>> scott miner tweeted out something about the deflationary pressures being brought to bear. remember, fracking was a huge part of the story. the u.s. became a swing producer and that forced oil prices lower as well. >> there are plenty in the market saying it might be over dom, it's been a pleasure. thank you, sir thanks for watching "power lunch. everybody. "closing bell" starts right now. >> welcome to "closing bell. i'm sara eisen at the new york stock exchange strange day on wall street some sizeable news and a divergent market following yesterday's fed decision the dow is leading the declines down triple digits but well off session lows the nasdaq is surging. >> and i'm wilfred frost let's have a look at what's driving the action today banks and industrials wearing on the indices the most declines for the last of goldman sachs, and j ppmorganjpmorgan.

treasury yields are pulling back with the faangs and other names higher adding another layer of complexity to the economic pitch, jobless claims rose last week to the highest level since mid-may. 59 minutes left to go in this fairly odd session flat at the moment on the s&p. coming up in today's show, grocery chain kroger is a standout winner climbing on the back of strong earnings. the c echt o is joining us on what he's seeing from the consumer and whether he's worried about inflation. plus we will speak with bradley tusk for his outlook on technology as that sector jumps in today's roller coaster market. >> mike santoli is tracking today's wild action and joining us with his thoughts is tony from pimco mike, let's start with you set the stage on this up-and-down session. >> some of the most vicious whipsaw action underneath the surface.

the s&p oddly enough relatively flat we did have another scare to the downside the market has been very sticky around the 4200 mark we first hit that well over two months ago that's your narrow range we do have a big expiration of index options and futures happening tomorrow it will have the tendency of hanging the indexes on a certain level. whatever the stuff underneath has to do to move in opposition to each other to accommodate the index staying flat, sometimes that happens you did this have panic out of reflation type plays look at the five-year market implied inflation rate so this is known as the five-year break-evens. we had this basic round trip that went from march into right now. a mini panic in inflation. you have commodities coming way off their highs, all in liquidation mode at the moment really it's the markets that's been hunting for crowded trades where there's high conviction

and just blowing them out. that's the practical aspect of it right here. obviously the fed's very, very modest turn was the catalyst but it really to me accelerated the unwind what's the broader context look at u.s. financial conditions this is basically a proxy or liquidity and risk appetite. when it's low, it means very accommodative financial conditions it's about as low as it ever gets you had a little back here in the mid-2010s and in the mid-2000s as well. that was about as low but it doesn't get too much looser from here that's what the market is trying to slowly deal with. are we seeing all we're going to get from the liquidity side of things even if things don't change very quickly on the fed policy front. >> obviously certain sectors have reversed course today, yields most notably have reversed course from the moves we saw 24 hours ago. why has the same not happened to

the dollar and commodities >> i think a lot of what's going on in all of that stuff is real yields becoming less negative. so kind of u.s. yields looking a little bit less depressed. that would fit in with a lot of that -- a lot of those dynamics with gold going down, commodities going down and the dollar getting firmed up a little bit i think that the nominal yields -- tony can talk more about this, but the nominal yield story is much more what the curve is up to not the absolute levels of the 10-year. >> let's bring in tony as we mentioned, executive vice president and market strategist at pimco is with us as well. tony, good to see you, it's been a while. >> hi, wilfred. >> first of all, what are your observations today in the way that yields spiked yesterday and then on the long ending at least back down to where they were 24 hours ago but some other markets like commodities and the dollar definitely holding on to the big moves? >> well, the ghost of taper

tantrums past is not so scary it seems today. what the fed did yesterday is regain control of the inflation narrative. previously in the hands of many other investors, many speculating in the areas that mike was talking about there are a lot of top trades for the reflation theme. for example, the yield curve st steepening positions in the u.s. dollar on the short side and commodities markets being cleaned up when we take a step back and look at where markets are pricing in long-term interest rates based on the gauges that we look at in the bond market, it seems that it's a benign outcome. the fed giving a bit of tough love in order to keep inflation expectations in check. this could be very bafavorable o equity, for private assets and housing, all of which we recommend continued overweight

in, especially now that the fed has regained control of the narrative and anchored inflation anticipation at a level market participants enjoy. >> are those assets only attractive until we do get to the point of rates going higher or even when they do start to be hiked by the fed, as long as it's calmly then those assets can keep doing well. >> it's a good question and it depends on where an investor thinks markets are and the economy is in terms of the cycle. we would suggest that based on the equity markets risk premium, call it around 3.5% or so, that the market pricing is consistent with the mid-cycle average, which is to say there may be some time to go. then again, the unemployment rate by the end of next year could reach late cycle levels. and the idea of fed rate hikes with potentially quickening momentum, who knows, may come

into play. for now it looks like the runway is clear in part because the economic story is very good. pimco would forecast economic growth to stay sturdy next year, above long-term trend which is in the 2s, so we expect it to be closer to 3% that's somewhere around the consensus and that's certainly a number that is good in terms of cash flow eneration, which is good news for investors generally. >> tony, i want to ask you about something that doesn't get a lot of air time and daylight on tv which is the daily reverse repo opposition i think $700 billion in volumes. what does that tell you? >> i think of a chart in a book i recently published regarding this study from the european central bank on what happened in 2014 with respect to short-ter interest rates they were floored around 0% until mario draghi made it clear

that interest rates might go down even when he said rates might move into negative territory, it still didn't move very much. when it was clear they would move more negatively, there was an inversion of yields more deeply below zero. what i'm trying to say is that floor is quite important for the structure of the overall bond market it's likely to stay in place therefore, there will be no speculation in the u.s. bond market about a negative interest rate, certainly with respect to the communications just delivered by the fed and the final note on this, though, of course it suggests massive excess liquidity and various reasons for that some of them very technical and not worthy of the program and are likely to stay in place quite a long time because the fed won't be shrinking its balance sheet for a long while. >> so what's the upshot, tony? what do you do what's the best pimco trade? >> well, as you suggest, and pimco held a forum last week

where professionals got together and discussed an outlook we'll publish an outlook next week but the skinny is we'll favor an overall equities to credit private assets and real estate we truly believe that it has to be mixed with fixed income assets to anchor the portfolio we still believe strongly in the 60/40 investment model and high quality fixed income can anchor investments in those areas so we suggest staying with the idea of expansion for now and all the benefits it tends to provide. raise liquidity, raise resilience to perform and take advantage of the volatility you saw yesterday because there probably will be more of that in the months ahead. >> but overall pretty bullish. tony, thank you. >> thank you, sara. >> good to have you back on the show by the way, the s&p 500 has now

gone positive. dow down 200, nasdaq up a percent. up next, grocery shopping is popping. shares of kroger almost near the top of the s&p following a strong earnings report the ceo joins us next to talk about the quarter, plus his read on inflation and closing strength you're watching "closing bell" on cnbc. ♪ ♪ ♪ cisco. the bridge to possible.

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>> right now we're expecting inflation to be 1 f% to 2% as w look out. >> so sort of in the transitory camp, rodney i'm curious what those conversations with the food and beverage companies look like usually when it comes to pricing, higher prices, they can be somewhat contentious.

>> yeah. you're always working with your cpg companies. and one of the things as you know we have incredibly strong r brands one of the nice things about having a strong our brands program, any time there's cost increases not driven by real costs, it gives our brands an opportunity to gain share. what happens historically is those brands do gain share whenever there's cost increases that aren't driven by true fundamental cost changes >> rodney, we were talking the other day about amazon's new big physical stores and despite the coverage it gets there are still only 2% to 3% of nationwide market share in groceries. where do you expect them to be in 5 to 10 years do you expect them to be one of the fastest growing competitors that you face? >> when we look at amazon, we feel the same way about walmart,

albertsons and costco. all of those companies are competitors and we look at what they're doing and learn from them one of the things that's great about our industry is it's a $1.4 trillion industry when you look at how much money people spend for food either food at home, food away from home. and it's a huge market that gives everybody an opportunity to have a meaningful share the other thing we feel really good about at kroger is we start off with a strong reputation from a fresh standpoint and that's the number one reason how somebody decides to shop when you look at that, it's important to us. we start out with an advantage and we plan and expect of ourselves to continue to improve that advantage versus our key competitors. >> rodney, you just listed most of all the big players do you expect as a group that those players will have more share in five years' time than

currently, and that the kind of ongoing requirement to at least offer at-home delivery in some form will squeeze out some smaller, local grocery players over time? >> yeah, when you look at the online, it's one of those things where i always tell our investors job one is to make sure we keep that customer our seamless business last year was over $10 billion we continue to grow in the first quarter. and it's incredibly important to keep that connection with the customer when you look at a lot of the smaller, regional competitors, they really don't have the resources to invest in a seamless experience. that over time, those companies will either have to partner with some type of smaller technology company or be at a competitive disadvantage and we believe it's incredibly important to have a total seamless experience. if you look at our customer base, very few customers only shop with us online.

almost all of our customers, as a matter of fact, high 90 some percent, will shop both online and in store when they do, they're much more sticky to us and much lower turnover of that customer base. >> well, unlike amazon, you still have a lot of cashiers and associates and you're hiring i know you hired a lot during the pandemic and just put out a notice you're hiring another 10,000 workers are you finding it harder to hire back in this environment and are you having to raise wages? >> we have more openings now than we did even before covid started. part of that is because of the ongoing growth of our business last week we did a hybrid hiring event and were able to hire over 5,000 associates obviously that's incredibly important. we still have job opportunities. one of the neat things about kroger is a lot of people come to kroger for a job and make it a career over 70% of our store directors

started out as hourly associates we expect that to continue to be important. for us, our people are critical to our success and we believe in giving people an opportunity to grow that's one of the things that's so special about kroger. >> finally, sort of on a related note, rodney, question on stakeholder capitalism, which is the mantra right now in corporate america and for investors. i did notice you raised the buyback by a billion dollars and have closed stores in some jurisdictions that are man dating hazard pay and have faced some criticism and backlash over phasing out the extra hazard pay that you gave your employees some are wondering if you are focusing enough on the employees during what was a once in a generation pandemic, difficult frontline job and on your communities. how do you respond >> yeah, if you look, last year we were able to invest over $2.5 billion in improving our pension benefits for our associates in

terms of their security for pensions, which was about a billion dollars. we also aggressively invested in incremental pay and keeping our stores clean so altogether it was $2.5 billion. so we're super proud of the things that we did you're always going to continually focus on the business and focus on customers. one of the things that would be another example of things that we did is last year we provided over 640 million meals in our partnership with feeding america. so all of those things together, we're very proud of what we're doing and very proud of what we're doing for the communities where we operate and for our associates >> and the shareholders are happy today too. rodney, thank you very much for joining us on the quarter. rodney mcmullen. >> thank you, sara. >> chairman and ceo of kroger. >> we are just higher on the s&p about a tenth of 1%. up next, a flaming hot controversy. we'll hear from the janitor

turned vice president of pepsico who claims of inventing the widely popular flaming hot cheetos snack has come under scrutiny we'll be discussing that, next 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,

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markets continued recovery, dow down 172 there's a controversy over the founding of flaming hot cheetos. for investors an innovation like this one have been a key for pepsico. the snack business, frito-lay north america is the biggest contributor, about 45% of the company, and more than half of sales. new flavors, packages and products have fueled the growth and the stock outperformance over the last three decades going all the way back to 1992 when flaming hot cheetos hit the shelves just after richard montanez, a janitor without a high school education said he had a revelation while in a supermarket. >> so what did i see i saw the spice rack i saw chile. i sigh people buying chile powder i looked down at our powder and it was very simple this is a long time ago.

lay's, ruffles, fritos, sour cream. not a whole lot of flavors for the people that like spices. so i thought about it, i'm going to create something with a spice. >> once richard says he came up with the idea for cheetos and tested it out at home with his wife, judy he did the unthinkable he phoned pepsico's ceo. >> when i picked up the phone she said who are you her name is patty. she said i don't recognize the name remember, only a division president would call the ceo a vice president wouldn't do that without permission. so she knew everybody. i said i'm richard montanez. i said i work in california. oh, you run california no, i work in southern california are you the plant director >> no. i work inside. she said who are you

i said i'm a ju, that was a fancy word for janitor, janitor utility. i saw mr. enrico's video and i came up with this idea and i think this will work she said hang on, give me a couple of minutes. so i know she was a visionary because she took a few minutes i didn't hear her, but i know she was telling roger, you need to take this phone call. you've got somebody on this -- this is destiny here because when roger got on the phone, he was so excited richard, i hear you've got an idea for me. i'm like yeah. and i began to tell him in just the way that i know. just talking from my heart >> montanez' book is out this week which tells his story, how he eventually rose up the corporate ranks at that oversee sales and promotions however, a few weeks ago the

"l.a. times" revealed a year-long investigation in which they spoke to a number of employees who contested montanez' account. >> hot cheetos has such a following. but i really don't know. and i'm not trying to figure it out. i just know what i did and i'm just telling my story. there's several people that -- i mean the ceo himself, he's quoted as saying if there was no richard montanez, there would be no hot cheetos the secretary, patty, said i remember the phone call, i remember setting up the meeting. i don't understand but i'm not going to let it change who i am. i'm still going to try to build unity, try to encourage people that anything is possible and the american dream still lives that's kind of where i'm at today. >> pepsico is a bit ambiguous telling me the sincere truth is

at pepsico we believe in the strength and power of teams and attribute the launch and success of flamin' hot cheetos and other products to several people who worked at pepsico, including richard montanez they talk about his career, the impact he's have but do note there was a separate division developing spicy cheetos in the last three years alone, and this is just recent, flame in'hot products have grown 53% and represented 20% of frito-lay north american growth according to nielsen. >> so did cheetos already exit and he invented the flamin' hot flavor or the cheetos? >> according to his story, he came up with the idea for flamin' hot when he saw the spices and thought it was an

underserved market then he went on and one day eating corn, corn on the cob that was spiced and he decided it looked like a cheetoh he brought some plain cheetos back from the factory to his wife judy. they made it in the kitchen and tried it multiple times and the rest was history >> and the best part of this exactly in that starting point is he then progressed up through the company. >> right which is why i think pepsico supports the journey, however factual it was, that he lays claim to the invention i think he still is an inspiration and has been recognized in the company for speaking up as a janitor and working his way up. >> during that, i also looked at their website. they have a lot of different products now there's no shortage of different flavors. >> well, that's the innovation machine. that's what's driven the growth. >> flamin' hot cheetos mix. >> flamin' hot mac & cheese.

>> i'm not sure about that. time for a cnbc news update with rahel solomon. here's your cnbc news update at this hour texas governor greg abbott signing new pro gun rights bills into laws today, including one allowing texans to carry handguns without a permit. legislation goes into effect in september. and michigan governor gretchen whitmer says that she wants frontline workers to get hero pay visiting a nursing home to support legislation that would permit one-time payments to essential workers. >> when you work that hard and do these tough, important jobs, you should get paid a salary that you can live on, that you can take care of your family on. >> and the u.s. is joining other nations denouncing china over the arrest of five people at a pro-democracy newspaper in hong kong the state department says that the u.s. strongly condemns the arrest, which appear entirely politically motivated. you are now up to date

wilf, back to you. still to come, the nasdaq is flooding with record high closing levels bradley tusk will join us with his take on the sector and the big things he's watching at the moment. here's a check on bonds yields, pulling back significantly, touching 1.57 on the 10-year yesterday. back to 1.516. "closing bell" back after this what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster.

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welcome back the dow is down half a percent and the nasdaq is up 1%. we've got just under 30 minutes, 25 minutes left in the session let's have a look at some individual market movers bank of america global research out with a new note on meme stocks they say amc is still hot but virgin galactic, zillow and beyond meat aren't the new stocks to watch include petco and b & g foods. tune into a special edition of "fast money" tonight melissa and the traders are taking you inside the amc trade

tonight at 5:00 p.m. eastern time immediately following "closing bell. up next on the show, wells fargo scott wren tells us where he sees opportunity in the markets and why he sees the s&p 500 gaining 15% by the end of the year "closing bell" will be right ckitte continuing to outperform and the dow coming back, now down 159 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. i became a sofi member because i needed to consolidate my credit card debt. i needed just one simple way to pay it all off. it was an easy decision to apply with sofi loans, just based on the interest rate and how much i would be saving. there was only one that stood out

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let's have a quick check on the market we are down 407 on the low by the dow but currently only down 133 and the nasdaq is up a full%. let's bring in scott wren, senior global market strategist. scott, good to see you today some of those cyclical sectors selling off pretty aggressively what do you do with those sectors today? >> they are selling off pretty aggressively what we've been telling our clients to do is look for opportunities. the four worst performing sectors today are ones where you are overweight we're favorable on every one of them we've been trying to encourage our clients to have a plan most of them have cash on the sidelines, not uncommon for retail investors these days, and to step in on bad down days, bad

down weeks because for us -- sara mentioned 15% we're not that optimistic by the end of the year, but 6% higher for the s&p 500 by the end of this year and 15% by the year end 2022 so we are optimistic we're going to get there with those cyclical names we don't want our clients to hide and so downside opportunity right now in our minds. >> you mentioned that a lot of your clients have cash on the sidelines. to what extent relative to historic levels? >> well, i would tell you that our clients, and this is going back for a number of years, they have not had generally double, but they certainly had 10% to 20% more cash typically than what we've been recommending to them and i think the reason for that is clients, particularly high net worth clients, retail clients, they tend to be older they live through the tech bubble, they live through the financial crisis

they don't think they have time to make this money back anymore as when they were younger, and so they have been much more conservative so there's a lot of fuel and people would argue trillions on the sidelines that could go into the market, which is true. but in this particular cycle, i think you're probably going to see retail investors continue to sit onr a number of years now. >> scott, it's sara. thanks for clarifying the 15% by the end of next year. >> i wish we were that optimistic, sara, but if you're right, we'll take it. >> well, my question is what about bonds, are they going to interfere with your call yesterday everyone was talking -- the taper, the fed is talking taper now and the fed is going to pull back and you like all these value and cyclical groups what's happening today, we're seeing some aggressive flattening of the yield curve and technology is taking off. >> we really are growth is back today anyway.

but for us really our calls for the end of this year will see the 10-year yield at 2.25. that seems like a long way away now, but i do think that if we're going to grow 7% this year, which is our number, a little over 5% next year, is the 10-year yield going to be able to hold here at 1.5? we don't think so. we think it will work its way higher it's a good sign the bond market and the stock market are in a bit of a disconnect here lately but for us we do expect the stronger growth to last. we do expect rates to be higher. let's face it, the fed yesterday basically said they're going to raise rates in two years it's not like they have taken their foot off the accelerator the market knew that we're going to see some kind of tapering here it could very well happen before the end of this year but really the fed, you can make a very rational argument that the feds should be tapering and rates should not be at 0 if we're going to grow at the rates

we think we are this year and next year. >> is dollar strength going to continue and is that a problem for u.s. equities? >> now, this was a big day obviously for the dollar index we thought we might see the dollar drift a little higher until europe and some of the rest of the developed world gets their act together with these vaccines we know the uk is seeing some more lockdowns, some other countries. but we think by the end of the year and by the end of 2022, the european economy is going to be doing considerably better. those interest rate differentials should narrow in favor of europe. so we do see some modest fall in the dollar index let's say by the end of next year we're somewhere mid to maybe slightly upper 80s on the dollar index from the 91 level where we're approximately at right now. >> scott, thanks for joining us. good to see you. >> thanks, guys. have a good afternoon. >> you too. strayight ahead, energy is

one of the worst performing sectors today. we'll brk ateath down next in the market zone. we have 17 minutes left. we're down 140 on the dow. ♪ ♪ ♪ ♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

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you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. we're not going to go in the market zone. we're going to go washington, d.c., because president biden is about to sign the juneteenth national independence day act into law vice president kamala harris is speaking this is poised to become the nation's 12th federal holiday. let's listen in. >> and so as we establish juneteenth as our newest national holiday, let us be

clear about what happened on june 19th, 1865. the day we call juneteenth because you see, that day was not the end of slavery in america. yes, on that day the enslaved people of galveston, texas, learned that they were free. but in fact two and a half years earlier, the emancipation proclamation ended slavery in the confederacy. so think about that. for more than two years the enslaved people of texas were kept in servitude. for more than two years they were intentionally kept from their freedom. for more than two years. and then on that summer day, 156 years ago, the enslaved people of texas learned the news. they learned that they were

free and they claimed their freedom it was indeed an important day [ applause ] and still let us also remember that day was not the end of slavery in america the truth is it would be six more months before the 13th amendment was ratified, before enslaved people in the south and the north were free. so as we commemorate the history of juneteenth, as we did just weeks ago with the history of the tulsa race massacre, we must learn from our history and we must teach our children our history because it is part of our history as a nation. it is part ofamerican history. so let me end by saying this

we are gathered here in a house built by enslaved people we are footsteps away from where president abraham lincoln signed the emancipation proclamation. and we are here to witness president joe biden establish juneteenth as a national holiday. we have come far and we have far to go, but today is a day of celebration. it is not only a day of pride, it is also a day for us to reaffirm and rededicate ourselves to action and with that i say happy juneteenth, everybody, and with that i introduce the president of the united states, joe biden

>> thank you thank you, thank you, thank you. thank you, madam vice president. 156 years ago, 156 years, june 19th, 1865, major general of the union army arrived in galveston, texas, to enforce the emancipation proclamation and free the last enslaved americans in texas from bondage. the days as you all know became known as juneteenth. a day that reflects what the psalm tells us, we may endure for a night but joy cometh in the morning. juneteenth marks both long, hard

night of slavery subjugation and a promise of something to come this is a day of profound weight and profound power a day which we remember the moral stain and the terrible toll that slavery took on the country and continues to take. what i've long called america's original sin at the same time, i also remember the extraordinary capacity to heal and to hope and to emerge from those painful moments and a bitter, bitter version of ourself to make a better version of ourselves. and today we consecrate juneteenth for what it ought to be, what it must be, a national holiday.

as the vice president noted, a holiday that will join the others of our national celebrations our independence our laborers who built in nation our servicemen and women who served and died in its defense in the first new national holiday since the creation of martin luther king holiday nearly four decades ago. i'm grateful to the members of congress here today, in particular the congressional black caucus, who did so much to make this day possible i'm especially pleased that we showed the nation that we can come together as democrats and republicans to commemorate this day with an overwhelming bipartisan support of the congress i hope this is the beginning of a change in the way we deal with one another. and we're blessed, we're blessed to mark the day in the presence of miss opal lee as my mother would say, god love her.

i had the honor of meeting her in nevada more than a year ago she told me she loved me, and i believed it. i wanted to believe it miss opal, you're incredible a daughter of texas. grandmother of the movement to make juneteenth a federal holiday. miss opal, you won't believe it, she's 49 years old or 94 years old. you are an incredible woman, miss opal, you really are. as a child growing up in texas, she and her family would celebrate juneteenth juneteenth, 1939, when she was 12 years old, a white mob torched her family home. but such hate never stopped her

any more than it stopped the vast majority of you i'm looking at from this podium. over the course of decades, she's made it her mission to see that this day came it was almost a singular mission. she's walked for miles and miles, literally and figuratively, to bring attention to juneteenth, to make this day possible i ask once again, we all stand and give her a warm welcome to the white house. [ applause ] as they still say in the senate and i said for 36 years, excuse me for a point of personal

privilege. as i was walking down, i regret that my grandchildren aren't here, because this is a really, really, really important moment in our history by making juneteenth a federal holiday, all americans can feel the power of this day and learn from our history and celebrate progress and grapple with the distance we've come, but the distance we have to travel and i said a few weeks ago marking the 100th anniversary of the tulsa race massacre, great nations don't ignore their most painful moments. great nations don't ignore their most painful moments they don't ignore those moments of the past. they embrace them. great nations don't walk away. we come to terms with the mistakes we made and remembering those moments,

we begin to heal and grow stronger the truth is it's not -- simply not enough just to commemorate juneteenth after all, the emancipation of enslaved black americans didn't mark the end of america's work to deliver on the promise of equality, it only marked the beginning. to honor the true meaning of juneteenth, we have to continue toward that promise because we've not gotten there yet the vice president and i and our entire administration and all of you in this room are committed to doing just that that's why we've launched an aggressive effort to combat racial discrimination in housing, finally addressed the cruel fact that homes owned to this day by a black american family is usually appraised at a lower rate than a home owned by a white family in a similar area

that's why we committed to increasing black homeownership, one of the biggest drivers of generational wealth. that's why we're making it possible for more black entrepreneurs to access capital, because their ideas are as good, they lack the capital and get their fair share of federal contracts so they can begin to build wealth that's why we're working to give each and every child 3 and 4 years of age not day care but school in a school that's why -- [ applause ] that's why we're unlocking incredibly creative innovation of the history at our historical black colleges and universities, providing them with the resources to invest in research centers and laboratories, to help hbcu graduates compare and compete for great-paying jobs in the industries of the future folks, the promise of equality is not going to be fulfilled

until we become real -- it becomes real in our schools and on our main streets and in our neighborhoods. our health care system ensuring that equity is at the heart of our fight against the pandemic, and the water that comes out of our faucets and the air that we breathe in our communities and our justice system so we can fulfill the promise of america for all people, all of our people and it's not going to be fulfilled so long as the sacred right to vote remains under attack [ applause ] we see this assault from restrictive laws, threats of intimidation, voter purges and more an assault that offends the very democracy, our very democracy. we can't rest until the promise

of equality is fulfilled for every one of us in every corner of this nation that to me is the meaning of juneteenth that's what it's about so let's make this very juneteenth, tomorrow, the first that our nation will celebrate altogether as one nation a juneteenth of action -- >> we are showing you the closing bell here. i want to give you an update the dow closing down about 208 points in the red. goldman sachs the biggest drag on the dow the nasdaq sharply higher, very strong day for technology, closing up almost a full percent. the s&p 500 is flat as treasury yields take a step back. let's take you back to this historic moment in the east room of the white house and president biden. >> but we still have more work to do to close the racial gap and vaccination rates. the more we can do that, the more we can save lives today also marks the sixth anniversary of the tragic deaths

at mother emmanuel church in charleston, south carolina a killer, motivated by hate, intending to start a race war in south carolina he joined his victims in a bible study class. then he took their lives in a house of worship it's a reminder that our work to root out hate never ends because hate only hides, it never fully goes away, it hides. when you breathe oxygen under that rock, it comes out. that's who must understand that juneteenth represents not only the commemoration of the end of slavery in america more than 150 years ago, but the ongoing work we have to bring true equity and racial justice to american society, which we can do in short, this day doesn't just celebrate the past, it calls for

action today i wish all americans a happy juneteenth i'm in a moment going to sign it into law, making it a federal holiday. and i have to say to you, i've only been president for several months, but i think this will go down for me as one of the greatest honors i will have had as president not because i did it, you did it democrats and republicans. but it's an enormous, enormous honor. thank you for what you've done and by the way, typical of most of us in congress and the senate, i went down the other end of the hall first and thanked your staffs because i know who does the hard work. [ applause ] they're down there they're at the other end, but i thanked them as well god bless you all and may god protect our troops thank you.

now i'd like to invite up while i sign senator tina smith, senator ed markey, senator raphael warnock, senator john cornyn with jim clyburn, representative barbara lee, representative danny davis, chair joyce beaty, and sheila jackson lee and miss opal. you should have my chair all right.

>> thank you i've got three more. >> did anybody else -- oh, i'm sorry, man thank you, man. >> thank you >> all right >> president joe biden signing into law the 12th federal holiday of juneteenth, marking the end of slavery in texas and

in america, what he called a really, really, really important moment in history and he also said it is one of the greatest honors he will have as president. but he wishes his grandchildren were there the last time we had a federal holiday established in this country, martin luther king jr. day, that was back in 1983 so what's going to happen now is that federal employees will get the friday off because juneteenth this year falls on a saturday i think next year it's on a sunday and companies, a number of them, have already been giving their employees off. i know nike, adidas, google, twitter, have already given their employees off. we'll push some of these ceos and find out ohio companies are dealing with it. one of the questions, mike santoli, is whether the new york stock exchange would close i guess it's a little too close tomorrow so the stock exchange will remain open bob pisani saying they will consider it in the future. we were talking back at mlk day in the '80s and how long it took

the exchange to acknowledge it as a felderal holiday. >> i think it was until the mid-'90s before the stock exchange made it a holiday not every national holiday is a closure day. >> this day is not. >> veterans day they're open but like every company, the new york stock exchange ultimately owned by a private company, they'll have to figure out how to acknowledge it. >> later in the show you will hear from music superstar pharrell williams who's been pushing for juneteenth to be a national holiday he's worked with his home state of virginia to make it a holiday there. it is recognized in a number of u.s. states. he's also working with companies to acknowledge this holiday and give their workers time off and doing all sorts of things when it comes to trying to bridge the gap. >> great day for people who have campaigned for this like him let's pivot back to the market of course the day on wall street has now finished

the dow was down 0.6% or 210 points down 407 at the lows so nicely off the low. the s&p was flat at the close, the nasdaq nicely higher, z0.9% tech did have a very healthy bounce as yields pulled back the 10-year yield having ended the session -- >> stephanie linker highs along with tiffany mcgee from pivotal advisers, mike, just to round off this day the extraordinary bounce but not in commodities and the dollar. >> right obviously in large part a reaction to the pe srception of what the fed did in terms of paying attention to inflation. it really what today shows you is the direction that most short-term money was leaning which is to say short bonds playing for higher yields into a lot of the inflation assets like

commodities and probably leaning against growth and towards cyclicals. so all those trades that have worked well for a bunch of months got shaken out or unwound a little more severely today it's not clear that that's because the market has decided it's a new ball game and the whole macro picture has changed or whether it was positioning shock. i mentioned the fact we had this splags expiration tomorrow. the s&p has been really sticky around these levels. by the way, many more stocks down than up today so the mega cap growth rally did cover a lot of that up. >> kerry firestone who's a contributor making the point that it was a risk on day. it wasn't just about the googles and amazons and facebooks. you saw a strong bid in names like twilio, peloton, some of these names, steph, that had been usnder pressure. a lot of the ark names what did the action tell you >> yeah, it was a pretty fierce

pro rotation, especially if you are positioned the way i am, but it really comes back to you've got to be diversified. you've got to have a barbell because this has been a rotation year like we've never seen quite frankly. up until the last month, value had really been outperforming growth now we've seen growth kind of take over again. the xle is still up 42% year to date the xlf is up 42% year to date and the xli is up 14%. i can go on and on and on. yeah, these stocks in these sectors were very, very crowded. by the way, the xlk was only up 10% so that can seek some catch-up i think they were crowded, these sectors. i get it i think you have to embrace a taper. i think a taper is coming, it's just a matter of when. is it at jackson hole, is it the fall but they are not tightening. so therefore i think growth will continue to run hot. inflation will continue to run hot in certain areas,

particularly wages i think you still wanting to have exposure to the reflation reopen kinds of names. again, you want to be diversified so you don't get hit on a day like today. >> there's only 11 sectors and you named four of them so you can't go on and on that much longer, steph. but we totally take your point i want to dive into one of them because it did have a big pullback today the banks pulled back significantly, despite the fact that we're talking about more inflation and the economy doing well is this a buying opportunity when you look at wells fargo down 6% by the close today or a chance to rotate the names citi is down 10% so far this week. >> it's hard, wilf, because these stocks are still up anywhere from 30% to 60% year to date and they have had a remarkable recovery. they are not going to work if you have a flattening of the yield curve. but that being said i don't think you're going to see a flattening of the yield curve continue for much longer i think in the next couple of

weeks we'll get earnings and earnings will be good. these stocks are still very attractive they are going to be able to give out more money, cash to shareholders in buybacks and dividends, so i think they're attractive again, they're up so much, so let things settle a little bit i never really play around a fed meeting. there's so much noise. but we'll get opportunities to look at quality companies that are pulling back. >> so, tiffany, in this extreme tug of war that we saw today between growth and value which led the s&p 500 bang on flat to borrow a phrase from wilfred. >> it wasn't bang on. >> 0.04 is not bang on energy fell 3.5% so how do you balance out a portfolio with those extreme moves in opposite directions >> so i think stephanie mentioned this the key i think that investors

should be thinking about always is diversification and so we always think that it's a good time to buy growth and especially tech. we are a little bit more slanted toward the growthy side. and for us we don't really care -- well, we care less about the price in which we buy those names because we are going to hold those names long term but i do think that diversification is the key it really depends on as an investor what your goals are, where are you, how your portfolio is positioned. but also really kind of thinking about not staying invested, first of all, not kind of, you know, getting a little bit scared about this rate hike that might come in an over year and really staying invested in equities in particular of course also having some bonds as well. but even on the equity side, we clearly saw this shift to value.

but don't be afraid of growth. and then also in particular diversifying across style and size, right? so also small caps which are having a really great moment but also represent a great opportunity for growth as well. >> let's get to adobe's earnings kristina partsinevelos has those. >> there was a double beat on the top and bottom we're seeing earnings per share at $3.03 that's 22 cents higher than what analysts were expecting. we're seeing revenue coming in at $3.84 billion a beat pretty hefty at 3.72 but that's the estimate. but what we're seeing going forward is that adobe's guidance for the third quarter is quite strong they're expecting earnings per share at $3 and revenue guidance at $3.88 billion so both of those numbers were much higher than what analysts were expecting hence the reason you're seeing the share price climb a little

higher right now back to you. >> thanks, kristina. testif tiffany, do you have a take on adobe at this level? >> this is tiffany i just got cut off. >> we'll come back to you in just a moment. adobe was getting pushed into the faang at times >> it's done quite well. and i think there has been a separation between the adobes and faangs which are stupendously profitable as opposed to the more speculative stuff. so it's at a new high with this after-market move and fits right in with a market that was a little more geared toward picking and choosing among some growth stocks when the cyclicals had a little bit of a comeuppance today. >> on top of the good performance. a nice pop after hours up 2.6% stephanie link, tiffany mcghee,

sorry for the shortened market wrap-up today. thanks for joining us. when we come back, bradley tusk on why he says the white house needs to move faster for regulation on self-driving cars and trucks "closing bell" back in a moment. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change. some say this is my greatest challenge ever. but i've seen centuries of this.

with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) the broader markets taking a dive earlier in the session but ending the day off the lows. the nasdaq gained almost 1% near record closing highs joining us now, bradley tusk, the ceo of tusk ventures and was

an early investor in uber amongst others a quick broad take on the markets if we can. obviously not asking you to pick apart the individual day moves, but does it make sense that the nasdaq is so close to a record high when we do see the fed talking about starting that tightening process in the months ahead? >> i think it does i think we have to get comfortable with a little bit of cognitive distance here. normally we decide if rates are going up and the fed is concerned and if inflation is going up, that's a problem and, therefore, stocks should suffer accordingly. but rates are going up because the federal government has pumped trillions of dollars into the economy which on one hand certainly is going to impact inflation but was also critically necessary to keep people afloat and businesses afloat and has done a lot to help us get through covid and recover from it. so the fact that we have a covid recovery alongside higher inflation rates to me is unusual, but if you think about

the context that we've just lived through, it makes sense. >> what do you make of lina khan as ftc chair >> i don't know. i can sit here and make up something because we're on live tv but i'm not going to because i didn't see it. >> biden's pick for ftc chair. >> oh, sorry yeah not super surprising biden, i think, faces a lot of pressure to look like he is being tough on big tech. if you look at the polling on a google or facebook or really microsoft, anyone, people feel like their privacy is being violated, their data is being stolen, and so you're going to see people, both ftc, fec, anything where there is potential regulation, you're going to see them play into that theme. >> bradley, i wanted to ask you

about bitcoin because i know that you are an early investor in coinbase, right, and still continue to hold the stock. >> yeah. >> you need to school your candidate, andrew yang, on bitcoin a little bit because he was on this show and we asked him about his plans to make new york city a bitcoin hub and asked about some of the environmental concerns that go around that and he said we weren't going to mine it in new york, which i don't know how you create a bitcoin hub in new york city without having it mined in new york city. what's the story there >> yeah, it's a good point look, to me generally speaking, the solution for the environmental problems with bitcoin is renewable and especially hydropower. it happens to be that upstate new york has a tremendous amount of hydropower capacity so i do think that we could mine bitcoin in new york. i don't think the physical mining is likely to happen in new york city unless we try to really suck up the east river and the hudson river to create enough power to mine more

bitcoin. but i think some of the more intellectual work could be done here in the city and some of the proof upstate could be done upstate. >> just one other on regulation, you'd like to see more come out of the biden administration when it comes to autonomous vehicles. >> yeah, i would for four years just nothing happened at d.o.t. in the trump administration around regulating autonomous cars or trucks. and while the sector has made a lot of progress, while we saw wamo raise another $2.5 million the other day and seeing testing still continue and results are coming back encouraging, fundamentally it can't really move forward until the federal government says it can we're at a point now where we know autonomous vehicles will save lives, save time, save money, reduce accidents, and it's incumbent upon us to get it on the road. we've had a biden administration

in for six months. pete buttigieg is supposed to be tech forward and is a young guy who thinks a lot about the future i think we should see some action because more bureaucracy is not going to cut it. >> bradley tusk, thank you for joining us always good to get your thoughts. >> thank you for having me. when we come back, reopening and reconnecting online dating service match just making its largest acquisition ever we'll discuss with match ceo gary swidler. look at shares of fox trading higher after announcing it is increasing its current stock buyback plan by an additional $2 billion. thste ock is up 1.4% after hours. we'll be right back. the rx crafted by lexus. get 1.9% apr financing on the 2021 rx 350. experience amazing at your lexus dealer.

welcome back to "closing bell." match group announcing the closing of its deal to acquire video technology company hyperconnect match group, which owns tinder, hinge, ok cupid, has seen its share price rise more than 35% since the start of last july it's been a little more stagnant in 2021. joining us for an exclusive is the ceo and cfo gary swidler

analysts say this does remove a bit of an overhang on your stock and they are excited about the total addressable market explain what this deal does for you. >> yeah. we're really excited to have closed the deal today. it's a big deal for the company and we're excited about the future there's lots of great stuff going on here. right now before this acquisition, we addressed single people around the world, which is a big market for sure and a market we've done really well in but now adding social discovery where you can be single or in a relationship really increases the market that we can go after and just creates even more growth opportunities for the company around the world. >> so how does that work we typically think of match as you're single and you want to meet somebody. >> yeah, look, i think now that people have moved more and more online, more of their lives are online, not only can we serve people looking for romantic relationships, but we can help connect people for other purposes as well, to meet friends, to meet people who have

similar interests, and potentially to do other things as well down the road. so the online communities are just burgeoning, they're growing significantly. and we're the best in the world at connecting people that don't know each other for different purposes this creates massive opportunity for us. >> gary, does this acquisition add more tech differentiation for you or more geographic exposure, because they're big in asia, right? >> it adds both. it adds a big team that's highly capable on the engineering side for us in seoul, south korea, 400 plus strong team there a lot of knowledge of the asian market a lot of knowledge of the gen z market a lot of their customers are on the younger side we think they're really good in a number of technologies, in a.r., in video specifically, and we can take a lot of what they do and bring that to some of our brands and really broaden the offering that we have on some of our brands to help people connect.

so there's a lot we can do with what hyperconnect does it's a highly capable company, a great company, and we'll be able to plug in a lot of what they do across our portfolio of brands. >> when it comes to the monetization strategy, is it still a subscription model, which is how investors think of you, or is there something else that you can tap into here with this new deal? >> well, we are a subscription-based company primarily but we have learned over the past few years to do more and more on an a la carte basis. hyperconnect is actually a little opposite of us. they're much more subscription and much more a la carte or consumables and very good at understanding how consumables are to be sold and how customers like to buy consumables. so it's a mixture now. going forward for us it's going to be a mix of subscription and consumables. that's a way we were heading anyway as we expand in asia where the

market is a little bit less typically focused on subscription and more focused on consumables, this plays into the opportunity for us in asia to tap into the consumables interest in that market. >> gary, just to finish off, i'm wondering what the engagement has been like in the last month or two in apps like tinder and reopening has occurred does it mean more dating or less dating virtually >> i'm sure if you've been walking around the streets of new york or other cities in the country in the last little while, you can see things are coming back very strongly. people are going out, they're socializing. they want to meet people and enjoy themselves clearly our apps like tinder, hinge and others stand to benefit from that reopening and that excitement that people have to get back out there. so we're seeing that roll through our businesses in the u.s., we're seeing that roll through our businesses in the uk, in israel, in other markets that have done well from a vaccination standpoint i'm confident as that rolls through the rest of europe and

on into asia, we'll see improvements in our metrics as well in all of those markets. >> the summer of love i think is what they call it. >> my point is whether people just do it organically again, in person >> i guess not, gary, right? >> i think people with him meet using our products and go meet people in real life. something that's been harder over the last 14 months. we play very well into that, that people wanti to go meet people we're the best at introducing people to others >> gary, thanks for joining us still ahead, pharrell williams on president biden signing lengislation making juneteenth a national holiday. plus jpmorgan making a deal to expand its business overseas. more on that coming up later on "closing bell.

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her announcement coming just hours after rafa nadal said he would skip both events to rest, recover, and help prolong his career. guilty pleas in today from a st. louis couple who gained national attention last year for pointing guns at social justice demonstrators. mark and patricia mcclauskey find fined said the people were trespassing and feared for their lives. he is now running to become the next senator from the state of missouri. in courthouses across the nation, judges are facing a mountainous backlog of cases texas officials estimate it would take five years to clear the current cases. they're even looking at bringing back retired judges to help speed up the trials. tonight the prosecutors overwhelmed with caseloads and what they're doing to get justice, on the news, right after jim cramer, 7:00 eastern, cnbc sara, back to you. >> shep, thank you see you then

shep smith. when we come back, president biden just signing a bill making juneteenth a federal holiday up next, our conversation with grammy award-winning musician pharrell who launched a campaign last year calling on companies to make june 19th a paid holiday for employees. what he has to say aboutid's ben monumental move when "closing bell" comes right back ved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com

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president biden signing the juneteenth national independence day act into law earlier this hour the first federal holiday created since 1983 it officially marks june 19th as a day to commemorate the end of slavery in the united states the move comes just one year after grammy award-winning musician pharrell williams launched a june 19th pledge calling on companies to make it a paid holiday for employees i spoke to pharrell and asked him what it meant for him to see it finally recognized as a federal holiday. >> well, i think what it would mean to all of us as americans is that like we're finally acknowledging this really important part of history as it pertains to african-americans and african diaspora there's been a lot going on in this country ever since we were enslaved and brought to this country. and just, you know, every

acknowledgement is symbolic and significant. here is yet another one where it's like two years of actually being freed and having our emancipation but it not being observed or respected by, you know, the landowners and so here we are it's a beautiful thing to have it federally acknowledged. now we have to have the corporations to step up and actually make it a paid holiday as a part of their operational mandate as well. >> we've seen some progress on that front and i know you've worked with some companies like adidas. >> yeah. >> who you've got a relationship with are you satisfied? there was a big rallying cry last year at this time to do this from companies. are you satisfied with the progress we've seen? >> we can be appreciative, right? and i am appreciative to adidas, 100% but i think that satisfied is a very different -- that's a whole different like study in itself,

right? i don't know that we could ever be satisfied, right? we should always try and strive for, you know, equality in this country. equal pay, no discrimination, and not just for us as african-americans, but just like lgbtqia, latinx brothers and sisters, latinx community as well there's just -- women's rights there's just so many things that we have to fix in this country and oftentimes the african-american culture gets skipped over. >> beyond juneteenth, we talk to so many companies here on cnbc every single day and executives that are focused on diversity inclusion, boosting the numbers at the management level, at the board level, the pipeline especially of black employees.

what would you tell them on this issue of how they can do better? >> the founding fathers were just that, they were founders, you know they were just like a founder of a company. they were entrepreneurs. but that hasn't been afforded to everyone so we want to make like these opportunities more equitable in every job space. >> i know you're doing your part and you've launched this new vc fund/nonprofit to fund black businesses and mentor them how is that going? >> it's called black ambition and thank you so much for asking it's going really well for us, it's about, you know, we launched -- we're launching a prize for the greatest like ideas for a business but if you talk to, like, the less than 3% of vc founders in the private equity community of african-americans and latinx, they'll tell you money was very hard to come by but the hardest thing was the mentorship

we're working with bridge span on the mentorship and some of the other companies that have supported or donated are also mentoring as well. that's going -- that's going super well and by the way, it's something that we did in partnerships with historic black colleges and universities, which is super important because there's so much amazing talent that come through those doors. they don't get enough light and enough attention so we felt like partnering with them and bringing in bigger corporations like chanel and adidas and nike. we felt like that was going to be the way to shine the light there. >> one of the businesses you mentioned, adidas, obviously you've been working with them on a sponsorship relationship for the better part of a decade. this company ran into some issues around diversity last year, faced a sort of reckoning

that led to their head of human resources stepping down. since then the company says there's been progress when it comes to hiring and promoting some of its black employees. is this anissue that you've addressed directly with the company, with the ceo? >> many times. many times the thing is, is what i had to learn when you're dealing with a company so big, they often are not as nimble and agile as we want them to be. and i think they learned a very -- they have learned a very important lesson and it wasn't a cheap one. but they're big boys and girls they know how to get up and keep it going but it was an important -- it was important that they really take a real true -- a real true diagnostic look at the way the company was being run and just

like any other corporation, wanted to see what they could do to improve and they realized that diversity is one of those things if you're going to have a company that's global, then it has to reflect the energy and its leadership that is global. also these various sectors and what they call bus, business units, making sure that there was a great reflection of the diversity of the people that they're being sold to. adidas is smart because they know like their consumer base votes through what it is that they buy and so, you know, instantly you started to see the culture growing and evolving because they knew that this is where the world is going i was very proud of that they really did put their money where their mouth was. they -- you know, $200 million into looking at diversity and thinking about things from not only the black and latinx culture but also native americans. and they put $10 million into

black ambition as a partnership. it's been really, really, really great. black ambition is doing great. we've raised north of under $50 million in a year. >> we've talked about black ambition you've got a skin caroline, a podcast. you have a lot going on. what is the priority right now for you? >> you're asking about business, but i think it's bigger than that i think it's just about trying to remain as class as i can to my mother star, which is being a servant wherever i can, not only to the public but to my family and to my god and just trying to be as empathetic as possible, humble as possible, grateful as possible, and again, just being appreciative that's my priority i know it was a very etherial

answer >> our thanks to pharrell williams obviously what it means to him as someone who lobbied and continued to do so for companies. he said now the onus is on the companies to give this day as a paid time off holiday as it's been recognized as a new federal holiday. >> awesome interview. up next, mike santoli heads to the telestrator with a closer look at tech we'll be right back. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

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the nasdaq outperformed the other major averages today, closing just below its record close level. let's send it over to mike for a closer look at tech stocks mike. >> nasdaq outperformer today, still lagging the broader market year to date it puts the nasdaq composite in a pretty interesting spot. th the third time in six months it's making this run at that level. there's no such thing as triple tops the third time usually has a better shot of being a breakout rather than a breakdown. 14,200, it's crossed it a couple of times 10,000 more on the nasdaq composite. pure coincidence but it's easy to remember right now. take a look at tech relative to the industrial sector of the s&p in terms of valuation. it's been interesting. obviously tech typically had this big valuation premium through the years, even as recently, there you go, into late last year

but then industrials kind of caught up. people loving the diversified industrials as a play on the global recovery. of course tech used to be considered kind of an industrial sector it's been a long time since that was the case now they're just trading paint going back and forth with whatever is the premium but it does tell you that growth is less expensive, value is less cheap and that's why i think there's value is less cheap, there's more give and take in that relationship on a day like today with growth up 1% and quarter and value down, guys >> thanks for that explanation up next, jpmorgan spicing up its gil banking portfolio, we break down the big bank's new overseas plans, next 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,

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[sfx]: happy screaming [music ends] next a "fast money" special, three words that sent the apes bananas >> naked shorts, yeah. >> what's driving the moving in amc, with the biggest players in the tread, "fast money" next on cnbc jpmorgan chase agreeing to buy british online platform nutmeg, one of the uk's biggest robo advisors, $4.9 billion in assets under management. jpmorgan said the acquisition would compliment the plans of stand alone digital bank brand in the uk later in the-year.

$5 billion under management and according to sources $1 billion acquisition so not going to move the needle massively for jpmorgan, fantastic deal for nutmeg selling out, it's interesting what it implies for the scale in the uk, purely digital only, no branches but expanding from just a retail with chase and banking and credit cards to some form of wealth management product. in the short-term i don't think it effects the share price but gives two option values on two aspects, one, could it seriously disrupt a big banking market, we'll see, that's a percentage probability case rather than slow growth case, but think i think they're using to experiment in a market that's kind of similar to the u.s. what banking could be like under their own brand, chase, not fin which kind of failed here, in a world with no branches in a future of digital-only banking by expanding this into a wealth

product as well on day one they'll launch later this year with a full banking suite for retail investors, digital only will be interesting to see how it goes. they'll use this as a test case how banking could operate without branches we'll see. >> it's interesting because it would seem like there's so many relatively similar fintech start ups that a company like chase, like jpmorgan would have their pick of the technology, there's so many technology layers involved, the back end, the user interface, that you think basically it's seen as a vehicle for just throwing the products through. >> we'll have to see it's going to be interesting of course they have a big footprint, not like they'll change that overnight but similar banking market they can test everything out and stress test it how it might work if they do want to shrink their branch network here in a period of time. >> which is happening right? >> across banking not jpmorgan in total because they've used

this opportunity to expand into few going raffys they weren't in with a couple key new branches so in the short-term not shrinking the total branch count but everyone will over the course of the next decade. >> goldman sachs was a big drag on the dow the big story in the market, mike, i think was the ferocious bond rally. >> yeah. >> which sort of goes against a lot of the storyline which the fed is going to start looking at tapering, at rate hikes sooner, end of easy money. might have expected the opposite at the same time got a big dollar rally and big tech rally. >> i think tapering is not bearish for longer term. i think dovish surprise yesterday i think longer term will go up after qe ended previously you saw the long end come in the long end will respond to longer term expect asians. th expectations the short end tied to how fast the fed will go.

i think today was all about where was their concentrated positioning. it got completely 13 smoked out whether short dollar, short bond or long commodities. >> a lot commodities have been strong, gold not so strong, meant to be a hedge. >> negative yields became less negative. >> we're out of time on "closing bell." "fast money" starts now. live from the nasdaq market site over looking new york sit city's time square this is "fast money" tonight's trader lineup tim seymour, dan nathan, jeff ngd a guy adami. tonight we're taking you inside wall street blockbuster what is driving shares of amc, you'll hear from two of the biggest traders joining us straight ahead and former trader at citadel sounding the alarm saying the market is broken and pointing the finger at his old firm saying the retail trader is getting a ra