we're looking at session highs for the names like netflix as well as amazon interesting price action there the dow is down 1.4% the s&p 500 down by less than a percent at this point. really be weighed down by financials as well as industrials. courtney, great to be with you i hear the birds chirping, go enjoy them thanks for watching "power." "closing bell" starts right now. >> thank you, melissa and courtney welcome to "closing bell." i'm sara eisen along with wilfred frost at the new york stock exchange a broad sell-off here on wall street on this tuesday afternoon. today for a change it's led by the dow and the s&p 500. the dow is down more than 650 points at the low. it's now down about 460. let's look at what's driving the action the nasdaq outperforming for a change after a blistering recovery off the lows of the day. it had been down as much as 2.2% climbed all the way back into the green. names like tesla, rackspace, affirm all seeing outsized declines

on the data front, job openings hitting a record high in march, more than 8 million postings and the volatility index is jumping today, touching its highest level in two months. an investor is warning of a raging mania in assets 59 minutes left to go in the session. energy is the sector seeing the biggest decline today for a change. >> coming up on today's show, james bullard joins us to talk about the recovery and central bank policy. and it's the perfect day to happen as inflation fears remain a concern for investors. plus dan niles joins us to discuss the big swings in tech stocks and whether he's been buying the dips. and palantir plummeting on earnings but seeing a dramatic turn-around. on pace to snap a 10-day losing streak we'll talk to a shareholder about today's action that typifies that action today in tech stocks. let's get straight to today's volatile market.

mike santoli is joining us and to break it down is wharton professor jeremy seegal. >> nasdaq stocks have been underperformers for a while. that led to a pretty good bounce yesterday we were talking about maybe there needs to be a bigger washout in some of the bigger tech names that were underperforming for a while. that's basically what's happening. the low for oday, just over 4100, 4111 or something like that, is just exact ly where it was as a one-month low so what we have net effect, nothing for one month right here kind of looks like nothing for one month right here too, february, march, pull back also, led by the nasdaq. the dow stocks ignored it for a while, kept higher, until one final leg lower by the nasdaq and that also brought the dow down who knows, maybe we're in a similar mood this is a nasdaq that we'll see how much work has been done to work off some of the excesses

that have built up in the nasdaq take a look at the relative valuation of the nasdaq 100 versus the s&p 500 this goes back to 2011 so 10 years. what you see is it's come down this is the forward pe of the nasdaq 100 compared to the s&p it's surrendered this premium that was built up during the pandemic and thereabouts you're back to where we were basically three years ago. still more expensive nobody is saying it's dirt cheap compared to the overall market but you've come more into parity in terms of an overall trend you can decide whether it means everything is expensive or it means the mega cap growth is now looking more attractive. also growth versus value everybody fixated on this relationship look at it going back almost 30 years. so people point to this right here after the peak in 2000 of the nasdaq bubble, you saw growth underperform for years and very dramatically so that meant value stocks were the better place to

be so is this a similar ride? are we going to see something like that multi-year outperformance by value? look, maybe. but i would point out most of the work over there was done by a 60% peak-to-trough decline in the russell 1000 value maybe it holds up and goes down less than 60% and that's why i like it so i do think it's a little more complicated situation. maybe this goes like that because we do have growth that's more profitable and arguably a better position than it was in the year 2000, guys. >> so one of the reasons that gets blamed for this big sell-off we've seen in technology and now that's trickled into the rest of the market is inflation and this debate about whether it's going to be sharp and whether it's going to be sustained and whether the fed will have to do something about it how does that impact the valuation conversation that you just laid out? >> it's definitely pimnching things it's absolutely in the air i think that the problem is, if we want to call it a problem, is investors are going to be

looking at these hotter inflation numbers one way or another. either, a, it means that the fed is not going to be able to stay as generous and will have to pull forward its timing for when it gets tighter, or maybe more likely the market will have to deal with this transitory inflation and that may hurt valuations on an ongoing basis so that's why you have a push/pull right here treasury yields held up, didn't go down when the market was at its lows earlier, so it seems like we're all in position and bracing in advance of this blow, which may or may not come. the nasdaq as we said off its earlier lows the dow still down to the tune of 1.4%. let's bring in professor segal, ch wharton school of business professor. reading your notes, you welcome the rotation i guess you are meaning the rotation to date as opposed to

this bounce-back intraday of growth over value. >> that's quite a turn-around. i don't think the rotation is over i believe value will outperform growth don't forget, you have two tiers on growth. as mike said, most of the nasdaq is not unreasonable. it was just there's a number of those stocks that are not selling at 100 times earnings, 100 times projected revenues they're the ones that are hurt as much and i don't think their reaction is over but nonetheless, i still think the reopening trade is going to be the winning trade this year i still think there's tremendous support for the stock market and it's still going to be going higher from this point >> if professor siegel, we see inflation surprise either tomorrow or in the months ahead, do you think stocks will correct? and do you think that will be a buying opportunity or a legitimate correction? >> well, i think if they

correct, i would be buying don't forget, stocks are claims on real assets and firms are having no trouble passing on these extra costs they're getting on to the consumer look what's happening to profit margins. we may get the highest profit margins in history, the highest beats versus expectations in history. so i'm only worried when the fed really going to tighten and it could be at the end of the year. i listened to stan earlier on the program and he said he'd be out of the market at the end of the year and i was sort of wondering, well, it depends on where this market is if the stock market is up another 30%, i think i might be really shading down on stocks. if it is where it is today, i'd still be in it so i think there's still a good way to go. i'm not worried about early inflation. i'm worried later inflation, the

fed tightening, but we could be much higher by that point. >> so what does it mean ultimately, professor siegel, for growth stocks? the past decade has been dominated by themes like online shopping and cloud computing and digital everything services. that's been the place to be in an era of low interest rates so what happens next is that trade over >> well, i think it will trade over you also have to remember that really the interest rates after inflation are the most important consideration. so i don't think i'm going to be too worried if the fed raises 2% if inflation is 5. that's still free money to individuals. so it has to go up more, and that's usually at the very end of the tightening stage of the fed, not in those early years of tightening so i don't think the challenge is earlier, although the mindset

is as soon as the fed begins to taper, there will be a ripple in the market to be sure. but the real bite won't come until they really stop inflation and that might not be until 2022, maybe even later that year >> what's the three to five-year view for u.s. equities, professor siegel is this a screaming buy or do people have to be nimble with the months ahead >> i think it's a buy this year. i think we've got another 10, 15, 20% and then i think we're going to be into a lower return regime and i think people are going to be looking for value, for defensive sends because fixed income is just not going to keep up with inflation. history has shown, all the research has shown that dividends on stocks do keep up with inflation and that's another reason why i think the value trade will be a good trade in 2021.

>> jeremy siegel, thank you for joining us. >> thanks for having me. >> we'll have much more on the market throughout the show, of course coming up, stan weighing in on the fed earlier on cnbc. >> i can't find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one >> we will ask st. louis fed president james bullard if the fed needs to change its course sooner rather than later in light of the recovery. the dow is down 490 points or so we'll be right back. you're watching "closing bell" on cnbc.

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increased inflationary pressure weighing on investor sentiment. is it time for the fed to adjust its policy james bullard joins us now for an exclusive interview welcome back to the show, president bullard, good to have you. >> glad to be on. >> inflation is the question du juor andit is causing a lot

of angst on wall street. how do you interpret these moves that's spilling over to the nasdaq and now the broader market >> i do think we're going to see more inflation in 2021 i'd say maybe 2.5% to 3% we're certainly hearing a lot of anecdotes from our business contacts about supply chain disruption and other increases in prices, commodities as you just mentioned so i think we are going to see some inflation i expect some of that to hang on in 2022, maybe 2.5% in 2022. so part of that is the fed strategy of being less preemptive than we would have been historically because we are trying to make up for past misses of inflation to the low side of our inflation target. >> so it sounds like you're in the transitory camp. i'm trying to feel out where you are on the transitory scale.

how likely is it that the fed would have to move >> you know, it's a good question some of this is transitory, but not all of it because part of what we're trying to do is get inflation expectations cemented at the 2% target they've been slumping down below target over the last decade and we want to reinforce our inflation target so we want to get inflation expectations up. five-year break even has been trading somewhat higher here, but not at such a high level that i'm worried about it. but i do think it's encouraging for the fed's policy that we will be able to get inflation up and over 2% over the next two years and allow it to be there for some time. >> how big a swing factor, president bullard, for the level of transitory nature of inflation is vaccination rates and if we get above expectations

does that mean we're in a worrying outlook for inflation >> the vaccination process seems to be going pretty well. i would say a good baseline model to have in your head is a technology adoption model, which is always s-shaped whenever you see those curves, they're slow at the beginning, rise rapidly and it's very hard to get the last part of the technology adoption. that's what's going to happen with the vaccinations here but nevertheless, i think it's going very well in the u.s fatalities are coming down dramatically, confirmed cases are down dramatically. so i think that bodes very well for the u.s. economy and our ability to reopen and put the pandemic behind us not as good in the rest of the world, as you know, but going very well in the u.s >> which brings us to the jobs question today we got data showing 8.1 million job openings, a record high

we've started to see wages move up, so there's clearly demand for labor, and yet april's jobs report was disappointing in terms of the number of hirings why do you think that happened >> i think it's just a little bit early to really expect big jobs growth. you've got the pandemic not quite over yet not everybody vaccinated, still at risk out there. it strikes me that for a low wage worker that's been disrupted, it's not that great a proposition right now to tell that person -- or ask that person to come back to work. so i think we're still in the woods a little bit here, but that will all clear up this economy is growing very, very rapidly well above trend growth in the first quarter. it looks like the second quarter people are talking 8% or 9% at an annual rate for all of 2021 i think we'll see rapid growth and continue

above trend growth in 2022 so all of that looks very well i think the labor market will be very strong. even today, i would say you can make the case that the labor market is very strong. if you look at the unemployment to job openings ratio, which is a popular metric of labor market tightness, that's just above 1, one of the lowest readings we've seen and certainly as good as you've got at any time in previous expansions for the most part so that gives you maybe a better picture and is more consistent with what firms are telling us, which is that it's pretty hard to hire workers in this environment. >> so i'm just trying to read into some of the things you said do you accept that an aspect for why those jobs numbers were disappointing was too generous fiscal policy but you're not too bothered by it because it will

be temporary and it will tail off? >> i think it will tail off. i think that affects some people's incentives about going back to work, and also congress isn't mindful enough in my view about the differing labor markets. rural labor markets are very different from urban ones. some cities are more expensive than others. they have kind of got a one size fits all supplemental unemployment insurance policy. that plays very differently in different parts of the country and incentivizes people very differently. so that's a factor it's not the only factor you've got child care issues and other issues that people have talked about i think there's still some fear of the pandemic itself, so that's also a factor >> so are we ready to have the taper talk are youready to have that talk have you seen enough substantial progress in the economic recovery >> i'd like to get out of the pandemic more solidly than we

are today, so i'd like to see these metrics on fatalities per day and confirmed cases go even lower than where they are. i'd like the cdc to come out and tell us that they're more comfortable than they have been. so we'll see if we can get to that point but i don't think you really want to change policy while you're still in the pandemic tunnel even though you can sort of see the end of the tunnel we're not there yet and we've got to push hard to get all the way to the end. >> we played a sound bite ahead of the interview just before the break from stan drukenmiller who says he hasn't seen any history where policy was this out of step with economic circumstances. he said both the fed and the government together are threatening the future of the u.s. dollar as a global reserve currency what's your response to that >> yeah, i don't know how many pandemics stan has lived

through, but these don't come along that often this is the first major one we've had since 1918 i think the response was really good here both on the fiscal and the monetary side. the fed working jointly with the treasury i think put in programs that averted a financial crisis in the march, april time frame of 2020 not just for the u.s. but for the world. in addition, the congress responded with a keep households whole policy, which was that we were going to make sure that personal incomes stayed high enough so that people could pay their rent and pay their bills and live their normal lifestyle while we were trying to get the pandemic behind us that has worked fantastically well maybe we're even overachievers on that where the personal income is actually above the 2019 trend line. so as far as personal household income that the households actually have, they have more

income than they would have had if there wasn't a pandemic at all. so this is, i think, a success of the policy and that's what's enabling us to come to the end of the crisis without a lot of scarring and hopefully put everybody back to work and put this sad chapter behind us >> i don't think anyone doubts that, including stan i think the question or criticism comes from why is that still going on why are we still in emergency mode when we're looking at a potential growth rate this quarter of 10% to 13%, where we should be adding a million jobs or at least we almost did a few months ago per month and where some of that data on manufacturing and housing and services even is coming in red hot. why is the fed and congress still in emergency mode when it comes to pumping trillions of dollars of liquidity and does that risk damage, like asset bubbles? >> you know, i think it's

certainly true that the economy is growing very rapidly. gdp is all the way back to it looks like in the second quarter here we're all the way back to its previous level and start going back -- i'm sorry, start going past its previous level. but the labor market has not completely recovered, still down several percentage points from where it was at the peak and so that's just a reflection, i think, of the fact that we're not quite out of the pandemic yet. once we get out of the pandemic then i think it would be time to look at whether monetary policy can change as far as congress goes, i'm growing more skeptical reading the political tea leaves that they're going to be doing anything more either. >> hmm, that's interesting finally, i just wanted to get your thoughts on the housing market, which is red hot we are seeing now price increases double digits, bidding wars are back. there's a low supply why is the fed still buying mortgage-backed securities

do you worry that the fed is stoking the flames of this hot housing market and hurting affordability? >> yeah, i think it's certainly true that the housing market looks extremely strong i hope that it elicits a supply response you've certainly got lumber prices being talked about a lot here so i think that when the time comes, that's something we could look at. but i think it's too early to talk taper here. we're going to let the chair open that discussion when he thinks it's appropriate. >> there's the head line, too early to talk taper. we've heard it from a number of fed presidents all day long. we thank you for your time, james bullard, president of the st. louis fed. always good to have you. >> thanks so much. >> we've got 35 minutes left in the session. the nasdaq is flat as we speak, the dow is down 442 points. still ahead, tech investor

d dan niles will join us to discuss the growth in tech stocks and where he sees opportunity. we'll take a look at what's driving the moves next check out some of today's top search tickers on cnbc.com palantir topping the list after its extraordinary turn-around. the 10-year, tesla, apple and virgin galactic to round out the top five we're back in a couple the momer a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo - [narrator] grubhub perks give you deals on all the food that makes you boogie. (upbeat music) get the food you love with perks from- - [crowd] grubhub.

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the dow and s&p 500 seeing a big dwrownturn today but fin teh stocks holdings up after a bounce this morning. let's look at who the movers are. kate rooney has a breakdown. >> payment companies had sold off sharply this morning as part of that shift from growth to value, but bouncing back by midday square turned positive after selling off more than 10% this morning. paypal had been down as well both had blowout earnings last week and they're now up more than 1%. paypal now up 2% here. a more traditional payment names, visa and mastercard, have also taken a hit this morning, rebounding as well american express, that is still down 2.5%, so the underperformer there among the bigger payment names. but a different kind of payments play here. crypto exchange coinbase, that had gotten slammed earlier today. but cathie wood's ark invest

coming this to buy the dip the actively managed etf adding 35,000 shares of coinbase to that funding they are now up 3% bitcoin is now positive. it had been down big time. ethereum is down but dogecoin -- >> elon musk did get some for his mom for mother's day let's check in on other individual movers. airline stocks are under pressure american airlines will add stops to two long haul flights out of charlotte, north carolina, in order to conserve fuel southwest says it's flying planes with additional fuel to various airports to supplement local supply. on the vaccine front some movers novavax is delaying its timeline for ramping up vaccine

production and does not expect to seek regulatory authorization for its shot until the third quarter of 2021 so pushing it back u.s. regulators have approved pfizer's shot for kids 12 to 15. that age group could start getting shots as soon as thursday, but the question is will the parents be getting it recent pew survey showed that less than a third of them wanted to vaccinate their kids under 18. >> novavax down 15% today. time for a cnbc news update. rahel solomon has it for us. sirens sounding in tel aviv as hamas fires more than 100 rockets closing the country's main international airport israeli medics say that a 50-year-old woman was killed hamas says that the attack is retaliation for what it claims was israel's targeting of presidential towers in gaza. the u.s. state department says it is deeply concerned by the escalating violence and is

calling on both sides to exercise restraint. a prosecutor in georgia says she is seeking the death penalty for a 22-year-old man indicted for murder in the march shooting deaths of eight people at three massage businesses in the atlanta area six of those called were women of asian descent and the prosecutor says she will ask the jury to call the deaths a hate crime. and out west, an hours-long chase in southern california ended early this morning when a stolen u-haul truck caught fire. the front tires were blown out possibly due to a spike strip deployed by the police the man was arrested after that short attempt to escape on foot and climb a gate you are now up to date guys, back to you. we do have a news alert for you on huawei. . >> reporter: roger wicker has now sent a letter to the ceos of

toshiba, seagate and western digital seeking information whether they have done business with huawei, specifically whether they are sending hard drives developed from u.s. software or technology to the company. in this letter, senator wicker says that this is a fact-finding process that is a precursor to a potential committee investigation. some of the things that they are looking for include whether the companies believe that the u.s.' rules prohibit shipment of these hard disks to huawei or any affiliates without a license, whether they have submitted such licenses to the u.s. departmene prevent u.s. businesses from working directly or supplying huawei we will see how the biden administration approaches this clearly now republicans taking a

stand against huawei with this letter from senator roger wicker back to you. still ahead, palantir seeing a major reversal after first plunging on the back of earnings we'll talk to a shareholder about where he sees the name heading next. more exciting earnings coming after the bell including ea, fubotv, lemonade, quantum scape. as we head to break, a quick check on bonds yields are moving higher today the 10-year about 1.62 nothing extreme. but inflation remains the source of angst on wall street and potentially the reason for the sell-off in bonds pushing these yields higher. president bullard, st. louis fed, just told us not the time to taper we'll be right back.

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just 24 minutes left of the session. the nasdaq flirting with a positive close, but has dipped back to a third of a percent of declines as we speak with the dow still the laggard of the

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a volatile day for palantir. shares on the back of earnings was down 10% in the premarket but reversed course, now up 9% net losses doubled the cfo david glazer said the company is considering holding bitcoin on its balance sheet and said it would now accept bitcoin as a form of payment joining us is roger forte who bought more shares this morning while the stock was down first and foremost, what do you think the trigger was for the shares to turn around? was it the bitcoin announcement? >> no, i don't think so. i think the market came to its census with the fact that the company posted a fantastic quarter. the trend on this particular earnings season given how volatile the rotation has been out of growth stocks, i think the knee-jerk reaction was to

simply sell the news but as investors and the street had time to take a look at the numbers and do a deeper dive, they realized that the quarter was phenomenal and as a result the action shows that in the price over the course of the day. >> so you are buying more shares this morning >> yeah, absolutely. absolutely i actually stepped in premarket and bought some shares considerably lower than where it is right now, under $17. when we look at this quarter, we think it really highlights the scaleability and profitability of the business. q1 revenues are up 49%, operating margins are up 34% but the big takeaway from this number that you have to look at is adjusted free cash flow that came in at $151 million. you have to realize that's a massive beat because the consensus had the company losing $28 million. so $151 million versus a loss of

$28 million and on a year-over-year comp it's a $441 million increase in free cash flow year over year. so i think this really illustrates the fundamental difference between palantir and other software companies that continue to burn cash. this is the narrative that we've been pounding on this company from day one as people question the valuation or the validity of the company. just look at what they have accomplished in a relatively short period of time as a public company. they clearly demonstrated that they will be a profitable company and they are a profitable company as it sits right now, which is unlike a lot of other high-flying companies that can't demonstrate that at this point. >> it sounds like you're really trying to draw a distinction the shares have been cut in half basically, down to 20. they were trading in the high 40s at one point do you think that is a broader move around momentum and growth names and higher valuation post

ipo names or is there some misunderstanding about this stock and the story? >> no, i think the $40 number last year was really -- was just a matter of just the name getting ahead of itself going into the lock-up there was a tremendous amount of buzz around the name i think we just got to a valuation that at that particular point in time wasn't justified. but when you look at what the company has done since that kind of very frothy move to 40 to $45, going into lock-up and i think the last time we spoke it was trading between $22 to $25 now i think i haven't seen it resold but i think it's up close to 20 or over 20 right now so it's really i think comparatively to other companies, the sell-off, taking out that one parabolic move to

40 or $45, but since the lock-up has come off, i think it's outperformed other high-flying things. >> now 20.25 thanks for joining us. >> great. we've taken a leg lower, a little south here, down 550 on the dow. up next, cathie wood selling more apple shares and tesla tumbling on tensions between the u.s. and china we'll hit it all for you in the market zone, which is straight ahead.

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12 1/2 minutes left in the trading day. we are now in the "closing bell" market zone. mike santoli is here to break down the crucial moments of the trading day and we've got chief investment officer steve weiss with us as well. let's kick things off with the broader markets. stocks under pressure but well off the session lows the nasdaq was down 2.2% and it's now down 0.1% the dow remains significantly lower, though, 500 points or so, 1.5% the low of the session is 670. mike, interestingly the start of the day it was fears of inflation hitting the higher priced tech stocks but that's not the story at the end of the day. >> no, it isn't. that was also just a little bit of an extra push lower in a very much wounded group at the nasdaq one way to look at what's been happening is the dow and the nasdaq had diverged by 10 percentage points year-to-date this is a little bit of coming together, that rubber band coming back into more alignment.

it doesn't mean they have to come back to match one another but it does seem as though you had excessive selling for a couple of weeks in the nasdaq names and the dow type stocks unable to ignore it after a while. i would point out the s&p at the lows today was down exactly 3% from its highs so we're talking about a 3% pullback kind of this choppy consolidation period for the overall market even though there's plenty of drama underneath. >> steven, what are you doing? are you buying any of these tech losers >> well, i am adding, but i haven't added today. i added -- maybe i should have added today. my tech names are not the wild high fliers. as a matter of fact, i had a bunch of puts on those on snowflake, actually i sold calls on amazon, sold calls on google and teledoc i had puts on i'm out of pretty much all those puts at this point but the names

i own, skyworks. they're selling at 15, 16 times earnings and down nearly 20% from the highs that sort of makes no sense. in my view you're not going to see the high fliers come back. it was lunacy to begin with. companies selling at 100 times revenue, give me a break when you can buy companies that are in 5g, not just the u.s. that's going and going and going to keep going, went up those 15 to 16 times just makes a lot more sense so i'll nibble at those but i have pretty full positions as it now stands >> apple is under a little pressure today cathie wood has trimming her position on friday we spoke with cathie wood and asked her specifically for her take on apple having trimmed her position earlier that week. listen to what she said. >> what we do as a bull market

extends, as it did last year, we usually put into the portfolio, since we cannot hold any cash, we put into the portfolio i'll call them cash-like innovation stocks so the faangs certainly meet that criteria, they're acting like defensives. on days when utilities and staples do well, very often communication services are doing well so during a period of volatility like we've just seen, we will sell those stocks and move into either a more pure play or earlier stage innovation companies that are being hurt by the risk off. >> stephen, she's not wrong. apple and some of the other mega cap tech names do act a little bit defensive during sell-offs and move sometimes with staples. but the question is, is now the time to be rotating out of them and into the higher growth names

like zoom and teledoc and tesla and everything else she likes? >> i don't think so. let's take tesla, for example. i own volkswagen and i own porsche. porsche owns 53% of volkswagen in terms of the voting stock they sold 130,000 evs in the first quarter versus 180,000 by tesla. volkswagen itself, over 500,000 evs and they have got the market share in china that tesla wants, 29% of the entire market it's selling at seven times earnings, less than seven actually so i think tesla, we keep hearing or kept hearing from the bears competition, competition we've been hearing it for five or six years guess what, it's finally arrived. in terms of the others, they are defensive. now, i own apple it's not my favorite tech stock. it's had flat revenues, basically flat earnings the last couple of years but you can't really sell it if you sell it, you're triggering a tax event that you just don't want. the same goes with microsoft, amazon and google.

they're market stocks. markets go up 90% of the time. these will go up maybe it's a pause here, but yes, you pointed out, it's a great point, they are defensive. they're not going to make you the most money but they're not going to lose you the most either cathie is a prisoner of her strategy last year it was great to be a prisoner of it this year not so good because the market is distinguishing between what's pure folly and what are real earners consistently through all cycles. >> though her ark innovation etf is getting a nice bounce today one stock that isn't bouncing that steve just mentioned is tesla. phil lebeau, why isn't that one bouncing >> some of those questions are coming from china. as you look at shares of tesla today, it briefly touched under $600 a share as you take a look at the stock here, now trading at 619 the report from reuters saying unnamed sources say the company

is rethinking its expansion plans for its gig factory in shanghai they have the capacity to build 450,000 vehicles a year there. they were thinking about exporting some of those vehicles to here in the united states where there's a 25% tariff for vehicles built in china and shipped to the u.s no comment from tesla on this report they do export the model 3 from shanghai to europe remember, they have plants in berlin and in texas that are scheduled to be coming online a little later on this year. so just one story that is out there surrounding tesla today as the stock under pressure once again. guys, back to you. >> thanks so much, phil lebeau mike santoli, talk to us about what we've seen today for tesla versus the rest of the ark complex. >> yeah, the rest of them have bounced. ark does move with the cloud software stocks. those are the price to revenue names that are really at the epicenter of a lot of what ark

owns that has been in sync. tesla moving more on news on the china shortfall in sales although in the morning before the actual official open of the market it was actually really under siege and it bobbed right back up not far from its 200-day average. it's one of those stocks that did actually kind of have a rescue around that level, as did amazon, which is up on the day as well. so definitely a little bit of a fight going on around these levels for tesla, but it's not moving in sync with those other pure software type names. >> earlier this hour -- >> wilf, can i give you one more perspective -- >> go ahead, stephen >> i just want to give you one more perspective on ark. i always look at what the borrowing situation is, in other words, how heavily shorted it is ark is one of the most heavily shorted stocks out there the borrowing costs are 10% or so so it's also a proxy for all those stocks some people look to short that instead of shorting the qs or

smh. so the bounce i think is some short covering as the nasdaq recovers. >> good point. it really has become a proxy earlier this hour we spoke with st. louis fed president james bullard. here's what he said about the fed's tapering timeline. >> i'd like to get out of the pandemic more solidly than we are today, so i'd like to see these metrics on fatalities per day and confirmed cases go even lower than where they are. i'd like the cdc to come out and tell us that they're more comfortable than they have been. so we'll see if we can get to that point but i don't think you really want to change policy while you're still in the pandemic tunnel, even though you can sort of see the end of the tunnel we're not there yet and we've got to push hard to get all the way to the end. >>the fed still very worried about the pandemic, mike even st. louis fed president bullard, who does have a good

eye on the markets and a good feel for what's going on usually is not too worried about the inflation story. so is it the market doesn't believe the fed, that they're going to be able to wait as long as they want to raise rates? >> i don't think the market is outright saying the fed will not be able to wait that long but there is this risk and it's all about probabilities. there is some probability, you can argue about how much there is, that the economy will run so hot and cases will crash to nothing in the summer and you will see markets get a little bit out of hand and maybe inflation starts to flare up even more. i think you have to have one slice of your probability spectrum i think the market is asking that question, not really jumping to conclusions when we say the fed is not worried, it's still far from its stated goals they spent a lot of time talking about their stated goals talking about their commitment to make sure though goals are evident in the numbers and not just anticipated he said our goal is to get to

the 2% target. it doesn't mean that more broadly speaking they can declare victory on that. no early declarations of victory is this fed's motto. >> just over two minutes left, mike the nasdaq is trying to go positive the dow only down just under 500 points. >> it's been actually a little bit of just a range bound give and take market for much of the afternoon here internally still plenty of weakness you see on the new york stock exchange, 2.5 billion shares of declining stocks versus 1.8 advancing. it's a negative skew and the new york is where most of the new pain is happening as opposed to the nasdaq take a look at new 52-week highs and lows on the nasdaq and you see more than 200 new lows swamping new highs it's actually almost the reverse on the new york. the way that this works is that a stock that hits a new high is counted as a new 52-week high or

low. that's why things have built up in the morning but not been added to in the afternoon. volatility index took a trip above 23 earlier, not quite to 24 that shows you a little twitch of concern out there put call ratios also spiked. we're not more than two points off the high so it seems like we're on edge but not panic mode keep in mind you went up toward 30 in late february and early march, sara. >> one minute until the close. take a look at the major averages today is the day the dow gets dragged into the mud with the dow down 489 points. we got down to lower than 600 points, but most dow stocks are lower. we are looking at our worst day for the dow since the end of february home depot, united health care and goldman sachs are the biggest drags. nike and salesforce are rare winners. nike gets an upgrade as far as the s&p 500 is concerned, every sector is lower right now except for materials energy is the hardest hit along

with utilities and the nasdaq actually fares better than the worst, than the rest of them for a change. it was down more than 2% earlier today, a remarkable comeback the nasdaq about to go positive. it looks like just trading on the flat line into the close small caps also down only a quarter of 1%. welcome to "the closing bell," everyone. i'm wilfred frost alongside sara eisen and mike santoli, cnbc's senior markets commentator we finished down 472 points on the dow. the low of the session was down 670, but still a 1.4% decline for the dow. suspected down 0.9%. and the nasdaq down just 0.1%. it had been down 2.2% so a remarkable intraday recovery for the nasdaq materials is the only sector positive on the s&p 500 followed

by tech and communication services which were only slightly negative by the close but energy, utilities, financials all down more than 1.5%. coming up, dan niles on whether he's seeing any buying opportunities amid the recent tech sector volatility plus we're awaiting results from ea, fubotv, lemonade and quantumscape we'll have analysis of all of those numbers once they are released steve weiss is still with us mike santoli, i'll come to you first. clearly we had a big bounce intraday but we're still looking at the vix closing above 21. we're still in quite a negative week so far for stocks. >> right the market is still a little bit unsettled and it's gotten into this mode over the last four weeks. even though the overall at the index level, the s&p level it really was no great drama, there has been a lot of back and forth and churn underneath the surface.

you do have stillsome of the rotational type activity that has kept the market supported. today you had good outperformance off the lows from the growth stocks that had been beaten down and you have profit taking in the rest of it nothing is necessarily altered about the underlying dynamics of what's going on but it's just coming into april with everybody pretty fully invested and on alert for the idea that maybe there was give-back to be had after we get through earnings. that's what the market is contending with and all the macro questions hover out there as well. >> front and center, inflationary concerns. liz ann, what are you telling your clients to do about the inflation kwaquandary, what sto to be in and which to be out of? >> i agree with what mike said with regard to the rotational movement of this market which seems to key off inflation concerns even if it's not in reaction to inflation data and other days are other

explanations i think the inflation picture changed the landscape in terms of broader expectations. that's not terribly abnormal when you see the markets start to price in a really significant surge in economic growth, you move to that lower quality set of areas where the leverage is greatest to the upturn then that eventually gives way to more of a fundamental in this case value factor orientation. so what we've been telling investors is that even though there's always a lot of focus on sectors, which ones do well or not in an inflation environment, we think factors will be more important to leadership and consistency in leadership than that sector decision and i think the value oriented factors which have been a winning strategy for the past year can be applied to not only traditional value oriented sectors, but even value factors have been outperforming within

the growth sectors so in a rising interest rate, rising inflation environment, you want to focus on the factor of value but apply it to every sector of the market. >> stephen, i feel like your commentary hasn't been too bearish and you've been highlighting some of the stocks you do like. when i read your notes, i thought you were very bearish, suggesting people should be in cash and outside of a few stocks you like the nasdaq is doing a much bigger pullback than it's seen so far. where exactly do you stand >> yeah, so i was fully invested, 5% cash if you go back three or four weeks ago. now i'm 25% cash looking to raise it here's why inflation is rising. now, we know what the number -- we know what the expectation number is going to be tomorrow, a hot number, 0.3. you can annualize that the fed says it's transitory but the issue is, the market is not going to believe it's

transitory while it's going on while the fed can sit and wait, i don't think investors will sit and wait it doesn't mean the market is going to crash, i just think your consolidation right now with the buys to downside and that you should have some cash to get back in today was one of the strangest days in the market i've seen you had 10-year yields up but the banks were down. you had the commodities up, iron, ore and copper but cat was down so it's kind of discombobulated. that's what people are saying is i don't know what to do here to me it's more nervousness. everybody is saying don't worry about it, it's going higher or it's not going down. my view is that you've got risk, 5% to 10% risk right here. >> some mixed signals on jobs lately as well, i just wanted to throw that in because we did get this incredible data showing 8.1 million job openings, a record

high record high layoffs. what's going on with the job picture, the shortage issue and what that might mean for the market >> we're looking at a real problem of structural unemployment right now many of the job losers in 2020 don't seem necessarily suited with where the job openings are at then you have the labor reservation price as well. so i think that seeing difficulty in getting workers that will come back and some supply constraints that are in the labor market right now i think this is really going to mean that will this discussion of tapering have to wait longer until the july meeting there's still a lot of slack in the economy. there's still more than 8 million people who are unemployed so i think the fed has sent a very clear signal that they're willing to be patient here and the market will remain focused on inflation because we don't know where the magnitude will be, but we certainly know the direction is higher as well. >> ea is trading down following reporting numbers.

josh lipton has it for us. >> so, wilf, atlelectronic arts reporting q4 numbers here. adjusted revenue $1.49 billion versus expectations of $1.39 billion. ea saying they're looking for 1.25 billion in adjusted revenue versus an expectation of 1.16 billion. for the year, the expectation they say is 7.3 billion versus an analyst's estimate of 6.6 billion. heading into this the stock was down 5% from its most recent 52 4i6 week high but up 22% over the past two months. this conference call kicks off at 5:00 p.m. eastern. >> stephen, do you like this one? >> i'm looking for an opportunity to buy this and hopefully this will give it to me i'm participating in gaming, of course, through microsoft. but i'd like to have a direct play because i don't think it's going away so you may get weakness next

quarter as well, as kids go back to school, go to camp, whatever. but yeah, i think this one is the most reasonable of all that are reporting after the close today. >> liz ann, we're obviously coming off of a stellar earnings season partly because last year at this time we were shut down what are you getting, what are the threads in terms of the outlook and sustainability of the kind of profits and revenues we're seeing >> what's been interesting is coming into earnings season, so before we had the very first report, the consensus expectation was for about 24% growth, which has now jumped to well more than 2x. but you've seen hesitancy in terms of analysts extrapolating those significant gains even into the second quarter, which has a consensus, i think, of about 60% year over year, but we haven't seen that commensurate turn-up in second quarter. so i think there's still some uncertainty and hesitancy for analysts to raise the bar, which

of course means the bar is low enough that we have record-breaking rates. i worry that once we actually get the second quarter results and they're likely to be even stronger than the not raised high enough bar that there might be too much extrapolating into the latter half of the year and we could run into a situation where finally analysts succumb to the pressure to raise the bar at a time where even because of the math of year over year comps becoming much more difficult in the latter part of the year, especially for any goods-related industries, given that goods consumption is well above pre-pandemic levels. so i think we may have some disappointment more on the good side of the economy in the second half of the year even if there's ample strength on the services side. fubotv just out. let's get to julia boorstin with those results. >> fubo shares moving higher on revenues that beat estimates the company reporting $120 million in revenue versus the

roughly $104 million analysts had been expecting you see the stock shooting higher the company also grew its total subscribers faster than expected the company growing to 5 -- over 590,000 subscribers. analysts had been expecting about 528,000 subscribers. and crucially here, and i think this is a key factor driving the stock right now, the company increased its revenue as well as its subscriber guidance for the full year 2021 the ceo saying in the press release here that the first quarter of 2021 was an inflection point for fubotv. back to you guys. >> julia boorstin, thank you still took a tumble from its highs earlier in the year. it's up 9% after hours don't miss a first on cnbc interview with fubotv's ceo tomorrow morning on "tech check. let's get back to the broader markets in the meantime. joyce, what's your outlook for growth around the rest of the world for the rest of this year,

do you think there could be some positive surprises there and some catch-up to be played >> well, europe will catch up in the third quarter of the year, so we had a very disappointing first quarter, but we're looking at close to 15% growth in europe if the market remains very focused on the divergence that we're seeing between the u.s. and china. china, we have seen a lot of the activity momentum there has peaked i think the fact that this is not a synchronized recovery is something that's very not noteworthy you had china in first, then the u.s., then europe. emerging markets will follow that now, in emerging markets, i don't think you're going to be seeing some of that recovery until later into the second half of the year as they get the vaccinations rolled out. so that's where we're seeing more of the disappointments so far this year with china very deliberately, though, going towards policy divergence and more normalization >> liz ann, finally, i just wanted to hit the energy sector

with you because it's either the best performing group or worst performing group in the market today it's the worst, but it's still up 40% for the year with everything going on with the colonial pipeline and fuel prices and just the general mood around the economic reopening. is energy still a good bet >> yeah. in fact we actually just upgraded energy from an outperform rating to a neutral that adds to the financials and health care so we now have three outperform ratings inclusive of energy that said, i would go back to the view that i think it's factor decisions that will add more value, lower case v, than sector-based decisions but on the metrics we look at, macro conditions, valuation, technical conditions, relative strength and general fundamentals, that now screens quite well, the energy sector. >> we'll leave the conversation

there. stephen, joyce, liz ann, good to see all of you. technology outperforming the broader market but the sector has been hit hard recently up next, dan niles on whether he sees a tech turn-around on the horizon and the stocks he thinks are most attractive right now. plus talk about a jobs jolt. mike santoli looking at why the labor market may be tighter than investors and the fed think. ats a good one we are back in just 90 seconds on "closing bell." ...is something you won't regret. craving pizza. personal assistance, 24/7. one of the many things you could expect when you're with amex. with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us.

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s. the dow posted its first loss of up with% in two months, well off the lows of the day and the nasdaq saw a midday recovery finished down just 10 basis points let's bring in dan niles dan, good afternoon to you thanks for joining us. >> my pleasure, wilfred. >> so what do you think the reason was for today's selling is it because you were on the eve of the inflation data and is inflation a cause for concern? >> yeah, i mean i think that's really what's going on with the markets right now is people are waking up to the fact, whether they want to or not, that inflation is going to be a really large problem we actually put a tweet out on it this morning un under @danieltniles and people can see the chart on danniles.com but it shows what break evens are and that's what people think inflation will be

over the next ten years. it's a much better metric than looking at the 10-year treasury the. the fed is in there buying 80 billion in bonds a month, 120 billion net a month so that's artificially low you look at break evens and you're at levels last seen in 2013 all the metrics coming in are running pretty hot and you've got multiple prices at multi-year highs, whether it's lumber, corn, wheat, oil, you pick it. they're all going straight up. the economies aren't even fully open yet around thh is the most overvalued sector in the market and so that's going to continue to struggle relative to areas we like better like banks or energy, which were our top picks coming into this. >> so what will be sufficient to spark a bit of a sell-off? is it just a high inflation print tomorrow or the fed starting to talk about tapering or even about rate hikes

>> yeah, i mean i think it's the second thing that you said all of these are inputs into the fed's decision the fed doesn't want to raise rates. they have said we're going to keep rates here through 2023 we're talking about the tapering question, which is they're buying 120 billion in bonds a month. if you look at it, canada in late april was the first g-7 central bank that said, okay, we're going to taper our bond purchases. last week the bank of england came out and said we're going to taper bond purchases if you look at some of the emerging markets, brazil's central bank has raised rates twice, russia has raised rates twice. you've got i think over ten central banks that have already raised rates this year so the fed can say whatever it wants to, but ultimately at the end of the day if prices keep skyrocketing they're going to need to respond to that. they're going to start talking about tapering and doing it before the end of this year and that will cause a 10% to 20%

correction maybe that's already started because of what we're seeing, but that's my prediction >> is tech still the most overvalued part of the market, dan? some of these names have been slashed, 10%, 20% to 50% off recent highs do you see any buys there in that wreckage? >> not really because, yeah, they're down 10%, 20%, 30% tesla is a great example revenue was up 28% the stock was up 740%. even if it's down 33% from its highs, and by the way in full disclosure we cover around i think half of our short today near the close, i mean it's still way expensive relative to other names you could own. magna international we've talked about before it was one of our top five picks coming into this year. we said it was a much better way to play electric vehicles. i think that stock is still up 30% year to date so for us it comes down to valuation. and within tech, there are names

we really like, like facebook and google we can get into but you have to be, i think, very valuation centric because the world probably for the first time in 13 years since the global financial crisis will have to deal with high inflation, and that changes the playbook completely around what you can invest in. stocks where the earnings are ten years into the future and profits are ten years into the future, they're going to have a really tough time in an environment like this. you're generating lots of cash flow, lots of profits, lots of earnings growth, you're going to do a lot better in this environment. you may still get hit but it's not going to be nearly as ugly as some of the other names. >> what about in the other direction, dan to sara's point, two of your other picks were jpmorgan and the xle. >> we trade around those names and you've had me on before where we've taken off exposure or put exposure back on.

the reason we're so negative on tech is because we think energy prices will go up, agricultural prices will go up, commodity metal prices are going to go up. basically everything inflationary is going to go up because over the last year all these companies have been struggling to stay in business they have slashed dividends, they have cut capex. obviously the movement towards green is not going to help any more supply come on in the u.s. or even globally and at the same time demand is ramping up as we head into the summer i just got my second vaccine shot i can't wait to go to a restaurant, go traveling, et cetera i'm sure you guys are the same way. so energy demand is going to take off and that's going to put more pressure on that. don't forget, energy was down 37% last year, i believe so it's up mid-30s this year you're not even back to even relative to last year. financials is a similar situation, where jpmorgan, one of our top picks, was down 9% last year. it's up a fair bit this year,

but relative to the market, i still think there's a lot of upside as loan growth starts to pick up and the yield curve steepens so we're looking at reopening plays. google and facebook fit into that as well those are two big tech names that we like we obviously have a lot of shorts against that. but that's what we think will hold up better because as advertising picks up from those -- >> really quickly, dan last time you were on with us you said you were buying viacom off the archegos saga and fallout. it really hasn't done much since then is that still a stock you like >> actually it's our favorite stock. we bought more on the way down it's our largest position. the way we look at it is very simple we think this year you're going to have about 4 billion in streaming revenues, up 60% this year you apply netflix multiple to that of about eight times revenue, you end up with 30 billion in market cap alone and that's only 10% of their

revenues the entire company is below 30 billion in market cap. so in the value oriented names, yeah, we like cbs viacom a lot and we are actually still short some netflix and netflix missed their subscriber numbers and viacom beat across every single metric. there's still some archegos shares floating around in terms of people and shares moving around, but we think a year from now the stock should be a lot higher and that's why it's our largest position right now. >> dan, always great to check in with you thanks for storm watching by. >> thank you, guys meanwhile, quantumscape's results have crossed and phil lebeau has got them for us. >> take a look at shares of quantumscape which indicated higher after a company reported a wider than expected loss of 20 cents a share. this is a thinly followed stock in terms of the analyst community. the estimate was for a loss of 7 cents a share. they're still prerevenue so

there's no revenue there in the report from the company, they say that they are increasing their spending this year to 260 to $320 million but they expect to enter 2022 with better liquidity, approaching $1.3 billion as they make progress on their prepilot line for the next generation of batteries. the conference call starts at 5:00 we did not see any reference in the earnings report that was released so far regarding the scorpion capital short seller report and a reference to the s.e.c. asking questions. remember, scorpion capital came out against them and said, look, these guys are nothing but a pump and dump scam but there's no reference to that we'll see if the ceo of quantumscape has anything to say about that during the conference call, which starts in about 35 minutes. guys, back to you. >> it has been kind of a battleground stock since then. phil, thanks let's go back to mike santoli who has a closer look at the labor market after the most

recent jolt survey showed u.s. job openings hitting a record high these numbers were really a blowout. >> more than 8 million open jobs right now, according to employers help wanted. this is a ratio of the number of unemployed to that number, to the number of job openings it basically means anybody who's just not on temporary layoff plus those who are working part-time but don't want to, they'd rather work full time it's right around just above 1 jim bullard of the st. louis fed mentioned it in the last hour. this is almost back to pre-pandemic levels. almost one open job nationally for everybody who is currently unemployed it definitely tells you that we're in a different situation than after recessions. just an enormous amount. the stock of unemployed people had to be whiltsed down. so many business failures, very few help wanteds in the early 2000s, you had a little more carnage on the corporate side that depleted the availability of jobs that's not the case so it goes

to that point we are very quickly back to a place perhaps where we have a tighter labor market than we would necessarily think given the stated level of unemployment and basically how bad things were last year as well >> mike, thanks so much. still ahead, the dean of valuation on whether tech stocks are starting to look cheap after their recent sell-off. plus ea shares moving lower. we'll get an analyst's reaction as we count down to the company's earnings call. in the romo household we take things to the max oh yeah!

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electronic arts is falling after hours a bit on the back of reporting earnings despite the company's revenues beating expectations let's bring in brandon ross who covers this space. brandon, what did you learn about the view forward we knew this was going to be a strong quarter, right? but what do we know about how sustainable it is. >> yeah, that's correct. coming out of what we saw yesterday from roblox which remains our favorite company in the space and activision, the forward gieuides showed no let-p in the tailwinds that we've seen from the pandemic.

looking towards more of a permanent situation. but honestly, the ea guide was a little light, particularly to us on the eps side. >> why is that is that a problem in general with video gamers just going out as the economy reopens or is it something specific with ea >> no, i think it's something specific with ea the top line guide was fine. there was definitely something on the cost side we're not exactly sure what that was. and also there's just questions surrounding ea as they embark on this next fiscal year. first of all, they're going to really press further into mobile, especially with the launch of apex legends on mobile we're not sure what that's going to look like they're probably not that sure either, which is reflected in the guidance, number one and number two, they have battlefield coming for the first time in a few years, and the

shooter space has gotten very crowded, especially during the pandemic, where you've seen players really gravitate towards and engage more in the games they were active with. battlefield -- ea's battlefield wasn't there, so it's an open question as to how it's going to perform this year. >> do you welcome that mobile strategy, brandon, and the acquisition? >> absolutely. i think that in order to reach the next say billion players that are out there for the console focused publishers, they're going to have to get mobile and translate their ip to mobile the question here, ea is doing the right thing in its focus the question here is going to be on execution they have had some execution shortfalls out in mobile in the past hopefully as glue comes in, they can help out a little with that. but ea is going to have to allow

glue into the different game silos and let them work their magic. >> brandon ross, thank you for your quick take on electronic arts it's down only 0.6 of a percent in after hours now. still ahead, investors bracing for what could be the biggest year-over-year increase in consumer prices in a decade details coming up. plus, nyu finance professor on how inflation fears could impact the stock market and your investments. check out viacom after hours getting a bit of a lift after dan niles just told us a few moments ago it was his favorite stock, up 1.44%. we'll be right back.

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the nasdaq has been the story. today it bounced back from earlier lows closing lower by less than 12 points. is that being on flat? not quite. >> no, it's nine basis points away. >> 2.2% lower at one point today. despite the rebound, the tech heavy index is down 4% this month. is a greater correction on the way? let's bring in a finance professor from nyu stern school of business, often known as the dean of valuation. it's good to have you. what do we need to know about lurking inflation and what that could do to multiples? >> i think inflation remains the biggest worry, but we're in a moment where three forces have kind of conspired to keeks

where they are risk-free rates are still at historic lows. risk premiums have come down and everybody expects growth to be amazing this year. but those three forces are at odds with each other because if growth is as good as people expect it to be, inflation and interest rates are going to go up that's the challenge for markets, is how do you reconcile these dueling expectations about low risk-free rates and high growth >> so how do you how do you treat stocks that have been beloved for years and haven't made profits and just have these great expectations about continuing very strong revenue growth and ultimately profitability? >> low risk-free rates and low risk premiums help growth companies because everything is in the future. the lower rate you use, the more value you attach to growth so the first line of defense when interest rates go up will be those high growth stocks where you're going to feel the pain first but it's not going to be

restricted just to them. because you're making money doesn't mean you'll be protected when inflation comes back and interest rates rise. in my view there's no safe place to be in stocks if inflation makes its comeback that's why i think that whether the fed has any control over where that inflation number goes >> what is your current assessment of investor behavior and positioning? is that something that adds to the concern and outlook or something that keeps you relatively relaxed in the short term >> it's like telling a story where every part of the story sounds plausible but you bring the parts together and the story overall doesn't make sense if you take each part of the story, you can give a good rationale why rates are low or growth should go up but you bring them all into the same story which is what investors are doing and it becomes very difficult to reconcile those three pieces in the same story so in my view, and i think part of this is the fact that

investors seem to have forgotten what inflation can do to a market most investors are too young to remember the last time we worried about inflation. and i think they think about inflation as something the fed can control, but from my perspective, inflation is a genie in the bottle. once it gets out, nobody is going to be able to put it back in the bottle without substantial pain >> is that what you think we're really looking at here, that kind of scenario >> i think it's a very plausible scenario i think it's going beyond the usual suspects for the last decade you've had people that cried wolf as every chance they have but there are people who you would assume would be on the right side of this argument saying, you know what, you've got to worry about inflation larry summers said it. janet yellen briefly mentioned it but walked it back very quickly. i think that the worry about inflation is real because we can see it all around us we can see it in housing prices, we can see it in our food

prices, we can see it in commodity prices and you can use covid as an excuse but only so long before you say there's a real problem here and we've got to deal with it i go back to the 1970s for a while people used the oil embargo as the rationale for why inflation was going back then once the oil embargo faded as a factor, inflation stayed high so you can't keep using covid as an excuse for why prices are surging. >> what would be the kind of market response if inflation for let's say just two months in a row does surprise to the upside relatively significantly is that enough of a trigger to lead to a big pullback or would that only be a small pullback waiting until we see the fed hike rates >> i think we can live with higher real growth if the economy does really well, i think the market can live with higher rates if inflation is the reason rates go up, i think the effects are much more significant. i think you'll see a significant correction in stock prices if

inflation is the culprit that's why people have stopped looking at growth numbers and are looking at inflation numbers because that is really the worry that markets have right now is can we keep inflation under control. if we cannot, then we have a real problem on our hands. >> so where do you want to be? treasuries aren't really acting very safe right now. >> if you're going to stay in stocks, go to the old fall backs when inflation goes up commodity stocks, consumer product companies which pricing power has inflation on but the reality is financials don't do well, stocks, bonds even real estate is tied to stocks and bonds that was our old fall back in the 1970s. so i think there are really no safe places. you've got to accept the fact that some of the gains you had, and that's really the benefit you've had is after a long bull market even if you lose money, you're not going back to where you are in 2010, you might go back to where you were in 2018 and

that's not a bad place to be i think we just lose perspective because we've been in a bull market for so long. >> and haven't seen inflation in a while to your point. thank you for joining us appreciate it, from nyu. time for a cnbc news update with shepard smith hi, shep. >> hi, sara, thanks. here's what's happening at this hour we're starting to see some real world effects from the cyberattack that temporarily shut down the major east coast energy pipeline. some gas stations in virginia and north carolina are running out of gas cars lining up the at ones that are still open but the white house today insisting this is a temporary supply crunch, not a crisis. unnecessary panic buying what we're seeing gas prices are already at an average of six cents up per gallon nationally and expected to go higher as the memorial day weekend approaches. in other news, the man in charge of the pentagon during the january assault on the capitol will tell congress that he was afraid that sending troops to defend the building

would raise fears of a military coup the associated press reports christopher miller's testimony tomorrow to a house panel will cite what he calls the defense department's extremely poor record in supporting domestic law enforcement during protests in the 1960s and 1970s and developing right now, a major escalation of the conflict in the middle east what began as a land dispute in east jerusalem has devolved into the worst violence since the 2014 war there hamas firing more than 130 rockets it reports on israel an oil pipeline struck, and fires now in the streets way to the north in tel aviv. israeli forces have struck targets in gaza. at least one apartment building has collapsed on itself. minutes ago the israeli prime minister, benjamin netanyahu, spoke to the nation vowing hamas will pay a price and that their blood is on their hands. clearly a developing situation and our coverage will continue tonight on the news right here

after "mad money," 7:00 eastern, cnbc wilf, back to you. >> shep, thanks so much for that. up next, big headwinds ahead for telemedicine teledoc shares jumped during the pandemic but it's well off its highs of the year. we caught up with the ceo about what he's forecasting amid the reopening. as we head to break, here is another check on the after hours movers we're back in a couple of minutes.

we've got an earnings alert on vizio courtney reagan with the details. >> hi there, sara. shares of vizio are dropping here sharply after hours on the company's first report as a public company they are reporting stronger than expected revenues of $506 million. the street was looking for $484 million. up 52% year over year the actual number reported. the biggest disappointment is the smart tv shipments of 1.5 million. that was more than 100,000 shy of what the analysts were hoping for from vizio shares down now more than 6%, but had fallen as much as 10% after hours. the ipo price was $21, so

holding just below $26 still above the ipo price. back over to you >> court, thanks so much for that. up next, the future of virtual medicine t teladoc's ceo coming up. the major averages finished well off the session lows for the nasdaq the dow was wndo 1.4%. "closing bell" right back.

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teladoc getting a big boost in business but has seen its stock decline this past year bertha coombs caught up with the ceo as part of the healthy returns summit what did he say? >> the ceo says the pandemic certainly propelled telemedicine beyond stay-at-home urgent care and consumers now have higher expectations >> we just did a study, and consumers, seven out of ten consumers, found the multitude of health care websites, apps, platforms to be overwhelming what they want is a unified experience for a broad array of conditions >> but investors are worried about so much competition now in the telehealth employer market amazon's launch of amazon care, cvs' offering that includes its minute clinics and walmart

buying telehealth service to augment its service. >> if you look at our 2020 selling season, about two-thirds of our bookings were multi-product bookings i think that really speaks to the market demand to the market demand and consumer demand for unified, integrated solutions. >> when it comes to the competitive threat, he told me amazon care right now is overrated. sarah? >> bertha, what did they learn, this company and other telehealth services during the pandemic about what works and what doesn't that they can bring with them to a more normal world where people see doctors in person. >> they want to see doctors they know that's why they embrace mental health care. that they can do with the same person that's one of the reasons they're all pushing towards more

augmented primary care that is where this is moving people don't want to do a one and done. >> thanks so much for that still ahead your earnings run down, kamala harris soaring, what is driving big moves higher, ahead on "closing bell."

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next, wall street look ahead, american consumer prices expected to take its biggest jump expected to climb 0.2% in april after rising 0.6% in march. prices are projected to jump 3.6% from april last year following 2.6% increase in march. that data due out tomorrow at 8:30 eastern time. no question, mike, that was the story of the day today there was some worry

i guess if we do see an outside inflation read, consumer prices rising, how many of those string together make a trend ha could be worrying for valuations and things in the market. >> first of all when we get this released tomorrow a single month hot reading that is transistory and fleeting looks exactly like a trend so in way to determine if this is a blip or not another thing to keep in mind, this is very much a washed pot and unclear it will boil on time for everybody geared up to say this is the time to start worrying about inflation i don't know we'll have to wait to see. some estimates say 0.5 month on month increase, and that would get people's attention and bond market couldn't stay come but it but in general we're not going to panic over this preemptively. see how it plays out

going against april 2020 which was a completely locked down economy. it will be interesting to see which way people are leaning the inflation beneficiary stocks were down more than the deflation airy type stocks in tech. >> nrpg energy and banks the worst sectors with yields at an all-time high. >> which is really a trimming around the edges against the prevailing trend which had been all about people rushing towards the reflation sectors for months now. so i do think you have to take one day's action with a grain of salt and see where this goes i don't think tomorrow will give you a clue about fed direction might give a clue whether people are susceptible to overreact to a single month's number. >> the nasdaq down 2.2% did feel today more like a wash out than other days because it dragged all of the other major averages

in is there a tell for one stock or something that you're watching to see where the mood is there >> the tells are tentative i said this morning amazon and semis if they bottom and rally shows there might be something behind this and they did but it didn't bring the nasdaq up with it i think it's nip and tuck. down 8% from the this morning's high >> we're out of time on "closing bell." "fast money" starts right now. i mean, melissa lee and this is "fast money." tonight's trader lineup guy adami, tim seymour, karen finerman and pete najarian tonight on fast we're following after-hours actions of ark. we'll bring you the headlines. palantir stock finished higher find out what drove this turn around later, it's trader's choice, breaking down three big movers on today's session we start with a fast money first, yes, a first, we're