that's where the pain point is in the market. >> ari, thank you so much, we appreciate your time today and your insights. melissa, great to be with you. thanks, everybody, for watching "power lunch." we'll toss it over to "closing bell." the dow is up 407. have a good weekend, everyone. >> tyler, melissa, have a great weekend. welcome to "the closing bell." i'm wilfred frost along with sara eisen stocks looking to finish off a roller coaster week in the green. modest declineses o on the week reopening names are winning on the back of the cdc's new mask guidance airlines and cruises are higher. the tsa said yesterday it screened the most amount of passengers since the start of the pandemic data is front and center retail sales coming in flat for april. missing estimates of a gain of 0.8%. consumer sentiment below

estimates. crypto seeing a rebound. dogecoin is leading the gains. we will discuss that later in the show 59 minutes left in the session the nasdaq is up 2.5%, sara. coming up on today's show we'll dive into the weaker retail sales number with the president of shopify and ask whether today's number matches what he sees from the consumer. plus should you buy on the dip in disney. one analyst says there's a lot to like. let's get straight to the big stories we are watching. one hour left of trade joining us to talk about retail sales miss is morgan stanley chief economist ellen. mike, start us off. >> a very broad comeback today, sara yesterday was an imperfect bounce a lot of times the market is

under a lot of stress. there's a lot of waffling back and forth. it came in today and they clicked on the machines and said volatility is coming down, sentiment got a little too nervous and we're going to buy them up. closing a gap down from monday's high right now 4178 you see this looks a lot like these other dips that we had along the way. 3% to 6% that doesn't mean it's over but it's very similar in the sense that there was one focal point of the decline, whether it was the gamestop insanity, whether it was the flare-up in inflation this week or whether it was yields going to new highs back in february. basically the market reasserts the trend after a little while that's so far the way it's acting take a look at the put/call ratio. a real surge in the number of puts being bought relative to calls. people are concerned about immediate downside, hedging

their risks. this is well above what we saw in the other little pullbacks this year. these are coming off of historic lows so this is not a high level in absolute terms, it's just high relative to the modest pull back we got in the indexes if you look at the exposure of the national association of investment managers, this came down from over 100 down toward 50 basically they really pulled in their risk this is probably why people feel confident that we've reset sentiment and positioning a little bit if you got the soft data today, it seems like not as much concern if there was concern after the inflation numbers, guys. >> treasury yields are retreating a little bit, mike. commodities are kind of mixed. it seems like those are two places the equity market are taking their cues. what's your take >> exactly a lot of things across the asset market front went to extremes. they went to extremes in a way

that you had to kind of pay attention to what the message was. if it was going to be an overheat or just more friction in the economy because of bottlenecks and shortages and things like that so you do have a little retreat a little bit an equilibrium it was enough to get some traction and close a little bit more of the gap that we had open up over the three-day sell-off. >> ark innovation etf up, but still down 5% for the week. the latest economic data showing the recovery may be slowing down consumer sentiment 82.8. retail sales holding flat compared to expectations for a little increase. the weaker data following inflation in april seeing its biggest jump since 2008. let's bring in ellen

i've heard the bull case and the bear case on all of these reports and that is the economic recovery is still very much intact and booming is there anything in any of these numbers that concerns you? >> well, you're going to hear a lot of takes on this because the data is all over the place and that's really what's to be expected right now there are so many distortions around covid when you're trying to get a $20 trillion economy back on track, you're going to get data all over the place so what do we make of it retail sales has been really knocked around this year by the timing of stimulus checks. so march -- look, march was revised even higher to just explosive sales because that's when we got the bulk of the latest round of stimulus checks. naturally you would have a payback of some of that in april. the sentiment numbers were down and people were clearly worried about inflation and that was driving that but what do we make of the inflation data this is to be expected that we were going to have this

near-term surge. the jury is out on how far we come off of that surge in the subsequent prints. and finally in the jobs report, you had on the one hand weaker-than-expected job gains which could be a one-off but higher employment costs or labor costs because employers are having to pay up to get people back to work we've seen other data that's corroborated that. so there are a lot of underlying distortions here that often point in different directions, but none of this on balance has me concerned about the viability of the outlook. >> and retail sales while they were unchanged, they were unchanged at a level above 10% so we're clearly above 2019 levels the retail stocks are up today what about that confidence number falling on rising inflation concerns how is the fed likely to look at a number like that >> so the fed balances all inflation expectations, but one distinction that they do make which you can also see in the marked-based measures as well is

that one year inflation expectations or short-term inflation expectations have risen much more sharply than longer term inflation expectations households can see what's right in front of them and what's coming around the corner as itry to get out to fly to see family this year, everyone else is going to try to do that too and those airline prices are going to go up so they know these higher prices are going to come. there's less confidence that the higher prices will stay over a longer period, but still those inflation expectations have also risen. what the fed does is they try to look at a holistic picture of inflation expectations and they have a measure they refer called the common inflation expectations which has 21 different measures of inflation expectations in it unfortunately, sara, it is a quarterly measure. as you know, markets like higher frequency. the fed doesn't operate at a higher frequency right now that inflation

expectation's measure that they like to follow is showing them that longer term inflation expectations are still pretty stable, so it's not yet cause for concern. >> ellen, what are the chances that the fed doesn't mind if it does end up being a little bit behind the curve, given that the immediate reaction might be that the market pulls back but that the economy doesn't and they're willing just to play that game to make sure that they don't choke off the economy in the short term >> well, it's a great point. last year certainly we saw the markets disengage from the economy. and this year what you could be seeing is just the exact opposite and you can't have a fed that reacts toevery market movement or you would have a fed that is making high frequency, bad decisions on monetary policy so when we get one weak unemployment report, they can't react to that, they have to wait for more

as we heard from a vice chair this week, he's been disappointed on the labor market data which means they'll have to wait for more prints to come in to be sure the trend is not accelerating and most likely that delays how they're thinking about the tapering of their own balance sheet. when do they start taking their foot off the gas pedal on inflation, you can say the market is very excited and worried about inflation but the fed is not yet worried about inflation. as you noted, they want to see inflation higher they want to see it higher and sustained higher so far, things are moving in the direction that the fed wants to see. the market is extrapolating in a linear fashion saying inflation is here and it's only going to get worse at the same rate and that's really gotten the markets jittery. >> maybe by the time we get to the fall, inflation will tail off again, but what are the chances, ellen, that the

inflation begins with a 4 in front of it for the next, let's say, two months? >> i think we probably absorbed most of the upside shock in the april data that came this week so april and may, which is data that's being reported this month and next month, we're expected to show this near-term surge we've been warning investors, expect it to surge to the upside, however far you can imagine. so of course we saw a big upside surprise even to those expectations in this latest report what that does, it takes some of the steam out of the next report which would still be high but not as high as this latest report then we start to move out of this range where we're comparing back to last year where we took the biggest disinflationary hit to the economy so pushing up the numbers just from that easy year-on-year comparison will be coming out of the numbers. so there's not a whole lot of prospect on core inflation to get a 4 handle in front of it by

the end of the year. core inflation is a generally slow-moving beast. but does it remain elevated? yes. we remain above consensus and above the fed on our expectations for inflation particularly when you look at factors like labor costs that we do believe are more sticky and will show up in the data in the way of price tolerance households are incredibly price tolerant right now, which means businesses will be able to pass on those higher input costs from labor and other inputs. >> speaking of labor, i wanted to ask you quickly about wage increases. mcdonald's this week raising wages for more than 36,000 of its employees that work in the company stores, an average 10% increase we've talked to the ceo of denny's on this show what is the deal with these labor shortages at a time when there are so many millions of people still out of work >> it's a good question, sara. i think we could point to many different factors but not be able to assign how much is owed to each of those factors

certainly there are lingering health concerns about returning to work despite cdc updates on it being safe when you're vaccinated you probably still have some lingering concern there. now, what also allows you to make the decision to hold off on going back to that job might be added benefits, unemployment benefits that allow you to financially match the decision to stay out of the labor market. you've got uneven school openings and school hopefully open in the fall which is keeping a lot of women with children out of the labor market i can point to a host of issues as to why labor is not there to fill positions when there is so many millions out of work. it may be that it's not until later in the summer, say in august, when all of those benefit programs are expiring just about all at once, september 6th. so i'm going to get out and start looking for a job starting in august because i'm pretty

sure the jobs will be there. >> ellen, great to see you thanks for joining us. >> thanks, guys. have a great weekend coming up, there's plenty of green on the screen today with one notable exception. disney is getting hit after streaming growth missed the mark we'll discuss whether now's a good time to buy that's coming up next. you're watching closing bell on cnbc my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.

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disney shares in the red after the company reported its disney plus subscriber growth slowed and missed wall street expectations however, the ceo telling cnbc last night it's what they have expected. >> we've added 30 million new households to disney plus just in the first six months of the year so we're extremely bullish. in fact these numbers were

exactly what we projected internally, so no disappointment here. >> the slower subgrowth is similar to what netflix saw. however, netflix average revenue per user in the u.s. and canada was more than $14 per month. disney saw less than half of that with a lower price point. let's bring in jessica urlich. she has a buy on the stock, a $223 price target. very good to see you, thanks for joining us i guess the first question is to what extent people are starting to draw the conclusion that the rapid growth in disney plus subscribers was pandemic related rather than long-term sustainable structural related >> i think today's miss, the reaction of the stock seems a little overdone. the sub numbers were just a million off of our estimates estimates have been all over the street we all just heard bob chapek

said it was in line with their numbers. disney doesn't guide to sub numbers so they're at 103 or 104 subs in just over a year they must have reiterated four or five times last night on their call that they still maintain their guidance of 230 to 260 million subs by fiscal end 2024, five years after launch our projection is 250 million. i just think it's a slight miss versus expectations, but it's enormous growth. this is before they really have all of their product flowing remember, they couldn't produce but planned to because of covid. >> so to what extent, therefore, do you think that the share price pullback is overdone, but compared to the fact that it is fairly richly valued and not all of the business lines are growing as fast as the disney

plus subscribers are >> that's the key to the story if we all believed the economy is -- you just had a piece on inflation. the economy is heating up. what better way is there to -- who better to invest in than disney as the economy reopens. so pre-covid, 50% of operating income came from the theme parks, demand for travel and demand for disney's parks specifically is incredibly strong one of the things said is it's above 2018 levels and that's not including international visitors who still can't come so with capacity restrictions easing, instead of 6 feet distance, it's 3 feet and because they're putting new technology in the park, they can get more people in and out more efficiently, their costs are coming down. so the bottom line is theme parks are just beginning to recover. we will see that over the next quarters and years that's where the surprise will

be this enormous leverage in the theme park business, it's largely fixed costs. when demand is strong, which it probably will be for the foreseeable future, we'll see really strong growth so historically whenever there has been a recession or a pullback in attendance, whether it was 9/11 or the economy, there's a five-year -- once the parks pick up, there's a five-year growth curve. >> do you think that's already in the stock, jess i know they were happy that you don't have to wear masks at disney world in orlando in 95-degree heat and that could mean more capacity inside the parks but do you think that recovery story of parks is already in the price >> i don't think people remember honestly, i don't think people remember how much they can surprise on the upside there is so much leverage in this business, so they can go from under a billion this year to 6 billion plus in operating income in a year and there's a

five-year growth curve i think the demand is -- let me give you another example their cruise ships, obviously they're not running right now, but they're going start selling tickets for a cruise that's like a staycation people can't get off the boat. and the demand is crazy. but that's just one of their businesses it's a big one, which is why, of course, it's important to talk about. but all of their other businesses are just opening up so television production, film production and distribution, movie theaters are opening up. broadway disney is a very big producer of broadway all of these things will be very, very positive for disney stock. we're talking about disney plus like it's a disappointment they missed a number in one quarter. disney plus is a massive success. if you put it in the scheme of where direct-to-consumer will be, i think most people in the world would think that the primary funds will be netflix, amazon, disney plus and the

other companies you can trade around, turn in and turn out of. this is a really good story. the hulu and espn plus numbers were also very strong. >> a full-throated bullish case on disney. jess, thank you for joining us. >> thank you >> with the stock down 2%. the dow is up 400 points it's one of the few red stocks in the dow right now goldman sachs is adding the most, 68 points, to the dow. up next, the new new yorkers. there's been much talk of an exodus out of the city, but there are actually tens of thousands of people looking to move in or buy for the first time we'll bring you those new stats, next. as we head to break, check out some of today's top search tickers. the 10-year yield right on top yields are moving lower today, followed by disney off the earnings move. tesla, coinbase and dogecoin dogecoin higher with tesla coinbase has given up meso of its gains after a good earnings report we'll be right back.

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welcome back throughout the pandemic we've been hearing stories of people rushing to leave new york. but it turns out there are tens of thousands of new new yorkers moving in. rob it ert frank has a look at t it means for the real estate market. >> sara, more than 20,000 people moved into manhattan at the beginning have the year, many attracted by lower rental and real estate prices april saw the highest number of new rental leases on record with over 9,000 new leases.

rental prices were down 21%. landlords giving an average of more than two months of free rent we talked to a new arrival who found a two-bedroom that used to rent for $7500 a month and he got it for only $5500. take a listen. >> kind of spent my whole life drooling at the skyline and dreaming of the day i'd finally be able to live here. >> now, apartment sales also recovering with over 6,000 sales contracts signed so far this year that is the strongest start to the year in over a decade, guys, so a lot of now people finally able to come to new york starting with real estate recovery. >> let's hope the trend continues. still to come, we'll speak with the ceo of ftx exchange about the wild week of bitcoin and the outside influence that elon musk has had on crypto.

here's a check on bonds. yields a little lower after a spike earlier in the week. 1.635 on the ten-year. we're back in a couple

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mmm, birthday cake. pure protein bars and shakes. for every fitness routine. 30 minutes left in the session. let's check in on some individual market movers shares of aurora cannabis dropping today after reporting weak results yesterday after the bell the company cites challenges in canada due to pandemic restrictions such as consumer access to in-store retail shopping the stock down 7%. fisker has finalized a deal to make electric vehicles in the u.s. in 2023 four states are under consideration for a new plant and we'll ask the ceo when he joins us on monday in a first on cnbc interview. time for a cnbc news update with rahel solomon. as israel continues to target hamas sites in gaza in response to rocket attacks, the biden administration is trying

to de-escalate the conflict. they are trying to use their relationships in the region to find a diplomatic resolution but they are saying israel has a right to defend itself. after three days barges are moving on the mississippi river near memphis the discovery of what's being considered a significant fracture in a bridge over tennessee and arkansas prompted the halt on tuesday but the coast guard says it is safe to travel under the bridge. vehicle traffic on the bridge is not allowed. some gas stations as far north as washington, d.c., still don't have any gas as panic buying magnifies supply problems caused by the colonial pipeline shutdown now that the energy is flowing again the white house is assuring people that most affected areas will get fuel shipments over the weekend and into next week. check out this incredible video from the chicago fire department you see this black cat there jump five floors from a burning building and then just walk

away sort of hops and then walks away the feline now known as h henn hennessey, the flying cat, has not returned home. i guess that's why they say cats have nine lives. sara, back to you. >> that's crazy. only cats can do that. >> springy legs. that's insane. >> rahel, thank you. >> almost as scary as horses, which we'll talk about later. >> that's a weird thing for you. wilfred is afraid of horses. >> terrified. we've got about 28 minutes left before the closing bell the dow is up 375 points we're off the session highs which were just over 400 points, still growing strong s&p up 1.5%, nasdaq up 3%. we are tracking our worst week for stocks since back in february the s&p 500 looking at a decline of more than 1%. straight ahead will we see more shoppers move away from e-commerce and back into physical stores? we'll ask shopify's president

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the investment management business of prudential. retail sales flat in april following a surge in march consumer sentiment also coming

in today getting hit on inflation concerns let's get a closer read on the consumer now shopify's president, harvey finkelstein joins us harvey, it's great to have you what are you seeing from the consumer across all of the e-commerce businesses that you serve. >> sara, great to be on the show as always. first let's start with the retail numbers and then talk about consumer preference and the big shift that really happened there first of all, the latest retail numbers i think underline the importance ofentrepreneurship in the economic recovery so while the latest numbers show no changecompared to last month, we see the spending remain steady and i think that's a positive sign. in march we saw retail sales grow 9.8%. that's following another round of stimulus checks showing that consumers have this urge to spend as we begin to emerge from economic turmoil but retail is not just about big box stores i think it's clear to a lot of us consumers that entrepreneurship and independent

brands that we love will play a key role in economic recovery and will be a major driver of this momentum. we don't anticipate any decline in terms of our version of retail i think the other part of this is consumers are increasingly voting with their wallets to support these independent brands these merchants will continue to play a role as we open up. we're seeing more brands enter the market than ever before. and now shopify, our american appe -- we're a proxy in independent retail so i think that will continue on the consumer preference side, i think we've all seen massive shifts from covid. i think a lot of those preferences, those shifts, will remain the biggest one, however, is that the center of gravity will be online. modern brands, modern retailers who want to sell to consumers have to sell across every single

surface area that means that consumers will want to shop wherever it's convenient for them and that will also mean offline commerce. consumers care about conscious consumerism and i do not think direct-to-consumer will be a fad. i think it's going to be steady state. >> so obviously this is your business and you believe in the secular shift toward e-commerce and online spending. but no doubt the pandemic drove huge traffic gains across all of these businesses online. you don't expect any decline from these levels as the economy reopens and people can go to stores again >> the way that we look at retail is not channel based. we think the future of retail is retail everywhere. we don't just do e-commerce, we do offline commerce. facebook, instagram, pinterest and tiktok so we think if a brand wants to sell to modern consumers, they have to sell absolutely everywhere e-commerce still has massive runway remember, we're still sub 30% in

north america. it is higher in the uk and higher in china. but e-commerce as a total of sales is really low. if you look at australia or new zealand. it's not a proxy for the rest of the world but does provide some insight because they're on the other side of the pandemic we have not seen any slowdown on shopify from consumers buying from our merchants in fact online remains at elevated levels in those places. >> what about new business launches, harvey do you think that has been driven -- pickup has been driven by the pandemic and could that even if it keeps going could plateau as we get back to normal. >> in 2020 the united states had a record amount of business registrations. we had a record number of new entrepreneurs enter the retail space more than ever before. certainly the pandemic did accelerate that. it acts as a catalyst for it a lot of those businesses that we saw created during the pandemic are going to last long after the pandemic i know you're all in new york

city and there's restaurants opening up now a lot of those restaurants created either wine shops or to-go businesses or meal kit products that's not going away. they now know that there's an entire new sector of their business and they'll double down on it. what i think the retail numbers from april show is that more traditional retailers need to think about their business as retail everywhere, selling to wherever the consumer desires it to be. >> and, harvey, do you have any idea with these people launching new businesses on your platform whether that is their sole focus or whether people are giving it a try on the side while they have another job perhaps they should they will have two jobs permanently and is that something we should think about in the economy long term if people are able to do two different careers or jobs at the same time? >> it's a great question, wilfred. in the last quarter shopify saw lord & taylor craft mizuno, chex

cereal launched on shopify but the majority of merchants are new entrepreneurs. yes, some of them started their store, their business because they wanted to supplement their income they needed to replace their income if they lost their job. a lot of them will continue long after the pandemic the question is, is all of this going to be side hustles at the same time as our full-time jobs, that remains to be seen. the one thing we're certain about is this idea of entrepreneurship is becoming more accessible to more people and that, i think, is a great idea. >> you mentioned your partnerships with social media companies. one in particular i wanted to ask about is facebook because i know you have a big partnership with them but they're also launching facebook shop and trying to build an e-commerce platform isn't that ultimately a threat to your business >> actually we're their partner on facebook shop when mark zuckerberg announced it, they announced it with toby

our ceo so we are the commerce partner for facebook and instagram. but there's going to be so many more surfaces that are going to open up and be introduced to the consumer, where consumers can buy. every time there's a new surface, whether it's social media or whether it's in a marketplace or a new type of physical retail concept like pop-ups, all of those are new opportunities for merchants to sell to new consumers. the key, though, is that as there's more opportunities, more surface area, the complexity of commerce in retail goes up and we think that leads to shopify being more valuable. shopify is this rare story where we were this incredible pandemic story and now we're a recovery story as well and that, i think, makes us quite unique. >> great to see you, thanks for stopping by. still to come, a tough week for tesla and doordash delivers a big spike. we've got details on those and much more next in the market zone.

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with 14 minutes left in the trading day, we are now in the "closing bell" market zone commercial-free coverage of all the action today we've got charlie back as well charlie good, to see you we'll kick it off with the broader markets. stocks are rallying for the second day in a row, near session highs. the dow, s&p 500 and nasdaq are all on track for their worst weekly performance since late february mike, it was a tumultuous week for the market we're ending on a high note. what's the driver for this rally, especially in the nasdaq, which is coming back >> i would say the driver for this rally was the sense that the shakeout over three days was not necessarily about anything that was core to why this market was up here necessarily.

that little inflation scare, a little positioning shock we've also had the growth stocks having been leaders on the downside they did seem like they got a little stretched that was the one part of the market that looked like it was prime to bounce. so i do see this as a lot of the typical give and take of a pullback today's action is low volume levitation over the course of the day is showing you that nobody felt compelled after this to sell aggressively into it it's still bringing the market up to another one of these little points where it's an obvious place to have a little bit of an argument about what comes next because it's right up near the area where the market stalled for four weeks before this weak spell. >> so, charlie, inflation arrived and is gone again already, right >> no, absolutely not. inflation -- finally we're getting that people are acknowledging inflation is here. mr. powell has been denying that that was here.

he was saying, what are you going to believe, me or your lying eyes we saw a very scary number, 0.9% in one month the apologists for inflation say this is all about where inflation was a year ago but that 0.9% is versus a month ago. so we are having real inflation right now. all the markets are showing it the tips market, the commodities markets. we are just now seeing inflation in the numbers but we're going to be seeing a lot more of it for at least the next year. >> but what leads that to actually hurt stocks, charlie? have we seen this year only when yields spike as well the stocks sell off they settle back the last 24 hours or so and stocks are rallying does that mean for the next few weeks at least until we get another print on the inflation side and unless or until rates go up that actually stocks will be the best place to be again? >> yeah, discount rates are not

necessarily the same thing as 10-year treasury rates discounting rates are the rates at which people discount the future earnings, particularly of growth stocks. that's not necessarily the same thing as the risk-free rate. i admit i'm stupefied why somebody would buy a treasury rate at 33 basis points of return knowing you'll have a negative return but that doesn't mean stock investors will. stock investors are increasing the discounts they're putting on long-term earnings that's going to be bad for growth stocks and relatively better for value. >> it's been a very rough week for shares of tesla. phil lebeau breaks that down a little bounce today but big declines as a whole. >> right now tesla is on track, unless there's a big rally in the last couple of minutes of this session, to have its fourth straight down week that has happened before, it happened earlier this year you don't see it very often from tesla. this is on track for the fourth week in a low. the headlines, it would seem

like they were swimming against the headlines all week they had the weak china sales report there was another nhtsa crash probe announced. there was one in houston that steered away from auto pilot being linked to that crash and you had shares dropping under the 200-day moving average honda early this morning over in japan reported its quarterly earnings while they did swing to a profit, the company also said that the chip shortage will be hitting their 2021 earnings. guys, back to you. >> phil lebeau, thanks for that. mike santoli, of those factors that phil just went through, the technical one, below 600, below 200-day moving average, perhaps getting the most attention this week, though important to see it bounce today because yesterday while other things were bouncing, tesla still closed lower. >> yeah, for sure. the stock really broke stride hard, starting in january. it obviously is well below its

highs. it's almost any kind of bellwether except for the collective enthusiasm for electronic vehicles and tesla's ability to exploit it. by the way, in the huge sell-off in the heart of the covid crisis, march and april of last year, it barely just touched the 200-day average along with the overall market crashing and it just vaulted from there. not to say it's going to do the same thing but the fact that it's down so much off its highs and is only now coming in contact with that longer term trend line shows you how the stock went parabolic charting its own path here for a stock above $500 billion in market cap. doordash shares are surging after delivering a bullish forecast deirdre bosa with the details. >> sara, so far no evidence of a slowdown in food delivery. as you said, more bullish on the remainder of the year. take a look at some of these

numbers. revenue grew nearly 200% gross order volume 222%. doordash faced the same issues that uber and other companies have been facing remember doordash is far more profitable on an adjusted ebitda basis. dash is having its best day since its ipo. shares up more than 20% as we head into the close. >> deirdre bosa, thank you a bit of a surprise, mike, for this one you might think that restaurants reopening and reservations going up, which we see in the data and places like open table would hurt online food delivery. still going strong. >> yeah. obviously this was an area of consumer behavior that was already on a huge upswing before the pandemic you have to distinguish, i think, between things people started to do or do more only because they were locked down and things they were getting in the habit of doing before.

so i think it's a relief it's not so much a fresh reason to think that the story has changed entirely for door dash if you look at that chart, it shows you we're taking back a few weeks of losses, coming into a little more balance probably between kind of the bears and the bulls. it is a pretty heavily shorted stock for one that's only been on the market a few months what you still have is tremendous question over long-term profitability, business model and how much to pay for it today. >> charlie, you mentioned earlier, pivoting back to the broader markets, that the outlook favors cyclicals and value stocks in a relative sense over growth stocks does that mean in absolute terms all of your favorite stocks are looking a little expensive, a little pricey? >> no, i wouldn't say that i'd just like to re-emphasize the point that quoting warren buffett, inflation is a force like gravity that brings down all financial assets

value stocks are not immune from that if we do get a significant increase in inflation, which i think is very likely, then we will need a real strong recovery in the earnings of many of my favorite stocks, many of which are trading at very reasonable multiples. so we talk about who makes the power train for electric cars and gas cars and that is trading for 11 times earnings. as long as we get demand, the stock will do fine if i'm wrong and we don't have the economy expanding at the rate i think we will, they won't be spared. recent ipo stocks have taken a beating, names like airbnb, p palantir snowflake is is well positioned to capitalize on a generational shift of data and analytics to the cloud and overall software stocks remain winners as structural changes accelerated by the pandemic continue to

drive growth shares of snowflake are down 30% in the last three months mike, there's a slight feeling that a few of the brokers have been waiting for a pullback to then be able to go pullish on the company they like the most in this space for the last few weeks, which is not a criticism, it's to be commended trying to be dynamic and make a big call when there's more upside and it feels like this on this one for snowflake just a bit. >> something that's been just about cut in half since the high in december. i think almost everybody gave the company tremendous benefit of the doubt in terms of being in the best part of a great, fast growing secular growth business in cloud and data analytics. the question was it just came out with crazy valuation from the jump, $100 billion out of nowhere. so i think the trick is whether they will become more selective name by name this isn't an ark stock but it

is an ark-type stock in terms of being a disrupter and multiple of revenue type story. all those things have moved in a group. now the question is will the market start to distinguish among them and have longer term trends reassert themselves. >> charlie, do you distinguish among tech at all? i know you're not into the hot ipo high fliers but is there value there in some of the bigger cap tech like a google, for instance all the faang names having a good day today >> i think you can do a spectrum here at this point google and amazon are real companies, it's not debatable. microsoft is a real company with real earnings. still in my opinion not worth their stock prices but there's a big difference between those companies and some of the ipo companies that are just business plans. i happen to like oracle trading at a 15 times forward multiple two years out. that would be my favorite in large cap tech. >> and a pretty decent year. we've got almost two minutes

left to go in the trading day. the dow is up almost 400 points. the nasdaq bouncing back strongly, 2.4% higher. still looking lower for the week by 2%. the s&p 500 down 1.4%. mike, what are you seeing the market internals as we march toward the close >> actually very, very strong. yesterday the story about the internals was that it was much less enthusiastic than the index. the breadth was pretty week. today we have nearly 90% upside in volume. not quite. some people think 90% is an important threshold. this is very lopsided. pretty much across the board buying it's about growth being up more than the rest. you can put that check mark down and say this piece of the rally maybe qualifies as being a little more meaningful take a look at one of the divergences which is starting to narrow, which is banks versus mega cap growth. a massive growth opened up between the kbw bank index and

nasdaq 100 this is the dynamic where even if the market isn't going to change its character, you might see these things narrow in the short term because they have gotten a little stretched. the volatility index has been a real story for this move it has given up pretty much all of that spike that we got in the first part of this week. we're back under 19. so it again starts right now to look like one of these passing storms and maybe we can say the market has settled down a little bit. certainly, never know. we haven't regained all the losses in the index. but it does seem like a pretty twitchy reaction to that 4% pullback that's mostly been unwound. >> 40 seconds left in the session. as mike says, a very strong and broad bounce to what has been a negative week highlighted by the fact that you have a cyclical sector, energy, and a growth sector, technology, that top the sector performance charts. today all 11 sectors are higher with the s&p up 1.6% and the

nasdaq up 2.4% all three are lower by more than 1% for the week as a whole the nasdaq down 2.3% for the week as a whole. but nonetheless a nice way to end the week tesla bouncing 3%, but remaining down 12% for the week. the ark etf up 4.5%, halving its losses for the week. nice 4.5% gain the nasdaq up 2.3%, zs&p 500, 1.5%. welcome back to "closing bell." i'm sara iefbeisen along with wilfred frost and mike santoli the dow is higher by 360 points or so. the biggest contributor to the dow gains, goldman sachs, boeing, salesforce, microsoft. so you had a good mix of the cyclical names tied to the recovery like financials and

boeing and some of the tech stocks which played into the rally. the s&p finishing higher by 1.5%, still leaving it down for the week actually its first down week in the last three s&p down 1.4% for the week despite today's broad rally where every sector rallied there's the nasdaq, up 2.3% but also lower for the week by 2.3%. it's been down for the last few weeks. technology has been especially hard hit came back strong today the small caps also did, 2.5% higher on the russell 2000 airline stocks taking off after the cdc announced fully vaccinated people do not need to wear masks in most situations. coming up, we'll discuss how high these stocks could fly. what the outlook is looking like charlie is still with us and alicia levine joins the conversation nice to see you. first i will sending it to you, mike, on a bumpy week for stocks a week in which lumber prices, for instance, came off 7.5%.

big news there a lot of people looking at that as an inflationary tell. the market overall struggled. >> some of the trending moves that really seemed to get out of hand a little bit in the short term did unwind slightly the stock market, where i think almost everybody was thinking we're probably due for a little choppy npiness and a little bit pullback, we got it. it looks like what we've seen earlier this year. a little bit scary in the moment, not really sure if this is going to really bring more pile-on sellers out. it didn't do that yet. we still obviously have to see it again, i was mentioning the s&p 500 did reassert itself over two days but conveniently brought itself right back to an area where just a week ago we were saying, wow, it looks like that's an important threshold that would hold on the downside. so we'll see how it plays after the weekend. >> does the action in the latter

part of this week suggest we're not going to see more than a 4%, 5%, 6% pullback through the course of 2021 >> it looks like this pattern is really holding where the market self-corrects up to about 5% and we continue higher you can't get around the fact that we're going to have a spectacular growth year, both in the real economy and, therefore, in earnings, driven by the cyclical and value sectors and the markets are really reflecting that. we are still tilted toward cyclical and value here and buying into reflation going forward, particularly that means good days ahead for financials, even from here technology was terrific today, but i say i think there are more tough days ahead for technology. we saw this past week a tantrum in the equity market, not in the bond market. you're probably going to get more of those going forward as we get some of these hotter prints moving forward that last longer than the fed's precept

position that it's going to be very temporary. >> so you're not buying that it's a temporary inflation story, is that what you're saying >> what i'm saying is actually the data so far suggests it can be synonymous with it being temporary. i just think it's going to go on longer than the next couple of months, which is when we lap the calendar in those negative reads. every month that it goes on longer, you start getting inflation expectations moving higher so that's the one risk technology is really in the crosshairs here. we'd be very cautious on speculative names although we do like large cap profitable tech names. they'll earn through everything. >> charlie, what's your take as to whether those financial stocks might mention that discrepancy in the performance over the last three months, whether they can continue to perform? yes, we get the argument that they're a better hedge to inflation and economic rebound, but have they outperformed too much, too quickly?

>> if you look at absolute valuations, then i would say, no, they're not overpriced goldman sachs is trading at 11 times forward earnings those earnings are going to go up a lot up we get a better interest rate environment. bank of oklahoma that we happen to love is 13 times forward. so they are compared to the s&p at 22 times earnings still very attractive one thing i would warn people on, it's become -- everybody says banks do wonderfully in an inflationary environment take a look at the savings and loan environment and what happened to savings and loans in '79, '80 and '81 they went out of business because they were lending long and borrowing short. you better of your book in the right position in a rising rate environment. >> financials were one of the three sectors, mike, to finish higher for the week. consumer staples on top and materials, which is an odd combination. those were the only three sectors positive. >> they don't necessarily tell the story in unison of what's

going on with the economy. in general, though, there wa more of a reflationary tone to the leadership that. has not really changed it shows in the broad index comparisons as well. materials have a lot of momentum a lot of that is things like chemicals as well as metals. we'll see as the commodity prices come off whether that's something that can continue because that really started to seem like a momentum trade as well. disney shares under pressure after disappointing streaming subscriber growth. julia boorstin has those details for us. >> disney's earnings par surpassed expectations, but the highly watched metric of disney plus subscribers fell short. the company added 9 million new subscribers rather than the 14 million analysts had anticipated. although disney's ceo telling me that the company is on track to hit its goal of at least 230 million subscribers by 2024. chapek also said that disney's parks business is rebounding

with demand back at pre-covid levels. >> we see that confidence that we've been able to instill in our guests that we can operate our parks in a responsible way during this pandemic plus the affinity for the content and the experiences we give them and magic we create. that will pay big dividends for us and our shareholders going forward because they have confidence in disney and they can't wait. >> and chapek was very optimistic about the cdc relaxing its mask rules saying that it will make disney's guests a lot more comfortable in hot orlando this summer. >> the other area is movie theaters what is the outlook now for big movie releases is there a flood of them ready to come from companies like disney, or have they been hard to make in the last couple of months >> well, look, there are a lot of movies coming out that have

been done quite a while. disney has a number of big releases including a marvel movie, "black widow. they will be distributed to theaters but also on disney plus for $30. but then disney announced yesterday they're going to have a film at the end of august and also one in september. one is a ryan reynolds comedy, the other is a marvel movie. both of those films will just be in theaters for an exclusive 45-day window. so chapek said going forward they're not going to be locked into the 90-day window that theaters used to get pre-covid but they will be favoring their own streaming service when it makes sense because they really are interested in that direct-to-consumer relationship so a lot more flexibility going forward. >> they're all kind of going at this a different way julia, thank you charlie, where are you on disney is this ever a stock that you liked? it had a nice run over the last

year but it's had a pretty weak start to 2021. >> yeah, this is a wonderful, wonderful, wonderful company that is not attractively priced. paramount, owned by viacom, has "top gun 2" coming out which has got to be seen in theaters as well as a quiet place too. so watch for viacom to have a great year in movie theaters back to your question, disney is a great company but i think it's only going to make about $5 in 2022 so the stock is trading at a big multiple of that $5. >> alicia, what's your take within the media space, the higher profile names or the traditional players? >> i think that the traditiona players are primed to run. i'm concerned about stock that had their -- the feature price booked in last year and has run so far so fast those parabolic moves have to come in somewhat i'd be cautious on some of the price action that we saw earlier in the year. i like the more traditional

names. and i think the names that are attached to an experience will do very well this year because i think demand is enorm us it's enormous for people to re-engage and i'd be looking at those kinds of names. >> alicia, i wanted to ask you about gas prices which were another story this week. we'd probably be talking about it up higher several years ago in terms of the impact on the consumer so gas prices on average across the nation have gone above $3 a gallon, according to aaa, and they're up 19 cents -- excuse me, 9 cents on the week, 18 cents from a month ago more than a dollar over a year ago. this is happening during a time of increased demand but also the colonial pipeline shut down. do you think this is going to have any impact on the consumer? >> i think we're already seeing that there's an impact on the consumer that we saw in the consumer confidence data today it's clear that consumers are noticing the higher prices

in some cases they'll go ahead and spend because the desire is so strong to re-engage but i think overall that when you have the population noticing higher prices on everything from restaurants to footed to car to gas, it's going to affect. the question is at what point does it start affecting demand that's a real question out there. we don't know the answer, very hard to predict it because we are going to have massive demand all at the same time we are seeing that in the data this week that it turns out it's actually harder to reopen the economy than it was to close down so those supply bottlenecks are all over leading to higher prices there is risk that the consumer will say enough, already i don't think we're there yesterday because we have supported households households have $6 trillionin savings. so we're not really denting demand yet, but it's a possibility the longer it goes on we're going to get there. >> we have a news alert just

crossing by the way on viacomcbs. >> a gift for charlie. >> or maybe a negative i don't know what it is yet. julia, what is it? >> well, they are reporting that the disputes between former cbs ceo les moonves and the company have been resolved it seems like les moonves, former ceo, will not be getting the $120 million that he sued for. so when les moonves was dismissed in the wake of those sexual harassment and misconduct allegations, he sued, demanding $120 million that $120 million was put in a grantor trust to wait until the proceedings were resolved. now the arbitration has been dismissed and those assets, that $120 million, will not go to moonves but revert to the company. so this is a win for the cbs -- viacomcbs management and les moonves is not getting that $120 million that he was pushing to

get in that lawsuit. >> julia, thanks so much for that charlie, is it also a big win for shareholders or not perhaps a crucial factor >> no. a modest win in the less than $1 a share category but certainly better than going the other way. and the bigger news is that it's settled. this is not a recurring problem, so i'll call it a mild positive. >> charlie, just round things off in terms of your outlook for stocks for the rest of the year. we know your preference between growth and value, but are you less constructive, perhaps, given the run-up than you have been at any point earlier this year >> yeah. i have to say the ariel funding is up 27% year to date clearly we have narrowed the gap between our valuations and the market but i will say earnings have surpassed my expectations. for our own companies for the whole market they have come in

better one cautionary note. that last jobs number was spooky and that consumer confidence number today was spooky. if we get a couple more of those, i'm not going to be quite as confident as i've been. >> charlie, alicia, thank you for joining us have a great weekend still ahead, airline stocks are soaring on the cdc's new mask guidance. up next, we'll ask an analyst whether there's still time to cash in on the carriers. plus the ceo of ftx on whether bitcoin can bounce back from this week's huge sell-off we're back in 90 seconds

airline stocks getting a lift today this comes as the cdc relaxed its mask guidelines saying fully vaccinated people don't have to wear masks or socially distance indoors. federal rules still mandate all travelers do wear masks and people are on the move the tsa screening more than 1.7 million travelers at airport checkpoints yesterday, the highest since the pandemic began. joining us is sheila thanks for joining us. clearly that's good news today, but the airline stocks jumped quite significantly when we had already seen demand pick ape lot and airplanes fairly full. so what did you make of the stock reaction today >> you know, i think it's another positive data point we're receiving, that the cdc is relaxing news. only 35% of americans are fully vaccinated

about 50% are one dose in. so there's a way to go but what we're seeing in the u.s. is u.s. capacity is only down about 27% versus 2019 levels, but europe is really lagging and that's what these airline stocks need. europe is still down about 60% for the month of june. we're estimating in terms of capacity relative to normalized levels also asia is lagging it's now down about 50%. so airlines are having a pop we continue to favor domestic over international for the reasons i just mentioned the lag in vaccinations globally >> so domestic over international, does that also mean leisure versus business travel and which airline does that mean you favor? >> sure. southwest is our top pick in the space. we're giving them a premium multiple these airlineless trade at big discounts to the market. they trade at about a 50% discount to the market historically so we assume southwest is a 15

times pe multiple. the other airlines lag the next one we favor would probably we delta given its u.s. domestic exposure and its european exposure. and then american. american is about 35% international. but when you look at that international breakout, there's a lot of latin america where we're seeing it come back. >> do you think the airlines will have a tougher time enforcing mask wearing on flights now? >> i don't think so. i mean you've had tsa numbers that are above a million 1.7 million a day. i think you've only had 1,300 cases of people rejecting to wear a mask since the start of the year so those are pretty good statistics i think the mask mandate is just being held in place because we can't reinforce that somebody has had the vaccine and only 35% of americans are vaccinated right now. >> what's your outlook at the moment on boeing, and i guess

airbus as well, and whether deliveries will start to play catchup fairly soon? >> sure. boeing is improving. we see the max electrical fix getting off the ground that 170 of the 195 regulators have approved the max to get back in the air. we're still waiting on china the one watch item for boeing is what we're looking at right now is the 787 which is their wide-bodied aircraft and carries passengers internationally they have about 100 of them in inventory so we're watching that item that's why right now our favorite airspace team is transdyne. >> sheila, thank you for joining us good to see you. >> thanks for having us. that new data from the university of michigan showing growing inflation fears are weighing on consumer sentiment mike santoli taking a closer look to what charlie just called spooky data. >> yeah, at least inklings of

it we'll have to see. very important to see if it continues or not this is the one-year inflation outlook. you see this huge shot up, well above 4% now, that is spooky if, again, it's predictive of anything that's going to be coming down the pike but look at this, 2011, we had a big run-up to the same level coming out of the crisis here, 2008, similar type reading they also ask for five-year inflation and that also had a big jump so the feds will be attentive to that mosaic but for now you have to just basically say this is like a straw in the wind you have to see if it continues. take a look at where money is flowing. this is from bank of america's weekly report on investor flows. this flows into tips or treasury inflation protected securities so that's basically a play on higher inflation rates as are bank loan funds because the

yields on those loans rise as interest rates in general go up so that's an inflation play. gold and silver also traditionally an inflation play. this has a percentage of overall assets under management, 1.2% in tips funds came in in the past week what that tells me is we're already bracing in advance and pulling forward the worry about inflation. it's not going to come necessarily as a surprise. maybe that means that the market action this week showed you that there's a little time here there's a little slack we've already tried to kind of pre-position for a run in inflation, whether it comes or not, guys. >> gold is flat for the week and down for the year. interesting. mike, thank you. >> it's a traditional play, not that it's a good one on inflation. >> mike santoli. bitcoin, speaking of, bouncing back to end what was a very rough week for the cryptocurrency up next the ceo of crypto exchange ftx on the future of

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dogecoin surging today after coinbase announced plans to list the meme-inspired crypto on its platform in the coming weeks this comes after elon musk tweeted he was working with developers to improve transaction efficiency days after asking his followers if tesla should accept the crypto earlier musk said they would suspend bitcoin payments they are both lower for the week by 10% joining us now is the ceo of ftx, the fourth largest crypto exchange by volume thanks for joining us, sam, good to see you. >> yeah, thanks for having me. >> so we'll get to this week's news in a few moments, perhaps, but, first of all, your exchange as we just said, the fourth biggest by volume for crypto trading globally, but not so for u.s. investors why is that? >> yeah, i think the biggest thing is that basically in crypto, there's not much of a

derivative seen in the united states this is pending clarity from the ftc on what licenses would be required for offering derivatives. because of that, we don't have derivatives offering in the united states and derivatives are the bulk of where the volume comes from. >> and so i guess that's a point because we always say here with crypto there's a lack of regulation, but there is some regulation you're saying here in the u.s. relative to where you're based in hong kong. what is your outlook, therefore, on regulation of this space going forward both globally and in the u.s.? >> yeah, i sort of break this into three parts when it comes to money laundering concerns, those are serious and touch all industries and those are just regulations that cut across industries they're not crypto specific. those are things that ftx and other exchanges are already complying with the securities regulations are things which are developing but there's some guidance from regulators on. we would appreciate a lot more

than there has been but there's been sort of enough to work with i think the biggest open question for us is on futures and derivatives where they have signalled that these are regulated products but there's been a lot less clarity on what regulations would be necessary or what licenses would be. this is really a developing area for almost all jurisdictions in the world is figuring out what licenses are relevant or required for crypto derivatives or whether there's going to be new licenses created for them. >> i feel like the story in crypto of the week, sam, has been elon musk this time last week dogecoin was soaring until snl and then it sold out and tesla got slammed this week -- excuse me, bitcoin got slammed because tesla is no longer going to be accepting it. why does he have so much power over the crypto market >> i think it's not just crypto, i think he has power over a lot of markets looking at the tsla stock, you

can see a piece of that as well. you know, for whatever reason, he's emerged as one of the most compelling figures over the last few years globally you know, when he tweets, markets listen and i think that in particular his sort of affect is very much in line with the crypto ethos. general appreciation for memes and trading and meme-based trading. and so i think those have all combined to make him an incredibly popular and influential figure in crypto especially >> so what do you say, sam, when people push back on the questions that poses for what exactly crypto is as an asset going forward? it makes it harder to be a payment of exchange, it makes it harder to be a store of asset because of its volatility. do you accept those pushbacks or in fact for your business model does it not matter, you just

want to see the volumes come in for trading? >> certainly for ftx what matters most is volumes. but in terms of the utility of the asset class, one thing i'll note is there are stable coins which are pegged to the u.s. dollar and other assets. to those who always have the stability for payments the other thing that i would say is that, you know, when you look at the price action of crypto and, you know, who knows what will happen in the future. none of this is investment advice but certainly looking historically there's been huge volatility and huge price appreciation and those are not unrelated to each other it's very hard to have an asset class that has huge asset appreciation it comes part and parcel with the movement as there has been discovery for crypto and expect further discovery for it going forward, until the world is confident what a bitcoin is worth, it's not going to stop being

volatile. >> so coinbase last night in their earnings release referenced the competition allowing some cryptos they don't trade, alluding to dogecoin, said they were going to look into adding dogecoin in the next few months do you allow dogecoin and do you think what started as a joke is an actual viable cryptocurrency? >> we do have dogecoin trading and it is the third most traded on ftx today there have been days where it's the most traded cryptocurrency on ftx you know, i think that it does have a chance. certainly a lot bigger of a chance than i would have said six months ago i think you keep pointing that it started as a meme it has a market cap of like $20 billion, $30 billion you could say, oh, come on, that's ridiculous but it trades tens of billions of dollars a

day of volume. and one thing that i would really say about it is, yes, it has historically absolutely been a meme but a lot of things in the world just derive their value from our collective imagination about what they're worth i think gold is an example it's worth what the world decides it's worth and what the world decides to value it's like a collectible asset. and dogecoin, although it started out as a joke, in the end shares that fundamental property or lack of property and it is what we make of it >> sam, thanks so much for joining us today i know it's very early in the morning over in hong kong. we appreciate it >> thanks for having me. >> crypto doesn't -- >> we also wanted to ask him about some of the particular trading they do on stocks, tokens, but maybe we'll get him -- if sam can hear us maybe

he'll come back and join us another time time for a news update melissa lee has it for us. a former florida tax official, joel greenberg, will cooperate with federal investigators in exchange for a lenient sentence recommendation. he will admit to crimes including using a website to find women he would later pay to have sex with him and others it led to a sex trafficking investigation of congressman matt gaetz, a spokesman for the florida republican says greenberg can't be believed and gaetz has done nothing wrong. the university of california system will not use a.c.t. and s.a.t. test scores through 2025. that is part of a settlement today of a suit alleging use of the standardized test discriminates against applicants based on race, income and disability. a new bulletin, the department of homeland security warns domestic extremists may try to exploit the easing of covid restrictions to attack a broad range of targets. now that the cdc has

loosened its recommendations on masks, the national restaurant association is dropping its suggestion that fully vaccinated indoor diners should wear a mask but it will be up to individual establishments to make their own rules. tonight on the news, a look at the many different ways states and businesses are reacting to the new cdc guidance back to you, wilf. gaming stocks rallying after wynn las vegas announced it's allowing vaccinated workers to go back to work without a mask find out whether other casinos will follow wynn's leaand lpd he those stocks we're back in a couple of minutes. mployees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee

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stocks rebounding for a second straight day and tech stocks are some of the biggest outperformers. up next, blackrock's russ koesterich on whether this tech turn-around can stla or whether investors will pivot toward cyclical areas of the market we'll be right back. ♪ ♪ ♪ ♪ ♪ ♪

stocks closing higher today but finishing the week in the red, worst week since february for the s&p. the dow, s&p and nasdaq all posting their worst performances since then joining us now is russ koesterich welcome, russ. what sort of moves have you been making in the portfolio lately to adjust to the new reality and that is these higher inflation numbers? >> well, we continue what we've been doing the last several months, sara i think the basic contours of the portfolio, underweight duration looking to emphasize cyclicals in the portfolio practically what does that mean. more financials, more banks in the u.s. and europe. higher weight to industrials, to

materials. we have trimmed tech we haven't punch purged it. i think a lot of what we've been talking about, we have been tilting the portfolio in a direction which is more consistent with the type of growth we're likely to see over the next few quarters and frankly the type of inflation we're likely to see. >> does that mean that -- sorry, i was going to ask shifting out of tech is one thing, but cyclicals look attractive in that light when you think it through. but have they also overrun themselves a little bit in the short term >> i think it depends. i do think you still want to lean into the cyclical trade, particularly some of the banks and material stocks. here's the interesting thing, having cyclicals doesn't necessarily mean deep value. it certainly doesn't mean some of the high beta names one of the things that's been interesting and i don't think remarked on very much is if you look at the higher er beta parf that space, they have actually been underperforming i think this goes to an

important qualification. cyclicals, yes, junk, no what we've been trying to emphasize are those parts of the cyclical space that has severe cash flow generation so that's where in my opinion you're going to see the best performance and also the stocks that offer downside protection in weeks such as this. >> what sort of exposure do you have to technology right now, russ, and within tech? what kind of groups, what kind of sectors >> sure. so we have broader technology exposure if you look in a broad space. we're still a little bit overweight there are a lot of parts of technology that are cyclical i think this is something that, again, sometimes gets lost semiconductors payment companies. you know, we're finding that there are opportunities to both leverage those secular themes but also take advantage to names that are going to be geared to what we expect will be pretty strong growth of the next few

quarters particularly from the consumer we've never seen u.s. households in this good of shape. 25% savings rate the unemployment rate is coming down very fast we're seeing strong growth in personal income thanks to stimulus part of what we want to do in the portfolio and actually consumer discretionary is our largest overweight is gear to those types of things. >> just quickly, russ, to round things off, your notes say you're dumping out of gold is that right? >> we've been aggressively lowering our gold exposure we've gone from 4.5%, 5% a year ago down to well less than 1%. the reason for that is very simple you've got a world where you're expecting phenomenal growth and the real yield on the u.s. 10-year is still about negative 80, negative 90 basis points it's very hard to reconcile. if real yields normalize, which is what we expect, not a great time to own a lot of gold. >> russ, thanks so much for joining us

good to see you. >> thanks again. up next, gaming stocks getting a big boost today on the back of wynn las vegas changing up its mask mandates, but the details of the new policy could surirpse you we'll explain when we return h iv e build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth. (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions,

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we've been asking businesses what they're doing with their own policies after the cdc guidance people can take our masks. kroger saying it will continue to require everyone in its store

wear a mask while reviewing current safety practices and cdc guidelines it's also snincentivizing their employees by giving gift cards they say it creates confusion conflicting with state mask mandates we are urging greater coordination and alignment going forward, which is one issue that we're hearing and businesses are having to deal with. let's pivot to another company that is focused on this issue, las vegas -- wynn las vegas in fact following that changing guidance from the cdc game stocks off the back of it have rallied let's get to contessa brewer with that story and what is going on in vegas off the back of the guidance change. >> reporter: wynn las vegas changed its rules the same day that vaccinated guests don't need to wear masks inside and the company will not ask them to

prove that they have had their shots. in a statement this morning wynn resorts says it trusts its guests to do the right thing and follow the rules employees, though, will have to show proof of vaccination in order to ditch their masks and the company spokesman told me there was an immediate spike in the number of workers wanting to know their options for getting shots. already 91% of those employees have been vaccinated really that's a remarkable accomplishment mgm and las vegas sand have also decided that they will allow their fully vaccinated guests to go maskless in las vegas mgm and las vegas sands says their employees will still be required to wear them. the nevada gaming boulder says casinos can take down the plexiglass barriers. at the tables they can run at 100% occupaoccupancy. just getting ready at the race for the preakness. you can hear some of the crowds behind me, right

here they come look at this how cool was that? this is not the actual preakness race >> that was pretty well timed. >> i didn't get to see which horses were running. >> and the green one takes it on the line >> so, contessa, what changes are happening there at the break innocence maryland >> reporter: well, they're still requiring masks for guests, social distancing, occupancy limited here to about 20%. meanwhile the big change that has all the attention that's paid to this horse trainer, bob baffert, and medina spirit, that horse has undergone additional testing here since it failed a drug test at the derby these additional tests have come back negative. medina spirit is allowed at this point to run the race and is the favorite for the preakness tomorrow another one of baffert's horses, beautiful gift, is running in the next hour in the black-eyed susan, and the newly departed

ceo of a new sports book told me this drip, drip, drip of controversy is not good for the sport. baffert's horses have failed five tests in the last year, and yet gambling platforms saw a 415% spike in downloads around the kentucky derby over the previous two weeks it really matters to them. you know, it's just a question of whether over the time it adds up to discouragement for these bettors. >> contessa, thank you very much i hope you're getting to stay there all weekend. it looks fun or at least now you can pivot and turn around and watch whatever comes next. and i guess the race is on nbc tomorrow contessa brewer, thank you very much. we've got some details coming out here's leslie picker. >> from horse betting to whale watching, we are starting to see the first 13-fs dribble in for the first quarter and noticing

some interesting trends as it pertains to the filings. interestingly third point paring back its stake in tech companies, notably alphabet, amazon and facebook. they did add to their stake in microsoft during the they added significantly to their stake in afl, up 266% to a $602 million stake. and in facebook, up that by 41% so 382 million now where they both agree is to play the spac game, they hold a variety of spacs drag on ear, for ball post, also dragon and bravo hold various types of a mixture of warrants and shares for those spacs interestingly, with third point, took a new stake in uber worth $368 million and for ball post, they upped

their stake in intel to $1.5 billion now worth noting that all of the positions are as of march 31st and may and most certainly have changed in the six weeks since, guys >> good disclosure there, warning. leslie, thank you. monday is officially tax day. and time is running out to take advantage of some last-minute opportunities to boost your savings. we'll explain when "closing bell" comes right back retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income.

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this coming monday, may 17th is tax day it was delayed and also your last chance to stash money in a range of investment accounts for the 2020 tax year. sharon epperson joins us with more on what you need to be doing this weekend sharon >> well, sara, the irs gave people extra time to put money in certain retirement accounts for 2020 but at midnight on monday that time runs out. >> this year the tax filing deadline has been extended to may 17th and that includes prior year contributions or 2020 contributions into an ira. for those that are under 50, they could contribute up to

$6,000 and then if you're 50 or oehler you could contribute another $1,000 into your ira >> the extended federal tax filing deadline applies to contributions to traditional and roth ira and hsa's, the archer medical or msa and cover dell educational savings accounts staching money in a tax deferred account to add to your overall tax savings. >> that is going to reduce your adjusted gross income. and by reducing your adjusted gross income, that could give you possibly a bigger deduction for your medical expenses, and other items. >> and if you were out of work, cpa larry pawn said pretax contributions could drop your level to an income to avoid paying taxes on some 2020 unemployment benefits so that is another last-minute tax move that could make a big difference will.

>> sharon, thank you so much for that monday, the key date to remember don't miss out on that retails giving investors a crucial look at the impact of reopening. what we'll look at when "closing bell" returns. just over a year ago, i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars of credit card debt. they helped me consolidate all of that into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪ ♪

more companies coming out with changes after the cdc relaxed its mandate. this just in from walmart. according to an internal memo, beginning today vaccinated customers and members are welcome to shop without a mask walmart also said in this email masks will be required by city and state ordinances and we'll follow those requirements. but fully vaccinated associates do not need to wear a mask at work starting tuesday, may 18th. which is a different policy than we've seen from the other big retailers. kroger said it is still requiring masks from customers and associates, target and starbucks and so did macy's. so companies going in a little bit different directions here as they try to follow local laws

and cdc guidance which has been -- >> been moving it is clearly a big factor behind like wise the cdc which is to encourage more people to get vaccinated based on the mask aspect we need final thoughts mike out of time five seconds. >> have a great weekend. thanks everybody have a great weekend much more coming up now on "fast money. >> i'm melissa lee and this is "fast money. tonight's trader lineup. tonight on "fast," the bottom is in a bold call on the epicenter stocks and a big breakout in the reopening trade. plus check out the monster move in doge coin and bitcoin is almost back above 50 k and we'll break down the trade and get out your credit card, each of our traders have one name on their shopping list. but we start off with a tech trade roaring back to life the nasdaq rallying foth