millions of new shoppers in the pandemic, many of which have gone on to buy it again. >> yes, i'm sure that's true i became much more of a home coffee person over the last year. >> are you going to stay that way? >> yes, i am >> are you sure? >> we redid our kitchen and got one of these fancy things. it's very good. >> i want you to bring me in a cup. >> will do. >> thanks for watching "power lunch. "closing bell" starts right now. >> it certainly does welcome, everyone, to "closing bell." i'm sara eisen at the new york stock exchange it's an up and down session on wall street. the dow clawing back from a 265-point drop but the nasdaq is firmly in the red as we head into the final hour of trade amc recovering most of its 40% loss. >> in the green and then back into the red again i'm wilfred frost. let's have a look at what's driving the action another wild day for amc, the meme stock which doubled in yesterday's session. it's trading all over the map after the company announced a new share offering there's positive news on the data front as we await tomorrow's may employment report weekly jobless claims coming in

below 400,000 for the first time since march the 2020 adp job growth topped estimates. and tech and communication services are among the weaker sectors today. mega caps like apple, amazon and facebook are all in the red and tesla is down 4% 59 minutes left in this thursday session. coming up on today's show, tony dwyer tells us what he makes of the meme stock mayhem and what it means for the broader market and your money. plus the billionaire heading the space race rings the closing bell jared isaacman about his mission to lead a spacex crew into orbit. amc today proving once again that it takes an iron stomach to trade the meme stocks. amc shares having a roller coaster session following their blister run higher after they filed to sell 11.55 million new shares they told investors to take caution against buying the stock

unless you're prepared to incur the risk of losing all or substantial portion of your investment despite that warning, amc said it had already completed the offering, raising $587 million dollars. he was asked about the wild move. >> right now we have an offering that's in the market, so i think that all i can do is read a telephone book or recite the gettysburg address today. >> you can also tell us your stock has gone up 4,000%, right? >> i think i'm going to stay away from share price. as i said in that cnbc interview, my focus is bringing the company back from the pandemic >> he was referring of course to an interview, a clip that was played from an interview with us a few months ago where he asked if he embraced the meme stock

traders and he said he's just focused on running the company sonnenfeld polled his audience asking was adam aron right 54% called it a brilliant move and just 3% of his fellow ceos said it was not smart but 92% of attendiees said the stock value was not an accurate representation of the value. stocks like gamestop, blackberry, bed bath and beyond, work horse have all had big swings in recent weeks retailer express which climbed 500% this year also announced a share offering sending its stock lower. >> let's talk about the retail move and mike santoli has a look and kristina is covering how short sellers have been impacted so far mike, start us off. >> if you looked at the market broadly speaking, you look at

the s&p 500 the main benchmark it doesn't necessarily appear there's been much direct impact. why? we've been in this very, very unusually steady trend of flatlining since about mid-april. we did have a little bout of volatility it felt like more than it really was, down less than 1% of the s&p this morning i think the question now is are we churning and using up energy just treading water or is this calm before a break higher we really don't know both stock and bond markets are pretty coiled. but look at some of the options activity in terms of the ratio of put to call options options is the main way people are engaging with amc and other similar stocks amc 3.5 million options contracts. what we've seen recently is the ratio of puts to calls just hit another multi-year low this is much lower than the range that even preceded it. basically lots of call buying, lots of upside speculation usually it's a contrarian short-term indicator that people

are getting a little yo overexcited. one other element is that it's a crowded short, that people are trying to put it to the shorts that are betting against this company. about 20% of the shares are short. so many shares have traded that it should not matter on the squeeze. but this index of highly shorted stocks and you see it has certainly rallied into today you see on the far side. but nothing like yet what we saw in january when there really was a lot more concentrated short interest and a lot of these speculative names and the shorts were much more of a vulnerable potential victim for some of these upside stampedes so it's a faint echo of what happened in january, but very similar kind of dynamics are driving this whole thing, guys. >> mike, stay with us. let's bring in kristina now who has more on the short seller impact of the story. >> just a question of how much pain can one person take clearly a lot if you're a short seller of the meme stocks because ten of the most shorted stocks brought losses to the

tune of almost $5 billion in one day. these are like retail traders coordinating the purchases online, hoping to fuel a steep rally in amc stock price and ignite a massive short squeeze that mike just showed us for example, those who bet amc stock price would fall lost actually $2.75 billion and that was just yesterday millions also lost on blackberry and bed, bath and beyond the volume also has been absolutely incredible. yesterday more than 346 million shares changed hands versus a week and a half ago, that would be may 24th when it was less than 5 million, so clearly a lot of movement. despite the rally in these meme companies, the short sellers continue to hang on by boosting their bearish positions. short selling positions continue to climb for nine straight weeks. short interest in amc hovered around 20% on tuesday and fell roughly to about 19% by wednesday. so retail investors are cheering the gains with hash tags like

amc strong, occupy wall street amc, as the relentless winning streak in these meme stocks continue to draw blood for short sellers. back to you guys. >> kristina, thanks so much for that mike, when we snapshot back to earlier in the year in january and we did see a market pullback, only one of the 5% to 6% pullbacks that has become the maximum drawdown size of 2021, what was that triggered by was it the argument that certain big hedge funds were having to degross because they were being hurt so much if we don't have that concentration and scale of short seller interest, does that mean it's irrelevant for the broader markets? >> i wouldn't say that it's irrelevant i'd say we're offering a little bit of a different scale into late january we were on a three-month huge upside sprint in the overall market, really personified by a lot of some of the more fast-moving growth stocks so i think there was a lot of very fast money built up, piled high, ready to be taken down in

a lot of different respects. yes, if you saw the outright losses of people betting against gamestop, hedge funds that needed a backstop from citadel and stevecohen, that was different than what we're seeing now which is, yeah, you're taking paper losses or actually having to surrender and cover your short at a loss but so far it has not created that ripple effect of other portfolios having to sell their favorite longs just because they're worried about the risk levels on the short side or just because they're worried about overall bad vibrations in the market it can happen quickly. i'm not going to say it's not going to happen this time around because it is very unstable when you see the angle of ascent of these stocks and the amount of kind of hot money piling up on ever higher options. this morning there were options struck for amc at prices up to $145 and there's a lot of trading in those options that's betting on more than a double in the stock in a day or couple of weeks' time. so that obviously means that

things can unwind in a hurry, but right now we're not really seeing that impact. >> mike, thanks so much. good to have you back. >> great i can see you right here through post 6. >> and we'll have you on the set a little later for market zone after the break, supersonic jets and billionaires in space futuristic transportation is coming up after this short break. speaking of transportation, shares of tesla sinking on a report about sales in china, down now 4% or o, below $600, 580 per share. you're watching "closing bell" on cnbc.

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welcome back it's been nearly two decades since the concord jet's final flight wilfred misses it every day. united ushering a new era of supersonic travel. phil lebeau with the story how will it work, phil >> hey, you know, sara, if this

plane is flying by the end of the decade, which is the idea at this point, wilf will probably buy himself a ticket this is what united is hoping it will see in its fleet by 2029. this is the boom supersonic jet. the one that they plan to build called the overture in a united livery, they have bought 15 of them they have an option to buy 35 more but there are a lot of hurdles that the overture needs to overcome for boom supersonic as they're developing this manufacturing of the supersonic jet will start in 2023 they plan to start rolling it out with the first flight in '26. if approved by lregulators, including the faa, it would start commercial service in 2029 you might be saying who is boom supersonic fou founded in 2014, we've talked to the ceo a number of times, it's based in denver. up to 150 employees and they

have raised $270 million united, by the way, is assisting boom as they are working on developing the overture aircraft one of the big selling points for united is the fact that this will be powered, right now the plan is for it to be powered with rolls royce engines that are running on sustainable aviation fuel. and that's key because especially on international routes, guys, it's all about bringing down your emissions as much as possible we'll see if this can go through all of the steps that it needs to go through in order to be flying by the end of the decade. >> fingers crossed, phil i was fortunate enough to travel on concord on one occasion it actually looks remarkably like concord all of this does remind us of what an extraordinary innovation concord was back in the 1970s and we haven't got another alternative still all those years later. my other question, phil, one of the reasons concord didn't go further or didn't have more roots and always struggled to be profitable was that it only really was a transatlantic route, couple of routes, but

never flying over big land masses because it required too many clearances from individual national aviation authorities. any indication of whether countries are more relaxed about that or is this just going new york to london again because it only requires clearance from two aviation authorities >> well, the real advantage are the really long routes and there you're talking about transpacific or transatlantic. for its part united is saying, look, we really only see this working in certain large mega city coastal cities. a new york to london, los angeles to tokyo or san francisco to sydney, that kind of a route is where they see it being advantageous will you ever see them flying this between cincinnati and salt lake city? no, it's not going to happen there's going to be a limited number of them again, the key here is not only does it get developed, wilf, but will the cost make it cost effective for both united to operate or any airline to operate and for them to sell tickets at a low price in the history of aviation,

remember, the battle between speed and price, price always wins out people want a cheap ticket before they want to get somewhere super fast. >> well, not quite always but, phil, it would be great. you take off at 9:00 a.m. and you land before you took off at 8:00 a.m people did it in the past, my father was one of them >> if the price is right. >> phil lebeau, thank you so much. >> expensive. >> expensive indeed. you want someone else to be paying i'm not sure mark hoffman would stretch to that as part of the contract phil, speaking of flying through the air at incredible speed, this video of the rocket launched earlier day spacex will launch its all civilian space flight. let's bring in jared isaacman who will be commanding that

flight he was also ceo of shift4payments we'll get to that one-year anniversary for the company in a moment but tell us about how excited or nervous you are drawing closer to that first civilian flight. >> i'm not nervous as all but incredibly excited we're about three and a half months out from the launch in fact the first stage booster that you were referencing earlier that took off today and landed back on a drone ship in the middle of the ocean, that's going to be the same booster that's going to take me and my crew to space in just about three that if months from now. so i was very interested in making sure it nailed its landing and it did it perfectly. >> quite extra reason for you, but good for everyone involved. i want to pivot to the company, jared, to shift4payments it's such a disruptive company, but at the same time very tied to the economy tell us your outlook for the economy and whether you feel you can kind of disconnect from whatever the economy does, or whether you're very much tied to

it long term >> well, for sure. first it's great to be back here at the new york stock exchange we rang the bell here june 5th of 2020 in the middle of the pandemic at shift4, we power commerce for some of the most complex ends of the commerce spectrum. so about one in three hotels, restaurants and resorts in this country rely on some form of shift4payment technology you can imagine going public in the middle of a pandemic with customers that were so heavily impacted by the pandemic but in 2020 we grew our payment volume double digits if we fast forward to 2021 now, we've been seeing record payment volume every weekend since valentine's day weekend. consumers have confidence through vaccines to go out and re-engage in commerce and we're continuing to see record volume accelerate shift4 is a little disconnected from general economic trends because we've been a share taker for some time now.

that's how we grew during the pandemic is our value proposition resonates really well in the best and worst of economic times and we've been seeing outsized growth from that during the pandemic we're continuing to expect that as we progress in 2021 and beyond >> so, jared, as the ceo of a public company here at the new york stock exchange, there's a lot of enthusiasm from investors around space and this idea of space tourism, even though it's years away from actually becoming something more mainstream would you invest in any of these stocks, a virgin galactic or any of the other technology stocks tied to space flight or is it too speculative at this point? >> well, there's only one company that i'm willing to invest my money in and also risk my life for, and that's spacex there is no question category leader this is a company that's reinvigorated the world's interest in space exploration. they're landing rockets on ships in the middle of the ocean that's aside from the cool factor, that reusable space technology they pioneered is

what's going to make space more affordable and, therefore, accessible to everyone since we're talking about business and total addressable markets, when you're able to put something up into orbital space flight, cargo, a resupply mission to the space station or human beings going off and exploring the world beyond ours. but when you come to suborbital space flight, which is what some of the other stocks are that you referenced, it's kinds of a one-time experience. you're not putting payload up into space the commercial opportunity is questionable at that point if you ask me who i'm betting on and i'm already doing it, it's going to be spacex. >> yes, you are doing it jared, good luck with the training keep us posted as you get ready for that flight. >> thank you so much >> jared isaacman. after the break we'll get an inside look at everything from pet food to coffee as we hear from the ceo of smuckers. check out some of the top search tickers on cnbc.com

the meme stocks growing the most interest amc at the top of the list, down 14%, which is a recovery from earlier levels blackberry is hanging in there up 2%. the ten-year yield going strong in the top five the last few months 1.62, a little higher yields today. we'll be right back. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee...

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shares of jm smucker are higher on the back of an earnings beat this morning the company behind folgers coffee, jif peanut butter also giving up guidance coffee saw double-digit growth i sat down with ceo mark smucker earlier and asked him how the company plans to keep these gains going, especially in coffee as people start going back to work >> our strategy is working in coffee in that we have worked very hard to continue to shift our portfolio to our more premium brands in dunkin and bu bustelo. our folgers brand over the past year has also fared very well. just the fact that we have gained new households with our coffee brands and many consumers have bought new brewing equipment so this trend of at-home brewing we view is going to continue, particularly as

folks continue to work from home a bit more and obviously that is going to impact and help us in the breakfast occasion >> pet was a bit of a weak spot in the report, and that could be somewhat surprising given we've seen the huge trend of pet adoption what's happening with the business there >> so our pet business actually performed exactly as we expected the prior year there was a huge stock-up at the beginning of the pandemic so we did expect our pet business to be down in the quarter. but strong trends in pet snacks, which is clearly one of our key focuses in pet, our cat business will continue to perform well, and then we continue to ensure that we stabilize our dog food business and the plans in place continue to execute and are working. >> what are you seeing right now from the grocery stores as far as how much they're buying and

how they're managing inventory relative to where they were in the middle of the pandemic >> we're still seeing strong demand, which obviously comes through our retail partners. there has been a level of focus from retailers to ensure that their shelf sets are more refined, more honed in and clearly when a company like ours with leading brands, that is going to continue to help as we will continue to win and ensure that we have the right shelf space. >> among some of their bigger brands is uncrustables which continues to do well they hope to grow to be a half a billion dollar business. the question on this stock and a lot of food stocks is can they keep the momentum going. they had such a big boost during the pandemic as people flocked to the grocery stores, stocked up on packaged food and went to the big brands smucker tells me, smucker of smucker tells me that it's still

happening, you're still seeing an elevated eat from home and they're going to keep those people they're spending more on marketing. but that's sort of why some of these stocks haven't gone up as much as you have seen previously when you're seeing such strong results. they only expect net sales to decline 2% to 3% for 2022. >> smucker of smucker is ninth generation. >> fifth. >> ninth leader, fifth generation. >> i don't know ninth. i said fifth he took over from his uncle. it is impressive they have kept it in the family still ahead, two ceo interviews you won't want to miss we'll speak with the head of c3 ai which is seeing a sizeable drop and the dow ceo will join us on why ev evolution is a tailwind for companies the 10-year is up to 1.62. the dollar is up 0.6% as well. we'll be right back.

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welcome back we've got some breaking news the justice department is elevating ransomware attacks to a similar level as terrorism following last month's colonial pipeline attack. the justice department citing the growing threat that ransomware and digital extortion cause to the nation and critical infrastructure a very interesting thick to keep an eye on. still lack of crypto regulation when it comes to this, sara. time for a cnbc news update with rahel solomon. >> here's what's happening at this hour. the justice department is investigating postmaster general louis dejoy. it's looking at his politica fund-raising activity at his previous job a spokesperson for dejoy denies any wrongdoing. a suspect has been arrested after a fatal workplace shooting in new york this morning the president of the company saying that an employee shot a co-worker in the back of the head and then ran from the scene. and that spacex launch is the company's 22nd resupply mission to the international space station.

the 7300 pounds of cargo includes new solar panels as an experiment to find toothpaste and mouthwash that works in space. and in london, princess diana's wedding dress is on exhibit for the first time in years. the iconic dress and its 25-foot-long train are part of a show about british royal fashion. the opening coming just one month before diana would have turned 60. you are now up to date guys, i'll send it back to you, sara. shares of c3 ai falling after reporting earnings we'll break down the results with ceo tom seib especially. speaking of earnings, we'll get results from lululemon, crowdstrike, docusign and slack. the dow jones industrial average unchanged. amc down 9%, koss down 21. workhorse having a nice day. ev truck maker up 28%.

we'll be right back. first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance. (vo) this is more than just a building. get e*trade and get more than just trading it's an ai-powered investment firm with billion-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.

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also gave better than expected full-year guidance despite today's move lower it's had a nice run-up over the last three weeks with shares higher by 28% joining us is the ceo, tom seibel tom, welcome to the show good to have you. >> good morning -- or good afternoon, sara. >> the numbers, the bookings were certainly impressive, up 500% from this quarter last year, more than 100% growth from the previous quarter talk about what is driving demand for ai software services. what exactly are you providing in these orders to your big corporate customers? >> it was a great quarter, it was a great year we exceeded expectations we are in the enterprise ai application software business. so our customers would be some of the largest companies in the world like shell, like the united states air force, like 3m, bank of america and others who are using ai to change everything about the way they

design products, the way they deliver services, the way they serve customers to provide lower cost products into the hands of more satisfied customers this is a very, very large and very rapidly growing market. in that space of enterprise ai, i believe we are the largest player in the world. >> if you look at the industry breakdown and name some of your big customers there, i know financial services is a growth area, but i think oil and gas is one of your biggest industry groups as far as your customers. you don't necessarily think of those companies as on the cutting edge of ai technology. why do you think that is that they have been such a big area for you? >> well, i think that it's just not making the news. if you look at world leading companies like world dutch shell, shell i believe is the fifth largest company in the world and might be the second largest oil company in the world and they are reinventing themselves as a zero carbon footprint company by 2050.

they are changing everything about the way they operate, upstream, downstream, midstream, integration of renewables and c 3 ai is very much at the heart of the basically digital transformation of shell. again, the fifth largest company in the world so other companies like aramco are equally advanced if we take a hard look at what the oil companies are doing, they are reinventing themselves and it's quite exciting. >> shell's mark kapp is $150 billion. it's definitely a big company. what about the transition, thomas, from energy and industrial focus into some of the other areas. you mentioned some banks there some people suggest you are too focused on energy and industrials and need to broaden that suite of clients. how is that going? >> we're highly diversified.

i think shemll is about a $300 billion business today we're in banking, manufacturing, aerospace, defense, intelligence, telecommunications, so we're highly diversified across a wide range of industries. the business is very rapidly growing. it's growing in asia, it's growing in europe, it's growing in north america, and we significantly raised our growth expectations for next year i believe that next year we'll be growing north of 30% to 33% top line to put us in the top deck aisle of rapidly growing software companies so business is good. the market is growing and we had a great quarter and a great year >> and in terms of reaching a sort of $1 billion top line birx is that something you envision doing organically or would that be a few small acquisitions that you'd consider >> that's a great question,

wilfred. we are focused on organic growth we have a huge addressable market opportunity perhaps a third of a trillion dollar addressable market, enterprise ai software our objective there is to establish and maintain a market leadership position globally, like we did previously at siebel systems and previously when i was an executive i'm not saying there might not be some acquisitions in the course of that to fill out or add certain capabilities to the product, but in general we are focused on organic growth. i think that is the key to success for us. >> my question, tom, is on the stock price. so you go public in december at $42. the stock shoots up to $100, gets as high as in the 180s and then comes back down to near the ipo price. it's down 12% on this stellar earnings do you think that there's a disconnect between the market

and understanding your story and what's this ride been like for you? >> well, the stock price, i think, has been -- you know, today equity prices are highly volatile you're talking about companies that are moving 20% and 29% today. it's highly volatile a lot of this has to do with the retail trade the bottom line, we took the company public six months ago and priced the stock at $42. i think it's trading at $68 today so that's about a 50% return in six months for the investors. pretty good return i think we'll continue to see volatility in equity markets, but we're just -- the market can do what it does on a day-to-day basis. as far as we're concerned, the market can close for the next five years, we're going to go about building our business and i think we'll build one of the world's leading enterprise application software companies. >> tom, thanks so much for joining us today much appreciate it. >> thank you straight ahead, twitter

unveils a new subscription service and we'll get a final check on shares of amc ahead of the close. that's the market zone next. you can watch or listen to us live on the go on the cnbc app we will be right back. amc is at 56, down 10% s&p is down 0.3% we're back in a couple male] band ben and i opened ben's chili bowl the very same year that we were married. that's 1958. [voice of male] the chili bowl really has never closed in our history. when the pandemic hit, we had to pivot. and it's been really helpful to keep people updated on google. we wouldn't be here without our wonderful customers. we're really thankful for all of them. [female voices soulfully singing “come on in”]

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crucial moments of the trading day. today we've got hightower chief investment strategist and portfolio manager stephanie link with us as well. stephanie, next time perhaps you'll be able to join us as well let's kick things off with the broader market the dow well off the lows of the session when it was down 265 points but it is still in the red, down 8 points all of the major averages in the red. nasdaq down 1% mike, it's kind of been an up-and-down session, well off the lows, but showing that the amc volatility or perhaps other factors can cause a bit of stock selling. >> it was a little bit of a flinch in the morning as that game kind of restarted also you had some headlines right before the close oh, russia going to sell some dollar-based assets and things like that. it was just a really quick stab lower, though. we popped right back up in the same way we have for seven weeks right now. 4185 i keep saying that was where we closed april 16th. here we are 4190 really the story of very large

growth stocks trading pretty badly again. they had their bear market bounce and now they're backing off again. the overall market manages to hold this level as we go into a jobs day where the market sometimes wants to pull itself into a neutral state. >> are you encouraged, steph, despite the sort of sluggish action that stocks for the most part have managed to hold the highs? >> yeah, it is encouraging you know i'm more value tilted versus growth tilted why is it working? because the economy continues to heal i know you're getting sick and tired of me talking about the isms and pmis and manufacturing part of the economy, but that really continues to be on fire ism services is now starting to improve. services in general is starting to improve why services is important relative to manufacturing is because it's such a bigger piece of the economy we want services to recover and that's why i like the reopen names as well. then when you listen to companies on top of the good

economic data, you listen to companies like gm increasing production and deliveries and what that will do to the entire supply chain in a positive way, airbus doing the same thing and that's positive for the supply chain but also even positive for boeing because it's a duopoly. i think that the combination between the better data on manufacturing, the better data on services and the company data is really encouraging and that's why you see the rotation of value versus growth. i'm not always all positive. i am watching the unit labor cost at 1.7% so watching the inflation stories as a tell because that's what the fed is looking at and we know they're going taper, it's just a matter of timing. >> we've also been watching amc. shares are all over the place after completing its new stock offering this afternoon, the company raising $587 million in capital just hours after announcing plans to sell up to

11.5 million shares. the imax ceo was on earlier weighing in on the recent surge. here's what he said. >> there's no question this does not fit into the traditional valuation box. i give adam credit this morning he even said that in his own statement however, it's a new world, which i don't pretend to understand and there are different factors. myself on my own investment side i've missed a lot of the trends because of my older ways of thinking about these things. >> the valuation question is one that you have pointed out for sure, mike what do you think about this deal today going to the market and another secondary. was it savvy, opportunistic, desperate? how do you characterize it >> i think it's much more opportunistic and just accepting everything the market is going to give this company virtually maxing out we talk about how they're virtually maxed out. they have been bumping up

against this authorization limit they have had. they're pretty much there. why not. if the market is going to trade a billion and a half shares of your stock over two days when nothing actually is changing in the business, then why not harvest it in that way the question is can it he put to any profitable use not clear. >> they can pay down debt. >> they can roll up this industry, but it doesn't make the movie exhibition business much more of a high return business. >> steph, a lot of people all through the day saying it doesn't change the fundamentals. your first answer echoed that. the data is great and you can buy stocks that benefit from that but is this also a little bit indicative of a market that contains a lot of disjointed assets that are not trading relative to their price, and maybe just if amc falls back to earth that doesn't derail the rest of the market but could it trigger a bigger rethink of a lot of assets that are overvalued >> i don't -- i don't necessarily think so it's a small group right now,

seems very contained there's not any contagion. but if you just go back to the absurdity of this situation, amc is issuing stock, right? okay, great. that's awesome they still have $5 billion in debt they have $5.7 billion in lease obligations due. so that's a big problem, right and as mike said, the movie exhibition business, it's not clear if this is going to change anything, right? and this stock trades at 66 times ev to ebitda disney trades at 22 times, right? that's a real business, that's a diversified business, the liquidity is great, the balance sheet is awesome that's why this is so silly. for the time being this group of stocks, it's small and you're not seeing a contagion at this point which is a good thing. twitter announcing its first subscription service julia boorstin has the details for us. >> twitter has a subscription service for those who use the platform most.

features include the ability to undo or fix a tweet up to 30 seconds after you've send it, a reader mode folders, plus color themes and more features are in the works. twitter blue will start rolling out today in australia and canada and cost roughly $3 u.s. dollars a month. there's no word exactly how much it will cost when it does launch here in the u.s. or when it will launch here in the u.s. and when it will become available, but this launch does speak to ceo jack dorsey's commit meant to diversify twitter's revenue stream. >> there's no talk of paying a subscription fee to avoid advertising? >> not yet, wilf right now advertising is the vast majority of twitter's revenue. they have introduced other ways to transact on the platform. you can leave tips or pay someone if you like their content, but they are not introducing an ad-free version

it sounds like you want one, wilf. >> i'm not sure i'd pay for this for $3 because i don't know the services you get for it but i am amazed it's taken too long for twitter to offer something with some level of payment rather than thinking we can't charge or else the business will go -- i'm thinking of bad words there, will fall significantly. >> well, look, i think there will be other options here and dorsey has made it very clear that this is not going to be the only model in which you can transact he's talked about commerce you have an idea to follow people who have premium content. maybe paying to be a super follower of a super tweeter so i think there will be multiple things going forward we'll see if your desire for an ad-free version of twitter is among them. >> i don't know, i don't mind the ads on twitter i use twitter. don't care about the ads mike, why doesn't a move like this move the needle on the stock? is the market still in the show-me mode on user growth?

>> i think user growth it's satisfied roughly with, even though it had a bit of a stumble. yeah, the revenue for user has lagged to some degree versus other options, obviously versus facebook and i think also the general sense of -- we're talking about this thing and it seems very intuitive that could have been done any time in the last several years and it's being done now i don't think it's a bad thing but there's a sense it's mostly an asset play. it's got this pool of dedicated eyeballs it's the clearing house for information in the world okay, fine, if they own a decent return that's good too but longer term it's much more about i need to have participation in the whole phenomenon. >> tesla shares falling on a report of a big decline of vehicle orders in china. phil lebeau with the details phil. >> sara, you're looking at tesla shares trading at levels we last saw in november. the information out earlier today citing a source, this is information by the way the story

itself we have not corroborated at cnbc. essentially it's weak china sales. according to the information, may china sales or sales for tesla in china cut in half, essentially going from 18,000 down to 9,800. one possibility, customer complaints and we've seen a number of stories in the month of april and may those two months we saw a number of stories about customers and complaints there's a bit of a public backlash all of that together may explain why you see tesla sales coming in weaker than expected in china. again, we have not confirmed this report. take a look at tesla versus nio and xpeng. keep in mind, this is only this year if you went back further, obviously tesla's returns are far greater. remember, guys, china is 40% of the global ev market you do not want to have a prolonged stretch of weak sales, if in fact that's the case for tesla. guys, back to you. >> phil, thank you very much

this just adds to mounting concerns already around china for tesla. i remember asking cathie wood about this and she said ultimately china can be an export manufacturing facility to the rest of the world for tesla. but clearly it's having an impact. >> without a doubt tesla continues to surrender a lot of the premium it built up last year. it's more than tripled on a one-year basis, even as badly as the stock has down, down more than $300 since january. it really is paying the price for the overshoot after it was added to the s&p 500 when that announcement happened, it was up $400 a share you're still way up over that moment when you levitated late last year. >> ford up 7% today. steph, on the order front, are there any names that you'd be attracted to, whether it's to get exposure to the ev theme or more broadly traditional autos >> i have owned aptive in the past and made 67% on it in a

couple of months time so i took my profits but that is one that's very interesting. it's an auto parts company it's an auto technology company, connectivity and that kind of thing. it's green it got ev exposure, they have got a joint venture and they're gaining market share, great management team and all that so that's the one i like look, i think tesla is in a world of hurt because china is 30% of their total revenues. if you look at some of the net new order trends since march, they have seen massive declines, right? 35,000 net new orders in march 11,000 in april and now 9,800 in may. so they're clearly getting the brunt of the confusion from the chinese customer and the complaints from the chinese customer and also safety so, you know, look, even though it's down a lot, it still trades at 15 times price to sales as mike mentioned, it's still up 226% so i like companies that have a great market share growth. they're number one or number two

in their business and profitable and the parts companies i think have more ways to win versus just kind of an oe. >> we have what, just over two minutes left of the session. we're down about a third of a percent on the s&p, well off the lows >> certainly above where we were near the open this morning internally, it's been a little bit soft i would say just net negative to a slight degree, advancers versus decliners on the new york stock exchange you've got a modest majority to the downside although the main index is down 0.1 of 1%. i mentioned the nasdaq type names being draggy take a look at amazon and apple against the s&p 500 since september 1st of last year both apple an amazon today have actually descended below their 200-day average. it looks like the same chart, they're trading as if they have the same thing

it really has been a huge headwind for the index itself. the volatility index, that's where you would look to see if the meme stock craziness is starting to create enough friction that it's getting people nervous it's really not happening. we're holding above 18 when you have a jobs number the next day sometimes it builds in a little bit of a premium because we do have some suspense around that number if it's anywhere near expectations, it will dissipate shortly after 8:30, sara. >> as we head into the close, one minute left. it does look like we're going to break the five-day win streak on the dow and end lower. as you can see we're just hovering around the flat line down 12 points or so biggest weight on the dow right now is boeing, salesforce, home depot and apple. biggest contribution to dow gains is goldman sachs, procter & gamble looking at the s&p 500 with less than a minute left into the close, you are seeing strength in the more defensive pockets of the market, utilities, consumer staples and health care. those are the three

outperforming sectors. the worst performer is consumer discretionary and technology the nasdaq is lower by a full percentage point names like tesla, apple, amazon, microsoft all winning on the tech heavy nasdaq. the small caps down 0.8 of 1%. so it does look like a weaker close relative to where we were earlier in the day if you're keeping track, amc entertainment closing down 18%, cutting into its gains for the year now less than 3,000. >> but still up significantly this week having doubled yesterday. welcome to "the closing bell," everyone, i'm wilfred frost along with sara eisen and mike santoli, all coming to you from post 9 of the new york stock exchange let's sum up how we finished the day on wall street well off the session lows which of course happened right at the open the dow is down 266, it closed down 23 points a little bit of slippage as we approached the close

the s&p 500 down a full percent. y amc finishing down almost 20%. also worth mentioning, tesla down 5.3%, 572 at the close. investors will be turning their attention now to a slew of earnings from lululemon, broadcom, docusign and we'll have ingt analysis as soon as they are released. tony dwyer will join us to weigh in on the meme stocks. stephanie link from hightower is still with us as well. mike, i'll come to you, first of all. interesting day. i mentioned tesla there, but also some of the other big cap stocks suffering a bit i'd be interested to keep an eye if that's just a temporary blip. >> it definitely seems as if the bounce was sold. the nasdaq did have a comeback it has held above the march lows but it's just absolutely shown no signs of re-emerging as leadership you could take that as a

positive when are they going to really rally and take leadership? it's when the macro picture turns a little dimmer and think about yields being stuck they have been stuck but there was an upside buy as to treasury yields today banks did finish positive. the traditional automakers up very big so it seems as though nothing is really undermining the overall positive economic outlook. the longer the market goes sideways here, very compressed at this point. you have to wonder if it's kind of using up a lot of energy just to stay still. maybe tomorrow's jobs number ends up being a release and resolution of these trends both in stocks and bonds. >> ryan grace joins the conversation now, a market strategist and tasty trade, which is the parent company of trading platform dough, also caters to the retail investor. thanks for joining us, ryan. tell us what you're seeing and give us some color as far as the trading around the meme stocks like amc today. >> absolutely, thanks for having me it's really important to separate the narrative from the

facts. there's a lot of david versus goliath wall street bets when you look at the data, yesterday over 710 million shares traded in amc you look at the options trading in there, it was over 10% of total options volume so i think what it really reflects, it's not retail versus wall street, but more so that there is a class of investors that's out there that embraces risk, embraces this extreme amount of volatility and welcomes it within their portfolio. but i do think that the way that view is being expressed in the options market is having a little bit of an outsized impact on the stock price what i mean by that is that the signs were there when you saw amc go to 20 and you're seeing this in other meme stocks as well, you're seeing large amounts of open interest and volume start to build at strikes out of the money and very short dated options that has an impact in terms of how dealers have to hedge the overall options trading flow when you think about the stock price moving higher, you get this delta squeeze and gamma squeeze. what ebds up happening is

dealers have to buy that stock at higher and higher levels. i'll say this. i do think it can continue as long as you see open interest and call buying continue to build andhigher and higher strikes. you have very high option prices in there, but this could continue as long as traders are willing to express this bullish view by paying very expensive option prices, especially on the call side from what we're seeing. >> steph, strong dollar day put pressure on certain commodities. are commodities tempering their recent ferocious rally is that a good thing broadly speaking for equities? >> i think it's a good thing -- >> sorry, that one to steph. apologies, ryan. >> no, that's okay i think commodities coming down is actually a good thing they exploded higher across the board. we've been talking about this for the last several quarters. so that's a good thing it's a good thing for margins, right, because a lot of companies were going to get hit. many companies in the industrials, the materials, the consumer staples, all of them

are raising price as a result. then you just have to worry that as they raise price, what happens to the consumer and consumer demand. we want consumer to be strong. it's 70% of u.s. gdp so i'm okay with the fact that the commodities are coming down. they're still up quite a bit i think global demand is still on the rise. it's recovering. and that will lead to a bid in the commodities in general, but it's a good thing to come down and now we have to watch wages because wages are going up, right? as i mentioned, unit labor costs are going in the wrong direction so we have to watch these things for sure. >> mike, i just want to talk a little bit more about the selling in the nasdaq, especially into the close. some of the big names, we have tesla down 5%, apple and amazon at some critical levels. is this a higher yields move we did get a batch of really strong economic data including record services today. >> that could be part of the nudge lower without a doubt. again, you don't want to make too much of every tick in bonds

versus yields. but if the tick higher in yields is because the macro outlook is looking better, it becomes more the incremental dollar and goes to the more cyclical companies and that goes away from some of the big cap nasdaq stocks, they're no longer crowded or owned all that heavily, although facebook might be an exception to that but that doesn't matter because people are saying i'd rather buy plays on the auto cycle, industrial cycle and materials. those are still the leadership groups until further notice. >> some earnings just crossing the tape lululemon is out and looks like a very strong beat $1.16. the expectation was around 91 cents so a beat on the bottom line a spike in the stock revenues also strong, $1.23 billion. expectation was 1.13 billion stronger growth margin both on a one year and two-year basis and they are providing guidance coming in at all levels above wall street's expectations

q2 earnings coming in 1.10 to 1.15 they expect the estimate was around 1.01 for the full year they're expecting both earnings and revenues to come in ahead of expectations they saw 82% growth in north america sales. 125% in international sales. their direct-to-consumer business continues to be strong but it's less than half of revenue versus a little more than half of revenue last year at this time calvin mcdonald, the ceo in the earnings release says they are seeing a returning in the brick and mortar stores. we're going to talk to him exclusively in just a few minutes about these results. steph, what do you think about lulu it's really come off of its highs and had a sort of stumble to start the year, despite really strong results? >> it's had a stumble for sure, down 8% year to date, down 1% in the last year. so, look, i think this quarter looks good on the surface. they did have very easy comps and consumers are definitely

spending with those fiscal checks i love their digital strategy, i love their international strategy it's such a good thing that the stores are starting to open again. sara, i come back to valuation and cross all of that leisure, every one of them, every one of those companies is very expensive. the only one that is not and lagged materially which is frustrating because i own it is vf corp. but with lulu it gets washed up with the growth trade as well so, unfortunately. >> crowdstrike's earnings also crossing seema mody has those numbers for us seema. >> hey, wilfred. take a look at the stock turning positive in after hours after delivering a stronger-than-expected q1 report 10-cent profit versus the estimate of 6 cents. $303 million on sales, which is higher than what analysts were expecting. q2 guidance, f ul year guidance both well above expectations and

wall street has been warming up to the stock one calling crowdstrike its top pick citing the hybrid workplace, increasing the need to keep employees and companies safe you're seeing the stock move on this report, up nearly 3% in extended trade sara. >> another beat. thank you very much. seema moda thanks to stephanie link and ryan grace for joining us. let's talk more lulu the ceo calvin mcdonald joins us right now fresh off of those results ahead of his call. calvin, it's good to see you and good to talk to you. there was some worry that the athleisure trend would not be as strong as people were leaving the house and going back to work and getting dressed up again you just put up a really strong set of results what are you seeing from the consumer >> well, we're definitely, sara, seeing that the trends athleisure, activewear, living a healthy lifestyle is sustaining and the momentum is only

building and i think the results are an indication of a consumer that has adopted new principles around living a healthy lifestyle, wanting versatile apparel. we're well positioned in our growth to provide all those to the guests >> you were hurt in particular with the store closings. even as the stores reopened because you have a lot of smaller stores and so the capacity restraints were a problem. what have you seen in terms of traffic as you've been able to open back up again, and how is that shifting the business >> yeah, we definitely are seeing our store performance improve, which is super exciting our e-commerce was up 50% and that's on top of a 70% growth last quarter, so continued to see acceleration in that our stores performed very well and continue to gain momentum. we're at 88% of 2019 productivity numbers and continuing to improve on that number as the constraints open, traffic

is improving and the educators are all set to service the guests so we're ahead of our plan at this point and have a number of initiatives to continue to kickstart the stores but very happy with the momentum we're seeing at this stage. >> what about mirror, cal vip? where are you in the integration of that and how do you think about it at-home fitness seemed like a great idea when we were all locked down and stuck in the middle of a pandemic but as gyms have opened and people have wanted to be social again, what's your expectation for that business? >> at-home fitness was a trend before the pandemic. it obviously accelerated during the pandemic we believe it will continue to remain an important part of how our guests choose to live their life post pandemic we're investing to create a very meaningful business. we see mirror being able to have a solid stand-alone p & l. it strengthens our community,

relationships with our guests as well as how they want to sweat we know they sweat more, they buy more we see the relationships with our apparel sales. so we're excited about where we are. we've guided 250 to 275 million in revenue that's a 55% to 65% growth off of last year the business is young. we're just getting started with the synergy so we're super excited. we'll be in 90 stores at the end of this month with the plan up 200 by the end of the year so it really is early in the synergies. but we're investing to what we think will be a very important addition to the lulu family. >> have you seen a decline in engagement from existing users in the last month or so? and is that something that concerns you is there a base level of engagement you feel you need to keep seeing from subscribers to make sure they don't bother cancelling the subscription? >> you definitely in a

subscription model want to make sure that retention and churn is low and we're very happy with both those metrics you know, we see more than one user per household the number of sweats per week continues to increase. and again, one of the benefits of mirror versus some others in the category is the versatility. there are more genres of workouts, more live classes and more instructors than any other competitor or product available. so we continue to tap into, you know, more users, more users in a household and availability of product to keep them engaged, excited and motivated to keep working out. we're just seeing nothing but improvement in those metrics the opportunity continues to be it's a new brand, awareness and krr consideration is low as we unlock the synergies at lululemon, we know we can drive that forward and the indicators are very strong and we'll do that over time

>> how is your supply chain holding up, calvin in previous quarters the global freight issues were a wait what's happening as far as supply and any additional costs and what are you doing about it? >> there have definitely been challenges in the quarter with congestion in ports. the team has done an incredible job in managing that if you think of the growth. some retailers are growing over easy quarters, i heard the comment before our two-year is 25%. there's not another peer that has a 25% two-year kegger and that's an acceleration versus our 19 kegger coming into the pandemic in 2019 so we are seeing a wonderinful acceleration of our businesses over multiple quarters and multiple years the post congestion leaning in, buying the inventory, innovation of product is definitely something that we're managing and it's creating some

challenges, but the teams have been able to work through, fuel the business this quarter and leveraging air freight and other levers to ensure that we're getting product here to satisfy the demand of the guests. >> you also started a new business just very recently, the like new business where you're selling resell products. i'm wondering how that's going i get the esg case why that's a good sustainability play but wondering about the revenue opportunities there. do people really want used yoga pants? >> you just said sweats so much. >> sweaty yoga pants >> well, sweaty yoga pants clean up just like any other apparel we're really excited as you know, it's a test in california and texas we just launched the resale site last week and the first week performance far exceeded our expectations so we're learning a lot. but the fact that our existing guests can bring their product in to over 90 plus stores,

receive gift cards that allow, entice and encourage them to acquire and buy new product and that product gets to be reused by others and acquire a younger guest is part of the model it's not why we did it, it's definitely through our be planet commitments, but we're excited about the opportunity and see it as a win-win and all the profits from this proposition are going to go back into our be planet initiatives in driving those goals forward. so we're very excited. it's early, but it's off to a great start. >> mike santoli's kids like resale everything so i have a feeling they'll be your customers. calvin, it's good to see you thank you for joining us lulu's net revenue is up 88%. >> use really good detergent. >> you can watch sweaty clothes, as you know. >> of course you can but i don't want to wear somebody else's no matter how many times they have been washed anyway, great stuff. great interview with the lulu

ceo. docusign earnings are out. dee deirdre bosa has those numbers. >> everyonie earnings beat the s expectations 44 cents versus 28 expected. still unprofitable, however, on a gaap basis revenue $469 million that beats the $438 million expected strong revenue guidance both for q2 and the full year shares tripled last year but they're lower by 10% this year so like some of the other pandemic or work-from-home darlings, investors are wondering what can it do beyond that signature, that e-signature signature product. they'll be listening for that and we'll be listening on the call. >> nice pop after hours. thank you. charge points results are also out phil lebeau with those numbers. >> shares moving a little higher as chargepoint reported a gaap loss of 84 cents a share haven't found the comparable

estimate of a loss of 10 cents a share. revenue up 24% at just over $40 million. it is guiding to better-than-expected q2 revenue and reaffirming its guidance for full-year revenue between 195 and $205 million chargepoint moving just a little bit higher after reporting a loss for the first quarter guys, back to you. >> phil, thank you don't miss an exclusive interview with chargepoint's ceo here on cnbc on "the exchange. still ahead, meme stocks selling off today after a huge rally this week. up next, tony dwyer on how the trading frenzy is impacting the broader market. plus the ceo of dow on why the growth in electric vehicles is electrifying his company's bottom line. plus we'll get a big outlook on the global ony om hecomfrim we're back in just 90 seconds. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors,

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kick pain in the aspercreme broadcom numbers are out >> broadcom reporting q2 results here $6.62 versus expectations of $6.43. revenue up 15% to $6.61 billion. the street was looking for $6.51 billion. for q3 they're looking for $6.75 billion forecast from the street had been $6.6 billion. turning quickly to the segments here semiconductor solutions 4.82 billion they say in the quarter and infrastructure software at 1.79 billion this call starts at 5:00 p.m.

eastern. back to you all. >> josh, thanks so much for that. now, a wild day for amc. shares finishing lower by nearly 18% after briefly turning positive on completing its new stock offering announced just this morning we're also seeing big swings in other meme names including workhorse, gamestop and express, which had a share offering of its own today. let's bring in tony dwyer. great to see you as always, tony thanks for joining us. why don't we head off on that meme stock craze, first of all can it do damage to the broader indices? >> i don't think so. i don't think it has there's a couple of impacts here as you know i can't comment on individual stocks and certainly not qualified to comment on meme names. there's a couple of places it could affect this. the last time we had this you've got the prime brokers who give leverage to the various funds. they stopped giving extra leverage i don't think the craze -- i don't want to say craze, the

movement in the stocks is not going to make prime brokers more willing to increase the use of leverage, so i think that's one thing. the second thing that i've not heard too many people talk about, mike santoli a little earlier alluded to it. it's really wreaking havoc on some of the market indicators. so my friend who's a technician at the street.com pointed out in her email to me that yesterday 25% of the buying on the nyse was the four meme names. so your really getting a skew in things like the put/call area which mike talked about earlier. that's going to make it tough to evaluate exactly what the internals of the market look like. >> one of the other indicators you've been looking at of late, tony, is excess liquidity. what's that's telling you? >> well, real liquidity measures the growth in money supply, adds etf and mutual fund growth and then it takes away what is being

used for economic production so real liquidity is money you can take out of the bank very quickly versus what is being used in economic activity. just like in 2004 and 2010, there was a massive monetary and fiscal stimulus into the marketplace to get out of a recession. it's normal. that money gets put in work in investments until it's needed for economic activity. well, we're finally seeing that it's needed for economic activity we have not seen excess liquidity at this level in the history of post world war ii so that money is now being -- money supply is slowing a little bit. there's been a flat line since mid-april as mike said in not just the s&p but the nasdaq and the russell and industrial production is surging to meet economic demand. so that fuel for the market, that excess fuel is slowly drying up and that's creating this choppy period that we're

in. >> does that mean you should stay away from the nasdaq? another 1% down day, tony. it's only 4.2% off the all-time highs but tech stocks have certainly underperformed. >> and they have already had their -- sara, they had a near 9% hit earlier in late april to me this is an environment where i've advised our clients we don't -- it's an environment of doing no harm what that really means is we're early in an economic cycle and earnings are exploding to the upside and liquidity, even though it's slowing, is still there. i don't think you want to be excessively negative i can see the market pulling back a little bit but then moving higher into the end of the year so i don't think you want to be excessively negative or excessively positive. back in mid-april when we had lowered our tactical rating, you had excessive enthusiasm, historic enthusiasm in all the indicators and you had an extreme overbought condition across the board you've mitigated a little bit,

neutralized a little bit of that investor enthusiasm. >> tony dwyer, great to see you as always. thanks for stopping by. >> thanks for having me. great to see you. up next, the ceo of dow on how commodity costs are impact his business and why the electric vehicle industry is becoming a high growth opportunity for the company. speaking of evs, we'll be joined by hundred die's global chief operating officer later in the show we're back in a couple of minutes. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations.

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the ceo of chemicals giant dow speaking earlier today at a bernstein conference he expects strong demand coupled with constrained inventory levels for the rest of the year but sees the rise of evs as a high growth area for the company. joining us now is the dow ceo. jim, it's good to have you back on the show. welcome. >> hi, sara. great to be back with you. >> first we need a broad overview and an outlook on the global economy since your chemicals touch everything from housing to autos what do you see? how long is this boom going to last >> you know, we've seen strong

demand for electronics, mobility, housing, construction, consumer durables, packaging throughout the quarter obviously a lot consumer-driven consumer spending has been up 50% year over year through april and the consumer still has a lot of firepower globally they saved $5 trillion. a lot of that because of stimulus programs but they have also reduced mortgages and reduced debt so i think the consumer still has more to go and we're starting to see industrial come back as you mentioned, on vehicles, u.s. vehicle sales reached the highest levels since july 2005 for us that's good business, but the shift to electric vehicles is even better it takes 40% to 50% more of the traditional materials to make an electric vehicle like polyurethanes or adhesives or elastimers and 45% more silicones to make that because of the batteries and power train and all of the electronics that are on that vehicle. so very good trends, very good

drivers. housing starts are up 60%. this is the highest that housing starts have been in a decade i think as you've seen the property markets get hot around the country, people are starting to build now versus buying at the high end of a hot property market. >> so it sounds like you're largely talking about the u.s., jim, but you have a pretty big global footprint including a big business in china. what stands out internationally right now as where the strength will come from next? >> china growth and demand has been good in those sectors as well and i think the china economy is performing really well most of this growth globally has been on the backs of those two we're starting to see europe come back now as they get out of covid lockdowns and the vaccination rates increase of course at the same time india and brazil are very quiet right now, so i think you've got another leg up as that comes i mentioned earlier today oil

demand is 95 million barrels before covid we were above 100 million barrels. just air travel both international and domestic business travel would bump oil demand to pre-covid levelins an think you'll see business travel step up and international travel next year. so i think both travel, the service sector and the industrial economy will continue to come on i think that's good demand strength for us as we move into 2022. >> when you do look at the outlook for the u.s. economy, jim, clearly your first answer making it very clear that you have a positive outlook. what could derail that and within that the potential for higher taxes >> i think everybody has got an eye right now on inflation and commodity prices i do think as others have spoken on the program before that there is some transitory inflation

that moved through there is sometimes a knee-jerk reaction and a spike to some commodities and we're seeing some of that but i think capex is starting to pick up so you'll see some of that start to wash through in the back half of the year. i think you're starting to see the semiconductor supply chain issues in the back half of this year will start to be remedied and we'll see some of the tightness that we saw from the winter storm smooth out in the back half of the year. in our industry, for example, many people that would take delivery by rail, because they need product right away are taking delivery by truck that puts some pressure on logistics. we've also seen a little bit of that with marine packed cargo at the ports. so we'll keep an eye on that but i think as that inflationary pressure comes off a little bit, i think you'll see continued capex growth and more industrial growth. >> jim, i always ask you about the sustainability goals of your business, especially on plastic waste because you are such a big manufacturer of plastics

did we overall take a step back during the pandemic when it comes to reducing plastic waste just given the health issues that were front and center and the fact that people were locked down at home >> i don't think we took a step back actually there have been some policies that are moving us forward. the recycle programs that are being put forth, epa's target for 50% recycle in the u.s., programs to get recycling available curbside, investments in advanced recycling and mechanical recycling are stepping up. in fact one of the latest reports is there's about $5 billion of investments in those two sectors. and the other thing that happened during the pandemic was all of the brand owners around the world, there's more than 400 brand owners that have stepped up and said we want more post-consumer recycle material in our products. that's a demand pull that hasn't been fulfilled yet, and so you're going to see investments

come in behind it. as you know, esg funding has gone up dramatically so i think we're pointed in the right direction. as i remind people all the time, plastics have the lowest carbon footprint of any of the materials that can be substituted. so if you went to aluminum, glass, steel, paper board, they all have four to five times the co2 footprint. recycling is the right answer and that's why we've committed to get a million metric tons into our supply chain. just to show you year over year, our product lines that contain post recycled material have doubled. the marketplace is saying that they will pay for the post consumer recycled product. >> that's really good color. jim, thank you for joining us. it's good to see you jim fitterling. >> great to see you. stay safe. >> you too. hyundai's global chief operating officer on how the ongoing chip shortage is impacting the automaker's

production and its bottom line. plus shares of low tech stocks like amazon, qualcomm, micron, getting hit by a report that president biden is offering a 15% minimum corporate tax instead of a corporate tax hike overall to win gop support for his frtrtuinasucre bill. we'll have more details on this later on "closing bell." (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned.

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i love it. time now for a cnbc update with shepard smith. >> here's what's happening

traffic deaths across america soared after covid lockdowns ended. for the all of 2020 there are almost 39,000 traffic fatalities, the most in 13 years, and a high death toll despite the fact that americans drove 13% fewer miles on average than the year before the death rate per mile driven hit the highest level in 14 years. the fbi is now joining in the investigation to identify a boy whose body was found over the weekend near las vegas police say it's clear the kid was killed, but they're not saying exactly how there's a $10,000 reward being offered for information that will allow authorities to identify his body. and what makes a company or group stand out for cyberattackers pipelines such as colonial or new york's transit authority can't really afford downtime tonight we'll report on what else ransomware victims have in common, and what all of them are doing to try to defend themselves that's on the news, 7:00 eastern, cnbc. wilf, back to you.

>> shep, thanks so much. we look forward to it. up next, mike santoli will have a look at how the debt market is holding up after the rpd's decision to sell its coorate bond holdings. we'll be right back here on "closing bell. nails gummies. the number one brand to support beautiful hair, glowing skin, and healthy nails. and introducing jelly beans with two times more biotin. at cdw, we get that even as we return to the office, collaboration is still evolving. it's time to make collaboration better, seamless, secure. with cisco webex orchestrated by cdw, get ai enabled automatic transcription and translation, and easily share documents, notes and even whiteboards from anywhere. so even if you're not in the same room, you can still say, "go, team!" for evolved collaboration, trust cisco and it orchestration by cdw, people who get it.

stocks closing lower today the dow broke a five-day win streak the nasdaq fell 1% let's send it over to the telestrator where mike santoli is taking a look at corporate debt the return of the telestrator. >> it was just the way i left it take a look at how corporate debt is behaving here. of course the fed yesterday said it was going to allow its modest holdings of corporate bonds to roll off the balance sheets. it was never the big player, but psychologically it had a big boost last march of 2020 this is the price of the high yield debt etf against the price of investment grade corporate grade etf. what you see here is the appetite for riskier debt is holding up just fine, even as higher interest rates on treasuries impact the price of investment grade debt. basically this is what you would want to see essentially appetite for credit risk is still pretty healthy and basically not showing any wavering, even today after that announcement. take a look at what corporate

spreads look like on a long-term basis. essentially they are as tight as they have ever been. in other words, the credit market is as strong as it's ever been pretty comparable to the preglobal financial crisis level of compressed spreads we had back in the mid-2000s. this does not look like a market that is in too much need of central bank help and that's probably opening the way for the fed to back off. it also means very difficult to see a lot of improvement here further from this point on therefore, you have to imagine rising treasury yields are likely to raise the cost of corporate credit it's already happened. corporate debt, investment grade debt is up from under 2% on average to 2.4 maybe that modestly affects equity valuations down the road but something to keep an eye on as the fed very slowly inches toward backing away from this accommodative policy, guys. >> i guess we question when treasuries move meaningfully whether that makes a difference. hyundai america reporting

another record sales but can they meet demand we'll be joined by their coo, next

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one of the many things you could expect when you're with amex. shares of ford and general motors finishing higher today. ford announcing total u.s. sales for may were up 4.1% compared to the same month last year gm is expecting first half profits for 2021 to be significantly better than had been previously forecast meanwhile hyundai reported a 56%

increase in total may sales compared to may of last year they set an all-time monthly sales record for the third straight month joining us is the north america coo. great to see you thanks for joining us. first and foremost, this demand we're seeing in the u.s., how has it been for you and do you think it can be sustained? >> well, thank you for having me again. yes, i've enjoyed very much the yale ceo summit. the month was fantastic for us you just said it so we had an all-time record it is the third in a row and the most important is not only the number itself, the first time that we sold more than 90,000 units in a month, but the distribution of the sales. particularly happy and proud to see that the genesis sales almost tripled and our green car

sales were almost tenfold versus a year ago this is really fantastic so is this sustainable well, we see already that the market in the month of may was roughly 1 million lower than a month ago, driven mainly by the short supply that most autos are having our forecast is this situation is going to continue in the short term so june is going to be a little bit more challenging. basically we moved from 18 million sold in the month of april to about 17 million in may and maybe we'll see a lower number so the total supply going down dramatically for everybody, i think, is now in the industry about 23 days, which is about 38 days' supply lower than a year

ago so it's going to be difficult to maintain this trend. >> how are you finding those supply pressures yourself? >> well, we are finding a lot of pressure across the board, not only on chips but all the components but we've done a much better job than other competitors our colleagues in south korea and our sales in north america realize that some markets are already recovering when the u.s. was hit by the pandemic. in particular, our colleagues in south korea saw a real bump of the market and so then we continued to order critical components like chips. however, we've lost production versus our plan, but we have not been hit as much as others so far we've been able to maintain most of our operations up and running in june, we have new challenges, but i just got a report that we most likely will be able to

achieve our plan for the month which is really very good for us >> gm's stock has been on fire ford's stock is at a six-year high, jose do you think that you're getting enough credit for some of your ev plans >> well, i think the market is the best one . well, i think the market is the best one to doing our number we've achieved our market by 2025 in 100 group and 8 to 10% share in that market and introducing 23 battery ev cars by 2025. so sales are growing and also as you know, one of the unique oem and actually the only one that has in the market a hydrogen power engine and so i think if we haven't gotten all of the credit i'm sure we'll get it

very soon because we're doing all of the right things led by our global chairman mr. charles who is taking a great direction to the company globally. >> jose' munoz, thank you for joining us for the business update from hyundai. >> thank you for having me. >> still on the show, new reporting how the biden administration will pay for infrastructure package without alienating republicans, when "closing bell" comes right back. this is how you become the best! [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪

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>> president biden is reported by proposing a 15% corporate tax floor to win republican support for an infrastructure plan now with those details, yrks l an. >> president biden is floating a minimum tax on big corporations as way to pay for infrastructure package without alialienating republicans, this is the first time it's coming up in the bipartisan negotiations, specifically, it would establish a 15% tax on the book income of corporations with profits of $2 billion or more the administration estimates 120 companies a year currently immediate that thresh hold and says a significant portion pay either zero income tax or

actually receive refunds, jen psaki said the goal is to ensure companies are p.aying what they owe and that the administration is not backing away from 28% corporate rate this book income tax is separate from the administration's negotiation over a global minimum tax which is also proposed to be set at 15%. back to you. >> ylan, thank you mike, that did certainly have an impact on the market and there's questions about whether president biden would be willing to compromise on this, and whether it's really have on an impact on stocks and holding back valuations, the idea of a corporate tax rate globally. >> the timing of the news this morning did coincide with the market bounce, the idea the biden administration is willing to deal on the higher corporate tax rate, maybe looking for a solution that gives the infrastructure, fiscal push you might not otherwise be able to count on

i think that's the main issue. i don't think the market price in tremendous hopes but it doesn't hurt. >> main thing we're all back together mike, great to have you back and other shows coming together as well. >> it's good to be back together but be more distant thin shis shin-ing kicking under the table. >> we've both been on the receiving end. mike, one thing that stood out 5.5% deline for tesla on the close, and other big names down as well, another thing to keep an eye on below the 600 level. >> there's a lot of wear and tear on the big stocks amazon and apple below their 20 -- 200-day average, something to keep an eye on. it's just not winning the marginal enthusiasm of investors. we know these companies can deliver but everything right now

is about how much leverage do you have for a big economic revival. >> a lot of people are looking at the liquidity picture glad tony brought it up because yes the federal reserve is all in but you wonder what will happen when tide continues to come in. >> dow . >> that does it for "closing bell", "fast money" starts now. >> live from the nasdaq floor this is "fast money" tonight's trader lineup guy adami, dan nathan, karen finerman, and tim seymour. a penny price target on amc, rich greenfield is with us, why he's sticking by his call that amc is headed to a penny a share. plus all over after-hours actions of lulu lemon and crowdstrike and docusign we'll dive into all three stocks and tesla shares s