or equity in a private company into a roast i.r.a they have to be public, and that would solve it. >> then what he did is took the paypal profits, sold off some of it, bought other shares, and up they go. >> if this becomes a reason they tax roth i.r.a., that would be terrible for most people thank you for watching "power lunch." "closing bell" starts right now. >> it does indeed. welcome to the new york stock exchange new reports on wall street as the nasdaq and s&p 500 hit new highs. president biden set a deal has been reached to create millions of jobs. more on that in just a moment. bank stocks are rising, 4:30

p.m. eastern time. we've got full coverage, of course, and expert analysis when those experts hit. jobless claims came in a bit worse than expected, topping $400,000 first quarter gdp matched previous estimates, 59 minutes left to go in the session. the dow is up 350 points, were on record close watch all a around first key earnings are heading after the close, including nike, fedex and many others. we'll also speak with the ceo of carnival cruise lines nike and bank stress tests.

>> for us, yes, exactly. contributing to your 4:00 crazy hour we're watching this 3:00 p.m. hour, mike santoli tracking the rally. mike, start us off with the rally, and also on bonds, are you surprised we're not sigh a bigger jump in yield >> not really. these over eight years this is hundreds of billions a year, so i think it was baked in enough so that being said, bonds are perfectly firm, not given clear kind of necessarily opening for the value stock trade to really -- very balanced market today. it's pretty much not either/or what you see here is another in this pattern these pullbacks, all right around the 50-day average. we recovered it, a bit of a tentative breakout sometimes you get escape velocity, sometimes you don't.

i will say we're already getting up toward the top of one of these bands again. we've been able to ride that higher we'll see if it does continue. in terms of the balanced market, a couple cyclicals versus a couple growth sectors. in the equal-weighted industrials in the s&p this is basically a faang-like, and this is software it's been a convergence. this is an either/or market. and then you have a bit of giveback here. these are converging up that way. so it's not necessarily a shift in leadership. it is just about about kind of a convergence as basically it's comfortable for everybody at these levels how is sentiment doing it's moderate, given the s&p 500 is again at a high this is the week le index of tactical fund managers

and we actually had a pullback from relative levels this is are not we mentioned the dramatic reaction to the infrastructure package one place, though, you did see -- if you just look at an intraday, you know, big spike up, around, what, 1230 to 1:00 when that news came in so what's getting priced into some of these stocks >> i hate to be cynical, but it's the play you run, if it makes sense, if it holds, obviously it's net positive. this is tough, it's into the private sector i just don't know that it matters enough for a caterpillar

that had been wobbling below the highs. if it really is another phase. this is a driver of a longer phase of performance for that group. >> let ace pivot now and dive in on the potential infrastructure deal the president just speak moments ago. jumping as sara was mentioning >> well, wilfred, president biden not only announce a deal on infrastructure. now, this agreement that we need includes 579 billion in new spending, $312 billion going towards transportation $256 billion would be for other infrastructure biden says it's not everything he wanted, but they're historic investments. >> this signals to the world that we can function, deliver and do significant things.

these investments represent the kind of national effort that throughout our history has literally transformed america, and propelled us into the future >> the white house says they would be paid for through a combination of measures. repurposing covid funds and economic growth, among other things but biden said that democrats should pursue the rest of the agenda through the reconciliation process at the same time, and that he will not sign a bipartisan bill if the other piece doesn't come along with it. guys >> on that point, ylan, are pelosi & co. in the house -- >> house speaker pelosi said today she does not believe the house should move anything in that chamber until the senate, where that is all the action,

tension and negotiation has been, until the senate has moved. biden said he was on board with that plan as well. right now we are really waiting to see if there are enough votes, democratic senators willing to vote for a bipartisan plan and enough republican senators to be on board with something that might be bigger than they wanted if it can go through, if they can promise their progressive members they're going to still move forward, then we can see something happen, but then there are hurdles here president biden made clear there's no guarantees in this process, but he is hopeful that everyone will get on board. >> but no corporate tax changes, right? >> not in the bipartisan framework. there are no tax increases alternate all in the plan that was negotiated between republican and democratic senators however, if the rest of biden's agenda there could very well be tax increases both on

corporations and on the wealthy. he did say he thinking the tack code should be fairer. investors need to pay attention to that, because it doesn't mean that the tax increases are off the table. >> ylan mui, thank you helping that, dow is up 1%, s&p 500 both tracking for a record close. shares of palantir have been on a hot streak, rising today on the back of a newspaper data partnership. up next the c.o.o. joins us. you're watching "closing bell" on cnbc. retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better.

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the faa to support its safety activities. palantir's c.o.o. joins us now on "closing bell." very good afternoon to you. >> good afternoon. thanks for having me >> i want to hit on this partnership with datarobot to what extent is this helping you in an area you're already working on is this not already what you do? why do you need a partner in this space >> we've been working in the field over the years to deliver value to customers, include throughout the pandemic. it marries the best of both products and quickly put it into operational applications for end users, and their ability to bring the best of a.i. modeling. to those who need those predictions. this is crucial.

retailers have had a rough go of it >> does it also signal that you intend to make a much bigger push into retail and corporate customers? >> our michelle business has been growing strongly. we're going to continue investing, we see retail as a key area we're in 48 industries from energy to mining, and we're continues to invest in all of them. >> u.s. on this deal, shyan, what does it do to the market size and potential reach for the customers? does it widen it if so, by how much >> i think it expands it there's two key things -- time to value, how do you have it

make an impact quickly that's one piece the other piece is offering solutions highly opinionated, that build on the back of 15 years that we have done, and getting those tools into the hands of the frontline factory workers, who otherwise is installing rivets. >> we want to talk about, shyam, this four-page ad that h highlighted the work you do with the military to help find ieds, suggesting you can also apply a similar thought process to help companies avoid metphorical landmines in that business to what extent was it to help the pr, versus an attempt to drive sales? >> we've been investing extensively and i think the results are there. this software is literally

battle tested. 15 years of r&d, nearly 3 billion -- the moment in the pandemic we helped over is 00 commercial and governmental organizations. complicated situations we had little time to develop, whether it was the uk vaccine program or the u.s. vaccine program or just general management, and we're going to be proud about that, and we're making that to go to all prospective customers. >> how much work are you doing right now when it comes to fighting covid-19? which programssh most effective there? >> a lot of work as i mentioned, over 100 organizations from manufacturers, folks who make automotive devices, ventilators, people in the medical supply change, raw materials, all the

way through public health officials, those who had to build supply chains. i think what covid has shown is the last two decades in incremental efficiency probably left us more vulnerable and less rye sell yen i hope that we have demonstrated by helping these 100-plus organizations we can be part of that solution going forward. >> i just wanted to ask about your life so far as a public company. you did finally go public last year it's been a roller coaster ride, it's been embraced by retail traders, and so-called meme traders. you've welcomed the individual investors. you've doane attention for the ceo being the highest paid all in all, how has the culture changed? >> the culture remains strong, we're highly committed to the

outcomes we provide. we're excited to have investors who really have dug in to understand the product and appreciate the 15 years of deep tech investment that made that did hit its moment in the pandemic this has translated to the bits side, where we obvious find we have shareholders in the room who have a deep understanding of the product and a compelling opinion of how it transformed their own businesses. >> it's up 15% this year, thank you very much for joining us on the deal >> thanks for having me. we have 43 minutes left of trade. dow zooming higher by up almost a% s&p 500 up, heading for a record close. nasdaq heading for a record close. tesla is having another strong day since april. it is up a breakthrough therapy for

alzheimer's, that's what the fda is calling a new treatment from eli lilly. that stock is up 8%. and don't miss or first conversation can arnold donald, from carnival cruise lines the ten-year yield a bit firmer today, some reaction to the infrastructure deal. tesla is up there again at oaf strong day apple and amc both lower, and lilly makes the cut off this alzheimer's news we'll be right back.

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in addition to announcing the breakthrough therapy, eli lilly said it would file for accelerated approval of the drug it has completed phase two trials with small phase two studies. it's already started phase three the expectation was that the company might wait for more data before filing for approval, but after we saw the approval of biogen's alzheimer's drug on the

same accelerated pathway, based on the ability to clear the plaque, which is the -- you can see that lily's stock jumped on the decision, and is up today. biogen is declining, because it looks like it may face competition if this application is successful. guys, there are questions about whether eli lilly, if it gets approved, comes into a market as a lower price point. so some expect there could be room for a potential price war coming here. at any rate, expectations of more competition guys >> it's really good news, for so many who have been hoping for it for so long. how long before the drugs can be put into market and used by family >> well, biogen is supposed to

be launching anytime now i think it's cleared june 7th by the fda. the launch will happen in two weeks, so we're try -- it's an infused drug, so it's not an easy thing, like a pill, so systems need to be set up, but that should be started at any time in terms of lily, if the application approval is accepted, it's about a six-month approval timeline, so maybe the beginning of next year carl bass said inflates is running hotter than people think. he'll join us in the latest instatement of our curb your inflation series plus the -- and we're bring you the results next hour, with an all-star panel, as we head to break, little changed today. around 149

we'll be right back. that building you're trying to buy,

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had 266 would make for a record closing high. first time we'll see a record high since 6/14, so really not that long ago. the dow is up a percent, you're seeing strength in groups like financials at the top of the list higher treasury yields we have the stress tess t coming out in the next hour communication services, energy, technology, health care, consumer discretions, utilities all strong today the only group that's trading lower is the real estate

sectors. bank of america says it may have -- the firm moving its rating they had earlier given no raiding, it happened without any material catalyst. shares of rite aid are dropping, though, after posting a mixed quarter. revenue coming in below expectation. the here's rite aid's ceo earlier on "squawk box." >> we're being very cautious, because we had a miss last quarter due to the complete meltdown of cough/cold/flu, because there just was no cough/cold/flu we didn't realize how far down -- how evaporated that

business would actually be. >> a loss for rite aid, obviously. medicines and supplies are profitable, but for society, i guess we're wearing masks, being more careful. >> i guess it would be more interesting to see how much people wear thus masks earlier, even if the rules don't suggest it for covid that's been a nice factor. >> a change in habit i think i will always wear a mask on an airplane. >> i think i will on the subway. >> i always get sick after an airport ride >> after that, not wearing it as much as possible rahel haus the update. good afternoon teams of rescuers are going through what's left of the condo in miami that collapsed overnight. it's been complicated by a fire in the rubble the poll should be much higher. 99 people are still unaccounted for, though that doesn't

necessarily they think all of them were in the building. it is conclusion of his news conference t. president biden said that the federal government is ready to help once it gets a formal request from the state. >> i've made it clear, and i say to the people of florida, whatever help you want that the federal government can provide, we are waiting just ask us, we'll be there. >> shepard smith is on the scene and will be reporting live on a special edition of "the news" tonight at 7:00 p.m. and a stockpile of bricks, this building was vacant, and no one was hurt amid a surge of unruly passengers, tsa says it's resuming self-defense training for flight crews the program was paused due to covid restrictions as we heard our phil lebeau report yesterday, it's become quite an issue. >> the videos do not entice you

to fly, but rahel, thank you. ylan mui has breaking news >> the how judiciary committee has passed all six antitrust bills after about two days of debate the last was the ending platforms monopoly act that passed by 21 in favors, 20 against. but now the next stop would be the house floor. house speaker nancy pelosi says she wants to see the legislative process play out, but the house judiciary commit year passing all six antitrust bills. nasdaq remains higher. fed officials say the economy is rapidly improving, up next we're going to -- in the next installment of our curb your inflation series.

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pressures in wages, and sadler points out the -- due to its fixed $1 price the stock is do you think a couple points today. >>. rich more fed chair says he expects it to ease as we go into the fourth quarter, and noted as an example, day letter car rental prices will not be $400 forever. james bullard has a different perspective. still further to the up side, as to simply make up for past misses quite a split developing inside the fed. joining us is kyle bask, chief

investment officer at ayman capital. which side do you fall on? >> sara, great to be here, look, we're going to see a short term i think down in inflation. the initial inflation -- it may play out to be true, but i think, sara, when you look at the broad money in the u.s. system, from 1980 to 2010, is vacillated between 50% and 60% of gdp post the global financial crisis, it moved up. now we're approaching 90 so in the 1 1/2-year period since covid started, we have introduced 34% more broad money in our system. so we're going to see prices stay high and move higher over time if the fed continue to say

expand the balance sheet, which i think it will. >> if that's your why, kyle, you could just say there's asset price inflation, and where all of that easy money has landed. it doesn't necessarily mean we're going to be paying for everyday goods at higher prices, does it? there's a difference, and then more basic commodity inflation. >> i guess if you don't drive, eat or rent cars or build houses, then i guess inflation won't affect you the u.n. index is up 40% in six months the price is move aggressively, as we speak. china is starting to arrest some of the ag economists for talking about the shortage so when you look across the world, you see the price of basket materials, price of everyday things you and i have to buy to exist.

so the answer is, yes, i think asset price is here to stay. the u.s. is still short 8 million jobs from pre-covid levels, yet retail sales are 22% higher so what we're going to see is wages will start to move aggressively every being owner i know is having trouble hiring workers. they're having to pay much higher wages to find workers so the cycle is beginning and i think it will continue. >> should people be buys commodity indices or is equity the best hedge for this? >> i persone personally think the best hedge is the hard assets so if you're in the marketplace, you want to own commodities. if you're in the real world, i think you want to own productive real estate. you even want to think about buying rural land like we're seeing in the u.s. so i think you want to own apartments, retail, you want to own rural land

why ratherown hard assets than equities today, because i think we're just seeing the beginning of these population moves in the u.s. >> i can see the rationale for that, carl clearly it's not easy to see people buying by chunks of agricultural land, so for the broad investor, usaying avoid u.s. equities, because inflation will hurt them, or are they still a reasonable place to be >> i think when you look back through history and equities' performance, they keep up with inflation, called it 85%, 88%. equities will do fine. i just think that, when you're really looking to stay ahead of it, there are ways, you know, in the real estate markets you can add a fair amount of very low-cost leverage to keep your real returns much higher than you can in the equity markets. anyway, i think there's many ways to tackles the inflation

months monster, but i think listening to and watching the numbers that are purported on cnbc, as we all know, those are chain-weighted numbers if you take off -- if you remove chain weighting, we at our firm believe we have inflation running plus 12. it's a pretty repressive financial situation for savers >> i'll just keep arguing on the topic in the spirit of our any curb your inflation series, if you believe it will last why are we seeing the ten-year yield, and lower expectations of inflation in recent weeks and the mod brit prices roll over. i notice it's not the ultimate inflation gauge, but you mentioned housing. >> on lumber specifically, you probably not a lot of lumber mills closed during the covid

pandemic you have a supply-and-demand mismatch if you look at the price of timber it moved to a less so lumber will come back into some sort of normal range. but look at the average price of a car, the price of food, are any of those prices in your life, have you seen them going down in the last few years i haven't. >> we can write all we want, but you're and your your bank account is the final determinant. i can tell you in every single aspect of live, i see inflation. kyle bass, thank you for joining us. coming up earnings from fedex and nike, kicking off a cannot-miss how.

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let's kick things off. mike, climbing out fairly simply, it seems everybody is in place, suggesting not all that much change from last week. we got a sort of overdone repositions cleared out, and now i think it is the market becoming more in balance we had decent but not really blistering hot economic data i think everybody with the fed speakers coming out, trying to soothe the raw nerves that were created, you think it's all working fine it gent doesn't seem like it has a ton of momentum behind it.

they're all kind of working. financials, industrials, and technology with the nasdaq hitting new record highs >> it's really nice to see, too, right? we've been talking about rotation all year long so, today you're seeing a bit of both that speaks to the barbell strategy we've been talking about. you have some of the economically sensitive companies. today we got it in spades, right? com services, and benefiting from the infrastructure package. even healthcare, that's been catching a bit so i think the other reason we're rallying is because of this infrastructure package.

it's bipartisan, very good, and we need it as well, but i think there's -- in the industrial economy. 7.7 jobs are raed around it, so this will help the job market as well so what do we go stimulus galore, good economic growth, a bit of inflation and ten-year since below 150 that to me is a strategy for risk-on assets, and that's equities and a weaker dollar. >> this after a note from jpmorgan last night, saying based on discussion with a number of discontinued the beyo made sausage sandwich. in a statement, dunkin' can dout

says, in part we maintain a strong relationship and continue to work together for plant-based options to meet consumer demand. we were seeing a move lower in beyond meat. i called you an intrepid reporter for digging this out. it has to, right >> it's not something more of a debade among the pricing >> put it this way, we don't know for sure, but every single time in the past you've seen a product like this largely discontinued from a store or restaurant, it's because demand was not there. if demand was good beyond meat

would have more pricing power. the stock shot up when it was discussed, that was a few years ago. do you think there's more pain ahead if you are qualifying this as a weak demand >> i'll be honest. i'm surprised the stock is hanging in there today it's impressive that it is it's stock that almost exclusively love by retail investors, and they're more erratic sometimes. they're great investors, officely >> two final questions what percentage of beyond sales

was dunkin', and does this have some implications for other rivals >> we don't know what percentage of sales it was. they haven't destroyed that. what does it mean for plant based in general i don't think it's a great sign what we are seeing we have seen mcdonald's canada, beyond burger, that didn't stick. tim horton's in california tested out, but that didn't stick. even no mcdonald's has partnered with beyond, they haven't launched anything et and the impossible whopper seems to be doing okay. >> you're brutal today, ken. what is your price target? >> it's somewhere around 100 i forget the exact number, but certainly well below where it is now. >> good to have you here

thank you. >> certainly making the calls that today we tested it at my house i tried to give them beyond bur burgers. >> i never would eat one out of choice, and i was surprised how nice they were. >> my kids rejected them >> did you tell them it was something different? >> no, no, they just figured it out. >> they want their normal waygu fillet steaks. frank? >> fedex shares, the shipper experiencens, it's great to be -- in a move to ease congestion the country also experiencing

late deliveries. in q3, it showed a big year-over-year improvement back over to you >> frank holland, thank you so much >> what are your views on this one, steph >> i don't own it. i've owned it in the past. by the way, ups also had an analyst day a couple weeks ago and they were very conservative. it's about guidance for fedex. we know volumes will be double digits, but we want to see, in terms of the gheitance, they have to put up earningspower for next year for the street to be happy it's well liked, and the expectations are quite hive. eye also interested to hear about tnt, the acquisition they made in 2016 it hasn't been synergistic at

all, problematic, so i want to see if they have some momentum i'm not involved in either they've had a nice run >> remember, there's that piece of it where it's global freight. it's moderating right now definitely it's had the best of its profit reevaluate in the pass. >> nike also set to report the earnings revenue of $11 billion some other key points to watch, any response to the backlash of the cotton controversy

it missed on revenue it did say that was temporary, so we expect that to subside china is the question market here, and just how much that business got hurt. it's also the growth driver of nike and now represents 20 percent of the sales >> this is not a company that's like 10% it's becoming a huge chunk of their business. >> mike, the stock really gaining credit for that last year rather than this year >> nike along with, in my view, disney and starbucks, during the pandemic they were anointed as the ultimate american perpetual

brands it's not as if the story has fallen apart, but. >> they find themselves in odd position, down almost 6%, do you buy it ahead of earnings >> i don't think so, not at 43 times forward estimate i do try i love the company i think the quarter will be just final. gross margins, to your point, end point, that's really helping, driving the story >> remind me, in netflix they always tell us about the best-performing shows? with that, will we have a list

of the best performing players >> certificatesly, the return to sport has been so helpful. >> we have the olympics, which ked didn't know if we would necessarily have it. >> i just bought a new england shirt. you always do when it's a big tournament >> do you want me to wear it up my suit? sara says i have to. always good says you have seen this loose burst i wonder if everyone got loaded on the apparel

>> denim can't be the hottest thing going, and still everybody is for exampleated on athleisure it's one or the other. >> you need to be in shape to get into the skinny jeans. >> two minutes left, mike, internals. >> they are strong i mentioned earlier people have been squinting a bit at how the rally has not been super-broad if you look at the ratio, today is taking care of some of that >> up and down, pretty similar on the nasdaq. that will help out that piece of the puzzle it's outperforming, but it is

below the high the equal wait is not doing at well unclear if it's much of a fatal flaw here. and clearly very much an amount of pressure on the volatility index, just how calm and orderly we've had. it's definitely a set upthat's accommodative. we are up 324 points, 4% on the dow. not set for a record close on the dow, but we are on the two other indices. na nasdaq, both said for report closes only two sectors on the s&p are lower, the utilities and real

estate sectors the close. we do have a reporter closing high for the s&p 500 it's still some ways from its record close >> very strong finish. 30th record close for the s&p 500, up 2021. welcome to "closing bell." pretty strong all day, and then got a bump when we learned of a bipartisan deal that president biden did announce between democrats and

republicans, coming in at a little less than 600 that was key s&p 500 up 0.6%. it hit an intraday earlier in the session. s&p very strong. most sectors did finish higher financials were actually the best performers. tesla have another very strong day. actually up more than 9% microsoft, paypal, facebook, nvidia, all contributing

also a nice finish do not go anywhere we have an enormous hour of breaking news ahead. first earnings from nike plus we're counting down to the fed's banks stress test. and carnival ceo on his company's biggest quarterly loss, and jump in future bookings he will give an update later this hour first, to you, mike, it seemed like an indecisive market. >> there were three days in which people had a chance to sort of sell the strength for monday and say, okay, we really are back in that mini-volatility zone that didn't happen i would say quiet strength is

the key. low volumes from open to close travel on a net basis from the s&p 500, so certainly firm, definitely today you have kind of a brought support from all parts of the market, but it's not a rush to reprice new information. it's much more about the continued loose financial conditions, earnings going in the right direct, and no real reason to fight the trent in the short term >> what's your take is that all incredibleally >> yes what we have seen how that's been shifting, i like the idea of this quiet shift, but it has been happening where the market used to reward lieuer volatility

stocks so this is an interesting formation we're seeing where they're actually getting rewarded in the market again why are we still -- it's more than double, did that give you any cause for concern? >> well, it's too high, right? i think we're working through it i think the infrastructure bill will go a long way, so i think that's a positive. if you look at the four-week moving average, because that's what i look at, it has a smoother mechanism

it's coming down pretty sharply. i think it will take some time when i think about the fed, which by the way, fed is very dovish in hi testimony this week but when they're talking about transitory things, i don't know how long transitory is so they're they're going to let the economy run hot, so we have to get ready for that. i think, by the way, we're going to see higher rates as well. that's good for cyclicals that's why i'm overweight that part of the market >> it seems like structurally they're higher in this space. >> i don't get why they would be a weekly number of new people

filing, which should not be happening. >> but i do think there has been now, because of the all the different programs and people are basically applying or reapplying, if you look at the ways the infrastructure bill -- this agreement is proposed to be paid for, integrity in the unemployment claims program was one of those things. it's pretty wide ly assumed there's massive fraud going on eye not say there aren't a lot of people out of work legitimately, the market is not reacting, because it's not sensitive to the ebbs and flows as it has been in the past >> it has been -- >> and i think microsoft is the great example of, you're not really buys a story, you're buying this kind of -- it's

everywhere, obviously they're doing the new windows system form that's a big of a news, but for the most part it's a perpetual machine for cash flow. it's the kind of stock that works, when people are not in the mode, but all kinds of stocks, as you guys mentioned, it's not work. >> it's not wonderful stands to lose from these antitrust bills. >> are you still a buyer >> i don't own it. i sold it. i made good money in it. it's another one that the valuation just got too rich. under the circumstances a proxy for quality tech, and it is, you know, a compounder, right? if you can get your hands around

the valuation, i get it. it's pretty over-owned i understand why people do own it, but within technology there's so much other interesting names there's the cybersecurity. those are big, big positions for me >> i'll jump in on the microsoft. one of the things we found is that the trends going into the pandemic are really starting to reestablish them lives microsoft was growing well before the pandemic hit. it really puts some rocket fuel behind them, but the movement to the cloud doesn't go away. >> let's get to fedex frank? >> fed objection falling after a beat on eps and beat on retch.

revenue the company releasing the fitsial year 2022 guidance above the estimate of $20.37, but again, shares of fedex falling almost 3.5%. we'll continue to look at the numbers and get back to you. >> frank, thanks so much gina, disappointing for fedex. >> they were really running up if you look forward, it's not necessarily poorly valued, but so much movement anticipating this number that was bound to correct with any disappointment. >> mike, your first take it was priced high in turning. >> obviously the gains moderated this year, but i think the guide yanks is not huge incremental

boost, if i'm looking at it cosmetically plus, you have to remember what did we go through last season? the reflexes almost always sell the move i think expectations senior already so high that, you know,■ look, it's not that expensive. i just feel like a lot of good news is priced in, up 17% on the year the disappointing piece of fedex to me, it must be on the margin

side we want to hear about margins and pricing strategy and parcel growth >> a i think the best first half, and it's come off those highs. a lot of the high friction bottleneck stuff that, yes, is helping pricing power, but also is complicating backlog, and the airlines are 10% off their highs, as a group. which is nothing terrible. it's just that they -- you know, we got there in a hurry at the moment of maximum reopening momentum. >> gina, final thoughts. what's your intole between overseas and u.s.? >> obviously u.s. has been the

place to be right now. wove hitting it on the vaccine front, reopening the economy, but as you follow that vaccine story, that vaccination story, i should say, i think we're going to start to shift towards places like europe. hopefully eventually japan we think that will be the next place to start looking firms i think you need to follow your vacci vaccinations. >> great to see you both, as always nike has been the worst performer. next we'll break down the earnings. plus carnival 'ceo aaron doled is hire. and we're just minutes aft from the stress test we're back in 90 seconds

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were the only stood in the red dow now down close to the close. ongoing weakness in gold pulling back a bit as we see fedex sliding. >> you know, bask last year, or the omnichannel beneficiary, so we'll see if there's any giveback it seems to me the street loves the overall story. >> and nike is out >> it's a big beat

nike coming out with >> it look like sales were much higher than expected up 96% the expectation is around 11 billion, so that was also a pretty nice beat because of the boycotts. i will say it's a slower growth rate so there's definitely an impartial from the boy counties and backlash the fact that it grew and grew double digits. let's see if i can get any other we knew it would return to

growth because of the supply-chain issues. these are huge comps because of last year, but even before than analysts had expected. profitability comes from a sharply higher margins the story there in the digital gross margin increases to 45.8%. in other words, they focused so early and so big on digital. >> mike is going to peek at the athleisure >> it's growing this time because teefgt able to open it we look forward to any commentary on guidance on the call we don't get that on the release and what they have plan for the

olympics, and the return to others and how they're capitalizing >> they point out inventory is down 7%, so obviously that gets cleaned up pretty much everything looks to be in place. >> down just 6%. >> recovering their loss for the year they also tend to trade up where they do make news on the outalong >> after reporting its numbers moving on, shares for carnival, out with the second quarter business update, calling a $2 bill chron adjusted net loss but booking volume for future up 40% from last quarter. carnival outlining plans for 42 ships to resume operations by

november arnold, great to see you. >> always good to see you guys >> so set this up for us where are we with the u.s. cruises for the remainder of this year? >> concerning u.s. cruises we're excited. we finally will get people back on the ships july 3rd out of the galveston, july 4th out of miami. later in july we'll have "carnival miracle" out of seattle, and we have ships sailing elsewhere around the world. so we're excited to finally get going, and to get guests back on board. >> everyone is talking about the enormous expended demand for next year and the bookings that

were coming through. is this small deposits >> as you know, we have a huge base of repeat cruisers. and they have gone a full year without beingic to cruise. so you marry that with the fact we'll have a staggered resumption to cruising as you said if the intro, we all have about 42 ships sailing by the end of our years so demands is strong >> what are you doing about vaccine?

florida has fought the cdc on this what is the policy >> the policy is we have to be in compliance. so number one for us is compliance of environment protection, and health, safety and well-being of the guests, and of course or karn natural family shipboard and shoreside personnel. so everybody has different rules so, in general, we're going to be sailing largely with vaccinated cruises we will have some opportunity for people who are unvaccinated on some of the cruises, but primarily unvaccinated we'll be under a cdc directive able to sail with 95% vaccinated crew, and 95% vaccinated ghosts. but we encourage everyone to get

vaccinated. >> we have this very contagious variant delta making its way to the u.s. and spreading globally. what do you do about an outbreak if there is one. >> there won't be any outbreaks on the ship. simp reason is mostly -- we're also -- if you're not vaccinated, there is a whole different set of protocols you have to be tested, there's addition at protocols with mask wear, either a the probability of an outbreak is very, very low, if almost nonexistence, with the combination of most bests beg vaccinated keep in mind we have sailed in europe nearly collectively almost 400,000 people during the pandemic with nobody vaccinate

ed that's with universal testing, of course, so the testing really makes a difference but now the vaccinations are a game changer, and vaccinations are the things that will keep people safe. >> despite rates, despite the ships launching out of u.s. ports, are you still angry when you look back on the last couple months could you have released this point -- >> i wouldn't say i'm sangry, but of course there's a level of frustration. everyone is trying to do what they think is the best, but in the end, we would like to be

treated similar to other sectors. >> everyone isn't tested, people have been in hotels for an extended period of time, so there are ways to management this we just would like to be treated similar, and other sectors of society, and thank goodness for the great work by the world. >> as you get ready to set sail, that's a lot better than is the time last year, but can you just -- to race money, to cover costs, what you have planned for financing? >> we have over 14

transactions -- 15 now with a return term, so we raised $23.6 billion. we did a report-breaking term b refinancing in materials of avoiding annual interest that would have otherwise occurred. so we have liquidity well into next year, and more importantly well into the ability to get our full fleet up and going, and we'll have cash generation and maximization will key >> just finally, demand in asia and europe as good as the u.s. >> asia is a different ball game the demand could be there, but of course china is basically locked down when it comes to cruising australia is, too. as you know, australia is a

strong cruise market but we'll be ready when they open up. europe is strong, and we see great demand there, and are actually sailing more ships in the near term than we are in the u.s. >> a big milestone coming up thank you for joining us see you on carnival. >> i appreciate it, you guys. >> i appreciate it, you guys. at the lates and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. coming up. satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab.

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welcome back hi, rahel. >> authorities say they don't know for sure how many people were in the building we do know that one person is confirmed dead so far. calling it a tragic day, governor desantis toured the scene, and also promised that rescuers will not rest until their job is done. our own shepard smith is in

florida for the news, and that airs tonight at 7:00 en. and rudy giuliani is blasting the judges who suspended him from practices laws today. >> how can they say -- without a hearing? they haven't had a hearing, haven't questioned me, haven't questioned witnesses. >> and now you're up to date wolf >> thank you very much it's time for the fed. hey, leslie. >> all banks tested came in well above the thresholds during the test they imposed restrictions that capped payouts those limits will

be lifted july 1st this is the third stress test over the last year with an extra test inserted to account for the mick impacts of covid. randy quarrel saying today that the three hypothetical recessions passed the tests. until that framework the fed said that the 23 banks would lose a combined $470 billion, the bulk of which would come from loan losses the aggregate capital ratios would slip to 10.6%, which is still more than double the minimum requirements we're announcing most of the announcements on monday.

>> so now we wait for the banks. from that we can work out how many room neff to return capital going forward. that could come any minute now, but likely to be in a few days' time that is important to reflect -- the banks are pretty strong at the moment let's bring in david edison from hennessey funds, stephanie link is also back with us, and mike san toldi. we most likely know the buybacks, because they don't have to go through it, as long as they say above the s.e.b. --

but the scb number will allow us to work out how much capacity they have. >> presumably if they announce a new authorization, that could give you a conclude as to their thinking even though there wasn't a lot of suspension pare, just the removal of a bit of doubt right there 55% decline in the s&p, more than 10% unemployment that's what we went through in the recession. >> in terms of increased capital return, compared to last year, a couple names that are expected based on consensus to see the biggest increase, including wells fargo, bank of america, morgan stanley is not a key swing factor the next few days, learning how much

capital return will take place over the year ahead for you? >> this much part of the thesis in owning the banks. they currently are buying back a lot of stocks. so this was definitely part of the story. look, these companies have ample capital. i'm not surprised they all passed they have more capital than the december stress test, so think about it this way. the companies with the most excess capital, but are expected to see berne returns, wells fargo, bank of america, citigroup and pnc. you can pick and choose your

names. wells fargo is my biggest, because it's a restructuring story on top of all this other stuff. >> david, psychologically, it's sort of a return to normal from the rye strikz that some of these banks faced. >> it's fascinating. we had three tests testing or risen scenarios, yet the fed was working hard to prevent that scenario from hams the fed is saying, well, that may happen, but we're never going to let that happen it's almost like the stress test doesn't matter, but i think it says there's going to be much bigger buybacks that many people think. it will go on for longer and the dividends will be significant. it doesn't mean the stocks will

double or triple, but it's going to be hard to be short them or sell them into an environment where they're wildly over-capitalized, have tremendous amounts of earnings and they're going to do something with them to hopefully melt their shareholders. >> should they by favor dividends more than buybacks than any point in the last decade david? >> i've been on this show many times saying i don't think buybacks are that valuable i've never owned a stock that went up fivefold it was all about executing you growing earnings, being relevant in the system and i think that's part of the challenge, but i think the dividends are more important. if can you have a dividending that twice the dividend on the dow, and then, of course, you know, three times the ten-year

yield, that puts a bid in the stock, which is relevant long term. >> david and stephanie, thanks for joining us all the bankses moving despite the results being largely expected we are, of course, waiting for he details that could come any moment still ahead, much more reaction to the stress test reaction to the stress test results when we're joined by [sfx]: happy screaming sh sheila bair. [music ends]

up next, sheila bair on the stress test results, and outlooks y us what a surprise surge, two kepieces of data means for the kepieces of data means for the market and the economy, coming . a plan that can help grow and protect your money - now or in the future. with an annuity in your plan to help cover essential expenses, up on "closing bell. this is what an annuity can do. find the right financial professional to show you how. learn more at protectedincome.org. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪

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bank stocks are moving higher, following results we just got from the federal reserve on the stress test sheila, a clean bill of health, banks can be back to normal, is this a good idea >> well, yeah, i think it's appropriate to resume some more normal activity, but i don't think it's a good idea to be distributing a lot service capital in excess of earnings. i hope that doesn't happen we won't know until monday a lot of analysts are expecting it will. after the great financial process, the system in play was designed to counter cyclicals

prior to this pandemic, they are -- and then, of course, i think we're tell offer capital relief again i think it's important for investors to banks to build those buffer >> i would say, yes, sheila, i agree on the same analyst notes it's fairly northwest i were while he agree that -- that isn't the starting point that will only happen if they are deemed to have a capital

level significantly above the severely versed scenario levels. >> it's a fair point if they losing the stress tests a lot, it's all about risk-based ratios, they don't make banks assume balance sheet expanse, they don't make banks assignment continuity they're providing more information to banks about their models, so the banking are better able to adapt so i think sewer assuming a left

that i am not. basics -- look, they got bailed out, the federal government stepped in the federal government stooped in with massive stimulus they essential backstopped the market big underwriting fees for the banks so this is shouldn't be getting too full of themselves about the money they're sitting on right now >> i guess i would agree with downtown josh brown, saying we shouldn't even do these stress

te tests. >> it's kind of gotten to be a dog-and-pony show, and, again, you know, i think having a leverage ratio tests was hugely beneficial to the banks. it's all about risk weights, and how risky their assets are, and that's just now highly suggestive process so, yeah, i don't have a lot of confidence anymore we may agree, but for different reasons. >> sheila, thanks so much for joining us. >> happy to be here. >> thanks for having mer. up next, a double dose of surprises. mike santoli have two pieces of mike santoli have two pieces of data that could have a big keep it. you're gonna need it. kick pain in the aspercreme

impact on your money that's next. hey, it's good to see you. the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. cisco. the bridge to possible.

stay restless, with the icon that does the same. the rx crafted by lexus. lease the 2021 rx 350 for $449 a month for 36 months. experience amazing at your lexus dealer. santoli for a look at surprises in the economy this is one of my favorite charts that you do. >> this is a great picture and we sort of broke the chart last year on the city economic surprise index for the u.s went way below the long-term trend and shot to an unprecedented level so it is way ahead of economist forecast. they have no experience modeling a u.s. economy growing at 10% rates or better. that is what is going on right now. but what is interesting, we came down as expected and just bounced off the flat line and came back up normally when you come off a high, the forecast adjusts and

you undershoot them for a while before it rises again. so it shows you the economy continues to do better in general than anticipated by the way, this little peak right here early this year, that was exactly when boond yields were peaking so this is feeding right into the treasury market expectations for growth now there is also the citi inflation, this is a wild one. what is fascinating is that look for the entirety of the 20106789 we were almost undershooting inflation. just a couple of blips above it and this goes up through may this is only a monthly number because we don't get inflation readings that often. but this honestly supports the transitory idea. it is such a huge overshoot to the upside, it clearly is driven by oneoff factors and things that can't be sustained and facetiously say it raises a denominator for the future so you can't have anything similar to the rate of increase.

it is dramatic but it does fit into the scenario of decent economic growth. >> or that in fact inflation is running at 11% or 12% in reality. >> there is something called the billion prices world index, it is not the government and it said wha with carl bass. i'm go with mike thank you. up next a check on some big after hours moves for fedex and nike plus starbucks ceo kevin johnson making some mmtscoen to jim cramer cramer hear what he had to say nextmatg across devices to bring organizations together. protected by industry leading security sign integrates what the tools are already using so you can grab signatures across organizations and even time zones to save you money, materials and mileage. making it easy to sign here from anywhere so you can do more everywhere.

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they've had to ramp up staffing. so we've had some shortages in the bakery case. that is true but you look at what we've done over the last couple of months to get us in a much better position, and you just think about it when you turn this on so rapidly, it really tests the elasticity of the supply chain >> you could catch that full interview tonight at mad mn. i think he said no shortage of cups any shortage, even if it is just, it sounds like it is transitory. >> and testing the elasticity. takes you back to high school economics. we're watching nike. >> big reaction after hours after a huge beat on earnings, north american sales come roaring back the nike direct which is a proxy for online sales, and china growing at 17% shows there is momentum for the brands and it is across nike, it is across

wholesale and it is across jordan and converse. we'll see if they give guidance that keeps the momentum go b here. >> and banks up and fedex down. >> things are clicking into place. we'll see if there is anything to follow through on a friday at the end of the a strong week. >> hallelujah. >> not yet that is going to do it for us on "closing bell. "fast money" begins right now. >> live in the nasdaq market site overlooking