tesla was one of the stocks that our clients bought last month and they sold off a little bit it's also interesting to see our millenial clients driving some of the activity that we saw last month. stocks like palantir and skills,

which isn't noermally one that you're talking about, the game platform so the buy what you know is also showing up in some of our millennium clients so you're seeing a broader spectrum of stocks that people are buying overall. disney and viacom, i guess you could say those are as much streaming stocks as anything else >> we played a sound bite from cathie wood. obviously the ark phenomenon has attracted traders with its strategy some of these biotech names that she's in down double digits. how much broad retail pain is there on days like this, which have been going on now for weeks? >> well, you know what, sara, what's really been amazing, and we've seen it over the last couple of years and we have talked about this in the past. i don't think retail sees these days necessarily as pain because the buy the dip mentality, particularly those stocks that have been popular over the

years, tends to maintain itself overall. so many people view days like today actually as opportunity longer term. at some point will that end? absolutely but it has worked very, very well it's just like in football or something, if the play keeps working, you keep running it the people who continue to run this have been handsomely rewarded i also think there's some hesitation as we're near market tops on s&p and russell. the nasdaq is about 3% off its high, for people to go as all in, perhaps, as they did when we were at a little bit lower levels. >> j.j., what about overall volumes that you're seeing an engagement with retail investors. have you seen that start to tail off a little bit since things have started to reopen elsewhere? >> oh, yeah. we're not seeing the same volumes that we saw in the gamestop days, et cetera we're still seeing, i think, what will be more of a new normal where you're seeing more elevated than we saw this time in 2020.

but i don't know that we're going to see as consistent a basis the types of volumes that we saw in january and february i think there's a couple of reasons for that number one, people getting back to work. number two, people getting the freedom to go outdoors, want to take vacation or for the first time in over a year, many people got to see their mother on mother's day that's absolutely great. so people taking advantage of things like that overall and then there's no great story right now. we're in the middle of this tug of war as we talked about between value and growth we're in a time where the fed is going to sort of keep the money rolling. maybe many thought the employment report would change that narrative last friday, but it didn't. so we're pushing that out at least a month. i think when we start about more inflationary pressures over all. so i think it is a time where you're looking for a catalyst. we don't necessarily have that catalyst one of the interesting things that our clients did last month,

the catalyst was covid vaccines. we saw pfizer and moderna hit all-time highs our clients or sellers of both and of johnson & johnson so all these stories playing out, people are looking for what's the next story. and besides back to work, it's a little difficult to say what that story is right now. >> j.j., always good to check in with you thanks for joining us. >> thanks, sara. thanks for having me have a great day. >> you too. straight ahead, ev stocks are under pressure today and big tech getting downgraded. "the market zone" is next. and may is asian-american and pacific islander heritage month. we'll be highlighting different people here's cnbc contributor serat. >> one of the most difficult parts growing up as an asian-american is overcoming biases one of the biases that i was faced with, i was not good with interpersonal skills but much

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we'll kick it off with the broader market once again major averages are diverging sharply. the dow is on track for a record close, up for a ziksixth day ina row. the nasdaq is down after posting its third straight weekly loss this week, mike. i guess the question you have to be asking is how much farther does this rotation have to go? how much more pain for the nasdaq and the tech sector and gains for the dow and the value in cyclical stocks >> yeah, and by the way, can it also continue going that way can you actually have some much pressure on the huge growth stocks which still have an enormous influence on the indexes and not necessarily cause a little bit more of a ripple effect on the older economy stocks it's somewhat during the day today seemed like it was getting a little wider than just tech and everything is off the high so if you go back to last summer, we were talking about this in the 180-degree reverse order, which was how high can these big growth stocks go what's the appetite for mega cap

growth how big are they going to get in the index to the exclusion of everything else? i guess if we have to go to a similar extreme, we're probably not thereyet in terms of them being left behind. but i do think it's been remarkable to date how the overall market has held up with all that pressure. now we have yields ticking back higher again and creating a little more selling in the tech stocks but i do think it's hard to imagine it's going to continue this way and still be such a seamless rotation. >> but mike, you said with yields sitting back higher but one could argue in the last five months or so that yields have settled back or at least plateaued and it's come with very, very strong earnings from these tech names so is it a worry that we're pull back despite no real trigger or catalyst as to why we should be pulling back >> i don't know if it's a worry. the premium just keeps getting pulled out of that part of the market you're right that yields have not been a trigger when yields were screaming higher, every single time i said

there's no magic relationship there. yes, sometimes it goes that way. yes, it seemed like it was the case at the time right now these are wounded companies, they're kind of in a growth purgatory because the rest of the s&p is growing faster than the average mega cap growth stock right now, at least in 2021. >> so the nasdaq is off 5.5% from all-time highs. the dow is making new all-time highs. how are you guys positioned amid this rotation? >> yeah, it's a good question. what i would say is obviously the rotation has been going on for quite some time now. we've seen financials moving since november but recently in the last three weeks, the nasdaq has obviously within down and you continue to see, you know, the trend into the value-oriented sector. so for us we continue to play that i think financials, industrials, health care. i think there's opportunities there. i think we play again the reopening story. i think that's the theme to be

watching very closely at this point. >> a number of tech stocks getting downgraded today, helping to fuel selling pressure in the nasdaq. facebook and alphabet are low after citi downgraded both tech giants to neutral. they say analysts are overly bullish on the advertising market's growth potential and they are likely to see year-over-year growth metrics slow down. intel is down. and oracle, which was lower downgraded to equal weight at barclay's. the strong performance means less upside going forward. jason, some big names there, a lot of which have been lower of late any of them screaming buying opportunities for you for the long term even if there's a bit of short-term downside >> so, you know, the semi space i think is always a difficult

space in terms of picking names. you know, obviously intel has had a decent year, up about 13% year to date they have been losing market share to amd for some time but i just think the growth opportunity there and the demand, the chips are in everything we do and need so i think there might be some opportunity in those spaces. personally we own nvidia, a name we've kind of rolled with on the semi side. >> what do you think of the downgrades of mega cap tech, mike, just playing catchup or something there? >> to some degree. they're following the market to a degree also pointing out the fact that they had their moment in terms of this story being resident where it was unlimited growth in digital advertising, these companies consuming more than their fair share of it as the pie gets bigger and it seemed like it worked but it doesn't necessarily have great leverage

to the cyclical upturn right now. i think that's the core of these downgrades now, facebook is fascinating it's also continuing with many other issues as it always is right now this company is valued at a market multiple based on where the earnings are going next year, there's no more premium really for buying facebook at these levels so you're getting no real credit for whatever other business they're working on, beyond the core digital advertising businesses right now so it's a fascinating little battleground happening right now. the market doesn't want total addressable market stories with unlimited supply of these kind of ecosystems. what it wants is pricing in scarce resources in the real world as opposed to virtual world. >> david costen at goldman sounding the alarm at some of these big cap names facing regulation, higher rates, taxes. ev stocks are also under pressure following disappointing results from work horse.

phil lebeau with more. >> sara, a brutal day for the ev stocks you mentioned work horse reporting results before the bell, swinging to a loss but it's the revenue that the company reported, far below what the analyst consensus was. ev truck production from workhorse also slower than expected that stock down almost 15% today. look at the rest of the ev stocks they're all down 8%, 9%. pick your ev stock you want to talk about lordstown motors, fiskar and then you have ford with ev news the company announcing it will be unveiling the electric version of the f-150 next week they're calling it the lightning. that will be next wednesday night when they unveil the f-150 lightning that goes into production next year we should see it on the streets by the middle of next year guys, back to you. >> which is such a good name if you have little kids that watch cars and movies. popular in our house >> harrison a future buyer of

the ford lightning. these have been, jason, some of the hottest stocks in the market and they're selling off really hard. you pick up any of them on this dip? >> so i have tesla has been a name we've traded in and out of throughout last year. ford we hold but i think for us where new capital is going is really going to the financial sector. as we look at the macro backdrop, rates rising, the yield curve continuing to steepen, i think that's where we want to be for now and kind of look to it later on throughout the year and see what opportunities might present themselves >> mike, it's sinteresting looking at the levels of tesla we talked about ark earlier and the main etf broke below the 200-day moving average last week tesla hasn't quite done that yet but a couple more days and it will. >> it's broken down well below levels of where i always look at

which is where it entered the s&p 500 afterthis massive roundup. it's incredible that it can go from 900 down to the low 600s and it hasn't broken the 200 day average. that sells you how steep it was. i think it's losing the kind of specialness premium that it had based on it being the only way to play evs. you know, whatever other kind of attendant dramas that were around the stock and the reason people got overexcited about it on the way up. it was always pretty far removed from where the business was in the here and now >> a failed drug test from the winner of the kentucky derby is hitting some degaming stocks. contessa brewer has that for us. >> yeah, it's a rough ride for a rash of gaming stocks. wynn has just turned negative

this afternoon but really those with a heavy digital presence are getting socked on the chin the score, golden nugget online, rush street interactive, they got dealt a losing hand today along with draftkinz gs and pen down between 5% and 10%. gaming companies also slipped today. and what may be the biggest sports betting headline of the day, of course the doubt cast on the winner of the kentucky derby, which failed a drug test. trainer bob baffert denies any wrongdoing but those who bet on the second place winner are just furious. no matter the outcome of medina spirits, the payouts will not change for those who contributed to the more than $150 million bet on this race so that is what i think you would call tough luck. guys >> the payouts don't change

because the betting companies have it written in that once it's paid out, it can't change even if officially the winner does change? >> not even just the betting platforms but this is written into the regulations of the kentucky racing association, that if for whatever reason the winner is thrown out, that you don't go back and redo all of the bets and the payouts and all of that. like whoever is the winner in that moment, that's who stands it would be very hard to go back to these bettors and collect back the money that they won and then pay out the money that should have been won given that the second place winner is now the winner. >> really interesting. contessa, thank you. on the betting stocks, mike, draftkings is down another 7%. penn national down 7%. all the air out of these popular trades is coming out. >> it is this was also a story of can you imagine how big this market is going to be? and yeah, the valuations don't make sense based on where it is right now and the revenues

they have to really have a tremendous amount of user engagement exponentially down the road but they're going to get it those hypergrowth stocks that had these big stories attached to them, i think that's part of the reason it's sort of -- you've lost the interest of the people who got dazzled by the stories i'm not saying it's forever, but it seems like the market is having a real violent shift from those types of stocks over into things that sent copper around the world. >> just mentioned the dow has turned negative. the high for the session for the dow is 314 points higher, now negative all three of the major averages in the red the nasdaq down 2.53%. jason, a quick comment on the gaming stocks. what's your take before we get to the internals. >> yeah, so i think this is a very tough story and obviously they need to work this out for me, you know, i think wynn and the mgms of the world,

they're a reopening play i think that you can play -- obviously wynn is up 12% year to date but i think i would stay away from some of the others. penn, draftkings right now, let this flow out a little bit obviously high multiple stocks that have been under pressure recently >> well, it looks like we've got two minutes to go in the trading day. mike, it doesn't seem like we're going to get another record high in the dow breaking that win streak after five days in a row. what else do you see in the internals. >> they have eroded. this morning when you had the nasdaq under some pressure, there was still more stocks up than down. that has shifted over the course of the day take a look at the new york stock exchange you've got almost twice as much volume in declining stocks as advancing stocks the equal-weighted s&p is actually about flat so it's well outperforming the market cap rated version. take a look at the u.s. dollar against the basic material sector this has been another stark

thing. the dollar has been on the downside it's gone up over the day but basic materials is up 5%, chemicals in particular and those types of materials especially and the volatility index did come awake over the course of the day today. it was popping up above 17 now we're above 19 the market has gotten just a little bit sloppy here on the downside finally a little bit of an indication that sellers were woken up we'll see if it lasts. we had one of these days last week too, wilf, so keep that in mind. >> 50 seconds left of the session. red across all three of the major averages the dow as we mentioned moments ago joining the other two in the red. had been higher by 314 points, now just lower by 10 on 11 points the s&p is down a full 1% with tech, consumer discretionary down the most, all of those down 2%, 2.5% it's good to hear some noise as we approach the close.

good to be back here on the floor. it is the nasdaq down the most 2.5% to be precise as we've been discussing all through the show, big cap tech is down the most, the likes of apple down 3%, alphabet down 3.5%, amazon down 3% ark innovation down 5% at the close with tesla down 6.5% at the close, sara, we do have all three of the major averages in the red the dow down 0.1%, the s&p down 1% and the nasdaq down 2.5%. >> just lost a lot of steam into the close. welcome back, everyone, 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. the dow got hit the least hard, in fact was positive all day long we were tracking for another record close but it took a spill into the close, down 32 points but it has kept up that pattern

of outperformance against the s&p and the nasdaq take a look at the broader s&p 500 where you did see the tech sectors and everything that goes along with it, consumer discretionary and communication services all lower the s&p dropping 1% on the day the nasdaq took the biggest spill, down 2.5% continuing its recent slide technology settling off from software to semis to big cap tech to momentum names, the russell index of small caps down 2.6% on the day. investors are set for another busy hour of earnings after the bell we'll have instant analysis of the results from wynn, roblox, affirm, novavax. plus pete buttigieg on the weak april jobs report and whether congress will be able to reach a boy partisan infrastructure deal. first up, jason snipe from odyssey capital advisers with

us ali mccartney joins the conversation first i'll send it to you, mike, on what was a pretty weak day. any trigger for the selling? earlier in the day we had an s&p intraday high, transports were at a record high things were looking okay. >> they were i don't think there was a news-driven trigger. i think it was really the friction, the wear and tear of those -- the big cap nasdaq names being for sale all day and, you know, we had this rethink of the jobs number almost immediately actually people said it wasn't that bad but when you get among the stupendous earnings and see something like amazon which cracked below its 200-day average today, it's looked awful since it had an amazing quarter. it leaves a general sense of what can these names do for me in the future when we're past those catalysts. maybe they have to get washed out and maybe that's part of that process, but to me it was just the weakness there kind of

spreading to other parts of the market at this point you know, 4180, that's where we were in mid-april so this is the consolidation that many people thought we needed in the overall market. >> mike, we talked a lot of late, including with paul hickey, about how we pivoted in recent months to having a good final hour of trade. clearly that wasn't the case today. and indeed if you look over recent trading sessions, there's been a lot of steadily throughout the day sell-off. is that a concern? >> it could be a concern i feel like we go in these different regimes. historically it has meant that institutions tend to trade more toward the close and, therefore, it could be a derisking by professionals. also you have fully invested accounts all over the place and so there would be some trimming toward the close i don't know that it means that there's going to be a dam break but it definitely is noteworthy when you see -- you know, you don't have buyers stepping in at

these levels, especially in the faster moving stocks. novavax results are out. leslie picker with the results. >> a beat on both the top and bottom lines seeming to reverse some of the losses that they saw earlier today. going through the numbers, the company reported $3.05 per share compared to estimates of $3.60 per share. on the top line, $447 million compared to estimates of $234 million. now, notably in the release there is no u.s. phase 3 trial results quite yet. they know that those will be delivered in the, quote, coming months, sometime in the second quarter. they also say they plan to evaluate the vaccine in younger populations, ages 12 to 17, and that they are continuing to bolster -- or to evaluate their booster strategy to address the evolving pandemic. they also announced today

earlier this morning that their combined flu and covid vaccine did create fupnctional antibodie in hamsters. but once they do receive approval, they did revise the capacity down to 100 million doses per month by the end of the third quarter of 2021. they said that the remaining capacity is expected to come online in the fourth quarter to support 150 million doses per month. but in after hours trading, that stock up 3.8% right now. guys. >> leslie picker, thank you. ali mccartney, generally what's been the mood around some of your clients around these vaccine stocks so much excitement at first for a company like novavax which was a huge bet the efficacy data looked good and now it's taking a little bit of time and we might not need as much in the u.s. which is obviously a good problem, but what's the vibe on these stocks?

>> i think going into all of the pharmaceuticals during the pandemic was an interesting play for people first of all, everybody knew how challenging it was with the numbers around how long it had taken for vaccines in the past it was also unclear how much profit, and obviously we got incremental news on this with the conversation around u.s. patent protection or lack thereof, around whether the revenues and the research would accrue to these companies in realtime irrespective of what happens long term with patent protection here, what you're going to find is that it will. all of the research, all of the international and monetary capital that went into the creation of vaccines is going to accrue to other for sale more profitable products. so last week there was definitely a sense of disappointment and especially with conversations about increases in taxes and a lot of these stocks having been bought

now hitting long-term capital gains, it's definitely a conversation we're having. but now we're arguing there's going to be much more and years of accrued benefits to these companies. >> wynn's results are just crossing contessa brewer has them for us. >> yeah, i'm looking at this right now. it looks like revenue is coming in at $726 million that's a miss. and the adjusted loss here of $2.01 also a miss. but i want to point out again in gaming, there is less attention paid to eps and more attention paid to the ebitda, the earnings before interest, taxes and depreciation that is coming in higher than expectations macaw with 44 million versus up from million expected. las vegas coming in with 28 million versus 21 million. boston at 30 million, a beat there as well. also big news on the digital front. wynn interactive is the vehicle

by which wynn offers its digital play it's made a big play here to compete and it's going public via spac by bill foley's acquisition. so they're spinning off the interactive and the digital portion of this gaming business into a separate stand-alone company. also, just as a side note and the thing that really got my attention today, wynn resorts is going to offer a nightclub event space at the end zone or just off the end zone of allegiant stadium. so just as a little water cooler talk when you're talking about earnings, how cool so you go to a nightclub at the new football stadium in las vegas this fall. >> we just got back to the new york stock exchange. i think it's going to take a little while to get back to nightclubs i guess that plan is -- >> i'm up for a vegas trip at some point contessa, thank you very much for that breakdown i mean i guess, jason, yes, reopening is happening and people are going back and wanting to unleash, but not

quite to the extent that had been priced in with a decent run-up of the stock of late. >> no doubt. it's going to take some time for them to really grow and earnings growth, this year has all been about earnings growth. it's going to take some time for these names to move forward. i'm not terribly surprised by the miss, but i think quarters to follow, it will get stronger over time. >> alli, what's your favorite reopening play >> look, i think something like a wynn or a hotel is a really great one, right my note that i sent out last week, i send out a weekly blog, and i said i am going to present live in vegas at a conference in two weeks. and you would be surprised how many people are opting in and excited about that and so what i am seeing is really this sort of proverbial champagne cork coming out. so i think when you have this rotation happening, partly you have it because we now have some new news, right? there is inflation

everybody is talking about it. the question is who can pass it on to consumers and who can't. and you have people coming out into the world and doing new things and that especially accrues to value stocks,right, and value stocks are not as on the hook for an increase in interest rate and inflation. so i think that's why you have some of this back and forth, but i think all of these reopening plays, industrials, materials. whether you talk about what happened in the energy market because of some of the cybersecurity issues that you're seeing that are very real, whether you're talking about what's happening with banks, whether you're talking about increases in people traveling, i think it's all going the same direction. and maybe, maybe we lerarned on friday with the jobs direction that it's going slower than it came and that means those value stocks aren't going to be as punished for an increase in interest rates and a discount of future earnings, really have

that much more to run in the next weeks and months. >> affirm's results also out kate rooney has those for us hi, kate. >> hey, wilf, a mixed quarter for affirm let's start with earnings. that was a loss of $1.06 per share. the estimate was a loss of 29 cents so a big miss on earnings. on revenue it was a beat, $230.7 million for a firm in their fiscal third quarter here. total revenue was up 67% year over year. they do mention peloton, guys. they had that treadmill recall that is part of affirm's guidance here. they mentioned the recall of the tread plus products. that's looking like a $3.5 million reduction to revenue estimates going forward. gross merchandise volumes, gmv, came in at $2.3 billion, up 83% year over year active merchants, meanwhile, nearly doubled year over year to 12,000 they now have 12,000 merchants

customers, meanwhile, grew about 60%. shares pretty much flat here after hours. guys, back to you. >> kate, thank you let's hit roblox earnings just out josh lipton with those numbers. >> roblox reporting q1 results a loss of 46 cents with revenue up 140% to $387 million. not clear if that's comparable to what the street was looking for. bookings up 161% to $652 million. average daily active users up 79% to 42.1 million. remember heading into this, the stock was down 10% in may, off 20% from its all-time high the conference call is tomorrow morning. back to you all. >> up 3.5% after hours alli, i believe you are a fan of this company and a shareholder and maybe a mom of kids? >> i'm everything but an analyst. i have done everything but spread sheet it. but i will tell you being the

mom of two young boys who code and spent a ridiculous amount of time on their technology over the pandemic, i am not only sold on what it is and the way in which they give us as parents control over the process and protect our children, but also the way that they respond. and the open code and open sourcing and the way that that engenders more and more play time yes, i think it might have been punished in terms of when it ipo'ed and the path because it ipo'ed at the perfect time for a stay-at-home company like it but i think it is not doing well or it is not relevant in spite of where we are going, but it got a great start and, yeah, it's the first stock my children will ever have >> there we go up 3% as well. >> now we know why hours engaged worth $9.7 billion, an increase

of 98%. >> a large portion from the mccartney family jason and alli, thank you for joining us good to see you. up next, much more treex roblo x's results when we're joined by an analyst who thinks the stock can rally 27%. plus transportation secretary buttigieg will join us and how many jobs will be made with the president's infrastructure plan and how to pay for it we're back in 90 seconds ♪ i wish that i knew what i know now ♪

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virg in galactic's shares ae out. >> the company reporting a loss of 55 cents a share. that was wider than analysts were expecting that estimate about 27 cents per share in losses for the company. no revenue reported for the first quarter. the company has not started generating a revenue generating flights thus far, and they also note in the press release that the timing of the next flight test is currently being evaluated. that's something that the market is hoping for some guidance on in terms of timing there after it's seen some delays from february but the company does note without specifying what the delays are in regards to that they are experiencing delays due

to business -- i'm sorry, due to covid-19, but those delays are affecting their business and operations so investors will be looking for a management update on that test flight schedule during today's conference call at 5:00 p.m. eastern. nonetheless, shares down about 5.5% right now in after hours trading, guys. >> leslie, thank you roblox just out with its earnings, first time since going public the company reporting a loss of 46 cents daily active users growing 79% from last year let's bring in brandon ross and john freeman they both have a buy rating on the stock, which has really taken a beating, john, since going public and being one of the hottest ipos what do you make of the results that just crossed and what it says about how much resilience is here in this business post-pandemic? >> well, i was pretty blown away by the results whenever you see revenue growth over 100%, things are going

well obviously well above consensus, definitely above our expectations i guess the question now, is that a surge and over easy compare from last year and how sustainable it is. it appears pretty sustainable. there's a lot of room to run with regard to daily active user growth they're at 42 million. obviously there's a tremendous -- there's over 100% growth in daily active users over 13, which is obviously a key demographic. people over 13, all things being equal, don't have to ask mom and dad for money as much as kids under 13, right? so i thought the results were fantastic. >> brandon, you think the stock is very well placed for the next de decade's worth of trends in the digitalization space what about these results, did that confirm your view >> yeah, i think the key thing in this press release was the april numbers that they gave because going in, there's obviously been a lot of

trepidation about reopening and what that's going to mean. we know that covid-19 was a real tailwind for this company. but look, across the board april was extremely strong they grew dau in april over march. bookings continued to grow and engagement was at least flat so reopening is happening, but you also have a flywheel going here where better experiences are being put onto this platform the players or users are responding by continuing to spend more time, despite the ability to do other things as we reopen >> we'll have to leave it there but thank you both, brandon and john, for joining us roblox jumping 4.7% after earnings. let's kick it over now to mike santoli for a look at the equity risk premium on the s&p 500. >> yeah, that typically is

defined as the erpings yield of the stock market versus a risk-free thing like treasury yields this is earnings divided by the level of the s&p to the inflation implied in the bond market so the inflation break-even rate that's right now embedded into bond market expectations what you see is when this goes down, it means there's less of a valuation cushion from equities. therefore, they're more expensive relative to inflation expectations pretty much close to where we were back in 1999 and 2000 now, this is obviously an abstraction. people are not buying and selling every single day, saying we have to optimize for the 10-year forward implied inflation rate but it does tell you if you do think inflation will be an emerging story that's going to be with us a little while or at least inflation scares, it would theoretically cap market valuations that typically when inflation is higher, people are willing to pay lower valuations for stocks as a possible positive offset,

earnings estimates are going up so fast that you can still have valuation compression and earnings going up and not necessarily have a bad outcome if you are an investor in stocks but it's an interesting twist on that, guys. >> i feel like this is the chart of the moment with the inflation debate raging. mike, thank you. still ahead, transportation secretary pete buttigieg on whether smaller corporate tax rate increase than originally proposed could help president biden's $2 trillion infrastructure plan get approval by congress. plus, the ceo of edgewelch makes everything from saving products to sunscreens on how feinhis ommodity costs are afctg business that stock up 15% just last week we'll be right back. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud,

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more earnings out. simon property with results. courtney reagan has the numbers. >> simon property group is out with results and it is a strong beat for earnings per share reporting $1.36. the street was looking for 96 cents. revenues slightly above analysts' expectations, at one point $1.5 billion the full earnings guidance is a raised range of 4.57 and the industry had been looking for

417. but that sort of encapsulates that raise we should note that the occupancy rate for the mall operator, simon property group, 90.8% at the end of march and the base minimum rent per square foot was at $56.07 that's a slight increase, 0.6% year over year ceo david simon has a quote where he talks about increase in profitability and cash flow growth, increasing sales and unleashing momentum. sales of simon propertygroup are flat to slightly higher but they were down about 1% which is about the amount they gained during the session before the results were reported. back over to you. >> courtney reagan, thanks for that. up innext, transportation secretary pete buttigieg on the

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welcome back time for a cnbc news update with shep smith. >> 28 minutes past the hour and here's what's happening. there's a significant increase

in violence in israel and the gaza strip after weeks of clashes over a mosque in jerusalem. health officials in gaza say 20 people, including nine children, are dead as israel launched air strikes against what it called hamas targets. its retaliation for dozens of rockets fired from gaza into israel that injured one person it's unclear whether some or all of the dead in gaza were hit by israeli strikes or errant hamas rockets. hamas launched its rocket attack after israeli police used tear gas, stun grenades and rubber bullets against palestinian protesters this morning inside the walls surrounding the mosque in jerusalem hundreds of palestinians hurt. police say 21 officers injured and an independent laboratory will be doing yet another test on the winner of the kentucky derby after an initial drug test of medina spirits' blood found evidence of

an anti-inflammatory substance that's banned. that triggered a suspension for the trainer, bob baffert, who insists there's no cheating. he'll be our guest tonight at 7:00 p.m. eastern. wilf, back to you. one of the nation's largest pipeline operators following victim to a ransomware attack on friday colonial pipeline was forced to halt operations following the attack president biden weighing in earlier on what his administration is doing to mitigate the impact on the nation's fuel supply. >> over the weekend at my direction the department of transportation issued an emergency order to loosen restrictions on truck drivers in order to allow more fuel to be transported by a tanker. we're prepared to take additional steps depending on how quickly the company is able to bring its pipeline back to full operational capacity. >> colonial pipeline says it's bringing parts of its system back online and hopes to substantially restore service by the end of the week. joining us now in a first on

cnbc interview is transportation secretary pete buttigieg mr. secretary, thank you for joining us >> thanks for having me on >> i wanted to kick off in a big picture way following that colonial pipeline hack to ask simply how vulnerable is u.s. infrastructure >> well, you know, as we go into the 2020s, we're going to continue to see cybersecurity issues rank among the other more traditional security issues impacting all of our critical infrastructure right now we're seeing it obviously in the context of pipelines, but really every element of u.s. infrastructure needs to be secured. you know, it's a challenge in the u.s. because, of course, rightly so, our infrastructure is not all controlled and commanded by the public entities often it's in private hands, municipal and state-owned infrastructure and so it's very important to be coordinating with partners in the private sector, in the state and local

levels where so much of our utilities, for example, are managed and run to make sure that they're resilient and robust against any threat. >> when you see things like this, do you pause and reconsider the balance of where the money is going in the infrastructure bill and think more of it should be on protection as opposed to rebuilding, as it were >> well, i think they go hand in hand you know, the more we are able to develop a resilient and robust infrastructure, the more secure it will be as well, in the same way that at a personal level, if you have a phone or computer that hasn't been updated lately in terms in software, it's more vulnerable to cybersecurity threats not only is that literally true in the fact that software systems need to be updated continually for infrastructure too, but i think it's a metaphor for the bigger picture of where we are as a country. 20th century stinfrastructure wl be vulnerable.

it's why we have to future proof the assets we have around the country and the strategy that's moving us toward less vulnerable, more resilient and more renewable sources. >> secretary buttigieg, just on this current situation that is unfolding as we speak, your department has made some moves to make it easier for trucks and boats to get to the east coast and get the fuel is that a worry that we could see shortages, especially in places like atlantic for cities, for airports as we enter the third day of this issue? >> so the administration is working in a whole of government manner to do everything we can to prevent any kind of disruptions from emerging. while the department of energy has had the lead, we've been in touch with them and homeland security everybody bringing what they can to the table what we were able to do in the department of transportation was create some flexibility to make it easier for trucks to be able to move and serve where they need to. and as was indicated earlier in

the story, of course we're watching closely and ready to cooperate and help in any way that we can as pipeline operators pursue this plan to get back up and running. >> secretary buttigieg, we were meant to talk to you on friday after the jobs report. clearly it was a positive report moving in the right direction, but significantly behind where expectations were. to what extent do you put that down or accept the criticism some are suggesting there's too much stimulus out there in the system at the moment >> remember, we are something on the order of 8 million jobs behind where we were coming out of the pandemic, so the idea that we've somehow done too much to bring back the economy just doesn't seem consistent with the facts on the ground that we're seeing what we have right now is a real challenge to continue emerging from what amounts to the most severe economic shock of our life times it's not something we're going to overcome in one day or in 100

days, although it is remarkable that over the course of this administration that we've seen on average job creation on the order of 500,000 but it's not like we're going to say, okay, now our work is done. it's why we need to make sure in the short term we're deploying the rescue plan dollars that were authorized by congress that are going out as we speak to deal with some of these economic contingencies and it's why this is a great time to pass the american jobs plan that's really about making sure that we have a more robust and resilient economy for years and even decades to come. >> well, it's not so much that the administration is doing so much, but it's so much on the unemployment side of things. the chamber of commerce, for instance, wants you to now scrap the extra $300 per week in bump to the unemployment benefits to incentivize people to go out and look for work. do you buy that argument is it something, do you think, the administration would consider >> we don't think making life any worse for hard-hit american workers is the answer here

what we need to do is make sure that we're deploying the resources that we have and guiding everybody in that safe return to workplaces that's going on across the country as much as can responsibly happen remember, for example, if you have been offered a job and turn away a safe and suitable job, that means you're no longer eligible for these kinds of unemployment benefits. that's something that hasn't changed. as you look at all of the different interacting economic forces going on, as we emerge from this historic shock, there's been no conclusive finding or evidence that that is the main, let alone the only driver of what's going on right now. we need to do two things one is to make sure that we are supporting americans seeking to put food on the table who have gone through horrific economic and personal shocks. and of course make sure that our economy gets back up and running on terms that are sustainable for the future >> so part of that is going to be getting businesses to hire. you said it yourself, there's

still 8.2 million jobs that have not been filled. is now the time to saddle business with more than $2.7 trillion in tax increases over the next 15 years in an effort to do it >> you know what, i've noticed those in the world of trying to keep these tax breaks for corporations and the wealthy, when the economy is doing well, they say now is not the time and when we're come trouble, they say now is not the time, the economy is in trouble. here's what we know, through thick and thin, up and down, american business has been extremely competitive at corporate tax rates in the 30s or even the 40s. we're calling for a corporate tax rate of 28% and we're calling for closing the loopholes that have a lot of corporations that pay zero even when they make billions in profits. we know this reasonable level, not high level, but reasonable level of taxes is what is needed in order to fund the infrastructure plan that the president has put forward. now, we're also interested to hear other ideas and welcoming people bringing other ideas to the table in this negotiating

season the only red line for the president is that he will not accept a proposal to raise taxes on americans making less than $400,000 a year, especially when we still have so many enormous tax breaks on the books for corporations and the wealthy that have never delivered on the -- what was advertised for them in terms of economic growth and that have really crippled our ability to fund important priorities that we can't afford not to do. we as a country, including, by the way, the business community, cannot afford for us to continue going on with increasingly third-rate infrastructure in the u.s. >> mr. secretary, just to switch focus, the uk announced its new travel rules last week the u.s. to somewhat many people's surprise was not on their new green list and some over the weekend have suggested that's because you and your counterpart discussing a dedicated bilateral travel corridor between the u.s. and the uk is that in the works

>> so nothing has been decided or negotiated. there are conversations with many international partners about the concepts of travel corr corridors. look, the reality is that reopening and restoring travel routes, it's going to be much more complex and multi-layered than it was to close them down in the first place because different countries are in different positions in terms of progress with vaccines and of course sometimes we're seeing setbacks in terms of infection rates. i think we all want to see a return, a safe return to international travel i sure do, and i'm the secretary of transportation. but we need to make sure that it's safe. we need to make sure that we have systems that talk to each other in terms of how we verify if somebody has had a negative test or if somebody wants to show proof of vaccination. these are the kinds of conversations that are happening both bilaterally with other countries and in the multi-lateral convenings that

are going on so we can get these right and be as efficient as we can in an incredibly complex process. >> just quickly, why is the uk still on level 4, do not travel, the same category that india is in dates back to march last year when it was put to that status when it has one of the best developed world statistics on all measures when it comes to covid? >> again, the process of releasing or relaxing these restrictions is going to be a lot more complex and multi-stage than the process of imposing them was but i'll tell you that there is constant conversation about how to make sure we're reaching responsible levels of opening and the sooner that we can safely and responsibly and fairly do it, the better our best means to do that is to have continued progress on vaccination in our country and in every country it continues to be imperative, even as we celebrate the good news of coming up on that 50% mark of americans partially immunized, we know we have a long way to go and we have to double down right now.

>> thanks for joining us and for your time. secretary pete buttigieg, we appreciate it. >> thanks for having me on coming up on "closing bell," the ceo of consumer products maker edgewell on whether his company will have to pass on rising commodity costs to consumers and the ceni move he's seen in his stock since reporting earnings we'll be right back.

the price of dogecoin tanking after elon musk's appearance on snl this week. >> crypto investors had piled into dogecoin ahead of snl betting that musk talking about it would keep boosting the price. it crashed on saturday night and is looking like a pretty good example of buy the rumor, sell the news during weekend update musk comes on as a financial expert to explain what dogecoin is he calls it a hustle and then says it's going to the moon. as musk was on air, dogecoin tanked by 30% on saturday night. it recovered a little bit on sunday, though it is down about 17, actually 21% right now. despite jokes about it being a hustle, musk's other company, spacex, announcing that it would launch a mission funded by the cryptocurrency they're calling this doge 1.

guys, back to you. >> did you think he was funny? big debate i thought he wasn't bad. >> that is a big debate. i loved it there were definitely some good moments. up next on the show, the ceo of consumer products maker edgewell on the sk orif inflation to the company's bottom line. we'll be right back. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting.

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over the past week after reporting second quarter earnings the stock shot up 9% on thursday alone. the company which owns brands like schick, banana one, says the sun care category is seeing improvement in april as more people are on the move ceo rob little joins us now. i think you're in a sun care factory or facility, which is what helped propel the stock what's driving your bullish outlook? what are you seeing from consumers? >> hi, sara, good afternoon. it's great to be with you. yes, i'm at our sun care manufacturing plant where we make banana boat and hawaiian tropics down here in florida, visiting the team down here. we're on full 24/7 production at the moment demand is very strong for sun care as you mentioned, mobility is ticking back up. as markets reopen, particularly domestically here in the united states, we're seeing demand increase for sun care. and we saw that pivot towards the end of march, beginning of

april, that it continued throughout the month as we see it here in may continues as well >> and so in that sensory opening is good for you as well as it might be for your shaving-related products >> yeah, that's right, wilf. for sure in sun care we're positive on the future, not only in terms of the category growing from here across the summer and potentially longer than typical travel season. so that gives us some tailwinds in the back half of our year, which ends september 30. and then as you referenced shaving. we saw last quarter was still negative as a category, it's getting sequentially better. as people become more mobile, more social, get back out there and even start to return to work in some capacity, we see the category continuing to improve encouragingly for us, we were actually up 1% in the category -- sorry, 1% in the

quarter just finished, january through march. >> so shaving is back and fragrances are back as people see each other i guess that's good they're taking care of themselves, rod we learned from that coty earlier on the show. what about wet ones. this has driven the most growth during the pandemic. i noticed a decline last quarter. is this one of those things that is not not going to be a permanent trend where we've adapted our behavior towards sanitizing wipes or is it? >> i think it's a permanent trend, sara, towards higher consumption of hand high between and wet ones, the leading brand in the segment, which is our brand. we're bullish on the future for the category the demand will be higher and durable. what you're seeing in the quarter that we printed was a peak load situation as the pandemic hit last year and we're in a period right now, where frankly, consumers, to a certain extent and retailers have more inventory and we're working

through that as they work through that we're confident retailers will consolidate the shelf back leading brands and consumers will care about hand hygiene well into the future. >> on inflation, i notice you're of the few consumer staples comes that did not miss on gross margin were you able to push the costs on to consumers? >> a lot of gross margin progress you saw was generated by lots of different levers being pulled within the company. first is its great cost management and good work around cost of goods and despite the heavy inflationary period that's hitting us now around materials costs, logistics costs and wage pressures, we were able to offset that on the cost line as well as revenue management it's a growing capability within the company where we look at our

product, price mix, ladders, take in pricing on wet ones and sun care a year ago and we'll monitor and take pricing where we think it's warranted frankly. we're always going to be competitive on price working across portfolio mix, revenue optimization and good daily work around cost management we were positive on margin in the quarter and proud of that and think that's something that can continue over the coming quarters regardless of the inflationary environment we see ahead >> your stock is on a hot streak i guess that's part of the reason why rod little, thank you for joining us today. >> thank you, sara. >> ceo of edgewell. >> take care. >> still to come your earnings scorecard featuring roblox popping on the back of the first report, wind resorts higher, rackspace and virgin lower that came from me. really. my first idea was “in one quarter of an hour, your savings will tower...

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now to our look ahead. more earnings on deck tomorrow, ea, fubo and lemonade and an interview on this show with st. louis fed president james bullard tomorrow at 3:00 p.m. eastern time on "closing bell. he's always got a good feel for the markets versus the fed and what the markets are telegraphing as far as fed policy mike what will you be watching into tomorrow? >> job opening are a humongous story, why can't we fill them

with the policy help out there an extraordinary amount of two-way action today you had the nasdaq down 2.5% and 20% of all stocks in the new york stock exchange at a 52-week high something has to give. seems like a very high emotion and high friction environment right now. >> tech, big sellers today, down 2.5% by the close. dow also down 0.1% we're out of time. "fast money" is now. >> i'm melissa lee this is "fast money. today's lineup, guy, kim, karen and dan. tonight we're charting the sell-off tech stocks crashing back to earth and we'll dive in to see if there's trouble ahead. new developments in the wake of that massive hack attack on the nation's largest petroleum pipeline one analyst calling it a fully preventable failure. he'll tell us which companies have the best technologies to prevent something like this from happening again. we are all over the afterhours action,