>> that's right, but the days of development by radio record labels is over, but distribution is the key. >> yeah. >> so, yeah. interesting to hear those comments >> nice to have you here >> nice to be with you >> with major averages higher. >> come back any time. >> will do all right. thanks for watching "power lunch" everybody, closing bell starts right now >> thank you, morgan and tyler and welcome to closing bell. i'm sara eisen at the new york stock exchange we'll see if we can get a record close as well. i'm courtney reagan in today for willfried frost. the ten-year yield hitting 1.29% its lowest level since february. the fed minutes out last hour showed officials at the last meeting discussed when the central bank might start scaling back bond purchases and energy another big driver, getting crushed once again, the worst performing sector on the s&p 500. >> coming up on the show, noted tech investor dan niles is here

with his take on the market and the names he is adding to his portfolio right now, plus we're heading out to sun valley where the biggest names in media and entertainment are gathering and we'll talk to linkedin co-founder reid hoffman about the trends he sees in the industry and let's focus in on the big stories that we're watching today to get us started. mark santoli is tracking the market action and ylan mui has the latest >> the s&p 500 got an extra push to the upside after the release of those minuteses and basically investors seeing nothing in particular incrementally to worry about. you take a look at the one year and the s&p looks like this sort of reach higher to the top end of this trend area, mostly today and it's the apple, microsoft, amazon show if you wanted to look at the attribution of what's carrying things and we have small caps week and a lot of noise below the surface and we'll get to some of that in a minute and for now, the s&p

itself seems like it's not bothering and it and some of the erosion catches up to the headline index and take a look at the s&p against a couple of other measures with broader sets of equities and here we have the completion index and it's everything in the u.s. market except for the s&p 500 and then, of course, the msci all world except the u.s everything outside the united states and what you see here is a real push higher there by the s&p 500, just not at all confirmed by every other kind of u.s. stock or by the rest of the world. so does that mean it's some kind of fatal divergence? not necessarily. you want to see things catch up a little bit, but justas recently as a month ago, everything was pretty much in parity here and it is a three-month look and it's a narrower tape and are small caps getting stretched to the down side because it's not to the lows of next month and maybe it's a double bottom a lot of back and forth as

yields hit lows, as well for this move. take a look at the ten-year treasury and a lot of sense that it's dictating what works in this market, and in the ten-year yield and very much unclear and what's important to keep in mind, i think, is that this still, believe it or not over the last year is an uptrending yield and we've not totally unwound that momentum and i'll freehand the 200-day moving average and it comes up to 123, so you're still above this sort of uptrending line and a lot of people focused on it and a lot of things to keep in mind it's not all about what's been reported in the economy and inflation although inflation expectations are down and people who buy treasurys are institutions that have to buy treasurys and they're not really making a macro call and a lot of that's been going on in the last several weeks. >> i said before you're luke a market poet and you're also a very good artist. >> i have it tell you, if you you saw the real one it might

not match up too well. >> i think you did a pretty good job. you ran home your point. are you surprised that you haven't seen technology stocks move more today as we saw the ten-year yield hit 1.29? >> we might be getting to the moment of diminishing returns just because they've had such strong move. semiconductors aren't as quite as fitquite tightly, which means banks may be catching moreof a bid and industrials had looked okay today that's why i said it's a noisy environment and it's not consistent across the board whereas before down yields meant everything in growth and tech higher and it's become staticy at the moment. >> and down materials and industrials and it is leading the market it is a little odd mike, thank you. the fed just releasing its minutes and ylan mui has the highlights which was what was the takeaway?

>> the fed begins abating the detail of asset purchases during the june meeting and some officials floated the idea of mortgage-backed securities more quickly and earlier than treasurys and pointed specifically to valuation pressures in the housing market and others pushed for mbs and treasurys to get wound down together in part because it would align better from previous fed communication. on the time line for tapering and some officials would argue that the fed would start somewhat earlier than previously anticipated since the economy is improving more rapidly than expected and others continue to advocate for patients. fed officials did agree to continue discussing these plans in coming meetings, hint, hint and promised to give advanced notice before any actual reduction in purchases the risk is for prices to end up higher than expected and several officials believe the supply chain disruptions could put upward pressure on prices into next year. if you believe the economy would meet the fed's criteria for

raising rates somewhat earlier than they had projected in march and overall, guys, it does believe the worst of the pandemic's effect on the economy is probably behind us. back over to you >> one interesting tidbit that will get a lot of chatter is the debate that's going on inside the fed about whether to start scaling back the mortgage-backed securities, which would break with tradition with how the fed unwinds or typically tapers. can you talk more about that discussion which is a valid one, considering some of the moves we've seen in the housing market and the fact that the fed is stimulating this market that is already so hot >> i thought it was interesting that they connected that specifically to some of the pricing we've seen in the housing market anyone who is out there trying to buy a house knows what we're talking about here and so that debate is ongoing and i think that's part of chair powell's idea of getting everyone to weigh in and unclear which direction they'll take at this

point, but at least these ideas are bubbling up and getting a full airing before the committee decides exactly which direction to take because it would be very different from how it's operated in the past as you point out, sara >> ylan, did the fed have any idea how the shift forward would rattle the markets at all? >> this is interesting because there were multiple times when the fed said that there was an elevated level of uncertainty around economic projections right now because of the uneven recovery we've been seeing because of this unprecedented nature of the pandemic and they said specifically that the market is going to be focused on those rate hike projections and that they should reiterate that the fed is not changing its reaction function and it remains committed to its framework and the time line for liftoff. so the fed right here is trying to say we'll take one tool and think about using it that's reducing asset purchases, but the other tool, raising rates is firmly off the table for now. >> ylan mui. ylan, thank you. when we come back the rise in

ransomware attacks the ceo of crowdstrike joins us to discuss whether he sees a correlation between the runs of cryptocurrencies and an increase in cyber crime we'll get his take in an exclusive interview next the dow is up 94 points and the s&p 500 could hit a closing high and 4252 is a level you want to watch and we're above there right now. you're watching "closing bell" on cnbc. front desk. yes, hello... i'm so... please hold. ♪♪ i got you. ♪ all by yourself. ♪ go with us and get millions of flexible booking options.

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latest ransomware attacks. eamon javers has the latest. >> kurcourtney, we don't have ao of details of that meeting, we do know it was in the situation room and we don't know what course of action biden will take over the past couple of weeks or so a lot of them emanating from russia we do know that jen psaki did talk to reporters on air force one. the fbi insists they're in touch with the republican national committee. they have yet to determine attribution for an attack that apparently happened over the weekend on a third-party vendor to the republican national committee. also, jen psaki saying that it's not in the white house's interest to, quote, preview our punches in terms of any potential response by the u.s. government to this attack on kaseya in the ransomware attack and president biden has a wide range of options in order to figure out what they want to do

here so the white house not really saying specifically what decisions, if any, have been made and just saying the president has a wide range of options. >> i'll take it. eamon, thank you cybersecurities popping, among them with crowdstrike with shares rallying in the last month the ceo george kurtz is joining us so it's been, what nearly three weeks since president biden met with mr. putin and they discussed this issue, biden told him to rein in the cyber attacks and the cyberware attacks and it seems it's only gotten worse how are you perceiving this behind the scenes since you're seeing this activity. >> it has. what we see on the news is the tip of the iceberg and what we've seen investigated at crowdstrike. over the last couple of years

it's gotten dramatically worse and what we're seeing is a lot of nation state techniques and digital weaponry and basically utilized by the cyber crime gangs to inflict this level of destruction and ransomware across these companies so it's only getting worse and hopefully, you know, we can come to i guess an agreement where maybe you'll subside, but i wouldn't count on tp. >> what about specifically this kaseya attack that could affect 1500 to 1800. >> it is a chain attack that we talked about in the past and obviously the impact on this in terms of managing this software for other companies is problematic. a lot of managed service providers use this software and what weave seen in the past is this multiplier effect where if you can get into one company

that manages a thousand other companies' i.t.-related infrastructure that can obviously have a dramatic impact and make ransomware deployment a lot easier 70 million is the largest ransom that we've ever seen and it's a single key, and it's not like each individual company can decrypt it themselves and they're looking for one big, massive ransom and it's just a sign of what's yet to come in other attacks. >> and so, george, if you are one of these companies and you are a victim of one of these attacks and you're asked for ransom i understand now it's down to 50 million, but at some points aren't your hands tied and don't you have to pay it even if that's not what the government wants you to do? >> each company has to make their own decision and we actually spend a lot of time with directors talking about the subject that's the hottest topic right now for other committees and it really is an individual company decision you have to decide is the -- the

risk worth the reward, right if you're going to be down for months at a time or weeks at a time or there's a mass impact it may be worth spending the money to basically decrypt the software no one wants to do that, but it does come down to each individual company and their own risk appetite. the other thing that is problematic in these areas is that even if you don't pay typically what they're doing is they're stealing data in advance of providing the ransomnote. so essentially you've got a pretty limited choice of, hey, you get a decrypted or your data will be leaked on a dedicated leak site which can cause implications and it's not a great place to be and that's why we recommend having the right protections in place with crowd str strike to prevent these attacks before they happen >> is bitcoin a culprit here there is an explosion of bitcoin and the fact that these

ransomware demands in crypto have risen >> well, in the early days of bitcoin there was a lot of -- a lot of payments being made and really that helped fuel of rice of ransomware for sure i do think, though, where bitcoin is today and other cryptocurrencies the bad guys will find a way to get paid, and right now it's so fluid, there's low risk to getting caught it's just a massive problem for so many companies and i don't know that just shutting off making a payment is going to solve this problem >> and speaking of solving the problem, isn't it true that some of these ransomware attacks are still embedded and the code is still embedded into some of these systems and the infrastructure that even after you pay the ransom and you think that you are solving the problem there are residual issues and

isn't that the issue as well >> if you have a ransomware attack you have other security challenges and typically, when we work with organizations that call us in, not customers that call us in or consulting, typically we look at what happened, how it happened and how do we bring you back to health remediation and even if you get data back you'll want to cleanse those systems and make sure that you can rely on them and that there are no back doors still remaining in the system and bring them back to health in one motion so that, you know, the bad guys are not able to come back in >> george, finally i mentioned your stock moves everything time there is a headline on this. it's up another percent and it's had such a run, does the business correspond to that? in other words, if we see another one of these on the headlines, does that mean you get a whole lot more in terms of client activity and services subscriptions?

>> the headlines come and go i think what's really important is to realize is these sort of attacks are here to stay they're only getting more prevalent and that companies need technologies like crowd strike to be able to identify and prevent against these. we had no updates. our customers were protected automatically and for the most part, you know, this is what we're looking for and the headlines whether a ransomware attack or not, we know cybersecurity is at risk and we're focused on making sure our customers are safe >> thank you for joining us here today, george kurtz. i'm sure that we'll speak to you again in the future. george is ceo of crowdstrike when we come back the u.s. could soon have the highest capital gains tax rate in the world. we'll dig into the details and what it means for investors. as we head to break, check out some of today's top search tickers on cnbc.com. the ten-year yield leads the group followed by didi, ape,pl

amazon and devon energy. we'll be right back.

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for taxing the wealthy would give the u.s. the highest capital gains tax rate in the developed world. robert frank has more on that story and a look at what it means for investors. robert >> court, president biden has proposed raising the top capital gains rate to 43.4% for income over a million dollar, but that does not include state taxes in many states, tax capital gains the same as ordinary income. according to the tax foundation, state taxes would add an average of 5% to the federal bringing the total rate under the plan to 48.4%. that would be far and away the highest capital gains rate in the world that would pass denmark, chile and france. the u.s. would also rank highest in the world for dividend taxes. since dividends come from after-tax corporate profits and

the combined corporate and dividend tax rate would be over 65%. that would beat number two ranked ireland and south korea for u.s. investors this means that overseas investors can afford to pay higher prices for u.s. stocks since they don't face the same rate and it means that overseas investors who currently own about 40% of all u.s. stocks could see that share increase even further. guys >> my question, robert, is whether it's apples to apples. in other words, do we tax capital gains based on income levels, do they do that in other countries or is it a flat rate if so, then it would make sense that those rates would be lower. >> well, right now we have a graduated system of capital gains. some countries it's a huge price -- some countries have a flat rate and others have a graduated rate as well this would be a slightly more graduated rate in that it would only apply to a million or more.

so it is no other country applies it to such a high level. you're right it is unfair that anyone in the country would pay the rate and it would apply to those lucky enough to earn a million or more per year >> got it. while we have you, i wanted to ask about some developments happening in your beat and a story you've been following and the bill and melinda gates foundation just announced big changes to its structure and the world has been watching this since the divorce and what it means for the most influential foundations. what can you tell us >> well, the bill and melinda gates foundation just announced that it's part of a plan to bring in new trustees and they were required to disclose part of the divorce settlement which said that if either bill or melinda could not work together after two years then melinda could resign as a co-chair and trustee of the foundation. this is slightly contrary to the

announcement in may when they announced the divorce which said we continue to work together and will continue to work together in the foundation this is are also hints at an open symptom that melinda gates has been forging her own philanthropic path for about five years through pivotal ventures this is an llc and it is not a not for profit it is an llc that focuses on gender equality and women empowerment and that has been her philanthropic passion certainly for the last five years and very much so in the last year or two that group can also advocate for political causes and contribute to campaigns which a traditional not for profit like the foundation can't do. so this sort of hints at what could happen and they will continue to work together and this just shows that melinda has been forging her own path and may after two years go full time to pivotal which has been so

important to her and which received a lot of philanthropic dollars. >> pretty interesting. thank you. robert frank still to come, the ceo of taylor morrison joins us with the housing market a home builder, a check for you on bonds and this has been the story of the day and the ten-year deal broke below there into 129 territory lowest yield that we have seen since february, and a surprise to everyone, it was expecting higher yields off inflation and strong growth. we'll be right back.

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dow's up about 96. home depot leads going strong into the close time now for a cnbc news update with rahel salomon here's what's happening at this hour a former pharmacy exec has been re-sentence said for his part in a deadly meningitis outbreak it was thrown out by an appeals court as too lenient the judge ordering him spend 14 1/2 years behind bars the ruling coalition's largest party urged him to step down it's been suspended since january after a coronavirus emergency was declared there. former president trump reportedly told his chief of staff john kelly that adolf hitler, quote, did a lot of good things part of an upcoming book on trump by michael bender.

a trump spokesperson denying the president ever made the comment. >> a zoo in louisiana's largest mall remains closed because a 12-foot python is on the loss. care a the python, escaped from her cage yesterday the mall remains open. the zoo is closed and the mall is open. z zookeepers are confident she's not made it to the mall. she's not venomous and according to the zoo, she's very sweet. >> there's no way. >> the mall is open because they're convinced that she's not in the mall. she's in the zoo >> how do they know? if they knew where she was wouldn't she be back in the cage >> everyone is back at the mall. it's a re-opening play >> be on the lookout for cara if you're in louisiana. she needs to go back home. we'll get a read on the housing market with the ceo of taylor morrison and that stock is down over the past two months and we'll ask her if the booming

housing market is taking a bit of a pause and from the field to the fringe and nfl giant saquon barkeley is getting into the energy drink, and the ceo of x2 in "the closing bell." stick with ♪ ♪ 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... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

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homebuilders on the move today, names like pulsy, d.r. horton and lennar up by 2% or so, but is the housing market boom starting to slowdown?

shares of home builder taylor morrison hitting a 52-week high in april and it is down 20% since that peak. joining us now is sheryl palmer, ceo of taylor morrison it is the question of the moment lgi homes announced a record breaking uniand second quarter, housing closings and mortgage applications and refinancing applications are down. what are you seeing in your business is the housing market starting to cool off for you? >> good afternoon. thank you for having me here today. we are seeing -- we continue to see a very robust housing market i think demand remains strong. we're seeing that across really all geographies as well as all consumer cohorts we are seeing some numbers around mortgage applications, but we have to separate the supply and demand that we're seeing out there and we are at multi-year lows as far as both

new and resale inventory and honestly, it's going to -- it will be very difficult for us to make up the shortage that we've been -- the deficit that we've been building on for more than a decade now >> very interesting, and when you talked about geographies, are you seeing any trends that we had seen during the pandemic start to shift when we had seen many people leave the cities, go for more land with bigger spaces and home gyms and offices and are those features in high demand or as we re-open are you seeing that pull back to a more normalized level >> interestingly enough, we are seeing -- depending on lives change, we are seeing folks that are leaving the more dense populations. most likely because there's something else within their life going on, it could be marriage, it could be children we're also seeing great velocity in higher dense communities

across the country so i think the reality is as you look at the underbuilding that's been going on for so long, the shortage of shelter. we can just say rooftops somewhere around 5 million units short. it doesn't matter if you're talking in the city or if you're talking in the burbess and the covid pandemic and the active lifestyle we saw it come back with a vengeance as we moved back last year when vaccines began to make their way throughout the population. >> sheryl, i wanted to ask you about some news that broke this afternoon. we got minutes from the last federal reserve meeting and there's an active discussion under way at the central bank about how to scale back the stimulus, and they're going to start tapering soon and part of that is whether they should cut

back on the $40 billion a month they've been buying with mortgage-backed securities and do you think that's distorting the housing market and how would the market react if the fed stopped buying those mortgages >> i think over time we should expect they've been talking about pulling back, and i think over the next many months we'll see that and certainly as we move into next year. right now interest rates, they are lower than we've seen in a long, long time both conventional fha rates are well under 3% so from an affordability standpoint, the consumer buying a $300,000, $400,000 house, their payments will be less. the consumers changed their behavior and they are not -- they're not extending themselves the way we've seen years and years ago. we actually see the consumer has a lot of room in what they can afford to buy and what they're buying we talked about in our last

earnings call the conventional consumer has somewhere around 500 to 700 basis points of a higher interest rate they can afford what that also means is they can buy a larger house i think as the economy continues to improve, we'll see mortgage rates move up and that should be expected they're not going to stay under 3% forever, but the demand is still something that the lack of supply and the overwhelming demand is something that will be with us for years to come. >> sheryl, thank you for joining us >> thank you so much >> always good to get a read on housing. >> when we come back, josh brown has been on this show calling for a breakout in amazon for some time. >> if you ask me what could spark the next major move higher in the market, how about a monster breakout for amazon. it's a very big, very important stock and could absolutely serve as leadership in the second half amazon's about to explode to the upside and make a new high any

day now. >> amazon is seeing some very strong gains today hitting record highs for the second day in a row up 5% we'ldil ve into the move next with josh in the market zone it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7

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broader market major averages in the green, on record close watch for both the s&p 500 and the nasdaq and any close higher for the nasdaq is a record and session highs on the dow at 110, 112 was the high and big moves hitting their highest levels since back in february and the bond move, really is what has people just, first of all, totally catching people off guard and trying to figure out what does it mean? is the bond market signaling slower growth ahead and if so, what do you do with stocks >> i think the main takeaway, as surprising as the move is is not that it necessarily knows something unspoken below the surface and that's worrisome about the market and if you look at how credit is trading and if you look at how the indicators cyclical versus defense and yes, they waivered and the rest of it doesn't confirm the idea that there's this mad rush to buy safety in the form of treasury and the dollar is showing that a little bit there's no doubt there's a deceleration story that's owl

th out there, and you see the growth stocks do better and very cyclical and there's this in between moment that you still expect the expansion to be good and that's what the minutes told us and they'll try to be patient and yet, they're re-pricing the growth stocks based on this lower yield which will help the indexes even as most stocks don't participate. >> you point out that some of the highs, those stocks that are making new highs are things that are good, strong companies and they're not the high-flying, momentum names that we talk about. >> what i call traditional growth and it's not just faang and charter communications and nike and a lot of the medical tech companies and healthcare and stuff where it's just, like, look, i don't have an edge on the next move on the economy i don't think the cyclical stocks will go away from me and we'll park money in this stuff here it seems like that's what's going on, at least for now, as

soon as we think it's a trend it can easily reverse and you can see small caps rip higher tomorrow if yields stop going down where are you on this, josh, and what do you make of the lower yields and what that signals for stocks and certain sectors >> i hate to upset everybody, but yields on the ten year do not actively reflect current inflationary conditions nor do they predict future inflationary predictions, nor do they do a good job at reflecting yesterday's inflationary conditions and they don't reflect expectations and they are not to be used as a tool to predict inflation. it doesn't work. >> look at the market. look at the material sector and transports and any of the cyclicals and a lot of those that are in line with inflation are telling you the opposite and

not just the ten-year yield. >> they trade in line with inflation sometimes and then they trade out of lack with inflation because a data point comes out that they don't react in the way people think they should and everyone says maybe there's more to the story. there's not, and it's buying and selling in the marketplace supply and demand are too big for us to look at any of these instruments and say that they're a thermometer for current or future -- it doesn't work and it hasn't worked in seven decades and the evidence is the evidence i understand that we want there to be some symmetry between bond yields are reacting to the day to day news on the economy and it really doesn't work that well, and i don't think, more importantly than any of that, sara, i don't think that investors should drive themselves crazy changing their own expectations or move them around pieces in their portfolio based on the reveprevailing yie

on the ten-year. think about how much demand there is for a positive yielding risk-free rate of return anywhere on earth. there's so much demand coming from so many sources that you've got this permanent distortion in place in the yield or in the price. so i don't really think that this is a useful exercise. it's an interesting observation to make. it's not helping anyone. it hasn't been accurate in so long that i can't believe we're still talking about it that way. >> hold on, josh >> we still have that demand when yields went from 50 basis points to 175 over a few months and everybody is saying look, it's the re-opening trade and it's because we have reflation and it fit exactly in with what sectors were working during that period >> in the stocks or the yields which one do you want to do first? >> the yield his their move despite this standing demand and we had banks and industrials and materials ripping over that

period of time >> okay. and in the last 30 days we've seen probably 10 or 20% of that unwind is that because we think that for some reason the re-opening has stopped? no, what's really going on is that investors using their dollars, have voted, meaning decided what assets they want to own and they've had their fill that doesn't tell us an accurate story about where we think things are going from now and this is just about how people feel today so i do agree with you there's a correlation between value/cyclical segments of the market and inflation expectation, but where i get lost is this idea that on a daily basis, the ten-year is going to serve as a weather vain for either the growth in the economy or the rise of prices or whatever it's just not going to -- >> it's not calibrated like that >> it really never has. >> maybe not daily, but it's made quite a move here and it's correlated with global concerns around delta we have to move on because we

have a market flash on quidel with meg tirrell >> the fda saying that quidel is recalling the covid2 for negative results with essays it's down about 5.5% this is not the company's biggest covid testing product, but it brought in about $200 million last year in revenue, so this is a concern. the fda citing this risk of false negative results or this one particular essay from covid testing from quidel and guys, back over to you >> an important mover and a company to pay attention to. apple and amazon posting big gains, josh lipton has the details. >> let's start with amazon, the stock hitting a fresh, all-time high in today's trade and on

pace for the best week since april. brent till at jefferies says jassy is the right man for the job. he has high growths and high-returning businesses better than everybody as for apple, trading near it's all-time high and it's on pace for the longest winning streak since april 9th, by the way. j.p. morgan expects apple to materielly outperform the market in the second half, in part, they say due to the typical outperformance we see in the july-september timeframe back to you all. >> now over to josh brown. i want to pull you into this conversation because you have made some comments that we aired on the show previously about amazon and how it was poised for a breakout and when that happens, watch out, the rest of the market is coming with it amazon was higher by about 5% yesterday. higher again today is this breakout going to come as you had predicted

>> well, it looks as though it started. i wouldn't argue that every stock in the s&p 500 will rejoice and celebrate, but this was a mix of both technicals and fundamentals, tracking the stock and watching where resistance was. it was as clear as day, and you don't have to be a technician and i'm not a technician and i understand how to read a chart, but you don't have to go overboard looking at this thing and you basically had a consolidation period of 12 months andeventually the buyer took on all of that supply, and once they did, we can point and say oh, it's this government contract and that's why it broke out. it was breaking out anyway that's just a peg and that's just a headline that we want to tack on there, and i think apple is a similar story, probably not as clear-cut as amazon because apple hadn't spent that much time consolidating the most important thing here and this is actually the main thing i want to say today.

there's a difference between pulling forward demand versus pulling forward adoption this is what a lot of people got wrong when they were playing the virus on, virus off game with the quote, work from home stocks what the pandemic did for amazon was it pulled forward adoption and it got people who could never imagine themselves ordering groceries online starting in that habit it doesn't mean there are no more transactions left to do this is not like the housing bubble pulled forward demand for houses and all of a sudden nobody needed a house anymore. this is not that pulling forward adoption is massively powerful in the second year, in the third year, in the fourth year. now all you have to do is look at amazon's prime subscriptions and of course, the pandemic pull-forward demand and it also pulled forward adoption and that is not going to stop people that began using e-commerce and amazon and aws are not just going to stop because the pandemic's over. that's what a lot of people got

wrong with these mega-cap tech names and now they're paying a price for it >> it's a good point it's a good distinction, josh, any others that you can think of where the story's been misunderstood and wall street has been worried about pulling forward demand where it's more subscriptions and more recurring revenue. >> i'm so glad you asked me that the same is happening with autos and people think that there's this new golden era for cars because of the environment that we were in last year, financing costs dropped through the floor and everybody moved to the suburbs. everybody was spending a lot more time driving rather than flying and people think all of a sudden that we're entering a new era. we're not. we probably have already seen the peak in auto demand especially trucks. maybe not for electric vehicles and we'll leave those out. i think that's the opposite. you can pull forward demand for autos and you can't pull forward

adoption people either need a car or they don't. that's the opposite version of that and be careful. >> 21% off their 52-week highs, those stocks one of the hardest hit sectors tesla shares lower today, they're down more than 8% so far this year, but history suggests the stock may be ready to rally. phil lebeau with the details. >> sara, we're in a two-week period after the company reported quarterly deliveries. we're historically going back to the 2019 the stock tends to do better than the two weeks leading up to its delivery report. remember, they reported q2 deliveries on friday our data team crunched the numbers and the two weeks before a delivery announcement on average the stock is up a little over 3%, but in the two weeks after a delivery announcement the stock is up more than 16%. well, that's the setup here is the not so encouraging news since the report came out on friday, shares are down a little over 4%, haven't been doing much and not high volume and just

sort of average volume and as you take a look at shares of tesla over the last year keep in mind that we expect the q2 financials to come out later this month and so we could see, guys, a bit of a move higher as we head into the financial reports. we typically see that as well, maybe the last week and a half or so and the stock tends to move higher ahead of financials. guys, back to you. >> we'll see if the pattern continues. phil, thank you. just about two minutes to go in the trading day. today is a funky day because industrials and materials are leading the market usually it's the value cyclical small cap all together trade >> it seems as if some sectors are trying to get ahead almost of what's going on with deals and they're not responding in real time to the small caps have definitely been very much under pressure and it's reflected in the breadth numbers, as well you have basically about the same number of stocks up and down on the new york stock exchange, but the volume is very much skewed and twice as much volume to the downside, and the average stock is not pulling

higher, and here you have new highs versus lows on the nasdaq. over 100 new lows is a big uptick versus what we've seen recently and we've seen some of the damage starting to gather in the areas outside of the top ten of the nasdaq. so that's something that's been a real asset to this market and the new high swapping new lows and maybe that's slightly changing and the vix has not largely been not responding to what's going on. the index itself has been pretty trapped and we ticked higher at the market lows this morning, but has not really been sending much of the signal except maybe of a floor building here around 15, 16 >> less than a minute to go before the close just off session highs in the dow up 93 points what is taking us higher the biggest contributor to the dow gains, home depot, 3m, honeywell, salesforce are the biggest drags. the s&p 500 is on track to close at a record high we'll see if we get there.

so is the nasdaq and the groups leading us here are a little different. industrials, materials and utilities are the best performing sectors in the market today. health care is also going strong staples, financials and technology the nasdaq on the flat line at the close. any tech higher will be a record close and the small caps underperformed and it looks like we are going to get that record close. the dow higher by 101 points at the close. welcome to "the closing bell." i am courtney reagan, and mike santoli, senior commentator. the s&p, dow and the nasdaq all eking out record gains after being in the flat line, the dow off the session high and the s&p 500 adding 15 points and the nasdaq up by 1 1/2 points and making that record close and the russell 2000 also, though, is the laggard for today which was

a laggard yesterday which was a laggard down about a percent for the russell 2000 coming up, investor dan niles on why he thinks there will be another big market rotation in the second half of the year and the stocks that he thinks are most attractive. plus, linkedin founder reid hoffman joins us live from sun valley that conference in idaho to discuss the impact regulation cyber attacks could have on tech start-ups. th there's a lot to go through and erin brown from pimco now joins the conversation erin, i want to get your quick take here on the market close as we did eke out gains here for all three major averages though the russell again the underperformer and the session was a little bit choppy. >> yeah. i think that's right i think that the market was fearful that was going to be explicit about the tapering discussions and i think that the rally that we saw pose the fed minutes was a relief that the

fed still seems on balance willing to allow the inflation to run hotter and the data to continue to improve before they feel like they need to start tapering and so i think that was the response that we saw coming out in the fomc minutes this afternoon. >>yeah everyone thought we would go into the minutes and everyone thought it would be hawkish because this was the meeting where they moved up the timetable and the medium went to two hikes in 2023 and it just wasn't they still are not satisfied with substantial progress in the economy, and even though they're watching inflation, it doesn't sound like they're particularly worried or moving imminently >> officials want to reassert the framework they put in place last year that they tried to convey which is we want to see the numbers right in front of us and we want to wait for the outcomes and not the forecast and maybe there was a muddled message and the markets

themselves said wait, that's no longer the way that the committee seems to be operating right now and market-based inflation expectations have really come in a lot and you've seen the market itself do what the fed might want to see done in terms of getting beyond the inflation spike story. i reasserted the patient's point and good enough for the markets and i don't think a renewed catalyst, but definitely nothing to fear. >> the fed as sara pointed out, no substantial further progress. where do you think we are in the economic recovery in the cycle are we midway there? past midway? >> i think one of the most insightful pieces of information on this that i've come across recently comes from brian westbury at first trust and what he's saying is what i've been trying to say, but not as eloquently or as intelligently as he phrases it, but what he's talking about is just this idea that of course, the inflation isn't transitory it never is, especially wage

hikes. how are you taking those back? lol, you obviously are not nobody can get somebody to do the same job they were doing last week this week for less money, right so we already know that that part of inflation, both the expectation and the reality is going to stick the thing that's not going to stick is the noise and by noise i'm talking about shortages and things that there really shouldn't be shortages for like lumber we saw it grow on top. it literally grows on trees. i can't emphasize this enough. you will see noisy data between now and the end of the year because look at the comps. look at what everything is up against a year ago, absolute chaos. we talk about supply chains. there were no supply chains. so once we get through that period of noise, i think you'll find that some elements of inflation are still with us, but for the most part, the spike, the really psychologically

damaging shortages of thing, that will dissipate and that's going away and they're getting the ships to ship the trucks and we have to, like, not say inflation monolithically and we have to think about a second layer of this which is, okay, but what kind and how much of this is obviously going to go away let me give you one last, quick example. in september, when the extraordinary benefit for federal unemployment goes away we're not going to have the same conversations about how the labor market is as we're having right now. we all know this is coming it's six weeks away so let's all stay calm. >> yeah, and back to school, as well, should help. >> that's right. >> erin, what does that bemean r investing and equities i know you've gone from value to growth which has been the predominant theme. it's working this week, as well. is that still the strategy given the overall outlook? >> yeah. i think that we've moved from,

you know -- as we're moving mid-cycle and i do think we're in a mid-cycle environment right now, i think that the risks will become more balanced on growth versus the value sectors and so going forward, i think you want to take a more balanced approach which az even in the first quarter and even into the second quarter of this year value really was the place to be increasingly just given the fact that growth has underperformed so significantly in the first half of this year, you want to start to add back growth-oriented sectors into your portfolio so adding back some of the tech names and semiconductors look attractive and biotech, as well, and i think moving out of the deep value sectors, there are parts of the value-oriented market they still think are attractive particularly when you look at some of the service-oriented sectors that are really exposed to leisure, entertainment and travel, and so i think we have longs in the office reit, and more broadly

hotel reits as well. we also like the c corp lodging names and some of the entertainment and restaurant names, but i think broadly speaking, the deep value rebound is coming to an end and you really want to take a much more balanced approach as we move through the next half to year end. >> we haven't hit on energy yet here in the first couple of minutes of the 4:00 hour and it was the worst performing sector on wall street again today down almost 2%, down about 5%. week to date, cnbc.com is here to break down the biggest losers hi, pipa >> the worst sector by a long shot and today's move means energy stocks are down 5% over the last two days. the dip follows a decline in oil prices as uncertainty around opec's production policy hits sentiment. today's dip is also broad based in nature with exploration names

and ibts gntegrated companies a refiners all registering losses. getting down to the specifics, halliburton, occidental and valero leading the declines all falling more than 2%, but energy stocks are still up nearly 40% for the year and so one question is whether u.s. companies will respond to this growing demand and restrained supply environment. the city saying that the stage is set for u.s. production growth to come back swinging in 2022 sara and courtney, back to you >> thank you very much, pippa stephens erin, i want to go to you with your reaction. energy prices sold off in the last couple of days on the opec plus news and is this an area that you could see buying at the lows even if it's for a short-term period of time? >> you know, i think from here, really it's going to be very much it's a pie-driven story and that's hard to gauge as an investor i think it's easier and probably

smat tore place your bets elsewhere. right now supply constrains have been the real driver of energy price appreciation over the last six months if we start to see the disintegration and we start to see more supply come online that will continue to drive energy prices lower also keep in mind that current energy prices, it's really attractive for the shale producers will bring more supply online i do think in the foreseeable future and i would look to put my bets elsewhere other than the energy market at this point. >> finally, mike, we hit on it before, the moves we're seeing in apple, amazon, microsoft, these stocks continue to go higher and a few weeks ago everybody was saying there's a valuation gap. they need to catch up with some of the value names at this point, where does that gap

stand? >> i don't think there's all that wide of a valuation gap i think it really does reflect this preference right now for what you would call quality. it's not really tech it's a more reliable, great balance sheet and predictable type businesses and it really is bond adjacent and these types of big, long duration businesses and it's familiar to what we saw last summer and these were the stocks that we were carrying last summer and we're not on that complete reliance on the five stocks, but it is interesting how apple and amazon awakened right on cue when everybody decided to look beyond the cyclical plays. >> when the 10-year yield started falling. >> josh brown, erin brown, no relation thank you both for joining us. >> maybe >> no, you're not. you spell it differently >> i tease >> thank you up next, investor dan niles on the two sectors that he thinks will outperform the broader market during the half of the year and the oversold stocks he

recently bought. linkedin founder reid hoffman on the spac deal and we're back in two minutes here on "closing bell." zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

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baby ninjas? i love it. >> the s&p and the nasdaq both closing at record highs and the ten-year yield fell below 130 earlier in the session and this as big tech stocks continue to soar to new highs. let's bring in dan niles, founder of the satori fund great to have you back >> my pleasure, sara >> we've got to start with oracle closing at a record high. this is your one tech pick for 2021 it has been an amazing pick and just out of nowhere has exploded higher do you wish you picked more, mega-cap defensive tech names? >> no, i mean, oracle was our pick it's done well obviously, you and i have talked for the last several interviews

gag back several months with google and facebook and how we like them as re-opening plays, as well, but our top picks have been great this year our top five are up 27% on average and you know, oracle's done very well and we still like google, facebook and tech because they're reopening plays that are growing revenues at 30 to 35% that you can get at a 24 to 25 p-e which is just a point or two above the s&p, and so, you know, we like certain pockets of the market, but in general, we believe still that rates are going up and that's going to cause a problem when we get to jackson hole in august and that's been the road map >> rates are going down and the ten-year yield hitting the lowest level since february back to 129 and your whole thesis of cyclical inflation stocks that hasn't been working lately so are you changing the playbook or do you think it's just going to be revived?

>> no. i'm not changing platthe playbok it's one month, if you look at materials, industrials and financials, those three sectors and the s&p were down 2 to 6%. they were up 18 to 28% or so coming in through the end of may and tech stock with the s&p 500, those were up about 7% after being up only 6% coming into may and there's some rotation going on right now, but big picture, my view is pretty simple we still see economies opening up and we see vaccinations going up and immunity going up and the best gdp growth in the united states since the 1980s and so with that as a backdrop, unless you believe that we will shut down again globally, i think you stick with that and this is a one-month pullback and it's not that big a deal and as i said earlier there are some tech stocks that benefit from reopening like google and facebook >> so you alluded to it in your

answer, you're still interested in financials because you do believe that rates will be rising at least sort of the longer to medium term trend. >> yeah. i mean, that's right, courtney if you go back and look at the last time the fed said that inflation was transitory, and that was back in 2004 and interest rates were at 1%. they raised rates 17 times over two years which ultimately resulted in a global financial crisis and took rates from 1% to 5 1/4. so it wasn't transitory then and i think if you look at the data today, home prices, best levels in 30 years, wage is up 3.6% which is also another sticky component of inflation and this is going to be just as transitory as it was in 2004 and the fed is behind the curve and you have to play catch-up and with valuations at record levels and that's a toxic combinations with the long duration assets with high p-es with earnings

into the future. >> are you selling via com, andi know you picked it up after the archegos disaster and some people are wondering where that company fits in and the deal-making right now. >> excellent question, sara. we still own viacom, and we are trying to play high-growth themes with value investments, viacom is one of them. so if you look at streaming, viacom will do over 4 billion in revenues in their streaming business up over 60% i think you're going to see, you know, acceleration in the second quarter when they report it's trading at a ten p-e with a dividend yield and it's an easier way to play that theme. >> dan, i have a question about the inflation being transitory and i understand that it could be in certain area, but if you are a retailer and you've raised your prices because your supply chain is more expensive and you

have to pay your labor more and you see consumers are responding that they're not buying the product. so they're still buying even though the prices increased and if i'm a retailer i'm going to go knock that price back down once my input cost goes back doesn't inflation stick around and become much more than transitory >> absolutely. wages fits into that, right? wages sneak into your finished goods and services and you know, if you give somebody a pay raise, you can't come back the next month and say oh, by the way, we're cutting that back that's just not going fly especially not in this political environment. so i think you're going to see more companies start to talk about how inflation is affecting the cost of goods sold and their margins going forward and that's just going to get the bigger issue and things aren't fully opened up yet, but by the time you get to september you'll have most of the unemployment

benefits going away. you'll have kids going back to school so there's no need for someone at home for child care and you know, and you'll have more vaccinations and herd immunity going on by then, as well so between all of those things you'll see even more inflation pressure as you get towards the end of this year especially as unemployment, i think, drops faster than what people are expecting because those three things should happen by september to december. >> dan, one area we don't talk to you about, but i think you do have some exposure in are some of the chinese adr and some of the big chinese companies. are you still there even with this crackdown we're seeing, the disaster at didi which was down another 1.6% today is that still a place you'd like to be? if so, why >> right now the biggest in the stocks move is changes in valuations, right? if you looked at tesla last year, revenues were up 28% the stock was up 740

so if you look at the chinese and internet names and you have the same thing in reverse where even though earnings might be still strong as more and more chinese get access on the internet and more things over the internet, the chinese governments are starting back in september when they stopped the financial ipo, and they've been steadily increasing the pressure on technology companies in particular and so we looked at that and said you have headline risk every day and for right now we've gotten out of them and we were clearly wrong in terms of earlier when we thought thing his hit bottom and then the chinese company ramped things up again in terms of going after these companies and so we decided for right now they haven't gotten cheap enough to catch the falling knife. which was it alibaba, you said? >> no. we still like it the problem is that right now stocks are moving, you know,

based on these headlines that we're seeing, not based on any kind of panels and that was the one that we had liked. we don't own it anymore. we hope to own it again at some point, but we'll see when the headlines stop getting worse, i guess, in china. there are a lot of great companies in the u.s. that you can own that you don't have those issues with. >> we had several guests yesterday saying you have to have the risk tolerance to be in those names because of the headlines and the government interference which is hard to predict. thank you, dan niles, for joining us here today on "the closing bell." let's send it over to mike santoli. this is an interesting one >> usually a background factor and something we don't check in on all that often and interesting to see how this has played out over the last four to five years and is this compiled based on the coverage of geopolitical risk. it's a tech space analysis seeing how much of the perceived geopolitical risk is in the air and they're at low levels relative to last year and some of these significant signposts,

north korea's missile test and the start of the trade war with the u.s. steel tariffs imposed back in 2018 naturally, the pandemic right there. the election seemed like it wasn't concentrated on the question is what do you do with this? the market did really well through this entire period when they were trading based on trade warhead lines and the market would sell off briefly and you carry it higher and it's not to say this this low level of geopolitical risk is in itself bullish for the market and the forward looking basis and does it mean it's complacent and whether it's china, taiwan, tensions and anything related to the russia hacking story and those are the questions worth asking to keep in mind this usually is an excuse for a market move rather than the true driver of things naturally a global pandemic being an exception to that rule, guys. >> thank you very much, mike that's an interesting chart. bitcoin plunging 40% over the

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gathering on sunday in sun valley, m and a, session lagz and cybersecurity just a few of the many topics in focus julia boorstin joins us now with linkedin founder reid hoffman in a first on cnbc interview. julia, take it away. thanks very much, reid hoffman, legendary investor, thank you for joining us here today. >> my pleasure and honor >> you are a close watcher for the technology industry and you've invested in so many different segments your fund has invested in cybersecurity and you've invested in bitcoin and all of these different areas and you've invested in the flying car business what are the technology trends that people will be talking about here this week that you think are most important for us to know about as we enter this new more open world post-covid >> i think the amazing thing is how many trends they'll be talking about. so a.i., we've been seeing, it

will be refvolutionizing every industry and it's hitting autonomous vehicles and the whole a.i. effort and there's a whole bunch of stuff in crypto when i started in crypto i thought there would be three to five cryptocurrencies and not 100+ and it's almost like a nasdaq of crypt on currencies which is bizarre people will see one of the other areas where tech can help us accelerate to the new from the pandemic so it ranges everything from health and the mrna vaccines which are our miracle to how do we work together now that we can be in distributive environments and we can be in hybrid environments and how does that all work and all of those things are the things that everyone's talking about. >> so i want to hear about the future investing in work later and i want to hear about regulation and there are antitrust bills on the table and there is a question about what regulation would do to the start-up economy and they're

competing and how they could impact investing what's your perspective? >> my perspective is that it needs to be lightweight and careful so that you can correct as opposed to pre-plan as much as you can obviously there are a certain things that are kind of a disaster and for a start-up regulation is bad. part of the thing that even when you say well, the large tech companies that have a lot of throw weight and a lot of power and the fact thatthere are a lot of giants going to ten and they're competing for each other and it creates start-ups and one of the investments that i made just a couple of years ago was a search investment because google is focused on the ad model and let's focus the user centric privacy model and that's what creates the start-up space and that's the reason why generally speaking, government is not the answer for creating more interesting diverse start-ups. >> so what would you hope to see

from the regulatory standpoint with antitrust issues especially as they're competing very much in a global scale. i think part of the thing to think about is, like, when you get to these big companies, okay, how much can they help us as opposed to most of the time when people say we can break them apart and they can be better, they're essentially wrong and we'll have more privacy and why that won't work is because the -- essentially the -- you know, like, all of the companies that were competing on privacy, and that's what we ended up getting, you get less privacy, not more >> the question is how do you harness is let me say one thing that's tangible, we desperately want to -- humans, robots and the factories together is how we get there. our effort as the u.s. for doing that is the tech companies so

that's the kind of thing that you want to essentially be happening and that's part of the reason why regulation to help society, good. regulation to break apart or slow down much, much less good >> reid. >> thank you, julia. this is courtney up at the new york stock exchange. >> you know what reid has just lost you, courtney if you want to tell me the question i can pass it along >> sure, julia, i was wondering how he is advising companies how to protect against ransomware attacks and what they're doing to step up their game as these bad guys get sophisticated >> this is the question about cybersecurity. how are you advising that companies you're investing in to protect themselves and also is there an opportunity for you as an investor to create solutions there? >> so one of the -- cybersecurity is one of the evergreen investments in venture capital. and my firm has a number of people who have made things like palo alto networks which was

incubated at graylock and a number of things and so cybersecurity is super important. essentially, however terrified you are about cybersecurity, you're probably not terrified enough, right? the fact that all of this infrastructure is there and there's this ability for worldwide hacking and state-sponsored groups and hostile nation states will do that in order to make ransom attacks is a critical issue for the country. one part of the solution will be start-ups. those will be things that we as venture capitalists will be doing. another part will be essentially how do we allow the tech companies to collaborate together to say on this, you guys can collaborate, normally they don't collaborate and compete intensely, but in cyberspace we need that security layer in order to have a healthy, running society and that's what we need. >> how much greater is the risk because we're now in this higher growth environment and how does

that play into your future of work >> i actually think it makes less of a risk because people are more familiar with it. there may be a risk that your videoconferencing is hacked and you listen to it, but the hacking of spaces, is u.s. people are gaining access to your corporate network and all of that is in fact, reduced. in terms of the collaboration of work, one of the things why i think we're seeing such productivity through the pandemic and after wards is because all of these tools now people are using them. they're using things like at g greylock, they're using them to design the way they work to say how do you work, and not just follow whatever the company says, but make your company work efficiently in the way that you have a competitive for education and that's what's coming out of this and some of that is remote. which is how do we have talent

that we can have anywhere. we can have the talent in kansas and canada, and in the mediterranean. all these places, we bring them together and we can harness them for the products we're bringing. >> as you look at the investments now ask the categories that you want to bet on, how do you think the consumer is going to be different both enterprise consumer and the everyday consumer and how do you want to think about investing in platforms, which i know you like to bet on as well as start-ups that would serve these new types of consumers >> as you know, i always think about networks and platforms i think there's a whole world of productivity that's coming and that's from the ones you mentioned before i think there's another generation of entertainment and everyone realized that this has become much more expert with mobile phones. we've all become much more expert on computers and we're all much more digital native and that creates massive

opportunities. and part of the thing is part of the evolution of the software platforms is when the next generation of comfort is used to be -- now it's 30 or more processors you're using and in terms of how you do that work and you're seeing an explosion of creativity which created marketplaces where people are everything from etsy to, you know, tiktok and patrion and all these places where people can offer creativity in the world. >> fascinating time to be investing in these new platforms and networks reid hoffman, always great to get your insight into the future we appreciate you talking to us today. back over to you. >> julia boorstin, thank you, out in sun valley, idaho with reid hoffman ahead, saquon barkeley with his energy drink maker x2 and when

he'll be able to hit the field again after suffering a serious knee knowledgery last season >> hard settler sales is slowing llwn, but one firm is making a ca on boston beer. we'll have details later on "closing bell. 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. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management.

it is time now for cnbc news update with shepard smith. hi, shep. >> from the news on cnbc here's what's happening a flood emergency declared in the small town of bellon, new mexico about a half an hour south of albuquerque. heavy rain there caused this canal to breach, sent water gushing through the entire center of the town crews are now working to clean up mud and debris as the floodwaters are finally receding a man who killed five people at the capitol gazette in maryland told a psychiatrist that he wants to make a farce of efforts to determine his mental health and that's from prosecutor in the penalty phase of jared ramos trial he pled guilty in 2019 jurors hearing testimony on his mental state so they can decide whether he goes on prison or a maximum security mental health facility. and a judge laying blame for the worst mass shooting in texas

history on the u.s. air force. the judge writes the military was 60% responsible for the attack by a former serviceman on the first baptist church in sutherland springs, texas. 25 people died there in that attack the judge faulted the air force for failing to enter the shooter's criminal history into a database that should have stopped him from buying the weapon that he used in that attack tonight, details from texas. nationwide, figuring out who is at fault for mass shootings and what more needs to be done to stop them on the news right after jim kramer, 7:00 eastern cnbc >> we'll be tuning in. sounds like a full show. up next, saquon barkeley is the latest big name athlete to take a stake in energy drink maker x2 and he joins us next along with the company's ceo. stay tuned interest is even stro. ♪♪

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energy drink maker x2 announcing a $16 million series defunding round. new york giants runningback saquon barkeley joins two-time nba finals mvp kawhi leonard, ad x2 mark french join us congrats on the investment how are you getting top athletes to invest in your company. >> first and foremost, thank you for having saquon and i.

we truly appreciate it we are fortunate that the brand started in the pro locker room and now saquon and kawhi are bringing natural, healthy energy to the athlete today 25 pro teams have been buying x2 for a few reasons and it is nsf certified which is a differentiator in the category, cleaningredients, no artificia stimulants and athletes have been seeing the benefits of x2 and we are just thrilled to have another partner around the table, not just to endorse our brand, but help us with what's next whether that's new flavors, new skus and we're exat that timic to have saquon on the team. >> i'd love to hear from you on this especially given how crowded the energy drink market really is. there's the market leader gatorade which is owned by pepsico. there's body armor and so many others i'm sure you get pitched all of the time why did you go with this one what differentiates it

>> well, as an athlete, you are brought a lot of those deals, but the most important things is working with stuff that's authentic to you, and that's the biggest thing for me especially coming off of a knee injury, you want to find the right things to put in your body and that's what x2 is, it's clean, it's healthy and real ingredients and that's probably the most important thing that i need in my body to help my career longevity wise. obviously, i've been doing a good job so far, but i want to do this for a very long time and that's where you have to start yes, there are competitors and stuff and the people that have come and i've used other stuff before, but this is so much better it tastes goeod and you don't have the jitters like other energy drinks and working with x2 is truly a blessing and i'm happy to be a part of it and happy to put it out to the world and show them what we have and that we have a great, clean, healthy lined and it will help change the world

>> saquon, of course, you are now in the nfl and previous were a star player at penn state university o i'm a big buckeye fan, and i won't hold it against you. i was at that game where penn state beat us pretty bad what advice would you give to the ncaa players that are now able to make money off their image and likeness that the rule has changed. you mentioned authenticity is that your number one advice to players now in college that can also open up their eyes to possible investments >> yeah. that's a great question, and obviously with the new rule allowing college guys to be able to get paid, yes, i would say go with stuff that are authentic to you. and there are a lot of snakes out there and with it being a new rule, people will devalue your worth at the same time. a lot of people and the kids will jump at the first opportunities they have because it's a chance for them to get

paid, but sometimes you have to sit back, look at the deal, go over with your family or whoever you and your family decide with and sit back and look at it and don't just make your decision just based off of emotions really sit back and look at the deal because like i said, even though it's a blessing that college players can get paid, there will be a lot of snakes that come to play, too >> i just want to weigh in on that sea onhas an unbelievable team that surrounds him and one of the things that we've talked about from the beginning, who else is around the table so you know, el caterton is the lead investor in this round and has been the lead investor in x2 from the very beginning and that's just great company to be around >> right >> 100%. >> lvmh. >> we have new board members -- we have new board members that have joined, as well which i know saquon is equally excited about to take us to the next level. eric foss, the ceo of two

fortune 200 beverage companies in pepsi bottling and kawhi leonard. so we've really done our part, i feel, to build a business that makes athletes at saquon's level eager to join us to try to take it to the next level. >> so what is the next level quickly, mark? is it getting bought like a pepsico or coca-cola is it going public how do you expand the reach here and gain scale >> yeah. thank you for asking so where we are right now is we are just laser focused on building this brand. we have a brand that up until today strength and conditioning coaches and pro locker rooms knew firsthand, but no one else did, so with saquon and qkawhi and amazing distribution partners like subway, cvs, gnc and something saquon and i are

working on is introducing a whole new batch of products in the ready to drink space and you will start to see x2 in grocery and the convenience channel starting in the fall in co conjunction with the nfl season. >> how is your knee. you mentioned the injury and people want to know and will you be ready for training camp in the end of july? >> i'm just taking it one day at a time obviously having this injury makes you step outside of yourself and teaches you patience and that's the best thing i've learned from this is be patient and take it one day at a time and don't look too far in the future and that moment and that day and when i'm able to get going, go out there and give 110% from my teammates and the fans >> everyone is going to be watching thank you very much, saquon barkeley and mark french for joining us here today on this announcement >> we have breaking news on google josh lipton has details.

>> this is a big headline dropping bloomberg is reporting that dozens of states are poised to su sue alphabet's google and it legally abused power over develops that distributed apps through the google play store on mobile devices they say the state attorneys general prepared to file an antitrust lawsuit and google takes purchases and subscriptions inside apps and the lawsuit they say could be filed as soon as wednesday we have seen there is, indeed, an antitrust lawsuit that has been filed, but the documents have not been released just yet and the reports here that dozens have been poised to suwe alphabet's google. josh lipton, thank you for bringing that to us. >> and coming up next, a hard seltzer bubble and some think the hard seltzer trend is 2020 and one firm is getting bullish on the popular drink and how that's impacting some of the alcohol stocks ahead

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boston beer having a rough two months it's down more than 20% since

april. it got a bullish update from credit suisse. frank holland here with more on the seltzer trade. >> boston beer, the maker of truly hard seltzer closed 3% higher after the credit suisse upgrade. the forecast for demand to bubble up. alcohol stocks with the exception of ab imbev, they've under performed the market in the past three months. even as bars and restaurants reopen, hard seltzer growth has slowed down. credit suisse issued the new rules for hard seltzer seltzer will gain 10% of the u.s. alcohol market by 2025 up from 3.5% today. forecast new opportunities for promotion including things like hard seltzer tastings, sponsorships and large public events and the credit suisse note says that will benefit big brands the most. white claw currently the leader. credit suisse sees a huge opportunity to grow share and

actually white claw's growth is actually decelerating during 2021 back over to you. >> more competition. thanks. up next, we're looking ahead. levi strauss earnings are on deck we're betting big on stretch to denim. coming up when "closing bell" comes right back hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot.

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now to our wall street look ahead. jobless claims on a thursday and consumer credit. on the earnings front, levi strauss set to report. courtney, what should we be watching this has been a strong one. >> it has been a strong one. the street is expecting a strong quarter from levi strauss. analysts expect earnings to grow 143% the shares have alternated between gains and losses in response to those beats.

ubv analyst noted searches for the categories are rising double digits with jeans leading up 200% year over year. the direction of consumer's business and women's, both areas with growth potential. we've talked about this before i'm still on the hunt of the pair of jeans i'm supposed to be wearing now. skinny jeans are out, baggy jeans look ridiculous. >> there are ones tight on your thighs but looser so they're in style. i can give you tips. >> i feel like i've been buying a lot of jeans. >> levis are very in >> very. >> they've done partnerships with rebound which is a hot, trendy band. >> what i'm hearing is a confirmation of my long standing prediction that is a rotation out of at leisure into denim. >> it's not rotation out of at leisure, they're both working. people are buying both you have to skill wear cool yoga

pants. >> at leisure for every occasion was the thing that might be going away. >> might stop seeing it on the playground >> i read about this he says it's not just jeans, it's country western theme is really back in it should impact boot barn once you break them in, you don't want to buy another pair i feel like it's a problem you have them for different years. >> you have to get different colors. >> mike, 45 seconds to go to tell us what to watch and see whether the record gains can continue. >> jobless claims a big improvement. see if that continues. structural weirdness i think the biggest subject people are pointing out right now is the cyclical groups down 8 to 10%, transports, banks, industrials, home builders off 8 to 10%

all off 40 to 70%. does that mean they're still up a lot? they're actually pulling back? that's the in between level we're at i don't think it will be resolved tomorrow. >> we'll be watching that does it for the "closing bell." "fast money" begins right now. live from the nasdaq market center new york city times square this is "fast money. ryan kelly, steve a dad my trading the record rally ahead with the big names in the new high sessions. is it time to fade the record runs the four names we are watching out of luck, investors folding on betting stocks. take a gamble on the stocks. oracle rocketing higher. they're forecasting dark skies ahead for this cloud play. we will break down the action. we start off though with a major moment of truth in the mart.