jpmorgan chase look at the divergence they're not following the interest rates as closely, and another one up here for you. goldman sachs, same kind of thing, holds up better than it does to interest rates >> morgan stanley, too dom, thanks. thanks for watching, everybody. >> we'll see you tomorrow. "closing bell" right now thank you, kelly and tyler welcome to "closing bell." i'm sara eisen, stocks rallying today after the dow posted the worst day of the year, erasing almost all of yesterday's losses. >> let's look at what is driving the action today yields bouncing off recent lows, helping financials a mixed picture on housing, with starts increasing, but building permits hitting an eight-month low. staples are the laggards today philip morris dragging that

sector lower also coming up on the show, jared bernstein at the white house joins us to discuss the rise of the delta variant and its impact and potential impact on economic growth plus we are gearing up for a big hour of earnings netflix, united airlines, interactive interiors and chi chipotle we'll have the ceo minutes after they cross. mine santoli is tracking the market action, and jared bernstein sitting there waiting to discuss the economic impact of rising covid cases. jared, good to see you, but mike, you first. >> an almost perfect round trip right now. we have come back up with today's rallies, just about within four hours, remember, that was down a percent and a half or so, so a lot of the parts of the market were absolutely primed to bounce.

we were talking about it yesterday, the cyclical groups, the small caps, the stuff that's been rolling over for weeks and months we've kind of clipped the 50-days move average in the prior instances, you have grappled around that, so there's nobody saying today's really is necessarily the final word, because we are just back, remember at friday's highs look at the cyclical, more risky sectors of the market, the high beta etf, this is a six-month look, and it's kind of interesting. essentially you're basically a parity at yesterday's close, given up most of the advantage, and then we bounced off of that.

the steadier ride, but right now, still by the skin of its teeth, the cyclical area is still maintaining a bit of an advantage. now, what's happened to valuations definitely become moderated right? the megacap has underperforming -- outperforming the average stock. what's happened to its forward p.e. multiple. it's moderated quite a bit remember, the regular s&p is at 21 sometimes forward earnings. here we are with the equal weig weighted but on a relative basis to the broader s&p, it's actually much closer to the bottom end so if you think that matters, if it maybe has created in bargains within the market, if not in the aggregate, that could be something that's at work here today, too, guys >> mike, i guess we have seen quite a few of thinks many

pullbacks and bounces, is there, though, any sign that they're coming more frequently, as well get later into the year and summer >> well, it has seemed as if we've had more shakeouts yes, i think the short answer is possibly yes only just back in june we had one of these wobbles before that, it's become roughly once a month, but i do think we've gotten less altitude with each run to a new high, roughly speaking, than we did in the prior one. it's one where the gains are harder fought, one that's more selective, not as many stocks joining the indexes. that could mean we're digesting the new games, you're into a tougher seasonal part of the year the bottom line is financial conditions have not tightened up much, and that's seems to have served as at least psychological and real-world support for equity. >> every sector higher except for staples. mike, thank you. today marks six months of

president biden's administration, the market and the economy has seen solid progress during this time -- the unemployment rate down to 5.9% from 6.3%, but the outlook is growing uncertain as the highly contagious delta variant has sparked resurgence across all 50 u.s. states. joining us in a first on cnbc interview, jared bernstein great to have you back nice to see you. >> great to be with you. >> clearly a lot of progress on the economy. how much, though, does this delta variant threaten some of that work? >> the biden boom is in flow we are getting vaccinations in arms, and getting checks in pockets, helping families to get to the other side of the crisis. it's meant we have a solid structure in place to face

whatever comes at us now thanks to the rescue plan, our cities, our towns, our counties are much better armed to fight back against whatever is going on in the virus, and getting the vaccine out there has been such a critical measure in terms of standing up this economy that infrastructure is in place, it will remain in place, in fact we're even making some progress against vaccinations among those who haven't yet had them that's a good sign as well >> but there is this sense, jared, that growth has peaked. you see that all over the market the ten-year yield has declined dramatically a lot of the cyclical stocks have fallen 10%, 20% from their highs. so what does that tell you about where growth is headed from here >> well, i think that the consensus across the board is

that we are looking at solidly above trend growth for many quarters to come again, that wouldn't have happened withoutthe intervention of the american rescue plan. yes, there was a recovery out there somewhere but getting that infrastructure in place, an infrastructure that didn't exist six months ago has been instrumented t. for the gdp in this quarter that we recently closed out, q2 now, you think gdp trend growth is around two, that's 4x if you look at, they used to think growth would be 3.4% in '21. now they think more recently it's north of 11%. if you look at the impact of what the president cares most about, which is jobs, income,

wages, paychecks, there's where you see the real progress. that's a report with rising wages. i think strong productivity coming at the behest of the built back better and the infrastructure plans. >> i think it's probably fair to say the recovery would not have happened without significant support on the monetary side as well >> yes. >> for you fearful are you of thing being rolled over, being choked off, when the time arrives? >> well, we typically don't comment on monetary policy, but i think you raise an important point. here we tend to talk about fiscal policy, because that's what we have our fingers on. you know, the president told us, even when i worked for him during the campaign, he said you this a dual crisis, a health crisis and economic crisis they are inseparable by tackling the health crisis not only did he set up the

economic recovery, but he put in place the infrastructure that will last not just for months, but for years. our cities have the weaponry that they need now to deal with what's coming at us. i think that's really important. in temples of ongoing support from fiscal and monetary policy, there's where especially again from the fiscal side, building back better and the infrastructure plans come in not only is this important in terms of helping growth, but it's important in terms of building the economy supply side it's product, labor supply, a path into the job market for child and elder care folks that will help not just the grow the economy, but increase capacity in the longer term. >> back to the health crisis, jared, as you say, the economy outlook is linked very much with what happens on the trajectory we have seen this resurgence just today a white house official testing positive, being

fully vaccinated the breakthrough cases are on the rise what is the policy response to the new developments are you expecting something? so far what we have seen it a lot of finger pointing >> it's a fair question. the policy response is a very rigorous one we are doing everything we can, our covid team, to make sure that people know they can get this vaccine, that it's safe, it's accessible. we're trying to have messengers who are resident to people at the state and local level help us spread this message there is no sitting on hands around here when it you know, the president has continuously leaned into this that message. the rescue plan, it is not behind us, it is in the field

working, setting the stage for precisely this kind of distribution, other covid team is not looking backwards and saying we're done. far from it. they're leading into this. >> if we do -- hopefully it won't happen, but hospitalizations and deaths pick up is that responsibility on them i don't think it's my purview to think about assigning that look, american simply isn't going to turn the back back to march 2020 i'm not just talking about roads

and bridge, but a set of policies that work at the national, at the state, at the local level to distribute this safe and effective vaccine to every one who can use it so that's what we're doing. we're keeping our head down, trying to make sure that the biden rover, the boom continues to persist we know we have the infrastructure, in child and elder care, education, that will help generate further growth. >> jared, thanks so much for joining us good to see you. >> my pleasure, wilf. shares of philip morris

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♪ xfinity is here to inspire your biggest dreams ♪ we have some breaking news on colony capital founder top barrick. >> allegations that he secretly

worked to influence the trump administration on behalf of the united arab emirates he capitalized on the friendship of former president trump to compromise the goals of a foreign government the doj said barrikc and hits associates were in contact with top uae officials, and never notified the attorney general. at one point the doj said that barrick even told the uae so compile a wish list. he's also charged with making false statements to law enforcement in june of 20 barics is slated to be arraigned this afternoon in the central district of california guys >> wow ylan, huge we will look forward to more updates on that.

>> it's still came in short of analyst estimates. philip morris's ceo joins us in a first on cnbc interview. thanks for joining us. good afternoon. >> happy to be here. >> what do you think explains this slight miss is it linked to reopening in any way, or not? >> no. i think it might be, you know, some expectations that we're going to beat estimates, stronger than we did, but we still believe we can move a strong second quarter, for 18% earnings per share growth, despite the fact that the -- the

software verse the same pertain last year. we see, you know carnelled large pockets of the recovery. still all factors for consideration. and we initially sorted out at the beginning of the year. most important for you is tremendous progress we are making with products, those account for almost 30% of our net revenue now. we have reached a very important milestone of 20 million users, and that's makes us happy. as we've heard, we have also started -- you know, a couple of those acquisitions, which i guess everyone has heard we are working on, as we speak. >> those -- have probably

garnered way mori more criticis. were you surprised by the extent of the uproar? >> i didn't expect that sort of criticism, you know, from some circles in the uk. i mean, frankly speaking, we believe our strategy of going beyond the -- first addressing the property,d -- promoting, and second, building on capabilities here and creating further opportunities for growth from pmi is something which -- people will not subscribe to. you know, there are critics, and i'm very proud that philip more is is -- but frankly nobody will stop us in our transformation to leave cigarettes behind.

>> i wonder if you think of philip morris as a reopening play, whether they're smoking more >> we're seeing this more in the europe can countries, and in asia and southeast asia, the situation unfortunately are still more challenging, but yes, there is this reopening as you remember they're the project, and this -- we are much more impacted by this, when people can use the probably what's mostable is we are not

losing the momentum. i wonder why people suv -- for as you just put it to you, leave cigarettes behind. quite possibly you just gave us the number of 20 million using to people who -- i guess that explains some of the criticism not so much the move itself. clearly there's many other product outs there that do i think that's the nuance that people are suggesting to you

>> there's 20 million -- otherwise would continue smoking. to going, using them, et cetera, and for which -- definite definitely start -- targeting them this is well established today including for the administration in the u.s -- than continues smoking, and better is significant. so, you know, we can stand at least to significant ly so i don't think anything wrong in trying to address the approximate.

why some people are denies us the right to do so they would like to see philip morris continues to sell cigarettes, but i believe what we're doing is absolutely right. >> thank you very much for joining us we pressure it we are lookingal session highs right now. the dow is up 642 points it's now positive for the week, eraising all of things losses. it's zooming up -- and the russell 2000, biggest come back of all still to come. we'll go live to texas, where the "new shepard" capsule took flight this morning what this means for stocks in

the space race ten-year yields are higher today, reversing the earlier trend. back over that 120 level 121 on the ten year. 121 on the ten year. we'll be right back. ♪ ♪ experience, 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. need better sleep? try nature's bounty sleep 3 a unique tri layer supplement, that calms you helps you fall a sleep faste and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty you packed a record 1.1 trillion transistors into this chip i invested in vesco qqq

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stevele upgrading simon group, a form noting that there are concerns about potential new restrictions it feelings as though tenants should be able -- stock's up almost 7% they're teaming up, allowing

unitedhealthcare members access to a peloton membership, or four-month waiver for free this is peloton's first relationship with a big health plan both stocks are up so they reach out to wins. >> it is time for rahel solomon. here's what's happening at this hour. the free britney act being introduced into the house. it . u.s. climate envoy john kerry calling for china to join the u.s. before the climate summit this fall.

>> obviously it's not a mystery that china and the u.s. have many differences, but on climate cooperation, it is the only way to break free from the world's current mutual suicide packet. >> in alabama heavy rains continue to flood parts of the state. the national weather service says parts of alabama got nearly 8 inches of rain over the last few days you are now up to day. sara, back to you. rahel, thank you. blue origin founder jeff bezos blasting off to space this morning. we were all glued to it. morgan brennan was there, joining us can more, on what this flight means for the space race

>> they flew past the edge of space that also included wally funk and pays passenger oliver daemon, who is now the younger that piece of the puzzle is particularly in focused as this launched the commercial service for suborbital space i did ask bezos -- or bezos told me this is still just a, quote, tiny step of what blue origin is going to do, as it does look to build a road to space. inch i'm going to split my time between this and the bezos earth fund. >> reporter: reusable rockets are a part of blue origin's

strategy to get there, in terms of blue origin and that -- but also an orb at that time rocket, but blue origin is also working on lunar landers, space habitats it's a big ambitious goal. but he disclosed today nearly $1 million so far in ticket sales from paying passengers, looking to climb aboard. they have two more flights set before the year is out guys, just to take a look at the space docks, as we start to see more of thog names -- you see virgin galactic down massar is can be astrospace, which is a small company, is also down a

bit, but today a major milestone for this emerging new sector, that is really still in early innings. >> does that put them ahead of ticket sales for virgin? where are they at? >> reporter: so virgin has a backlog all right of 600 people. they've said they'll reopen ticket sales after the next test flight but booking they tickets and taking on passengers after the end of that all i think speak speaks to the demand. >> morton, thank you so much still to come we are gearing

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23 minutes left before the close. we're up about 600, s&p 500 up about 1.75%, more than wiping

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sgloomp stocks rebounding in a big way today. the worst day for the dow of the year yesterday they're all up more than 1.5%, at least the russell 2000 up 3.5% joining us now is david zerbis

we wanted to talk to you after yesterday, david you have been bullish on stocks. is sounds like you still are, that have spooked investors lately >> i think that's a fair characterization i think that's there positions misalignments we had one of the worst quarters for big -- so it was a big positions move i think a lot of people have wanted to question that inflation scenario, and it will get tested when you talk about that a little more, i think what we're seeing in some of the spaces is really starting to give people -- that is very much

transitory and you look at just yields go lower, and the market doesn't know how to rye act to it sometimes. so you're thinking yields stay lower, and ultimately that's good for equities? they responded a bit today, of course >> lower, but i don't necessarily have a strong view we don't -- my call has been purely an equity call, but i'm okay if rates tend to dip back i think you have a really skewed position, a 90-day basis sell-off in the first quarter? and i think people got we're going back to the 70s, and they goat overzealous.

over the summer months, what is more likely? higher or lower? >> higher, with what level of conviction i've probably upgraded slightly my view. we have done that pretty quickly in 6 1/2 months. so i this i the odds are very high we end up somewhere between 20 and 25, closer to 25. i would even add some mask to the distribution i really wouldn't have done that at the beginning of the year

i think they will do it, the covid stories pick up against, if the masks come back, i think they'll get off the hook with this inflation story i'm kind of in this camp that we don't need to hire back as many people >> good to see you thanks so much for joining us. >> we've been waiting for a fed taper to taper his long hair again. ♪ market zone is next. someone once told me, that i should get used to people staring. so i did. it's okay, you can stare.

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we're now in the "closing bell" market zone, commercial-free coverage of the action going into the close. mike santoli is here to break down the crucial moments of the trading today. and we have lindsey bell with us as well. major averages are rebounding after a big sell off neil goodman was on halftime earlier with his take. >> bears manners don't telephonize. i have a different view of -- but the most important thing to say about inflation, inflation is a friend of common stocks, because they incorporate into the selling prices, which lifts the nominal level of earnings.

certainly sectors in the market have been euphoric, but i think the overall market is not euphoric, but i think the market outlook is okay. inch mike, i guess as we look at it now, it's not just positive on the week. it's erased all of that pullback yet. is this done >> you can't say for sure. this market tends to rush to the next test. it doesn't wait around and seen if people will emerge. everyone knew any bounce would be questioned or suspect, if it didn't fill the gap by yesterday's drop now we've filled it, but is it a bounce or not?

maybe things are shaking out. >> i think the other question is, has the economic outlook shifted with the surge and the effect that would have on confidence the fact that some of the stimulus is wearing off. lindsey, what are you thinking >> i think it was just and investors used it as a reason to sell the news. i think the point you're making is very important. you know we're entering earnings season and so far, so good. over 86% of companies are beating on the top line. it's still early in the season,

but the beat rates are big i think we'll hear about what the delta variants is doing to businesses or what they expect it will certainly by very important to listen to the conference calls i don't think it's time to change the growth gentleman ject torrie yet if that continues, that would be a positive >> just to add to that, you can say, yes, we've now recognized, maybe it will be bumpy, or a bit of a hiccup, but we also had those parts of the markets most corrected to those themes correct pretty heavily and the banks. i think there's two way to say look at it. >> airlines up, one of the best performing subsectors. apple is one of the best

performs stocks. josh lipton has the details. >> the iphone maker is enjoying a day well in the green. on pace for its eighth positive week in a row, up about 10% so far this year, checked in with gene muenster for his quick take he says when they report earnings results next week, we'll -- and given muenster, sell, the new reality of hybrid workers. >> what about technologies and the way these stocks have outperformed, with questions about growth >> yeah, i think the technology sector will be one to watch. believe it or watch, they didn't react from a price perspective

it would one of the best earnings growth stories within the s&p 500, so it was a very good quarter i think you'll see more of the same what you're seeing with apple, is we're going into the earnings season with reduced expectations, or at least steady expectations they've remained pretty subsighed maybe the stock price of apple has pricing that in, too, but you're seeing the price increase leading to higher p.e. stocks, and now it's time for earnings to catch up. >> mike, just to follow up on that i guess what the share prices have done and will do will be the key focus for us the bar is high for share prices to perform off the back of the numbers. >> i think that's true

a lot got discounted the last week or so we've had these quarters, where, even though everyone knows they'll have excellent numbers sometimes it comes as a bit of -- you still get the sticker shot wow, it's a reminder that facebook and alpha boat are still ridiculously -- it's a forward free cash flow used. so it's just sort of a general big-picture arbitrage that supports the story >> and diana >> yeah, names lie le noor are on homes that have already been

sold that says builters are pushing on the breaks a little mortgage applications to buy, down 24% year over year. back to the guys >> they have responded to being stretched on the down side does it say that they're kind of calling a time-out and being slightly more disciplined? you know, this group can remain fairly solid we'll see.

mortgage rates. after the belle, just a few moments. jewel yay has a preview. the question for netflix is when and how fast, the number to watch is 1 million they hope it will guide the edition in the third quarter earning are expected to nearly double in a 19% increase in revenue, but any guidance will be much more important.

julia, thank you now with just under two minutes -- over two minutes, excuse me, left of the session, mike that was friday's close, so we're basically right there, almost tick for tick yesterday was kind of almost washout numbers. you see the almost exact reverse to the up side so that's certainly a net positive major you have more stocks on the nasdaqs, and obviously the overall index is off its highs

then we're about five points, usually that creates a decent spike so definitely not relaxed, but it definitely is better than yesterday, so pretty much in tune one minute into the close, we're off session highs but session highs was about 100 point higher what honeywell, home depot, industrial -- every sector is higher

[ bell ringing ] on the russell, against, off session highs, but still a strong day for the market after a dismal day for the bulls yesterday. welcome to "closing bell." offsession highs, but still up 550 points.

brian niccol will join us to break down his company's results. plus the open winner colin morikawa is here first up, though, on the markets, still with us what does it tell you? >> it tells us there's some conditioning in there. and it's always paid -- we'll see if that continues. i think a lot of commentary is impressive, constructive bounce. and let the way higher, but all we did is getting back almost all of monday's gains.

seasonally rough period, you say the sell-off is, and tell us whether you've changed any of your thinking on the outlook any of these pullbacks show what you have is a market that has, you know, has tremendous resilience in the ratio, in terms of the market of stocks see upgrades verse downgrades. the results season coming through right now shows on the industrial side that -- in fact one of the results of this season is on the industrial

sector, auto books are very strong, and expansion is the key. a lot of investors is focusing on the rise of prices around the world. but the -- >> excuse me, just going to jump in and get to these netflix numbers. we're skeeing a 5% slide, which is guidance for the quarter. revenue 7.34 billion, eps a miss 297, the forecast was for 318. the paid memberships for the quarter just passed, coming in at 209.2 million, frakesally ahead of the forecast so slightly there if we look at the guide for q3, the paid net ads there is for 3.5 global streaming paid net

additions. the consensus, expectation was more like 5.5 million, so that's a slight disappointment. mike santoli, year-on-year growth there slowing down, and it's a big factor railroad last time -- for because of the pandemic affected. the big question was, in the absence of a lot of new content, really back end loaded for this years, would they immediate a sub-growth expectations. did not happen also historically, the second quarter reaction to netflix earnings has been pretty consist presidentially negative, because they have come up short, it's a tough seasonal quarter for them. >> the shareholder letter, including where he this stand on competition, where they include even the new warner media company, all of this

consolidation hasn't affected their growth much at all julia has more color on these numbers. >> sara, what i would say is i think the stock moving lower is definitely a reflection. this was a quarter where, yes, they came in with 1.5 million subs, but the guidance for q3, this is a company where investors wanted to see accelerating growth, the company said they had expected much stronger content in the second half of the year, and that would drive guidance i do think that's what's putting pressure in on the stock i want to hone in on the commentary about games they say here in the letter to shareholders, we're in the early stages of further expanding into games. they mentioned -- and the stranger things gains. gaming is another content category for us, similar to our expansion into regional films,

animation and unscripted tv. games will be included at no additional cost, similar to films and series initially we'll be focused on games for mobile devices we're excited as ever about our offerings, and we expect a long runway of increasing investment and growth across existing categories, but we think the time is right to learn more about how our members value games. this is really key here. i reported last week about how they made this big hire in the game space, but the fact they are now explicitly saying they will offer games, it will be part of the same subscription fee, this shows that netflix understands it need to add k categories the other thing is the commentary about the merger of warner media.

they just talk about the consolidation in general they say we don't believe this has affected our growth much, if at all we are continues evaluating opportunities. we don't view any assets as must have, and we haven't found any large-scale once yet civilitily compelling to act upon this says to me, guys, this will continue to invest in content internally, build out thing in segments, but not looking for any big deals right now. >> ed lee, we want to bring you in, as the stock comes back a bit. the forecast seems to be key

>> i think they're -- they are seeing the effects of that now, so while everyone was second home last year, bought into netflix subscriptions probably earlier than otherwise so i think that's what's dampening the new subscriber growth. simply spending more a content isn't going to get them to that number this is stuff they're going to -- also, they talked about games being primarily on mobile first. that makes sense, but something like 80% of netflix happens on television sets, not on phones,

or even on tablets i think that will be a huge hurdle for them in this new endeavor >> but mike, they are still growing toward that number they're not falling. most importantly they have grown into this valuation. >> yeah, and, you know, there's half a million beat on the past quarter, maybe a 2 million short-day-old fall, so essentially on a net basis we're talking about a million and a half subs, and that's not necessarily a deal breaker so, yes, it's maturing clearly growth will have to slow at scale, but it hasn't changed the overall story of growth and market share maintenance, if not gains from here. >> what is different about this time is the setup into earnings. it's basically done nothing for the last year. what are investors going to grasp here

is there enough growth they're talking about with gaining to excite people? >> it's not clear that that in itself would i think the idea that the business is in the business of filling out the offering. >> i spent a lot of time -- >> it's too hot to handle. you should giver it a go. >> easy to switch off your mind for a few hours. headley, i want to go to the slate and what is coming out and how they're feeling sort of the effects of the pandemic at the moment they do say let to a lighter slate because of products delays, but they're

confident that will come back is that an important factor >> it is lice "the wipitwitcher" sort of popcorn series, sort of fun to watch. they're going to be heavy on the back end of this expectations will actually go up higher as a result of that i think it will still be if you have for them to beat the expectations, but that's sort of where you'll see the new subscribers coming back. i think that is they need that kind of content. their game is different, more quality fewer shows, but bigger impact

>> given that they haven't been able to get the new shows out sooner let's get to chipotle numbers. kate >> the stock is moving higher on the strong second quarter results. eps a beat at $7.46. revenues right in line, $1.89 billion for the quarter. same-store sales also a beat digital sales, of course, a very important metric here, up 10.5%. operating margins, 24.5%, the highest level the company says since q3, thanks to price hikes and fewer promotions in the quarter. noting that if current trends

continue, comping log up low to milled double-digit range. back over to you kate rogers, thank so much for that coming up, we'll break down those numbers with the ceo brian nic n niccol. >> the fact they grew margins, and higher food costs, they're able to pass it on in terms of higher prices. i think that's pretty rea thursday when it comes to chi chipotle, which has done well. >> it's been -- i mean, it's always been super-expensive, but it just doesn't matter the other thing also, for as well as the stock has done, of course it's very big for a restaurant company, but when you have a great franchise, it's not surprising the stock is here. >> 48% of sales digital,

fractionally down, telly from the quarter before i wonder if that's a reopening phase, and to your point, helping that margin story. pivoting back, are you encouraged by the reaction to chi chipotle's earnings? i know you were hoping for an earnings sees. you dethe reaction of the stock so they're a bit

conservative in the space, but the market and investors are reacting positive ly by the fact that they're compacting into gaming, expanding, and really thinking about the future of the company. overall, i think it was good records from both companies. >> and just as you say that, netflix comes back, just briefly went positive. we'll see where it settles a final word to you, as we get these results out of your honors what you have seen is pricing power. i think you'll see a lot of

surprises in terms of the margin outlook. i think that overall, i think hardworking companies with strong franchises, strong pricing power, those are some names we're investing in right now. >> well will watch that trend. thank you all for joining us when we come back on "closing bell," chipotle's ceo, brian niccol will be here. later, the open winner, colin morikawa, honis second victory and his quest for olympic gold we're back in two minutes. at the lexus golden opportunity sales event. lease the 2021 is 300 for $379 a month for 36 months. experience amazing.

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niccol thank you for joining us great to be here. >> it must be great for you. this was a great quarter, in terms of comp store sales. margins also better than expected talk about what you're seeing right now? >> well, we are seeing obviously our customers return to our business, both in the dining room and continues to stay with us with our digital system our operators are doing a phenomenal job. we've been unwavering in good food, and investing in our people >> on that note, there was some concern or focus on the margin story, because you have been boosting wages and how i'm going to expect even further price increases, as the commodity inflation is still

very much present. >> yeah, look, we're really happy we're able to invest in the wages for all our employees. and you're right, we've had to move pricing in the delivery channel and on our menu. i think we talked about this quite a bit. we're very fortunate to have such a strong value proposition, and in the event we need to do it, we can do it and see little resistance we're keeping a close eye on what's happening with commodities and, you know, we prefer not to have to pull the pricing lever, but if we need to, we know we have that available to us. in the event we need to take that action. >> total sales dropped a tiny bit this quarter is that because of reopening and do you think it's, therefore, going to stay at that level rather than grow as a

percentage of the total as hopefully reopening continues to pick up pace >> yeah, i fully expect the percentage to probably go down a bit as the dining rooms come back what i keep an eye on is the absolute dollars with our digital business that continues to grow our rewards program is now over 23 million people. i think we'll grow in absolute dollars, but as our dining room come back, you know, we're seeing more occasions happen in the restaurant, the percentages will probably change a bit >> to that point, brian, what are traffic levels at right now, relative to what they were pre-pandemic >> we're kind of getting back to where you were as you think about it, think of this we're about 70% back to where we were, dining room levels, and we've held on to about 80% of the gains that we made in our digital business

we're not all the way back, but what i'm optimistic about is we're starting to see people show up for the lunch occasion, which clearly indicates that people are out and about as we're seeing this also show up in urban settings, as well as suburban settings. we're making great progress. >> i now during the pandemic you pulled guidance due to uncertainty. it's back now for a quarter ahead, which is good to see. i wonder if you got concerned over the last week or so you were hasty to have that confidence, or are you quite relaxed about that >> you know, it's hard to be relaxed about covid. obviously we hope everybody does the right thing, whether that's getting vaccinated or practices the right mitigation strategies for themselves we want nothing but safety for our employees and our customers, but, look, the trends we're

seeing in our business continue to give us confidence that the low to mid double digits is the right thing to guide and give people that forward look on the business obviously we'll deal with anything headwinds accordingly, and do the right thing for our employees and customers, of course >> are you seeing any impact so far? alabama, mississippi, are you seeing any hesitation from consumers around that? >> you know, we are not seeing consumers behavior change, as of right now. obviously the news continues to talk about where the severity of the delta variant is going, but as of now we're not seeing an impact on behavior, at least when it comes to eating out or food to go. >> thanks for joining us much appreciated >> great to be here. thanks, guys. >> brian niccol from chipotle.

up next, we'll get more reaction from netflix's disappointing outlook, and whether that will continue to hurt the stock it dipped about 4% initially colin morikawa joining tiger woods, so far, to win the open and the pga championship before the age of 25. he'll join us to discuss that historic win later on "closing bell." 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.

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netflix shares missing a bit. let's get to julia boorstin who has been digging through the numbers. >> well, wilf, they added slight already more than expected, but there are signs of sass race -- 30,000 subscribers in that region of u.s. and canada. saying that this is similar to what happened in the second quarter of 2019, afternoon which

growth accelerated guidance was 2 million short of analyst expectations. >> julia, thanks so much >> you have a buy rating on the stock, and then alex sherman is here as well what's your take on these numbers? you've been. >> yeah, good afternoon. there's no question, where, you know, soft, and doing a lot of the heavy lift, we would have liked to have seen much more dispersion julia was making a point about saturation we couldn't agree more

but on the other hand, i think there's positive d. the pricing power is still down, and also the fact that both engagement and retention are still above prepandemic levels while we think there's no question, is taking ahold, there's netflix we think is doing its and so we're not, by any means calling a new normal here we still things start to normalize even more. and thence of that name. as far as video games, that's one area, some type of an opportunity long term. >> alex, what stood out for you?

>> the key figure, i think was the third quarter guidance figure of 3.5 million new net adds julia mentioned it at the end there, analysts were looking to about 5 to 5.5 million in the third quarter. the whole narrative around netflix is there's been a lot of chopiness because of the covid, production shutdowns, but a lot of that kind of prize content is coming back in the third quarter. these are big-name netflix originals coming on into service in the third quarter, so the thought was, as the content comes back to the service, so will the eyeballs. so that 3.5 million net add number coming in so light, is a bit worrisome, i think in terms of the broader narrative that people will surgeon to the netflix originals. we'll have to see in the third

quarter. it may be netflix sandbagged us a bit and it could end up closer to that 5.5 million mark. >> they referenced the warner media company for you. and it all hasn't impacted much. >> i was just wondering how you were interpreting that so the idea that they would come out and say, look, nothing appeals to us, that's very much in line with the dna of the company. they're so focused on just deliver original content to their point about all these over deal since around, i agree, it's

more the sort of the did is any plus push, the invention of streaming in gen, as all of that plays out, you know, sort of becomes part of the culture, we'll have to see the long-term effect of that as opposed to 63% still linear viewing. you would say, okay, all of these come to fruition, that's good news bay more and more people will cansed cable >> thank you both very much. united results also just out. phil lebeau has the numbers. >> take a look at shares, reporting a loss for the second quarter.

a lot of that's revenue a bit better than expected down 11.3%, a bit better than the company's guidance no surprise there why is that important? look at what the capacity will be in the third quarter. it will be down just 26% they're clearly adding more seats in more plains planes the most important headline, q3 and q4, expected to most a pretax profit. we will talk with ceo scott

kirby exclusively tomorrow morning. more importantly about q3 and q4 what happens with the delta variant as it continues to pop up are they noticing any impact lots of questions. we'll be talking with him on "squawk box" tomorrow morning. mike san totali is taking a closer look at netflix. >> you mentioned earlier the stock his sideways take a look at this going back to the end of 2012, the highlight that there have been multiple periods where the stock essentially did nothing for up to two years

so you've seen this a few times, before it goes up to the next threshold. it has often just gone sideways. really unusual, "house of cards" debuted in 2013. relative to any any, the valuation mass mott moderated from towering levels both because the market was giving it credit for becoming a streaming company, but also because cash flow collapsed with the pandemic and obviously the effect on its parts. now, you see it came almost to basically converge they both kind of receded from there, you see here, ned flicks

has had its premium compressed netflix is still talking about breaking even on a free cash flow basis >> going back to your first shot, it could actually be great to see that share price shot mark down whether the big show, to see if there was a lag effect. >> three months from today, we'll do that. i'm sure "too hot to handle" will be the one that puts it over. >> i'm sure. bitcoin falling below $30,000 for the first time in nearly a month don't miss the interview with j&j's cfo, immediately following atomny tree th cpa'sernc crossing

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time for a cnbc news update with shepard smith. >> hi, wilf. the trump ally tom barrack claims he's not guilty a spokesman saying that he haus

voluntarily made himself available for investigators from the outset of the probe. authorities arrested him today on charges he illegally lobbied the former president on behalf of the united arab emirates. he's expected to appear in court later this afternoon. a fourth person linked to the oath keepers pleading guilty today. the two counts related to his participation in the capitol insurrection caleb barry pleading guilty to conspiracy and obstructing an official proceeding. he is the 19th person to plead guilty on federal riot-related charges. as many as 200 americans have reported symptoms reportedly associated with the reported havana symptoms about half of the cases involve cia operatives or their regtively.

tonight our series "crime in america" a group of people in atlanta who wants to create its own police force separate from the city seeking solutions on the news right after jim cramer sara, back to you. shep, we'll see you then. bitcoin continues to get beaten down. kate rooney, was there in cat catalyst. >> 30,000 had been seen as a key support level for bitcoin. it broke below that overnight. now analysts are analyzing 22,000 to 24 thousands. >> it's wiped out most of its gains year to day, down about 50% from its high. still positive from a year ago in the last day or so, the entire crypto market cap has dropped by about $89 billion analysts tell me it's not any

crypto headlines specifically driving this it's still trading -- it'ses a big lockup for grayscale's bitcoin trust ending this week, that's the publicly traded bitcoin proxy. the markets are just quieter in general. volume is a lot lower. one analyst described it to me as a boring market right now >> kate, thanks so much. after the break, colin morikawa scoring a historic win other the weekend. "closing bell" is back in a couple the rule in business used to be, "location, location, location." now it's, "network, network, network." so you need a network that's built right. verizon business unlimited starts with america's most reliable network.

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our next guest made history this past sunday at the age of 24, colin morikawa bake only the second person to win both, putting him on par with tiger woods colin morikawa joins us now. it is great to see you warms congratulations to you >> thank you so much i appreciate that. it's one of the best feelings you can have, winning two ma

majors, and my first start at the open very special. thanks for having me. >> my first question were you surprised a how flawlessly you executed your first links course appearance, new includes as well >> you know, i set lofty goals for myself i think a lot of successful people do that even though you've never had experience over there, i went over a week earlier, played the scottish open, and did nigh due diligence, trying to figure out what i needed to do. i knew we could give ourself a chance on sunday >> i wonder which felt sweeter,

the pga at home orb the open abroad in front of the 32,000 huge golf fans >> i don't have kids, but i think that's like comparing and saying which one is your favorite child you know, they're both very memorable for very different reasons, a major is a major. to be called a major champion,, and now champion golfer of the year, it has a sweet ring to it. seeing the fans is the best. those are some of the best moments for myself, because the crowd was so enthusiastic about it it's hard to compare them. i'll take as many as i can get. >> i wanted to ask about the olympics, colin. any typical weekend at a pga event, any position you take matters when it comes to the

price money. from a strategic perspective, how do you. >> we don't play for the money >> being in the olympics, you know, having golf in the olympics is such a special honor. it only happens every four years. it's the hardest tournament to ever qualify for for your country. it brings together so many other countries. it helps grow the game, but you want that medal. that runs a long way and will run with you forever no one can take away me being a olympian, but you being an olympian with a gold medal i think can change people's lives. >> switching back to the tour, i wonder whether you have a supporters of the player impact program?

do you fear other title sponsoring will be annoyed about it >> you know, you think when you look at who moves the needle, a guy like tiger woods, even though he's injured, he still moves the needle there needs to be some sense of thanks for the people who do he's grown the sport more than anyone has i think it's grown the game of golf it's going to grow the game and i think how the -- we're not as big of a sport like soccer look at what happened at the euros. >> don't remind me. >> i'm sorry i was there on sunday watching, too.

so trust me, i'm sorry to about ink that up. it's the best you can do will it change over the next few years, and see some changes, i'm sure that's what things will do concerns around covid-19 in the olympics and in the low vaccination rates in japan, some athletes even testing positive i know you've dealt with this on the pga tours pre-vaccine and post-vaccine how safe do you feel going into the olympics and what precautions are you taking >> i have not felt any safer once i step into the bubble of the pga tour when i'm on a golf course the pga tour has done a wonderful job. the olympics, they've all

reached out to tours around the world for golf especially and made sure we're in the safest bubble possible. we're going to do everything testingwise at the golf course, being safe from everyone else, and it's awful we're not going to have fans, we're not going to have that experience that all the olympians talk about for the rest of their life, but like i said, you're still going to be an olympian. it's something that for every sport it only comes up once every four years when you have a tournament like that, the memories that you can build personally are just second to none. >> we are looking forward to watching collin, thank you, and congrats again on a big win collin morikawa. netflix and chipotle both higher after results of turnaround for netflix what's driving those moves, straight ahead

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we'll see if the market leading up to this week kind of sapped the energy going forward or if it refreshed it. that's the other side of that argument >> we'll keep running more earnings netflix and chipotle coming up on "fast money." that does it for "closing bell." 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,

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live to the nasdaq markets overlooking new york city's times square this is "fast money. guy dhami, dan nathan and tim seymour -- he's there. action shows netflix, chipotle and united airlines. plus a crypto collapse, bitcoin breaking below 30,000. it is now on the brink of giving up all of its gains this year. we'll tell you about this crypto ca