within their company called on tech services that also sells things like smart home equipment and everything else and the installers that come to do it for you. so dish network also, you can see there has been a beneficiary over the last year or so. >> truly under the microscope. >> installers is what i need dom, thank you kelly, great to be with you. great to be with all of you too. thanks for watching "power lunch. "closing bell" right now. thank you, tyler and kelly welcome to "closing bell." i'm sara eisen the s&p 500 is inching closer toward a record high as we kick off the final hour of trading. >> i'm wilfred frost let's have a look at what's driving the action today weekly jobless claims came in much better than expected hitting a pandemic low industrials like boeing and honeywell are leading the dow in hopes for an economic recovery pending home sales this morning coming in weak and durable goods orders fell for the first time in a year. we have 59 minutes left of the

session. >> and we will pick up on that economic data when we talk to dallas fed president robert kaplan he joins us this hour. plus, we're continuing our summer unmasked series with the ceos of elf beauty and cedar fair we gear up for a big holiday weekend. let's get straight to the big stories. mike santoli tracking the market action wilfred with the latest on the bank hearing at capitol hill and ylan mui with details of president biden's budget proposal the dow is up 117 points where do we stand? >> the dow may be giving the illusion of movement because 100 points used to be something. but boy, the overall market is really managing to hover here in a pretty still fashion for much of this week not in a negative way necessarily, it's sort of firm underneath the surface, especially the intraday moves and so we ride that axis around 4200 for a while

you remember a year ago june that was reopening enthusiasm, faang enthusiasm it's been much more measured and choppy over here monitoring the cyclical leadership is something we also should do here looking at industrials compared to consumer discretionary. both of them very much in uptrends both of them saying pretty positive things about the underlying economic forces equal weighted industrials definitely starting to pull away from equal weighted consumer discretionary. we see they're basically in a dead heat. discretionary having a little more of a struggle so it's telling you something about the transition of this phase of the recovery where you had this huge spending boom, pent-up demand and some of the retailers trading off very good earnings retail investor sentiment has moderated. that's a net positive when people are basically not super bullish. it's really looking much like

the market itself. it's kind of muted in terms of bull/bear spread and also choppy we're kind of near the lower end of the range for the last several months that doesn't tell you which way we're going. still a lot more bulls than bears but fits with a lot of other indicators of more balanced positioning and attitudes. perhaps it's been something of a puzzling or frustrating trading range we've been in here for a while, guys. >> workday is a little lower and sa salesforce is the biggest drag on the dow ahead of earnings tonight. >> i think there's a little bit of a short leash people are keeping on these companies as they report, especially the highly valued ones that you mentioned right there. meanwhile, though, you are starting to see a revival in some of the most beaten-down areas of hypergrowth tech. ark investment funds are up several days in a row.

maybe 5% week to date so it seems as if there's traction in some of those areas that got hit hard and people migrated away from for a while so it's another way the market is rotating or re-rotating back in that direction. >> information technology and the s&p is lower. big bank ceos testifying on capitol hill in front of the house financial services committee. wilfred, what were some of the highlights. >> as mentioned yesterday, the opposition to the banks is not as unified as it was for most of the last decade. republican ranking member mchenry kicked off his opening remarks by saying, quote, we're here for the sequel that nobody asked for, end quote also fresh angles of attack that have materialized over the last couple of days congressman mchenry on woke capitalism. >> we don't need the business world to become the political world. i don't think we're better for that and our economy is better

for that and shutting law-abiding businesses to appease to the woke left as well won't help employers, won't help our economy recover. >> another exchange with representative luke meyer on continuing to do business in china, despite human rights violations >> i think the bilateral relationship between the u.s. and china is incredibly complex. there are places where obviously we cooperate and places where we're confrontational but we'll follow very closely what you all do as legislators in terms of how u.s. companies should be engaged around the world andwe take that seriously. >> we operate under 100 countries and operate under the law of the land in each of those countries. we follow the foreign policy of the united states of america which is your policy, so we follow engagement -- >> foreign policy -- >> and when you tell us not to, we don't, like cuba.

how we do business with russia, we follow exactly what you tell us to do because we're patriots just like the rest of you on this call. >> maxine waters will join us next hour. if it continues as it has for the last three or four hours, as with yesterday, i think the ceos will be fairly content that they have come away with no lasting wounds. >> looking forward to that conversation with the chair. president biden getting ready to release his first budget today ylan mui with the details on what we can expect ylan. >> sara, a source tells me that president biden will call for $5 trillion in additional spending over the next decade that includes money for his infrastructure and jobs package as well as his american families plan to expand child care and invest in early education and community college. now, the administration has to pose raising taxes on corporations and the wealthy and my source says that will

increase tax revenue by $3.6 trill ion over the next decade the proposed hike in capital gains is the same level as ordinary level and i can confirm reports that the white house budget assumes that that increase is retroactive, that it took effect in april with the goal of preventing investors from gaming the system so of course congress has the final say on spending and tax policy even some democrats, guys, they're worried that the cap gains increase is too aggressive back over to you. >> ylan, thanks for that much appreciate it. still to come, dallas fed president robert kaplan will talk inflation, the latest economic data and what it all means for fed policy. ford shares popping again today, up nearly 20% over the last month we'll discuss whether the breakout can last. you're watching "closing bell" on cnbc.

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new data showing a mixed economic picture durable goods orders falling for the first time in a year and jobless claims on the plus side hitting a new pandemic low joining us for an exclusive interview is dallas federal reserve president, robert kaplan president kaplan, welcome back to the show. good to see you. >> good to see you, sara. >> you have really led this discussion lately around tapering you're actually talking about tapering, not just talking about talking about tapering do you think that's appropriate given that we've seen a streak of economic data misses, including the last jobs report >> i think this recovery is going to be a little bit unusual and in fits and starts because of the supply issues that we're seeing, which i think for us helps explain some of these data releases but i think we're in a recovery. we're moving forward weathering the pandemic

i think we're going to be making progress toward full employment and price stability. and i've said based on that, sooner rather than later i think it would be wise to start talking about moderating some of these assetpurchases that we put in place during the crisis but i think maybe the efficacy of these versus the side effects, i think that balance is changing as we're emerging from the crisis and making progress i guess for lack of a better analogy, i think it would be wise sooner rather than later to begin gently taking our foot off the accelerator so we can avoid and reduce the probability of having to apply the brakes down the road >> so what sort of negative consequences are you worried about, if you were to take too long how has the calculus changed for you? >> so i'm watching very

carefully in the financial markets keeping our eye on excess risk taking, understanding that when rates are at zero and we're also buying these asset purchases, it creates a lot of liquidity and people are going out the risk curve. but in particular we're watching the housing market where single family home levels are historically elevated. but i think more than that, we're seeing single families competing with private investors who are also buying homes fully furnished to rent. and i think it's my own view that at this stage as opposed to a year ago these mortgage purchases, for example, might be having some unintended consequences and side effects which i think we need to weigh against the efficacy and so i think some restraint and moderation as we move toward weathering this pandemic i think

would be useful in mitigating some of these excesses and imbalances. >> do you think you're on your own with that sort of perspective? certainly when we hear chair powell in his public appearances and public comments, he seems not to share any of those concerns at all. >> so i guess i won't comment on the group or where we are. obviously we'll have a meeting here in mid-june we will, as we always do, share our views. i think one of the great things about chair powell and his leadership is he encourages me to express my views, to debate, to disagree. out of that process i think we'll make better decisions. so i'm confident that we'll have a good process and we'll each bring to that what we're seeing and debate and disagree and come up with appropriate policy

>> very civilized response and discussion around the fed table. so you mentioned you're watching asset bubbles, you're watching the housing market what about inflation overall, president kaplan, are you worried that the economy is overheating and the fed would be behind the curve if it didn't move sooner rather than later? >> we've got cross currents that we're observing as relates to inflation. you've got the cyclical elements of it that not only have to do with the normal business cycle but the reopening, which is underst understandable that as we reopen you're going to see price pressures and we're seeing that. we also have a number of structural elements. you see capex behavior changing in a number of raw materials industries we're seeing an example the semiconductor industry has got substantial capex that needs to be spent and against that you've got some

other trends like more infrastructure spending coming, which will increase demand, particularly for some of these materials. you've got the green new economy which will change supply and demand and on the labor side we've been talking for years about the aging of the workforce you know, we think since february of 2020, 2.5 million workers have self-identified as retired. another 1.5 million are women at home with kids and so i think some of these supply and demand issues may be somewhat persistent here. and so my job is not to put a label on it or to know exactly the outcome, but it is to be open to a range of outcomes and manage the risk, understanding our commitment is to anchor inflation expectations at 2% and this is why from a risk management point of view as

relates to this, i think, again, taking the foot off the accelerator here very gently may be a factor in managing these risks. >> so interesting. i just want to use a quote that came today from the bank of england chief economist. he said, quote, the situation we need to avoid like the plague is one where inflation expectations adjust before we do or where we wait for positive proof that effects on inflation are not transitory before accountting the reason i bring that up, how is it that we are in a case state of play that a chief economist of another central bank is saying we have to avoid that like the plague but the consensus view of the fed is we'll wait, we'll wait, we'll wait we have to have endless proof for many months before we consider tapering. again, do you have quite a lot

of clashes with your colleagues on this point of view? >> you've got to remember going to pre-pandemic we went for years in the united states where we were not hitting our 2% inflation target even with a very tight labor market and one of the trends that occurred then and is still with us is technology, technology enabled disruption limiting the pricing power of business. so coming out of this pandemic i think we've got some paradigm shifts it's not surprising that it's a challenge to understand these shifts as we do that, there's no textbook for this. you don't want to be so preemptive that you choke off the recovery but on the other hand you don't want to be so reactive that you're late and you're behind the curve. but that's the balance -- it's not surprising in this time of paradigm shift in the aftermath of the pandemic that we're struggling to find that balance. i think that's to be expected. >> president kaplan, there's

word today that the biden administration is calling for $6 trillion in spending, running deficits forth of $1.3 trillion every year for the next several years. we're going to need a lot of buyers and foreigners have slowed their buyers lately you're talking about tapering. who's going to buy all those treasuries to finance that debt? >> so, spent a lot of time talking to contacts in the business sector, in the financial sector i think there's a lot of attractiveness around the world for the u.s. dollar and for the u.s. treasuries and also you've got an aging society, substantial amount of pension fund money so i think this is why -- and jay powell has said this -- we need to telegraph well in advance our intentions, give the market plenty of notice, and do it -- i think we should be doing

this when we do start to adjust purchases, do it in a gradual way. but i think there's going to be -- i personally think there's going to be a strong bid for the u.s. treasury but i also realize that the market is going to have to find its level. i've said many times i think on this program it wouldn't surprise me and i think it might even be healthy to see the 10-year drift upward from here pre-pandemic we forget already the 10-year was at 1.75% to 2% and i think there's a point when you emerge from the crisis i would -- i think reducing our impr imprint on these markets will be healthy and, yes, the markets will have to find their natural level. >> what about labor shortages. we've heard plenty from various guests about the shortages people are experiencing. is that something that concerns you? if we do see wages go up because

of that reason, is that a good thing or a bad thing >> so here's what we're seeing, first of all so i mentioned if you look at the employment to population ratio in february of 2020, it was about over 3% or 300 basis points higher than it is today, so about 8.5 million workers our analysis at the dallas fed, and we just put out a paper this morning to talk about this as i said earlier, about 2.5 million of those 8 million people are people that have self-identified as retired some of them will likely come back in but it's hard to know how many 1.5 million are women with children and then you've got the issue for another 4 million plus of the impact of unemployment benefits so the labor force we think is tighter today than the headline employment numbers would suggest. yeah, i think you're seeing it actually in firming wage

numbers, both in low skill, but also i think you're going to see it in skilled workers. and i do worry -- i hear from high school superintendents, principals, as well as junior college superintendents. high schools are telling me that senior classes are smaller a lot of their students have dropped out to work. but it's important that they get back and get their g.e.d. because they're going to need to go for skill training and need a g.e.d. to do that. we're hearing from junior colleges that skills training enrollment is down substantially. so we've got our work cut out for us to get people back in the workforce, to get people also back in skills training. so yeah, i think you'll see some impact on wages. could it be even welcome yes, i think it could be but i think we've got to get this pipeline moving this is why i talk a lot in this job about improving skills training, beefing it up, but also improving the whole education ecosystem starting

with early childhood literacy. we need to improve the education pipeline. >> robert kaplan, thank you so much for joining us. the hawk on the fed. did you ever think you'd be the most hawkish member of the fed >> well, no. in '18 and '19 i was calling for a pause and in '19 i was dovish calling for rate decreases so i think you adapt to the reality. these labels -- i'd call myself a centrist or a moderate my guess over time, that's probably going to be more acc accurate. >> robert kaplan, thank you very much for sharing your views. president of the dallas fed. >> thank you. >> great conversation there. dollar tree falling today despite posting an earnings beat we'll break down that move and what's pressuring the stock, next. plus the ceo of elf beauty joins us as part of our summer unmasked series to weigh in on the consumer and the big boost the company is seeing in online sales. as we head to break, check

out some of today's top search tickers on cnbc.com. amc up 43% -yr,10ea ford, nvidia, snowflake round out the top five

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ever six-pack of its beyond burgers in canada. yesterday they announced a partnership with kfc in china to bring new items there and the stock is up 12%. shares of dollar tree are falling today. the company beat on earnings but released weaker-than-expected four-year guidance citing higher freight costs. the stock is down 7% as we stand. bank executives testifying on capitol hill today. coming up, we will ask house financial services committee chair maxine waters whether she's happy with the answers she got from the ceos. as we head to break, the ten-year yield trading up around 1.60 some focus on jobless claims that did come in lower and better than expectations a new pandemic low, just above 400,000. we'll be right back.

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welcome back time for a cnbc news update. rahel solomon, has that for us. >> hello, everyone the u.s. has reportedly told russia it will not rejoin the

open skies arms control pact president trump took the u.s. out of that last year. afghanistan's government and armed forces are strong enough to stand on their own. "the new york times" reports that dozens of afghan military outposts have already surrendered to the taliban with enough votes to end debate, the senate is moving to pass broad legislation designed to make the u.s. more competitive with china and in south korea, mcdonald's is working to stay competitive. the company bringing in young people with a special meal inspired by the popular k-pop group bts. it features chicken nug gets, french fries and a coke and dipping sauces that are said to have been picked by the members of the band. it is available in 50 countries, including right here in the u.s. through the end of june. sara, it seems this is the thing they are doing travis scott had that deal

it seems like if you're a celebrity these days, you have a meal. >> the travis meals were nuts. rahel, thank you. >> sure. >> rahel solomon. we've got just about 29 minutes left to go the dow is higher by 107 points. nasdaq just dipped into the red. the s&p 500 barely hanging on to positive territory small caps are zooming, up 1.25%. up next we'll talk to the ceo of elf beauty about the reopening and whether they'll see a boost when masks coming off. "closing bell" is coming right back vid call. you got to move the phone in front of you like..like it's a mirror, dad. you know? 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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shares of elf beauty moving a bit lower following its earnings after the bell last night. the company beating on both the top and bottom lines and giving better than expected full year revenue guidance full year earnings guidance a little lower than expected the stock is up 15% this year. could the economic reopening lead to an even greater glow up? joining us as part of our summer unmasked series is elf beauty and ceo. it's great to see you again, thanks for joining us. talk about what you're seeing right now from the consumer in

terms of makeup, skin care and what those trends are telling us >> well, we're definitely seeing a resurgence in the color cosmetics category as well as skin care. last year as a company we did great. i think we just finished a quarter with 24% sales growth. but i'm particularly excited about as people get vaccinated, as consumers get about their normal lives, the ability and what that means for our category >> what about margins? what is the outlook? a little concerned about the guidance outlook clearly input costs are rising and so are commodity prices across the board is that going to be painful? >> i think in the short term there's certainly -- like many other companies we're facing the global imbalance of containers which is leading to supply availability and higher costs. imbalances tend to balance out over time so long term i'm not worried. it's continuing our momentum and

continuing to pick up market share is our focus. >> what about market share you mentioned in the release that you are one of the few brands to actually grow it during this time period. who are you taking share from? does that have to do with the lower price point or the way consumers or shopping or your assortment or what >> i think it's a number of different things we were the only top five brand in the last year that picked up market share we picked up 100 basis points of market share and i think it speaks to our value share. we'vebeen executing well on a strategy over this time including our ability to engage gen z through our digital efforts. our online business was up triple digits last year. i think we're really firing on all cylinders. >> looking at the analysts' notes following the release, it seems like some were thinking the guidance was a little bit soft, yet they had confidence you'd be upping the guidance throughout the course of the

year can you comment on that at all >> well, we always hope to do that i think that's been our track record over the last couple of years where we've been able to exceed expectations and continue to build both market share and our business i feel we're even stronger than we've ever been. our elf cosmetics brand and skin care brands are doing really well we're also excited about our brand new lifestyle beauty brand with alicia keys as well as our clean beauty brand >> a lot of companies in your business are higher. a lot of consumer companies are higher is this a rising tide lifts all boats kind of environment or are you seeing a distinction in the different innovations or lines that you're doing versus your competitors? or are they all going to work as everyone reopens and goes out? >> i think we definitely have points of distinction. i go back to our fundamental value equation our ability to engage gen z.

most importantly is our innovation we were one of the few companies through the pandemic that continue to launch new products that really resonated with consumers. we have an incredible pipeline of innovation coming up. so i feel like we can continue to execute and continue to do well even in a market where i'm hoping everyone does well. >> is lipstick back? it took such a hit with the wearing of masks >> well, lipstick is going to come back as are other categories we just had a launch of our camo cc cream it's already our number one item in the foundation category so we're seeing real strength across all the different categories of color cosmetics. >> quickly remindi us of your demographic. i always think of elf cosmetics as going for a younger demo. >> we do skew younger. we're quite strong against gen z. we're the second most favorite

amongst teens, eight votes shy of number one so we've had a very strong following in our ability to engage gen z including through platforms with tiktok we recently got into gaming with twitch and our live stream there. our tiktok gamers got talent has now amassed over 13 billion views so we definitely have a way of engaging younger consumers but even beyond that i think it really speaks to the digital strength that we have. >> t >> great to talk to you. thank you for the update on the company. elf beauty, that is eyes, lips, face >> do you wake makeup yourself >> i do wear makeup myself not lipstick maybe. next hour in our summer unmasked series, we will continue with the ceo of cedar

fair, ticker symbol fun, on what they're expecting this summer as we get ready for a big holiday weekend. up next on "closing bell." shares of ford are much higher we will be discussing that and much more.

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mike santoli is here to break down the crucial moments of the trading today. today we have stephanie link with us as well. let's kick things off with the broader markets. major averages in the green, up for the second straight day but small caps are outperforming for the second day in a row, up 0.4%. nasdaq down 0.3% mike, is the takeaway now that 5% pullbacks will be the max for the whole of 2021? is it a pretty big surprise we haven't seen more than that. >> there's no way i'm going to say yes, it's determined it's going to be the max. 5% has been enough to kind of relieve some of the pressure and have the market digest these rallies. no, i wouldn't say necessarily that you can just bank on that at this point the uptrend is remaining intact there has not been any real undermining of the leadership. even today if you look at transports up 1% and it's remained in this cyclical

gearing in the market. so i think until further notice, things seem like they're okay. i think it's fair to ask if we're overdue for some surprise to the downside from some direction that we don't really anticipate but right now it's really hard to see it emerging at the moment. >> steph, what do you make of the recent price action today and this week as a whole if you look at the biggest losers, it's defensive groups like utilities, health care and some of the cyclicals like technology are higher. >> yeah, i think the big part of the question to answer is why is there -- there's so much rotation happening, right? we've been going back and forth all year long. for the most part value has outperformed growth by about 11% if you're looking at the russell 1000 indices the last couple of weeks, sara, actually it's felt like growth is trying to make a comeback i think a lot of that is because we are seeing -- we're hearing

people getting concerned that we're at peak economic growth. by the way, there's no inflation, it is 100% transitory i don't really subscribe to those things as you know i think maybe we have seen peakish growth in the economy but i expect it to stay strong because i expect the stimulus still to be kicking into the system now we're about to get an infrastructure package who knows if it's a trillion or 2 trillion but it's a lot. i think that will act as a tailwind for the economy the one interesting point on manufacturing is we're starting to get a capex cycle they saw 42%, an all-time high that's a new nuance. we've been talking about pmis and isns forever durable goods and accelerating orders forever that's a good sign and encouraging and another tailwind the consumer remains strong. on inflation, i actually do think there is wage inflation. so maybe commodity inflation is transitory, but wages are going up ask any company out there.

they can't get people. when they get the people, they have to pay up for them. so i still think this is a recipe for cyclicals economically sensitive stocks, reopen names they took a pause but i think they will resume. >> but even the fed thinks the wage inflation is transitory earlier this hour we did speak with dallas fed president robert kaplan here's what he said about when he thinks it's time to taper >> i think it would be wise to start talking about moderating some of these asset purchases that we put in place during the crisis, but i think maybe the efficacy of these versus the side effects, i think that balance is changing as we're emerging from the crisis and making progress. >> now, mike, he's kind of on an island right now because we have fed members on this show every other day. nobody is talking about tapering

at the moment. nobody is talking about some of the risks in the housing market, for instance, with the fed buying mortgage-backed securities having said that, where is the market on the taper discussion is the market prepared for this to begin soon? >> i think the market is prepared for this level of discussion about it. the market is prepared for it. everybody is acknowledging that this will be a process that gets under way before terribly long nobody is pinpointing it kaplan is flagging the idea that we might get an overheat in the housing market first of all, we're starting to see a little give back in the housing data i tell you, i don't think the fact that mortgage rates are trading tight to treasury yields right now, which might have something to do with the fed buying mortgage securities of $40 billion a month has anything to do with why the demand for houses are as strong as they are. do you want to raise the cost of funding because the housing market in some areas seems pretty overheated?

so i think that's why you'll get pushback on that point of view because they're in a broader project here, which is to gun for full employment and to actually attempt to get inflation much higher and not fear that. >> steph, with that in mind, are you fearful at all of not rates going up but tapering beginning later this year? >> i think you have to embrace it, wilf if they're going to taper, it means that the economy is doing better, right? that the fed did its job i think also if they do it gradually, that's going to be important. there's no question in my minding that the day that they do come out and say they're going to taper, the markets are going to be soft they're going to be weak there's no doubt about it. it goes back to what i said before the stimulus is still very, very much up and running and we're going to get more. that's a nice tailwind for the economy as a whole. >> as more americans get vaccinated and resume traveling, they may be leaving home

improvement purchases behind bank of america is tracking weekly credit card spending and found that furniture purchases, while still elevated since the start of the pandemic, have been falling the past several weeks and spendingon travel has picked up. furniture retail stocks are negative over the last month wayfair up 4%. the major airlines are all in the green during that same period as well as hotel stocks like hilton, marriott and hyatt. it's interesting, steph, this rotation that we've seen the headline growth in cyclicals. but within some of those cyclical reopening names, some are benefitting and others not what's your key on getting exposure there >> i have a lot actually, wilf i have wynn, i have marriott, i have vail resorts and match.com. i have a lot of reopen names i want to have reopen names because i think there's almost $2 trillion of potential pent-up

demand from the consumer just looking at the savings rate. i know the savings rate is elevated because of the fiscal policies put in place, but it is what it is the numbers are the numbers. if you go from 27% savings to 5% and let's say we don't even get back to the 5%, that's so much money. i think people are dying to go to experiences versus things so that's why i still like these stocks every one of these companies that i mentioned on their conference calls talked exactly about how they are seeing sequential improvement month over month they have to take baby steps, but i still think the valuations do not reflect earnings having to go up materially more, and i think they will. >> what about the home furnishing trade, mike, which was so hot wayfair, rh, williams-sonoma is that over given the shift in spending >> i would not say over. i would say probably got overplayed in the short time there's going to be a pause. there's probably going to be a

little bit of a lull in that activity with williams-sonoma there was talk it was coffee machines and home appliances. things that people were building out for homework kind of stuff and that's obviously going to go away but it's pretty linked to the housing market too, that general category so you'd think as long as you have a long tail on the housing turn o turnover story, it's going to come back. gm and ford are two of the big winners on wall street today. phil lebeau has more. >> another big day for ford. the stock moving up close to $15 a share. that is a six-year high. it really has accelerated the last couple of weeks rbc upgrades ford to outperform today. that lit a fuse under the stock. then they have ev enthusiasm growing. remember, they had their capital markets day yesterday. the bulk of what they were talking about is preparing for a

future heavy on electric vehicles then there's the possibility for the entire industry, the chip shortage may be easing take a look at shares of general motors they said they're going to be restarting production at five plants that stock up 5% all of the auto stocks higher today. the parent of fiat-chrysler, toyota both at 52-week highs a big week for the autos all around, guys. >> phil lebeau, pretty stunning to see thank you very much. steph, so how does the valuation look on some of these names, a ford or a gm and how do you think about valuation when there is ev hype around these names and you have a stock like tesla out there >> i know. i can't believe i've missed both ford and gm. they're doing a lot of good things gm was the start in ev obviously and ford is following. but ford delivered the f-150 was so impressive in terms of their ev truck. it was so impressive in terms of style and pricing. they're going to get it out earlier than expected.

so they're executing they have the product. they are part of an $800 billion total addressable market in ev by 2027 so they're in the game they needed to do it and so i get it the stock is up 70% though, right? that's year to date. so it trades at 13 times, it's not expensive, but it's had a nice, nice run and gm is up 44%. it's hard to chase them but i understand the enthusiasm for both companies going from being dinosaurs really to being cutting edge >> mike, interestingly tesla has done well during this latest leg higher for the traditional auto names as well. >> coming from a different spot obviously with months of pretty grinding pullback action in that stock. yes, it's participating. i do think you have o, when it comes to ford in particular, gm to a lesser degree, also acknowledge it is catching the jetstream of the meme stock frenzy it's a low priced stock. there's an ev story to it. options volume today is massive.

it's the second most active option share volume is a quarter of a million shares the average is 78 million. so there's something going on here that's a little more than just, hey, we think ford's strategy is going to work here it only trades under ten times earnings so keep that in mind, that there's a little bit of a kind of promiscuous activity going on when it comes to the meme traders going after new names. >> why is amc up 33%, mike i know you did an analysis yesterday. bring us up to speed this is a $12.4 billion company that was almost bankrupt six months ago. >> people didn't like mike's valuation analysis, that's why. >> i said it would not have an ounce of impact on how the stock trades there is no explanation for it you can't really follow the rationale. it's 676 million shares that have traded today in amc

there are fewer than 500 million shares in existence so the entire outstanding share base has turned over. if you think this is a short squeeze and the herd believes it's a short squeeze, only 20% or so is short it's traded five or six times the entire short base today. if everybody covered, there's no more short squeeze to happen so it's honestly one of these bottle rockets it's going to go until it doesn't go anymore there's nothing to pin it on it's multiples of what this company was at the height of its market value a few years ago when the movie business was in better shape and we didn't have a pandemic or reluctance to sit in a theater. >> that's one way to put it, mike we've got a market flash on ge let's get to kristina for that >> there's a conference going on and the cfo of ge just announced that we can expect cash flow to be negative for ge in q2 he also went on to say we can similar year over year improvement in q2 cash flow like

we saw in q1 the share price is climbing and inching closer and closer to that 52-week high. >> just over two minutes left in the trading day, mike. in the green for all three of the major averages just about. >> yeah. actually below the surface it has been pretty positive, especially when you talk about share volumes. just because of the nuttiness in some of the meme stocks. if you look at straight advancers to decliners, 2-1 to the positive side. you've got small caps outperforming big caps things are fitting pretty well look at microcap stocks. iwc is the etf that tracks microcaps which is the smallest half of the russell 2000 and that's compared to the xlg, the biggest stocks it's about a three percentage point spread of outperformance among the tiniest stocks the volatility index is certainly feeling some pressure and starting to buckle a little bit. it's under 17. obviously the market has been

flatlining that should drag on vix. a little bit less of a hedgingin continuity with the market near its highs. also the fact that we have a three-day weekend coming up, that usually does drain away some of the volatility as we have month end tomorrow, which i don't think anyone is expecting too many fireworks because we do have a big fund rebalance at the close today. >> mike, thank you we've got just about a minute left of trading. let's show you where we stand in the market the dow is higher by -- we're pushing even higher as we speak, 171 points there you can see a little tick up here into the close as far as the biggest contributor to the dow gains right now, it's boeing honeywell and caterpillar. industrials catching a bit into the close along with financials. goldman sachs also one of the big gainers in the dow p & g, amgen and sales force some buying here into the close. i mentioned industrials and financials materials are also strong, so

are communication services, consumer discretionary and energy sectors consumer staples and utilities are the biggest lags information technology is also lower. but the nasdaq is higher by more than a tenth of 1% facebook is trading at a record high you are seeing weak innocence other big cap tech like apple, amazon, microsoft and nvidia off earnings the biggest winner by far will be the small caps of the day closing up more than a percent, wilfred. >> indeed, as the bell rang twice nice and loud today. welcome to "the closing bell." i'm wilfred frost along with sara eisen and mike santoli. sara said small caps were the best performers, up over 1% at the close. the worst performer, the nasdaq as things settle down. the s&p 500 down 0.1%. industrials, financials, materials the best performing sectors. consumer staples at the bottom of the pile. get ready for another big

hour of earnings we'll have results from salesforce, hb box and dell. plus we'll get more details on the state of the consumer when numbers from costco, gap and ulta beauty are released also maxine waters. stephanie link is still with us and david joins the conversation mike, to you first of all. a positive week overall. perhaps the key takeaway from a lackluster final couple hours of trade today. >> the s&p 500 closes just about exactly on 4200. that's been really where it's been gravitating toward the last several months -- weeks and days, so it's kind of stuck there. i mentioned we had that fund rebalance at the close and it did seem like it was animating some of the sector activity. the expectation was the big momentum etf was going to be

buying a ton of value names, financials and industrials and things like that because those have been where the momentum has been in the market and probably selling more of the tech and defensive type stuff so that seemed to be evident in a slow tape at the end of the day to shuffle things around but really again netting out to not a lot of movement on the headline index the market has been kind of sturdy but unhurried here. not a lot of urgency on either side as i say, there's the old adage never short a dull tape but we also have really waning momentum as well. >> did you see the figs ipo, mike i wanted to bring it up because it did extremely well in its debut. figs is the company that sells fashionable medical scrubs to health care professionals and sold a lot of masks during the pandemic they also offered some shares to robinhood users for early access so attracting the retail investor just wondering what you make of it it hasn't been as hot for ipos but there was a lot of enthusiasm.

>> no, this one i think there was a little bit of a particular story to sink your teeth into. the robinhood outlet is probably not insignificant in terms of just getting the word out amongst some smaller traders it's a brand that i think has been in front of people's eyes who would have thought a disruptor in kind of the uniforms area, but it seems like that's exactly what it is. and a decently priced ipo with a story. it's always going to play. the direct listings have not really distinguished themselves right out of the gate in terms of their price action so it seems like that verdict is still out in terms of what is better on day one for the stocks. >> david ellison, we were talking earlier about the fact that we haven't seen a full 10% pullback and whether one was likely in the second half of the year where do you stand on that >> i'm not too worried about the pullback of the mark i think we've already had it

we've had a lot of these tech stocks go down a lot financials didn't go down a lot this time. but i think it's been a healthy month here i feel like a lot of things -- we've dealt with inflation, we've dealt with the taper, we've dealt with the government deficits so i feel like earnings are just too strong, balance sheets are just too strong to have a significant downturn that lasts a long time. >> steph, you were saying earlier that the market feels like growth wants to make a comeback, some of these tech names wanti to come back strong as inflation is thought to be transitory and the nasdaq is up 2% this week and it is outperforming. are you buying any of these names or just sticking with the value cyclical play and don't want to be in growth right now >> well, i think you definitely have to have diversification i've used the word barbell a million times this year alone where you want to have some cyclical exposure, economically sensitive companies, reopen

names. they will benefit more they will have more operating leverage versus secular growth but you do want to have secular growth i just recently bought twitter because it's down 32% from its march lows snap trades at 29 times price to sales. i know why the stock is down it was a crummy quarter and there were issues on growth. so i think you can nibble at a couple of these names but i do still lean probably like 70% cyclicals and it happens to be value and then 30% is secular growth always looking for opportunities. by the way, i wanted to send out this number that i saw today on u.s. m & a year to date it's at $972 billion versus $230 billion last year that's up 32%. i know we have really easy comps but it speaks to confidence and visibility that the ceos and boards have about the next six,

12, 10 months out down the road. so i think that was an interesting stat to kind of call out. >> let's -- very interesting indeed and perhaps we'll talk with david about preference within the banks in light of that first let's get to box earnings. josh lipton has those for us. >> 18 cents versus expectations of 17 cents and revenues up 10% to $202.4 million. q217 to 18 cents versus expectations of 19 cents revenue 211 to 212 versus expectations of 205. for the year they are looking at 71 to 76 cents and revenue of 845 to 853, slightly above let me touch on that eps guidance because i did just speak with box's aaron levy about that on the face of it it's going to look like it's below consensus but aaron levy said that is due

to preferred stock dividend paid to kkr which made that investment and that explains the discrepancy. if you exclude that, aaron levy is saying their guidance is slightly above consensus turning to another big issue for the box investors is this battle with starboard value remember the investors nominated their own candidates to the board ahead of the shareholder meeting pitting their candidates against the ceo aaron levy and two other directors. they're frustrated with what they call poor results, subpar shareholder returns. aaron levy is punching right back on that he told me box is one of the best performing stocks they are guiding to between 18 to 18.5% they're on a path reaccelerating growth and they continue to have one of the strongest boards in enterprise software, so that battle continues back to you all. >> really interesting one, josh,

thank you very much for that of course box and aaron levy often on the show. i want to pivot back to the markets. david, we were talking about m & a picking up what's your preference now between those investment banks and the more consumer focused retail banks >> oh, i think i've got to fix my computer here there you go you know, i think the m & a cycle especially for banks is going to be huge i think it's going to be huge like across the whole economy because there is a lot of confidence building in these companies. i think people realize they need to be competitive and buy something and do stuff that's going to keep them relevant, especially in the financial space. but i think the banks to me are in the best relative position because they have the most to benefit. they really have not benefitted from the reopening yet it seemed like everybody else has but them meaning that they have tons of liquidity that they can't use,

they have no loan demand and they have spreads or interest rates that are not super favorable. so if all those turn in their favor as the economy opens, i think the stocks will react. so the fundamentals in the banking industry, while credit is very good, all the other ones are not good and have really not seen any improvement from the reopening yet. i think that's the next sort of 12 to 18-month sort of mystery if they improve, the earnings are going to go up a lot. >> we have another earnings report, salesforce and kate rooney has got it for us. >> wilf, salesforce with a beat in q1. revenue at $5.96 billion up 23% year over year a strong wbeat there eps $1.21. second and full year guidance also above estimates marc benioff saying this was the best quarter in the company's history. they are raising their revenue

guidance for the fiscal year by $250 million to about $26 billion. he does say that they are on a path to reach $50 billion in revenue by fiscal year 2026. one big hangover, the stock this year has been the slack acquisition. we're expecting some questions about that on the call that kicks off at 5:00 p.m. eastern the stock getting a little bit of a boost here after hours. back to you. >> up 2.3% kate, thank you. don't miss jim cramer's exclusive interview with marc benioff on "mad money. let's get to hp earnings josh lipton with the details. >> 93 cents versus expectation of 89 cents. revenue up to $15.9 billion versus expectations of $15.02 billion. in terms of guidance, they're looking between 81 and 85 cents. the street was at 75 for the year between 340 and 350. the street was at 330.

personal assistance pcs, 10.6 billion versus 10.5 billion expectations and printing 5.32 billion. i did have a chance to speech with the hp's ceo. we talk about the pc market and trends he's seeing there obviously a big question for investors as the world reopens what does that mean for pc demand he continues to see very strong demand on the consumer side and commercial side. also getting stronger as offices are reopening. he sees this continuing through 2021 and 2022. he said that's due to working from home, hybrid work and kids using pcs to learn the pc has become essential. we also talked about the chip shortage, what it's meant for his business and how he's navigating that. he said it's driven by strong demand this is a challenge but hp's results show we know how to manage the situation versus simplifying the portfolio, signing long-term agreements with suppliers

this stock was up. it's up about 100% since its recent low last may. down here at least initially after hours. >> steph, we've got a lot to choose from there. i wanted to hit salesforce and what marc benioff calls his best quarter in history guidance looks like it's coming in higher for q2 and the full year what's been hanging on this stock, which as kate mentioned was the slack acquisition. do you have questions about that you've liked salesforce and liked benioff. the company will say we got these questions when he did acquisitions and we proved their worth and the growth trajectory. do you feel that way with slack? >> as long as they don't do any more deals let's get slack integrated, hear a little more about the details there. they have very easy comparisons going forward. i was just looking at their remaining performance obligation and they rose 19%, way better than expected. so really good visibility going

forward. i want to see what the billings number is and subscription revenue. but the stock is only up 2% year to date and up 29% in the past year it's much cheaper than any other saas cloud company it's always on my radar screen because it's the best management company and they have got a great business model. >> the subscription and support revenues were $5.54 billion. 24% increase. ulta earnings are out. rahel solomon has the numbers. >> and the stock is moving up nicely on the back of what was a good quarter for the beauty retailer earnings estimates came in at 4.07 adjusted. that's almost twice the expectations revenues came in at 1.94 billion. the estimate had been 1.64 billion. i want to draw your attention to comp sales they were up 65.9%

the expectation also nice, 40% of course the company was in a very different place a year ago, but still a very nice beat compared to expectations the company also seeing a rosy outlook in the future, raising outlook significantly. we should say the company cited consumer confidence, which we've seen in the data, states relaxing restrictions and a desire for newness, as you guys talk about, masks off, what the consumer likes the call begins in about 15 minutes and will likely be the last call for the outgoing ceo mary dillon, so a lot to hear there. she has said on cnbc that she's expecting a roaring 2020s as far as makeup is concerned the numbers do seem to support it and we'll see what the company says in about 15 minutes, guys. >> up about 4% after hours >> it's another makeup company. >> and makeup is having a movement. >> do you know what ulta stands for? >> i don't. >> neither do i. >> it's make not an acronym.

>> but you did know that. >> i did. >> shockingly. stephanie link, david ellison, thank you for joining us. >> thank you. still ahead, we are still awaiting earnings from costco and gap. instant analysis of those results as soon as they're out. plus fairlead's katie stockton on why she thinks the tech comeback may not last. we will discuss the labor shortage issues facing amusement parks with the ceo of dar ce fair we're back in just 90 seconds on "closing bell. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

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the tech heavy nasdaq 100 closed in the red today breaking a three-day win streak the nasdaq 100 on track for its best performance in seven weeks in terms of weekly performance joining us now katie stockton, founder and managing partner of fairlead strategies. katie, thanks for joining us why don't we kick off with the nasdaq 100 and what you're seeing in that particular chart. >> well, this is the current debate we saw the nasdaq 100 index exhibit downsize leadership during the recent pullback at the start of the month and then off of the may, sort of mid-may low we've seen upside leadership so the natural question is whether that can continue. usually when technology and the heavyweights that come plies the nasdaq 100 index are leading to the upside, we have a stronger tape so all eyes are on the likes of the faang plus m stocks. crm is a top ten holding of xlk.

when you look at xlk which is the technology spider etf, that etf has lost relative strength and that's been happening for really a few months now. you can see that when you look at a ratio of xlk to, say, the s&p 500. when you look at the 200 dave moving average they have sort of moved over when you contextualize that growth, it looks like it probably will fail and probably will do so pretty soon with now short-term overbought conditions becoming somewhat widespread there. >> and what about market breadth when you look at the s&p 500 >> breadth has been pretty flat actually so in mid-april we saw the percentage of stocks above their 50-day moving averages at around 92%. that measure is now around 74%

so we've definitely seen some contraction over the past few weeks or so. with that we're seeing a lot of consolidation in the underline it's not an unhealthy loss but what it means is we're not seeing a whole lot of technical catalyst, if you will. my preferred catalyst is a breakout or breakdown. we're not seeing many of either. i know you're probably going to ask me about ford because it's one of the very few stocks that has broken out in this environment where we're not seeing a lot of it. >> i was going to ask you about ford and whether you would chase that it's tragdsding at a five-year high. >> today's gains provide confirmation against the recent highs. when you see breakouts they are working in this tape we want to defer to momentum where we see them. ford has been an established uptrend but saw a very healthy corrective phase and now seems to be advancing from it. we have ways to derive price targets using the charts

a very simple way is a measured move projection. it assumes the trajectory will maintain itself. for ford that would put it at above 16 for ford it's not as impressive as a few days ago but still suggests there is upside more importantly the breakout is a bullish development and solidifies the long-term turn-around we've seen in ford over the past year or so. >> katie stockton, thank you very much for going through some of the charts with us. >> of course we've got more earnings out. gap and costco both look strong. courtney reagan with the numbers. >> yeah, let's start with gap. for the first quarter reporting earnings of 48 cents, much stronger than what the street was expecting at a loss of 5 cents. revenues stronger than expected at 3.99 billion. the full-year earnings is a range of 160 to 175 adjusted, also well above analysts' f

forecasts of 138 and when it comes to the comp sales, these are complicated because the company is trying to give us numbers that reflect online sales and comparable sales on days stores were open on the same day in the current period and comparable period those first quarter comps total were up 28% compared to last year, up 13% compared to 2019. when you look at the breakdown, it's still old navy and athleta that are the strongest of the bunch. there is a healthy gap business in north america there was a resurgence in summer fashion with dresses rebounding, similar to what we saw from others 82% digital growth, but that is compared to 2019's first quarter. shares are higher by just about 3% and then we'll move on to costco this is also a beat on the top and the bottom line for costco's

third quarter. they are reporting $2.75 per share. the street was looking for $2.34. the comparable sales for costco in total up 20.6%. the u.s. alone up a little more than 18% and e-commerce higher by 41% shares just marginally negative, which is fairly often the response when we get numbers from costco. back over to you. >> thank you, courtney courtney reagan. don't miss jim cramer's exclusive interview with gap's ceo tonight on "mad money. the company is going to open 30 to 40 old navy and 20 to 30 athleta stores in 2021 close 75 gap and banana stores in north america and c shares up 120% as meme stocks make a comeback

let's send it back to mike santoli for a look at short interest in the market. >> obviously another bout of pain for those who are short these particular stocks coming into this week part of the whole story line is target these heavily shorted stocks in general, this is not a heavily shorted market this is the median short interest of s&p 500 stocks, a percentage of market cap yes, it's up off the lows of a couple of months ago but this is very low historically. essentially there has been a little hesitancy to bet against a loft stocks out there. all else being equal it would suggest there's a little less latent buying power out there. look at heavily shorted stocks to those lightly shorted this is sector neutral, which means it's the most heavily shorted stocks in a sector against the least shorted stocks over time cumulative returns, and you see heavily shorted

stocks tend to underperform over time however, after a really bad bout in the market like in 2009, you have this huge rally in those beaten down stocks that have basically been left for dead this was the gamestop move a little bit of a switch back. maybe this will take off again but it's very difficult to have a sustained rally when you're really just betting on short squeezes it kind of burns itself out. as i mentioned earlier, when it comes to gamestop in particular, even a mamc, the short interests way below where it was in january. >> mike, despite the fact everyone said, oh, it's going to burn itself out and it did build enough momentum in the short term, the question for markets is even if that does happen, do we then see another degrossing stage that could derail the broader markets? >> that's absolutely the big question we have not necessarily seen that yet but also that went on for a

couple of weeks, i think, last time before you really saw people feeling like across the board they had to take risk out of their portfolios because they were taking on big losses on the short side and had to sell some of their favorite stocks it doesn't seem like it's happening but i don't think it's an accident the overall market was hesitating today and peaked early in the morning as everybody gave to what was going on with amc and those related stocks. >> mike, thank you. up next, summer unmasked the ceo of cedar fair on how demand is shaping up for this summer as the economy reopens and whether he's having trouble finding enough workers. plus, much more on salesforce's big earnings beat as we count down ttho e dow components conferencecall. much more to come on "closing bell."

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welcome back dell numbers just crossing kristina has the numbers. >> for the past two years dell has been beating estimates and has done it again. the street was expecting$1.61. revenue a double beat. coming in at $24.5 billion

a little higher than the estimates at $23.39. so stronger. the reason why we're seeing that strength in sales is because of the strong demand for remote working. as we know, many of us are still working at home. keep in mind dell too is looking to focus in and spin off a lot of its businesses, vmware or sell them as well. vmware will be spun off and michael dell will remain chairman of both companies so a double beat for the company. we're seeing, yeah, pretty much a strong beat across the board and no surprise a lot of people were expecting that. back to you. >> kristina, thank you. >> thank you as part of our summer unmasked series, we're speaking with top executives across a number of industries discussing how their businesses are expected to reopen cedar fair is among the names that could see a boost higher by 16% this year. the company expects to have all of its u.s. properties reopened by this weekend.

joining us now is richard zimmerman, president and ceo of cedar fair, which owns a lot of popular brands like king's dominion, king's island of course in my own point, cedar point. richard, do you presell tickets for the opening? do you have any sense of what demand is going to be like when you reopen >> we do, sara it's great to be with you. thanks forring of me on. we expected to see strong pent-up demand we're seeing that in spades. we're going to open all of our u.s. parks during the month of may. as we've opened up we've seen strong sales of what we call our leading indicators, season passes, one-day tickets and we've got over 2,300 hotel rooms, reservations as well. >> with this really fast opening and this surge of demand, we've been talking to a number of ceos across different industries, restaurants yesterday, cruises, about getting the staff they need to get employees up and running. have you had any trouble doing that are you seeing any shortages there? >> you know, sara, this is

probably the most challenging labor market i've seen in almost 20 years so certainly we've had a challenge on the availability front. we've quickly ramped up our recruiting efforts theme parks are different from restaurants, need a large amount of employees we hire 45,000 employees a year. we've raised rates, we've looked in other areas we're doing everything we can to have the labor so we can provide the high quality guest experience customers have come to expect. one of the good things we've seen as we raised rates, we've seen some pockets of strength in terms of applications. so we have made some adjustments. our operating calendar, make sure that when you come to a cedar fair park you're getting the experience that you expect but it's a challenge >> will you be requiring masks, vaccinations what's your policy on those areas? >> it's a great question, wilfred. when you go back to last year,

we entertained 3 million people last year with safety protocols and in those 3,000 we really didn't have anything contact traced back to us. having proven we can create safe and affordable fun in a safe environment, this year what we've gone back to, markets vary and the conditions on the ground in each of our regions are very different. we'll work with our state and local regulators in making sure that we comply with those state and local guidelines we're seeing an easing of all the protocols and restrictions from masks to other capacity limitations in terms of people you have in the park what we're seeing is an easing of those restrictions in most locations. we're following cdc guidelines if you've been vaccinated, you don't need to wear a mask but we work closely with state and local and follow them. >> what about ticket prices, are you raising them you said you had to pay workers more to get them in. do you have to pass that on? >> you know, one of the things

we've always seen any time that wage rates have gone up and there's been more money in the pockets of our employees and our customers, that's always been good for our business. we typically pass along inflationary price increases we think there's a lot of pent-up demand that we can price into we dynamically price our tickets so if you come on a tuesday when a lot of our value customers come, that will cost you less than if you come on a saturday so we'll lean into those dynamic pricing mechanisms and make sure we're matching up demand with supply. >> one of my favorite parts of amusement parks and i told wilfred i did love them as a kid, the beast, the vortex, i did all the upside downs and the crazy ones when i was a lot more food, is the food. the funnel cakes and everything else do you have to do any safety measures there are water parks, lots of food stands, just around covid issues and people's general awareness now of high touch riskier behaviors like that?

>> you know, i think -- number one i would compliment both our team in terms of what we've been able to do when i look at our customers, they have been very well behaved. when you come to food and beverage for one of our theme parks, it used to be when you went to some of the parks that you were referencing, sara, it was more typical food, french fries, cotton candy, get your funnel cakes those were the indulgences everybody loves. starting several years ago we put culinary talent into our parks. that's what we've been doing to improve the quality of the food. what we founding is much like with millenials and gen z, that's really an expectation that will improve the quality of our food experience and the quality of our offerings so the food that we're serving now and the menus we have have some elements that don't look like what we used to serve 20, 30 years ago. >> so you don't sell fries and cotton candy anymore

>> we sell lots of fries and cotton candies we just came out of a successful run with our boysenberry festival some of the things our chefs do strike a chord with our customers. season by season we change the menu so we have more unique and creative offerings to our guests. >> the what berry? >> boysenberry. >> it's a wonderful treat out in southern california. >> have you ever had a funnel cake, wilfred? you need to. >> no, i've not had a funnel cake maybe it's just something with a different name because candy floss is what i would call cotton candy. >> richard, we've got to get the guy a funnel cake. >> i quite want to go to this park it looks very friendly and welcoming. i'm not sure i want to go to the aggressive rides anymore the videos we've been watching, it takes me back to my days at

polton's park. we are digressing. richard, thanks for your time today. thanks for joining us. >> great to be with you. tomorrow we'll be talking about airlines and travel in our summer unmasked series hawaiian holding shares up 50% and we'll talk with the ceo peter ingram. still ahead, social media may be a huge factor in the meme stocks but coming up you may be surprised by the other sources younger investors are turning to for investment advice. here's a check on the after hours move su under pressure after strong relts. gap higher after reporting an unexpected profit. we're back in a couple minutes like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative,

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you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo time now for a cnbc news update with rahel solomon. the employee who killed nine of his co-workers at a san jose light rail facility appeared to have intentionally spared some people from the shooting rampage. police say he told one person i'm not going to shoot you a moment of silence as the transit agency remembered those who died and talked about the tremendous toll on their families. >> some of us get training on what to do when there's an active shooter event, but not about the aftermath. and yesterday i was at the family assistance center and i saw that aftermath and i saw the

immense pain in the faces of the families and i heard their cries when they got the news and it was utterly heart wrenching. and i felt immensely helpless. >> president biden has called for urgent action to reduce gun violence today he was in ohio to promote his american rescue plan complaining that republicans who voted against it are now taking credit for some of what it does when they visit their home districts. and tonight on the news an update on the president and what he's doing on selling his infrastructure plan. that's tonight at 7:00 eastern i'll send it back to you, sara. >> rahel, thank you. up next on this show, salesforce shares are surging. up next we'll hear from an analyst who thinks this stock has room to rally another 25%. plus cathie wood is headlining the coin desk consensus event tonight. we'll have a preview of her

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welcome back salesforce 5.5% higher after beating earnings

let's bring in john freeman, analyst from cfra research john, you like these numbers why is it jumping? >> certainly you know what, i think it's kind of interesting because workday also beat yesterday, but did not -- but the stock did not go. salesforce i think is different just because the expectations were more muted. you know, it's a large company, and for them to beat to this degree, you know, at least on the top line they beat by 70 million, which is a pretty significant beat but the beat on the bottom line was even more impressive and then the raised guidance from 341 to 381, which was, you know, i just thought that was above our estimates, and so it's pretty -- i thought that, the bottom line beat in particular

was impressive given all of the things that are going on, right? >> yeah, going on, which is some of the concerns around the slack deal i guess the price they paid, the timing of the deal, which seems like peak work from home what do the executives, what does marc benioff have to answer on the call to investors that continue to question this? >> i think the key question will be what are the integration costs? slack is a good-sized company as well as the technology integration costs as well as the people that's always where the bugaboo is with any acquisition, but tech in particular but salesforce has built a core competency around m & a and done bigger and bigger deals. tableau, mulesoft that have been very successful and much faster than people expected, a beat on the top and bottom line. so what you want to hear with marc benioff, his attitude and

the language that he uses around how the integration is going and all of that stuff, right >> what's your key questions for the call >> my key question actually would be so as he talks about the customer -- their new customer 360 platform, i want to know what large enterprise customers are adopting that wholesale. and all of the things that go with it. because that gives you an indication on down the line for subsequent customers what kind of upsell they get with slack what kind of upsell they get to mulesoft all of the companies that they have -- products and offerings that they have purchased, the whole idea is that they have a large customer base. the idea is to sell the existing customers additional offerings, and that has -- that's just tremendously important when you have the size and fortune 500

kind of customers, right so i think that's kind of my -- that's one the other is i want to know what their progress is in asia. i've always sort of thought that asia has lagged in crm adoption so that's one of the long-term questions but salesforce is getting some traction and i'd like to understand that a little bit more i think those are the two that are top of mind at the moment. >> john freeman -- >> marc benioff always talks you let him talk and he'll talk -- he'll give you a clue if you listen hard. >> yes he's almost as enthusiastic as you are. john freeman, thank you very much on salesforce, which is up 5.5% after hours. still ahead, the so-called reddit stocks are rallying big time this year amc and gamestop are seeing massive gains. it turns out they are seeking

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gamestop seeing big gains while young investors are seeking advice from reddit and other platforms some are seeking traditional advice >> nearly three-quarter of gen z

adults and millenials ages 18 to late 30's say friends and family influence their decision, according to a new poll, more than half are scrolling through apps for advice and 40% consult with a financial planner, turning to other sources instead. >> it could be social media and non-traditional sources start to really compete with traditional financial institutions in terms of where folks are getting advice. >> about a third use facebook and instagram and more than a quarter from tiktok, reddit and twitter. financial planner, lauren williams says she meets clients where they are. >> instagram and facebook where you can share information and people can pop in and out of the room and find something interesting to them is the new way. >> williams warns investors not to be lured in by personalities claiming to wipe out significant debt or

huge windfall on little-known stock. verify the information the number of followers doesn't mean they have credibility, education or experience in the field. >> great stuff anyou very much. salesforce surging and hp falling during another busy afternoon session. 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. ♪ ♪

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welcome back let's get a check on today's after-hours earnings movers, salesforce moving after strong revenue guidance and hp posting better than expect the results hiking the full-year outlook ulta beauty. profit compared to 66% store sales and shares of gap very volatile despite unexpected profit the best performer, salesforce up 5%. don't miss jim cramer's interview with ceo of salesforce, hp and gap, outstanding lineup, once again this week for jim, "mad money" 6:00 p.m. eastern >> kathy woods ark slips in the last month but up over 65% last

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accenture. coindesk consensus 2021 virtual event airing tonight,

and investors will be closely watching ark invest ceo cathie wood. >> she's closely followed on social media for calls on bitcoin, tesla, square, and some stay at home tech trades also a big investor in coinbase ark, innovation etf has bought recently, now among top ten holding, coinbase, up today 2% for the month down 18% also down about 30% from that high on its listing day. another special guest tonight, coindesk consensus, tom brady, tb12 may have a thing or two to say about nft's. >> both will be top-notch viewing. thank you for that quick thoughts, mike, as for the

market action today ending a little bit flat and lackluster but high for the week. >> yeah and kind of a push for the month and also it's a friday before a long holiday weekend. wouldn't surprise me if the meme stocks calm down, seems it's started up again, guys. >> and not going to listen to you once again it seems. >> it's sort of my life yeah. >> that does it for us on "closing bell. "fast money" begins right now. i'm melissa lee and this is "fast money", tonight's trader lineup, guy adami, tim seymour, steve grasso and pete najarian tonight on fast, the rally that's built ford tough, shares of ford seemingly unstoppable, gaining another 7% today, the stock up 19% in just the past week, at what point do the wheels start to come off this epic run we'll take you inside the trade. we'll all over shares of salesforce, the stock popping as the call is under way, we bring the headlines for the quarter. and later,