like it, but we had a b of a note out this morning. put a little cold water in the run up on this stock so much interest in shares of moderna right now. i'd be interested how long it lasts. >> that's really surprising. again, getting more chatter, even as we hope the pandemic is winding down dom, great having you. thanks for tuning in to "power lunch. "closing bell" starts right now. it sure does welcome to the closing bell. i'm morgan brennan more records set here on wall street today the dow popping 200 points to a fresh high the nasdaq is pulling back again today. >> very good afternoon i'm wilfred frost. let's look at what's driving the action the latest read on consumer prices showed a jump of half a percent which was larger in line with expectations. more inflation up 4.3% decelerating slightly from june. caterpillar, home depot and

honeywell are helping boost the dow's construction related stocks on the back of the infrastructure bill and the nasdaq is lagging once again in jeopardy of turning in its third down day followed by a big drop in shares of moderna 59 minutes left to go. materials leading. health care on the bottom. >> coming up on today's show, a new way to play the electric vehicle boom battery and recycling company li-cycle going public via spac today at the new york stock exchange we'll speak with the ceo and the environment impacts of the revolution and speaking of evs. lordstown motors is gearing up for earnings along with ebay, bumble, sonos. we'll bring you all of those results as soon as they hit the tape >> let's focus first of all on the big stories we are watching today. mike santolio is tracking the market action. and joins us to talk about the airlines and southwest's new covid warning is elaine becker

mike, let's start with you and the broader markets. >> i think we hit an intraday high each day this week on the s&p 500 and yet only up less than a quarter percent this week we're hovering and clinging to those highs. one thing the s&p is working against is a model pullback in the megacap tech stocks. it's mostly an old economy led rally. a swing back toward cyclical value and even some defensive, consumer staples and utility stocks almost everything but growth and tech take a look at russell 1000 value versus growth. we've had these wide oscillations in this relationship for a while the peak of value over growth for the year, first was in march. that was back when yields were racing higher. we had a lot of enthusiasm about the reopening. once again, we got it in may, into june. similar widespread and then look what happened recently in the last couple of

weeks. exact parity between russell 1000 and that's now been the prompt for rally to take off again. if you look at this as a single line chart it would have bumped the same level,value versus growth and bounced off of that so that's essentially what we're seeing fewer stocks really are leading the way. this has been a concern for weeks. look at the percentage of s&p 500 stocks over -- approximately three-month average. you'll see even though the s&p again making new highs right here, 55, 57%, it's not necessarily an indictment of the sustainability value but it's a headwind shows you more selective market. it's not really the kind of inclusive high momentum, broad push that we often get here. maybe seasonal factors but something to keep in mind as we're looking for signs perhaps of fatigue as we tread water, guys >> mike, the value versus growth chart showing even when you're

not seeing both of them meet up as they are now with strong gains for the year that if someone is selling one of them, they're probably buying the other rather than taking money altogether out of the equity market >> absolutely. it's been the story for more than a year right now. you've had really wild swings back and forth between styles of stocks, sector leaders and laggers but it's been in the context of a grind higher. indexes have been a way to stay out of trouble, if you own just the s&p 500. you don't necessarily much care. some things have always been working. you can obviously have slippage. the baton can get dropped as we pass it back and forth so far, it hasn't really hurt, up 18% year to date. >> mike, thanks. dow up 0.6% and leading the charge of the major averages with 55 minutes left southwest airlines warning it will see an impact to the current quarter due to the covid delta variant. it's seeing an increase in

cancellations this month due to rising concerns. the big four airline stocks down more than 10% in the last two months up now having opened lower on the session. karen from elaine becker thanks for joining us. just remind us what this guide from southwest was is this seeing a fall in bookings for the next year's worth of potential flights or just a drop off in the short term >> hi. thanks very much for having me it's just a short-term blip. forward bookings for the next three weeks that they are seeing a decline in -- it's not really a decline as much as it's a deceleration in bookings and you would normally see a deceleration at the end of the summer heading into labor day as people go back to school and vacations end and so on. but i think that would have been in the july guidance they gave us, right? i think what you're seeing now

is this deceleration caused in part by this delta variant that's finally impacting the forward booking numbers. but it's only -- it's really hard to get a fix on anything beyond -- >> so does it make sense to you that southwest has recovered intraday >> yes, actually yes, because i think what happened is a lot of investors with whom -- these stocks are down like 40% or something since march. and a lot of investors were asking this question on the conference call, you know, are you seeing this delta variant and blah, blah, blah, impact business and the answer was, well, we're really not seeing it with airlines you don't see it until it occurs. and i think the byside was ahead of the company on this and even some of the sell side was ahead as well just on the idea that the delta variant would eventually cause people to

rethink their plans, especially because it gets so much play in the media all the time and i think that people sold the stocks ahead of this -- the guidance updates and now that it's out there and we said this morning in a note that southwest was the first, they won't be the last everybody knows. so i think it's kind of safe to wander back into the group >> so it's morgan. what does this do? we're sort of talking about the near term. what does it do to the medium and long term for these airlines when business travel and rethe recovery there and then international travel are -- or have been, i should say, the big key questions for investors. >> yeah, hi, morgan. thanks again so, yeah, i think those are really great questions i think we were certainly expecting and still are that after labor day and people go back to work and school, well, people go back to the office,

that companies will figure out how to get their people back and they'll figure out how to get guests in and that business travel will resume the recovery is going to be somewhat lumpy, maybe nonlinear in that ending the year with business travel down about 50% so we still think we're going to see our recovery just think it's going to be a little elongated so that 2022 is better for international, so that's really bizarre to me because some markets internationally, no problem. we were traveling internationally last week. all we had to do was show proof of vaccination and we were allowed in with no quarantine, no nest. we had to test to come back to the u.s. but i think that's what has people concerned not so much that the borders aren't open. it's more like, i'm out of the country now. are things going to change and

am i going to get stuck out of the country? that's the bigger concern. until you have a consistent policy and that probably needs to be led by the airlines' lobbying organization and the international air transport association, i think it's going to be really hard for international to come back consistently before 2022 >> is there a lot of pent-up demand for that, though, on both the leisure and business side? you touched the business side already. but on the leisure side is it more of a one-off burst as people get to go home and see their families if they live abroad rather than a sustained build back in vacationing given that it's so much easier to stay in america >> i don't know the answer to that but i think there's a huge amount of pent-up demand what surprised me on our trip last week was how many americans were where we went we went to ecuador and how many americans were there and when we were at the airport

in the united states, the airport to the u.s., we flew out of and then in quito, how many americans were traveling so, yeah, wilfred, i think there are a lot of people who just want to get out. my dentist told me yesterday that she was in greece last week i mean, people are out and about and they are liking it and they want to do it. it's going to have legs. you've had almost two years of people not traveling outside the country. and just traveling domestically. how man times can you go to a place that you've been how many times before, before you want to start seeing new things? so i think it's going to be another jail break i called it that for the summer for americans, traveling domestically i think we're going to see it intern internationally, probably late fourth quarter and first quarter as this pandemic, hopefully, gets behind us yeah, that's how i'm thinking about it

>> jail break. i like that. helane becker, thanks for joining us on a day where the dow transports, including the airline stocks are outperforming the broader market a new way to play evs. speaking of transportation we'll speak with the ceo of lythion battery recycling company li-cycle which just made its public debut today through a spac we'll ask how the biden administration's new ev targets could impact his business. you're watching "closing bell" on cnbc. ♪all by yourself.♪ you look a little lost. i can't find my hotel. oh. oh! ♪♪ this is not normal. no. ♪♪ so?

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welcome back electric vehicle battery recycling company li-cycle going public under spac today under ticker licy. just last week president biden set a new national target for 40% to 50% of new vehicle sales to be electric by 2030 li-cycle co-founder and ceo ajay kochhar joins us in a first on cnbc interview ajay, congratulations on closing the merger and becoming a publicly traded company today. let's start a little bit with the business proposition of your company. i think back to a couple of months ago, talking to the ceo of freeport mcmoran. he said we could see copper shortages. in terms of some of these materials that go into these vehicles, there just isn't enough >> yeah, no, spot on pleasure to be on, morgan. this is a great day for the company and a great honor to be here look, we're a commercial business and zooming out, the recycling

piece of the electric vehicle supply chain has been a huge question for a long time the consumers ask, where are these batteries going to go? it's not just batteries at end of life but also scrap it's not perfect as you make batteries. back to your question, there's also critical material issues. lithium, nickel, cobalt, these are critical to go into batteries and are needed in vastly greater quantities than we'll be able to produce at battery grade. recycling can be an eliteiator we're on that track scale with our customers to help solve that problem and much more. >> let's talk about the technology that actually enables that because historically, the dirty secret of clean energy has been things like these batteries that, at least until now have not been recycle friendly. >> we're basically the urban mining and our roots, we're technical folks. we've innovated a scalable technology that we own and have a customer relationship both on the way in and the way out that's nonthermal.

historically sometimes battery goes into thermal operations where a lot of materials are burned off i think consumers and those in the supply chain, you can't subscribe to that. battery, end of life going to the supply chain what we do is economically sustainable and environmentally sustainable. this is the key to really that last missing step of the overall supply chain where are we we're a commercial business. recycling thousands of tons of lyithium bathries. altium is a joint venture. we have these customers that are rapidly scaling, have issues starting with scrap, in terms of production rejects, and that's a first wave of material and they also have the need to secure units secure lithium, nickel, cobalt think of life cycle as the picks and shovel story for the electric vehicle revolution. >> clearly more take-up of evs would be a positive for your

business i can see that that said if we get much better innovation in that space from the ev companies or the battery suppliers and makers such as the batteries last longer, they are better, more enduring is that a bad thing for you? >> no. and i think this is something where people have a knee-jerk. they say, aren't you just going to be waiting for batteries to die in ten years or whatever it might be so give the case of producers of battery cells. when you make battery cells, it's not perfect you can have a few percent scrap, it's not a huge percentage when you make a lot of batteries, that's a lot of material think about as the first wave enabling us to set up the infrastructure to deal with phase two which is the future tsunami. this is really urban mining at the first scale which enables financials at a very good level. using patented, proven technology but setting up the infrastructure for the future. that's your question, wilfred. no we keep track close with the battery industry but not a huge

risk >> talk about the growth trajectory sales are expected to grow from $12 million to roughly $75 million next year. you are expecting that to ramp to $1 million by 2025. how does that happen and how does that enable profitability >> our unit operations are unit profitab aable on a unit econom basis. our business scales with tons. the more tons we recycle, the more we make revenue in ebitda the ultimate example one factory they have already being constructed at the tail end in ohio. that facility and others, these giga factories of scrap really fills our first larger scale facility in rochester, new york. that's the contracted part of our revenue. as they are scaling, we need to keep up. general motors, a 30 ev models they have already a ohio giga factory. they've announced three more we are continuing to try and keep up and that's where we are.

we're scaling in lockstep with our customers, and it's really proliferating more of what we're doing and already unit economic to be profitable >> what percentage, ajay of batteries in evs at the moment use recycled materials or materials you provide versus new material is it a higher percentage of that happening also a growth driver or more evs and more batteries needed that's a growth driver >> yeah, so the actual reintroduction of recycled material back into batteries has not been the greatest. nickel and cobalt have been around 5%. maybe that of recycled material coming back into the batteries what we do in this broader industry, we can change that the next ten years we can boost that to 10% to 20% or more of the overall demand for those materials. it's a big increase. and long term, this can be the disruptor to mining. and it's important to be realistic. that's not going to happen today. it's not going to happen tomorrow but that's very much

the way our customers are thinking they don't want to be thinking about cobalt coming from the congo. they don't want to be thinking about having to dig up this material and also causing other environmental issues they want to tap into the urban mine they are looking for a partner that has a soup to nuts full capablity, fit for purpose technology good and sustainable for the environment. >> ajay, thanks for joining us >> plb pleasure to be on after the break, bidding wars have become the norm in this red-hot housing market. now the same thing is happening with rentals as well we'll tell you about the trend that one landlord said is unlike anything he's seen in decades. that's next here on "closing bell." set for two record closes, s&p and dow.

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bidding wars have become the norm in the hot real estate market but now they are happening with rentals as well. diane olick has that story for us

hi, diane. >> yeah, landlords are seeing competition usually saved for home buying. and it's all pushing rents higher in july, rents nationally rose 7% year over year for one-bedroom apartments and nearly 9% for two bedrooms that's up from 5% and 6.5% annual gains in june rents for single family homes in may jumped 6.6% year over year, which is nearly four times the annual increase seen in may of last year. matt moved to new york city this past weekend to start a new job. he toured about 15 aparmts but lost the ones he wanted due to fierce competition >> it was terrible if i'm being completely honest, i spent the entire day going around to different apartments, getting tours. in the middle of tours, i would have the tour guide looking through the list of apartments and they'd say oh, actually this one has an application in already. >> now part of the reason competition is so force is because home buyers are getting priced out in this very expensive market and heading

back into rentals. if you want to see which cities are seeing the most competition, check out our story on cnbc.com. >> i will, diana, but i'm also going to ask one of the questions before i read the article. and to what extent is new york or are there certain outliers and how much has this changed in just the last few months i feel like february, march type time, when i was doing mine. it was quite the opposite. you were getting incredible deals as opposed to seeing rents go up. >> it really started this spring that's when the rent rush came in force you saw rent applications up 100% in new york city. and up 55% in seattle. so it is really people who are coming back to the cities and also, of course, the economy opening up meaning more people got jobs, meaning they wanted to move out of shared situations and into their own places. so it really started strongly in spring of this year. >> it's such a key topic, diana. you've been all over it.

housing costs. of course, how that factors into the broader inflation debate thanks for the report, diane olick. shares of equifax up 35% this year as the credit reporting company makes a slew of acrizigss, including its second largest ever just this week of a fraud prevention firm. we'll talk with the ceo about the buying spree and protecting customer data. as we head to break, here's a check on bonds yields pulling become a little the 10-year still holding above 1.3% we'll be right back.

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welcome back let's check on some individual market movers. shares of moderna plunging today. the biotech company dropping sharply after hitting an all-time high on monday. in the last 24 hours, moderna has become the number one mentioned stock on reddit. and an analyst at bank of america -- back on monday, mike santoli was pointing out the enormous volume it was enjoying much higher than apple that day despite its market cap being much smaller. let's talk now app harvest the indoor farming company reported second quarter results this morning and cut its full year 2021 net sales outlook to

the range of $7 million to $9 million from the prior range of 20 to $25 million citing operational challenges stock is down 27%. we've had the founder on before. and, mike, you wanted to comment on this. i didn't know whether you wanted to comment on this as a read across the state of the spac market or because you've been tasting their tomatoes and have some strong views there. >> half the reason to do this was an opportunity for wilf to get the pronunciation right on the food >> while i'm here, i'm here. >> exactly seemed appropriate >> i didn't want to get in trouble there. obviously, it is reflective of certain aspects of what's been happening in the spac market those numbers you cited. think about how small those revenue numbers are. less than $10 million in projected revenue. clearly this was a very early beginning stage company that at one point had a multibillion-dollar market cap martha stewart sothe board and it's really emblematic of

how a lot of the buzz phrases, the esg is kind of new age farming, whatever it is, are basically stories and five-year projections disguised as public companies. and it's not the first spac to warn right out of the gate i do feel like we probably learned the lesson of the first quarter vintage of spacs and how aggressive some of those deals were there's some 300 of these that still are looking for a target still looking for a deal to do so you wonder if it's going to become tougher to find a suitable business to buy might be more porzaic type companies than the buzz and pitch with a five-year projection >> you say new-age farming i say hydrouponic. >> exactly it speaks to your point about the companies we've seen go public via spacs companies pre-revenue and were betting on that future in many cases, some of these newer emerging technologies that

have a long way to go and are risky. >> public venture. >> totally we'll see you in a few more minutes. time for a news update we turn to rahel solomon >> hello, everyone here's what's happening at this hour new york lieutenant governor kathy hochul wasting no time saying she'll lead in a different way when she takes over from andrew cuomo she said there is no place in her administration for any cuomo aides' implicated unethical behavior she also promises to fight like hell for new yorkers >> i'm ready i want people to know i'm ready for this it's not something we expected or asked for, but i'm fully prepared to assume the responsibilities as the 57th governor of the state of new york >> mcdonald's is requiring all of its u.s. workers to be fully vaccinated by september 27th mask wearing will still be required in offices for all, regardless of vaccination status the company also postponing its official also reopening date

from september 7th to october 11th and in sicily, italy, soaring temperatures feeding wildfires and complicating efforts to contain the fires there. the mercury hitting 120 degrees. the highest in at least 19 years. here at home in new york, we're also dealing with a bit of a heat wave. >> our hearts break for everyone that's getting affected by the wildfires which are really the world over right now rahel, thank you up next, a first on cnbc interview with the ceo of equifax. we'll talk to him about the company's earnings report, its recent $1.8 billion purchase of a crime data company stay with us 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...

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equifax shares getting a pop yesterday after the company announced the acquisition of aprus insight. they collect data about the criminal justice system and sells it to federal and state agencies it's the company's eighth acquisition in the last six months joining us to discuss in a first on cnbc interview is equifax's ceo mark begor thanks for joining us. i guess a quick outline on this acquisition, and the follow-up question being, are you done now? you've been on a prolific spending spree >> thanks for having me on our performance has really been improving over the last 24 months as you know in 2017 we had the cyber event that was a significant impact onthe company. took time to rebuild ourselves in 2018 and '19 and in that time frame we made a decision to

invest in the cloud and go to cloud native we put a billion five into our tech stack which is a lot for a $4.8 billion revenue company that's really changed the operations and results of our company. last year we had 16% revenue growth up from an historical 6% to 8%. and through the first half up 26%. that strong performance is allowing us to reinvest in the company with bolt-on acquisitions we completed 8 acquisitions this year of about $3 billion of acquisitions that will add revenue. and a unique data set around incarceration data used not only by state and federal agencies but also in the hiring process which is a big tam where background checks are done on individuals before they are hired by a company >> so lots of new stuff going on as you outlped for us there. what about in the traditional

business clearly housing markets reboundedrebound ed very sharply and mortgage rates are soaring. can that continue? >> low interest rates are a positive for the financial services industry. we participate in that so we have a loerge business that's performing quite well we participate in auto lending where there's underwriting done, credit card space, personal loan space. we're much more than that now. more than a credit bureau. a lot of our acquisitions are driven to diversify. our largest business in equifax which is 40% of our business is our income and employment business workforce solutions and that business is really focused on supporting the hiring process and government services delivery of social services. for example, in the hiring process, there's 75 million people per year will be hired in the united states or change jobs and that's about a $5 billion data tam that we participate in. when someone is hired they want to verify their past employment

and they'll also, using the aprus data determine if they've been incarcerated in the past so they condo their own decisioning around that hiring process and government services when they are delivering social services you have to verify someone's income and we have the data to do that in our workforce solutions business and same thing with incarceration. if you're incarcerated you're not permitted to get many social services that's the data element. and the real macro is our differentiated data and the power data broadly whether it's a decision or identity or fraud or different verticals we participate in. >> mark, it's morgan you just said the key word, data at the end of the day, you're in the business of data going back to the 2017 hack and then the fact that now it seems like a day doesn't go by that another company doesn't get compromised in some form or fashion. you did this most recent acquisition. how are you keeping all of that data safe, and what would those lessons from equifax be to other

companies now navigating all of this >> it's a threat to all of us. we get attacked every day, like every other company and you have to defend yourself and it's one that you have to invest heavily in it a big part of that $1.5 billion in our tech stack over the last three years and really a doubling of our tech spend was around security. when i joined in april of 2018, about six months after the cyber ev event, i made a company we be an industry leader in security. that's a high bar and one we're always focused on. you're never done in security and never at the finish line the other thing, i made it a direct report to me. many chief security officers were reporting to i.t., and to legal or some other functions. this is a key function, particularly when you're a data analytics company with trillions of assets you are managing it's a direct report to me one that we're investing in. and you have to o have it as a top priority >> mike begor, thanks for joining us

good to see you. >> thanks. up next -- southwest warns about the delta variant, and investors gear up for lordstown a results after the bell that and more when we go inside 're "market zone" which is next. wee set for two record highs on the s&p and dow (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life. that's life well planned.

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down the crucial moments of the trading day. and we've got ritholtz wealth management's josh brown here as well let's kick thing offs with the broader market any close higher would be a new record close dallas fed's president was on the exchange with his latest stance on the taper timeline >> it would be my view that if the economy unfolds between now and our september meeting, if it unfolds the way i expect, i would be in favor of announcing a plan at the september meeting and beginning tapering in october. >> we're hearing more and more of this commentary from fed officials this week, mike. >> we are. and it is coming from a familiar direction, which is the regional fed president. so kaplan has been on record as being on that side of the spectrum and boston and others and i don't think today's inflation number altered the

equation very much it's very consistent with the idea that we had this surge in the inflation rate and it's going to fade to some degree over months. we're still in that window when it can be -- the question is what rate we settle back at that's the debate down the road. nobody thought it would be 5%, right, for consistent basis. >> 5.4% is considered a good number today after some of the numbers we've been seeing. >> despite the acceleration in the core the market is fine there will be a tussle over the timing of the taper announcement but that's kind of noise because this market is not going higher because of the exact $120 billion the fed is buying. >> josh, do you agree with that? do you think this means much less for the equity market than perhaps for the yield on the ten-year treasury note >> yeah, because i don't think the 10-year treasury is accurately reflecting changes in the economy.

i don't think it has been for a long time, and i think it's a much bigger source of head fakes than clarity about anything forward looking. we know this we look at break evens and other things we get additional evidence but the treasury market is much more impacted by demand for safe assets in a world where very few of them yield anything so i don't know that we need to look at the 10-year and say now tighten. don't tighten yet. i think bigger picture, what's going on here is despite this inflation that people are concerned about, if you actually look at corporate profit margins they've never been higher. you can go back 11 years and not find a period of time where s&p net income as a percentage of revenue is where it is today it's outstanding the way corporations have been able to do a couple of things. the first is solve their problems supply side problems but the second is pass on higher costs to consumers really

without any impact whatsoever. so i wouldn't say miraculous maybe that's too far but it's really not impacting really anyone in corporate america to the extent it's hurting margins. and the last piece of this and i've been saying this all year, there is a very good chance that when the taper begins, the stock market will celebrate rather than recoil in horror at the prospect of a tightening cycle beginning and part of the reason for that comes from sentiment. i don't think many small business owners or many investors who, let's face it, are in the top 10% of wealth in this country are thrilled with the rate at which prices went up this year. and i think there will be some relief that the circus might come to an end i think most reasonable people understand that with where employment is, we're no longer doing anyone any good with relentless asset bubble

inflation. so that's where i stand. i think it will be a positive catalyst, and it's really not a big thing on my radar as like a source of market concern we should not be doing emergency stimulus given how great the economy is right now >> shares of coinbase rallying today after beating earnings estimates yesterday. the coinbase cfo was on "squawk box" earlier talking about how crypto volatility is good for the company. >> we do have cohorts of investors who really enjoy trading through those -- but we're starting to see utility in crypto. we're seeing people engage in staking, people engage in earn and other transaction types. and this is also growing at a more rapid pace now than our transaction fee although only 5% of our revenue volatility helped deliver a strong q2. but our product road map is going to help us diversify over the long time and tamp out some of that volatility on our platform >> josh, a little disappointed

by this revenue growth >> revenue growth was 1,000% year over year in all of your time doing earnings reports on cnbc, have you ever been able to say those words? and up 27% quarter over quarter. >> i think you missed it i was being sarcastic. it took you a moment >> no, i know. can't help your sarcasm, wil i would just say, look, one of the headwinds for -- coin looks good highest level since early may. one of the headwinds here and for all crypto participants is that in the next six months you're going to see these companies brought increasingly closer toward the mainstream traditional financial system and while that might sound exciting for the early pioneers of this, actually, i think it could lead to probably a little bit less excitement on the revenue and margin front because in order to be part of the

mainstream financial system, they're all going to have to spend a lot of money on compliance and being in line with regulations and having their pipes connected to the right places and reporting on people's income, et cetera so be careful what you wish for. the wild west phase is over. this stuff has now been main streamed to the point where it will be taxed, regulated it will be overseen and it will come into conflict with people that want to impose additional rules on what, so far, has been virtually unregulated. >> all right story we're going to continue to cover. southwest airlines issuing a big warning about the impact of the covid delta variant. phil lebeau has details for us >> it shouldn't be a surprised as covid-19 delta variant continues to spread that you'd see some reflection of a drop in reservations for southwest airlines that's what the company warned about today. even though the stock went up with the rest of the market it was under pressure earlier in the day and premarket. the company saying they have

noticed a deceleration both in terms of near-term bookings and acceleration in cancellations. is this canary in the coal mine? will we see this from other airlines raymond james saying we expect other airlines that provided revenue outlooks to revise revenue guidance lower but likely in early september. that's from raymond james. take a look at the airline stocks keep in mind the passenger levels right now down 20% to 30% compared to 2019 we could see revisions similar to what we saw from southwest over the next couple of weeks. >> phil lebeau, thank you. we've been talking about the last couple of days this idea of what's priced into the market here the delta variant and spike in covid cases. is that nearing a peak is that priced in? perhaps some of that is reading through to airline stocks despite these warnings >> the high was in march a near high in june. the market has been very

cognizant of booking trends and whether there would be headwinds. certainly southwest's franchise, geographically, really where it's centered, would be very impacted by this you are seeing the market figure that out the premise of what the market has been up to and buying the cyclicals and industrials. recently looking through to a rolling over of case load. whether that's right or wrong, that's the way the market is positioned right now >> josh, if you have been drawn into any of these travel names on these pullbacks that mike was conf referencing there? >> no, my preference has been to avoid the airlines if you want to play travel, there are better ways into travel booking stocks. but the name that i own that's been most impancted has been google i think it's still the best faang name on the year may be neck and neck with apple at this point. a substantial part of google's annual revenue comes from travel search related ad revenue. and i do think for that reason,

google has worked. and i don't need to own airlines that are laden with debt and have capital equipment on their balance sheet. it's just a much more complicated way to be involved i like the way i do it >> lordstown motor shares are down more than 70% this year amid concerns about their production timeline and ability to stay in business. investors are about to get another look at the company's financials when they report results. phil lebeau has a preview of that >> just a few minutes from the q2 numbers from lordstown. it's rare i say this on a financials reporting day forget about the numbers nobody is paying attention to the numbers. they are paying attention to a couple of other things first of all, liquidity and capital. that's the primary thing people will be focused on they said back in may they need a capital injection or strategic investor that's what the people will be focused on when the company reports its results and more importantly, what's the tenor of

the conference call? is there any sense that these guys see light at the end of the tunnel, a path forward as it is right now, it was not looking good the last time they gave an update to wall street. we'll see if that's any different when we hear from them in a couple of minutes the numbers and the call later in the 4:00 hour >> down 4% today, down 72% for the year to the market internals. mike, set for two record closes. >> we are. internally, some improvement after a relatively soft start at the new york stock exchange. volumes split up versus down about 2 to 1 not quite, but close to two-thirds of all volume to the up side. that's been an improvement the nasdaq is a good deal weaker 130 or so new 52-week lows in the nasdaq that's a little slippage breadth has been uneven. the 10-year note had a big decline right after the option of 10-year notes today people buying the dip in

treasuries but up off those lows so it's keeping that little bit of uptrend month to date intact staying above 1.3. the volatility index really looking heavy here around 16. got past that known potential volatility moment with the cpi report obviously summer volume is low. this has a little sag to it back toward the recent lows 15, probably more consistent with record highs and very common volatility. we'll see if we get there p. just taking a look we're poised for record closes for both the dow and the s&p the dow right now up 218 points, near session highs for the day it would be a second straight day of record closes for these two averages the s&p, 4447 is the level there now. up about a quarter of a percent. if it hits 4474, which i don't think we'll do, but when that time comes, if it comes this week, you're talking about the s&p doubling that march 23rd,

2020 pandemic closing low. we keep our eye on that. in terms of what is outperforming, it is materials industrials. financials [ closing bell ] there wehave it. record closes for the dow and the s&p again. nasdaq, though, is lagging down slightly. >> the 46th record closing high for the s&p 500 this year. welcome to "the closing bell." i'm wilfred frost with morgan who is in w closing at a recorfd record close of the day. the nasdaq lower only 0.2% by the close had a decent late day surge. the s&p 500 up 0.25%, enough for

its 46th record closing high of the year only one sector in the red, health care. down 4% for the one declining sector of the day. coming up, ebay, lordstown, ebay and bumble are all set to report we'll bring you instant analysis of the numbers also still with us is josh brown and liz young joins us from sofi. tom sosnos from tasty trade. mike santoli, i come to you. 46th or so record close of the year for the s&p 500 kind of relentless grind but also something was yields picking up a bit earlier in the session. essentially overall the markets shrugging off or welcoming that cpi data >> without a doubt at least it was no fresh reason to be overly concerned it was pretty consistent with, i think, the premise there we had this massive surge in

yields and then maybe an overshoot to the down side in yields and a lot of heavy flows into things like treasury etfs it seemed like a decent moment for a little bit of a rebalancing over there it's been a trudge more than a print for this last little stretch. that's not really an indictment. we've talked about some episodes of weak market breadth today the equal weighted s&p was up half a percent. hard to get too concerned when the market is acting like that the only question is, morgan mentioned might be nearing a doubling of the closing low. at some point it will feel like a mission accomplished moment as weak august seasonals are on everyone's mind. the market isn't giving a tremendous amount of reason to be worried p.. >> liz young, i want to get your take on the market as we continue to trudge toward these record levels without any kind of meaningful pullback since last fall.

>> yeah, it's interesting. i think i heard it was the 46th record high on the s&p that hardly feels like trudging. that feels like record high after record high after record high and now another one on the dow. what i do like about the market today is that it was the cyclicals back in the fold again. and i think the cpi data, like mike said, nothing new that's concerning but there's been a lot of talk today about there being moderating in the cpi data yes, month over month, but i don't think we're out of the woods. we're far from that. i don't want to declare victory on cpi and say inflation is transitory we'll still see volatility on that as fall drags on and we hear from the fed. >> record closing levels what are we seeing in terms of volumes and engagement over the summer months? >> from my perspective, because, remember, our firm is mostly derivatives, not as much stocks. mostly in options and future

space. and digital assets we're seeing a little bit softer volume across the board in almost every -- in almost every underlying whatever the asset class is, the participation is weird for record highs because the participation has been so low, but especially on the futures side it seems to have been a big drop off in the last, i would say, last three to four weeks. the option marketplace has been steady, which is about 30% off the occ highs from just a couple of months ago. we've been staying steady at 30 to 33 million option contracts per day. the futures business seems a little soft. and the digital asset business has been a little softer just because of the drop-off in certain coins like doge and things like that >> josh, i want to dig into this how much is seasonality and how much is it this time last summer we were still shut down in so many parts of the country and

had this surge of retail investors getting into the market this year we're lapping those comps. >> yeah, it's really interesting. i don't think -- last year was a transformational moment in markets. and you saw a lot of activity that you probably won't see. there will be another event like that there will be other transformational events in the future but that was something that i don't think is necessarily repeatable and, therefore, not scalable. i would say that i'm not as big a believer in seasonality as far as, you know, as far as participation trends go. but i think that -- because i usually think that september, for example, is -- tends to be one of the slower months, slower than july and august i think we're coming down a lit off these crazy highs on a participation level and we're normalizing a little bit waiting for the next moment, the next event might be binary. might not be but there's definitely a lot more participation on an

individual basis than there's ever been. but just some of the big volume isn't there right now. >> lordstown is jumping after hours. phil lebeau has the reason why >> 61 cents a share. no revenue prerevenue the expectation, the estimates were all over the place. thinly followed. they were for a loss of 49 cents a share. that's not what's moving the stock. the reason it's moving higher is because the company's guidance to a certain extent you could look at this if you are optimistic this is a company that will make it. look at this report and say, yeah, i think they will make it. they say they'll begin limited production of the endearance pickup truck in late september through the end of this year in the first quarter they'll have advance commercial deliveries in early q2 with the ramp up in production steepening in the second half of next year. but it's all about the money they ended the first quarter,

the second quarter with $360 million. they expect to end q3 with 225 to $275 million. what about a strategic investor? they say that they are evaluating potential strategic partners with multiple industry participants being possible as those possibly joining into their production facilities there in lordstown, ohio so that is why the stock moving a little higher. i wouldn't call this bullish, but i would say that if you are hoping that these guys are going to find a way out of this as they look for a capital infusion or strategic investor, they gave you a little bit of good news. obviously, we'll check out what the tenor of the conversation is like during the conference call coming up in a little bit. guys, back to you. >> phil, how similar is the skepticism that they face right now to what tesla was facing, whatever that was, seven, eight years ago? >> far different far different. in part because the skepticism and you'd have to really go back ten years ago, 11 years ago for

the skepticism about whether or not tes-- tesla would be a goin concern. they were creating a market that was not there and there were really questions about, a, could they start to get people invested and interested beyond the roadster the roadster got a lot of interest early on from people looking at what elon musk was doing. would they have the capital to make it to at least the model s which was really the first product for them it's a different animal completely compared to what we're seeing with lordstown. >> phil lebeau, we're keeping you busy today thank you. downtown josh brown, i want your thoughts on this. not necessarily lordstown earnings per se but how it speaks to this broader scenario that investors had to navigate with all these companies going public via spac. some more mature some more untested, unproven and the risks associated with that >> well, i would say on

lordstown, i don't think anything matters here other than the fact that there's 30 million shares short and i'm not even counting shorts via options or anything like that if you think about a company where 18% of the float is betting against it, they don't have to have good results. they just have to be able to demonstrate the fact they'll stay alive think about the mindset of somebody who is still short a stock that's fallen from $20-something to $5. if they are still short at $5, they think it's zero you wouldn't be short at $5 thinking it's going to go to $4 and you're going to cover. as long as they can present the case where it's not a zero, very tough to stay short. that's why you might get an exaggerated boost in the name after reporting whatever you'd call this nonrevenue results for me, i feel like this is going to be a story that hinges on somebody coming in with capital, whether it's a

strategic investor or these guys selling a convert or share offering to the street that's really all that's going to matter and how many of these shorts left still want to play russian roulette >> either way, lordstown is up 8% in after hours trade. ebay is also moving higher deidre bosa has the numbers. >> we're seeing mixed results from ebay. shares are up more than 3.5% in extended trade eps coming in at 99 cents. that's a four-cent beat to what the street was expecting revenue falling short of expectations, however. $2.7 billion versus $3 billion expected in terms of the q3 guidance, falling light on both. eps and revenue. gross merchandise volume, this is an important metric, also light here $22.1 billion the street looking for 22.2. also a note that they'll expand

their buyback program by an additional $3 billion. remember, though, the expectations were not very high going into this particularly after amazon's results a few weeks ago, though ebay is outperforming some of the other e-commerce names this year, which is a change from last year shares up 35% year to date versus a 1% for amazon and 8.5% for etsy back over to you >> dee, thanks for that. don't miss ebay's ceo on "squawk on the street" tomorrow morning at 10:15 eastern with morgan and the team josh brown, i come back to you on this one. as dee was saying, compared to amazon, which has not been performing that well nice breakout four to six weeks ago and pulled back quite a lot since then >> yeah, i have to say, i don't really view ebay as a great comp for amp zon. a lot of -- the better comp is pinterest and etsy and they're much smaller,

obviously, and don't do as many of the things for consumers that ebay does. but it is the same consumer. it's the person sitting around buying other people's old stuff or things that people make or whatever so i think that that -- like amazon, people are buying like essentials things they need to live it's much more like if you think of it that way and then the aws business which is way more important. that has nothing to do with ebay if you look at a chart of ebay, had a massive ive sell-off when pinterest blew up. these stocks are not having a good office and they're lapping last summer and last summer was probably the high point for people sitting around buying things they don't need and doing designs and arts and crafts and whatever on their computers. that's not what's going on out on the streets so i don't want to be in this name, and i think if you're long and have this pop after earnings, i'd take it and move on do something else. >> yeah, i think that's key

context, mike. especially in light of the fact ebay has pushed hard in terms of being able to verify and confirm collectibles and watches and things like that the other piece of the puzzle is the buybacks we've been seeing more and more buybacks or buyback plans initiated this earnings season, too. >> ebay is at that stage of life it's a maturing e-commerce utility. very modest valuation. old tech it's 20 years old. 15-ish, 16 times earnings. not much top line growth there's sort of underlying value if they can retain much of this merchandise volume and the buybacks are a piece of that story. sonos results out now. for that we turn to kristina partsinevelos. >> the share price is definitely reacting right now earnings per share gap earnings per share came in at 12 cents. a profit of 12 cents versus a loss of 17 cents

definitely a beat there. revenues came in stronger. $378.7 million that's why you see the stock price initially plummeting -- i should say jumping upwards full-year revenue guidance between $1.695 billion to $1.71 billion. that's definitely stronger, too. the ceo saying, quote, this record shattering quarter, they said two of the major trends is hollywood at home. more people spending money on speakers because they're watching movies at home. and the second major point is as we work from home with all the zoom calls, we are upgrading our speakers, too, so the profits have increased because more people are buying their goods. 8% >> kristina pat some of the loss,l -- partsinevelos, thank you i want to get your thoughts generally as we see more results from more companies in some

cases like just now sonos, record results how it speaks to what we're seeing in the broader market with the numbers we're getting and the peak numbers >> anecdotally, i recently bought a new sonos speaker i've got two in the room it was an upgrade and it was because i wanted to connect it to my tv to watch stuff at home. that trend is on point the earnings season as a whole was really, really strong when you look at eps, look at revenue, the interesting part of it is that the price reaction to that in the market was very muted. so the market isn't really rewarding necessarily all these strong results which i think is okay we pulled it forward the market expected us to have a strong second quarter. and it expected us to see peak numbers not only in earnings but in gdp growth and probably in sentiment. and that peak was only a peak because we're comparing it to the trough of last year. so then the next natural question is, are we at peak

returns in the market and i think the answer to that is absolutely not i think we will move higher between now and the end of the year there are a couple of things we have to get through. we've had infrastructure news this week but there's going to be a dig debate about that and probably's debt ceiling debate which the market doesn't like. we get to the other side and understand the year higher than we are today >> we'll leave the conversation there with our all-star panel. thank you all for joining us josh brown, liz and john the ceo of lightspeed. we're back in two. no-no-no-no-no please please no. ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪

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comcast nbcuniversal is investing in entrepreneurs to bring what's next for sports technology to athletes, teams, and fans. that's why we created the sportstech accelerator, to invest in and develop the next generation of technology that will change the way we experience sports. we've already invested in entrepreneurs like ane swim, who develops products that provide hair protection so that everyone can enjoy the freedom of swimming. like the athletes competing in tokyo, these entrepreneurs have a fierce work ethic and drive to achieve - to change the game and inspire the team of tomorrow. welcome back lightspeed commerce recently announcing q1 earnings revenued soared by more than 200% the company has 150,000 locations up from 10,000 the prior quarter. recently adding spacex and

telluride ski resort to list of customers. joining us is dax da silva back to the show >> thanks for having me on >> you're in such a key area in terms of the read-through to retailers and restaurants and all of these industries on the front lines of not only economic growth and health of consumer but reopening efforts as well. what are you seeing? >> yeah, we've seen a very strong reopening in this expert. it shows in our numbers. 200% growth. also our transaction volume has grown. we're seeing strong reopenings it's driving strong demand for lightspeed and a lot of new customers and existing customers expanding their services with us we're seeing the reopening in play we saw a lot of e-commerce during the height of the pandemic now we're seeing in-store, in-restaurant sales triple in this quarter

>> i'm curious about the competitive landscape. certainly square would get mentioned in terms of this payments processing business but also shift four is another name as well. how would you -- i guess, how would you describe the landscape and what is it taking to acquire more of these potential customers when you're talking about companies like spacex? >> yeah, the commerce landscape is really wide there's cloud-based players assuming different segments of the market we're serving about 12 verticals of retail and hospitality. one of those is golf it's a hybrid. it has the more complex need it's retailers with tens or hundreds of thousands of skews, restaurants that are fine dine or embedded in a resort, like telluride. we serve that complex smb. so we want to become and we are becoming that go-to name for those verticals.

>> has the hospitality sector, your clients in that space, has it pulled back at all? that 200% growth in the past quarter in the last few weeks, in light of delta? >> in the quarter that we're reporting on, it's almost 400% growth for across hospitality compared to 150 for retail i think it really depends on where we're seeing lockdowns. we're still seeing it across all our verticals but apac, australia, where they are seeing more lockdowns, we're seeing more weakness. lightspeed is, as much as it's a reopening play it's a resilience play we enable the delivery and the takeout and curbside pick-up obviously when dining rooms are open there's a lot more transactions so it's definitely better for these businesses to have everything open but if they can't, if they are experiencing lockdown, then they can transition to the digital strategies that we enabled during covid

>> so is it that consumers are spending more or that there's just more frequent transactions? >> there are more -- there's transactions also in the physical space whereas they used to be a bit more the online ordering so i think there is pent-up demand but i think it's nice to also see these businesses, you know, really resurge in terms of visitors and i think that we're seeing, you know, we're seeing the desire for people to shop local, support local, and go out to these businesses and i think that's -- and we're also see the small businesses become much more comfortable with technology. so i think these are good trends for the local community businesses and we really believe that, you know, that we're building community through commerce, through everything that we do at lightspeed >> digitization of everything. dax, thanks for joining us >> thank you bumble's earnings are out now as well. kristina partsinevelos has those numbers as well.

>> people are still looking for love and are willing to pay for it bumble's revenues beat estimates at $186.2 million but they did face an unexpected loss of six cents a year the company increased q3 and full-year guidance as well higher than estimates. and despite the reopening of restaurants and bars across the company, bumble had 2.9 million paying subscribers bumble bff also doing well bumble was downloaded 2 million times in q2 which is a surge of 18%. and the stock right now is 2.7% higher back to you. >> kristina, thanks for that one. still ahead -- rbc capital markets head of u.s. equity strategy has been bullish on financials and energy for quite some while up next she'll tell us which other sectors she's upgrading to a buy rating also, mike santoli breaks

down new data to find out whether the market is hitting peak earnings growth all that still to come here on "closing bell. at pnc bank, we believe in the power of the watch out. that's why we created low cash mode, the financial watch out that gives you the options and extra time needed to help you avoid an overdraft fee. it's one way we're making a difference. low cash mode on virtual wallet from pnc bank.

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only from nature's bounty. rbc capital markets getting bullish on tech, upgrading the sector to outperform from market

weight considering it the most appealing growth oriented sector the firm cites the return of high quality leadership and tech's earnings profile for the upgrade. the sectors slightly underperformed the broader markets, higher by 17% compared to the s&p 500 up 18%. joining us now is lori, head of u.s. equity strategy at ubc capital markets. thanks for joining us. by first question is something that came up earlier in the show with mike. to what extent when you speak to clients have you felt, it's just a question of, if i'm going to listen to this call it's going to rotate the money from one sector to another as opposed to meaningful steps of profit-taking or investment between equities and cash? >> i think it's more of a question of the investors i speak with, they're all in on equities many of them have to be, frankly. but they have a little bit of an ability to pull up their cash

position and i think that generally most people i talk to are still constructive on the market, aren't very bearish by any stretch, even if they are concerned about what's happening with covid and generally they are trying to figure out the style trade i find that the last month or so, every time i talk to an investor, they're talking about value versus growth. which fund do you want to be in? which way do you want to lean? our answer is we think it's going to be choppy over the next year and a half. we're think we're gearing up for another trade back into value but we think we'll see a peak in that value trade and you'll want to pivot back to growth. we tell people what you want to lean into is a function of your time horizon our sector strategy right now is to buy the best in both buckets. >> and so why now for this upgrade for tech >> i think it's a question of, you know, just our time horizon and we feel like when we get to labor day, when we come back from labor day, everyone is going to be starting to talk about the end of the year but

they'll also be gearing up for the 2022 discussions we felt like we couldn't have an honest discussion about 2022 without talking about the fact that we thought it would ultimately end up being defined as a pivot back from value to growth even though we think there's some runway for the value trade in the intermediate term >> lori, it's morgan you just said something that piqued my interest you talked about the time horizon and that you would say pivot back to growth i think you said later next year why when the fed is going to be in the midst of tightening >> what we typically see when the fed hikes is that it kills the reflation trade. we actually put a piece back out in july after the june fed meeting and did a deep dive into the historical playbook around what happens when the fed starts hiking rates what you typically see is that value has a strong run up until the point at which the fed begins hiking rates. and after that you tend to see

growth take over leadership again during the course of that hiking cycle another way to look at it is small cap versus large cap small cap tends to really do well going into those hikes but during the hiking cycle itself they experience a major peak in relative performance and what tends to happen, frankly, is that we see dearing the hiking cycles, things like ism peak gdp growth go from being above trend to below trend shortly after the hiking cycle is over and the market sniffed that out. they get out of the replation trade. the fed starts hiking when the economy is very, very strong the markets are still reacting to that when hiking is starting. but they sense that an end to that frorthy economic backdrop is going to come to an end it pivots back in the other direction. let's add on to that investor sentiment. we've been doing survey work this summer asking investors what are you expecting in terms of the timing of hikes and how do you think markets are going to react after the june fed meeting, most

investors started to look on the equity side, started to look for hikes to happen in the second half of next year. but most importantly, they told us they thought the markets would start to feel the impacts of that hiking cycle well in advance. if you think hikes will happen in the second half of 2022 and it kills the reflation trade, experienced investors who have seen a lot of cycles are going to try to time that ahead of time and it probably puts you mid-2022 where you'll see that pivot back from the reflation trade and back into growth. >> what about earnings growth, the rates we've seen of it and whether we've peaked out already on that front? >> earnings growth, i think you have to be very careful when you talk about earnings and peaks. in terms of the level, we think that eps will continue to climb higher but we think the rate of growth on eps has probably peaked for now. and what i mean by that, if you go back to the history of past recessions, about a year or so coming off the bottom of a recession you see a peak in the

rate of change in s&p 500 eps growth 12 months later, stocks are usually still up, 24 months later, stocks are usually still up you get a bit of indigestion in the markets in the short term and stocks are usually down about six months after that peak rate of change i try to describe this as, for people who don't like roller coasters when you go up that initial ascent you creep over the tippy top and shoot down it feels terrible. you end up being okay in the end. we're probably coming up into that moment with a change in earnings growth wherequeasy on e >> that's an interesting discussion lori, thanks for joining us today. >> thanks for having me. mike santoli has moved across the floor of the new york stock exchange to bring our viewers the latest round of charts he's looking at earnings trends. >> picking right there, morgan

looks like a roller coaster. we've showed the forward price earnings ratio of the s&p 500 has actually been coming off its recent peak from last near the subtle down move a bit over 21 times forward earnings for the next four quarters down from 23, 24-ish. this is with the s&p itself up 18% year to date obviously, that means forecast earnings have risen well more than that to compret press the esp. the p/e, you can justify it by saying yields are low but this had been about 19. had been the peak for this cycle back -- going back 20 years before we got the covid crash and the rebound. in terms of rate of change the net percentage of s&p 500 companies that are beating earnings estimates the beat rate has been high and rising this is from stifel. you'll see the subtle hint here that the percentage of companies

that are beating estimates, minus those that are missing estimates maybe it's starting to turn lower we have a bit of a rollover there. when else did this happen? certainly happened near the top in 2000. this is january 2018 that was before the market did nothing for a year and a half and we had a stiff correction. coming off of the 2009 disaster and the huge rebound in profits you also saw peak there. it did cause a little back and forth indigestion, but not necessarily derailing the overall up trend that would continue for a few more years. something to keep in mind in terms of whether it's going to be an all boats being lifted by the earnings tide or get more selective. >> it's definitely an interesting thing to debate. it feels like, at least until recently, valuations were -- and we had a number of folks who talked about valuations for equities and they were looking particularly stretched then you saw this gangbusters earnings season. it was like earnings was catching up to the price

now what and what does that mean for the trajectory on a day we're talking about record closes again for the s&p and dow. >> exactly the question, especially going into next year because made the point where the normal pattern is earnings at the -- earnings forecast at the beginning of the year are too high and have to be revised lower and companies beat the lower bar. right now, we're in a year when the bar was way too lowto begi with if we're reverting to the normal pattern, we have to be sensitive to the absent valuation. one final quick point. each peak has been higher than the last why? companies have gotten really good about managing expectations and making sure they beat their numbers. >> there you have it mike santoli, thank you. up next -- the recovery on main street as the delta variant and labor shortages weigh on sentiment. the small business association is speaking out. the sba administrator on how the agency is going to aid businesses in need that's straight ahead. and a quick check on virgin

galactic finishing the day sharply lower. it's lower on the week as well on the back of a downgrade from morgan stanley find out what's behind that call at cnbc.com/pro. we'll be right back.

welcome back let's get a check on this afternoon's biggest earnings movers ebay reporting mixed results missing on revenue those shares are down about 1.5% sonos soaring on a beat, though, across the board those shares up about 7% bumble stock popping on mixed numbers. the dating app issuing stronger than expected guidance still under a little pressure. and lordstown motors reporting a slight loss. even though, that stock moving higher up about almost 4% in the after-hours trade. wilf >> time for a cnbc news update with shepard smith >> california is the first state to require all teachers and school staff to get vaccinated or submit to weekly covid testing. governor newsom in california says the mandate from kindergarten through 12 schools is to assure parents that the state is doing everything it can to keep students safe. the california department of

public health estimates 40% of kids in seventh through 12th grades will be vaccinated at the start of the year. pacific northwest getting a blast from another heat wave wildfires across that region fueled by temperatures expected to soar into the 90s and triple digits this one stretches across the nation more than 100 million americans across 34 states under some sort of heat warning right now. and in afghanistan, the taliban have now seized three more provincial capitals and have taken control of two-thirds of the entire country. the speed of the taliban's advance raising big questions about how long the afghan government can maintain control if at all. according to the associated press, the latest u.s. intelligence assessment says the capital of kabul could be isolated within a month and could fall to the taliban within 90 days. tonight we'll go to kabul to speak with a reporter there who says the fall could happen much sooner than that on "the news"

right after jim cramer, 7:00 eastern, cnbc morgan, back to you. >> thank you shepard smith small businesses are still struggling thanks to the pandemic kate rogers caught up with the sba administrator isabel guzman about what the agency is planning to do to help kate >> morgan, the administrator said delta is weighing on some small businesses as those businesses look to get back to normal that's something we've seen in our own recent polling as well take a listen. >> there's optimism broadly, but still some concerns, especially with the delta variant that there are uncertainties on the horizon that could limit their recovery and resuming. which is why we've been so focused on trying to continue to get out billions of dollars in relief to our small businesses and position the sba to be part of their team to support them. >> we also talked about potential additional relief for restaurants with that important

program now tapped out >> $28.6 billion in funding. we were able to disburse it it over 100,000 businesses across the country. the demand was 2.5 times that amount there are still restaurants, food and beverage businesses out there who need support they were the hardest hit and are often times going to be the last to reopen in communities. yet they define so many of our main streets >> she declined to comment on what congress may do in termed of replenishing that fund but there's an ongoing push to further extend aid to these restaurants as covid cases continue to climb across the country. we've got an earnings alert from open door kristina partsinevelos has that. >> open door is a digital platform that works on residential real estate. they buy homes and flip them with the earnings we did see a double beat. a narrow loss of 24 cents a

share. that beat when analysts are expecting on revenue of $1.2 billion. the company also had strong guidance for q3. they said, quote, in their news release that they are operating at a second half revenue run rate that is on track to meet their 2023 target so they also said, too, they really started to snap up a lot of homes in this past quarter. they acquired more than 8,000 homes. that's 136% increase compared to the first quarter. it seems to be a lot of people are going on a trend of buying and selling homes all online and the stock up 22% wilf >> kristina, thank you after the break -- we're talking the state of investing the chief investment officer calstrs will join us with his take on the delta variant. plus the key thing he's looking for from the fed "closing bell" back in a couple.

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posted those double-digit returns, i wonder what you think about the markets here as stocks seem to be climbing, this wall of worry uand yet record high after record high after record high >> isn't that amazing? just the last ten minutes of coverage you ran through the litany of concerns shepard talked about the potential fall of afghanistan and the impact of the delta variant. house slipping and on the other end we talk about all-time new highs in the market. we have to recognize the market is not focused as much on the virus as it is on earnings and really on the fed. >> so in terms of the fed, we've been getting quite a bit of commentary from fed officials. there's increased talk about taper. what are your expectations over the coming months, and how does that play out in equities and other markets? >> morgan, i've been saying for a while you have to pay attention to the 10-year bond. that's been the key.

it hit a high, it started at 1.70 back in february. now down at 1.35 and really, it's -- i think the fed officials are talking taper because they've got to get that out of the market. they have to get the market used to the word. it will depend on what powell says at jackson hole at the end of the month and what they say in september they've got to start talking about tapering and then eventually in 2022 they'll taper. otherwise the market will react vileantly and we'll get that 5% pullback that rick santelli said people haven't seen in a long time >> so you don't think there will be tapering at all this year we had very clear talking about tapering today from kaplan on cnbc with steve liesman and he's done it with us on "closing bell" before that as well. the implication from him is tapering happens this year would that derail equities >> you know, i think if it did

happen, it would people are more focused on powell and exactly what he is saying we've seen that before you get some dissention in the open market committee and that's good whether it's planned or not, i don't know but they have very different perspectives depending on where their district is in the country. so wilfred, you'll see them talk about it so the market gets used to the idea. it's all going to come down -- today's cpi print was a nice low number oh, thank goodness what about next month? what if this month gets revised? personally, i think inflation is real and here. i'm feeling it other people feel it but is it transitory jay powell has his finger on the pulse of the market. let's pay attention to what he says i don't think they'll start tapering because it's so uncertain on how we come back and how we transition back to full work. we've obviously done really well vir virtual. look at our performance. 27% off the charts morgan, you gave me a passing

grade. i think we get aaa grading for that but it's the fact that we've been able to add value working virtual. the team has performed fantastic. how do we all do when we're partially back that's going to be a big question and -- >> chris, over the years we've had conversations about -- you've been very outspoken about about things like facebook, data, protections there, privacy and some of the governance issues there esg in general has been a big topic for you and for your funds as well. as the sec for better or worse looks to actually better define and rein in companies reporting around esg topics, how do you think about it >> i think more information is more helpful for investors we're a big proponent of seeing the sec mandate some level of reporting. we can get into a big debate about esg, what does it mean

is that investment, investable information or is it just anec anecdotal? i think it's future investment information. it literally belongs up there with the financial information because it's more forward looking. it's talking about risks to companies in the future and that's what i care about so i'm glad to see it. we're pushing it we live and breathe esg. there's no question about it in every segment of our portfolio because we think it's looking at business risk into the future. if you get rid of the lingo and focus on business risk, that's what management is looking at. cyber is a classic example that should be reported to investors so we know if they're paying attention, doing something about it >> chris, good to see you as always thanks for joining us. >> my pleasure thank you. up next, a triple dose of big earnings on deck what we'll be watching out for tomorrow when "closing bell" returns. mobile app

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it's taken a lot to get to this moment. ♪ grew up at midnight - the maccabees ♪ dreams are on the line. you got this. refresh... it all, comes down, to this. ♪♪ welcome back shares of wendy's popping on the back of earnings jim cramer caught up with the wendy's ceo and got his take on the company's quarterly numbers.

>> our lunch and late night day parts fueled our growth in the second quarter as we lapped over some of the challenges that we had last year during covid digital and breakfast continued to fuel and support our business growth so what we're really seeing is a lot of leverage across our p&l bringing in more customers we're seeing frequency of customer visits improve and we're trading folks up into our highest quality, most profitable products >> so what i want to know is what happens to all that food right there displayed in that shot who gets to eat it don't miss the full interview with the wendy's ceo tonight on "mad money" at 6 paump eastern p.m. eastern. >> you are not the first person on "closing bell" to bring up "mad money" gets much more food delivered to their set than we do key earnings on deck investors will be watching for numbers from baidu, air b.n.b.,

disney, sofi and many more i guess disney's the key one of focus there that most people will be looking at what are the key things you'll focus on tomorrow? >> for sure. you know, there's been a little bit of back and forth about disney+ subscriber growth. it seems like people got a little over excited for a while. it's pulled back the stock has kind of held in okay but it's not really been a big up side tde driver since tht huge income push not a big market mover after the cpi. it's going to inform how people think about profit margin, outlook, things like that. right now we are in earnings -- options expiration week. what typically happens is it kind of holds the margin in a narrow range and a lot of movement beneath the surface. >> on the heels of our parent company, comcast results and what parks are doing as that reopening recovery story plays out it will be key to watch in disney, too. anything else you're keeping an eye on >> no.

it puts a bit of a book end. disney because of the fiscal year seems like it's the last big one. palantir and year one because of the earning. that hasn't been that disruptive buzzy ecommerce type sector. it's not been the up side driver. >> pal loantir. that does it for closing"clg be bell". that does it for us. "fast money" is up next. - [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.

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live from the nasdaq market site overlooking new york city's time square. tonight's lineup tonight on "fast" a rate reversal 10-year yield's dropping where are they headed from here in we dig into the charts for some answers we have eyes on lordstown, sonos and ebay the team is digging in on the numbers. red flag on china. the headline that caused one of our traders to go short. where he or she is putting their money right now. we