just as the reopening is starting, whier we hitting a speed bump. >> the weaker dollar. >> true. >> and then if you're a bull on copper, what energy infrastructure -- it could help. >> it actually should. >> it's all adding up and the trade is not working. >> kristina, thank you, eamon, a pleasure "closing bell" starts right now. thank you, kelly welcome. i'm sara eisen s&p 500 sets another intraday high, and dipping negative, along with the dow, as with he head into the close. >> i'm wilfred frost following the release of their capital allocation plans they are in the red. we'll talk much more about financials in a moment case-shiller home prices saw a record spike in april while

consumer confidence hit the highest levels, and moderna is the top performer in the nasdaq 100, hitting a record high after the company said the vaccine shows promises in lab tests against variants, including the delta. we just slipped into the red moments ago. we have a big show in just a few minutes ariel's rupal bhansau, and later marty walsh will be with us ahead of friday's key jobs reports. we'll talk about the impact of unemployment benefits and much more. first up, let's focus on the stories. mike santoli joining us to break down the big moves in the bank, and jeffrey hart from piper sandler. mike, set the stage for us. >> you know, i don't know if anything particular hit the market, except it's been a low

energy, low march higher this would be, if we finish positive, the fourth dana row up for the s&p 500. so it has been kind of a grind below the surface not a lot of energy behind it, i would say. we've been kind of consolidating for a couple months now. a lot of focus on the fact it's not been a particularly broad advance. today it's the consumer discretionary stocks that are doing the most, along with apple and microsoft, up 1% each for no particular reason. so it seems as if the megacaps are doing what they can to hold things together. look at the u.s. versus the rest of the world you know, this was tracking pretty well up until the end of 2020 here you see more recently s&p making new highs you have the rest of the world rolling over just a little bit here obviously you have uptick in covid cases elsewhere, a bit of static in the global trade

rebound storiy. that's something to watch. just as the equal weighted s&p is not making new highs. so it's become a much more selective and spotty advance at least at this phase of it. here's morgan stanley and goldman sachs against smaller investment banks everries also had a dividend increase they don't fall into the bucket of the systemically -- but they've been big outperformers with really a lot of issuance and a lot of deal flow, so that's something worth watching, just in terms of a gauge on how hot the markets might remain. >> just remind us, the valuation question comes into play when we hit new report high after new record high. the s&p is trading what, 21-ish times forward earns. a little over 21 times forward

earnings the forward earnings estimate continue to say go up, so a rule of thumb, it's $200 roughly speaking in forward earnings for the s&p. i think we won't quite get there in the next four quarters. the question is, will we return to that pattern where next year analysts will be too optimistic after being way, way too pessimistic. that's the normal pattern. after you get one of these rebound years, can you rely on what 2022 will look like it's already the end of june, and almost in the window where markets are dialing ahead to next year. let's dive deeper into the banks. goldman sachs to $2 a share, morgan stanley doubling it, wells fargo planning to also libel its dividend it used to be at 51 cents a

share. meanwhile, bank of america hiked it by 17% to 21 cents. it you said 2 you said it. citi, though, did not commit to any increases at this stage. jeff hart, great to see you today. thanks for joining us. does morgan stanley deserve to be the clear leader of the big six banks in reaction to yesterday's news >> morgan stayly was the big winner in my mind. if you go back the last five, ten years, we've seen numerically a lot more capital return -- and they've been allowed to buy back or pay out dividends. it looks like the full implementation taking the buyback up another 20%, those are big numbers. it was good to see morgan stanley allowed to return some of what we have thought for a

long time was a lot of competent capital. >> is the share price reaction, but also, if you pick apart of the oner other ones, suggest that investors do want dividends more than programs the management teams at the banks thought, relative to buybacks. >> yeah, i mean, as increased dividend is nice you tend not to cut your dividends, but as you said, buybacks still kind of lead the way, but the increased dividend does increase some tailwinds in the past, the feds kind of limited dividends, because you could stop buybacks tomorrow, whereas a dividend tends to be stickier, so i think, you know, yet another kind of sign of confidence, the strength in the financial system >> how much do you expect this, jeff, to be a catalyst or a

driver for the share price of these banking, beyond just today? >> well, you know, banks are in an interesting spot. the group is up, what, 40%, 50%. it's hard to say -- i think the path upward is still kind the past of least resistance, i think three do well, but a lot of the things that made me think will do well, one was capital. not only do, you know, our dividend yields end going up, but you have the technical factor of, if you're buying back morgan stanley, you're offsetting your two largest shareholders and then some on an annual basis later on, credit looks really good that's helping these guys a lot of there's a lot of things to like, as well as some things to be more concerned about, like a lack of loan growth and really

low short-term interest rates. >> why is citi down 11% so far this month is it a buying opportunity >> i think it is we got some guidance from the company that made net income in the consumer be under more pressure than we expected. maybe expenses are higher for the firm as well if you look out a year-plus, the interest rate environment will not get much worse from here it's going to get better they're getting the exit markets in place, so i think it's a bit of short-sightedness i think it's a good opportunity to get in historically you want to be buys turnaround stories, as opposed to waiting until it's obvious. >> do you wait to buy the group, whatever your favorite pick is, or get in with the two weeks

left >> i do think that gets timingwise, but i wouldn't -- i think it's going to be a good quarter, probably a surprisingly good quarter on the capital market side. the only hiccup is we're coming into summer, and seasonally, it's selling into summer, so looking at the back half, i think the universal banks will be pleasant surprises for the industrial. >> jeff hearte, thank you for joining us. up next facebook surging following the dismissal of two key antitrust cases. the question now, what will the federal government do best >> roger mcnamee is next the dow crossing back into positive territory, though up less than one point.

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[ "me and you" by barry louis polisar ]

♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ facebook surpassing a $1 trillion market cap yesterday. what is the government's next move in terms of big-tech? roger mcnamee, good to see you. >> it's great to be back on. good to see you. >> first of all, let's touch on this ftc decision.

how big of a setback is it as a whole this their teams to rein in big tech. >> it's obviously a setback. what is unclear is what happens from here. we have in congress, at least in the house of representatives genuine interest in upgrading laws, so that i think got a big booze from the judge's decision. how much that will affect facebook remains to be seen. i think the core issue is that 40 years ago we decided to invert antitrust laws, so previously had been focused on concentrating nick power we posted something called the well fair standard, which said there's no limb to how much this

was a perfect sample -- but i think it reacted correctly it was not helpful to the government and their muscle tone for regulation has gone flabby. >> is one of the takeaways realistically to see anything meaningful, we'll have to see legislation on all parts and side come together and is that likely >> not necessarily the state of texas has an antitrust case against both google and facebook for price fixing, which is unaffected by the decision yesterday that case, should the federal government decide to take it up, which is entirely possible, is the kind of thing that could cause a radical change price fixing is the greatest crime you can commit in antitrust, and is punishable by

prison terms for the executives. for example, the ceo of bumblebee tuna, is currently in prison for price fixing. so from an investor point of view, i think the thing we have to look at is something like water torture, where there will be a constant drip of regulatory things from europe, from australia, from the united states i don't think there's any deathblow coming, but i think in the united states, at least, regulation will take a long time to come through the process, but i think regulation is increases, and facebook has just bought itself a little breather, but i any gugle is city in the crosshairs as well as amazon. >> is this just a repriest or if it shows for all of them

there are laws and precedents, and the judges will enforce that. >> to be clear, i don't think that the judge threw this case out in its entirety. he said you need to come back and do a better market definition he actually showed the ftc has to restructure its case. so i don't think the thing is gone from facebook's point of view, you know, this wasn't a perfect outcome, just way better than they had before. i think the challenge we face. >> but they made it hard going forward. they basically accused them of not being up to define -- >> and there is no real definition. >> that is clearly true, but it's clearly things the ftc could have done to better frame that case under the current interpretation i do expect them to do that.

now you have a situation where companies are essentially setting the rules for our lives, the rules of facebook and google have far more impact on us than the law does at some point that becomes an issue for democracy. i think from an investor's point of view, you should expect that none of these is going to clear the way, that companies will be spending more of their energy, more management time fighting various regulatory things, some which i think are bound to be successful i think google is the most vulnerable with amazon being in the second place do you see any signs of the

executives like mark zuckerberg being proactive to right some of these wrongs and/or do you blame them if they're now? >> to see clear, they have gotten really good at their communications. >> they have had done a good job of keeping enough policy makers offgrad. you think about the people who were at the insurrection on january 6th, those people had been manipulated to believing things that weren't true that happened on facebook prim primarily, but also on other platforms. historically we faced that before regulators have stepped in and said you need to make changes. i do not see the fundamental

change we would need coming from any of these companies i think we'll need some en engagement on this from an investor point of view, they should welcome antitrust historically they've been the investors friends in tech. each time it's let to whole new industries >> for now it did rally off this relief yesterday roger, thank you for joining us. >> thank you after the break, truly extraordinary, that's hout one strategist described the latest house price out today. we'll talk about the

record-breaking rise in home prices, next. and don't miss the interview with marty walsh wel rhtac 'lbeig bk. uno, dos, tres, cuatro! [sfx]: typing [music starts] [sfx]: happy screaming [music ends] this is andy, my schwab financial consultant. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, 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. here's me learning about schwab's satisfaction guarantee.

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welcome back the latest read on home prices showed a record spike in april diana olick has a closer look at the red-hot data this was a wow, diana. >> reporter: to say the least. they saul an annual gain of 14.6% up from a 13.3% increase in march, according to the case-shiller index, the highest in the industry going back more than 30 years. all of the 20 city index cities saw accelerating price gains

five cities -- charlotte, cleveland, dallas and denver -- saul their highest the inventory rose slightly in may, but still was 21% lower than may of 2020, all according to the national association of realtors, so really prices had nowhere to go but up >> astonishing the numbers the question is whether it's started to slow down a bit in may and june we'll wait and see >> it's slowing purchases, though. understandably ahead, lee coombsen saying while wild moves point to a broken market structure we'll talk to joe moglia about that. and we'll speak with rupal

and where she's looking for growth as we head to break, a check on the bond yields. about 148, is where we stand at the moment the dollar a bit higher today. we're back in a couple minutes

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just about 30 minutes left to go. let's check in on individual market movers, moderna, one of the best performing in the nasdaq 100, after the company

says the vaccine shows promises against variants the stock up more than 5%. tesla under pressure, though, down to $660 citing increase in competition and operational delays ge gets on pop with a $16 price target ge up 1.5%. time for a c innocence news update with eamon javers. >> general motors recalling more than 38 on,000 older suvs, for some it will be a second recall to fix a suspension problem. saab 94-sxs. reportedly a grain plan was sold to sonny perdue shortly

before he took office, this according to "the washington post." at dm said it was not sold below its value. england, a most glorious victory, england has beaten germany. the win moves england into the quarterfinals. wilf, i don't think to jinx it is it too early to say it's coming home? >> it's not too early to dream, but i know from experience not to get ahead of ourselves. >> did england win today i'm just kidding. >> i love rahel and shep, but just today, to have the other significant soccer fan in the news seat. when we come back. ariel's rupal joining us

take a listen. >> my approach to investing is much more to do with looking for those companies that can generate cash flows and bring them back to me in the form of recurring dividends. after the break, she is joins with us some of her top picks for the second half. "closing bell" will be right back the dow is up 22 points. [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey.

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u.s. averages on pace to close out a strong first half of the year our next guest says the majors are overvalued nice to see you again, rupal it's good to have you. >> likewise, sara. go ahead. >> talk to us about your strategy from here you don't think the action will happen in the major averaging anymore. why is that? and what do you do instead >> i think it's well known that valuations are very reach. typically they tend to be a precursor of the full returns. people forget we have the decade if you look back then, you lost money, but if you invested in

different-yielding stocks, you actually had a positive return i anticipated that's the playbook going forward, which is why i'm arguing for a repositioning to look at what is the different yield on the underlying portfolio >> where you are you finding these -- >> i'm a stock picker at the base, so -- whether they come with no debt, because debt multiples are something that people don't look at you you saw in the case of general electric stocks, the stock collapsed when people realized they had a lot of debt on the balance sheet, and the different collapsed alongside. you don't want a high dividend-yielding portfolio which is a head fake

some of the best companies can be found in europe in the healthcare sector, in cases like oncology roesch, novartis, they have strong balance sheets, and very reasonable -- -- >> when we look at european stocks as a whole, often people point out the valuation multiple between european and u.s. stocks, but what gives you confidence that that can meaningfully change over the next five years or so? >>. >> i'm not arguing for a rerating of the stocks versus the u.s. companies i'm just saying they're undervalued. i would generally argue that health care as a vekdor is offering a good combination of

growth -- meyers squibb, for example, they also have a compelling yield gilead is another example. i think the better opportunities in europe, because they're part of a very end mark a scope of a disrupt i have, and it's not just part of the u.s., so you can get this combination of innovation and growth, and at a reasonable multiple. why not? >> there's a major vaccination gap around the world based on the kung you live in, the access you have, the kind of vaccines you're getting you are wary of investing in certain countries because of the low vaccination rates? >> no, i thinks it's just a matter of time the world will figure out how to

vaccinate itself which is why the stock markets tend to be forward-looking mechanisms despite the news, which is very well known, or the low incidence of vaccinations, the markets continue to go up. that's because they're forward-looking. and i concur it's a matter of time. >> rupal, thanks for your take >> thank you for having me bye-bye. and you can catch more, and highlights from other panelists at the summit by visiting cnbc.com/fa. cathie wood launches an etf and we go inside the market zone next and we take you inside one of the most powerful partnerships tonight they discuss their six-decade friendship, the first deals they did together and what makes

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sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um...

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any close higher would be a record close we have turned higher again, barely, mike, here on is the -- and technology is outperforming against again. it was weak yesterday but what's the over-arching theme here. >> on a tee for the sellers to come in and take a hit at it very narrow intraday moving. it shows there's not a lot of macroinfluence going on. the s&p is up maybe 2% this month. that tells you where the returns are coming from. -- i would say the market is more tired than stressed if i look for the indicators of

emerging threats, i'm not seeing it in the credit or volatility market. >> yes i think was a key indicator. i think a lot of defensive sectors were leading today i think you have to key off of nasdaq and the russells if you look at what happened since april 20 we have effectively gone nowhere i think that has a lot to do with the ten-ee was at 155 basis points again, the shape has certainly change you look at earnings growth as well, but i would agree with mike, you're seeing the -- i do think you have signs that the market is tired, but underneath the surface, volatility is still

moving downward. and you also have the negative correlation between the two that i just mentioned at negative 0.7. you're effectively hedged a bit if you're a trader, i think with recency bias here, you take a look at what the signals that market han giving you. >> is the assumption that profit margins will continue to rise i6r789s i think that's what the implications is, if you look at the published estimates. it's just a residual of people marking up the revenue estimates.

not a lot of people -- i used to a ten or 12% nominal gdp year. now they're being dragged higher, so i think the margins will be a very spotty situation in terms of just morgan stanley and goldman. last week. wells fargo don't 2% is this a sign that banks investor are towards fares, in terms of that relevant balance,

and more broadly, will the markets, is that a sign we're moving out of some of the growth favor? >> it could be, because i think that we've gone to a. >> total shareholder return as a strategy has been working well that factor is working well. when it came to the individual bank, it seems like the margin of surprise was greatest in mornen stanley so i'm not sure the market is outright saying we want differents, though it's more of a permanent return to capital maybe that's one of the reasons why. it is stickier, when you have established a different.

>> look, you know, the cyclical trade has obviously been in favor. i think people were looking for an opportunity to get back into names. over the longer term, i do think, if you sort of have this flattening yield curve situation, you also have the taper on the highsen are these still interesting? i think outside of the cyclicals, if you don't mind, if i just quickly to never, which is another part of this big trade, i think you're seeing some interesting options volatility or option sort of positioning here it's greater than back-month,

which is basically saying you are even though, you have an individual pockets you also have opec on thursday, you have almost earnings like events, with the volatility differential you can take advantage of that fear and uncertainty to a down side edge into the next week. kate >> searching for growth in a new

name it also works with the u.s. military and now the fourth largest holding in arkq. it owns about 7% of the outstanding shares stocks up more than 8% going into the close also looking to launch a bitcoin etf, but it might be a minute before that's actually a reality. there are now eight companies waiting for approval for a similar crypto investment vehicle. >> kate rooney, thank you very much victor is that what the retail investor needs >> i think you have to break down the use case. the three classes are the

longer, most tech savvy, and you have to ask yourself why would somebody lock themselves into an instrument that tracks an underlying 24 hours, 7 days a week gbtc is a good example of this you take a look at the last half of a year, the gap risk on that individual instrument, but from friday to month, you get five times the gap risks. or even a commodity tracking etf, so i think some of those people have a higher risk tolerance. you also have a second use case, that hasn't doone business i think they will likely use these types of instruments to dip their toes into the water, so to speak, but i would argue that's a shrinking pool over

time those that were looking to participate in bitcoin or crypto, in a non-binary manner there's a big group the people out there that want to utilize option, to trade volatility and ranges i think that's the biggest -- high correlation that you see this outside the united states it doesn't really have access to that where you do have access, the feature set and liquidity is still maturing so i think from a retail point of view, the biggest opportunity is to turn them into the binary bets and more strategic long-term, more engaging product, and i think when we see that, i think you have the potential for wider scale adoption, much more engaged in the underlying market.

>> there will be a lot of interested parties for it who may have wanted tothere's nothing differ about the arc coin it reminds me of old stock management firms in the old days, with a money market or short-term bond fund. scott kirby joins us with the highlights of that, phil >> reporter: basically saying over the next five years, we can

do better. it all centering around a big upgrade in the fleet, ordering 270 planes it breaks down like this 200 will be 737-maxes appeared here's the big part. they'll be replays 200 by -- hallelujah, here is scott kirby. >> we had to create the product that customers want. that is what this is about, giving the customers the product they want. we're already in the biggest cities in the country. our hubs are in the best places, but we need to create the product that customers will choose to fly united airlines. >> reporter: it's an old product right now. united has the oldest fleet, if you look at shares of united, there's also a jobs component to this, guys they plan to -- and 2025, as

they upgrade their customer service, that's what this is all about, guys, you talk with frequent fliers, the number one thin about united, they'll sea they have improved, but near not quite to the level of their competitors. >> phil, to your point about tall people, will the seats have extra legroom or just the planes are a bit biggers? >> reporter: the planes are a bit bigger, wilf, take it from somebody who is 6'1", who has taken many regional jets, it gets tiring if you're on a regional jet they know that they know that people prefer a larger jet, a 737-max is a huge improvement. >> good to know, good to hear about. we'll keep all of that in mind >> how tall are you? >> 6'4". my flights are normally longer, so thankfully, no regional jets.

so we've definitely take that. philly bo, thank you >> i like you watch up in the seat where you can't fit. >> i haven't had to do that in a while. mike >> people have been criticizing this little leg of the rally, more stocks down than up, on average. it is the case again today fewer than 1500 stocks, also have a volume skew that is tilted toward declining stocks is the positive spin is we're correcting internally and the overall indexes are kind of held harmless, here is the high beta or risk-seeking etf on a one-month basis. the more defensive names have held steady, but have

outperformed the high beta the volatility index has gotten a bit of an upward tilt, just over 16, that's a year-to-date term, it may be bumping along a very short-term low, maybe so. we have a jobs report, remember, on friday. it's just one excuse, perhaps, for people to do some bidding. there is ready demand for kind of deep downside protection, if you look at the options structure. it seems that people are willing to bet after a half year of good gains. one minute left before the close. dow dipped briefly negative around the top of the hour or so, back higher again so a really mixed picture if you look inside the s&p 500, which is just positive, that would mean a report close, if we can stay here. it's technology, consumer

discretionary and health care, and energy is weaker nasdaq will close at a record high apple, the biggest contributor there, microsoft, moderna is having a good day. some of the media stocks are higher tesla and facebook interestingly are not. there goes the bell, a double record, s&p and the nasdaq ♪ welcome to "closing bell." i'm here with sara eisen and mike santoli 19 basis points of gains for the nasdaq the dow was fractionally higher. but three gains across the major averages, though, just slightly, tech, consumer discretionary and

health care the three positive se sectors, led low by utilities. coming up, labor secretary marty walsh will join us about the future of pandemic unemployment benefits and more. victor jones is still with us, and mark lehman joins the conversation as well mike, to you first of all. so sort of just edging hire, you said tired earlier, and seasonality will be a couple problems >> in a couple weeks july is sometimes hit or miss. another issue is though the rail -- the vigor behind the reopening, you know, cyclical acceleration-type trade, that was basically back in march. it's been correcting ever since as yields have come down, trying to protect the uptrends.

they have definitely surrendered some of the leadership profile meanwhile, growth has rebound a bit, as people have said maybe we buy the less crowded tech performers that's been the push/pull within the market don't see it necessarily changing what is fascinating is some of the analysts defending, saying they're down 9%, so%, and some of that got traction >> when you're looking at the transports versus the chips lately, nvidia making an all-time high. that's been the hallmark of the chips. >> exactly nvidia, they're by far the biggest group right now. transports have been, you know, hit or miss. >> mark, you're pretty bullish for the rest of the year is that right? >> i am. i think we have seen the growth

stocks recuperate some of their losses, and we've seen some of the bellwethers get to new highs. docusign was in the doldrums, but it's sup 50% in the last month. there's a rebound in some of these growth stocks, as well as a reacceleration, which has had a lack of ipos, and i think we'll see more in the second half mike mentioned a bit of a tepid period i see some more -- and portends a better second half for those markets. >> where do you want to be in the second half of the year? do you want to be in the growth names that have outperformed that you have called here on the lower rate trade or stick with what's worked year to date so far, with the financials, the industrials, the centering. >> i want a great point. i think we have seen some of them not have the performance we

saw in 2020, but they continue to gain market share, the top-line growth, so i want to stick with some of the tech names, but the group we haven't mentioned is biotech there's been few besides the vaccine makers of those stocks that have accelerated. i think there will be a second half where they're proving some drugs. i just think that group is underperforming s. because it has been underperformed over the course of the 2021. >> victor, as we get to the end of the quarter, do we think earnings will deliver sufficiently for record highs? >> um, i do think they will deliver. i think whether or not the market yawns like we did in quarter one and sort of anticipates the fact we'll see decelerating growth in the back half of the years or not, i think that's the biggest

question i do think, you know, this was a really light earnings week you've got a handful of underlying for consolidation, micron, and tomorrow you have bed bath & beyond earnings i know it's easy to scoff at the meme stocks here, but this is another story where it's more than just an up-and-down the reality is the demand for thinks call options are creating asymmetric trades. you can sell the 30 call, which obligates you to sell the stock 12% higher, take that premium and buy the 28 calls norm ate the puts are more expensive, but you can sell those calls, buy the 28 put, now you have 6.5% up side it's easy

to raise your hands and say, look, i pass don't ask me where this is going, but if you are paying attention, it creates very interesting asymmetric opportunities. it does mean that you can put on some really interesting asymmetric grades. >> loves the fancy options strategies you're giving me. >> that's what we do here. >> what happens in the second half of the year what if the fed starts tapering? it's been one of the defining features of 2021 so far. >> with some of the retail traders that have gone to the moon here's what i would say. i think people are looking for volatility the places where you can find volatility continue to say narrow i think the positive snag is over the last couple days you've seen some pretty strong signals.

we're up 5% to 6% here, so there are some interesting areas that are creating opportunities for younger retail investors who have a higher risk appetite, bu as you continue to see the vehicles, these mid, low teen levels, that's not creating an interesting environment. sort of, a year ago, when we were all wonder what is going on here, well, the reality is that's what was necessary to attract a new generation of investor without that they'll look for opportunities elsewhere. so make we're trying to trace them as the same type of inve investors if the market provides it, they'll find it. >> we briefly mentioned the

semiconductors, the chips, all leading the s&p 500. barclays is out with a new note, saying now is the time to buy the apple supply-chain names barclays says broadcom is out of favor. that stock closed higher, but underperformed its peers today apple was one of the biggest contributor to the qqqs. what do you make of the call, mark >> think broadly, tech, like we've seen in the past few months is -- as we've gotten -- i hate to use the term -- kind of the old economy i do think that tech will outperform as we see a reacceleration of the economy and the consumer, so i like the call i also like that it's going to and some of the chip makers here, too, that's going to

continue to accelerate top down that's a great call i think you'll see more of that over time, because i think some of the stocks that have come back as a relative value, i think it will temper, as i think the tech trade will reaccelerate >> mike, semis of late, kind of coming back into vogue again >> yeah, been about four months since the february peak. nvidia, you can't really overstate how important that move has been. it's been the one area of the market, the crypto play. so if you look at, for example, the smh, taiwan semiis another huge chunk of it, but that seems to be the story with micron and bro bro broadcom >> a lot of it depends on how

the data shakes out, the economic data. it's kind of a debate right now of what we'll see in the next quarter. we have a stronger confidence read today and that's putting pressure on sales. what will we get from the consumer >> the credit card spending data look good. that's not really forward-looking, so it seems ago if there's still a spending binge underway i think it's questionable whether consumer-leveraged companies have already seen than moyer. the market will not extrapolate this for very long in general, macro, i think you're starting to price in the possibility of a bit of a lull in the growth rate globally. you know, the idea that supply constraints are a cap on growth in the short temple, as much as they are inflationary. >> mark, switching focus, we

talked throughout the year about spacs trailing off do you think that capital market's activity can continue, or is it a bit of a sign of froth out there? >> that's a great question i think we saw a bit of that sign of froth in the first quarter. with ed some promisele gaze, but i don't see it slowing down. i think there are some unbelievable companies that will go public via spac i think ipos have to pay attention to saying all our good is not right, all of our bad is not right. i think there's just tremendous companies that are choosing this route to go public i think investors really have to pay attention, bottoms up, but there's three or four we're involved with that i think will be unbelievable companies that will revolutionize some of the

digitization of the economy. though will be becoming public by spac. we had a bit of a tempered market there i think that is a positive for investors. investing is alive and well. >> victor jones, mark lehman, thank you both for joining us. we will leave it there. >> thank you. up next, labor secretary marty walsh on the outlook for employment and whether more companies should be mandating covid vaccines for workers we're ckba in just two minutes here on "closing bell.

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welcome back secretary walsh, thank you for joining us good to see you. thank you. thanks for having me today the infrastructure deal, as agreed to by republicans and democrats last week, is still on there was some back-and-forth from the president on whether it would be attached to the other bill, he walked that back and now says it's on is it still moving forward >> yeah, it's still moving forward. i've been on the phone with some elected officials today, some congressional folks, talks to advocacy groups. people are excited about this. it's the largest infrastructure bill in history. great investments in broadband, in clean energy, in clean drinking water, roads and bridges, badly needed in our country. >> so what's not fully clear is how it's going to be paid for,

mr. secretary, or whether it does need to be paid for it's obviously considered an investment in our future what is the latest there >> the president has a plan for using corporate taxes and changing the code. republicans came back with a plan, so it's still a fluid situation. as we it into move, i'm sure there would -- there will be many discussions, and surely there's a big desire as well to pass the human infrastructure plan, and the different investments there, so having bipartisan agreement, the first time, quite honestly in quite some time is encouraging to move forward here >> i want to ask for your views on companies requires workers to be vaccinated, and making it clear they need to be back in the office

is that acceptable, in yourize >> certainly everyone has different opinions when people come back to work. i know lots of bitses in this country are talking about after labor day. there's some businesses that want to come back to work now. they have different ideas on when people want to go back to work i'm encouraging people to get vaccinated i was at the indy 500 speedway the other day, thanking first responders, nurses, there was a vaccine clinic, and, you know, i can't comment on about companies mandating, all i'm doing is encouraging people to get vaccinated. >> i've position been trying encourage people to get back to work what have you seen in stats that scrapped the bump up in unk3w4r

unemployment benefits? >> it's hard to say. a lot of those haven't gone into effect i notice the indiana did get rid of the $300 fairly recently. i don't know if we'll be able to see with friday's numbers, if we can break down enough if that's made a difference or not, but certainly we will over the next few weeks. but as we move forward, we'll be seeing more people going back to work, traveling, going shopping. we're seeing more encouragement there. the jobs reports of the last four months is a great way to be, and hopefully we continue to move forward in the coming -- obviously the next few days, and we'll get more and more people back to work. >> unemployment numbers and jobs numbers are what we'll be watching out for on friday we'll also be watching for the wage growth, mr. secretary

is there a chance it's going to move too quickly >> i think wage growth is a good thing. creating opportunities for people, president biden, when he first got elected, when he was running, was trying to increase people's wages i think wage growth is a good thing. most companies have been willing to raise wages and create opportunities for their employees to make more money this has been a difficult year, i think getting people back to work is exciting i think if people are paid better wages, it's good for our economy. it's good for families. >> it's a bit of a puzzle, this labor market, mr. secretary. we hear all these anecdotes about labor shortages. what is your sayingment about how tight the labor market is. why are we seeing jobless claims at 400,000 every week, and so

many still out of work >> i think you put it the best this is a puzzle this is unlike any recession or recovery we've had we're seeing anecdotes all over the place why people are not going back to work, why some areas are coming back slow i've looked at the data, tacked to past labor secretaries, i'm hopeful we'll get more people back to work i would love to sit here and break it down, for you and all the analyst to say give a remarkable explanation, but quite honestly i don't have one. >> where do you stand on the federally mandated minimum wage? >> i support the $15 an hour

minimum wage both federally and nationally i think that in my home state of massachusetts, i afradvocated f that we're phasing it in, we're not quite there yet, but it's creating opportunities for families to earn a little more money. you can't raise a family on the current minimum wage in this country, but raising wages is a good thing i certainly am committed to it as well. >> do you think we'll see months where we'll add a million jobs that was the expectation the last few months have fell short. do you think we'll get there >> i'm hopeful we will see that eventually i think that one thing we should see some benefits pretty soon is the $39 billion in child care that was in the rescue plan

about a month ago was released to states and cities across the country. we should start to see the benefits of those investments. in september we're going to see, i believe, most schools will go back to in-person learning which will free up a lot of times for parents moving forward as well i just requested from my office an updade on covid-19 to see where we are with the different variants i want to see what the numbers look like around the country i'm hearing when i was in indiana the other day, they were telling me in rural areas they're seeing a bit of an increase in the coronavirus, and that's the area, quite honestly, they're having a different time getting people vaccinated. so i need to take a peek and see what we can do in terms of responding it will be great to put up a million job number at some point. i think that could be the

largest one-month gain in the history of the country i'm hopeful i'm hoarere for tha maybe a few of them. >> good to see you, secretary walsh. thank you for being here today. >> thank you. mike >> the etf with the picker pga tracks a going out and traveling type of basket of stocks you see this aggressive surge. that was a picture of accelerated roll-out prized in through the real time we saw more coached that it was going to be spring and summer, and then offense in the etf for

a few months. taker a look at this from extra teagua lacks at past epicenter -- the point here being that's airlines after the march 2020 low they basically stopped outperforming. where they refinance themselves.

maybe -- in sectors that have not been so effected directly. >> do you still look at these stocks and compare them against zoom on a peloton? that was the covid trade now with the delta variant, is that still working? it could just be the waxing and waning after a bruising sell-off this year was a year of tough comparisons. next year with, it doesn't necessarily look at scary if they're no longer expensive as a year add

they then face an ever-increasing said of regulatory requirements for the next five, six, seven years. now, maybe we will see rates stay incredibly low, maybe they will rise, but it seems unlikely regulation will be increasing in the same level that it did >> very true >> you got -- so i totally agree with you, nothing says this pattern has to hold. but the amount of money that is now in the industry, a year ago, people said let them go bankrupt

and have them figure it out. mike, great stuff. up next, jeff degraph will join us with a look at why aerospace and defense stocks could be due for a rally and joe moglia will join us.

the three major averages posting in the green, all slight gains for the session. we have seen smaller caps underperform again of late joining us now is jeff degraph let's touch on some of these charts, just the seasonality point and whether that will be a challenge ahead. >> clearly we're below the median line. so where you are on that spectrum says what you should expect for the next three months there's still positive returns, no doubt about that, but as you get to the end of earnings, basically the end of july, that's the point at which the

next three months tend to be the weakest. that takes you thus august, september and october, setting up for a pretty good fourth quarter rally, but i think you have to take the foot off 9 accelerator and look for a type of pause or consolidation. >> one sector you like the look of, aerospace and defense? >> yeah, we do this on an equal-weighted basis but the improvement there, i think is notable, because there has been some concern about cyc cyclicality, and is that the end of the cycle one area that's been lagging historically over the last 6 to 12 months has been aerospace and defense, but that's starting to improve. the absolute chart has been fine, just everything in today's market is a relative call.

that's starting to improve on a relative basis, which is good news for us, and certainly suggests this might be early stages to start to overweight that group >> you just briefly mentioned where we are in the economic cycle, the whole cyclical trade has really stalled here, especially if you look at it relative to defensive stocks which have held up what does that tell you? >> well, for now, sara, it's a consolidation, it doesn't look like a reversal to us. i think the good news is yields have remained range-bound based on 177, 140 on the down side what we get concerned about is when defensive names outperform. you can even sigh the price action where utilities were the worst of the s&p we're not seeing the cyclical trade come off yes at the expend of defenses. that's the knife fight, if you

will between technology and industrials and a bit of materials here and there, and nonreflation what we are most impressed by is not seeing this migration from, say, discretionary name into staples, or from financials into utilities, or tech into health care that's where we start to worry about the cycle. so far what we're seeing, it still says this, probably a pause. i'm sure a lot of it was indiced by the fed's rhetoric here, but still look to be a pause here in this trend than a reversal, and i think that's good news for the market overall. >> jeff, just quickly wanted to does your view on the dollar it's been bumping around as of late, strong day to day. what's it there? >> it's not broken out yet we call it a down tread. it's held the most recent support. it goats overbought about a week

and a half ago it pulled back a bit we need to see it through about 93 1/2 to get, you know, more convinced that it's a potential trend change usually the currencies take time, they base out. they have a longer transition period, so we expect to see more of that. i think you're probably in a zone where we have made a meaningful low in the dollar i do think that's going to be important going forward. obviously they'll have some impact on the cyclical trade here, but so far, as we see it, probably more of a consolidation than not. >> jeff degraff with the charts, good to see you. >> thank you. the biggest supporter is weighing on the future of the cryptocurrency, and how it can be mined that's coming up tonight, 8:00 p.m. right here, catch "buffett & munger.

they sit down with becky quick do share their stories of friendship, the deals they have done over the years to build berkshire hathaway here's a preview >> we made a lot of money, but what we really wanted was independence we have had the ability, since pretty much a little after we met, financially we could associate with people we wanted to associate with. if we associated with jerks, that was our problem, but we didn't have to we've had that luxury now, for, like, 60 years or close to it. that beats 25 houses or 6 cars what's great is if you can do what you want to do in life and associate with the people you want to associate with it in life we have both had that spirit all the way through.

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welcome back hi, shep. >> hi, sara. from the news on cnbc, here's what's happening six states in the pacific

northwest under excessive heat warning. over 800 people sent to the hospital in washington and oregon on the positive sigh, it's subsiding in many areas, including seattle and portland the workers union are dropping their mask mandates those who have not gotten their shots must still mask up a task force is still encouraging everybody to get those shots. ? sunshine, florida, elected officials are promising multiple investigations into what happened with the collapse prosecutors saying they will convene a grand jury tonight we'll speak with the world-renown junior who is leading one of those probes, an expert who also investigated the pentagon attacks after 9/11, on the news after jim cramer at

6:00 eastern. up nest, joe moglia. later, we'll preview tomorrow's big earnings (♪ ♪) whether it's a technology first, (♪ ♪) a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture ♪ ♪ ♪

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the market structure is totally broken, and we're not spending any time. the way stocks trade is very unnatural. >> that was omega advisers leon cooper man with a warning for investors. j joe. >> yeah s. i don't think it's an old school way to look at it >> it was incredible that wound up having major pressure, so to

look at every trade. if there's irregularity, i think they will address that. >> is there anything broken about the market structure >> i think there's something that's very severely missing though any one of us put on that trade at, let assay, 8, and then it goes to 16, when are you supposed to trim we have people telling you when to do a trim, but when do you manage your risk in the 1990s, it was very lars with the day trader. they blew up when the dot-com bubble burst and 90% of those day traders were out of business i think for the retail leadership that's helping retail

investors, they've got to take more responsibility for giving them better education with regard to risk management. >> what about short squeezes do you think there needs to be slightly updated regulation? or is it all fair game >> i think it's worth at the very least looking at. should there be an up tick in rules or a bit longer holding period i have no doubt that the regulators will look at that i frankly would be surprised they don't take up with something along those lines. >> i wanted to ask you about spacs, you've down your own, what's happening now a lot of the momentum has cooled off. has there been a change of who las leverage, given the time pressure some of these companies are facing >> i think what's going on is

there's too many spacs you don't have enough qualified targets to bring to market what happens, in my opinion, i think many, many many of the spacs won't make it and in general a retail investors should not be investing. wait to know who the actual target is. i'm great about the target we're involved in, but there's only 110 that have been announced there's only three that have been profitable the last few ye years. so i think while things are not going well in the spac world, i think there are some diamonds in the rough, but you have to pay attention and do your home work. >> joe, you mentioned moments ago there were some similarities you are seeing to the late '90s. >> yeah. >> but i don't think you're going as star as saying you think we're about to have a massive blowup, right?

>> no, wilfred, you're talking about what happens in the market i'm talking about what happens to the day trader. they're phenomenal because of the internet now they're doing phenomenal, because there's incredible technology to move very, very quickly. in both cases, we're having a five-year bull run so far. i'm not predicting a market collapse i'm just saying, when the market turns, somebody has to be looking out for these individual investors, because it's going to be painful >> joe, great to see you as always thanks for joining us. >> thanks, wilfred thanks, sara. bringing bitcoin mainstream. her vision for everything from regulation to energy-efficient mining that's next.

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the financial innovation carl icahn as part of a push to use bitcoin in every day transportations. her vision for cryptos going forward and she joins us with the key take aways. >> believe it or not, she is a pioneer in the crypto industry it's the first state to set up a crypto banking system. there is a special charter for crypto banks and they are awaiting approval from the federal reserve to get routing numbers to integrate into traditional banking. the senator told me wyoming has fostered an unusual partnership between the state's legacy industry, energy, and bitcoin miners. >> where oil and gas is produced in our state, when you drill an oil well, a gas well for a while it's not hooked up it a pipeline so the product especially gas is being vented into the air. well, now these bitcoin miners are pulling in a trailer, hooking up to that vented gas, and using it to mine bitcoin and doing it in a way that keeps

carbon out of the air and uses it to produce another product, bitcoin. >> now, she cited that example to defend the industry from its environmental critics. my full interview and all of the sessions from today's financial visor summit will be available at cnbc.com. >> i am interested to know what she said about whether she was positive or negative about support she may or may not be getting from the fed and other regulatory bodies because what one would imagine there is only so much they can do on a statewide basis until there is federal clear regulation and guidance on these points overall. >> yeah, so she is waiting to get that word from the federal reserve bank of kansas city. she was hoping to get that in the next month or so on whether or not they can really integrate their crypto banks with the traditional banking system but sort of the hope overall is that as states start to move, not just wyoming, but texas,

north dakota are also looking at these initiatives as well, that will provide a template for perhaps some broader national movement she told me that right now what we're hearing on capitol hill is lawmakers are trying to learn about the industry so a lot of what her caucus is doing is educate their fellow colleagues in the senate and house as well as speak with regulators to figure out what can regular ltion do and where s congress need to step in. >> got it. elon, thank you. up next, your wall street look ahead a key reeden the consumer and a check on the chips both on deck tomorrow. big earnings we will be watching closing bell comes right back. ".

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now to our wall street look ahead. some key names on your radar tomorrow, bed, bath & beyond, constellation brands, are general mills and micron general mills just announced it's hiking the dividend by 4% to 51 cents per share. and don't miss cnbc's interview with bed, bath & beyond ceo 1 h45 on the exchange. this company has really started talking. they have never poke in years during the downfall. >> they were on autopilot for a long time and then it didn't what's fascinating about bed, bath & beyond in its appearance in terms of the cult retail stocks recently is that it never got to a crazy wild uns unsustainable valuation.

i mean, it trades at a lower price-to-sales ratio than the other old retailers. the question is whether they can become as profitable over time and whether the strategy will work that's fascinating yes, it was a heavy short position that drew a lot of the speculators. but it's an interesting split between -- >> it's not a gamestop. >> fundamental -- yes. or specifically amc even but, yeah. fundamentals are there sort of the eye of the beholder at this point. >> the dollar, it's spiked a bit. not too much it dev gives a little bit of a scare to the stocks when that happens. >> yes at least, you know, adds to that defensive posture that we have been getting a little bit lately some of it's been one off in terms of other currency moves. but, yeah, i mean, it looks like, you know, it's kind of a double bottom on the u.s. dollar index chart kind of threatening some of the highs this month it shouldn't be much of a concern.

it's more about the -- >> they haven't broken through the march high. >> yeah. >> it's a little tick higher i think it depends whether the fed seriously goes through with tapering ahead of the ecb perhaps because that's the biggest biggest kpoel ent there. and talks about higher rates, which powell is not doing. that raises the biggest question for the last half of the year. tomorrow is the last trading month of june and the first half what does the second half bring? >> you wonder if there is any mechanical stuff to be done at the end of the month, meaning you have 14% gain in the s&p, you are down on bonds if you own both the fed wants to buy itself a couple of months before they will to pull the trigger i would think on a specific tapering calendar or talk about the tightening plan. will they have that luxury >> interesting note, month to date divergence. in general, we are talking about

these record highs in 5, 6, 7% gain for the nasdaq. but the dow is olower for the month. >> dow is lower, equated s&p is lower, mid-caps are lower. there is a split in what is doing the lifting in this little moveup. >> that does it for "closing bell." "fast money" starts now. life in the nasdaq markets overlooking new york city's times square this is "fast money. tim, dan, karen, and guy tonight on "fast." we are hitting the friendly skies. united securing the largest aircraft order in history. what it means straight ahead. a crypto king on the record. joe lubin joins us to talk about the red hot one in the cryptocurrency market. and later trading the semis. chip stocks an all-time high one says watch this name to see if a bigger breakout is building