by one of the points, i think it was peter anderson, it's not easy right now it's more complicated and more nuanced back then, when everything was taken off like a rocket. >> and first you were chasing the rebound, a state at-home reopening trade and now it's a big question mark. thanks for tuning in, everybody. that does it for powell"power l" "closing bell" starts right now. thank you, kelly and tyler welcome to "closing bell." nasdaq under heavy pressure, the dow off its lows, which were down about 500 earlier. >> and a look at what is driving the action today consumer discretionary by far the lowest performing, declining 1.1% retail earnings fro home demo

and walmart came in under expectation, and investors remain focused on the fed as more official talk about a taper timeline yesterday on this show, eric rosengren said he would support a september taper announcement if on data continued to come in strong. we have a great lineup of guests to hef you navy gatt this, as the major averages are in jeopardy from turning in their worst day. >> let's get, first of all, to the market action. bob pisani has a look at the movers for us. and josh lipton is at the nasdaq markets. scott ramm will join us to break it all down. >> it's a question about the consumer how much of it will change consumer behavior. we saw weak retail sales, weak

consumer sentiment, independence kind of some weak china numbers. it maybe be a global phenomenon. how much is slowing down the recovery that's the question, and that's not clear right know let's look at the travel names they're not great indicators frankly some of the big travel names, have essentially been on a down trend more importantly i want to look at the consumer discretionary part home depot had excellent numbers overall, and it's been caught up in the peak everything store story, even if it should be a beneficiary if people start staying home more. back to school is uncertainly. the builders like len noor, some of the restaurant companies down, not certainly what the consumer impact will be. terms and industrials, same situation here they essentially topped out in may, have been slightly

sideways, trending downward in the past few days. they would be greatly impacted you sigh caterpillar also topping out about then what's been holding up in predict reply pharmaceutical are doing well, defense names, food names are doing well goldman sachs, for example, will they lower their growth expectations for the second half of the year, based on what we're seeing, changes in consumer behavior in that's what i think the market is trying to sniff out. >> you're already seeing that, bank of america tracking off the weak are retail sales. so they're coming down, but constituent pretty hot number. josh lipton is here with a look at the biggest movers of the nasdaq. >> let's sayers with some of the big tech names like amazon, falling in today's trade, down

about 15% from the 52-week high, now negative alphabet also in the read. keep in mind, of course, the run on this one talking about 55%. facebook feeling some pressure, though, as well as alphabet. nvidia, applied materials, are all lower. some say expectations are elevated there, with that stock up about 50% this year, so that far outperforms the smh, the etf that tracks the chips. chinese tech names buy baidu, also trading lower back to you all. josh lipton, thanks so much for that let's discuss it all with scott wren of wells fargo. thanks for joining us. what's your initial take on the pullback >> i think it's all about growth bob hit the nail on the head whether you look at china,

homebuilder sentiment, retail sales, even things like a tiny country like new zealand basically shutting down over one covid case, people are worried that there is some type of issue here with the growth obviously the market has doubled in 15 months there's a lot of good news priced into this market. so, as we just hit new record highs yesterday, i think when you see a little uncertainty out there, you'll take some money off the table. i think that's what today was all about. >> are you telling your clients to buy the dip as you said, it's not much of a dip. >> it's not much of a dip. to be honest, we would be happy to be a% or 7% pullback, or something like that, because we see it as an opportunity our earnings estimate for this year is $200 that might be conservative next year is $220.

so while they growth estimates may be coming down in some parts from some of our competitors, i still thing i'm probably going to have good earnings numbers out there that will support the market we're going to continue to make progress on these vaccines the fed will remain easy we'll have plenty of fiscal stimulus for us, we want to lean into this recovery, and we are buying on dips. as you said, after the run we've had, that's not much >> scott, some are wondering if this has to do with the fed timeline for tapering, which is coming into clearer focus, and still hovering around the fall, september, october, but if that were the case, wouldn't the ten-year yield being going up, not down, if there was truly a taper tantrum? >> i don't think there is going to a taper tantrum the market is well prepared for

this even some of the lower once, i mean, should the fed still be in here buying $120 billion worth of bonds we don't think so. we don't think anything is going to happen at jackson hole. we do think we'll probably hear a timeline at the september meeting, but a few months here and there, the bottom line is we'll see a tapering process start either late this year or early next year, and it's probably going to be strung ute over the course of 12 months so i think realistically, if you take into account what's going on in the-to-economy, the global economy, that makes sense. so a few months here or there, and really, as far as yields go, you know, you can't make the argument that people think that the fed is going to step in here, it's going to get a little tighter sooner, though i hesitate to use the word "tight." the food will be off the accelerator a bit, but it might

be pressure bond yields, you know, to lower growth. it would be more of a headwind which could imply possibly some lower growth i think yields should be higher, don't get me wrong, but i think the rationale that the rates go higher, i'm not sure that holds water all the time >> scott, if everything did fall 5%, what would be a top sector pick to buy on that dip? >> our game plan, even though over the last two other three months, the cyclicals and small caps have lagged after a big run before that. so what we want to do, wilf, we want to continue to step in. we like the reopening, global cyclical play, we like energy, materials, industrials, financials about the only pure growth sector that we're overweight now on are communication services.

we're equal weight the technology sector. if the market gets to where we think it would be, around 4900, it's these more cyclical laggards that we have interest in so we want to take advantage of that relatively underperformance that we have seen. >> consumer discretionary at the bottom of the heap today scott wren, thank you for joining us. >> thanks. after the break, home depot, the worst performer on the dow, shaving about 90% off the dow itself, despite a beat this morning on edges and revenue we'll talk to a top analyst whether the drop is justified and whether it's wise to buy the dip. you're watching "closing bell" on cnbc.

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stocks getting hit pretty hard today the dow is down more than 300 points it was down 500 at the low of the day. home depot the worst performer, shaving about 90 points off the index. the company did not provide a full-year outlook due to uncertainty around the pandemic and noted fewer customers visiting its stores. joining us now, morningstar's jamie katz kind of a triple whammy for home

depot. a sales miss, and retail sales coming in worse than expected. what do you do with the stock? >> from our vantage point, we thought the shares were a bit overheated no while, and we think normalized earnings is significantly lower, so from an investor perspective, we would be a bit more cautious about initiating positions on shares at this point we think it's a very good business, there's a lot of cash generation, and understand why some investors may want to hold the position, but as far as building a decision, we're on the sidelines at this point. >> what happened to everything consumer is doing well we saw walmart, very strong, so much fiscal still his, the savings rate was really high, they're starting to spend it, get out of their homes, getting vaccinated shouldn't home depot be a

beneficiary? or is that pulled forward? >> i think suv two different factors. first, people have been liberated from their home. they're spending on things like travel the tsa numbers have been exceptionally strong in recent weeks. and then, you know, there's been a shift and home depot sort of articulated it today that the -- has come back at the expense of do it yourself, because the do it yourselfers are back doing other things i think there is a rotation maybe in who is spending at home de depot, and what projects are being undertaken you say kitchen and bat coming in strong and the things for the diyers

more broadly, when you see the retail sales number, was that a shocking neck tiff surprise? or could it be in line with the thesis that the consumer is super strong which you look overover year, defined precipitously, but the number is still decent, so the consumer is constituent strong when you strip out autos and gas, the number defines slightly less dramatically, so i don't know that it's all dour. obviously we have unemployment at very low levels we have consumers spending pretty high. i think housing has been disproportionately impacted by existing home prices going up. i think it is last few months that's been in the mid 20% range. so, rotationally people are

spending in different ways, and we're lapping different numbers over the back half of the year i think what we are up against, looking forward for the rest of 2021 is a really difficult backdrop to grow both operating profit and sales on top of what was delivered in the year-ago period. >> so you have a pretty diverse coverage list. the toy makers, some of the e-commerce names, where do you want to be within the sector >> i think we have some really interesting rules in names like maribou boats and polaris, both of which are trading in significant undervalued territory. there's strong consumer demand it caters to the outdoor lifestyle, so there's a lot of consumers interested in participating in that part of, you know, the outdoor landscape, and more and more we're seeing

products come out at accessible price points so it supports shipment demand for a much longer period of time we like the power sports space is this a buying opportunity i think we would be cautious at that so we do think the valuation is still a bit rich where it stands now. >> jaime katz, good to see you thanks for joining us. thank you. still to come on "closing bell," we will, of course, have the close of this market, 42 minutes or so left of the session. we're down 4% on the dow, well off the session lows, which was 500 or so. up next, chinese internet

stocks under pressure today on renewed concerns as we go to the break, some of top stickers, tesla on the list, now down around 8% so far this week. we'll be back here on "closing bell" in just a couple of minutes.

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welcome back to "closing bell." plenty of red on the screen, of course, today, but we are significantly off the lows of the session. here's a look at the s&p sector map, consumer discretionary seen the most -- of course, we're just discuss that. industrials, communication, all down more than one 1 one sector holding on to gains the dow at the moment down 343 >> meantime, in china, tech stocks are seeing renewed

selling pressure, as beijing steps up its regulatory efforts. deirdre? >> no one knows when the pressure from beijing will ease. china is now set to pass one of the world's most data privacy laws proposed measures will require tech companies to minimize data collection and obtain prior consent, even bans platforming from using data, or, rather, algorithms to influence consumers choices. so the public is increasingly could you will for more protect. where is it going? well, in the hands of the government the usual names, they continue to sell off today. also worth noting, tencent music entertainment, revenue fell short of estimates, though did see a big increase in paid

subscribers. those shares are down. didi, though, is in the black today, after some investorsing decided to way in. despite continued pressure back to you. >> some bargain hundred dollarsers may be in there when you talk to investors about this issue and folks here, i goes we're all speculated as to china's ultimate goal, but what do you hear their end game is, when it comes to these u.s.-listed tech giants based in their country? >> i speak to investors over in asia as well i lived there for some time. really, they don't have much of a clear idea than u.s. investors

either, because the ccp party in beijing, they don't know -- it's hard to tell motives first it seemed political. probably there is some part of that, but this whole idea the data, bringing it into their hands before it's too late from the tech giants, that is driving this move. it started with jack ma and his comments on ant financial late last year, and it's led to this continued crackdown. it's all of that uncertainty for investors here or over in asia don't know where that's going to end. xi jinping's china really wants to control this part of society, of the tech giants, and they believe it's better in their hands than in the big tech giants. >> some sabre rattling about taiwan today as well still ahead on "closing bell," morton's jeremy siegel joins us on, the russell 2000

down sharply today it has been for several weeks now. we're going to back to bank of america's head of small and mid cap strategy and we have a check for you, yields relatively tame today the ten-year hovering around 1.26%. we've had a string of data misses from consumer sentiment to retail sales today. new york entire manufacturing yesterday, home builders sentiment, some concerns about growth "closing bell" will be right back this is the sound of change from pnc bank. it's the sound of low cash mode, giving you the options and extra time needed to help you avoid an overdraft fee. low cash mode on virtual wallet from pnc bank. one way we're making a difference.

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just about 30 minutes left to go. let's check in on individual market movers in this final half hour of trade? the firm says 23andme is unique and not easily replicated. the cloud-based company earning strong numbers that stock is up 24% here's a check on the loser -- home dedepot, boeing, caterpillar. still the worst day since mid july, about a month or so, but off the lows, which are down 500. >> yeah. still a% or so from the record closes. time for a cnbc news update

with rahel solomon. >> hello, everyone in california, the dixie fire is getting new life from dangerously windy weather. warnings call for wind gusts up to 40 miles an hour through midnight the fire has burned more than 6,000 acres you now approaching susanville where some 50,000 residents have been told to get ready to evacuate. some schools are requiring athletes to get vaccination nated or undergo weekly testing. last week chicago's public schools man at a timed teachers and staff get vaccinated or be tested regularly. david sackler said they will not pay billions into an opioid legal settlement unless they are shielded from future lawsuits. the bankruptcy trustee, nine stapes and the district of columbia object, because it would give legal protection, even though noner declaring

bankruptcy you're now up to day. >> rahel, we have about 29 minutes left to go before the closing bell here is where we stand in the market, down about 324 now on the dow, nasdaq taking the brunt of the selling small caps getting slammed again. the only sector in the green right now is health care, up a percent. consumer discretionary is the worst. straight ahead, s&p 500 still up around 18% of the year. our next guest is predicting it will end the year much lower . plus katie stockton. and as we head to break, here's a check on roblox, reporting weaker results the ceo will be on "mad money" tonight. that would be a must watch we'll be right back.

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faster. vmware. welcome change. america/merrill lynch mid cap. first question, what's your take on the current sell-off today, and why small caps are so much in the eye of the storm? >> thanks for having me. i think we were in what's

normallying a seasonably weak period, in a backdrop where the market has looked extended, when you look at measures like valuation, optimism, how much good news is already priced in so we've had more of the view that the market is more likely to end lower than current levels there's concern around the delta variant and growth, so that's been a drive of the market from recent highs there's certainly risk that will impact going forward we have been of the vie that value should outperform growth both much those have been correlated to covid cases, so certainly if we are to see a big resurgence, rather than an improvement in this pandemic, that could be a risk to some of

the views, but if things start to improve again, we would expect the styles to outperform their trends. >> do you jump in and buy them now on the diplomat, and those sectors and styles that have pulled back already? >> look, i think it's tough, we don't know what's going to happen, but if cases are to tick lower here, which a loss of things or teams are looking at, do suggest well sees a decline in the coming months i think there could be a buying opportunity for some of these styles, in terms of small versus large, and, you know, really i think it's important to continue watching the data, for example, small versus large, are highly correlated with like measures of small business, optimism, a lot

of these we have seen a month or two where they have ticked down a bit, so, you know, we want to watch to see if that's a persistent trend, and we're seeing a broader slowing in terms of the overall global backdrop, or whether we could see, you know, reopening within the u.s. continue. small caps are obviously more exposed to services spending we have seen a shift there from goods to services. you know, the good news is small caps haven't been really reflecting a lot of the recovery we have already seen they're still trading at a 15%-plus discount. so, from a valuation perspective, that's one area where a lot of the good news hasn't necessarily been reflected from what we have seen so far. >> no, it's been large over small, jill, if you look at the performance. small caps are 8% off the highs. s&p are less than 1% off the highs. small caps have not made a new

high since march so what does that tell you about the economy, if small caps are the domestic sort of heartbeat of the american economic >> you know, i think more recently some of the performance that you have seen for example, today, you are seeing these concerns. prior to that, though, interestingly, when you look at small caps' performance in july, it was a bit of a different story, that the negative returns we saw, it wasn't necessarily driven by the economically sensitive areas. the biggers contributor to small caps' negative return was actually health care you know, there we have seen some more idiosyncratic, negative catalyst this week, so interestingly, jongi don't thin it's been a more recent trend, kind of a shift you are seeing there. so i think there's external

opportunity, especially if you're a long-term investor in small caps, if we're at the start of a longer-term cycle, if we suffer volatility, the relative valuation backdrop and magnitude of underperformance of small caps, so this could be, you know, last year could be the start of a new outperformance cycle for small caps so you know, the cycle might not be over we really have given up that outperformance this year, so important to. thank you for joining us, jill we have a news alert on airline mask mandates. phil lebeau has the details.

>> we have learned through industry sources that the biden administration plans to extend the man dade for face masks to be worn on airplanes and in airports it currently is supposed to expire on september 13th it's going to be extended all way to january 18th. we're not sure when the biden administration will make this announcement, whether it's later today or the next few days, but we have talked to multiple sources in the airline industry, numerous carries who say yeah, we've been notified this will be the plan face masks required not just through september 13th, but all the way through january 18th because of the spread of the coronavirus, the delta variant, that's the main reason why you're seeing the face mask mandate being extended. airlines down about 2% to 3% phil, thanks. homebuilder sentiment falling to the lower level that story and the final moments

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she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. we are now in the "closing bell" market zone, commercial-free coverage and today we've gotened and katy stockton very good afternoon to you both. stocks are sinks today, but off the worst levels the says was down 505.

first question to you, katie, anything that stands out in terms of trying to decide if this was a one-day move? >> i think it's probably more than a one-day move, but we're not see a lot of breakdowns in this pullback, but i think we should look at it as a retracement. when i look at the s&p going back to the late july low, it would be up 6%, so some kind of retracement is natural once you have overbought conditions in place for some time. i think we're seeing a reaction to those overbought conditions we do expect a test of the 50-day moving averages by both the s&p 500 and the nasdaq 100 they're just under 2% below current levels before this pullback matures >> craig, it's been weaker retail sales today

home builders sentiment. the consumer sentiment, anything giving you cause for concern amid the booming economy otherwise. >> with the consumer, we have to wait a bit, all right? so the dropped to 1.1% was somewhat to be expected as we rolled off prime day, and stimulus put up diminishing returns. that's a sentiment driven measure. so, it bears some watches. certainly the delta hasn't been del tier was to the market we saw pandemic-level louse it

certainly has -- we still have 10 million openings last month, only 9.2 million, who are underemployed and looking for employment so it's become very different for them to present the argument to keep easing monetary policy in order for the help of the labor market. >> walmart raising its full-year forecast, but home depot declining to give one. another diversion point between

the two dow pongants, walmart's comparable sales beat expectation, but home depot is disappointed, even though the metric grew on top of the 25% growth in the same quarter last year for home depot. interestingly for walmart, its digital business just contributed 4% to the comparable sales growth this quarter, compared to a 60% contribution last quarter now, july retail sales did fall a little more than 1% from june, month over month, according to the commerce department, but did grow kneely 16% year over year it looks like some deceleration in the broad look from the government, but year over year, pretty strong. again, consumer strong, expectations high, you've got to really hit it out of the park to be a winner for investors. >> courtney reagan, thank you. katie, what do you look at when you gauge the health of the

would you pleaser? as tesla and amazon, xrt is pretty much down today, but holding its highs. what should we be following? >> you know, i'm watching the ratio of xrt, or retail etf. you'll see in that ratio it has broken a short-term support level. the weakness in target, these reactions are negative but really just a short-term pull pullback. >> greg, what's your take on those consumer names, either of

those two specifically or more broadly. we've had retail sales confidence, and whether or not it's a significant concern. >> right, i agree with katy. in the short term we'll see the consumer detier yale 7.5 million people are coming off of generous unemployment benefits, but that deterioration will not be spread equally at the top end, you think you'll see some protection, and will continue to share gates, at the end of the day, as i said, when we see people come off the generous benefits the purchasing power will be vastly decreased offside fulfillment, channeling i think you've seen in walmart's

results and targets before, that this is starting to bear out so a tart had 20% top line, which blew out consensus walmart, as we said, basically killed on every metric they doubled expectations at 5.6% so for the second quarter in a row, we had for upgrade their guidance >> we saw the weakest sentiment survey in about a year, diana olick. diana? >> the street was expecting a small drop, but not five points on the monthly index that sent the home construction eff down around 3%, along with

big names lie len nnar. the price of lumber has come down dramatically, down over 72% from the peak in may, but other availability of other materials are still way up that's trickling down in the i remember of stick are shock, which of course is hurting demand for those homes back to you guys. >> thanks so much for that katie, i wonder what you've been making of either of these stocks or commodities like lumber. >> you know, it's a corrective phase. they had a nice relief rally and now that rally is losing team. same it's a broad-based top-down move

and that's very northerlial. pullbacks tend to leave no stocks unturned, if you want to say it that way, but the home builders look bullish to me. so i would be considering adding into the weakness that's associated with this top-down move and airlines are all falling 2% to 3%. casino stocks taking a leg lower, along with other travel names today. you still think there's still earnings power >> absolutely. i'm going to do a rare thing here, admit i was wrong on this a year ago my thee would see a quicker recovery as the asian markets

were much more progressed that thesis was backwards, expected weakness in vegas, but vegas has been particularly strong we zoor saw quarterly revenue up 100% sequentially so i was wrong i was concerned about the bookings, and put up a record group of things, and are meaningfully above the 2019 level so, yeah, the normalized earnings power is $3 a share in earnings, $3 in different. the trading 10, 11 times of ebitda, so i do believe asia will be a sort of strength eventually i've been bryced at how strong the domestic market has been i only expected that to appear

in the regional casinos that they owned so, yeah, i think this is a great opportunity, albeit we may get as asia gets its vaccination rates back up. katie, you've been looking at the technical support levels for the main ark etf of late? >> yeah. i would never bet against cathie wood, but the ark-k fund is testing the levels it's just shy of $115. if it's broken into more decisively, meaning a couple daily closes beloaned that support level, which is derived from something called the cloud model, that would increase risk in the near term, but the next real major support back at the may lows

and to me, they do rally, the high betas, we always try to capture them on the up side and down side, but really there is downside momentum behind that space. we don't have signs of downside exhaustion yesterday back to the casinos, that's where we're seeing it. the oversold have developed, but, of course, they still haven't yet see the momentum up tick a very simple lag when those start to turn up, then you can feel more comfortable.

>>. the dow is down a little more -- we're rallying a bit, down 288 points. i say that, because we were down more than 300 for the last hour of trade we are still seeing big declines in names like home depot boeing a big laggard but there's some winners out there. you are seeing broad-based warrickness. now it's consumer staples, real stade and utilities. and when there's a bit of nervousness, but there's buying activity going on. you've seen declines in big

names like amazon, facebook, nvidia has a weak performer this week, which is going to be key the do you down about 0.8 -- [ bell ringing ] >> -- coming off the record highs. welcome to "closing bell." sara just mentioned the dow clowning down 280 points, well off the session lows health care led them up 1% coming up, we'll have much more

on today's sell-off, and whether it could be the start of a larger pullback when we're joined by wharton professor of finance, jeremy siegel and phil cap rperelli joins the conversation as well bob pisani, and josh lipton also join us bob, we start with you. >> the question is how much is the delta variant actually changing behavior. >> as we saw today we saw retail sales a bit weak, and the china growth numbers were not particularly strong, either. so if it's having an impact, the question is how far does it go

caesars was, oh, $90-some, but a lot of these stocked tapped out in may or june same with the consumer discretionary group gap. lowest level since march, but it too topped out back in may you can see the decline of about 4% a lot of the clothing stores were down. some hold builders were weak as well same situation with the industrials. again, very similar chart patterns here. the top of the recovery market, the reopening market was in may for most of these big industrials, materials, consumer discretionary stokes more the the big material industrials, free port, nucor, all down about sara got it right. health care has been an up trend for a while. all of these stocks have been

very, very strong for the entire month of august. what does it all mean? not a dramatic move. 15 too 16, it was 17 to 18 throughout most of the day, and was as high as 19. this is very typical of the mid dan subtly flurries of activities, then it fades away this is why people buy the dips, because you don't see real permanence s&p 500, 1% off the highs, so the guy is, is concerns about the variant worth 1% decline most people say yes. many would say a lot more than that sara >> we're starting to see it in the u.s. data a bit, lockdown in new zealand over one case? josh lipton has a look at what's driving it lower >> sara, big tech names are trending lower here.

alphabet also in the red the run on this one is up about 5% so far. facebook feeling pressure as well worst day since july 29th, though like alphabet, enjoyed a nice run this year also check out paypal, down now about 8% have a look at the chips, the smh, worst day in a month. under the hood of that, names all lower. nvidia reports tomorrow after the close. back to you all. j josh, thank you very much. greg, was it encouraging you saw some dip buying with some of the sectors turning green? clearly this is been a mantra and feeling on wall street that fed will still be easing the policy we still have a ton of stimulus

out there. >> right i don't know if i was encouraged or discouraged i think we'll be volatile for at least the next couple weeks. we've just gone through an earnings season where 85% of companies that report beat their earnings -- or beat the consensus. that's been my thesis for a while that consensuswas under-appreciating and overestimating the power of the companies. when i looked a couple months ago consays was 60% or 70% so, you know, it's an earnings season we expected, now the market is asking, what's next? now we're hearing rumblings, the market will look for some clair about that at jackson hole, and as i indicated earlier, it's become almost indefense iible to make an argument that easy monetary policy is still necessary to bring the labor

market back to health. absent a couple data points in june and july. we have 10 million -- a report 10 million-plus job openings so i think we're going to see this for a while i think we'll see some back and forth until the market feels a strong direction from the fed as we are in and out now doubting they can continue this current posture. >> phil, we were discussing earlier the state of consumer in light of consumers confidence. do you still think the u.s. consumer is very strong? >> good to be with us here today, wilf. the short answer is yes. we believe it's been in the best shape they have ever been in if you look at what's gone on in the stock markets, and also where you look at the jobs market you know, the jobs market is

really, really healthy right now. if you get the u.s. consumer right, you can get growth and earnings right you add on on top of that, wilfred, how accommodative financial conditions are and with what we know now about what we're seeing in delta variant cases, we would agree with jerome powell, what he said, that the u.s. economy is resilient to each additional weight, so all of that of stocks versus bonds in the portfolio. you're not worried about financial conditions changing, phil, if the fed continues to taper in the coming months >> i love this question. i harkin back to 2013. tapering isn't tightening. unless we're wrong about inflation not being transitory and inflation having a five handle next year as well as this

year, and if the fed moves up the tightening regime -- not tapering, but tightening -- financial conditions will stale very, very accommodative we're trying to delineate with tapering, which is priced in and we're distinguishes that from which we still believer is a nice runway for financial conditions >> quite a big jump in the vix today. what do you make of volatility levels >> of course from a technical perspective, you do tend to see also short vix spikes while the market pulls back. that's very natural and normal behavior the vix did clear the 50-day -- or 20-days moving average pretty distinctively. we'll probably see more of a volatility spikes in the coming,

say, week or two we're making the assumption this will look like other pullbacks have year to date. there are no big, scary sell signals. really at this point it's a short-term issue you do tend to say little knee jerks out of the that vix. sentiment, however, from a bigger picture perspective, you would think with the major indices up near all-time highs that people would be more greedy our xush rant, but they're not they're much more fearful now, so with that you tend to see more cash being put to work when you get these pullbacks. that helps contribute to the rye sillancy of the tape >> phil, final question to you how much of your view is predicated on fiscal stimulus.

i ask, because we did see signs that the waning effect of fiscal stimulus will hurt consumer purchases for big, heavy, durable goods. it's been strong there's also questions now, whether right or wrong, about what might happen to president biden's approval rating, the geopolitical fallout, and what it means for his agenda as he's trying to get another $4.5 trillion across the line the labor supply coming back into the market will fill the gap of the fiscal stimulus and the benefits that are waning even though the $625 per week is going back down to $300 on the unemployment ben fess, we're expecting, and the last labor report was a good validation of

this that that will backfill the fiscal side. as far as the agenda, i think it's too early sara, we don't want to base or fundamental growth story, or 8.5% growth story, or 5% story for the fourth quarter on fiscal stimulus we want to base it on a post-covid regime where people are getting back to work >> well, we've had trillions of it, though, so that's surely hel helping. we'll leave the conversation there. thank you all for joining us still ahead on the show, wharton finance professor jeremy si siegel, whether concerns will continue to weigh on this market after today's sell-off plus tilray shares are popping after announcing a deal with medmen, just moments ago.

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a convquick check on the markets. all three much the major averages down. health care the best sector, consumer discretionary the worst. tilray just announced a merger with medmen it has operational locations in about six states, including california, massachusetts and florida. joining us in a first on cnbc interview is tilray's ceo irwin simon. with shares up 7% after hours. talk to you about the logic.

>> medmen is known throughout the world. you know, they have gone through that challenges, but they've had a great turnaround, tom and his team have turned this business around there's $100 million that went into the business as a pipe, so there's a strong balance sheet today they have 25 stores, 21 licenses they plan to open up another five this year, so ultimately lots of good retail coverage they're in about 50% of the u.s. in regards to states what it does for tilray is gives us a great brand once legalization happens, it gives us potential to have a great company we can ultimately take into the rest of the world. canada, europe, there's opportunities. this is, you know, the start of

it >> i didn't realize the company was still around it was so hot years ago, people were calling it the apple of pot. it's a penny stock now, a shell of itself. so what happened to it and what's left? >> it went through challenges. i like challenges, i like turnarounds, and things that have great brands. today it has 25 retail stores. ultimately upon legalization, the opportunity of stores within a store. i hope to see a medmen someday within a target or a walmart you ask about cannabis brands, iconic brands, you didn't think it was around, but everyone knows that brand and that red bag. tom lynch and his team have done a great job in turning it

around here we are, with medmen 2.0 to take it to another level >> they're opening a store next to fenway park in the next few weeks, so i'm excited about it >> talk about the structure of the deal when and how close you were to buying it 100% this. >> well, i can't buy it 100%, because i can't own anything in regards to -- i had to get approval from the tsx, from the nasdaq to do this. i ended up buying the notes from gotham, who are great partners to work with i worked with michael and his team on this here, so ultimately today our notes will convert to equity, which will be one of the largest shareholders when that happens. ultimately upon legalization -- and you've got to know i believe legalization is coming, that i

was able to go ahead and do this i've been ask week not options why not invest in this company now i feel legalization is around the corner and, you know, at the end of the day, i see tremendous value here. >> is legalization around the corner senator schumer, you were on with us before the draft bill was released and then it came and landed with a thud all the pot stocks sold off. all the analysts said it's not likely to come to fruition anytime soon >> listen, sara, i think there is something going to happen 93% of consumers want legalization, so let's get out there and vote today it's legal in 37 states,

so something will happen within cannabis you know, from an adult use, from the medical standpoint, and there's so many opportunities where tax dollars can be prove into the coffers from cannabis, so something his going to happen >> i think there's still so many questions still out there. >> there's so many questions out there in regards to alcohol and medicines, but there's a lot of research that comes back today in regards to medical benefits in regard to cannabis. whether it's epilepsy, pain, anxiety, in cancer treatment, stuff like that. so, you know, you come back and say there's every medicine and drug that as side effects. alcohol has side effects cancan abyss has lots of benefits that's why there's such demand

for the products now with retail stores out there, consumers will be able to buy it. >> irwin, thank you for joining us it seems that the market likes the deal. >> thank you very much. still ahead, wharton finance professor jeremy siegel will join us. first a naeem of the highly anticipated nissen zed sports car, ahead of -- z, i guess i should say let's look at the shares of the big car makers we're ckn coleinesba ia up mut this is andy, my schwab financial consultant. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low

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z. i know you can't show us all of it, but just a peek. tell us why it's so important for nissan at that point. >> it's a culture. it's an icon, and nissan does z to thrill or friends, the sports car enthusiast, our employees, our partners, and so many people who are looking for a sports car. >> i'm sorry to interrupt you, we have a view of the grille and the front end. as introduce the z, such an iconic model, it comes when you and other automakers are stressed because of chip shortage around the world.

>> yeah. we are going to the nissan business transformation plan on one side we had the -- the second pillar for us is growth our growth is pulled by the near models in the market in this business transformation plan we are sticking to it the launch is so important, on one side we are taking care of the crisis, which is coming from the supply chain, but the other side moving forward we believe this crisis is not going to last forever. of course, there is clearly a

shortage at the moment, given the shortage in chips, why haven't new car prices tracked higher >> i would put it this way, the customers are getting more and more anxious about the supply/demand situation, but when it comes to nissan, starting from the launch of sentra, then it's quality of sales, and for nissan what we have done is because we shifted -- are paying the value, so as far as nissan is concerned, our net revenue, our transaction price per unit is increasing significantly, as compared to the average of the market, and this is main by done by the value which we are putting in our new cars.

you will see that soon the frontier, the pathfinder, all these cars will following the quality of sales, driven by the value. >> how 'execute is the chip shortage for you >> i would say this challenge will at any time however, we do see the improvement in the capacity of the chip manufacturer, but unfortunately, very recently we have seen a lot because of the pandemic i will say it's not about chip surprises, but i think we wish and hope that this world should come out from the pandemic very soon, just because of the safety of the people. we do believe that very soon we will be out of this. >> one last question, you were

the first when you looked back to the leaf or month the first, almost a decade ago, but since then many would look at the ev portfolio and say the market has passed you up. how do you catch up? >> yes, in 2010, they didn't ask -- why did we do it? electrification is not the objective. that should be the consequence of the customer choice here at nissan, we have to do four things to make the consumer choice easier and in front of eyes first, to bring driving excitement number two, to bring a complicated price point. number three, a total cost of ownership and cleaner environment. this is what we will demonstrate

with the fusion of experience and ten years of ev experience, and we are moving ahead. in jaap we are going to launch 4 40% of the market this is how we will electrify our portfolio of course, it depends on market to market. as we had, 40% of our sales will be -- >> ashwani, thank you for joining us c.o.o. of nissan phil lebeau, thanks to you as well >> sara, the only big question remains is what color the other half of the car is >> i know. i think it comes in multiple colors >> it's really a credit to

ca carlos ghosn, whoa had the foresight. we know who happened to him in the years since. quietly, stealthily going around >> quite dangerous let's hit the market after coming off the record highs earlier, we saw about declines of the dow and. >> we have just come off a very strong labor market report and the unemployment read dropped before half a% >> i think i would be supportive

of announcing in september that we are ready to start the taper program. great to have you back on the show, professor siegle do you that's weighing. >> i think they're all falling into place don't forget, september is one of the four major fomc meetings, is going to come, the major projections of the economy are going to come, and i think they very well tapering will begin in september. i think there's more things weighing on the market we know how far we've come, doubling since the pandemic,

lo lows is remarkable i would not be surprised to see a pullback we're in a very seasonally difficult time the end of august and september. that might be compounded by the fact we're hearing about sticker shot that many parents have seen it's been tied we may see super sticker shot when christmas tums because they're up 1,000%. >> so i think that there are some negatives that are building that would way on it in the near future >> so what's your call here? you're looking for a correction? >> i would say a pullback is usually defined a5%.

it's very heart in the short run. the stock, look at bonds and cash, not where you want to go at the present time. there's still value in the stock market, earnings are going to be super, but if you -- you know, your stock usually doesn't do very well, so a lot of that is built in >> i think the democrats will push it there. that is despite the, you know, certainly the political hit that biden is taking on afghanistan, but i think they're determined on that so there's a few things that i think will pause people to be a bit more cautious in the early fall i don't think there's any major correction on the horizon.

not with these interest rates and not with earnings continues to be strong. >> what sort of wildcards are you looking out for that could make you think we're due for more of a pullback >> i believe inflation will be much more severe than the fed. i think -- we had a bit of pause in the consumer price index last month. consumer prices again beat, i think that was like the sixth consecutive month on that. i think we're going to have some high consumer price increases on that i don't want the fed to panic and say, my god, wereally have to go full on. i think that could be a pull dp bback

but as i've said on your show many times, stocks are still a place to be so that's a worry about the fed, not about how i'm going to protect might haveself. bonds, cash, cds in the banks stocks basically keep up with infl inflation. >> just quickly, leading to a political -- at the present, is there anything else more to it that would warrant the markets pulling back could there be broader geopolitical fallout. >> yes, there could be, but that's longer term you know, worrying about increased terrorist activities, more influence on china, more

influence of islamic radicals in the area, seer it as a victory, i don't think that's a near-term figure -- something that one has to think about as we go into 2022 >> you've given us a lot to think about, as always thank for you joining us >> thanks. still ahead on the show, bill simon on whether the rise rt the covid delta varnt will hu retail sales and the state of the consumer. (vo) conventional thinking doesn't disrupt the status quo. which is why t-mobile for business uses unconventional thinking to help your business realize new possibilities. only one 5g partner offers unmatched network, support,

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time now for an update from kristina partsinevelos. >> the evacuation efforts should be helped by an agreement with the taliban to allow safe passage for civilians seeking to left afghanistan on the news, a talk with a top political scientist about the battle to gain favor with the taliban. in haiti, authorities say

the death toll from saturday's massive equal has risen to nearly 2,000, almost 600 more dead than previously reported. government officials briefly halted rescue efforts today because of heavy rains from tropical storm grace and in california, real estate hare robert durst facing crocks at the murder trial of his best friend. prosecutors are expected to grilly on what they say are dozens of lies he told on the witness stand. wilf, i'll send it back to you. >> kristina, thanks so much. up next, former walmart u.s. ceo bill aislensimon on what toc from target tomorrow find out what to expect tomorrow when it reports its

first earnings as the public company robinhood. we're back in a couple minutes ee commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

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let's start with walmart, first of all what did you make of that? >> yeah, i thought it was just a terrific quarter for them. they were able to cycle those really big numbers from the same quarter last year when basically they were the only ones open so it was really nice to see traffic coming back to the stories. i'm particularly impressed with their operating rebound, so i think, all in all, it was a really great quarter for them. >> when things settle down and the pandemic is fully behind us, obviously, as you already pointed to early in the pandemic, but a year or two afterwards, will they have been seen to take quite a market share lasting? >> it seems so their strength has always been grocery. it's still over 50% of their u.s. business. they had they grew market share this quarter the change announced earlier

where the snap program expanded by the largest number ever, will give them a tailwind over the next 12 months and change shopping habits. i think everything is setting up well for them in the u.s >> on the conference call they were asked about inflation, and the ceo said they were chartering vessels, securing supplies to make sure they have enough product does walmart get hit harder than others, because their thing is low prices, and that is how he compete? >> actually, sara, it's quite the opposite, when prices are moving in general, walmart does really well. they're able to hold down prices longer they're also to bring scales to things like supply chain, like bret said during the call today, because they have scale to be

able to do that. typically they can hold prices down longer in an inflationary period and raise them less they almost always take share. >> bill, in terms of the retail sales, and that consumer confidence as well, that we got recently, how of a major concern is that? is it a temporary blip to what is already a -- >> i must be contrary, because i read the retail report as very, very positive. it was a slight blip down in july, but still, if you look at a two-year growth from 2019 covering the pandemic years, 18% over two years, 9% compounded, retail hasn't groan that fast in a long, long time. i'm very optimistic about retail i think, you know, the bears today are going to regret their selling. >> one question on the growth in the walmart report, they only

grew 6%. last year, yes, they were up against a 97% increase last year, but we also saw amazon reporting lower than expected growth in online sales, i think only 16. that was a weak spot in the retail sales report. so what is happening with online sales? what does it mean in the coming months >> nothing i think it's phenomenal they kept all the sales they got last year plus 6% what has happened is the fill retail opened. the numbers were against virtually closed retail. so the fact that they were able to maintain or amazon grew 16%, walmart 6, with their anniversary everything closed, is just phenomenal i'm very bullish on that sector as well. finally what about fiscal stimulus, how beneficial is

walmart on the stimulus? it seems like a blessing for a lot of these retailers. >> it has been for a lot of retailers. walmart gets a disproportionate share because of the customer base i don't have recent numbers, i've been gone for a while, but it's a higher percentage of their market share of government monies than nongovernment monies anytime there's an increase in stimulus funds or programs like snap or wic, walmart gets a disproportionate share it's going to be a huge tailwind. >> the stock closed flat today, but has been a winner. bill simon, thank you for your perspective. >> you bet see you. tomorrow on "squawk box," target chairman and ceo brian co cornell. after the break, bill ackman's spac getting sued it may have been a major impact

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bill acman's spac getting slapped with a lawsuit claiming the company is illegal leslie is here with the latest leslie. >> at center of the claim is whether or not the spac pershing square is really a spac at all the lawsuit filed in the u.s. district court of new york alleges that taunting should be an investment company and subjected to the regulations under the act of 1940 versus an operating company which is what spacs are known as because the securities namely u.s. treasuries and money markets while awaiting a merger, the law contends that the spac should be subjected to stricker rules and the defendant's decision to avoid registering

the company as an investment company has allowed them to use their positions of control to extract compensation from psth, that is the ticker symbol for the spac and for amounts that violate federal law. pershing square believes it is without merit noting that it based allegations on fact that psth own money market that own u.s. treasuries as do all other spacs while they're in the process of seeking an initial business confirmation. the firm said it has never held investment securities that would require it to be registered under the act. so i guess the question now is if this court does determine that pershing square taunting is an investment company, what does that mean for the other spacs out there that do hold u.s. treasuries well. >> and that is a question on the the discussion that spacs were facing how much has the market dried up

f. feels like we're not seeing the numbers that we've seen in the year or in the last few months. >> it is a good question a lot of reaction to the regulatory pressures lawsuits have been filing up pershing trading 2 cents above the ipo price. but in terms of issuance, way down during the quarter. that took place after we started to see some accounting changes, the market for pipes as well this is private investment in public equity. these are some of the financing mechanisms for the merger. that has dried up. so all of these things is effecting the spac market. but still at levels definitely above where we saw prior to the massive frenzy in the second half of last year into the first half of this year. just down demonstrably from those levels >> leslie, even if they don't get found guilty, how much fees have they extracted so far for i

guess doing nothing. obviously the deal fell apart. >> yeah. it is difficult to say at this point in time. this case alleges that they're extracting $880 million worth of fees it is my understanding that the fees would have been extracted had they consummated a deal and now we know that they have signed that agreement to take a 10% stake in universal music group. they reversed that and decided instead to purchase the shares through their hedge fund so they're notyet acquiring those fees through their spac vehicle at this point in time. usually in those fees they get paid once a deal takes place a typical spac will get shares for next to nothing. and that is how you obtain that compensation but until a deal is consummated, you're kind of just looking for that target. >> leslie picker thanks so much. up next, robinhood shares have had a wild ride and now they are gearing up to report

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robinhood earnings on deck for tomorrow josh lipton has a preview. >> so let's take a look at this stock. it is up about 20% since making the market debut back in july but about 40% off the august 4th high robinhood telephone graphed what q2 will look like and they want to know how much is coming from stocks options or crypto and watch user growth and they should have more akin to a high flying tech company than a brokerage. could the company expand offerings in areas like digital wallets and expand internationally. that is what drives revenue per user from here back to you. >> thanks so much for that sara, final thoughts i mean i would keep an eye on the dollar very strong week for the dollar and asian and european trade which was soft today weighed on that overnight, last night

>> and part of the reason is just the potential slowing of the global economy we saw new zealand have a few d days shut down off of one case governor abbott just announced he has break through that is going to do it for us on "closing bell. "fast money" begins now. live from the nasdaq market society in new york city times square, this is "fast money. i'm melissa lee. tonight's lineup tonight on "fast" we're trading the china crack down chinese tech stocks falling. we're breaking down the full fall out and the home building stocks getting hammered we'll tell you what happened for the first time in over a year that sent these stocks tumbling. and one of our trader chasing a real loser and why they're seeing opportunity in this beaten down game stocks pulling back from