and such insurance company doing it, that would probably fall under the rubric of alternative assets but it means it's supporting the industry even if it's not grabbing headlines. >> it can be a risky asset but also a risk mitigation technique. >> thanks for tuning in, everybody. >> thanks for watching "power lunch. "closing bell" starts right now. >> thank you welcome to "the closing bell." i'm wilfred frost along with morgan brennan who's in for sara eisen. stocks moving higher in today's session though off their best levels as we head into the final level of trade may consumer prices rose at the fastest pace since the great recession, up 5% year over year. meantime jobless claims hit a pandemic era low last week of 376,000. the meme trade is falling off.

amc, clover health, and others are pulling back as well 59 minutes left to go. we're on record close watch once again for the s&p 500. >> we sure are coming up on today's show, liz ann sonders joins us with what today's inflation data means for the market and for your money. plus, shares of signet are popping after the company reported a blowout quarter we'll speak with the ceo and what the company is predicting for the back half of the year. and we're going "in the heights. director jon chu joins us about taking lin-manuel miranda's musical to the big screen. let's focus in on the big stories. steve liesman has more on the red-hot inflation reading and mike santoli has a look at the market response.

steve, kick it off forus. >> thanks, morgan. yeah, a blockbuster inflation number that investors seem to think is peaking or has already peaked but providing details that do fuel the debate about whether this price surge is temporary or something more lasting. up 5% year on year, these are big numbers. 0.6 and 0.7 ex energy. used cars up 7.3%. airline fares are 6% below where tlerp before the pandemic. natural gas is up 1.7. food rising 0.4% the hot take from economists shows there's a robust debate about whether this is all going to go away or if high inflation numbers are here to stay

the pace should stabilize and moderate as reopening affects fade and once supply catches up. that's not the view at morgan stanley where ellen writes the more persistent components like rents and oer firmed up as well more than expected point to a firmer source of foundation for the inflation. and ian shepardson with the best line of the day from pantheon saying the fed better be right about bottlenecks. if it isn't, the risk is a speedier turn-around in policy wilf, morgan. >> well, i guess, steve,not just a speedier turn-around might be necessary, but even say if this is transitory, the question is how big a tightening you're going to need if it's not to put it that way. 5% expectation, it's 4.6% but if

they're wrong, they're going to be painfully, painfully wrong. >> i think you're asking the right question, wilf the medicine is relative to the problem that's out there you can probably say the problem the fed doesn't have to deal with is 5% some of that is probably going to go away because of the base effect something that's going to linger is around 3% if it stays around. i don't know how much you need but it wouldn't take a huge amount of tightening if you had sustained inflation around 3%. remember, at the moment fed policy is to aim for inflation above its 2% target so at least for some time it's not going to see that as a problem and address it at all, wilf. >> steve, thanks very much for that let's bring in mike santoli for what it means for the market, which is not so much. >> pretty unfazed investors are with that number it could be that sometimes when there's so much outsized focus

on an individual data release, just getting it behind us and making sure other people aren't panicked about it, you can release the market toward probing the upper end of this range. we are at a record high. you have a lot of stocksdown things like software, not like energy 4238 was the prior intraday high, here we are 4239 at the moment sure, it looks like either we're just going to the top of that box right there or it's about to break through. i think sentiment has moderated but it's not as if there's a lot of energy built up to the upside that's why we're waffling a little bit not a bearish picture but not one persuading you that it's up, up from here europe we pointed to a couple of times as being an outperformer very recently. at the ecb meeting they're going to keep doing qoe.

things like hong kong and latin america have actually had a little bit of a rough patch more recently take a look at something called the rule of 20 it's an old wall street rule of thumb that says that the pe multiple of the s&p plus cpi inflation should be about 20 if the market is fairly valued. there's no real precision to this, it was very much a broad rule you see it doesn't spend a lot of time at 20 but for the most part 20 has been the separation between what you might call an expensive market and undervalued market we were mostly below that in the late '90s, way above it for a couple of years. people who think in this mode will say we have to pay less for each dollar of earnings even though companies do benefit from pricing power. another way that it filters into

equities, guys. >> the 2020 vision, i like the little title there on that chart, mike. just to go back to the deflationary sectors and the fact that some of these growth names have been working in recent days again, we've certainly been getting that commentary about the rotation back into growth from a number of investors and high-profile portfolio managers does it speak to maybe perhaps emerging debate that peak inflation is already priced into this market? >> it certainly speaks to that, morgan actually yields have been the beacon when it comes to the value versus growth equation since yields have been capped and now that they've trended lower, you've had more bidding growth i don't think it's necessarily about the old growth leaders are really going to reassert their dominance again. but we're in a 3 to 5 and 6% pull back.

obviously the market is not quite sure where the incremental dollars should be going in that context. the big nasdaq stocks, i view them as more quality and stability as opposed to just pure growth so that sometimes swings the indexes around too. >> mike, thanks so much for that as always. we are up half a percent on the s&p. still a couple of points away from where we need to be to have a record closing high. after the break, apple revealing changes to restrict companies from tracking data and that could have major impact on the digital ad market. we'll discuss that with sir martin sorrell next. you're watching "closing bell" on cnbc.

keeping your oysters business growing has you swamped. you need to hire.

i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it.

so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. welcome back we are set for a record closing high on the s&p 500 if we stay here, up half a percent with 50 minutes left in the session. apple's new privacy features are causing worry among some

advertisers. ad tech firms telling "the wall street journal" the features could vastly damage the advertising industry and make it hard to know if ads are actually being effective. despite concerns, s 4 capital is still bullish on the industry. they boosted their net revenue guidance to 35% from last month's forecast of 30%. joining us sir martin sorrell. thanks for joining us. >> good evening from london, wilfred. >> indeed, indeed. so let's hit this apple change in policy on privacy policy if we can, sir martin is that something that concerns you as an ad executive that it's going to change all those gains that you've made in the last decade by getting more data on people >> no. i think if you look at -- if there was a marketing industry vix index, which there isn't, but if there was, the sort of things we've seen, not just what you're referring to in relation

to apple today, in relation to i.d.s, but also in relation to idfa and google's decision to d depricate, all of that adds to the uncertainty. we are not an ad tech firm we're not dependent on one technology or the other. what we do is gauge the relative importance and if you look at the underlying growth, q1, for example, you seegoogle moving from probably 180 billion to 240 billion in terms of ad revenues this year. facebook from 80 to 110. amazon maybe 20 run rate to 35 it's an extra hundred billion that will be pumped into digital advertising this year on the back of the pandemic, given by

the gdp rebound that we were talking about a few minutes ago. 5% to 6% this year in the world and 4% to 5% next year these are an unprecedented two years. so there are two things driving s4 and our industry. one is digital transformation. the other is the bounce back in the gdp from the post-pandemic -- the pandemic levels >> we'll get into some more microstuff in a moment, sir martin on the macro front, g-7 meeting kicking off in the next couple of days. it's expected that president biden is going to try to corral more support from other world leaders to join him in a tougher stance on china. what is your view on that at the moment as to whether that's the right move is it likely to go down that root, or do you think we'll see

easier tensions in due course? >> well, as you talk to somebody trying to build a global company, we have 5,500 in 21 countries. our market cap is just under $5 billion. china is a really important market it will be the largest market in the world by 2028. maybe that makes certain countries in the west uncomfortable, but the facts of life are -- it's not on a per capita basis i do worry about climate change. i do worry about diversity and inequity i do worry about brexit, i do worry about the pandemic, i do worry about inequality, but what top of the worries or close to the top if not the top is u.s./china relations and finding a way where we can constructively coexist instead of what is effectively a cold war i think is a key issue so i mean i saw a squib today

about the first trade negotiations between the chinese and the new american administration, biden administration, and it was slightly positive. maybe there's something happening. a lot of this is for public consumption because nobody -- not nobody, but u.s. business when it started with president obama, developed with president trump and is continuing on under president biden, i don't think the u.s. business community was troubled by it until the friction started to hit their businesses in what is currently the second largest market of the world but will be the largest. so finding i think it was paulson's speech two years ago in singapore which referred to the cold war, finding a solution, a constructive solution between the u.s. and china is key if you believe in the growth and development of a

free economy free trade has given the businesses over the last 25, 30 years. certainly since 1985. >> sir martin, it's morgan i want to get your thoughts on these apple privacy changes and that what's going to mean. also that you have countries an regulators in countries trying to crack down on privacy of data as well. what all this means for shifting business models and how a company such as yours can yield data to continue to target consumers and the like in a very specific way >> well, all the changes that have taken place result in certainly uncertainty in the short term but two medium to long-term trends this is consented consumer data. there's a lot of confusionin

the media and amongst analysts we had an analyst call today there's a lot of confusion about what first party data is first party data is client-owned data which consumers have consented to the other bucket is signals you can get from the platforms so i think also in the context of the apple changes or proposed changes today will drive our clients somewhat reluctantly, i have to say, if i listen to them over the last sort of 18 months because google's decision to depricate and eliminate third-parties were during the pandemic clients were talking about what they had to do to develop their first-party data sources, make sure they floefdwed into each oe

in a constructive way and used the signals from the platform in the west, google, facebook, amazon, in the east, alibaba, t tencent and tiktok so all this does ironically is force clients, a, to make sure that their data is pooled in the most effective way and their systems work a lot of our clients have grown organically without common systems or grown through acquisition where they have acquired different systems so it means a lot of re-education and reformulation and retabulation of data into coherent form and then using the signals so it drives it back to the platforms ironically so what you're going to see is a strength of those platforms. twitter, pinterest, snap are all

important. we have important relationships with them and work with them, but in terms of size, last year was 2.5 million of ad revenues even if it grows 50% per annum, it will still be relatively less than the figures that i gave you in relation to google, facebook and amazon >> sir martin, great to see you. thanks for stopping by. >> thank you, wilfred. thank you, morgan. >> sir martin sorrell. up next, you may have to alter your go-to starbucks order soon as the company faceodts we'll tell you what's behind that supply crunch, next. as we head to break check out some of the top searched tickers. the 10-year yield is back on top followed by amc, gamestop, clover health and clean energy fuels, the so-called meme stocks 'lbeig bk.

new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

welcome back the rapid pace of reopening is leading to a shortage of fan favorite items at starbucks. kate rogers has that story for us kate. >> hey there, morgan well, there are reports on shortages of everything from cups to cake pops at different starbucks locations around the country. while starbucks couldn't confirm specific items being out of stock or in short supply, it did tell cnbc we are experiencing temporary supply shortages of some of our products specific items will vary by

market and store and some stores will experience outages of various items at the same time we apologize for the inconvenience and are working quickly and closely with our supply chain vendors to restock items as soon as possible. the company also noted some issues of labor in the supply chain that are trickling down and impacting the availability of some of these products. i know personally on the starbucks app, i've gotten out of stock or out of season messages on certain tea drinks that i've tried to order also oatly has also been out of stock messages for that in certain areas of the country and that's a supply issue on the oatly side but i think the common thread is the labor issue is touching every part of the business we've heard it from papa john's and wing stop noting hiccups in their supply chain particularly around the chicken wing shortage >> but not the oat milk, i'm right there with you with the oat milk and the coffee. kate, is this an opportunity for

duncan or another competitor to swoop in and take some market share or are they also experiencing issues? >> dunkin hasn't come out and said anything so a little different business operation they're also a bit smaller starbucks is the leader, they are everywhere, so the footprint is just larger but potentially an opportunity, particularly as dunkin continues to expand across the country and into the west coast as well. >> kate rogers, thank you for that so many types of milk these days. >> what's your favorite? >> black coffee, simple. occasionally a drop of skim milk. >> i have a black coffee right here myself. i'm right there with you, other than oat milk in the morning. >> the thursday afternoon requirement for sure kate rogers, thank you very much for that still to come, the energy sector up 50% this year and driller denbury is replacing those lofty gains. the ceo will join us coming up

shortly. plus we're going "in the heights" with the director of lin-manuel miranda's latest film. >> man, musicals are the shizz. >> director jon chu will join us to talk about the release. that was a shizz with a z, by the way. plus reopening and the amc meme craze. here's a check on the bond yields somehow marching lower, 10-year down to 1.454% kind of remarkable we're back in a couple of minutes. this is the sound of change. the sound of a thousand sighs of relief. and the sound of a company watching out for you. this is the sound of low cash mode from pnc bank, giving you multiple options and at least 24 hours

to help you avoid an overdraft fee. because we believe how you handle overdrafts should be in your control, not just your bank's. low cash mode on virtual wallet from pnc bank. one way we're making a difference. some say this is my greatest challenge. low cash mode on virtual wallet from pnc bank. governments in record debt; inflation rising, currencies falling. but i've seen centuries of this. with one companion that hedges the risks you choose and those that choose you. the physical seam of a digital world, traded with a touch. my strongest and closest asset. the gold standard, so to speak ;) people call my future uncertain. but there's one thing i am sure of...

we've got 31 minutes left to go the s&p right now is poised to close at a new record high the dow has pretty much given up its gains of the day, but let's get a check on individual market movers shares of cheesecake factory plunging after announcing plans for a convertible note and stock offering that stock falling sharply it's putting pressure on its restaurant peers as well

you can see cheesecake factory is back 8% bloomin brands, texas roadhouse and dine brands all lower as well goldman sacks adding servicenow to your buy list that stock is up more than 5% right now. as i mentioned, we've got just 30 minutes or a half hour until the closing bell here is where we stand the s&p is at 4238 or up about half a percentage point. the dow really hugging the flat line right now and the nasdaq is the outperformer as we've seen those tech and health care names leading the charge meanwhile shares of signet jumping, same-store sales more than doubling from a year ago. really sparkling results right there. up next we'll break down the numbers and what products are driving growth with the ceo. plus the cnbc evolve summit

is coming up on june 16th leaders join us to share strategies on adapting in this new era of business. learn more at cnbcevents.com/evolve. it is an all-star lineup hey, dad! hey, son! no dad, it's a video 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 for online u.s. listed stocks. don't get mad. get e*trade and start trading today. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty.

and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it.

at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward, trust cdw amplified services

welcome back just under 30 minutes, about 26 minutes left of the session. let's check in on where the markets stand. we are up slightly on the dow but only 25 points or so the high of the day was up 290 the s&p, though, still set for a record close it's up about 18 points. the nasdaq up a healthy 0.7% here's a check of gamestop sitting at session lows, down 30%. they reported an earnings and revenue beat yesterday and announced a new ceo and cfo, both coming over from amazon gamestop also received a request from the fec for information surrounding the recent trading frenzy the stock's steady slide through the session, down 27%.

time for a cnbc news update. tyler mathisen has it for us. >> let's tell you what's happening at this hour get ready for more college football playoff games a plan is being considered to triple, yes, triple the number of teams in the playoffs from four to 12 commissioners are expected to discuss the possible change next week lots of people have been calling for that. california's attorney general filing an appeal to keep the state's ban on assault weapons. a federal judge overturned the 32-year-old bak but gave the state 30 days to appeal. near philadelphia, at least three homes going up in flames today. at least one explosion also reported smoke from the fires visible now from miles away. two nearby schools have been locked down. and in india, thousands of unreported covid deaths have been discovered in that country. one state has raced its pandemic death toll by 4,000, nearly

double the previous total. the discovery raises suspicions that covid deaths have been vastly undercounted across india. folks, back to you. >> tyler mathisen, thank you. shares of signet are soaring today on the back of a strong q1 earnings report. the company raising revenue guidance for the year. joining us now is signet ceo je jenna. thanks for joining us today. >> thanks for having me. >> really strong numbers as we just mentioned right there i realize you did raise your guidance, but as you look out into the coming months, how sustainable is that strength, is that growth that you've been seeing how much of this is pent-up demand from consumers who have amassed a war chest of savings and stimulus money versus, i guess, just reflection of the company and the fact that you're targeting consumers overall? >> well, i'm really proud of our

signet team. they delivered an excellent first quarter. we continued the momentum weet at holiday through a strong valentine's day and mother's day. we did exceed our q1 numbers and raised our guidance for the year we also reflected guidance f a strong q2. we're really investing to try to get more than our fair share of the market demand. the jewelry category is up, some tailwinds from stimulus and tax refunds but our plan is working. we're seeing great results behind our connected commerce strategy, our banner differentiation, our acceleration into service, and we're leading digital commerce in the jewelry. >> e-commerce up more than 110% year over year as well i know that's something you doubled down on in the pandemic. how much of that continues to stay versus people going into malls, going into stores and increases in brick and mortar

foot traffic >> well, i think the pandemic has changed customer shopping behavior forever we're seeing a lot more customers come to us online, even if not to purchase, to look at selection, to become educated we added during the pandemic more than 700 virtual jewelry skull ants we now have google chat, apple chat those are new capabilities within the quarter we're improving our websites rapidly. more than 100 new features added during the first quarter so we think we have a unique opportunity and competitive advantage as we create a superior online experience connected to our scaled store footprint. >> experience being the keyword there. we've been talking about this on a macro level as we see a shift emerging from consumer spending on goods to services as the economy continues to reopen. how are you planning on that, and how do you continue to get people to come in and buy your jewelry if that is now a

competitor for some of those dollars? >> well, we did guide conservatively for the back half, anticipating that the customer demand for travel, for experiences, for going out to din are, that kind of thing, would increase we do also have some tailwinds engagements have been very strong for us. more weddings are happening now. that's always a good bellwether for more engagements to come, and people are celebrating those that they love more than ever before one of the most endearing statistics from the quarter is that 53% of jewelry category customers bought a valentine's day gift for hair their spouse that was up 16 points versus a year ago so people are really celebrating those important to them. >> diamond prices, we've seen them moving higher, starting to see reports about the possibility of looming shortages. what are you experiencing?

>> well, we have very strong vendor network, strong strategic partners, so we've been working with them to n sure that all of our banners sales, jared will definitely have the diamond supply that we need. we also have a pretty long purchase cycle so we don't tend to see any kind of immediate impact from inflation or shortages. we have also found that metals like gold and diamonds are elastic and we're typically able to price for any increases we see. >> walk me through jewelry subscriptions. >> we just acquired the nation's leader in jewelry rentals and subscription and we are really helping to build their awareness. we did a fascinating program on jared in the last month where we invited customers who bought from jared to get a free couple

of months subscription to rocks box. when they activated that, we gave them a poubounce-back to c back into a jared. we're using the high awareness of our banners to help build awareness of this new subscription service we think we can become a winner in the circular economy and this is very important to gen z who are the heart of our engagement target audience. >> jenna, thanks for joining us today. >> thank you. well, wilf, we could say diamonds are a girl's best friend but maybe they're an investor's best friend. >> signet stock is the best gift of all perhaps. straight ahead a new reit stock gets caught up in the mania. those stories and many more in the market zone next don't forget you can watch or listen to us live on the go on the cnbc app we'll be right back.

announcer: xfinity wants to send you to universal orlando resorts' three incredible theme parks. where you could feel the rush of the hunt on jurassic world velocicoaster, opening june 10th! plus, you'll stay steps away from the action at universal's cabana bay beach resort. to enter just say "universal parks" into your xfinity voice remote, or go to xfinityadventures.com for your chance to win!

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. 15 minutes left in the trading day. we're now in the "closing bell" market zone, commercial-free coverage of all the action going into the close mike santoli is here to break down the crucial moments of the trading day and today we have stephanie link as well the dow, s&p 500 and nasdaq all trading higher the s&p 500 on track for its first record close in just over a month, a month and three or

four sessions. at the moment it's got five points of breathing space. dow just positive. nasdaq up 0.7% the story today is the resilience of equities and the buying of bonds. >> so it seems the takeaway is that the hot cpi number being driven by maybe some unsustainable categories that are very concentrated in some areas like used cars we don't have to worry about it or extrapolate this. it just seems as though there's a little bit of a check going on of the macro enthusiasm in terms of the reflation trade, in terms of just how strong the global rebound is going to be if you look at the behavior not just of treasury yields but also related sectors, banks and industrials and transports, they're just a little bit on their heels. i don't think that's a complete change of tide, but there's a rethink going on the market holding near highs is generally bullish. it's doing it in a very listless

way with low volumes. >> stephanie, is that how you see it, as a rethink as we see the equity market and bond market shrug off that hot cpi number this morning? >> what i think is happening is you've had a massive outperformance in value over growth by 10 percentage points year to date if you think about some of the components, morgan, you know this just as well as i do, the xlf is up 26%, the xme is up 50% year to date so the cyclicals have had a nice run. by the way, include industrials too with double digits so cyclicals have had a nice run, value has had a nice run. i don't know if this rotation is going to last. it will last if you think growth is slowing massively, back to trend, that we have zero inflation and all the inflation is transitory and if interest rates stay low that's a recipe for growth outperforming value. the reverse is true if you think

the opposite i think in the middle. i do lean cyclical because i think there's a lot of operating leverage left. i lean also on reopen. i think the earnings on the services side have yet to really inflect. but at the same time you can't ignore some of these high quality technology companies that have pulled back quite a bit. they're not cheap, but they're cheaper. >> yeah, i realize that a lot can happen over the next, i don't know, whatever it is, six months, seven months where do you think we end the year in terms of the 10-year yield? >> well, i mean i'm in the camp that all the stimulus will be to above trend line growth in gdp that will lead to better earnings i think that you will see the cyclicals continue to rally. that means if you think that you have a little bit more inflation and inflation isn't all transitory, and i don't think it is i think wage pressures are a real thing it's good for the consumer but it does worry me from a corporate profits point of view.

i do believe you have better growth in gdp, a little bit more inflation and a little higher interest rates maybe you can get to 2%. that's really all we need. that's still kind of goldilocks scenario. >> shares of ashford hospitality are lower but the name has been a huge meme stock winner and seema mody has the details. >> the stock turned loafer after our conversation with the ceo of this is a hotel operator with a storied past and controversial business structure, yet catching the attention of retail traders resulting in a 130% surge in shares this year ceo rob hayes who recently joined twitter to have a direct conversation with his new investor base says he totally intends to embrace the meme trader. >> once you see it as a ceo in this modern era of communication, you either choose to embrace it and use it for the sake of the company and the shareholders and our employees, or you become a silent ceo i chose to lean into it a little

bit and we'll see what happens >> one way he's leaning into it, issuing a number of stock sales this year. so far he's raised about a hundred million dollars. this is a company sitting on a lot of debt, approximately $4 billion, guys. back to you. >> seema, thanks for that. mike, in meme stock world today, quite a lot of selling and steady throughout the session and getting worse for the likes of gamestop. down 30% now >> obviously it requires waves and waves of new money to keep these things going most of the stocks that moved a lot on these stories have not been genuine short squeezes where there legitimately were shorts forced to be big buyers in these names just because the buyers were swamping the short positions all along. so it's not so much the intensity of the chatter and even the options trading was not yet matching what was in january. obviously they're still dealing with being up dig from a few

weeks ago or even more recently, but pretty steady give-back today. by the way, you have these big movers up on earnings today, like signet, like rh stuff is moving on its own merits as opposed to just because someone said something online. >> stephanie, i want to get your thoughts on the fact we're seeing pressure on some of these names as of recently is it profit taking? is it part of the bigger rotation, maybe mini rotation this week that we're seeing? >> twell, the meme stocks make n sense to me. there's a certain kind of investor that invests in these things they're more traders these people are nimble and can accept volatility for sure because there's a lot of volatility they're not really trading on fundamentals i don't know why the s.e.c. isn't more aggressive. i know they're starting to pick into the whole situation but they should be real aggressive to get to the bottom of some of these moves. so i think out of all the memes

if you want a name and i don't even think it's a meme, is wendy's. they actually have a story to tell they have ebitda growth. and i think they're a reopen name services is really a big part of my theme in my portfolio for the remainder of the year. so if i had to pick a name, that would be it. the rest i just don't understand. >> boeing is higher amid reports of a potential jet deal with united phil lebeau has those details for us. >> two pieces of news involving united airlines. well, according to reports, it's not just boeing, it could also be an order that involves airbus as well. according to reuters, they are looking at buying 100 boeing 737 max 8s and also dozens of airbus a-321 nio jets for boeing and airbus, this is what they need they need these orders to pick up they have been moving and accelerating although airbus is still

negative 31 planes on the order book so they need a little more than airbus. the other piece of news from united, this morning the company announced on "squawk box" that it is forming a venture capital funding. they have already done three deals in the last seven months and they have $200 million and more deals are on the way. back to you. >> phil lebeau, thanks for that for that a-312s is not a new plane out. steph, i'll come to you and what you are takeaway is. it's a stock you've been into and out of at different times. where do you stand on it at the moment >> i own boeing. it's up 16% year to date so it's had a good year but down 40% from its old highs but this is like a reopening as air traffic continues to recover, the tsa checkpoints are really solid and improving sequentially 21% of their wide bodies are 21 years or older i thought the airbus news about

increasing production and deliveries bodes well for boeing because that could add 450 new planes for boeing as well if the demand continues and s going to be a

really busy summer for ipos as well. >> it is. >> and the journal did a write-up on this just this morning that ipos can raise some $40 billion over the summer months which would be the most ever on record you take that and couple it with the fact that we are still seeing it might be more than a drip -- >> activity? >> spac deals as well. you have more and more companies coming to market right now. >> it is i know what "journal" article you're talking about and they're starting to see a resurgence of ipos of course you do still get the spac deals that are announced as

well, although actual issuance of spacs is down from the first quarter of the year. but it is interesting to see some of these bigger deals test the public markets this summer. >> leslie, thanks so much for that dwelling on that revenue number, 6 billion for the last quarter, uber was about $3 billion so that gives you an indication of the relative size. this was competitive until everyone decided to step back and didi a very key player. >> you wondering how you'd work the economics are. prices over here going up with uber and difficulty to find drivers. there was a little bit of a chill in terms of large ipos of chinese companies in the u.s we'll see if that's somer if th significant issue.

>> we've got a little more than two minutes to go in the trading day and you have more on the market internals, mike >> yeah, morgan. it's been a little bit slippery under the surface here, not necessarily a negative day but given that we hit all-time highs and for a while were up half a percent on the indexes it has been a little mixed under the surface. new york stock exchange advancing versus declining it's been modestly to the upsight. still is, 1777 advances, almost 1600 decliners we were talking about pullbacks in some of the cyclical sectors. take a look week to date of the industrial sector versus software software is the deflationary secular kid kind of growth industrials are trouncing them but it is a mean reversion trade going on the volatility index, we talked yesterday about how it has

clenched up a little bit that's really giving way, down almost to 16 you would imagine that it's got a downward bias here we've got a summer friday coming up yes, a fed meeting next week but it would seem given the very calm levels of absolute volatility in this market, somewhere around 5% or 6% on the vix scale, you would imagine that it would have a little bit of a downside buy which would be bullish if it continued. >> just a minute left and we are set for a record closing high on the s&p 500, which is up 0.5% and about three or four points of breathing space there to get that record closing high, which we are set to have the last one coming about a month and four days ago. the dow is up just fractionally, 20 points or so. it was up 290 at the high of the session, so well off the highs for the dow. the nasdaq holding on to 0.8% of gains. the russell is negative today,

down 0.7%. health care, real estate, technology, communication services the four sectors performing the best. they're all up 0.7% or so. the worst are financials and industrials. financials suffering as yields pull back despite that big inflation and banks are one of the worst performing sectors this week. at the close, though, we do have a record closing high for the s&p 500 up 0.5% today. welcome to "closing bell." i'm morgan brennan in for sara eisen along with wilfred frost and of course mike santoli as stocks settle here into the close, just getting a quick read on the major averages. you just heard wilf mention a new closing high for the s&p 500. the dow basically closed flat line up 19 points. the s&p, 4239 was the level

there, up 0.4, almost 0.5% the nasdaq closed up almost 0.8 of a percent small caps as well as transports under pressure today. coming up, charles schwab, liz ann sonders on the biggest increase since 2008 and how investors can protect their portfolios from possible inflation. >> plus "in the heights" is making its hollywood debut today. in theaters and streaming on hbo max as well. the director will give us his take on the new hybrid release model. stephanie link is still with us and erin pinco joins us also first we go to mike santoli to get your take on the market. yes, it's been a very narrow

trading range but we do have a new high for the s&p. >> we do slightly counterintuitive the way things came about with a new high bond yields lower, you have the nasdaq leading the way really accounting for the record. i also think it happens in a manner that is sure, almost built to leave a little bit of residual doubt in people's minds. you have an all-time high but basically at the former intraday high set a month ago you have the cyclical areas that are taking a breather. so maybe the market's job of keeping everybody off balance is pretty much being done well today, but hard to argue with kind of a levitation to a new all-time high. even if banks weak, industrials weak, makes it a little uncomfortable for people. >> erin, what do you make of the action today >> when you look at yields, they

fell about five basis points and you had some break-evens a little higher. so i think the break-even response in the market does tell you the market is still optimistic about the more cyclical sectors of the economy ticking higher i think the reason you saw more muted reaction looking at th 10-year treasury is because there's a lot of discussion about whether we're at peak inflation and whether this marked the peak in terms of where inflation is headed the rest of the year although i don't think people think it will fall dramatically from here, i think the market thinks we're past the worst point so you saw a little profit taking and that trickled through to the difficulefensive sectors outperforming like health care and the software sector. >> peak inflation, we're hearing the debate around peak earnings,

peak economic growth at least during this quarter. where do you fall on that debate >> we have a lot of liquidity in the system you do not fight the fed the real story is about rotation this year. value was outperforming growth for a good part of the time. now growth is taking over. i think that's very healthy. i do not think we'll fall back to trend line growth because of all this stimulus. i think that a lot of the inflation is transitory but a lot isn't. wages are really -- it's really incorp important to keep an eye on that we're hearing from all kinds of companies that are raising wages. i just think that's hard to reverse. and so we want to watch that so i believe it is pretty good growth, maybe not as good as the first or second quarter, but you'll continue to see strong growth, above trend line, a little more inflation and i think that's why i lean anyway

more towards the economically sensitive reopen names but i'm not ignoring secular growers especially on a day like that. >> steph, we were emailing back and forth yesterday about a couple of initiation notes on the two biggest investment banks, morgan stanley and goldman sachs. bullish on both. what did you make of the notes and which is your preference >> i really like this analyst a lot too, wilf. i own morgan stanley i like the diversification strategy i think the m & a they have done in terms of e-trade. i like the fact that they're not yield curve dependent as much because of these deals that they have done. they have a world class investment bank. they have record backlog so they're going to participate into this ipo thing as well that we're starting to see again. by the way, they're buying back $10 billion of stock they have 7.9 billion left to go, that's 5% of the shares outstanding. the stock trades at 12 times

earnings so this is definitely a name that i would add to i like goldman but i prefer morgan stanley. >> these notes, dan fannin, his price target for goldman 450, for morgan stanley 108. a small 401(k) provider is teaming up with coinbase to offer people a chance to invest in cryptocurrencies. >> you can now get bitcoin in your retirement account. coinbase is teaming up with 4 us all. they'll offer their clients and employees an ability to invest there is a 5% limit so you can't do your entire 401(k). the company has $1.7 billion in assets it is a small chunk of the $22 trillion market. but it's the first company to do a crypto 401(k) offer. one big thing stopping people is volatility bitcoin has lost 35% of its value in the past month alone. back to you.

>> thanks, kate. mike, it's had a good bounce again this week. of course it stops it from being that long-term steady value but it's rebounded quite a few times. >> it's bounced a few times so this 30 to 35 area seems as if it's gaining a little credence people need to use the charts but it's still a show-me situation. just because the break was so severe and there theoretically is a lot of folks willing to sell it at 40,000. in terms of whether you want to stash it in a tax deferred retirement account and never look at it, you would think that would be for just a small sliver of what you own, not necessarily wanting to trade it in that mode. >> you see this news today with forusall, i spoke to the betterment ceo about how they're looking at crypto as well.

erin, i wonder what you think about crypto as obviously not a majority part of your portfolio, but as a piece of the portfolio, where you fall in that conversation as well given volatility there >> i think for a retail investor saving for retirement, i think cryptocurrency is inappropriate. really when you're looking at 401(k) plans, you're looking to build safe assets that can appreciate gradually over time, particularly as you get closer and closer to retirement where volatility with upend retirement savings and retirement plans i just don't think it's appropriate. i think for younger investors who are looking at something as more of a bet and are willing to withstand volatility, it can offer some diversification in portfolios but i think for 401(k) plans, that's not the place to put it and i really do think at this point you're taking a lot of volatility risk with a lot of uncertainty in terms of what the foundational underpinnings are for valuation in an asset class that can go up or down 10% in a

day. that's really for traders and for people who want to make bets, not for investors. >> erin, what's the view on the dollar here, all things considered, including that inflation this morning >> i think we're at a point where given the fact that particularly when you look at emerging markets, they look very attractive for fx relative to the u.s. dollar. the valuation levels are quite attractive we're in an environment where the cyclical recovery is under way, sort of a mid-cycle environment. when you look at the economic outlook for the next year to year and a half, that's an environment where the dollar typically dpreeepreciates i think it will depreciate 5% to 7% and maybe there's a little more upside for em relative to the u.s. dollar but you have to be pretty specific in terms of where you place your bets. but the aussie dollar, new zealand dollar, even the euro

you can get mid-single digit >> are you looking at asset class specifically or steer clear? >> kind of steer clear like the meme stocks because i can't understand the movements the volatility is enormous if i was going to do something, it might be like a trust when fidelity wants to get approved in terms of their etf, you get more diversification and not getting individual asset risk for me it's a no-touch i certainly don't think it's appropriate for a 401(k) when you are trying to save as erin had mentioned. >> steph and erin, thank you both very much for joining us. much appreciated. >> thanks, guys. chuy's results are out christina has that for us. >> it's a beat for the online

pet retailer we were expecting a loss of 3 cents per share. revenues slightly in line at 2.14 billion and the street was expecting 2.13 billion looking going forward the revenue guidance came in between the range of 2.15 and 2.17 billion so slightly, slightly higher than what the street is expecting at 2.13 billion. they also continued to add active users at the end of the first quarter they had 19.8 million active users on their website you can see the share price is down now 2.3%. tonight on "mad money" with jim cramer, the ceo of chuey will join jim. don't miss that. up next liz ann sonders on what today's inflation reading means for the markets and your investment plus the ceo of callaway on how

the rebirth of golf is impacting the company's bottom line. we're back in 90 seconds

this is the sound of change. the sound of a thousand sighs of relief. and the sound of a company watching out for you. this is the sound of low cash mode from pnc bank, giving you multiple options and at least 24 hours to help you avoid an overdraft fee. because we believe how you handle overdrafts should be in your control, not just your bank's. low cash mode on virtual wallet from pnc bank. one way we're making a difference. welcome back record closing high on the s&p 500, up 0.5% yields down to 1.49, 1.48 for the close and yet we did get a 5% inflation print this morning. odd moves off the back of that

print. liz ann sonders joins us to discuss all of this. liz ann are you surprised? i know it's one day's reaction but 5% inflation printing and to see bonds and equities was that surprising? >> just the notion that we were getting a hot inflation number i think has been built into expectations we were certainly right in the base effect piece of it. we know where the hot spots are in terms of both month over month growth, year over year growth what was interesting is what we started to see in the housing components, the traditional rent, owners equivalent rent which collectively account for more than 40% of the cpi so i think key going forward is how quickly can we ease some of the pressures associated with the reopeningsy chain disruptions. as an offset we're seeing a little stickier rise in a very weighty component of cpi

i think the market has keyed off of what the bond market is saying about the near to medium term of inflation and with a stable 10-year yield i think that's very important for the stock market to key off of. >> is the bond market not only is inflation going to be transitory but perhaps this rebound in growth might be somewhat transitory too? and if so, what does that mean for the outlook of the s&p 500 >> yes, the bond market may be reflecting what is a very high likelihood that both in terms of overall gdp as well as s&p earnings, q2 is the peak growth rate not peak growth in level terms but the peak growth rate that historically has meant you tend to see a leveling off in metrics like the 10-year yield you also tend to see a bit of a change in leadership and some churning i think to some degree that's what sits behind some of this latest rotation, which has been

ongoing for longer than that but yeah, i think the peak growth rate story is part of what we're seeing recently. >> liz ann, how does this tee us up for the fed meeting next week and the beginning of taper or at least beginning of talk of taper? >> so i'm guessing there won't be much of any formality in the statement but i'm also guessing in the press conference powell will be forced to address a lot of questions so maybe we get a sense that there's the telegraphing of the telegraphing maybe nothing formal at the june meeting. maybe hints about formality coming at the july meeting, which of course would just be telegraphing what might not likely be any change to the balance sheet until something closer to year end that's my best guess at this point a week ahead. >> what's your take as to how people are positioned at the moment, liz ann? have we seen during this three

months of markets moving sideways people become a little bit less aggressively positioned such that we're set up for a bit of a break higher? >> it depends on what people you're talking about i think the day trading crowd in the meme stocks i wouldn't suggest that they have gone to more defensive positioning many traditional investors, retail investors that aren't those day traders, even some institutions, yes, there's been a bit of a move back to what really was the pandemic era's defensive stocks, which also happened to be some of those classic growth stocks. you know, you certainly see it today, a move back into tech, a move back into health care and i think that's also to some degree a function of what's happening in the bond market we've actually seen the 10-year yield newly develop an inverse correlation to the tech sector and in the case of, say, the 1990s, the last time we had a

long period of a negative correlation, that was a period where yields were going down so city council talks were still going up now a negative correlation means if yields go up, tech stocks go down the fact that we've seen a settling in the bond market i think has keyed some investors to move back into areas like tech and health care, those traditional growth areas. >> given the entire conversation we'rehaving right now and this idea of peaks, are the best opportunities for an investor in the u.s. or is it time to look i guess more aggressively abroad >> in early january this year we actually shifted our bias toward developed international large cap stocks over u.s. large cap stocks and we do believe that when you -- when you're exiting what i like to think of as a dual cycle, you're entering a new cycle for both the market and

the economy, those periods tend to usher in a change of leadership we felt that that change in leadership at the very broad asset class level was likely to be toward non-u.s. we've always had the valuation support for non-u.s. versus u.s. but now many of the fundamentals like the trajectory of earnings growth is better in places like europe than the u.s. so that was the most recent broad positioning change we made in terms of our technical recommendations. >> liz ann sonders always great to get your insights thank you for joining us. we're getting some news on american airlines now. for that we turn to phil lebeau. >> looking at american airlines, the company announcing it is taking place in a spac for a company that is going to be manufacturing ev talls, that's electric vertical takeoff and landing. it is called vertical aerospace and there is a star-studded

roster of companies backing this spac avalon, american, honeywell, royals royce, virgin atlantic. american also can make the buy 250 ev talls from vertical aerospace. altogether they say they hav orders for 1,000 which they expect to enter into commercial service in 2024. so you've got american with vertical aerospace, you've got united with its investment in archer aviation, and you're going to see more of this where airlines are taking a stake in these companies that are starting and manufacturing or plan to manufacture ev talls g guys, back to you. >> we just hope very, very good reliable batteries when it comes 2024, not too far in fact, when it comes time to take off with those, phil. thanks so much, phil lebeau. let's get over to mike for a

look at passive versus active flows of late, mike. >> it's been pretty much in place for a long time. this shows you the last dozen or 13 years cumulative net flows in passive funds going straight higher. actively managed funds just the flip side of it. what does this mean? well, the market gets this close to half of u.s. domiciled assets being impasse i've. it doesn't mean just s&p 500 but index capturing products look at the performance of blackrock which is, roughly speaking, more on the side of passive or at least low cost broad scale type asset products. it's an affiliated manager which is a collection of actively managemented management firms. this is a five-year so you see which way it is going. also this has been a much more aggressive pace of increase in the last several months. it suggests that maybe there's an opportunity opening up for active

some of the performance numbers so that. sometimes it's value outperformance also bank of america point out when hedge funds are building positions and increasing exposure to certain stocks, those stocks tend to outperform for a while. i did it's less obvious that the s&p 500 as structured right now is built to outperform the majority of active managers going ahead. obviously that prediction has been proven wrong before, guys. >> yeah, we'll have to see the next few years of trends in that area. callaway golf has been a big pandemic winner as more people took up the sport. shares are up over 100% in the last year. next, the ceo on whether that can last now that the economic reopen is creating other recreational options. plus we'll discuss the outlook for oil prices with the ceo of denbury that's still to come here on "closing bell.

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, aren't just made for traders—they're made by them. thinkorswim trading. from td ameritrade.

welcome back shares of callaway up nearly 18% since reporting q1 earnings in may. the company seeing strong growth in sales of golf clubs and balls up more than 50% year over year.

jeffries calling the company a number one company saying the rebirth of golf is real. another one for callaway, staff pro phil mickelson recently bringing home a pga trophy and making history in the process. callaway golf ceo chip brewer joins us now chip, welcome to the show. >> thank you, morgan pleasure to be with you. >> so we have seen the pandemic be a real boon for golf of the does that demand continue to sustain or moderate as the economy opens up and people start to do more things and spend money on other types of services and events. >> morgan, you're exactly right. it has been an incredible positive boon for golf we're seeing demand as we've talked about in our previous communication, you know, up 50% vis-a-vis historical numbers back in 2019 more people are joining golf courses. more entrants to the game. new consumers. and we think the long-term

trends are going to be quite attractive without a doubt the market is going to be larger coming out of the pandemic than it was going in. >> and we were having this conversation in the last hour about the shift in consumer spending from goods to services. you just merged with topgolf not that long ago as well. i wonder how you are going to be able to or how you are leveraging that as you see that shift among consumers? >> well, that's another just fascinating and really attractive area of our business now. so we're just not a golf equipment company. it's the roots of the company and how we started, but we have a very strong apparel business now and this topgolf business, which is candidly high growth, very exciting business segment and the elements of the business all work together. we have the largest audience in

golf now of any publicly traded available competitor and a competitive vadvantage in how we're going to be reaching all types of golfers from topgolf golfers to people using top tracer range to our legacy business in the golf equipment space. they all work together and they were also kind of support each other as topgolf is going to be providing a great growth boost to the game in the future years. >> chip, morgan mentioned phil mickelson's incredible recent victory. have you spoken to him since that >> i've been texting back and forth with him i haven't spoken to him yet. we werobously thrilled he made history and moved to legend status. so happy for him and also how

great for golf, right, in that you've got a 19-year-old who just won the women's u.s. open and a 50-year-old who just won the men's pga. it's a lot of tailwinds behind the sport right now. >> so great for golf, i quite agree. how great is it for callaway what level of difference does it make i know you're having quite a good tour across other players depending how you break it down this year. >> tour is an important element in golf and how you build your brand equity, right? building brands is a complicated equation tour is one element of that. and you are right, we have had an incredible run on tour this year with multiple victories you know, a lot of usage across the tours. phil's weight is a little

special, though. he is our most significant brand ambassador, closely associated with it. and he's the only one, when phil wins, we see sell-through really spike. and so he's -- he's unique he's the fan favorite and talks about dropping bombs and kids around and a great social media presence so i'm confident it was very good for the game of golf, great for phil and also for callaway >> that's interesting, it's like a phil mickelson bump. i am curious, though, as you talk about catering to more, newer, growing folks coming to the game of golf on the equipment side, the resale market has been pretty hot and traditionally golf is a pretty expensive sport to play what are you seeing in terms of resale, and is that a competitor or is that an opportunity for

callaway >> well, i think the fact that there's more avenues to get into the game has to be positive, right? so you go to top golf and it's an inexpensive way to get exposed to golf. that did not exist previously. you get hooked there it's a great business in and of itself and then, you know, 75% of those that visit topgolf that don't play traditional golf say they want to play traditional golf because of that experience so it's almost a flywheel effect of creating new golfers. again, we'll be participating in it on all aspects of that and have a competitive advantage in the reach and scale of our overall business, but also specifically direct access to those golfers. so i just don't see how it's

anything but positive for the game of golf and anything but positive for callaway. >> chip, thanks for joining us today. chip brewer. >> thank you coming up, jon chu, the director of the new film "in the heights" on how the new hybrid model of releasing films in theaters and streaming at the same time is impacting the movie industry [mus ades in] [voice of female] my husband 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”] ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪

♪ ♪ ♪ ♪

“cracked windshield” take 1. ♪ you say ♪ ♪ i got a crack in my windshield... ♪ uh - uh, lisa, maybe less heartbroken? geico lets you file a claim online, over the phone or with their app. ♪ that makes me wanna say... ♪ ♪ stay... ♪ (sniffles) are...are you crying? uhh, there's pollen... geico. great service without all the drama.

time for a cnbc update leslie picker has it for us. shipments have been temporarily halted of johnson & johnson's covid vaccine according to "the wall street journal. states are already sitting on millions of doses, some of which nearing their expiration dates, but health officials now have more time to administer shots after the fda extended the shelf life of the vaccine pby six weeks. fbi director wray getting slammed for not doing more to stop the insurrection on january 6th. one lawmaker calling it an intelligence failure wray said the fbi has made nearly 500 arrests since the riot. on the news tonight, what the fbi is doing to stop ransomware attacks like the one on colonial pipeline and what companies can do to defend themselves a key reservoir on the colorado river has fallen to a record low amid an ongoing drought. lake meade, formed by the hoover dam, is expected to keep following until november

it supplies water to 40 million people across the west back over to you guys. >> leslie, thanks so much. up next, the ceo of energy exploration company denbury on how much oil prices can go higher and wthheer the industry can convince investors that it can be an esg play how do plastic bottles turn into this? wm and repreve have given new life to over 20 billion plastic bottles. and we're just getting started. see how recycling is one of the many ways wm is always working for a sustainable tomorrow at wm.com/stories.

if you're 55 and up, t- mobile has plans built just for you. switch today and get 2 lines of unlimited and 2 free smartphones. plus you'll now get netflix on us. all this for up to 50% off vs. verizon. it's all included. 2 lines of unlimited for only $70 bucks. and this rate is fixed. you'll pay exactly $70 bucks total. this month and every month. only at t-mobile. ♪ ♪ brother against brother. get in. [ ominous music playing ] this should be interesting.

welcome back no sector of the market has been hotter than oil an gas this year the s&p energy sector up 41% but the hottest oil and gas stock has more than tripled. that's right, it's denbury and shares are up 170% one reason is they are trying to turn an oil and gas company into an esg play. brian sullivan is at an energy conference in houston appendicand joins us now with the ceo. >> listen, you talk about oil and gas, esg people out there i can feel you now, you're rolling your eyes into your head but you guys do have a unique model. carbon capture, enhanced oil recovery don't go into all the it inny dw -- nitty-gritty but tell us

where you are different. >> we are absolutely unique in the industry what we started with is called enhanced oil recovery which is using carbon dioxide to get more oil out of existing reservoirs we worked on that over 20 plus years and built a huge infrastructure for building co2. we built this great expertise for building things that need to move and inject co2 and knowing where it goes underground. we've taken from from eor which is interesting and delivers a negative carbon barrel when we use industrial co2 to get the oil out, all that infrastructure, all that expertise, we can apply that to carbon cam tour, taking co2 out of, pumping it and putting it underground permanently. >> i asked you earlier, if it's such a great idea, why doesn't

everybody do it. you said they can't. >> well, they can, but they can't today. as you think about where the industry went over the past ten years certainly, this little piece of the business, enhanced oil recovery, we were the only ones in the public stance standing out there doing this. so we have the assets when others moved on to do different things when you look at this world, capturing carbon is more important than it's ever been big scale. and our ability to do that moves us right into the center of that we have 900 miles of pipeline right on the gulf coast, right with the main emitters between new orleans and houston, and the pipeline is high capacity -- >> and it's yours, nobody else has it. >> we own it 100% and it's the backbone of everything we want to do. >> you said 250 million of free cash barrel and $60 barrel what does $70 a barrel get you

>> for every $5 or so of incremental oil that we -- oil prices that we see, we get significantly more cash flow it's a really beautiful cash flow machine what we think about in the cash flow that we'll take from where we are at 60 or that much more at 70, we can focus those investments on how to be big in carbon capture and make a big difference and really what's needed to happen in the world. >> there you go. chris kendall, denbury, thank you very much. it's nice to be back is wonderf. >> wilf, you sending me to houston. it's 147 degrees outside by the way. this company, nobody has done better, up 177% year to date carbon capture, underground storage, wilf. get to know it, love it. >> we will thank you for making us more aware of those details

brian and chris, thank you very much for that. we've got some breaking news of another cyberattack eamon javers has that for us eamon. >> yeah, this is one to pay attention to the hack is just confirmed for us by the company. it's a small government contractor called sole orions. they are a subcontractor for the national nuclear security administration, which is a division of the department of energy this is a company that posts job postings for recruits to come work for it that work on nuclear weapons, so obviously this is a sensitive intelligence and classified information centric company. now, they have given us a statement confirming they had a cyberattack back in may. they're confirming that now and saying that attack is ongoing. we can pull that statement up and tell you what they are telling us they confirmed they have been under attack and they say it is important to note that based on

the investigation to date, we have no current indication that this involves client classified or critical security-related information. once the investigation conclusion, they say, we are committed to notifying individuals and entities whose information is involved as quickly as possible and in accordance with applicable laws. so the company here again is called sole orions this is a cyberattack that happened back in may that they first noticed and they confirmed that to us today they say that they will notify all of the appropriate authorities if and when they discover anything sensitive has been taken. >> it's another startling piece of news on the cyberattack front especially when you realize the entity in the doe is focused on nuclear science. still ahead, lin-manuel m

mir miranda's musical "in the heights" is now in theaters and streaming on hbo max up next, director jon chu on the new hybrid release model and his take on the amc meme stock frenzy stay tuned the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. (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. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

welcome back tony award-winning musical "in the heights" makes its hollywood debut today. it will be released in theaters and available for streaming on hbo max. i caught up with director jon

chu and asked him about how he transferred the story from stage to screen. >> everyone has their own interpretation about what a musical should be. i'm not the musical expert to say this is how you're supposed to do a musical. but for me music spoke to me it spoke a language that i couldn't put into regular words. and so when i look at a musical trying to transfer it to a screen, i try to go back to the source like why do they break out in song at this moment? what emotion are they trying to express? and "in the heights" we tried to take that idea and extend it beyond just movement and sippinging we said if the environment needs to change, then so be it because that's the medium in which we're at we're expressing emotion through other languages than just dialogue so that's what we tried to stick to i think if we stayed true to the truth then there, then you get

something. >> you also directed and came to prominence with "crazy rich asians." both are clearly bringing a higher pedestal to american-asians on one side and latino americans on the other side do you think hollywood is at a tipping point for embracing diverse films and diversity more broadly in a good way or i there still a lot to be done >> i think there's a lot of noise outside everywhere banging on the doors saying things have got to change. i'm not sure that hollywood has a consciousness to change. the way they change is through the box office, through hard cash, through smelling where the money is and so i think it's really important that with "crazy rich asians" i saw it happen firsthand. as crass as it is, when people showed up at the movie theater to say these people are worth our time, our space, our money, then i know that everything changed. >> what do you make of the hybrid release model, both in

theaters and at home at the same time, do you hope that is only something that really lasts in prominence during the pandemic or do you welcome that optionality for viewers in the long term? >> i grew up in the silicon valley, so i love being around disrupters, being a disrupter. i do believe there's a place for cinema i believe cinema has a different type of entry point for people to give space to something. i believe it can really change culture. i believe a two-hour movie in a dark room has a profound effect. having a two hour movie at home while you're busy, it's a different intake i love streaming i watch streaming all the time and this, when we were going to be on both, i -- it took me a moment, but i love that people need to see stuff no matter where they are there's so many stories to tell. i hope this is another avenue

for new filmmakers and continuing to tell their stories. i do believe the big cinema screen, we want to bev together, after a year of isolation movies are the place to do that. >> is a factor that could be make or break for your future and career once we're well out of the pandemic. are there certain projects you would only work on if the studio guaranteed a dedicated release window just in theaters to start off with >> maybe we'll see. everything is changing month by month. i do know that i have -- i'm dedicated also to telling stories. whatever medium that is. if that's a commercial than we'll do that. it's a streaming -- if it's a longer form, and we need the space. streaming is an amazing place to do that. we have resources that just don't make economic sense for a theater, then so be it, the stories still need to be told.

i think of it more as a story-first more than media-first perspective >> on the media front we discuss streaming services a lot on this network and are you following the craziness of amc's prices it something you and colleagues follow or not really >> i think people are following it i haven't been following it as much in the last week or two, which i've been sort of lightly looking at it. i've been trying to get this movie out but i think we're all paying attention to the business, it's a huge integrated part of what we do i can make "in the heights" the movie and nobody could see it but i need warner brothers and at&t to get it out to people, i need their resources to tell them these people in washington heights are worth the movie. there's no small stories a partnership has real power

can't ignore the corporations to help tell art when the marriage of two make a difference lining "crazy rich asians". >> we have a final quick question i know you're in the midst of promoting "in the heights" so you're not allowed to say her name "in the heights" as an answer to this question but what is your favorite musical of all time. >> of all time, man, you're putting me on the spot of course hamilton has a huge place in my heart. of course joseph and amazing technic color team coat and meet me in st. louis has a place in my heart but i'd say "singing in the rain" when i was a kid i was like, man, musicals are the shiznits. >> as i said earlier, don't miss him. what's your answer to that final question mine as i discussed off camera, fancy the opra, no doubt about

it >> i kind of respect that, really okay i've seen that couple times on broadway i think i've been to almost 150 shows on broadway. so it's hard for me to choose one because it's almost like choosing between children. i would say my two all-time favorites are "evita" and "rent". >> there we go see that ♪ >> andrew lloyd weber the common theme. >> that was great. much more on the look ahead and what we're looking at for tomorrow's session stay with us and i helped raise my younger brother. when college felt out of reach, the kpmg future leaders program was there for me. it was more than a scholarship. it was four years of mentorship and support. today, i'm an investment banking analyst and i'm just getting started.

the kpmg future leaders program. empowering young women to reach their potential since 2016. the lexus es. every curve, every innovation, every feeling. a product of mastery. get 0.9% apr financing on the 2021 es 350. experience amazing at your lexus dealer. today, global markets are challenging traditional assumptions like never before. there is a new, accelerated sense of responsibility, sustainability, and social equity. at nasdaq, we call it the "era of impact." and we're at the forefront of it. innovating technology, data, and insights to help you deploy an esg strategy to be seen

as the company you aspire to be. announcer: xfinity wants to send you to universal orlando resorts' three incredible theme parks.

where you could feel the rush of the hunt on jurassic world velocicoaster, opening june 10th! plus, you'll stay steps away from the action at universal's cabana bay beach resort. to enter just say "universal parks" into your xfinity voice remote, or go to xfinityadventures.com for your chance to win! well, tesla's highly anticipated model s plaid delivery event is set to happen pretty late tonight, phil with the preview. >> hi, morgan. 10:00 eastern is when it will be streamed from the tesla plant in freemont, california it will be the fastest production vehicle ever, the plaid goes 0 to 60 in 1.99 seconds. the steering wheel is more like a cockpit of an airplane it's getting a

lot of attention it has enhanced options, you can do karaoke in the car, as they refer to car-eoke. the price $129,990 rare air when it comes to tesla, i'm sure they'll by the plaid. you have lucid air starting deliveries in the next couple months and the porsche tie can, sells steadily marching higher in the united states and around the world. not to model s levels but a serious threat for tesla the upper end of the ev luxury space more competition coming in, that's why the model s plaid will get a lot of attention. any time you see elon in one of these events, he's subdued on

the conference call but at the events if there's a crowd you see people whipped into a letter. >> maybe he will break into karaoke for us, i wonder what song elon musk would pick. singing along with the music while driving. >> they've made it clear they can route things through the entertainment screen but not while you're driving although, you hear people all the time saying look if there's a way, if there's a screen in a car somewhere i will figure out a way to stream a video if i need to stream a video, not just with tesla but a number of res, we hear this all the time. >> phil le b eau thanks for joining us. >> you bet. >> mike, a quick thought from you as we finish the hour.

>> we've been flipping up and down days, been a real grind michigan consumer sentiment tomorrow see if there's any wrinkles in that and changed the attitude of consumers. >> we're out of time thanks morgan for helping out. that does it for "closing bell." "fast money" starts now. live from the nasdaq market site over looking new york city's time square this is "fast money" i'm melissa lee tonight's trader lineup guy adami, dan nathan, tim seymour and pete najarian. tonight on fast diamond hands get tested, clean energy clover health and amc falling hard on growing fears of a coming crack down. is the s.e.c. about to take aim and are they even aiming at the right target plus trading the builder break down home builders falling got traders scratching their heads for digging in on this move and later, more room to run, one