the irs and treasury department to seize and close some of those loopholes so there may not be that can for folks to do this. >> so you can take the loss on one asset and offset it against a gain on the other asset even though the assets are a completely different type. >> correct you can do it with bitcoin if you think it's going higher bosses it's not subject to a 30-day wait. >> thanks, dom >> thanks for watching "power lunch," everybody. "closing bell" starts right now. >> thank you, kelly. welcome to "closing bell." i'm sara eisen here at the new york stock exchange. a triple digit pop for the dow has evaporated major averages alternating between gains and losses a real seesaw session as we head into the final hour of trade. >> i'm wilfred frost let's look at what is driving the action today a slew of data hitting the tape today. consumer confidence coming in just shy of estimates while march home prices saw their biggest jump in more than 15 years.

april new home sales fell. reopening trades are outperforming again. cruises, airlines, hotels and casinos, moving higher as covid stats head in the right direction here in america. the u.s. says half of adults will be vaccinated by the end of today. investors weigh fed signals and the outlook for inflation. 59 minutes left in the session, sara. coming up today we've got a great lineup we're going to talk about all the data and the broader economic picture in america when we speak exclusively with fed voting member mary daly of the san francisco fed. plus two great guests to talk about the summer reopening. we've got the ceo of norwegian cruise lines as his company outlines plans to resume some u.s. voyages to alaska this summer. plus hyatt ceo talks about his bullish outlook for summer travel and when he thinks business trips could rebound as well. mike santoli is tracking the

market action, eamon javers has amazon probes and meg tirrell has a look at moderna's push for teen vaccines. the broader markets in the red across the board but only slightly. >> only slightly in the red. really kind of a churning activity here. volumes low again. yesterday was one of the lowest volume days of the year. so you're basically seeing the market just settle in around that 4200 mark on the s&p 500. at the lows today we were right back where we were at this level that had actually capped the market for a couple of weeks so pretty noncommittalal. so a longer term uptrending is intact but this is a two-year chart. one interesting thing going on is it sort of resumed the same uptrend line as before the covid crash. even into 2019 that was a very, very strong rally so the angle has been quite strong and the two-year return is among the

best we've seen in a decade. take a look at some of those subsectors peg is the etf for travel and leisure type stocks. this is also the home builders etf. what i wanted to show is the crescendo of enthusiasm about reopening and the accelerating pace of vaccines and everything. then you get a break and then it settles out and goes flat. no longer really a leadership group within consumer. maybe something similar here home builders crescendo of enthusiasm, a break and still doing fine still really great on a longer term basis but maybe has to settle out so i think that's one of the things going on with the market this is the equal weighted s&p 500. some of the consumer cyclic a.m. groups have become pretty widely embraced and maybe had a little bit of a short-term peak of enthusiasm globally some pretty decent signs about other markets around the world that are actually also performing very well we have germany and china starting to perk up. china had this big peak but

that's a little breakout there german stocks also outperforming the s&p. we have the dollar weakening final little note, just in the last hour or so we saw this huge surge of enthusiasm or squeeze activity again in the old meme stocks, the original ones, gamestop, amc. this is a one-day intraday there's just a collective raid to try to squeeze these higher they're not as crowded on the short side as they used to be and they have all created this little loch ness monster formation. i don't think there's a matter of why this happens, it's a dull market people are trying to find their fun where they can, guys. >> is that a new technical chart term >> i was going to say loch ness monster -- >> it's the dino flintstone formation. you guys have no idea what i'm talking about. >> i do, but i'm afraid i love

your charts, not your artistry on this occasion, mike the other big standout, it's good that you mentioned the timeline but going below 1.6 on the 10-year. are we breaking down and is that good for stocks? >> i wouldn't say breaking down, but certainly losing a lot of that energy to the upside. it's been two months we've gone sideways around the 1.6 level. we know about the global demand for treasuries trying to capture some of that yield maybe there's been a little bit of a pause in terms of macro improvement, even though things look great maybe the moment of acceleration was highest for a while. but it's a watch and wait and a matter of which sectors maybe can lead if in fact we're not going to get that tailwind for financials, for example. >> mike santoli. amazon briefly dipping on news of an antitrust probe from the d.c. attorney general.

a eamon javers with that story. >> take a look at the d.c. attorney general is making what he's saying is that amazon, he's alleging, has been effectively fixing retail prices across the entire internet what he's saying is that they have these contracts with third-party sellers that don't allow them to list products for less on other platforms. even if they're selling it on their own website, they can't sell it for less than what they sell it on amazon for. that means that they're basically incorporating amazon's 40% fees and all the service charges that go into their service in the prices that they set on other sites around the internet that's the allegation. he's saying it's anti-competitive amazon is responding to that and saying the d.c. attorney general has it exactly backwards what they're saying is that sellers set their own prices for the products they offer in our amazon store amazon takes pride in the fact that we offer low prices across the broadest selection and, like any store, we reserve the right

not to highlight offers to customers that are not priced competitively. so amazon is saying the d.c. attorney general has it exactly backwards. the d.c. attorney general saying that amazon is raising prices across the entire internet and that might seem surprising given amazon's reputation for low prices but that's the dispute and they'll have to settle it in court, guys. back to you. >> and the d.c. attorney general, i read in politico, that he has been vetted by the biden administration as a possible leader of the federal trade commission you just have to wonder where all this is going and whether we're going to see a bigger suit from the ftc or the doj. >> yeah, the federal government and then also the states are worth watching here too because he was on cnbc earlier today and talked about the possibility of other states signing on to this once they have a chance to kick the tires on this case and see if they like it. you could see a broader coalition of state ags trying to fight this out with amazon. shares of moderna getting a boost after the company released

new data on its covid vaccine in teens. meg tirrell has that story for us hey, sgmeg. >> moderna says it's going to apply to regulators for down to age 12 we've seen the vaccine was 96% effective in kids ages 12 to 17 when they reported earnings a couple of weeks ago. now they're saying with a final look and a trial of more than 3,700 kids it came in at 93% to 100% 93% was after one dose they also said no significant safety concerns were identified. dr. fauci was asked about the significance of having this vaccine down to age 12 as it applies to going back to school in the fall. here's what he said earlier today. >> hopefully we'll be able to get adolescent vaccine -- i mean high school students vaccinated actually before they enter the fall term, which is really very

good news. so now we have not only a single company, pfizer, but it looks very much like we'll have the source of another similar vaccine, an mrna from moderna, so all good. >> guys, a lot of gfolks wondering about the timeline for younger kids pfizer says in september they could have data down to age 2 and submit to regulators in november down to six months. moderna is also running trials in those age groups. >> meg, thanks so much for that. good update to receive. still to come, an exclusive interview with san francisco fed president and fomc voting member mary daly. we'll get her read on how the latest jobs and housing data could impact policy. and norwegian ceo was fire up about government guidelines when he joined us earlier this month. >> we are dumbfounded, quite frankly, as to why the cdc continues to put forth such

onerrous requirements on our industry. >> frank del rio returns and his company lays the groundwork for summer sailings. you're watching "closing bell" on cnbc. (♪ ♪)

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cruise stocks are jumping today, along with other travel stocks luike airlines and hotel. joining us now, norwegian cruise line ceo frank del rio frank, good to see you again thanks for joining us. >> hello, wilfred. >> when you joined us a month or so ago as we played in a clip to break you were pretty furious with the cdc and its guidance. have things improved at all since then >> they have quite a bit, wilfred. i didn't realize how angry and frustrated i was until i heard that clip. but look, the cdc has come to the table in earnest and our industry engaged with them across the table they listened to our concerns

and we're very pleased that we're going to be able to cruise out of u.s. ports beginning this summer, as you know. those first sailings will be mostly out of alaska alaska has a very short season the congressional delegation out of alaska did a yeoman's job in getting the pvsa waved because the canadian government would not let our ships into their waters so i take my hat off to them and take my hat off to congress. can you imagine that both the house and the congress passed this waiver by unanimous consent. it's unheard of, but americans come together in a time of need and you saw it with this legislation passed. >> wow, that's a great change in tone from the clip we played before the break, frank. talk us through the hurdles you still have to get over, what the requirements are northin order launch those alaskan-based

krusz. >> we have to submit applications to the cdc as part of the process but we believe they will be approved very quickly. they have committed to a five-day turn-around i'm confident that all the cruise ships and cruise brands will launch a restart from alaska as you know the industry is seasonal for example, in the summer if you look at where most vessels are operating, they are either operating in alaska or europe. europe is still closed for the most part, although you have spain and italy. one of the wonderful things about the cdc giving us the green light is they are the most influential public health authority in the recalled would. other public health authorities around the world will take a cue from the states and i think you'll see countries all around the world, including europe, opening up to allow us to actually sail. so today our plans are that by the end of the third quarter we'll have roughly 30% of our

ships operating again. some out of the u.s., some in alaska, some in the caribbean, some in europe by year end we should have 70% by the end of q1 '22 we should have the entire fleet operating. so we're off to the races again. as i mentioned to you before about a month ago, forward bookings for '22 and '23 sailings are at record pace and record pricing, so we're seeing that we do have pricing strength of course the pent-up demand that i was watching your show earlier today and whether it's the airline industry or the lodging industry, the hospitality industry, they're seeing this pent-up demand and we're seeing it too. if we can operate the sailings that we're operating in 2022, 2022 could be the best year in the history of the industry. that's how much pent-up demand there is and how strong pricing is now it's a question of whether

these ports around the world travel restrictions will be lifted so we can return to normal and operate the sailings that we want to operate. >> it's good to hear that optimism, frank, and enthusiasm. is the plan still to have fully vaccinated ships >> yeah. >> and if so, how are you going to get people to verify that >> no, sara, we believe that the pandemic is still alive and it's still around, especially at the beginning. we think that the best public health policy is to have 100% vaccinated crew and guests that won't last forever, as the prevalence of the disease drops, as the vaccination rate increases, there's going to come a time when we won't have to mandate that but i think at the beginning it's going to be so important to execute flawlessly and make sure there are no outbreaks the best way to do that is to have 100% vaccinated passengers and crew quite frankly, we believe that

it's a competitive advantage most people who want to cruise, want to travel, they want to travel, but they want to travel safely we think that our brand will provide the safest place to cruise and so we're going to do it until we don't think we have to anymore. but for the time being that's what we're going to do. >> so how are you going to handle florida i was talking to seema mody who's been on the phone with lawyers because florida is so critical to your industry. and the ports there, currently governor desantis says companie cannot mandate vaccine proof of people. >> the governor has been a great supporter of the cruise industry you know the actions he took against the cdc. we think those were one of the reasons why we were able to engage with the cdc. and so we believe that we will be able to work with the governor and his staff to find a way that the cruise industry can resume it's wonderfulwork out of the state of florida

it's a very important industry for the state of florida of course florida is very important for the cruise industry. >> how quickly, frank, are these cruises selling out? >> well, the farther out you go, the faster they're selling, wilfred. i think people still realize that there are challenges and risks early on, and so toour 2022 book of business is the best it's ever been for any year at this point of the booking cycle. i can't say that for 2021, but the momentum builds sequentially quarter by quarter by quarter. so we believe, again, as long as the pandemic continues to decrease in prevalence, the vaccination rate increases, countries around the world are opening up, that increases everyone's confidence that these sailings will actually operate and people are booking them. you've heard all your guests throughout the day in the reopening economy talk about this pent-up demand.

people have got both the money in their pockets to spend, the motivation to spend it, the desire to go out and see the world again, and that's what the cruise industry is all about we provide the best value for your dollar in the vacation space. you pack once and you visit six, seven, eight countries around the world. international travel is coming back slowly but surely and we're going to be able to take full advantage of that. >> frank del rio, thank you very much for joining us with the update it's good to talk to you. >> thank you, sara bye now. we're bringing you a double dose of summer unmasked. next hour we will speak to the ceo of hyatt about how bookings are shaping up this summer compared to pre-pandemic levels. after the break, the dow is down 52 points san francisco fed president mary daly who is a voting member of the fomc will join us to talk inflation, fed policy and when the tapering discussion could begin. check out some of today's top search tickers on cnbc.com

10-year yield drawing the most interest big fall in yields with the 10-year yield down to 1.56 tesla, apple, familiar names along with coinbase and amazon after that antitrust news in d.c. d.c. we'll be right back. ♪ ♪ ♪ no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure.

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a reminder cnbc's first nft still up for grabs until 10:30 a.m. tomorrow morning. we're honoring the mark haines'

bottom honoring the dare he said the s&p 500 had hit a low. if you don't want to participate in the auction, we also have a set number of nfts going at a fixed price. all proceeds will go to autism speaks and the council for economic education which focuses on financial literacy. it's all at mintable.app/cnbc. in just a few minutes don't miss our exclusive interview with san francisco fed president mary daly. we'll ask when she thinks the fed should start thinking about tapering and of course her outlook for inflation. plus we're rating some after hours action nordstrom, urban outfitters and toll brothers will have the numbers. the 10-year below 1.60 it's around 1.56 we'll be right back.

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welcome back time for a cnbc news update with rahel solomon. >> hi, wilf. here's what's happening at this hour let's begin in minneapolis a moment of silence to honor george floyd today marks one year since he died at the hands of police. floyd's sister brijdget and othr family members were joined by jacob fry to observe the moment. hours early with 30 gunshots and people running for cover at george floyd square. a police spokesman said that a victim was hospitalized. they believe you can hear the shots there. they believe they were shot at the square and in critical condition but expected to survive. secretary of state antony blink enen says the u.s. will reopen its consulate in jerusalem. he made the announcement after meeting with palestinian president mahmoud abbas in the west bank. and this is cute, endangered

baby ferrets the phoenix zoo said 21 have been born this mating season and apparently more are on the way because three more moms are still pregnant they are among the most endangered species in north america and were once lost to be extinct. they look very different as babies than when they grow up. >> i wouldn't use the word cute. >> exactly glad to see they are among us again. i'll send it back to you. >> rahel, thank you. new economic data coming in today. consumer confidence dipped for the first time all year. march home prices saw their biggest jump in more than 15 years and april new home sales fell by nearly 6%. joining us is san francisco fed president and fomc voting member mary daly. great to have you back on the show welcome. >> thank you nice to be here. >> just starting with economic data, if you add this to a few

other reports we've gotten lately from manufacturing and last month's jobs report, a lot of data misses what do you make of that >> well, when you open from being mostly shut in a global pandemic, then it's just going to be fits and starts a little bit. but this is really what we expected i would smooth through the volatility of the monthly data and really see the underlying strength of the economy. there is considerable momentum that's building. i'm still bullish about the fall we're really going to have to steady the boat and ride through some of this volatility as we figure out how much momentum the economy has. >> you know we're going to ask about inflation because that is at the top of concerns for wall street lately. basically the s&p 500 hasn't done much since april and there has been consternation over the inflation question are you still firmly in the transitory camp? and if so, what sort of data points, numbers or factors would make you question that >> sure, i am firmly in the

transitory camp. we have a number oftransitory factors that are pushing up inflation right now. some of them are just a basic effect from last year, but importantly we have stock market prices rising in a variety of areas as demand has resurged much more quickly than supply can come online. so i'm looking through and looking to the end of the year when supply balances are more intact before i'm drawing any conclusions about this being a more consistent trend. expectations have remained anchored in the data but we'll continue to watch and should we see more persistent trends emerging, then we would focus on those. but right now i'm not seeing evidence of that. >> how many months would qualify as being persistent? if we're two more months of higher than expected above 3% is that persistent yet or does it have to be six months?

>> no, it's not about timing at all. i'm glad you asked that question the transitory persistent is really about what's driving the increases. by transitory, i mean things that occur in the spot market. things that are about temporary disruptions. so it's not about the time it's not three or six months, it's about where is the place that the disruptions are coming that are causing the pop in inflation. and right now think about used cars used cars are at a high price. prices are rising. but as we get more cars coming online, the supply/demand things resolve, we would expect those prices to come back down so it's really about what's causing these disruptions. when i look at the individual data on those, you have to be really micro- oriented here, you don't see long-term prices rising in a way that's continuous. >> you kinds of see it in the housing president, don't you, president daly?

we just got a report that they rose more than 13% last april and they're 30% above the 2006 peak is that transitory >> well, those prices are actually supported by the strong economy. people have -- households have really good balance sheets right now. they're looking in many ways, the pandemic has caused people to relook at their housing and ask where do we want to live and how much space do we need. of course the monetary policy actions we've taken and the support balance sheets for households by lowering interest rates and allowing them to put more money in their pockets so they can spend it is supporting consumer spending. so i think the housing market is the place where housing supply is coming online in the meantime you'll see housing prices rise as the limited supply is demanded by a lot of people. but again, i expect these things to moderate as we go forward and more housing supply comes online. >> clearly you're very much in the transitory camp as we've explored in the last --

>> very. >> -- three questions. that said, it's fair to say from the minutes of the last fed meeting that you and your colleagues are now talking about tapering >> well, we're talking about talking about tapering abut i want to make sure that everyone knows that it's not about doing anything now right now policy is in a very good place policy is supporting the american people. we have more than 8 million people sidelined, not back to work yet who had jobs before the pandemic we haven't got ourselves fully through covid yet so we need to be atience patience is the most important virtue i think we have right now. data dependent but very patient to let the volatility of the data come forward and smooth through that and get every american who wants a job back to work and really achieve price stability. >> i wanted to ask about productivity as well because i think after the last crisis, the lack of inflation when people were suggesting we're not seeing

enough of it to tighten policy, we've seen more because of lackluster growth than anything else this time around, do you think there have been big productivity gains such thatif inflation is soft it's because of great gains on the productivity side >> well, i really look at the main factors holding back inflation as the significant what we think of the demand shock that came because of covid. then of course when employers come back, i think they are reaching for productivity gains. i talk to my contacts which i spend a lot of time doing. they're talking about investments that allow them to be more effective, more productive, and importantly coming out of the pandemic, more resilient. but i do think we're going to have a combination of productivity gains and also employment gains, supply and demand both coming online that supports strong growth and everyone who wants a job having one. >> back to the taper question. i know the fed and you guys have said that you want to see substantial progress before making any moves on policy, but

we really have seen some pretty substantial progress in nearly every pocket of the u.s. economy and on vaccinations. so what more do you need to see before you're ready to start signaling a taper? >> i'll go back to one of the first questions you asked me, with some of the data missing expectations how do i read that. i think importantly we haven't seen substantial further progress just yet. we're still looking for substantial further progress what we've seen is some really bright spots some very encouraging news it gives me hope and i am bullish for the future but it's too early to say that the job is done. importantly part of the boom we're seeing is supported by the accommodation we've taken to ensure that the bridge is long enough so that every american gets over covid and can fully re-engage. so i think of this as really good news, but it's way too early. and ahead of another jobs

report next week which is so important for you and for wall street, we saw a record 8.1 million job openings and we're hearing anecdotes about labor shortages. what do you think is really going on in the job market with so many millions still out of work >> i'm hearing those same anecdotes. it's a myriad of factors for many schools in the united states they're still not fully open so moms are home helping with home schooling. people are still worried about their health we're getting our toes in the water and coming out but we don't have vaccination rates across the entire population and people still feel nervous. people are deciding how do i re-engage in transportation. i think of myself. how am i going to be engaged in my full life it's just going to take a little time so again i know i keep hitting this theme, but we need to be patience, smooth through this.

bottlenecks will resolve themselves i'm really looking to the fall to start seeing the data come back and be more studied. >> mary daly, i hope we talk to you before then. thank you very much for joining us. >> thank you >> president of the san francisco fed. still ahead, cnbc's disruptor 50 list was revealed and we have the ceo of one of the top ten companies, chime, will talk about how they're trying to disrupt the big banking incumbents coming up. another check on the meme stocks that mike mentioned earlier taking off as we approach the close gamestop up about 15%, amc and koss both up more than 10% broader maetdorks wn slightly, about 0.2 of a percent alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions

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19 minutes left to go in today's session. here's a look at some individual market movers. vimeo under pressure in its first day of trade it is listed on the nasdaq here is their ceo on cnbc earlier. >> talk to most ceos and leaders, many of them as they look to return to work, they're looking to accelerate their digital transformation they have seen the power of video. their employees and teams now expect realtime engaging

content. they expect to be distributed. they're going to need video in the future so i see a lot of reasons to believe that this market is not only large and untapped but that it's coming and it's going to stay >> stock getting crushed, though, down 17% meanwhile shake shack getting two new upgrades both firms cite favorable long-term growth and the stock is up 5% tomorrow we'll talk to the chairman danny meyer and discuss the reopening of restaurants. when we come back, home builders on pace for their best day in two weeks we'll dive into that and preview toll brothers report with the dow down 64 points you can always watch or listen to us live on the go on the cnbc app. "closing bell" will be right back the s&p is down a little more than a tenth of 1% the nasdaq just barely positive.

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[triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪ 14 minutes left in the trading day. we're now in the "closing bell" market zone. mike santoli is here to break down these crucial moments of the trading day and today we have jason snipe with us as well let's kick things off with the broader markets. the dow lower for the first time in four days scott meinard was on this morning calling for a correction. >> we are due for a correction for the next six months i think

we're going to get a pullback maybe of 10% or so but ultimately i think we'll see the s&p at 5,000 and possibly higher >> maybe we are due for that, mike, but the market generally at the moment struggling for a reason to meaningfully move in either direction. >> right on average the market will have about a 10% correction over most six-month periods and yet trends higher that's pretty much the way things operate i don't think that due for the correction is the correct way to think about it it's not about the clock running out. i do think some of the circumstances are in place but not all of them. i think going five or six weeks as we have with not even a 5% pullback from the highs shows there's a general acceptance of the market at these levels even though there's not a lot of catalysts and an indecisive moment the cyclical stuff looks like it played out in the very short term and tech while not crowded is not drawing urgent buying

i think that's why we're in this spot and waiting to see if the treasury yields tell us something a little more worrisome about the growth, maybe not yet. >> jason, what's with the falling treasury yields? what does that tell you on the back of what's been a pretty strong, booming economy actually >> yeah, it's interesting. i think it could be very easily that we are at peak earnings, peak news, right the macro backdrop has been fantastic. the savings rate, the consumer is very healthy. the savings rate for the consumer is 27.6%. personal consumption is 29%. personal income, i could say so i think it could be just a pause here we're potentially just in a period of consolidation. not a whole lot of macro news coming out in the next few weeks. but i think it's an opportunity to really get into some of those high conviction names at this

point. >> shares of lordstown motors hit hard after the vehicle maker cut its production outlook phil lebeau with the details you know when you broke this report to us last night that this was going to be a disappointment. >> you never want to ask for capital, sara. whenever you do and you haven't brought out your first product, you don't have any revenue, not a good sign. that's why you saw shares of lordstown under pressure as the day went on, it was not under as much pressure as earlier in the day it's still down almost 9%. it's all about the outlook costs are higher than expected they are higher than expected last quarter that will continue through the rollout of their first vehicle there is the capital infusion that is needed and they are considering strategic investors. who those strategic investors might be remains to be seen. how much money they need they did not say on their earnings call take a look at the spac index post deal versus the s&p 500 this says it all, guys since march the spacs have not been the place to be, especially

the ev spacs like lordstown motors. >> jason, is there an opportunity here since the stock has been beaten up so much >> so i think there is in some of them. some of the spacs and bitcoin obviously we saw what happened the last week there. i think there are some high beta names where you could start to nibble at them some of the ones we like are twilio, shopify. i think there's potentially short-term pain in the near term but i think we can start to nibble at some of these names here in the next couple of weeks. >> you're saying that bitcoin is one of those that you like after the pullback >> so i think, you know, i think obviously the centralized finance is a major vertical and there will be opportunities there. from a long-term perspective i think it could be a good entry point. whether bitcoin or ethereum, i

think there's potentially an opportunity here. >> let's talk now about amazon washington, d.c.'s attorney general is suing the company over antitrust concerns and alleging the company uses unfair pricing practices. deirdre bosa looks at the potential fallout for amazon hey, dee. >> wilf, shares didn't move much on the news suggesting that investors don't think it poses a major threat to amazon's business in the longer run, though, that could prove complacent if the lawsuit changes the way products are priced on amazon and amazon is no longer a destination for the best deals it could mean greater competition from the likes of walmart, ebay, other market places remember, guys, the direct-to-consumer ecosystem is growing so merchants and consumers could have more choice so that is just one possible fallout. of course still a long way until we even get there. >> dee, thanks so much for that. mike, always a bit of a threat of course this is a single

a.g.'s particular approach but not likely to derail the shares in the short term. >> probably not. obviously amazon is probably getting used to being villainized, being targeted for some of the ways it leverages its heft across its businesses and maybe justifiably so right now the stock much more relies on the trends in the cloud services business. also just the power and stickiness of just the prime subscriber base, more so than any specific types of deals, any practices about getting merchandise at a certain price to those people. i think they're relying on habit and just this engrained kind of one-stop shop delivery speed of prime unless they want the vastest array of products at competitive prices but i think this is mostly about business practices around the edges and not at the core. >> i think it would be a different story, wouldn't it, jason, if this was a federal

lawsuit? this is d.c., it violates d.c. law. but we know the ftc has been at least looking into this issue and we've seen other suits for competitors like a google or an alphabet would that change the equation here and could this set up the groundwork >> yeah. i mean it's an interesting question i think a lot of these antitrust cases take time, obviously, for them to develop. you know, the anti-competitive i think is an issue for sure but i think it will take time to develop. i'm really focused with amazon on their aws business as mike had shared earlier i think it's been consolidating since september. i think it's bound to break out actually at some point the second half of this year. >> mike, either way, a decent sort of consolidation day for mega cap tech? >> yeah. it's obviously been a pocket of relative strength. in here yesterday and mentioned too that it seemed very much the

thing to buy yesterday just because there had been some laggard activity in the nasdaq 100 type names there were some big one-day moves that weren't based on much of anything except let's grab some of the stuff that hasn't worked in a while. very choppy, whippy action we had this great open for the financial stocks and it went away immediately and now we're sitting toward the lows on the banks. so it's just very hard to read at the moment as the market on low volume kind of is in between story lines. >> facebook amazon leads the triple qs. home builder stocks are rallying today. diana olick has details on new data >> sara, the home construction etf really took off after the release of april's new home sales report big names like lennar and d.r. horton also up but had a rough month over worries of inflation and overbuying these stocks were all up because of one nugget in the report.

sales were actually weaker than expected but prices of new homes jumped 20% year over year. we're about to get quarterly results from luxury home builder toll brothers. expectations for toll are also pretty high. back to you guys >> i can hear the cicadas behind you, diana i'm sure they're out in force. diana olick, thank you very much mike, the housing data is interesting with the row vevisi lower in home sales and continued spike in prices. you wonder where this all goes and how much more juice these home builders have. >> yeah, it seems like there's plenty more in terms of demand in the pipeline down the road. the big concern here is in this phase things have gotten very disorderly in terms of materials cost, in terms of bidding wars, in terms of investor presence in a lot of markets i mean it really has moved so far so fast into a position of just being extremely expensive, squeezing out new buyers

so i think you can say that it's sort of suffering in the short term from the long-term strengths which is very low rates and huge demographic demand for new homes so i think that's why you had a stutter step in the home builders' stocks which in themselves are a relatively small group and the only pure way to play builders but i think it's understandable that we're going to get some choppiness in this data. >> jason, are these names a nice way to get cyclical exposure >> i think so. i've always liked d.r. horton here i think afford ability is front and center as we look at the numbers. i think affordability will be very opportunity obviously the builders are a good way to play it. d.r. horton is a good one to have. >> losing momentum here, mike, down 91 on the dow session lows just a few moments ago, down more than a hundred points it's really been an indecisive

trade with real estate, consumer discretionary and communication services the sectors that are in the green. energy and utilities at the bottom so a lot of mixing and matching there of defensive groups and cyclical groups. >> yeah, as we're saying a little trendless one thing that i think is getting a lot of attention is the factthat treasury yields have been includingish and that doesn't necessarily fit with all that sector breakdown. we're not yet at a level where we say the overall trending has changed in terms of yields but it's one of those things on a quiet day when the market is in this churn mode, it's going to get a lot of attention because you're asking was the premise false that we're in this reflationary phase yes, we had a mini scare that seems to have dissipated, but right now they're kind of not moving for an extended period of time but i don't think traders

are necessarily used to that. >> we have just over two minutes left we have slipped a little bit as we approach the close, but the dow is down 130 and it's now down about 80 points mike, what are the internals showing us >> they have been pretty mixed breadth is negative on the new york stock exchange in terms of on the stock level as well as the volume so if you take a look at the nyc advancing versus declining volume, it's 1.5 to 1 at least on the negative side and that's been pretty consistent all day we've seen actually since february some measures of market breadth have lost a little steam. the u.s. dollar index also has been hitting new lows. look at a year-to-date look here, it's pretty much getting back to those lows from january. a lot of this is the euro strength so it really is capturing the fact that the euro is nearing highs and obviously

anticipating reopening over there. we showed you the german stock market as well doing well. the volatility index has got a little bit of a bid to it. so if you see it pushing 19, again, it's been around these levels for a little while now. you have a little bit of anxiety that flutters through the volatility futures curve from time to time but it's not telling a very worrisome story yet, sara. >> one minute to go before the close. take a look at the market. we're down 78 points on the dow. so not as high we were up triple digits earlier in the session we were higher and lower and the final hour of trade has been mostly weaker. the biggest drag is amgen, goldman sachs and travelers. as far as the s&p 500 is concerned. it doesn't look quite as bad because of the strength in groups like real estate which you see those lower treasury yields

same with consumer stapstaples, they're hire communication services and technology are also going to finish in the green. that's why the nasdaq is almost flat because tech is holding up better than, say, energy, utilities. within the tech universe, amazon, microsoft, they're all higher today you have names like apple and tesla, micron is another one that is lower. some traders are blaming that for the sentiment lower in the d day. welcome to "the closing bell," everyone. i'm wilfred frost along with sara eisen and mike santoli. closing down for each of the three major averages the nasdaq three basis points lower. the nasdaq 100 managed to eke out a slight gain. the russell 2000 was lower by a full percent yields did move today, perhaps the biggest mover on the day the 10-year down at 1.55

investors are waiting for earnings from nordstrom and toll brothers plus we'll discuss the outlook of the summer travel season with the ceo of hyatt hotels. jason 123snipe is still with usd ernesto joins us good to see you. mike santoli, i'll come to you we mentioned yields and the sort of off the highs, off the lows, kinds of mediocre performance of the day but also consolidating what was a good start. >> there's certainly nothing that says that there's a run for the exits of any sort going on here really it's more of the same that's been going on for weeks we closed today 4188 on the s&p 500, 4185 on april 16th. that's been the pattern is that

one way or another the market finds its way back to this horizontal line. it's not going to last forever markets sometimes correct by going down a lot from the high sometimes they correct by chopping around sideways for a long stretch of time the weakness in financials pretty notable with what was going on with yields today we got these bank ceos in congress no idea if that's a market mover or should be and small caps gave up a little bit of an intraday gain too. so the typical risk bellwether, maybe there's a little hesitation but there hasn't been any consistency from time to time in these trends leadership keeps whipping around one way to another as the market goes sideways. >> mike, just before the close i was mentioning micron because some traders said that came around the turn of the markets the ceo is speaking at a conference and made disappointing comments about demand and supply tightness and perhaps chips as a cyclical group tend to lead the market or influence the mood.

>> there's no doubt. definitely micron itself reacted and then obviously the semis have had a hard time marshaling any kind of a comeback that really gets back toward the highs, although they have certainly participated in this last little run. it's kinds of a similar story or at least it's tweaking at the same concerns we've had for a while. right now micron always very much a bellwether. all the chips are no doubt about it in terms of commodity chips so i think it makes sense in terms of the intraday action. >> ernesto, what do you think the market's biggest fear is right now? >> i think valuation is probably the concern right now although the yields probably helped it a little bit the market has done so well for so long, and we're running out of good news we got the vaccines developed, we got the vaccines in the arms. we have the reopening news, the lower rates, the fed stimulus. everything has been good so right now we're waiting for the next catalyst for the market

to move higher in our opinion, it will be earnings growth and the guidance in q2. at these levels of valuation, elevated levels of valuation, we need to hear some pretty good news from the guidance out of q2 and some pretty good reports before the market can advance any higher in the meantime i think we're going to continue to tread horizontally for a while >> jason, you too think we're in for, what, a rougher few weeks, months potentially but you'll be buying on some of the weakness just give us your overview. >> yeah, absolutely. i think it will be choppy for these next couple of weeks, but i do think there will be opportunity for some value-oriented areas of the economy. you know, i think the value trade is still alive and well. i think the rotation will continue to move there i think that's where the earnings growth is i think there will be some weakness over the next couple of weeks that will presenting some

opportunities. >> mary daly just on with us in the last hour. here's what she said when we asked her stance on inflation. >> i am firmly in the transitory camp i'm looking through these things, looking to the end of the day when the supply and demand balances are more intact before i'm drawing any conclusions about this being a more consistent trend. importantly inflation expectations have remained well anchored in the data, so that's another sign for me that we're in a good place right now. but of course we're data dependent. we'll continue to watch. if we see more persistent trends emerging, then we would focus on those. right now i'm not seeing evidence of that >> jason, she's a dove, she's a voting member, she's not in any hurry. she said the fed is talking about talking about tapering but really she says she hasn't seen substantial progress and it just does not seem like she is in a hurry. so is the fed a headwind or a tailwind in this market right now, given the markets back and forth on inflation and rates

>> so i think the fed obviously has done tremendous thus far i think there is some risk management here now. when is the proper time to start to taper i think about the housing market and some of the numbers that we've seen across the last 12 months, and even the numbers we've seen earlier today $40 billion of bond buying of mortgage bond securities, you know, we don't probably need any more stimulus there. so there's definitely areas, you know, that have been inflated. but i do think -- i'm in a similar camp i do think inflation will be transitory and i think it's some supply issues. i think when demand starts to subside and we get to some form of normalcy, i think inflation will start to slow down. >> ernesto, where do you stand on this? when we get to the point of tapering, will it derail equities or do you think it's largely expected now

>> i think the market is expecting tapering, but not too soon i think what's going to happen is inflation will be stickier and disagree with my other guest. because we have such a strong economy, such strong consumer demand and a job market that despite some weak numbers, they might be art filler so the strong economy, strong job market will make inflation stickier i see that as a risk but also supportive of continued rotation into value and so it's a very interesting time because we see numbers that are all over the place and we still have to come up with a picture to stakeick to a bit of scenario that the market seems to be at. >> if the market is reacting to these data misses, president

daly said a lot of it is just noise and it was painted as a picture of a very strong economy. is that how is market is taking it today was confidence. >> right the one way you would say that the market has reacted is the treasury yields. i mean the curve has flattened a little bit at least it's not running away to the upside because it seems as if the data are pausing or taking a breather, decelerating, however you want to call it. but also these are missing at still good levels. so the consumer confidence absolute number was fine, it was just two points below what was forecast i think that's been pretty consistent, even when we're missing with the exception of the monthly jobs data last time, it's been mostly in that range of, yeah, it still seems like we're expanding pretty fast but not doing better than forecast so far it's been a modest reaction, i guess. if anything, maybe the counter to that is it seems perhaps to be pushing off the taper

conversation if in fact you get more of a run of data that isn't so great. >> ernesto, the russell underperformed today do you like small caps at the moment >> yes, we do, because of the continued -- we believe that the rotation to value has room to grow and that the russell twepgt 2000 is basically a value play and cyclical play so we like that sector over large cap tech, for example. but i think the bounce as come back we were much more aggressive toward value oriented a few months ago and now the odds are more even that growth and value will continue -- will not necessarily beat each other up substantially, but we still favor value over growth at the margin. >> jason and ernesto, thanks very much to you both for joining us >> thanks for having me. our next venture capitalist, bradley tusk, on the new

antitrust lawsuit against amazon and concerns of a spac lowdown plus the ceo of hyatt hotels and when business could return to pre-pandemic levels

the red-hot spac market has shown signs of cooling off and that has investors asking themselves how do you tell between a good spac and a bad one? leslie picker with the details. >> last year it seemed to lift

all boats but that hasn't been the case over the last few months, meaning it's become increasingly important for investors to figure out which spacs are poised for returns and which ones are poised for losses there's no way of knowing if any spac is going to be successful without a crystal ball which i don't have and don't know anyone who does, but studies have a few clues. outperformance largely comes down to who's managing the transaction, how the spac is structured and what types of companies the spac is targeting. mckenzie points out the operator's edge noting that spacs with leadership from c-suite experience outperform spacs with investors at the helm operators tend to identify industry focus, putting expertise in areas they know best and become more involved in managing the business after the deal is done by sitting on the board and even having largely chairman roles in that combined company, guys. >> leslie, thanks so much for that we're going to talk more about the spac landscape with bradley

tusk from tusk ventures who joins us now bradley, good to see you thanks for joining us. i guess let's kick off on that spac area. do you think it's broader markets as opposed to spac-specific -- or company or target specific factors? >> i think it's a little bit of both to me there's a fairly clear dividing line for how i look at spacs. if the acquiring company adds real strategic value to the company that it's merging with, that makes sense you can understand why that would be a good buy, why that company would be more successful with having both pieces put together than on its own if it's purely a financial transaction and all the spac is providing is cash and there's nothing else they're bringing to the table, i don't see what the value is and why you would invest i have a spac that's in the individual gambling space. gambling as you know is an

incredibly regulated industry. that's our skill set so that's why we're in that space. i understand why we're doing it and how we add value but if it's purely like, hey, this spac thing sounds great, let's raise some money and convince someone to take it, i'd be skeptical too. >> what percentage in the last six months or 12 months have spacs been in the latter category in your opinion >> in the fewer financial category a lot. i wouldn't say most of them but pretty close to it early on in the spac phenomenon you had people who were truly impressive operators who could really bring expertise to the companies that they were acquiring or people with really specific strategic abilities but as like any craze, as it went on and on and everyone got caught up in it, you saw a lot of people raising spacs because they could and now they're having trouble finding a deal is

not shocking. >> brad, we wanted to ask about your expertise which is the intersection of tech and regulation there's news with amazon and the a.g. suit in washington, d.c how big of a deal do you think this is and could turn out to be in amazon. >> there's two ways to look at it which is a meandering answer. but on one hand the washington, d.c. attorney general is an electable position if you look at who votes in d.c. municipal primaries, it is a very, very, very progressive blue voting bloc if you think about amazon's experience in new york city where they wanted to set up their hq 2 in queens and were run out of town, that happened courtesy of aoc and the far left so i think they're facing similar political pressures from d.c. is not that surprising and you can read it for what it is, which is a good political move for the d.c. attorney general. on the other hand, google at one point, i remember when josh hawley was the attorney general in the state of missouri, i think he might have been the first to file antitrust suits

against google thinking at the time why would the a.g. at missouri care about this but ultimately it led to a ground swell to where now google is facing this from the u.s. department of justice. so it does have to start somewhere. the fact that amazon is starting to face this from some front is not surprising while it may be political in nature, it doesn't mean it doesn't translate into federal action in the next couple of years. >> let's talk crypt o i know you get yours from coinbase. there's been lots of price targets thrown out during this volatility, some saying a correction down to $20k, some saying it could hit $100k. do you think it could hit both of those numbers this calendar year >> i really like bitcoin but here's what you have to be willing to accept if you choose to invest in bitcoin, which is there's no inherent value. bitcoin is a community of like-minded people from all over the world who believe in the notion of a sovereignless

currency so we will accept this and invest in it i find that beautiful in a way but it's not like a company where there's earnings or a commodity where there's supply and demand for pork bellies or whatever it is or anything else so you're really entering this roller coaster where depending on how people feel in the like-minded community feel at that moment, it might be 20,000 or 100,000 so you're signing up for the roller coaster you can make a lot of money if you do that the right way but people should be clear of what they're getting into. >> i've got to ask you about andrew yang who i know you're advising and part of his campaign, a few weeks out from the primary here first of all, it's not clear whether he has a shot. he takes turns leading in the polls. more specifically on the new york economy and the massive budget issue that we are facing and the prospect of bringing people back to work and back to live in this city, how does yang

stack up what's the plan? >> so the primary is four weeks from today the latest polling that we have has us at 19 and the next closest challenger is at 16 and 12 respectively, but there are other polls that are constantly coming out where sometimes we're in first, sometimes we're in second andrew is the only candidate in this race who has ever started a company, who has ever had to make payroll and who has built and sold a successful company and he did it right here in new york city. so his ability to understand economy, the tech market and everything else is dramatically different than everyone else who either tend to be left wing ideologues or career politicians. one of the opportunities because of covid is we're going to have a lot of real estate in the city because people will have different patterns of how they have people come to work to me that's an incredible opportunity. new york city has never had a homegrown amazon, homegrown uber or homegrown microsoft that's because it's been too expensive to put a company like

that here. what if we can take all of this empty commercial real estate and say to startups, you commit to being here the next ten years, 20 years, we'll give you free or drastically reduced expensed real estate. someone like yang who understands the tech sector can really say here is how to diversify our economy. right now it's relying on financial services and tourism we have seen at times if those industries are hurting, the city really suffers we need to diversify the economy and tech is the best opportunity to do that the reason that i'm supporting yang is he's the only candidate in the race capable. >> yesterday we had a real estate developer and he said we need to get law and order fixed and that crime is the biggest issue holding back development which might point to eric adams. we could debate this for you for a long time but i want to get your take. >> yeah, thank you >> bradley tusk, thank you i'm sure we'll see you soon. we do have some earnings to get to nordstrom and urban outfitters just out courtney reagan with the numbers. courtney. >> hi, sara.

let's start with nordstrom's first quarter. the reporting a bigger loss per share than expected, $1.05 compared to 57 cents expected by the analysts revenues are slightly stronger at $3.01 billion compared to $2.9 billion their full year revenue guidance is reaffirmed at more than 25% growth, which is slightly above what the analyst community is forecasting for that same period digital sales increased 23% when you're looking at the same quarter 2020 so remember that was that first pandemic quarter and digital sales represented 46% of total sales during the quarter. that's a pretty significant number there when you're looking at the gross profit for nordstrom, it was 31%. that's a 2,000 basis point increase compared to the same period in 2020 however, a decrease of 260 basis points when compared to the same period in fiscal 2019.

there is talk of a lower markdown rate, which is something we've heard from a lot of retailers still nordstrom shares down more than 4%. let's move on to urban outfitters it was a beat on both of the top and bottom line, reporting 54 cents per share. that was well above analysts' expectations of 17 cents stronger revenues, $927 million compared to just over $900 million as the estimate. when you look at the comparable sales by brand compared to last year, 77% growth, 57% and 42% at urban outfitters shares of urban outfitters up almost 5%. back over to you. >> moves of 4% in opposite directions there courtney, thank you. still to come here on "closing bell," the next installment, the ceo of hyatt will join us to talk about the

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a new report from deloitte

shows an optimistic outlook for summer travel. 40% of families plan to take at least one trip and many are look to take longer trips with 56% adding three or more days to their vacation hyatt hotels, summer holiday demand back to or above 2019 levels joining us now as part of our summer unmasked series is hyatt ceo. great to see you again, mark give us a little more color on what you're seeing for bookings this summer and into the end of the year. >> it's great to see you too thanks for having me and i'm joining you today from the magnificent confidant hotel in miami beach, so a little bit of a preview for myself as to what we're seeing heading into summer you know, we've seen demand actually progressively increase over the last several months but i think subsequent to the cdc changing their guidelines on

masking, we saw a significant surge in demand from a bookings perspective. so we're heading into the summer holiday season, memorial day, july 4th and labor day with a majority of our hotels with bookings that put them back into -- at the same level that they were in 2019, but almost all of our resorts are actually tracking above 2019 levels so we're seeing really strong realized bookings now into the summer season. >> so with this strong demand, are you able to bring your staff back fast enough are you having any issues there? and are you boosting wages >> we are having significant issues getting enough people to come back to work. we've been persistently going at this issue now for the last couple of months because it's been building. across our managed hotels in the united states, we have over 3500 open positions and many of them have been open for a while we're starting to see some

movement, though, in terms of number of applications that are coming in. and we are really quite tapped into pools of available people who may not have been in our industry before the pandemic people who are otherwise going into either the distribution logistics sector or retail so that's really what we're focused on now. >> what do you think the core reason is for why those people aren't being filled? is it health and safety related or wage related or what? >> well, it's really hard to pin it on any one thing. i would say that of course the pandemic was very difficult for people in our industry i think our industry alone represented more than one in four jobs that were lost over the course of the past 14 months or so. so it's been a very difficult period and then in addition to that, we have seen increases in the

number of applicants for jobs in states where the governors and state legislatures have actually suspended the additional unemployment benefits that the federal government had mandated. so i do think that's a contributing factor as well. but we view this as, i think, a temporary issue which will get resolved over the course of the summer >> what about business travel, how much of a chunk of your business is it overall and are there any signs of rebound there in terms of fall bookings? >> well, we're starting to see real signs of business transient travel, which is very encouraging. i would say really interestingly group travel is now starting to really be evident to us. we've seen, for example, some major corporations holding meetings -- our first major meeting is coming up in june with a thousand people attending the meeting and another one in july we're also seeing the very

beginnings of citywide conventions come back in places like san diego, denver, washington, even chicago has a small one, but it's starting to come back now. so that's encouraging. but we're still pretty far away from where we were back in 2019 just to give you a reference point. the rate and occupancy levels on weekends, on weekend days in our industry are somewhere between 90% and 95% of where they were in 2018, whereas the weekday cap between now and 2019 is more running in the 70s so there's a significant difference between what you're seeing on weekends, leisure travel primarily and weekdays. that's a gap that will take a while to close. >> we've seen a revolution mark in many industries during the pandemic in terms of the level with which tech is involved in

people's purchasing. do you think the pandemic has changed the way people travel significantly or not >> well, i think we're seeing people who may not have been our core customer base, actually traveling very frequently, but people who are looking to explore and get out. i think there's definitely a post-vaccination demand for getting on the road and there's a bit of a what am i waiting for kind of sentiment. so pent-up demand is really, really significant just to give you an illustration, it's been less than six days since the eu announced they were going to open up to foreign travelers our bookings into europe are higher by 20% over that period of time. there are many details that need to be worked out but i think that pent-up demand is very significant. i think the vehicles that people are using are primarily digital. i think digital has also impacted the stay experience because we put a lot more

control in people's hands from a safety and touchless environment perspective. i think that actually helps people -- give people some peace of mind as they think about getting back on the road. >> mark, beyond just the near term, what does the pipeline look like for you and for the industry are the developers as hopeful and optimistic about the future of travel? >> yeah, look, pipelines have actually maintained during this period of time we've been opening a lot of hotels so our rooms were up 6.5% and we are replacing those with new pipeline deals i think in the united states at least the key thing right now is financing for construction so i think that will have an impact in terms of supply growth in the near term so we were running a bit over 2% supply growth pre-pandemic and i think that number will be a bit

over 1% for the next couple of years for the industry but i think that that's going to come back into equilibrium as we see markets start to develop and see momentum the way i described it earlier and once financing comes back, i think you'll see a lot more. >> that's really good color about what's happening in your color. mark, thank you for joining us >> thanks for having me. >> ceo of hyatt. you can hear more from mark in a few weeks at our cnbc evolve conference he'll be joined by other business leaders looking to adapt to this new area of business log on to cnbcevents.com/evolve. it's going to be a good one. tomorrow danny meyer will be here he's going to talk about the state of the restaurant industry of course and the future of new york city. always good on this topic. still to come today,

consumer confidence over six months mike santoli will dig into that report. plus chime taking the number eight spot on this year's disruptor 50 list. that's coming up later at fidelity, you get personalized wealth planning and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts, you see what you'll pay before you trade. personalized advice. unmatched value. at fidelity, you can have both. ♪ more than this ♪

it's time for a cnbc news update with shepard smith. >> thanks very much. from the news on cnbc, here's what's happening at this hour. republicans and democrats are now very far apart on

infrastructure that's from the gop senator john barasso, part of a six-member team negotiating with the white house. republicans preparing a $1 trillion counteroffer to president biden's plan they're expected to release it on thursday. gop leaders are condemning congresswoman marjorie taylor greene for comparing covid safety measures in the house to treatment of jews in nazi germany. house minority leader kevin mccarthy said her words were appalling but he stopped short of disciplining her for her remarks. also in d.c., members of george floyd's family meeting with president biden on the one-year anniversary of floyd's murder at the hands of police. earlier they met with members of congress to discuss police reform. tonight, how has george floyd's death changed policing in america and what's happening with calls for reform and an end to systemic racism? coverage on the news right after jim cramer, 7:00 eastern cnbc.

back to you. chime jumping to number 8 on this year's cnbc disruptor 50 list up next the company's ceo on taking on traditional finance companies and the potential timeline for going public. as we go to break, a check on the after hours movers for you. vi istrom and urban outfitters mongn opposite directions. nordstrom down almost 7% toll brothers is slightly higher (vo) this is more than just a building. it's an ai-powered investment firm with dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. and enough space for a pecan-based

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after-hour earnings mover toll brothers earnings out diana olick with the numbers the stock is a little bit higher. >> yeah, sara. q2 eps 1.80. revenue of $8.4 billion. that revenue up 21% year over year but here are the big numbers next signed contract value was up 97% year over year and the number of homes that they contracted up 85%. both of those are all-time records for toll brothers. remember, toll brothers is the luxury home builder and we're seeing so much of this sales activity on the higher end of the market

ceo doug yearly said we have continued to raise prices in excess of cost increases we talk about land, labor, materials, all those costs going up for builders. he's saying they're raising prices even higher than those excess costs he said they are seeing continued strength in the housing market even as we seem to see more people coming out and perhaps moving back into cities he's seeing this continued strength and so expectations for toll brothers continued strong again, a very nice beat for luxury home builder toll brothers back to you guys. >> diana, thanks for that. cnbc out with its annual disruptor 50 list today. among the names leading the pack is chime the company ranking at number 8 after coming in at number 25 last year. currently valued at $14.5 billion. chime offers fee-free banking and paycheck advances to its members. it recently doubled its overdrafts fee coverage from $100 to $200 joining us now is the ceo of

crime. chris, congrats on this big climb up the list. >> thanks for the honor. it's great to be accompanied with so many other amazing disruptive companies, so really appreciate it. on behalf of the entire chime family and team, we thank you. >> i wanted to ask -- start by asking exactly which parts of finance you're planning to keep disrupting, focused really on payments at the moment savings and lending on the cards in the future? >> yeah, look, we -- chime is a fin tech we're not a bank we partner with banks that hold these deposits we have a mission around helping our members achieve financial peace of mind. we believe a bank account that doesn't rely on fees, that helps you get your paycheck a few days early, that lets you go overdraft without charging a whole bunch of fees and more recently credit. so this has resonated with a

huge segment of america. i think it's going to be natural for us to get into ancillary areas of consumer finance services we do have a savings account today that pays 50 basis points, so we sort of have that box checked already. but i think when you have this highly engaged consumer that we have, there's no shortage of opportunities to get into additional areas >> will you always be doing that lie leaning on your fdic-insured partners or will you seek regulatory backing yourself? >> that's definitely the business model that works well for us today chime before we launch any product, we review it with our bank partners and it gets reviewed by the fdic to ensure that it's in full compliance one of our core values as a company is respecting the rules, so we make sure we're buttoned up on that front before launching new products i wouldn't rule out eventually pursuing a bank charter. but today we're really a payments-driven business model it's not a heavy asset sort of

business we earn money when our members are engaged with our product and using it for their everyday purchases an we see a lot of those. >> you started off by saying you're not a bank. the california regulatory group banned you from calling yourself a bank what would you say to a bank ceo that sees you as competition and taking market share and doesn't have to be regulated like a bank to explain why you're not one? >> well, i think probably the biggest difference between a lot of the traditional banks is that the core to our model and the uniqueness of it is that we profit with our members as opposed to from them so we don't rely on fee income we partner with these fdic institutions we have over 12 partners between our checking account products and our savings account products honestly, we help smaller to midsize banks compete in a

market that is increasingly concentrated by a small handful of banks so we're a great partner of smaller banks. we help them acquire deposits and they can use -- our bank in oklahoma uses these deposits to fund lending operations to farmers. so we think we can play an important role within the banking industry and hopefully create a more competitive market where at the end of the day consumers benefit. that's what we're trying to do again, i just want to -- for anyone that suggests that the products that we offer are not regulated, that is inaccurate. so i would like to correct the record on that >> via your partners though, in some sense on that note, though, chris, you don't have the crosshairs on you in the same way big banks do we're on the eve of a big hearing where the six biggest bank ceos will be grilled. do you aspire to be one of those ceos one day >> we think there's an opportunity to create a very

large, independent, publicly traded company that really operates more like a modern consumer app in a way that they can access a whole host of services including through a range of partners through our platform the love that we get from our members is off the charts. we get almost 50% of our new accounts that we open up every month comes from word of mouth, referrals and organic. so we aspire to be a big company. i think we're sort of on our way to get there >> a public company? i think you said last september that you were looking at an ipo? >> i think we thought by this fall we would be on track to be ready to be a publiccompany. i think i can report that we are on track in that regard. that doesn't mean that we'll be filing, but we definitely have intentions to be a large, independent public company at some point down the line so we're doing everything we need to do internally to make

sure we're ready for that. we take it very seriously and think it would be a great marketing event for our company to continue to get the word out about the value that chime provides >> well, certainly keep us posted on that, chris. thank you very much. it was good to talk to you >> they have got a pretty high valuation already. later don't miss the ceo of fin tech company plaid, number 39, on "fast money." up next, is reopening optimism starting to fade? mike santoli has a closer look at today's consumer confidence report and what it could mean for the broader economy. "closing bell" will be right back

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consumer confidence fell in may, first time we seen that this year, let's get a closer look at the data mike, how worrisome is. >> i love when i predict what we're hoping and you see, it's conflicting signals, this report is a little bit cautionary, the expectations consumers have for the outlook minus present situation. they're saying things look great now but expect it to not be as good this is typical recession pattern, during this recession current conditions are expected

to get better and you see a steady de y up and down, jagged here, maybe because of the stimulus people figure things aren't going to be that good on an ongoing basis. look at this next report says jobs are plentiful minus job to get higher the number, the better labor market the surge is near 20-year highs. clearly people think it's easy to get a job the labor market is strong even if they're not expecting necessarily their personal condition in terms of finances to get better steadily from here so you have a little bit of both right here, but i think in general maybe a stutter step in the improvement of consumer attitude, guys. >> thanks for that it's a tale of two retail earnings nordstrom and urban outfitter when we come

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the financial crisis, all proceeds go to autism speaks, a favorite charity of marks and also the council for education for financial literacy head more to mintable.app/cnbc above 12ether for $20,000. great amount for couple great causes. nordstrom shares falling hard after much harder loss down almost 7%. urban outfurthers getting a pop after beating on top and bottom lines. shares of toll brothers are slightly higher, now up half a percent after recording stronger than expected profit seeing 85% jump in contracted home and as reported strong outlook there as well. >> up next ceo of wall street big banks gearing up to testify before the committee tomorrow

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two hearings coming our way in the next couple days, senate banking committee it tomorrow from 10:00 a.m. titled annual oversight of wall street firms. on thursday house financial services committee 12:00 p.m. titled holding mega banks accountable. six attendees at most on the screen big bank ceos. what to expect we don't know. one analyst asked if he had written anything to preview it he said no i wouldn't have any idea what to write nothing shocking to defend themselves on at the same time a slew of topics they might get grief on from the pp p loans to pay, to junior bank culture, to diversity to buy backs the starting point is the of, r coming out of this crisis is much better than from the last one gives them a chance to snatch defeat from the jaws of victory. they will be trying to avoid too

many headlines >> mike, will you be looking for anything there what else should we watch tomorrow big earnings movers, urban up, nordstrom down >> more than that if a popular congress member asks about the goldman sachs numbers i'd be shocked. >> that's tomorrow, kicking off at 10:00 we're out of time on "closing bell." >> "fast money" begins right now. i'm melissa lee and that is "fast money" tonight's trader lineup guy adami, tim seymour, brian kelly, and james mcdonald. tonight we have earnings alert on nordstrom, toll brothers and zscaler, straight ahead. plus ford gearing up for a big investor day tomorrow, they've been on a tear, three big things to watch heading into tomorrow's event. and later we're trading the chips,