increases have been over time, check this out back in 2016 we got nothing, no raise whatsoever same with 2010, 2011 you go back to the late '70s, early 1980s when ronald reagan to the elected, it was 14% >> so typically the big adjustment can be followed by a small one. >> maybe if it's transitory. >> our show is transitory. "closing bell" is right now. >> welcome i'm wilfred frost at the new york stock exchange. nasdaq seeing declines around 1% >> i'm sara eisen in washington d.c. today we have an interview with janet yellen in the show. what's driving the action in the final action of trade. jay powell testifying for a second day to congress, this time in front of the bank committee, facing questions about inflation, the economy and

more those highlights ahead jobless claims hitting a pandemic era low and the empire state manufacturing index blew a past expectations. morgan stanley rounding out the strong bank results. 59 minutes to go in the session. energy, tech, small caps are seeing the biggest decline and we have a big first on cnbc interview coming your way from california janet yellen joining us to talk about the global minimum tax deal, her read on inflation with the new numbers this week, the tech crackdown in china and more and also the day the checks go out for the child tax credit for american families. >> we cannot wait, looking forward to that interview. looking straight to the market tech pulling back, energy also underpe underperforming. mike is tracking it for us. >> the weakness in tech giving back some of the gains this year

is the difference in the story today, otherwise similar, more stocks down than up, small caps underperforming, treasury yields lower. but overall kind of staying in this churning range we've been at for a while the s&p is basically where it's at two fridays ago, so essentially almost two weeks ago. also i've been pointing out about 4383 level is that 100% gain threshold from the march 2020 low so we're in this give and take area where there's been a little bit of a rescue by the index that's giving back some today. look at microsoft, one of, of course, the crucial huge, stable growth companies relative to the s&p. here's a year-to-date with the relationship the second biggest stock in the market but it's going to have an impact when microsoft has peaked three times after these runs of

outperformance relative to the s&p it has led to the index flattening out and making no progress who knows if this half percent decline today is a retrace by microsoft but something to keep in mind, more so than apple, actually, it runs in akcadence with the index itself. look at the concentration of the s&p in the largest top five stocks remember, last september, last summer the complaint was the whole market was run by five companies that was this peak here this goes back to 1980, by the way, you can see it was a more concentrated market back then when it was exxon, ge and at&t, and the rest of it the earnings contributed by these five we 'not as extreme as we were back then, look at the peak last year a huge spread of concentration in value and valuation, relative to earnings. we're a little lower but not too far from the status.

obviously been a top heavy move just recently. >> the other standout today particularly when you consider tech underperforming is it's come as yields have pulled back and raises that debate again as to whether low yields are still a good thing for stocks or whether in a new era and uncertain what that all means. >> exactly it's been pretty compatible with growth outperforming when yields are coming back. obviously it might flare, some of the slow down concerns about the economy. i think it's a good lesson, though, on a one day basis it's not going to be so tightly linked to three or four basis point mov in the treasury. this morning it looked like it was going to be but now you have banks bouncing after that. >> michael santoli, thank you. we'll see you soon speaking of the banks which turned positive as a group, morgan stanley rounding out earnings that stock a little bit under pressure what are the highlights? >> off its lows from this

morning. the results are solid to be fair nice beats across their departments investment banking up 16%, to $2.4 billion, and equity trading up 8% a year to $2.8 billion and like the other banks those picked up some of the slacks from fixed income trading down 45% year over year to $2 billion all together banks are enjoying significant elevated capital markets compared to prepandemic and likely with lasting market share gains for the big u.s. players. wealth management for morgan stanley up $6.1 billion. the ceo was also asked on the earnings call about his fairly firm words in late in terms of wanting staff back in the office. >> the comment i made about the work place, you know, i

fundamentally believe the way you and i and others sitting in this room, sharona, john, have developed our careers is being mentored by and watching and experiencing the professional skills of those who come before us it's certainly dramatically affected my career, i don't think you can do that sitting at home by yourself i think there's a limit to how far, as soon as the zoom technology is, how far that can take you so what i said was i wanted people to start coming back in the office, certainly by labor day, but i also said, which wasn't picked up in the media, that we would be flexibility where flexibility was called for. >> he said he expected to have 80% back in the office by september. the stock, actually, is down a little bit today, off its lows but the best performer week to date of the big six banks up 2%. even if today is lackluster it had risen earlier in the week on

the backs of goldman sachs' numbers. so these numbers taken well. it's the themes for the investment banks that came out earlier in the banks. >> you were saying there was differentiate, now that you've seen them all, who's in the best shape in this environment? >> i think the biggest takeaway is that we are still seeing in the 2021, that investment banking is a better place to be than retail banking. that's obvious when you see the 10 yield below 1.3%. the interest rates banks still haven't got that rise in the yield curve yet. we were wondering how much of a slow down that capital markets activity would see i think the two key takeaways there are is there is a great cyclical tell when it comes to investment banks, m&a, i.p.o.s, and a structural tailwind when

it comes to trading for u.s. banks. we need to see the european and asian banks to have that confirmed. but they've all been talking about seeing trades lasting because of structural market share gains coming to the big u.s. players with scale and expertise. >> we'll talk about this with the truest ceo coming up. up next, the faang stocks are pulling back as those companies gear up for earnings alphabet all lower by at least 1% mark mahaney, his top picks for the sector right now you're watching "closing bell" on cnbc, a bit of a recovery here the sun sector is turning green.

what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward, like through our venture capital group. backing technologies like electric vehicle charging, carbon capture and even nuclear fusion. we may not know just what lies ahead, but it's only human... to search for it. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

visit indeed.com/hire and get started today. - [narrator] this is kate. - hey. - [narrator] she takes two prescriptions. kate's son jack, takes one too. kate works hard, and thought she had good insurance. but she still pays too much. that's no good. so kate downloaded the goodrx app. now she can compare prescription prices, to find the best discounts. she even beats her insurance price. good for you kate, good for you. goodrx, stop paying too much for your prescriptions. download the free app today. - [announcer] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2022. - [narrator] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

stocks are mostly lower as we head to the close though we are seeing strength, financials, materials are positive nasdaq down by almost 1% led by the faang stocks joining us is mark mahaney, it's unusual because the 10 year yield is below 130 and you're seeing buying in the treasury market which usually bodes well for the big tech names did they just get over done the last few weeks >> the honest answer is i don't know why you have that district today. generally the fall in the interest rates have been positive for high-tech, high growth, price of sales, multiple stock. today is a little baffling trend for me i assume it's a one offer, a one

dayer but we'll track it. >> it's nothing extreme, 1% move off record highs what does it mean for the set up of earnings and where expectations are >> expectations are all over the map if you look at large cap and consumer internet. there's a couple of interesting plays in here, we continue to like as our top picks, amazon, uber and facebook. of those three we expect results and numbers to go up most likely with uber and facebook amazon there's a trick here, prime day was good for the company in the june quarter, typically it's in the september quarter. so i think the streets got this mismodelled, i think that's more of a trading call than investment call. amazon has finally been unlocked after seven months of sideways performance. it'll continue to outperform in the next six to nine months. it's our top pick in mega cap.

>> i notice there are a couple holds, no sells but a slew of buys i wonder if you worry about that whether or not there is a top, more broadly, overbullishness perhaps in big cap and tech plays. >> it could be over bullish on my part. i tracked this sector for quarter of a century most of the investments have worked to the long side, just because secular growth really carries businesses even the poorly performing businesses, even yahoo and ebay. i've been harsh with some of the names on the list, like twitter. i'm not convinced yet but twitter has improved i've seen things happen, we try to steer clear of those, though. we have a survivor mentally here, you have a good number, especially in the mega-cap

space. the question is when can you get the stocks dislocated and get aggressive opportunities to buy them not looking for dislocated opportunities to sell them and megacap they pass the bar. >> what about netflix around this move into gaming. it's not looking to charge extra revenue to let people play games. what do you think the plan and the strategy is? does it suggest that u.s. streaming market is getting too saturated? >> it could, sara. you may be right about the last point. i've never seen the company. they've always been pretty long term oriented people wonder what the next act is? and the company said it's act 1, it's global streaming, a lot of iterations along the way in terms of local language originals. people wondered about whether they would get into advertising revenue, they consistently debunked that idea, i don't think it's a good market to get

into now the real question has been what else can you layer in, you have a platform in a way, you have these 210 million paid subscribers what else can you sell them? i thought video gaming was a great opportunity. how they execute it, package it in is an unknown to me, i doubt it's material business in the next year or two, could it be in the next three to five years absolute lit we haven't seen the design so it's premature they have a very highly satisfied customer base. you have that, you can bring in other features and products. >> you mentioned uber but i noticed lyft has the same upside to your price target as uber does why the preference for uber? >> we like both stocks both into the prints, this is -- we are seeing mobility open up -- hopefully opening up unless delta is going to change everything it looks like mobility is

opening it up, and it's social occasions, airport trips and commutes commutes are going to even start picking up we think in the fall so fundamentals are going to get better for both of the names they're both going to hit e byda in the back half of the year that's why we like the stock here it's a broader play, global play on ride sharing. so we have a preference for uber but the upside is similar for both names. >> what about google, it's up 45% this year, clearly the ad market is coming back a big way. how much is factored in relative to what we'll learn? >> i think a lot of that is factored in. also other things that happened with google since the beginning of the year. two things they gave u disclosure on how much they're losing in google cloud, they're realizing this company is underearning people will zero out the losses for google crowd because we know

it's profitable if we stick with it google cloud, the momentum is good, they're growing faster than everyone else in the industry so they have two wins in the market, two wins behind their sails year-to-date of the ad names they have the most dependency reliance on the weakest advertising sectors to date, because of covid, that's travel and hospitality they may have the longest legs of growth coming out of this because the stock is so outperformed year-to-date, i have a preference for facebook i think that's marore of a call tt google, i'm both but i think there's more juice to the upside on facebook. >> thanks so much. good to see you as always. >> thank you. still up, a first on cnbc interview with janet yellen. you do not want to miss that plus david giroux says he's

getting worried about the market in 2022 and 2023 check out today's top search tickers on cnbc.com. ten year yield on top, followed by apple, square and tesla interview with secretary yellen coming up soon ♪ ♪ with cutting-edge tech, world-class interiors, and peerless design...

their only competition is each other. the incomparable mercedes-benz suvs. extraordinary runs in the family. visit your local mercedes-benz dealer today for exceptional lease and financing offers. folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq

- [announcer] dearest pizzerias, oh, guardians of the pie. - ooh! - [announcer] thanks for making every slice worth torching the roof of our mouths. - hiya there- - [announcer] if you're a serving late, so are we. (pleasant orchestral music) (bike rattling)

welcome back fed chair jay powell giving a second day of testimony to congress this time in front of the senate banking committee, facing some heated questions steve has the highlights for us. hi, steve. >> hey, yeah fed chair jay powell telling senators the fed is in active kr consideration, maybe a step further than he went in his testimony yesterday before the house. he said the consideration started at the june meeting, will continue in july and once again insisted in the face of those persistent questioning, that the inflation surge will

prove temporary but if it doesn't he said the fed will act. >> we're experiencing a big up tick in inflation, bigger than many expected, bigger than certainly i expected and we're trying to understand whether it's something that will pass through fairly quickly or whether, in fact, we need to act. one way or the other we're not going to be going into a period of high inflation for a long period of time because, of course, we have tools to address that >> powell is getting heat on inflation, mostly from republicans, they tie easy fed policy and high spending from the biden administration making them the culprits for the inflation surge. he's criticized by the democrats for reform for banking administrations. both warren and brown were big on that today. where he's not getting criticism is the bond markets. yields plunged further after he spoke. >> i was going to ask you about

the ten year yield below 130, even if you don't think that's the most telling signal from growth, even if you think it's being manipulated or impacted by global issues. look at the market, transports are down 9% from recent highs. the rustle 2,000 index of small caps, a tell on the u.s. economy down 8% from recent highs. i'm wondering if you're seeing anything in the data that is pointing to slower growth? >> well, we know we're going to get that retail sales report tomorrow, sara the top line is probably going to be negative because of auto sales, why are they negative because they can't get the parts. that's a place supply disruptions are working into some of the overall macro numbers but the overall number is supposed to be positive as people went out to spend i did talk to a bond guy moments before we got on air, i said what's going on, who's buying? who isn't buying he said he said the market got caught

short, this was a trade nobody expected there was nobody on the other side of it so it free falled down this way i'm not sure how much of a macro signal to take when it's technical like that. the spread, the 210, has gotten tighter. you don't see the idea that the fed may raise rates being something that brings the short end down that's not what the trade appears to be at this point. >> you see it all over, even the outperformance of consumer stables to discretionary, tells you something cyclical is going on there steve, thank you. >> thank you. we'll talk about inflation and the state of the recovery when we're joined by treasury secretary janet yellen after the break. a private club goes public, the parent company of soho house going public today what the ceo says about running a hospitality organization during a pandemic. bonds, yields moving lower

as steve said, there is a lot of buying ten year yield dipping below 130, 125 or so is the recent low we'll be right back on "closing bell."

welcome back 31 minutes left of the session let's check out some individual market movers. the membership collective group, parent company of members club soho house went public today, listing at the new york stock exchange the company raised $420 million valuing the company at 2.8 billion the i.p.o. price at $14 a share

and began trade at $13.15. founder and ceo nick jones joined me earlier, he commented on the different stages of post-pandemic reopenings for his 30 clubs all over the world. >> obviously it was very challenging but the great thing was the loyalty of our members they stuck by us, came to the clubs when they reopened what we're seeing now, the uk, where i'm coming from now is opening properly on monday and our members are definitely coming back to the houses. america the same europe is a bit slower and asia is a bit slower. what we are seeing is a really big convincing spout. >> they have 119,000 members and retained 92% through the pandemic part of the funds raised will go to global expansion which he touched on as well as the digital membership app. >> what our members love most is the opening of new houses we're

opening in rome, paris, tell v - tel aviv. what we have created now is a totally hybrid club. global hybrid club where you can go physically and continue your continue membership physically you can connect with members you can join the conversation and watch an incredible amount of content provided by our members. we see a real growth in digital membership in the future >> the stock is trading down 7 or 8%, just below $13 at the moment though he wouldn't give exact numbers they were retail trade aspect of this to go out to the 120,000 members and offer stock to them as part of the process we're led to believe the takeup from members was very significant. i guess that gives it a broad shareholder base on day one. >> i think the cool factor, the

exclusive factor kind of peaked in 2003 when it was a major part of a sex and the city episode with jerry halliwell one of the classics that's what put it on the map for me. >> i didn't see that particular episode. nor was i let in that early. my membership for them was a few years later. >> you couldn't go near it. >> i since left, actually. which probably means it's about to be very cool again. we'll see. the stock is down. >> down 8% time for a cnbc news update. >> we begin in california where lawmakers have passed the country's first state funded guaranteed income plan $35 million is earmarked for monthly payments with no restrictions on how it can be spent. german chancellor, angela merkel meeting with president biden and discussing the enduring friendship of their two countries. it's likely her last trip to lob

the white house. a 19-year-old member of the national soccer team is calling on platforms to do something to stop racial messages, messages to him and other black members after they missed penalty kicks. he said the negative will not break him. >> i was going to add there, firstly, it's just -- these players don't need to come out and apologize for missing penalty kicks, they're heroes as it was but great they're calling out this abuse they got and trying to make positive change. we hope the platforms do make changes, it's unacceptable and embarrassing, also four arrests made in the uk for this abuse online hopefully something positive comes out of what has been a horrible episode off the back of these football matches. >> i feel like european soccer

has a lot of reckoning to do with this, racism, anti-semitism in the past. i know the league is doing a good job, trying to fight it, but it needs to be dealt with. >> totally does. these companies -- he included instagram, facebook, twitter, tagged them directly in this statement, is that social media has undoubtedly made it worse, people can do it anonymously, think they can get away with it. four people have been arrested, but many more need to be i hope the platforms respond. when we come back, truist reporting strong numbers at the top of the next hour, treasury secretary janet yellen on the child tax credit, those ec going into bank accounts today. inflation, housing and much more we'll be right back. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online

commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it. do you have a life insurance policy you no longer need? now

you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance. experience our advance standards safety technology on a full line of vehicles. at the lexus golden opportunity sales event. get 1.9% apr financing on the 2021 rx 350. experience amazing. sales are down from last quarter on the 2021 rx 350. 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. keeping your oyster business growing has you swamped. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

truist financial high today, bank reporting strong earnings before the bell. truist financial chairman and ceo joins us now in a "closing bell" exclusive. kelly, good afternoon to you, good to see you as always. >> good to see you, willeford, great to be with you >> i wanted to touch first of all on what you're seeing on the economy. clearly the numbers were good and you had similar themes to the other banks. what's your view as to whether the economic recovery is based on fundamentals or whether there's a risk when stimulus is removed that things could fall quite dramatically >> i really believe it's based

on fundamentals. certainly there is some demand created by the stimulus. but i've been talking to a lot of business people over the last few months, probably a couple hundred across our footprint and i'll tell you the optimism is really high they're talking about new projects, new investments they're going to make. their challenges are around some supply chain issues and labor shortages and labor prices are substantial. but the overall optimism is very high it gives me a lot of encouragement in terms of what we're going to see going forward. >> what about housing in particular, kelly? what are you seeing there? do you think, it's a little bubble luscious? >> housing is really hot, as you know it's incredible. part of that is people moving from larger cities to other areas. we're seeing a lot of immigration into mid atlantic southeast where we're primarily

located. and so, i think a lot of people maybe had thought about moving, needed to move maybe they've added to the family, couldn't move during the pandemic, and now you have some pent up desire to move so all of that combined has caused a huge increase in demand and it has not been a huge increase in supply of housing over the last two or three years. and so, it's really hot now. it'll cool down some as we go forward. but i think we're in for a strong housing market for a number of years. >> kelly, this is likely to be your final "closing bell" appearance because you're moving to the executive chairman, of course, in the fall. and wanted to actually have some bigger reflections of your view of the banking industry as a whole. the first question i had on that was do you feel vindicated by the merger you crexecuted to

create truist and how important is it to this company? >> thank you for asking. i am really, really excited about where truist is. bill rogers, the ceo of sun trust and i came together a couple of years ago and the reason we did is because we saw the megatrends that were happening in our industry, which were largely around the need for additional scale to invest in technology, in marketing, in cyber security management. and all of those needs have now turned out to be surely justified and we saw add advantages to combining our companies. and all of that is turning out to how we thought. i would humbly say it's going better than i expected when we announced the merger and i think we're in a really good position as we go forward. >> you're in the top ten by

assets in the u.s., seventh or eighth, i believe, do you think any banks smaller than you may struggle in the next five to ten years because of investment in areas like tech? >> we're number seven now, and i really think that, you know, we're about 525 billion. i do believe that institutions that are meaningfully smaller than that are going to face the same challenges we faced we were each about 225 billion when we came together. and we felt huge needs to improve in terms of scale. certainly think smaller firms are going to face -- are facing those same challenges, because the issues that affected us are affecting everybody. everybody is having to invest more in technology particularly the smaller institutions competing with the largest, national banks.

the technology is the scalable concept, but the marketing is huge so when you're a smaller institution and you're up against in your market a larger institution that way out spends you, then perception becomes reality and we've seen over the last decade a shift towards new accounts being opened by the very largest institutions and in many cases, in all honesty, it's not because the quality is better at the larger institution, it's because they out marketed the smaller institution. what we saw, others are going to see and are seeing i suspect you will see some continued consolidation. and i think that will be net good for the country and good for the economy. >> kelly, i should have said this is probably your last appearance as ceo. we hope it's not your last appearance on "closing bell" altogether we congratulate you on a great tenure nice to see you. >> great to see you.

it's been a pleasure being a part of an honorable profession. you all do a great job covering our industry and any time i can be helpful, i'm happy to. >> kelly, thank you so much. kelly king chairman and ceo of truist moving upstairs to executive chairman in a few months time. the new warning about the chevy bolt, atndth a more when we take you inside the market zone that's next. , hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on the all 2021 lexus hybrid models. experience amazing.

- [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits get 0.9% apr financing on the all 2021 lexus hybrid models. toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu.

keeping your oyster business growing has you swamped. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

first up is this exquisite bowl of french onion dip. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row! next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowed-out loaf of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance. with and 13 minutes left in

the trading day, commercial free coverage of all the action going into the close mike santoli is here to break down the crucial moments we have stephanie link back on a thursday as well welcome, stephanie we kick it off with the broader market, s&p 500 and dow trading higher, the nasdaq is on track for its worst day in a month utilities, staples and real estate is lower. and interesting technology is not in there >> i would read that as simply the nasdaq 100 versus small cap russell 2000 relationship got super stretched. only so far every day that the big megacap growth stocks with

do i would read it that way as opposed to a necessarily changed relationship with how yields move somewhat unbalanced market, defensive tone, unsteady net-net not really a lot of damage to the overall trend. we're sitting here 1%-ish from the record high still. >> steph, are you concerned it's going to take a lot from earnings to get stocks to react to the upside? >> it certainly could be possible, right. we have had an enormous run from the lows from last year, we had enormous runs in many different sectors, growth and value, year to date, kind of pleased to see value out perform growth today, to be honest with you because it's been one sided in the last month and a half sure as you no know, i'm always looking for opportunities i have a little extra cash, it's prudent around earning seasons if you listen to the companies and the conference calls you get

opportunities. like a united healthcare today that started down. how about a call from coke on derivative from pep see. some of the banks did well in terms of execution and rallying around net income margins. your interview with truist was amazing. that story is interesting, they executed quite well. they're doing a good job, in general, the banks on cost other than bank of america which had a couple of one timers i thought the rest of the group did well you're getting opportunities and that's what i like to do around earning seasons. >> yields having trouble today the take on bonds right now. >> bond market is not believing the inflation right now, which is interesting because it suggests that they think the fed is going to get more serious about inflation not being transitory so it's odd when the cpi comes

out hot the bond market doesn't go down, it's stable or higher and that's because the bond market is thinking one move ahead in the chess game that the fed may actually have to start doing something about seriously reducing these bond buying programs and maybe even, god forbid, start raising short term interest rates >> mike, i mean, so many movers that could be driving this yield but is it necessarily suggesting that or is it just suggesting that it is going to be transitory and the fed is going to keep therefore buying bonds and keep yields down. >> both of those things could be in the mix i do think you can look at other indicators like the market implied inflation expectations beyond five years and also where the market indicates maybe the first rate hike will happen to say yes, since the may cpi meeting and the june fed meeting we have seen a little more of a tightening expectation embedded

in the bond market it doesn't mean that means the 10 year note yield is capped we can't go back above 1.5% but there's been this wave of concern that the fed will get in fr front of this or not let inflation go on as long as we think. you look at that chart saying yeah, it probably should have gone down a while based on market mechanics. >> does the move in yields make you rethink any of your cyclical positions? because a lot of those groups have gotten wrecked as a result of what's happened, auto, energy, airlines these are groups all down 19% from the highs. >> but they're up still quite a bit from the lows. the bond market has surprised everyone, myself included. when i step back and i look at what i'm reading in terms of the economic data, we have strong

growth and we absolutely have inflation. absolutely there's no question in my mind we talked about the growth in terms of the consumer, jobs and wages and initial climbs were pretty good. home prices, so the consumer, check, they're doing very good i'm not going to be worried if we see negative print on the retail sales by the way tomorrow in terms of manufacturing, we talked about that too endlessly about ism and pmi north of 50. 60 is expansionary we've been north of 60 for months that is a big deal when i look at -- and i look at inflation, so the data on the growth is there. i look at inflation, a cpi print of 5% analyzed, ppi 7% plus annualized, that's inflation then you see levels not seen since 1979

wages going up, jolt at 9.2 million. shelter costs are going up because moratoriums are being lifted that's a wild card i'm watching. i watch this stuff and bond yields should not be where they are. i have to think it's technical, the fed, bco, coj, the delta variant, i think it's good for risk, i like the cyclicals because we've seen a pull back let's see the reaction to the cyclical stocks next week. we get a slew of them. >> does this yield move lower make you want to i never crease your morgan stanley more than your bank of america of wells fargo? >> i thought it opened down this morning and that was absurd. a great job across the board a few things to pick at. across the board really strong and he's going to be in the

market with $12 million buy back in the next couple days after the black out. so i want to be buying with him for sure wells fargo i'm going to keep my position, it's huge for me i thought they did the best in terms of cost and execution against high expectations. i was surprised by the reaction yesterday. i like those two a lot, yes, better than bank of america for sure >> the biggest -- at least the biggest loser percentage wise, biogen shares under heavy pressure after two health systems said they will not administer the new alzheimer's drug to patient. meg has the details. >> cleveland clinic and sinai saying they won't give the drug citing serious concerns about approval they'll wait until an investigation by the hhs inspector general is complete. the cleveland clinic says based on the safety and efficacy data behind the drug they decided not to carry it right now.

the decision is the latest blow to this drug which was approved last month in recent fda history. biogen calling the moves d disappointing. >> there was so much hope for society, for this kind of drug but putting that aside for a moment, what do you do with the stock? >> well, the stock even after dh move is up 33% on the year traded 18 times. it's not exactly cheap here's the thing, i'm surprised it's down so much today, on july 8th, the fda did walk back the original approval and gave it a more narrow label. so this was on july 8th. so you knew there was some uneasiness from the fda, from the company. and from obviously hospitals so the problem is, sarah, the numbers went up 30% -- earnings numbers went up 30% between 22

and 25 just from this drug alone. some people thought this could be in a bull case by 2032, a $28 billion drug, that actually compares to humera and keytruda. the expectations were enormous i get the pull back but i feel like we were prepped for this a little bit, let it settle down if it comes in more they have a great pipeline, management team you may want to look at it >> shares of gm are lower after issuing a warner to some chevy bolt owners. >> this has to do with chevy bolt fires and there are eight of them that general motors is investigating. this is one of them from just last week. because of this and the other fires, gm is now issuing two warnings first of all, do not charge the vehicles unattended, specifically overnight also owners should be parking the cars outside

the federal government also issuing this warning saying the affected vehicles cell packs have the potential to smoke and ignite internally which spreads to the rest of the vehicle and cause a structure fire if parked inside a garage or near a house. this warning impacts just under 51,000 bolts model years 2017 to 2019 some of these, here's the troubling part some of the fires happened after the vehicles were repaired after a recall to fix a battery problem last november. general motors looking into this no final action in terms of what they expect to be done to fix this potential problem with some of batteries in these chevy bolts. back to you. gm shares down almost 2% we have about two minutes to go in the trading day what do you see in the market internationals as we go to the close? >> weak again.

we're testing the market's ability to suffer the day-to-day industry of breath look at consumer discretionary versus staples you mentioned on a week to day basis pretty good performance spread of well over 2% points, staples outperforming year-to-date discretionary still beating and amazon and tesla 36% of discretionary volatility perked up, near 17. not breaking out at all. seems like the rotation is still keeping volatility suppressed at the moment just under 1 minute left the dow is higher once again by 51 points. the do you at its own session highs. but that doesn't apply to all of the indexes, we have a decline of 0.7% for the nasdaq, 0.3% for the s&p. russell down about half a

percent. energy once again down 1.5% today down over 5% now for the week technology continued, communication rounding rout the significant decline in terms of sectors on the s&p 500 yields falling below 1.3%. s&p 500 down a third of 1% now up 0.1%, nasdaq down 0.7%. that's the worst day for the nasdaq in just about a month, june 16th. welcome back to closing bell i'm sara eisen with wilfred frost and mike santoli look at how we finished the day on wall street dow only one with a gain and only a little more than .1 of 1% sales force, j&j and boeing were

the biggest drags. the s&p, near record highs minor pullbacks, but it was led by energy, technology, consumer, utility stams and industrials were the outperformers big tech got hit today on nasdaq amazon, apple, microsoft google all closed lower the russell 2000 continues its recent weakness down about .5% is about 8% off recent highs coming up this hour a first on cnbc interview with treasury secretary janet yellen on everything she just got back from g-20 you don't want to miss a moment of it it's coming in a few minutes first up, stephanie is still with us. mike, i'll send it to you. an odd day you saw this drop in

treasury yields, technology underperformed i guess it makes sense utilities and staples were up there but industrials rallied as well. we're still in the range of treasury yields maybe it's not the immediate reflex catalyst but i think we should view this environment as about a two week pause in the s&p 500 most stocks down over that time. seeing erosion in small caps that looks over sold and mega cap growth i think we got this bid in part because the last two fridays have been strong, the last three fridays up at least a third of a percent. who knows if it happens tomorrow but people wouldn't want to be too negative and blind-sided >> are you worried about mega

cap? >> yeah. they've had a run. it's prudent to trim, like an alphabet it's up 50% year to date we know travel is coming back, youtube has been strong. a lot of good news is priced into that. i think that's why you're seeing some people getting back into apple and amazon and even netflix today because those stocks within faang have lagged so there's a miniature rotation. i do not worry about the semiconductor companies, i like them there's a lot they can do in terms of the end markets in terms of 5g and cloud and auto and that thing they have pulled back as well. i like those groups, i like apple, amazon, trim some google and i think you want to be careful on the high flying names within tech. stick to the earners and let's wait for earnings because we could see a knee jerk reaction, and that's when you want to pick up the groups and stocks.

>> where's sentiment at the moment >> it's moderated off of mostly bullish extremes the survey came out today, people saying they're bullish the next six months. i think people are fully invested, that's the case for months but in terms of the direction of movement in the aggressiveness levels i think it's come off just a little bit. you never say people are too negative but right now, i don't think your number one concern is people are overly optimistic a little more cautious. >> stephanie thank you for joining us. >> thank you. janet yellen did just return from the g-20 meeting. where she scored a the global tax, 130 countries signed on but she still has to sell it to congress how she plans to do that and how she plans to deal with hold outs still such as ireland. >> ireland and hungary and estonia are important because it

may be that for the eu to adopt parts of the agreement will return uni anymorety but i am very hopeful that these countries will see it as in their interest to join the global agreement it's really an important step for the global economy and for all countries in it to stop the race to the bottom that we've seen over many decades in corporate tax rates. there will remain differences across the world in terms of the level of corporate taxation, but stopping a competition that was really depriving countries of the ability to tax successful companies, you know, that's a source of income and revenue that we need in order -- all countries need in order to be able to finance important investments in their people and their economies. >> but some people do see this

as a way to fulfill the europeans' dream of taxing u.s. technology companies in particular and that -- it's not necessarily fair because they are the ones who are going to be paying this deal >> well, there are two pillars of this agreement. one, what's called pillar two is an agreement to -- that all countries will set a minimum corporate tax rate that applies to their home base companies wherever they do business. a separate piece of the agreement, so-called pillar one, responds to our concern with the proliferation of digital surface taxes that affected the largest american companies, the most profitable ones, and we've considered them in the united states, those taxes, to be unfair and discriminatory to u.s. firms so the pillar one agreement

essentially says we see it as fair for countries that are important consumers of products that are mainly supplied in other countries, like digital services but not just digital services. >> like apple and facebook >> that's right. but other successful companies as well that are highly profitable that we've agreed to share a portion of the taxing rights with countries where these goods and services are consumed, so we're going to a system, we've agreed to a system, where there will be some reallocation of taxing rights across countries but it will not focus on digital companies alone. it will be all the largest companies wherever they're based that they're highly profitable and won't be a tax on the excess profits that they receive.

importantly, it will result in the elimination of discriminatory digital taxes that's been agreed and it will provide an environment of much greater tax certainty to our companies so that they won't have to worry about a proliferation around the world of discriminatory taxes. >> does amazon get included? because they don't meet that 10% threshold of profit margin. >> it depends on whether they reach the threshold of the profitability, i'm not certain of that. >> i've been talking to ceos about this one thing they say is they're not sure it can come to fruition there's friction getting it passed through congress. you have to potentially change trade stretreaties and get the exceptions from the senate on that there's just a high hurdle to getting this through

: i think we've arrived at a good, strong, global agreement on minimum corporate taxes that 132 countries, including china and every other g-20 country, they have all agreed to put these strong provisions into effect there are some special considerations built into the agreement, but it is a good, strong, solid agreement and china's agreed to be part of it. and we need to domestically reform the way we -- we are a country, we have a global minimum tax or so-called guilty tax that was introduced in 2017. we're proposing, in the american jobs plan, to raise corporate tax rates, raise the guilty rate, the minimum on overseas profits for american firms and also to move it to a

country-by-country basis rather than now we impose this minimum tax on a blended basis so these are relatively modest reforms. they -- i believe they will be -- >> don't they make us less competitive, though? >> they don't make us less competitive because you argue if the u.s. were moving alone but we're not moving alone we're the only country that has any global minimum tax and now countries have agreed -- we'll see what the rate is that is decided next october but they agreed they'd adopt a rate of at least 15%. so the gap between our taxes and those of the rest of the world are going to diminish. so there will be a more level playing field for u.s. companies than there is right now. and we're all agreed -- we've been in a race to the bottom, in

which one country has competed against another to attract business through lower corporate tax rates and in the end nobody can win that kind of competition. and we eliminate globally the ability to raise revenue from successful corporations, which is not good for workers in the united states or the rest of the world. so this is a very worker friendly decision. i am very hopeful it will be embodied in the reconciliation bill that congress is working on now. >> speaking of today's the big day, the child tax credit. >> it is a big day. >> i know you're very proud of this, the goal is to reduce child poverty, help child care expenses do you see it as an economic stimulus as well that should increase spending? >> it should add to spending, but most importantly it provides support for families to be able to take care of the needs of

children we are seeing this year, because of the american rescue plan, a dramatic reduction, 50%, in child poverty and the child tax credit, which will amount to $3,600 a year for children under 6 and 3,000 for children up through age 17 above six, it's really a meaningful -- it's the most important reason we're seeing a reduction in child poverty and we're working very hard at treasury to make sure that these payments will go out every month. that means there's a dependable monthly source of income that families will be able to count on not have to wait until they file tax returns to get a rebate. but today is the first payment, about $15 billion went out today, should show up in the

accounts of the families of about 60 million children. and most working families children will be eligible for these payments they're very, very meaningful. we're working very hard to make sure that everyone eligible will be able to get these payments. anyone who filed a tax return in 2019 or '20, and anybody who wasn't required to file a tax return but did file a return for one of the economic impact payments, they will get them automatically today. and we really want to reach out to those, especially low income families that are eligible but may not be in that group, and so it's important that every family understand that their children are potentially eligible there's a tool on the treasury website that's available for

people to sign up if they're not in the large group that will get it automatically >> what do you say to those, though that wonder if this is just another handout that disincentivizes people to go out and look for a job on top of the enhanced unemployment benefits because that's still an issue, the job openings and people unemployed. >> most children are in families where one or both parents work and i don't really see this as something that will discourage work i think that the ability to pay for child care and, you know, the resources that people need to take care of their children will free them up to be able to go out to work so i don't see that as very significant. you know, the economy is expanding at a very rapid pace people are going back to work. we have suffered a very serious

disruption in our economy. people have changed their lives in extraordinary ways. we're now beginning to see, with the success we've hadin the vaccination program, a very rapid growth in the economy. a lot of people are not able to go back to the old jobs that they had they're forced to look for new jobs realistically it's going to take a while for people to be fitted into new jobs as the economy opens back up. but, you know, we're seeing a very rapid pace of job creation. we're still down net over 6 million jobs since the pandemic. so there are plenty of people left who are available to work the additional unemployment insurance payments will be ending in september. i haven't seen those as a very

significant reason why -- why we have had, you know, so many job openings -- >> you i ddon't think that's a factor >> it's very hard to tell. but i think they will be ending. i think they've been very important helping people survive a very tough period giving them the income they need importantly as we emerge from the pandemic, families have -- because of the payments they've received, they have been able to pay down credit card bills, most families are in good financial shape and ready to support spending in the economy that we need to grow. >> you suggested the economy is in a boom, it's expanding very rapidly. how long do you think that lasts? >> my expectation has been that next year the economy would get back to full employment or something very close to it

and that's still -- that remains my expectation so we are seeing people go back to work, i expect that to continue there's plenty of ability to spend that remains in the pipeline to drive continued growth and, you know, there's still really a lot of people who need to be put back to work so i expect the recovery, certainly, to continue at a good strong pace into next year. >> we are seeing inflation you know i'm going to ask, you always get asked about this, but we got another hot read this week, 5.4% from last year. does it start to concern you >> look, we certainly want to make sure that inflation stays under control over the medium term and we need to be very atentative to what's happening with inflation developments, we are watching them closely my read of what's happening is that inflation is largely

confined to sectors that were -- that are now opening back up we're seeing big increases in this air fare, air fares, hotels and there is bottlenecks and supply chain problems that have particularly affected motor vehicles if you look, for example, at last month's inflation report if you strip out motor vehicles and those sectors that were most affected by the pandemic and are now rapidly opening up, inflation was -- ran at about .2%. which is really consistent longer run with 2% inflation. >> when do you think it'll settle down? >> reporter: -- >> i think we will have several more months of rapid inflation i'm not saying this is a

one-month phenomenon but i think over the meeds medium turn we'll see inflation climb back down to regular levels of course, we have to keep an eye on it. measures of inflation expectations i think still look quite well contained over the medium term. those expectations are actually a driver of price setting behavior so it is important that we monitor it carefully but i believe fundamentally, you know, that this is something that will settle down. >> transitory? >> transitory. >> to use the word of the moment so what do you say to people that wonder why you are pushing to add trillions of dollars more to the economy through the infrastructure and american families plan? i know you're going for structural changes here but adding fuel to the fire of inflation that's already burning. >> the american rescue plan has injected a great deal of spending, the wherewithal for

spending into the economy in order to promote recovery and i think we're seeing it having the desired effect as well as preventing scarring and harm to families and their finances. the new programs that we hope to see enacted spend out money over a ten year period. it's a much more modest annual level of spending. it's not on the same scale as the stimulus and rescue -- the rescue plan. and it's intended to address long-term problems in the u.s. economy that we've ignored for too long a deficit in public spending on infrastructure, which is something that's important for firms to be able to be productive, will have an effect on enhancing growth and productivity we're trying to address climate

change, which is a very serious threat that we all recognize we must address we're investing in our workforce, early childhood education, and community college. investments in child care so that people can participate in the workforce, paid leave. all of these things are long term problems that we have had, and they'll boost labor force participation and boost productivity they're the investments r&d is also part -- >> not a short term shot. >> it's not a short term shock these are long-term investments to make our economy more productive. >> how about housing is there overheating there? >> we have seen an increase in housing prices, due in part to changes in the pandemic and the low interest rate environment we

have i -- you know, the lending that's taking place is, to credit worthy borrowers, so i don't think that we're seeing the same kinds of danger in this that we saw in the runup to the financial crisis in 2008 it's a very different phenomenon but i do worry about affordability and the pressures that higher housing prices will create for families that are first time home buyers or have less income. and a portion of the plans that will be under consideration by congress will be intended to boost affordable housing, the supply of affordable housing. >> despite the expanding economy and the rising inflation, we're talking about treasuries have rallied over the recent weeks and yields are down to the low 130s

how do you interpret that? >> to my mind that's the market expressing its views that inflation does remain under control. and that some of the longer-term forces that were operative in our economy before the pandemic that we associated with secularing the nation, namely a large supply of savings and relatively weak investment demand that although we're in a complex transition period because of the pandemic, long-term market participants haven't gotten about that. and i think do see a world in which interest rates will remain at moderate levels and inflation will remain well under control >> there's also the delta variant, which is -- which is spreading in this country now. how much do you think it threatens the recovery >> i do think it's a risk. i think it's not just a question

of the united states, it's a question of risks around the world. i am very concerned that although advanced countries are making good progress with vaccination, in many parts of the world and especially in low income countries vaccination rates are extremely low. as long as that's true and this virus transmittable across border we have to worry about the variants that could pose future threats. one of the things we discussed at the g-20 in venice is the need to really accelerate global programs of vaccination and we talked about some of the logistical problems that are preventing that and the imf, the w.h.o., the world bank, the world trade organization, formed

task force to try to be more agile in sending vaccines to parts of the world where we see threats. but within the united states we do have areas where vaccination is lower and i think we do have to worry about outbreaks in parts of the country. >> do you think we could see lockdowns again? do you think our economy can handle going through something like that again? >> so we have solid rates of vaccination in many parts of the country. but certainly it's something that could happen in areas where vaccination rates are low. so it really is critically important that we maintain progress on vaccinating more americans. >> so a lot of your views on the economy and on policy are very simpatico with fed chair jay powell will you be recommending to president biden that he continue for a new term >> that's a discussion i'm going

to have with the president. >> it sounds like you guys are aligned. and powell is under a lot of pressure right now when it comes to the inflation story, potentially raising income rates, the economy do you think he's doing a good job? >> i've given you my own personal views on inflation. i have a lot of respect for the federal reserve and it's important for them to make independent judgments about what's appropriate i think that, you know, the fed has done a good job. >> fair. i know you don't want to go there. my final question is about china because we have seen a real crackdown lately from the chinese government on technology companies, d.d. getting pulled from app stores because of a cyber security review a little while after their i.p.o. what do you think china is up to here do you think they're trying to hurt u.s. investors? >> i think we have issues around data privacy and technology and

both sides are looking carefully at this set of issues. >> are you having any discussions with them at a high level? >> i have been in touch with chinese counter parts and we've discussed a range of issues. i expect that will continue. >> treasury secretary janet yellen didn't want to go there too much on china but did on a lot of other key topics, including the global tax deal that she is really brokering and pushing hard on, both now in congress and for some of the other countries holding out, especially in europe, saying it will level the playing field saying that -- i thought it was newsworthy that she said she wasn't sure if amazon would meet the threshold, it doesn't meet the 10% profit margin to be included but everyone wants it included and obviously the big headline is around inflation. she's one of the foremost

economists in the country, saying she expects many more months of rapid inflation but ultimately it'll be transitory she's of the same view as jay powell that most of it is reopening sectors and supply chain bottlenecks that will eventually come back to normal. >> it was awesome. i loved how she said she had a lot of respect for the fed obviously reasons -- >> no hints. she did say the fed was doing sa good job that was more than i was expecting to get she wasn't giving the full endorsement. >> no. we wouldn't have expected her to break that independence to the fed because she has so much respect. >> she knows that well. >> what i do find interesting is the way -- i thought her answer summed it up she's not the only person to come out with this sort of answer where the conclusion is it's transitory. but the first 75% of the answer

on the topic and other comments, like husousing, are to say it's hot. several more months of hot inflation is seven months of that and sometimes it's this self-fulfilling prophesy you get with inflation we had the debate yesterday on the show whether we're peak hot numbers but people claiming don't worry about it. >> right obviously i think the economist math, which she as well as jay powell look at, does get you in that direction that says if you want to pull apart exactly where it's coming from, you're right if you have five or six months of elevated inflation ratings it's going to drag up the average for the year i don't know if that recreates a sustaining mindset and that, all of a sudden, feeds prices. i think the smart way to approach it is assume it's

transitory until it's proven otherwise over the other way around. >> definitely concerned about the high prices we're seeing and the affordability that comes with that, that's something that she wants to address in some of the bills she is looking to put out including the american family plan from the biden administration but did make the important distinction, whenever you talk about housing bubbles you compare it to the financial crisis that you're not seeing the dangerous signs of loans going to risky buyers. in other words did not say it was anything too dangerous in terms of a bubble there that could impact the system but it is something they're watching. and as far as the proposals in the legislation that she is touting on infrastructure and the american family plan she doesn't see that as pouring more stimulus into the hot economy that's been the republicans'

argument right now we don't need this money put into the economy she said this is a ten-year period, a long-term plan that tends to, she says, fix a lot of problems in the u.s. company. >> 3.5 trillion is 5% of what's to be spent the next five years by not touching anything so, you know, it depends whether you want to spin it as a huge, bold plan or a model little boost for some parts of the economy. >> the other thing i'd say as well, i'd loved to have been a fly on the wall for these meetings she's had with counter parts in brussels that gives her and the administration confidence -- maybe confidence is legitimate but we'll see about that -- that the global tax deal will pass you look at hungary and ireland and they have little incentive to go with it. we're waiting for the other 26

members of the 27 in the eu really pressuring them to do something they don't want to do overall. we'll see. they seem very confident and relaxed about it that it is going to get over the line. >> it was a big win to get china on board that was a question whether they would get on board with a multilateral kind of agreement she takes that as a plus and said it's in their best interest to join. ireland, squarely focussed on that as you heard in the beginning. she is sure she can convince them >> overall, great interview sara. >> first in-person, wanted to save it for something big. >> great work. and our thanks to treasury secretary janet yellen for joining us still ahead we'll hear about a portfolio worried about next year we're back in a couple minutes icy hot.

ice works fast. heat makes it last. feel the power of contrast therapy, so you can rise from pain.

and there you have it - wireless on the fastest, most reliable network. wow! of contrast therapy, big deal! we get unlimited for just $30 bucks. i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself.

welcome back lets send it to mike santoli for a closer look at the industrial sector. >> a little bit of a leading indicator perhaps of what might benefit the industrial sector jeffries has a cap x leading indicator which is supposed to go ahead of private nonresidential fixed investment. here you see it just rocketed higher it's not going to mean a move in cap x budgets but you've seen things like surveys of ceos in the business round table and yes, all companies feel there's an up tick in cap x like in early 2010s and 2018 the industrial sector if you look at the forward price earnings multiple of industrials versus the s&p 500 itself. you see it's ramped up to a premium to the overall market

pulled back a little bit but still trading more expensive than it has to the market in the last five or ten years you don't know if this is basically kind of promising all that cap xrevenue down the road, nonetheless, seems like it could be a good contributor to gdp none the less. >> rising valuations and concerns of slowing growth just two opppotential risks to the market we'll be right back.

♪ ♪ when technology is easier to use... ♪ barriers don't stand a chance. ♪ that's why we'll stop at nothing to deliver our technology as-a-service. ♪ ♪ limu emu & doug ♪ oh! are you using liberty mutual's to deliver our technology as-a-service. coverage customizer tool? sorry? well, since you asked. it finds discounts and policy recommendations, so you only pay for what you need.

limu, you're an animal! who's got the bird legs now? only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

welcome back to "closing bell." time for cnbc news update. >> hi, sarah from the news on cnbc. child tax credits averaging more than $400 a month going to millions of parents starting today. estimated to cost $120 billion a year, it's one of america's largest antipoverty programs in decades. president biden said he wants to make the aid permanent but many republicans argue that would discourage work and feed long-term poverty. the death toll now more than 50 from massive flooding in germany and belgium. dozens are still reported missing as hundreds of german

army troops help clear debris from city streets evacuations have now stretched into the netherlands. the head of security at haiti's presidential political analyst -- palace has been taken into custody this as a report indicates some former colombian soldiers in the plot got training from the u.s. military we'll talk to a professor who took part in meetings with the man organizing the assassination itself still ahead on "closing bell," it's game on for netflix as the streaming giant makes a push into the video game business plus the future of banking, a wall street analyst said there's one stock that you can buy now that would be like buying j.p. morgan in 1871 what that is later on "closing bell." inish line what a ride! i invested in invesco qqq

a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq our clients come to us with complicated situations that occur in their lives. for them it's the biggest milestone, the biggest accomplishment, the sale of a business, or an important event for their family. for them, it's the first and only time. we have seen this literally thousands of times, in thousands of iterations. ♪ ♪ i am vince lumia, head of field management at morgan stanley. whether that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way.

every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before, have seen every circumstance and seen every challenge, and have your back when you need it most, is one of the most valuable things a financial advisor could provide to a family. i am vince lumia and we are morgan stanley.

it looks like netflix is making a big play into the gaming space julia has the details for us hi, julia. >> netflix hiring into the new role, vp of game development,

mike vardu netflix has pointed to hit game fortnite as key competition for its service and it's experimented with interactive shows it's also produced stranger things games but with outside developers netflix could produce its own game titles or offer a streaming title like apple subscription, apple arcade the stock falling today on concerns it's down about 1% that games could distract the company or indicate saturation our next guest is getting worried about the prospect of slowing earnings growth. what scktos he thinks could out perform in that kind of environment when closing bell comes right back i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq

- [announcer] dearest smoke shacks, defenders of the dry rub. thank you for giving your all to a 20-pound hunk of brisket. whatever you serve, we'll proudly deliver it. (bike rattling) (pleasant piano music)

retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.

usaa is made for the safe pilots. like mac. who can come to a stop with barely a bobble. with usaa safepilot, when you drive safe... ...you can save up to 30% on your auto insurance. usaa. what you're made of, we're made for. get a quote today. i think we will have several more months of rapid inflation so i'm not saying that this is a one-month phenomenon but i think over the medium term we'll see inflation decline back toward normal levels of course, we have to keep a careful eye on it. >> that was treasury secretary janet yellen weighing on the -- weighing in on the economic recovery and inflation earlier let's bring in david giroux from t rowe price are you concerned about

inflation and surprised to see yields moving low this week? >> i'm not surprised to see yields moving lower. i think i would agree that the intermediate term inflation picture looks better than the near-term inflation picture. >> in terms of outlook for the overall gdp growth rate do you think this is stimulus induced or will it continue to build in the years ahead? >> it's absolutely stimulus induced. you have a natural recovery from the pandemic clearly that would have probably driven gdp growth this year closer 4 to 5 and then you have this strong benefit from stimulus that's going to drive the number 6 to 7 most likely the challenge is as we think about '22 and '23 from a gdp perspective and earnings growth perspective, some of that stimulus induced consumer spending that's helping to drive the economy right now we go

against different comparisons that the spending is kind of spent if you will and dissipates i think we'll have more difficult comparisons as we think about '22 and '23. we think about earnings -- earnings this year are going to be well above the 2019 peak. so we are likely to see in a situation where we end up getting close to $200 ahead of earnings this year it challenges that $200 earnings we have a lot of bank leases, a lot of one-time gains. energy prices well above mid cycle norms in the consumer induced stimulus spending benefits the challenge to what happens to earnings growth in '22 and '23 >> so you expect earnings growth, clearly to slow. you're in the peak camp. so what do you do in that kind of environment in where are you looking and recommending people go >> probably three areas in that kind of slowing growth --

slowing economic growth environment. that's garp stocks i think they look very attractive here, they've been left behind in this value growth challenges we've had. and then you have sort of i think utilities that i talked about in the past we like. now growth stocks have had a very nice run here in the lake effect snow two months i still think growth stocks, especially a three to five yearo five year horizon. >> dave giroux, good to see you. thank you for joining us. >> thank you. up next, a historic investing opportunity. one wall street firm seed a certain ymt ocpaenstk could be the next jp morgan the details when we come back.

- [narrator] dearest noodle houses and hot pot hotshots, thank you for the stir fry that gets us all stirred up.

whatever you can serve, we'll proudly deliver. (lively music) delicia: this is where all our recycling is sorted -- 1.2 million pounds every day, helping to make san francisco the greenest big city in america. but that's not all you'll find here. there are hundreds of good-paying jobs, with most new workers hired from bayview-hunter's point. we don't just work at recology, we own it, creating opportunity and a better planet. now, that's making a difference.

shares of square getting a pop in our after hours trading after jack dorsey said in a tweet that they will focus on bitcoin. they will be focused on building an open source developer platform meanwhile mizzou hoe making a

big call saying buying the stock could be like buying jp morgan back in 1871 kate has the details. >> that is right mizzou telling clients that square is not only a buy, it is like buying j.p. morgan 150 years ago. square's venmo competitor is on the way to becoming the ultimate neo bank and mnt center bank of the future firm estimates total addressable market in the u.s. could grow to 500 million accounts on higher end. that is more than ten times the size of cash apps current user base meanwhile, into it is looks into the hardware buzz launching the only credit card reader for small businesses earlier today back to you. >> thank you so much for that. the thing i thought was amusing about this mizzou call, is i wonder what type of stock people would have thought jp morgan was back in 1871.

was it a boring bank or a forward-thinking overpriced or whatever -- >> this is a very good question. and i think mostly what they would have thought is it is a bank like most others, just bigger and more powerful and could consolidate with better connections with the industrial powers of the world. so it has a good competitive advantage but i could guarantee you nobody was saying this is a disruptor that will be worth a lot more down the road. >> which comes back to its little discussion yesterday with kathy wood where she obviously shot down the idea of buying bank of america. but she did go on to say it is going to be like retail, and these are the big winners and so on and so forth. >> square itself is getting pretty big to be acquired. >> oh, right. >> but in general you think v to think the features get incorporated and what does square have that is fundamentally different in terms itself. >> and bit more data, consumer

side, perhaps not as relevant as the last couple of days and that hasn't derailed sentiment, hasn't made people think the fed is going to tighten and we saw why from janet yellen today. >> when it comes to the macro data, we're getting retail sales tomorrow it doesn't seem as if the backward looking numbers will change the debate which is all about how you want to extrapolate or not what is going on on the inflation side i do think it is worth remembering though that the the atlanta fed gdp now which is that realtime estimate of current quarter gdp is down below 8% from 10% a month ago. it is not always right but it shows one explanation for why treasury yields have done what they've done. >> one other quick comment on the performance today and this week we focus on the big cap tech today but energy soft again today and down over 5%. >> and crude oil has gotten a topee look on the chart so there is nervousness there and yields down has meant the cyclicals get

sold first and picked up later although, as i mentioned earlier, you've had this pattern -- it is three in a row of pretty strong friday rallies in the last few weeks. that is something that people are at least aware of that point. we're now trading in the s&p where we closed day of the jobs number two weeks ago which was very well received. >> he closed well off the low. the nasdaq was down 0.7% s&p 500 somewhere in between that does it for "closing bell." "fast money" is up next. these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... hey, graduation selfie! well done! and voya stays by our side, keeping us on track for retirement... ...giving us confidence in our future... ...and in kevin's. you ready for your first day on the job? i was born ready. go get 'em, kev. well planned. well invested. well protected. voya. be confident to and through retirement. ♪ music ♪ ♪ dream, dream when you're feeling blue ♪

♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

tonight on "fast money," a semi smackdown the chip stocks getting crushed, what does that mean? opportunity for you. we'll break down how our traders with playing the big pull back netflix raising the game what the company just did that got a lot of investors interested and later on a birthday buzz kill, happy birthday, you're 15 years old today but it was hardly a party for investors the headline that took $1.5 billion off the twitter market cap coming um