kind of scrambled and adjusted their pay packages to make sure ceos were compensated fairly and employees were compensated fairly but now they're feeling the brungt ot of that. actual stock prices haven't suffered so people were wondering whether those adjustments were really needed >> right it might seem more out of whack than ever. ty. >> all right, folks, thank you very much. ladies have a great weekend and we'll see you next week. "closing bell" starts right now. thank you very much, tyler welcome to "closing bell." i'm michael santoli in for wilfred frost. investors await next week's fed meeting. the volatility index is touching a 52-week low today. >> and i'm courtney reagan in for sara eisen let's look at what's driving the action 10-year treasury yields slipped to a three-month low of 1.43%

earlier in the session but have since recovered from those levels that's well below the recent peak in march. an early read on june consumer sentiment coming in before estimates but the report from the university of michigan did say rising inflation remains a top concern for consumers. and small caps are outperforming. the russell 2000 up 2% on the week we've got about 59 minutes left to go in today's trading session. >> coming up on today's show, it's been another wild week for the meme stocks with names like wendy's and clover health getting their turn in the spotlight. we'll speak with the founder of tastytrade and why he says traditional investor theory is dead. we talked about the strength in the housing market but redfin ceo will join us and explain we will join with the tension between washington and

big tech as details about a handful of bills targeting the mega cap tech companies. julia boorstin has the latest for us this will be a test on the notion that there is all bark and no bite, i guess >> well, yes this is definitely a big deal. house lawmakers led by antitrust subcommittee chairperson david cicilline introduced five antitrust bills. each bill has a republican co-sponsor which notably improves the chances of the bills passing. the bills could have long-lasting implications on apple, amazon, alphabet as well as facebook, targeting their business models and potentially making it easier to break up the companies. now, there are two key areas in focus. first, tech giant's ability to prioritize their own products and services one of the bills would make it illegal for google to prioritize its shopping or travel search

results in those broader search results or amazon private products, such as apple music compared to others like spotify. another bill would empower the doj to break up tech companies if their business models pose a conflict of interest second, the bills are targeting the scale of these tech giants, making it much harder for the tech giants to acquire any competitors and raising fees on m & a to better fund the ftc as well as the doj's antitrust enforcement. these proposals still face challenges before they could be implemented but they do represent a very ambitious and also bipartisan stance here on these antitrust issues guys, back over to you. >> julia, we've been talking about these potential antitrust issues for some time now, so of course all of these companies have teams and teams of lawyers that have been working through their arguments. do you have any idea what some of their response will be to a

lot of these areas that are in question now by both sides of the aisle? what would google say to some of these questions about prioritizing its own products and search results >> look, these are issues that have been raised by a number of lawsuits in the fpast a lot of companies feel like they're addressing some of these underlying issues. we're seeing this battle play out in court between epic and apple. epic saying that apple is unduly using its power in the app store to mandate that they pay these fees so i think a lot of these issues are already out there. what's interesting about this proposed legislation is there are so many bills here, each atropical addressing the issues from a different angle. so what does this mean in terms of the long-term planning of these companies? if you as facebook can't make

any acquisitions, are you better off spinning off these divisions. so i think there's questions of sometimes this raises the question of whether these assets are worth more when they are separate which is something analysts and investors have talked about but certainly the fact that it is a bipartisan push is very notable, although there are still hurdles ahead. >> absolutely, julia even if you look at a company like amazon, we're always talking even seinternally at cnc is it a media company, a technology company, it does all of those things and the stock price has to factor in all of that julia, thank you very much for joining us with the latest. we're going to turn to the broader market and the s&p 500 remains near all-time highs. any close in the green would still set a record mike, what are you watching in today's session? >> it's a little bit of a low gear type grind. we're inching higher the market is holding together we have constant rotation. growth is doing a little better

as yields have been suppressed but really it looks like this extended trip steextending the h end of this range. it's going on eight weeks right now. it's much less dramatic than what we saw right here back in the fall a similar two efforts to break down and did not do that and we did grind to new heights momentum has flagged so it's a question of whether you have the energy volumes have been pretty low but i think there's a lot of comfort in these levels. look at some of the thematic currents underneath the surface. quality, good balance sheets, big cap, high profit margins this is a quality etf and over a one-year basis it's overtaken the momentum etf what's fascinating here, the momentum etf has had a radical revamp because they turn over their holdings a couple of times a year right now it's about 30% financials it's underweighted in tech, 18%

tech, whereas quality is very much mega cap nasdaq names, technology and health care the question is are we entering a phase where economic acceleration eases back and quality can distinguish itself for a little while you mentioned amazon and how it has multiple natures, courtney take a look at amazon compared to the equal weighted version of consumer discretionary amazon dominates the regular consumer discretionary category but if you do it equal weighted, it's been a massive outperformer but amazon all of a sudden has gotten some traction here. that's in green. you see how it's gotten this little slant higher and you have consumer discretionary suffering a little bit as i often point out, in orange here is the cloud etf. really in terms of the cadence, amazon has traded much more with cloud. that seems to be a big driver of the valuation multiple as the retail business plugs along. so we'll see if this proposed legislation or anything else changes that story. >> if for some reason amazon was regulated in a way in which they

had to separate those businesses, aws and retail, that really changes the game because aws of course powers so much of retail when it comes to running the business. >> the conventional wisdom says it might be worth more separate, but you'd have to have a real test of that notion here it does seem as though there's a lot of symbiosis. wall street is waiting for more following yesterday's hot inflation number steve liesman has more on this friday afternoon hi, steve. >> hey, courtney the line at the fed is to stand pat in the face of this current inflation surge because the fed thinks the surge will be temporary. but there is some speculation that the fed in its statement next week or perhaps a statement by fed chair powell at his press conference will note diligence about inflation that is above expectations

krishma guha says we think policy makers view starting tapering discussions sooner rather tan later as a way of safeguarding inflation expectations against a possible upside surprise in the months ahead. some believe the fed should go further. one writes if there was a monetary hippocratic oath, its first tenet should be do no harm why is the fed still easing at $120 billion a month the 10-year benchmark has done nothing but rally since the jobs report on friday and the raging 5% cpi report yesterday which extended that rally. as yields which move inversely to price pfell to 1.46 as it stands now, strong growth in the second and third quarter looks to be baked in the risk arrives later this year or early next when the fed could be taking stimulus away. as fiscal stimulus runs out, it would be worse if it does so in the face of still high inflation. courtney >> thank you very much, steve.

you brought it full circle do no harm, i think that's google's oath actually. up next, driving towards an ipo, chinese ride-sharing giant didi outlining plans to roll into the public market we'll discuss with an early funder of lyft coming up next. you're watching "the closing bell" right here on cnbc 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.

welcome back didi officially filing to go public and revealing new details about its financials deirdre bosa has that story. >> well, didi perhaps best well known for defeating uber in china years ago. its financials that we got yesterday made clear how important that defeat has been to its narrative it essentially became a monopoly in china after that and has better allowed it to spend big on other initiatives, like logistics, autonomous ev development even financial and auto services, making it more of a super app. remember, those are areas where uber has actually pulled back.

so if you are an investor looking for more of a complete mobility platform, didi may fit the bill better. at the same time, though, guys, market haven't been very re receptive to bride shride-sharig broadly. lyft prices are $72 a share. so didi is still losing money, lots of it, and also getting into food delivery there's the china risk going forward. regulators over there are cracking down on monopolistic practices and didi has already been caught in the crosshairs. courtney, mike, we saw recently with ant group how quickly regulation in china can hurt even a homegrown company's prospects. back to you. >> yeah, for sure. wild card. thank you very much. let's bring in santos ralph from manhattan venture partners to talk more about this.

he was an early investor in lyft what about some of these issues of trying to contrast didi along with uber and lyft when uber and lyft came public, everyone was mostly focused on the big picture opportunities now it's more the specifics of the business model how does didi stack up based on what we know >> yeah, unfortunately for didi they're coming at the wrong time there were rumors that they might come out before lyft at that time in 2018 or '19 but i think there was no -- there was no comp at that time so the price was much difficult so they got the benefit of uber and lyft but they will go through the scrutiny they have so many issues to sort out. their valuation will reflect that it's going to be moderated because of that. there are a lot of issues, regulatory issues and all that at the end of the day setting that aside, it is the biggest one in the biggest market so you can't deny that. if you want to participate in

another big cap pure play in china, this is a great opportunity but you really have to be careful. don't expect the upside that you got with uber and lyft in the beginning. of course they pulled back after the ipo but now they are on their own. people have seen what works, what doesn't work, what they need to sort out so they have times they can correct the mistakes that others have made. >> but does didi enjoy any advantages in terms of the economics of their business because they so dominate the market, whether it's how much they have to subsidize rides or anything else that might make them better positioned and actually scale more efficiently than uber and lyft do? >> yeah, i think they do because they pretty much control the market they just have to be careful with the regulators. other than that, i think they drive the market so they have all the benefits they are in adjacent markets and in 14 countries. so you have the optionality of investing in a global player

so they are essentially in every major ride-hailing country they will capture the scale once they sort out the hurdles of the regulatory and all the other issues if they can show a path to profitability, which they appear to be showing, this quarter was good, i think they're on a good trajectory going forward. >> that was exactly my next question was that path to profitability because i believe they did post a profit at least in the first quarter do you believe that's sustainable or was that a bit of an anomaly >> no, i think it was an anomaly more driven by investment income it will take a while the number they reported is the gross number so assuming a 20% take rate, which is what uber and lyft have, some operators -- let's take 20% so if you have revenues of $4

billion and that reflects the unit economics of china, even though there are less total users, it is not less than uber because the u.s. is highest in unit economics they have a path to profitability. they can show it, need to control that and they'll do it i think they have more time than the others they don't have any competition at this point so they have to carefully methodically show that they can reach that. >> a lot of us this week read this "new york times" piece that resonated about how the lifestyle subsidies so to speak from a lot of these companies, a lot of these consumer apps like airbnb, doordash, as well as uber and lyft might be expiring because the business models require that they charge more. they don't necessarily underwrite a lot of their consumer acquisition so is the game changing? how do you think about that with regard to new investments you might make and is it going to be

ending the party for consumers to a big degree? >> yes, to a large extent. i think uber and lyft needed to do that. they needed to show that it works. just remember, owning a car is almost part of it. everybody wants to own a car and drive a car. they had to change minds, change lifestyles it took a long time. uber raised $24 billion and lyft raised $3 billion. they knew it was going to be a last man standing story. so it was good it was great while it lasted now the party is over essentially and the pandemic pulled it forward. so i think going forward, you're going to see some equilibrium. their value proposition depends

on being better than the other options out there. at one point they will get equilibrium but at an elevated level. they need to do that to get to profitability. if not the business model does not work. >> all right maybe good news for investors, not so much for consumers, people ordering food, that sort of thing santos, thanks very much for your time today. about 40 minutes left before the bell you have still very calm markets here the dow is down 27 points, the s&p 500 is up less than 2 points although pretty much right at those record levels. up next, elon musk rolling out tesla's luxury version of the model s last night and it comes with a pretty hefty price tag. we'll hear how the tricked-out car fits into musk's vision for an electric future. speaking of tesla, that name is on top of the top search tickers list along with the 10-year yield, amc, gamestop and apple. we'll be right back.

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crank it all the way up. yeah! ♪ ♪ get some! sorry! ♪ ♪ sustainable energy cars can be the fastest cars, can be the safest cars, can be the most kick ass cars in every way and that's why we did the plaid. >> that was tesla ceo elon musk last night unveiling the new model s plaid with a starting price of just under $130,000 it is the most expensive vehicle the company sells. musk also touted the car's 390-mile range and acceleration

from 0 to 60 in under two seconds. the first 25 cars are already in production and set for delivery. musk says the model s plaid is on track for several hundred cars per week aiming for a thousand per week next quarter even after just mentioning before the break that it's a hefty price tag, people on twitter are saying no, no, no, no it's competing with cars that are five and ten times the price because it is such a high performance car. you're talking about the porsches and ferraris and things like that. >> that seems like an expensive car to me. >> yeah. >> i'm also surprised that the stock price didn't move much on that unveiling at all. >> it didn't i don't know if that's because sentiment is we knew this was coming and it's already a huge market value so how much is a thousand cars per week incrementally even at this price point necessarily going to be the thing that takes the stock to the next level. the stock has had such a run,

even late last year before it was entered into the s&p 500 it was at 400 and we thought it was high then. >> it just seems so logical for tesla, a company whose shares move on things that are much less logical than the unveiling of a new vehicle. >> perhaps something like maturity. >> something like that still to come on the show, one of the first covid era cruises is already facing a health scare onboard we'll bring you the details and then we'll discuss the fallout with the former fda commissioner, dr. scott got leeb. as we head to break, here's a quick check on bonds the 10-year now rising off of the low levels stick with us, "closing bell" is back in just a moment. retirement income is complicated. as your broker, i've solved it.

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we've got about 31 minutes left to go let's check on some individual market movers. shares of zoom video moving higher after rbc named it a top pick it had an outperform rating and $450 price target. zoom continues to show strength, strong growth, driven primarily boy a hybrid work environment. that stock is higher by more than 5%. shares of chewy dropping despite posting an earnings and revenue beat last night. they warned of supply chain issues and challenging labor market conditions saying out of stock products are a bigger headwind this year as compared to last year that's pressuring the stock. shares of that stock are down more than 5% time now for a cnbc news update with leslie picker. >> here's what's happening at this hour. u.s. attorney general garland says recent audits of the 2020 election results may violate civil rights of voters several states' new election laws are also be examined. >> accordingly, today i am

announcing that within the next 30 days we will double the division's enforcement staff for protecting the right to vote we are scrutinizing new laws that seek to curb voter access and where we see violations, we will not hesitate to act >> the house of representatives has ended its mask and social distancing requirements for vaccinated people, including on the house floor and in committee rooms. a democratic aide says the move is possible in part because 85% of capitol hill personnel have been vaccinated. and in britain, the main doctors union has joined the call to delay easing pandemic restrictions it cites the growing prevalence of the delta variant of covid-19 and three and a half month high in daily new cases and a tripling of the seven-day average in new infections since mid-may. mike, scary stuff over there >> it sure is, leslie. thank you very much. we have a market flash

actually with kristina partsinevelos and it's a new eruption out of memeland. >> it seems like we can't keep track of all these stocks but there's another one we're keeping a close eye on and that's senseonics. they focus on glucose monitoring the stock is getting some renewed attention because like you said the reddit crowd has been i guess encouraging each other to buy into the stock. the share price is climbing, 6% higher but it's up 100% in the past month bringing its year-to-date gains to over 330%. and although we're seeing it off its session highs today, the volume is just off the charts. it's already done more than 500% of its 30-day average. 137 million shares exchanged throughout the day just today and it's friday, right so we'll continue to keep an eye on this. we always these updates with these meme stocks.

today it's senseonics. >> $1.6 billion market cap more than 20% of the float is sold short so that's part of the formula for a lot of these names. thank you very much. we have just under 29 minutes, about 28 minutes left in the trading day here's where we stand. dow industrials just below the flat line. s&p 500 just a particular above, nasdaq outperforming and the russell 2000 coming back from losses yesterday, up 0.8 of 1% royal caribbean in rocky waters after two passengers on a ship test positive for covid we'll bring you the details on that story and the impact it could have on the broader reopening when we talk to pfizer board member dr. scott gottlieb. june is pride month. all week long we'll spotlight people here is "new york times" columnist jim stewart. >> i grew up in the 1950s. being gay, a, didn't exist or,

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royal caribbean in rough waters today after two passengers on a ship tested positive for covid seema mody has that story. >> despite sailing a fully vaccinated ship and having passengers test negative before getting onboard, two passengers did test positive for covid toward the end of the cruise this is the celebrity millennium, the first north american sailing in over a year, operated by royal caribbean. the crew started in st. martin last saturday, included stops in barbados, aruba and on the way pack to st. martin where passengers will disembark tomorrow i talked to the royal caribbean ceo who said the important thing here is the two cases did not turn into an outbreak. all close contacts of the two positive passengers tested negative that shows that the cruise line's protocols from isolation

techniques to frequent testing are working. so far no reaction from the cdc. barring any other issues, royal is planning to resume u.s. sailings this summer, starting with the celebrity edge in two weeks out of ft. lauderdale. disney's dream on the 29th, carnival vista in is early july from texas we are looking at shares of royal caribbean on track to end the week lower by about 4% >> seema, do you know what happened with the rest of the passengers once these two cases were positive confirmations? did they then all have to go to their rooms? was there new protocols that had to be put in place what happens when you get on a ship fully vaccinated, test negative for covid but then all of a sudden test positive at the ending >> we talk to a number of people onboard including a travel reporter and she said it was just a normal day on the cruise ship even though those two passengers did test positive. yes, there was contact tracing and, yes, every passenger had to get tested other than that it was a good time on the cruise line which

tells you they're trying to ensure that other people onboard, the 600 passengers, their experience wasn't really impacted. >> pretty amazing. seema, thank you very much for more on this, let's bring in former fda commissioner, dr. scott gottlieb he sits on the boards of pfizer and ill lumina and is a cnbc contributor. dr. gottlieb, it's great to have you here on a friday afternoon we'll start where seema left off. how is it possible that this happened if all of the passengers were vaccinated and they tested negative getting onto that cruise did both of these passengers pick up covid at one of the stops? >> that's one possibility. another possibility is that they were incubating it before they got on the ship. i also think that you need to make sure that children are vaccinated around these cruises. at least initially we should be requiring 100% vaccinated cruises in my opinion. i've been part of a panel that made a set of recommendations to the cruise lines i co-chaired that panel with dr. michael leavitt and a number of cdc officials were part of that.

among our recommendations was for aggressive testing, both before the cruise experience as well as on the ships potentially and after the ships got back into the port. we felt that with testing and certainly requiring vaccinations for all the people that come i object to the ship you create a protective people around this experience not 100%, nothing is 100%, but you can substantially reduce the risk that you'll have a single introduction into the ships. if you do have a single introduction into the ships you can substantially reduce the risk that you'll have an outbreak if the passengers are vaccinated and you're doing vigilant testing so i think you can create a bubble around these experiences. it's unfortunate they had this challenge with an early cruise i think the probability of having cases on the cruise ships given what they're doing is low. keep in mind these were two asymptomatic infections that don't seem to have led to any downstream infections so it does demonstrate that the system is working. >> forgive me if i'm misunderstanding this, but if you have one of the moderna or

pfizer vaccines, isn't your chance of contracting covid-19 something like 1% or 2%, and both of these people did and i believe they were rooming together or am i misunderstanding how these vaccines work with the contraction of the virus and a positive test? >> yeah, it's a little bit more than that. the vaccines are 95% effective the effectiveness in an older population will decline over time, so it's not durable. so over time an older population even after vaccination with the mrna vaccines will have a likelier chance of becoming infected certainly an asymptomatic infection. it doesn't mean people will become sick from the infection as best i can tell based on the public reporting these were two asymptom manatic individuals there is a chance you can become an asymptomatic carrier. the risk on transmitting the virus if you've been vaccinated is substantially reduced if people become infected after

vaccination their risk of transmitting the infection is substantially reduced. so the likelihood that you'll have an outbreak on a ship similar to what we saw on the outset of covid, when you're requiring vaccination among the passengers and testing on the ship, i think the risk of an outbreak is substantially reduced. that vacation experience can become a lot safer than comparable experiences, certainly than going to a big city where you'll be interacting with more people who may not be vaccinated so i do have confidence in what the ships are able to achieve. again, i've worked with these cruise lines through that healthy sail panel and also advised norwegian but i have confidence in the measures they put into place norwegian is requiring 100% vaccination so they won't be allowing kids who are unvaccinated on their vessels. >> dr. gottlieb, good to see you. how should we be thinking about what's going on in the uk right now. the medical community there is

advising against toward rushing towards easing restrictions. they have an uptick related to the new variants should we be rethinking things here or are caseloads low enough we can be comfortable? >> the delta variant which is prevalent in indyia, it's concerning it seems to be substantially more transmissable than even b 117 which was the original variant. it may be as much as 60% more transmissable. i think it's unlikely to become a threat here in the united states until perhaps the fall or the winter i think we certainly need to keep our eye on it we have enough vaccination in our population that the mrna vaccines appear to be pretty protectant against that variant and prior protection will provide a substantial amount of immunity against that as well. caseloads are low enough he know, 617 is here, that variant is here, but caseloads are low

enough, vaccination rates are high enough, it's now the summer, that it's unlikely to become a big threat this summer. i don't think it changes the trajectory of the outlook in the near term. it will be a risk for the fall and we need to keep our eye on it that said, in the south as people move indoors to get air conc conditioning later in the summer, you could see isolated outbreaks and superspreader events with this variant so there is some risk but i don't think there's a risk of widespread transmission of this variant at this point. it may be too little too late for this summer. i don't think we'll have the experience the uk seems to be having in the uk while cases are going up a lot, it's still relatively low numbers. the outbreaks are largely around schools and in unvaccinated populations. once their schools let out and once they get their vaccine levels up a little more, they may be able to reduce their risk as well. school will be out here soon too. schools do seem to be a source

of transmission. >> right sort of reassuring there before we let you go, wanted to get your take on the third resignation from the special advisory committee of the fda related to the recent approval of the biogen alzheimer's treatment. what does it say about the process and what should we think about the prospects for this treatment after this >> well, look, i don't have an independent view on this drug. i really haven't sunk into the data if you look back at the guidance fda put out in 2018, the clear statement from the fda in that guidance was in cases where you have a neurodegenerative disease that's progressive, where one symptom is manifest and easily observable, a lot of damage is done, the agency was willing to take a more permissive stance on therapies that prevent progression of symptoms. they want to get products on the market that could prevent progression and offer accelerated approval in those

circumstances. that's in fact what they did here so i think what they did in terms of their decision is consistent with the guidance issued in 2018 they have been signaling this kind of a composition or approach for some time now now whether or not the data in this particular review met the guidelines that were set out in that guidance document, i'm just not sure i haven't looked at it closely enough on the contours of it at a high level it does appear consistent with what the agency has been saying. >> dr. gottlieb, thank you for joining us here. have a good weekend. >> thanks a lot. coming up, shares of snowflake fall and cathie wood osys more coin the stories and more when we take you inside the market zone. 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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with about 11 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. today we've got odyssey capital's jason snipe and nadine turman thanks to both of you for being here let's kick things off with the broader market the dow is barely in the red while the nasdaq is a bit higher the s&p trading just above the flat line at the moment. any close higher for the day for the s&p 500 will be a new record nadine, how are you reading this phase we've been in right now where the broad indexes have gone largely sideways, clicking marginally to new highs. bond yields get compressed a little bit against many expectations and the market seems like it really isn't

responding in a dramatic way to any of the macro right now is it a riskier environment or a more comfortable one for you >> you know, i think it's a little bit on the riskier side those were good points you've seen it flattish today but there's winners and losers if you take apart the sectors. you see some losers on what we call the russ plus h real estate, utilities, staple health care down a lot today so it's much more under the surface you're seeing action and that's what we're looking at in addition to yields, which is interesting because you've got yields down and these bonds-like sectors are down, which isn't usually what you would expect. >> jason, just in terms of the flip-flopping of leadership that we've seen lately, it's actually been a little fickle in terms of deciding what's driving things right here a lot of the cyclical sectors had amazing runs they're off the boil a bit

growth has been in the wilderness for several months but now as a little bit of a bid but it's hard to know what kind of market we're in right now how do you read it at the moment >> yeah, it's a great question obviously you see value has outperformed year to date, it's up about 17%, and growth is up around 8%. obviously we've seen the drawdown in the 10-year over the last couple of years the inflation number was hot as was expected for me, i paid attention really in looking at the rsp which is the equal weight s&p index and that's up 19%. so i think the barbell strategy is the strategy for the second half of the year clearly growth has had a big year with yields pulling back some. >> snowflake shares are falling after unveiling its financial targets. josh lipton has those details. hi, josh. >> so, courtney, let's take a look at snowflake here it's on track for its worst week

in more than a month, now about 45% off its december high. it's down about 15% this year. hosts its first analyst meeting setting a target of reaching $10 billion plus in revenue, also 10% operating margins. still bulls like this name kurt maturn saying there is a large opportunity in front of snowflake and it should be a guide post with room for upside. there are no sells on the stock. back to you guys. nadine, what do you make of a name like snowflake here really taking a dive today by more than 3% but down just about 1% for the week and a lot of analysts like this name. >> courtney, right we look at this as a key place if you want to have a position in the cross cloud analytics platform, snowflake is the name to own i think you have to give

management credit here i don't know any management team who can accurately predict out eight years and give an eight-year forecast. so you can't blame them for being a little conservative to saying, hey, we're going to reach 10% operating margins. it gives them room to beat i know with their ipo they mentioned 5. they have now upped it to 10 give them a little time and i think you'll see them outperform versus expectations in the future. >> jason, i wonder how you think about the competitive position of a company that has this long a runway before it really starts to reap the profitable rewards that it's promising right now. in other words, if we're talking about targets multiple years out, is there a better mousetrap that comes along in the cloud? how reliable at these valuations do you find the promises that they can get to those returns? >> so it's a great question. obviously snowflake ipo last year is up about 20% over the last month

it's a very competitive environment. i look at microsoft and crm in this space i do think some of these stocks have gotten a bid with rates trending downwards over the last few days and actually few weeks. i think there's opportunity here for high beta names and obviously snowflake has benefited here >> speaking of high beta names and those that have had a little bit of a tough run for a while here, shares of coinbase under pressure this week, down 2%. but cathie wood getting more bullish. her firm raised the stake in coinbase buying more than 60,000 additional shares. ark also bought about a million shares of uipath when it comes to coinbase i think that's more than a 2% position in coinbase it's been straight down since the direct listing, nadine is that a reflection of business

overheated, sentiment toward crypto assets or what? >> this is one of those cases, mike, where you have to look how a security is actually trading versus saying how you think it should trade it's been trading with the price of crypto much more than trading volumes or analytics or custody fees and so obviously bitcoin has been down 30 plus percent and you have the stock down similarly so that's what's causing the trading change it's broken those lines and it's at implied volatility discount meaning that people aren't paying up a lot for protection so it's a little complacent of a negative 31% there's still room to go down. it doesn't make it a bad business, it's just not trading in a positive way. >> i can't believe we've made it this far through the show without mentioning bitcoin or cryptocurrency we're going to move on to sales of motorcycles and rvs

frank holland looks at whether the recreation rally can continue in the second half of the year hi, frank. >> recreation stocks rallying big time so far in 2021. the largest rv seller and maker as well as the largest boat and motorcycle maker doubling the market or better investors showing a lot of confidence that elevated sales will continue during the reopening. rv shipments 80% higher, motorcycles 37% higher, boats 30% higher the influx of new buyers are creating a recreation supercycle. >> they are younger, they are more iverse. more women came into the industry so we're very excited about it one of the exciting things is we have online communities that helps us understand what folks are feeling about their experiences. >> one headwind is supply chain issues and labor shortages are causing historically low inventory across that industry

back over to you. >> i think labor shortages, supply chain kinks is really impacting everybody. jason, as you take a look at some of these recreation names or the sector in general, we know we had a huge boom in interest in anything related to the outdoors last year as covid-19 was spreading throughout the country do you think that now the economy is reopening and there are more options for people that this rally is going to be short-lived, or is recreation stocks something you want to look into here >> yeah, it's a good question. i think for me right now at this point in the market, you know, i'm more interested in experiences over things. savings rates over 27% there's still trillions of dollars sitting on the sideline. i really -- the reopening as you mentioned, folks are ready to get out and they're going to be spending that capital on experiences. >> nadine, a lot of the

consumer-related names have actually struggled just in the very short term. i wondering if that's the market's way of saying we've had a pull forward of demand, especially for big ticket goods like boats and snowmobiles and things like that do you think the market is trying to look ahead to tougher comparisons or how would you play it? >> mike, i agree with your sentiments there we've seen the reopening play and seen people buy product. now you're seeing services much more in demand versus product so i have to agree with jason in that i'd be much more interested in -- we've talked before about expedia or duty-free, travel-related experiences i think you can probably squeeze out a little return in some of the product-oriented companies but i would focus elsewhere. you can do casinos and gaming near vegas, more on that level than just pure goods because then you're really looking at a secular shift. are you saying it's a whole new

demographic that's buying? that's a whole new thesis and i think you have to be careful on that. >> as we run right up into the close, all the major averages are pretty close to the flat line, although the s&p 500 has just firmed up a little bit. it's putting a little distance between itself and the former high close, 4246 you see the advance/decline split right there solidly to the upside you have about twice as many stocks up versus down. small caps leading the way that often means that breadth is positive that's been a strong suit for this rally take a look at some of the yield-related names. real estate is mostly reits have actually had a pretty firm one, up 2%. the volatility index was pretty predictable given the calm markets and the fact we have a summer friday. even though there's a fed meeting next week, we're cracking below 16. that confirms a little bit of this sort of summer sideways action that we've been in for a

while. as we do approach the close, you see the s&p 500, 4246 i believe 4249 was the intraday high yesterday so we're managing to go out right around those levels the dow also positive right at the close, although down slightly for the week and the nasdaq outperforming, up about one-third of 1% on the day [ bell ringing ] welcome to "closing bell." i'm courtney reagan in for sara eisen this afternoon along with mike santoli who is in for wilfred frost. as mike just ran through for us, the dow closing marginally higher as well as the s&p which does set a new record for the s&p 500, up about 8 points the nasdaq is the outperformer of about 0.3 of a percent and the russell 2000 did gain 1% there. so if you look at all four of the major averages, the russell takes home the crown today. coming up this hour, we'll

speak with the founder of tastytrade and why he says traditional analysis and investment theory is dead. plus the ceo of redfin joins us with a new report about the major shift in the demand for second homes jason snipe from odyssey capital management and nadine terman are still with us, and rod van lipse is now joining the conversation. rob, thank you for being here with us today. at the end of the week we did eke out some slight gains, but as mike has been telling us most of the show a bit of sideways summer action which surprises me a bit after yesterday's cpi number even if we expected that inflation reit to be a little hot, still not worrying the markets. what do you make of the broader macroeconomic picture and how investors are reading that into their portfolio decisions? >> hey, courtney, as you said record highs and very low volatility what we got yesterday was a goldilocks scenario.

investors have been infatuated with inflation yesterday i think they realized that it's not too hot, not too cold if we dig into that number from a macro base, a lot of inflation and reflation going on they think it's going to be temp temporary. when we see this drop in volatility and this drop in volume, there's also some surprises ahead. >> rod, we've had months where it seemed the conventional wisdom was for hot growth and you want to capture the benefits of inflation is that all out the window what would you be telling clients in terms of relative positioning right now given to where we've got to and the market is halfway through the year >> listen, we've really seen those themes, the value over growth, the midcaps, the small caps really outperforming and that was dominant in the first quarter. we think things got adle muddy

in may and into early june but we think that trending is still intact and so we still prefer small and midcaps. we think the market as well as the environment and mobility continues to increase and so that will benefit those mid and small caps we like profits in our growth stocks so technology is not dead, we just want to find technology that has pricing power and profitability behind it. so we think that those themes continue and they have more legs to run re-emergence from vaccines and regaining activity is not over yet. we have a way to go. >> nadine, i want to pick up with you technology stocks at the beginning of the show julia boorstin brought us news that these bills are coming to the house of representatives floor about the potential limitations and regulations that may be coming, some antitrust concerns over these big tech companies that we've been talking about for some time so it's not new news per se but

this does seem to have some level of bipartisan support of at least exploring the topics. what does that mean for you as an investor when you look at some of these big tech names like apple, like facebook, like alphabet, google and amazon? >> sure. let's just take amazon, courtney if you're thinking that they're going to come there and say you can't do private label and you've got to split it into a whole new company, i just don't think that that's going to pass the senate you could see some, i guess, middle of the road type of approach where, okay, you can't prioritize your private label over other companies but i think some of the headlines that came out today, i just don't see them passing. so i'm not so worried given what i saw so far, but obviously you can see headlines weighing on tech you saw that in china obviously the last few months, but right now i don't think anything meaningful would pass that would concern me about the fundamental businesses that we're talking about here.

>> jason, we now sit with the s&p 500 up 13% year to date. you can add another percent or so almost for dividends over that period of time. obviously a pretty good showing. would your orientation be to lower expectations and say maybe psychologically lock in these levels or do some hedging or reallocating out of stocks or do you say, look, years that start really good tendin to continue be pretty profitable down the road how do you manage your clients' outlooks on those things >> at this stage of the game and looking at the second half of the year and a pretty strong first half, i think there's nothing wrong with a little dry powder on the sideline i think there potentially will be some consolidation over the next few weeks the macro backdrop has been strong but there's not a whole lot of news coming in over the next weeks but i think employing a barbell

strategy will be the one that's most productive and just having an appropriate level of value. and then when i think about growth, i really like established growth i think there are some high beta names that you could start to nibble at, the likes of twilio, shopify and some others. so i think that's the playbook going forward into the secon half. >> yeah, it's kind of amazing that those names were so great in 2021 and now they represent a little bit of a catch-up type trade. meantime the s&p posting a weekly gain finishing just a few points higher. bank of america out with a weekly note finding that this week saw the smallest flow into stocks so far in 2021. still a positive flow but the smallest so far. money continues to leave the tech sector which saw its fifth straight week of outflows. rod, it's been an amazing run of

more than half a million dollars into global equity funds, more than half a trillion dollars this year, but what about the outflow from tech? do you think that's long running or is that something that you want to say is a contrarian indicator and tech could firm up from here? >> i think there's some segments of tech that could firm up from here we're particularly constructive on semi conductors -- >> go ahead, rod, continue >> so again, there are some sectors of technology. it would be a mistake to feel that we are all done with technology even though the interest rate scare really did cause technology to sell off there the second part of this -- early paurt of this quarter we really do believe technology has some room. we like semi conductors and semi equipment makers, but that profit, high profit technology, those with pricing power, we

think that there's really some room to go >> jason, if i can turn to you and we've been talking about some room to go and the momentum that we may have as the economy reopens, much of which may be powered by the consumer and their ability to spend when you look at the broader consumer landscape, does that push you into any names that you might be interested in that really have taken some time to sort of open back up themselves and catch up to where everyone else has been this whole time? of course retail has really struggled, but there are names that have run a little further than their skis. what do you think about when you look at consumer discretionary right now? >> that's a great question, courtney the other thing that i would mention is amazon. amazon has been in the spotlight this week up 4%. obviously they haven't done much since september of last year, so i do think there's definitely some light on the discretionary side the other piece of the market that i think also deserves a bid

is small caps. small caps did well today but i think there's spots in the eurozone where i think from a returning to work and back to some semblance of normalcy there's parts of the you are ozo - eurozone that are behind us so there's opportunities there in that respect. >> rod von lipsey, nadine terman, jason snipe, thank you very much. have a good weekend. >> thank you, mike. coming up next, the ceo of redfin on his company's new report that could show cracks in the foundation of the housing market. plus the founder and ceo of tastytrade on how the retail trade revolution is changing the future of investing. we're back i90ecdsn son (vo) ideas exist inside you, electrify you. they grow from our imagination, but they can't be held back. they want to be set free.

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the booming housing market might be slowing down a bit. a new report from redfin shows demand for second homes has fallen to numbers seen before the pandemic mortgage rate locks dropped below 80% for the first time in a year increasing by 48.1% joining us now to talk about this and the broader housing market is redfin ceo glenn kelman glenn, thanks for being with us today. why do you think the demand for second homes is falling? there's still lovely homes out there to be had. are the prices just pushed higher because so many people were chasing them? is it going back to work what's going on here

>> some of it is prices have been through the roof and some of it is people have just gotten back to their regular lives. people have gotten vaccinated, they're going out to eat, going shopping, doing everything we haven't been able to do for a year so for a couple of weeks housing has been hot instead of blazing hot. it's actually probably good for the market we've been running too hot for too long. >> i was just thinking that. it's been a really, really strong market not just for second homes but for first homes. so if you're just talking about housing in general, i know the supply remains constrained but what are you seeing in the market for first homes is it hot or blazing hot or is it cooling off >> it's still pretty hot sometimes you'll hear an agent say we only got five or ten offers on this property instead of 15 or tw20 there are more buyers than sellers. we need the sellers to come into the market so if demand comes down one step, that would be welcome relief we really saw memorial day

weekend it slow down but it came back over the past few days. i still think you're going to have high interest in housing because people are able to work from wherever they want. there's going to be a migration from high tax states to lower cost states in america >> glenn, part of the consumer sentiment numbers that came out today, university of michigan's report, showed that those saying it was a good time to buy a home plunged. i suppose that could be the price effect or feeling the market is so tight they're not at an advantage trying to buy. but what's your takeaway on that, whether it could persist in terms of buyers just feeling as if they don't want to participate in this market right now? >> at least some of the fatigue isn't due to just prices but there's not much goods to buy. people come on to our website and can't see a house that they love they're looking further and further afield to find a home

that they can afford so a lot of it is just that they don't want to participate in these bidding wars, they're tired of getting blown out we've had so many buyers say i'll be back in a month or two because the psychological toll of losing weekend after weekend, offer after offer has really been hard on some of our home buyers it's been hard on the agents too. >> absolutely. that is a really hard thing to lose out in those bidding wars i've been a part of those and it does crush you a little bit psychologically. along with everything else we've got going on in a pandemic i want to follow up on one of your previous points there, glenn, where you talked about migration will soon be happening to lower tax states. are you not seeing that happen already? >> oh, i misspoke. it's on like donkey kong, baby it's been happening for many years. but as soon as the pandemic started, we really started seeing it happen in full force home prices could go up quite a bit in idaho or ohio or wyoming before california would really

be scared off. so i think that is why the market has continued to be strong lots of people are free to move about the country. >> so do you have a call on what other areas that might be on the frontier of what markets might start to get hot it seems as if we're aware of the ones that have been benefiting or suffering from migration at this point? >> i think it's going to be the same story it's all fair game now there's no part of the country safe from bidding wars it used to be we'd hear about bidding wars in san francisco or new york but not tulsa, oklahoma now there isn't a county that we serve where homes aren't getting 5, 10, 15 offers so i think the more affordable areas will continue to see high demand there might be a slowdown in some of the vacation markets like jackson hole, wyoming, or lake tahoe, since that was just a frenzy of demand in the early spring but mostly i think there's going to be a long-term migration to

more affordable places and the pressure will be on for years to come. >> and i'm wondering then what that means for the home prices in new york city and san francisco perhaps. people moving away chasing a dream. they can move back home to ohio where i'm from where the cost of living is much less. are you seeing that happen with a demographic more in the 30s, 40s, where they did it and now they're ready to move back >> yeah. we see all sorts of people moving out i think it's going to affect rents more than home prices. the weirdest twilight zone thing about the housing market is that inventory in san francisco is up 78%. it's one of the only markets where inventory actually increased. new york and l.a. were the other two. in san francisco, prices still increased. they only increased a little, but how in the heck do you have prices going up while inventory is shooting through the roof that is unheard of so i do think that single family homes will be in high demand and that prices will be stable there

even in the major metropolitan areas that people are leaving. but condos, condos have been coming down. if you want to buy a condo, now is a good time to be in the market that's one part of the market that's really been soft. >> very interesting. i think the rules in san francisco and new york in real estate are just different sometimes. glenn kelman thank you very much for coming on the program today: have a good weekend. >> you too. up next the founder and co-ceo of tastytrade on why he thinks meme stock has forever changed the future of investing. mike santoli looks at the latest read iesonnvtor sentiment and what it says about the broader market we'll be right back.

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at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. meme mania remains a big feature of the market with retail traders hunting down new names this week. stocks getting swept up in the frenzy including clover health, ashford hospitality trust, wendy's, clean energy fuels. joining us is the founder and co-ceo of tastytrade tom, it's great to see you we saw one of these eruptions back in january and february going back to last year was the huge robinhood stampede. people really getting into this

game of very active trading, finding these very volatile stocks and options to use in this way do you think it's just a phase what's your top level thought on what this means for the market >> well, thanks, mike. thanks for having me on today, it's great do i think it's a phase? no, no i think it's way bigger than a phase. i think it's a -- you're watching something or you're witnessing history, which is a transformational -- it's almost like a transfer of one generation to the next or it's the opening up of the markets to a new generation so, no, i don't think it's a phase. i think what we're witnessing is something that's really important and really cool to see. >> is this the best way for a new generation to be engaging with the markets now, obviously there's a lot of power in these sort of social viral mode of searching for names and trying to outsmart the professionals. however, it also seems to come

with paying tremendous premiums for out of the money options that are going to expire in a couple of days and just a lot of friction and really just a lot of room to kind of win or lose so do you think that that's kind of your best entry point >> you know, i don't know if there is it's a great question because i don't know, mike, if there is a best entry point you're talking about something that's never been done before. remember, you can go back and look at this business. this is my 40th year i go back and look at this business we've been trying to introduce a younger generation, a new generation to the world of finance investing, you know, forever. until robinhood came along and until meme stocks came along and everything like that, nobody has been able to do it so is it perfect no, i don't like it. i don't think it's the perfect way. but is it -- are the benefits of what's happening right now going to outweigh any of the downside? i think 100 times over so the answer is in an imperfect way, it's a wonderful happening,

if that makes sense. >> tom, i know you've been in the business for a long time and you're not a psychologist per se. >> no. >> but to follow up on mike's point, this is a very different way of entering the stock market than when i did it in eighth grade with my baby-sitting money and i put $800 into a mutual funding. it felt safe, it felt like it was long-term growth are these individuals just much riskier than i was why would they be going after options with these premiums and these expiration dates as opposed to putting it in there and just letting it simmer and grow for some time is this just a fast turn, fast cash generation? >> the world has changed we call it kind of a -- the outlook on what we call the rate of change or gamma has completely changed with respect to everything. who would have thought if we entered into a pandemic that big businesses could change as quickly as they were able to i think when you look at the makeup of the investor, what

we're seeing here is the investor is a lot more nimble and a lot more capable of change than we ever thought so what you're -- and again, what you're seeing here now too is a generation that doesn't have the same kind of wealth that a normal generation or older generation would have when they're getting into investing so what they're looking for is an opportunity to invest in something, and this is one of the reasons why digital assets took off and one of the reasons why meme stocks took off they're looking for something with extremely high volatility, which means it has an extremely high expected move in the end, what that turns into is something where they can say, hey, you know what, i can take a little money and turn it into a lot of money now, is that the perfect solution to long-term successful investing? no but is it a short-term solution to engage an entire generation in the world of finance when they're in their 20s and 30s before their 50s and 60s the answer is yes. that's why i think the benefits

are so wonderful compared to the risks. >> wondering, tom, what you think really on a macro level it might mean for markets and how they behave, the rhythms of the markets, the way brokers and intermeade yaers are trying to handle all of this it's put a lot of focus on things that have been there for a long time. we had the s.e.c. chair this week saying a lot of these market structure issues are now under examination. so what do you think that means for your business? >> well, there's a lot of different aspects to that. first of all, on the technology side, the more business that flows through everybody's pipes, the better the technology gets on every single level. the more products and strategies and the more things customers are able to do a lot of the difficulties, and i know people will say that's -- i blame a lot of the difficulties that we had last year in the whole robin hood explosion mostly on the exchanges in the regulators, not on the high frequency market making firms

and definitely not on the brokerage firms because they put it in a tough position regulators didn't keep up with what was happening and exchanges didn't keep up with what was happening. i think the high frequency market making firms did an amazing job. payment for order flow works it works in a way that keeps the markets tight, efficient, competitive, and it keeps the customer transaction costs down and it keeps their fill rates incredibly high. i think we have a system that works amazingly well we just need better regulatory like we need the regulators to catch up with what's happening in the marketplace and we need exchanges to support the retail customer. >> there's no doubt that retail traders have never had it better in terms of speed and cost, but we'll see if that -- if in fact they want to try to rationalize some of the things on the back end, tom appreciate your time today thanks very much. >> thanks for having me, guys. thank you. still ahead, founder of big

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we wouldn't be here without our wonderful customers. we're really thankful for all of them. [female voices soulfully singing “come on in”] welcome back let's send it over to mike who's got a look at sentiment for us on this friday. >> kind of a nuanced picture this is the b of a's bull/bear indicator. it's not just about investors'

stated sentiment thor their moo, it's about how they're positioned with regards to various asset classes. it looked like we were headed toward the excessive bullishness territory. the last time we were there is early 2018 before the market basically flatlined for a year and a half we didn't get there. we moderated some of the positioning. it seems as if some of the real energy as come out of the speculative side of the market even as the options trading as we were just discussing is very, very extreme and way overbullish. also take a look at sell side strategist sentiment you see very, very muted optimism here, all things considered here's the s&p we closed 4247 the median forecast for the end of the year for all these strategists is 4300. so that's basically up not even 2% from here the average 4263, we're already

there. we have half the year to go. the low is 3800 so that's b of a. they think there could be a substantial pullback the very highest target, 4400. we're only talking about 150 points on there, it's not even 4% from here so i think what this shows is that wall street is not really over its skis. why is that? valuations don't really look so attractive and i think after last year's enormous returns with the economy hobbled, it's been a little tough to extrapolate that out from here so arguably people aren't necessarily -- don't have their eyes much bigger than you would expect at this point even though kind of mixed messages under the surface. >> on the bank of america sentiment chart, actually on more of a downward trend do you suspect that that will continue or will we see that flat line out as we're very close to the targets >> it's difficult to anticipate but it does seem as though we'll moderate up at these levels because it will follow things

like financial conditions. you would think you wouldn't see much panic unless you saw stress getting into those parts of the market at this point it seems like we're just cooling off from pretty much overheated levels. >> cooling off as it gets crazy hot outside. it's now time for a cnbc news update with shepard smith. here's what's happening. general motors recalling some 285,000 vehicles for a potential airbag issue a software glitch could stop a warning light from alerting drivers of an actual problem the recall affects several 2021 models including cadillac escalades and chevy corvettes. first it was floods, next mosquitos. as the waters recede, authorities in north texas are bracing for a deluge of mosquitos, some of them carrying west nile virus. last year cases were low with so many people staying at home during the pandemic, but this year the risk is higher as more and more of us head back outside. plans of dealing with the outbreaks they tell us already

in place. and the second city taking the lead, chicago now the largest city in the nation to fully reopen nearly all covid restrictions are gone, though some mask requirements are still in place. as america does reopen, new concerns now about the covid delta variant and heart problems in a small number of teens and young adults the details on the news right after jim cramer, 7:00 eastern, cnbc courtney, back to you. >> that is an important story we should continue to follow for those heart issues thank you very much, shep. well, our next guest says congress is going to throw the kitchen sink at the tech sector. details on the regulation risk facing silicon valley and the stocks that could get hit the hardest. oracle is among the big names on next week's earnings calendar we'll preview everything investors need to watch for. that's later on "the closing bell."

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lawmakersare taking on big tech amid growing antitrust concerns the house unveiling five bipartisan antitrust bills that could make it harder for companies to complete mergers

and acquisitions as well as for some companies to break up joining us now is the founder of the big technology news letter and a cnbc contributor a alex, good to see you. the industry generally trying to forestall this but maybe it's here as a more imminent threat what elements do you think are most relevant to big tech's business models and those companies that would directly be targeted here? we're talking about bundling of services as well as perhaps some blockades to further m & a. >> oh, man, it's all relevant. this package of bills has everything in it, funding the regulators, preventing self-dealing inside the platforms. companies like amazon can't sigh fun siphon data. and the doj would get full authority to break up these companies.

if this passes and is signed into law, it's just the end of big tech as we know it the complete end, end of big tech as we know it. >> end of big tech as far as these platforms continually reinforcing their franchises and essentially redeploying the data and trying to cross-sell through the platforms. but i wonder just -- like if google was unable to surface its own internal lyinks in search results, would that really change the game or are we just talking about moderating their profitability a little bit >> 100%. if you think about the success of google's ancillary products, things like maps and shopping and youtube, all of these have benefited greatly from getting premium placement on one of the most important pages on the entire internet, which is google search results if you tell google it can't do that or tell amazon, hey listen, you can't put your white label

or private label products in premium places they wouldn't get otherwise, that does have an impact i don't think this is the end of big tech companies, i just think it's the end of big tech as we know it. they have gained a leg up on competitors and third parties by giving themselves preferential treatment in their own search results and on their own products so that would have to end. i go back to practice mill -- pl jayapal's. some might make it through, some might not. if we see the five bills enacted in the form that they are today, it would be a significant blow to the way these companies do business >> alex, i know you're not a lawmaker but even if it is watered down, which company do you think might be most at risk with what's potentially on the table here is it amazon if they have to separate aws from its retail business when obviously aws helps fuel and fund that retail business, or is it google if it has to lose youtube or facebook

if it has to lose instagram and whatsapp >> yeah, i wouldn't be surprised if this stuff impacts every single one of them obviously on amazon, it would be really tough for them because aws is kind of the core. it's what allows the -- it powers alexa it allows the retail business to be able to serve different volumes. it's obviously a cash printer for it google of course would have issues as well so it would be disruptive to all businesses think about the amount of time they'd have to put in to comply with these regulations that being said, i don't know if a spin-off will necessarily be a value killer if you have aws as one company and maybe the echo and hardware business as another, you might see value creation and stock going up for all of these companies. so i guess it really just depends on what the final product would look like but it would certainly be extremely disruptive to all.

people have been saying, oh, microsoft is sitting back and laughing but it would impact microsoft too. they also have businesses that could have conflicts of interest, things like azure and an operating system so i wouldn't count them out as being affected by this as well >> you know, the sort of safe harbor for these companies, and really for all companies for a long time now when it came to antitrust is is it better for the consumer is there anything abusive to the consumer is it costing consumers in aggregate more than it otherwise would? is that type of defense going to work for an amazon at this point or any of these other companies? >> right well, i think that under the old antitrust laws it worked pretty well that's why we haven't seen much movement under the sherman antitrust act. the doj and ftc against facebook and google trying to use those old laws these laws are explicitly designed to make that defense not work anymore this has been the product of the work that the antitrust

judiciary subcommittee has been doing where they have been trying to think about how antitrust would be relevant to technology companies, not to railroads. and so i think that what you just pointed out, mike, is super important because that's exactly what these laws are designed for. they're designed to take away the excuse that prices are good or the product is, quote unquote, free and give lawmakers and give like the regulators an opportunity to start to attack these companies under a new paradigm i think that's what you'll see if they're signed into law. >> alex, if these are signed into law, then are consumers ultimately the ones that are hurt if amazon has actually helped lower prices across the board and made their competition have to up their game a little bit? >> yeah. i mean it's a question of markets and competitiveness. so if you believe that this is the right package of laws to be used to rein in big tech's power, then you luke ikely beli that it will give small companies and merchants selling

on their platforms and technology companies we haven't even heard of because they have been acquired and killed by these companies a chance to thrive and even out the economy. it's a big question. the other side of this would say, listen, time is going to do its work we know that innovation is a cycle and that today's seemingly indestructible companies are going to be tomorrow's afterthoughts. these companies have really defied logic they have stayed on top of the economy and gotten bigger and stronger and not bureaucratic and fallen apart it's part of the way they do business inside but also it's part of the way that they crush the competition. so i think that's going to be the big discussion going forward, because they're just introduced today now there's going to be a political debate about them. obviously big tech will pour a ton of money some that we know is coming from them some we don't know that is coming for them and ultimately congress will have to figure out what the best route is and go forward. but, you know, a funny thing happens when you write stuff

down on paper. this is how amazon built its products you write stuff on paper and work backwards from there. it looks like congress has taken a page out of their book and they're going pretty strong in this direction >> yeah. it's been an idea out there for a while that there were certain natural monopolies in technology it seems like this will get tw tested with this whole debate. alex, thanks very much. >> thank you. at&t, intel and ge are just some of the companies whose executive compensation packages have been rejected by shareholders now one proxy advisory firm is recommending investors add another company to that growing st details when "closing bell" returns.

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investors have been pushing back against executive pay plans recently leslie picker has the details. >> it's been a record year for pushback on pay. more than 4% of corporate pay packages have been rejected by investors, a record read of dissent. the latest on the chopping block, mastercard. influential proxy advisor refirm iss coming out with a new report this week urging investors to vote against its compensation plan like many companies during covid, mastercard adjusted its performance goals, thanks in part to the expectation for lower consumption expenditures and fewer cross border transactions but after a brief dip last spring, mastercard shares gained 20% in 2020.

helping push the ceo's higher, mastercard telling investors it believes compensation was aligned with shareholders and the awards were used to fairly compensate employees and engage in retention and talent. shareholders will vote in 11 days on those comp plans, guys. >> leslie, that's pretty much always been the handy line for companies, right, which is, sure, they're benefitting a lot but they're equity-based compensation and, therefore, shareholders are profiting along with it. i think the idea of reloading a ceo because you think maybe the stock will struggle for a while, that might be one area that's going to continue to get a lot of scrutiny. >> exactly and that's the unique issue of 2020 in particular is that a lot of companies amid the depths of the pandemic basically moved the goal posts investors are taking issue with that now as annual meetings are

under way. this idea that, well, actually things turned out to be pretty good in 2020, so was it actually appropriate to move those goal posts? companies are pushing back and saying, yes, we did a lot of research and did our due diligence when we decided to make these moves, but investors certainly coming out in full force against them relative to years prior. >> leslie, thank you very much have a good weekend. >> you too, court. one of the worst droughts on record is currently devastating parts of california's economy. kate rogers looks at the impact. hi, kate. >> reporter: hey, court. take a look behind me. see these docks all on dry land. just a taste of this record drought in cifnialora. we'll tell you much more coming up after the break on "closing bell." ♪♪

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>> kate as you look furker down th further down the road what must it mean for fire season. i imagine it will be more devastating if we see more fires. >> i think courtney everyone is just bracing for what this means. it is dry out here as i drove north to sacramento and beyond today you can see there's no green grass in sight, everything is crisp already and dry trees are lining these reservoirs and everyone is on edge wondering what it means when wildfire season comes later this season i think we all know what's in store. >> yeah, sure do certainly something to be on alert for, kate, thank you very much the fed, and another read on inflation take center stage next week on wall street. what to expect, straight ahead as a reminder, cnbc evolve

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next week brings a lot more earnings and eck nom inning data oracle, lennar, adobe, kroger. on the economic front tuesday brings noeanother reading on inflation with api report and retail sales, home building on thursday and monday you don't want to miss an exclusive interview with morgan stanley chairman and ceo, james gorman right here at 4:00 p.m. on "closing bell" we had a muted end of the week but still under control, even despite the whacky economic numbers on inflation i guess we were expecting a hot read. >> interesting we were expecting a hot read but didn't appear before hand as if the market was positioned for that. it was as if investor said fine

we have crazy numbers like 5% cpi but we don't think it will filter into fed or we don't think it's sustainable it seems like the market is digesting this as no big change through the summer september is when enhanced unemployment benefits expire, maybe that's when we pay more attention to it but the fed meeting will have a lot to say how we interpret these things. >> if we think of if stocks are hotter , or not, growth picked up this week. >> absolutely. it was hard to navigate because everyone thought value and mike emrick was cyclicals were the way to go -- i don't know if we'll be on this toggle forever that's where we've been for a while. >> yeah we'll see. a lot ahead of us actually

a lot of big earnings from different companies. >> honestly, it will be interesting to see the market's receptivity to the new names by the way, we have a full week away from father's day. >> i won't forget that's important one. >> not self-interest at all. that does it for "closing bell" on this friday everybody have a good weekend. "fast money" begins 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 dan nathan, steve grasso, victoria fernandez and james mcdonald a big call on bonds, chart master sounding the alarm in the treasury market, wait until you hear where carter worth sees yields headed. plus handful of big tech names well off their 52-week highs, any worth a second look later knock on wood when ark investor kathy wood is facing the truth, the one chart that may explain it all