>> yes, but it's not something you'll see in the next year. if you hear him make a grand promise, remember, he also promised a million robo-taxes by 2020 >> thank you both. >> always a pleasure. thank you for watching "power lunch." "closing bell" starts right now. >> thank up, kelly and frank welcome to "closing bell." i'm sara eisen here at the new york stock exchange. seesaw day here on wall street the nasdaq is the relative outperformer while small tex take an leg lower. and let's get to what is driving the action today goldman sachs slashing the gdp target for the third quarter earnings remain in focus with

big swings, following results. oil prices for a sixth straight session, now well below $65 a barrel energy by far the weakest sector today. 59 minutes left in the session, sara. >> we have a great lineup coming your way dr. anthony fauci will join us to talk about the latest news, and the impact on the reopening of our economy you won't want to miss it. plus sequoia capital making headlines last year, and now its investment in robinhood and a number of names that went pub public -- they will join us. bob is tracking the market action for us, and courtney reagan has detailings on retail and the big move higher no macy's just slight gains on the s&p

>> moments ago, wilf, we went into positive territory. don't kid yourself the markets are repricing the growth outlook, that's what's going on you can see this, because the cyclical sectors are getting hit harder it's been a terrible couple weeks. cabot oil and gas, for example, is hitting a 52-week low same thing world traith materia. travel and leisure -- this is the consumer discretionary part, also cyclical, but consumer discretionary part, the usual travel and leisure names all weak so all of these sectors sort of associated at the same time defensive names. for example, costco, pepsi, all

of the usual food stocks doing better they're helping hold up. market health care has been a major leadership group, business pharmaceutical, big biotech companies all doing well they're holding up, helping to hold up the s&p 500. finally, most importantly of all, tech. rotation somewhat bund into tech stocks nvidia and cisco with good reports. adobe, paren yale on the high list, also there repricing growth the fed is now a big margin mover now this will --

>> bob, on that note, only 2% -- it's also august, it was meant to be low volume, all seniored holding up. >> the believe is still is, it's not going to turn into an absolute rout. you would see more pressure even on the consumer staple names, the defensive names, and on tech, but you're not it's true about august august is characterized by low volume -- light volume, more acc accurately, and number two, spikes of volatility sudden moves you have in volatility and the market down, at least a couple time between mid august and mid september so far, in that sense, august has been very typically, wilf.

>> i'll take it, bob a pretty defensive field let's focus in on within stock, a big mover, macy's surging on the back of earning form courtney has the details. >> hi there. yeah, macy's beat analyst d. and revenue expectations by $650 million, also issues a new forecast implies a strong second has of the years and some say the strong quarter that retailers on -- as americans emerge, but macy's ceo jeff gwinnett says, he thinking the general momentum is sustainable. >> i do think it's sustainable at i look into the back half 6

the year, you look at the back-to-school time frame that's been a strong beat for us. we're in the high single signatures, in all the categories that momened, you know, the kid are transacting on during back to school. >> it fell 6%, when stores were closed, and online was the only option for a macy's shopper digital did grow d. and made up almost a third macy's is reinstatingivity dividend and the share buyback program form back over to you guys >> what is the macy's story? do they have a turnaround story? with kohl's, i get it, they're going into sephora, what is the macy's turnaround other than the bump with a consumer with lots of fiscal stimulus >> they call it the polaris

strategy it's something they've been working on even before the pandemic part of that is closing underproductive stores, something they were working on they're culling their assortment down, focusing more on fashion, a little let on basics they're looking to increase their penetration of private lability, which of course have higher margin. they've always had a pretty strong website when i say always, i mean since the beginning of online shopping they say they're number two online in the categories in which they transact. so there's a lot going on with macy's you know, some of it is working, some of it is not. of course, the pandemic did sort of put a pause on some of that, but gennette believes that's part of the reason -- he talked about gaining the new customers. he says they're younger, they're coming back to make the second transaction, which of course is impo

important, but time will tell. know there's problems inably chains but still a lot of unknown as there. full-year forecast does bake into the belief that the second half will be quite strong. it's more than baking in what we saw from the second quarter. >> thank you so much macy's up 18%. s&p is up about a quarter of is% with just over 50 minutes left in the retail. we'll talk to the ceo of tapestry later on in the show. and in a money, our interview with dr. fauci on the latest on the delta variant, and the impact on the recovery so far. you're watching "closing bell," on cnbc.

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microsoft, for instance, nvidia doing better after earnings. so all it all up, there's buy in, still, but a feeling of cautiousness after a string of economic data points that have missed lately. >> well off the session lows, though meantime, share of at the time la are lower still ahead of its a.i. events later this evening down about 6% in the past week the ceo is expected to discussion the software technology, and let's bring in dan ives from wedbush. even down 6% or 7% on the week is not necessarily that groundbreaking for tesla either way, what is the reason for the weakness this week, in your eyes? >> i think it's the safety probe

into full self-driving that would be a big focus tonight. that continues to be one of the keys to success for tesla, going forward, in turn of autonomous, ultimately the software piece. there was a big of a black eye in terms of the probe. right now investor, it's been a glass half empty vie, and really them shows the differentiation on the flywheel that musk and fremont have built >> will we actually get clear guidian on that? or will it by more focus on the event as it was -- >> i think the heart of the event will be about a.i., technology i think it's tess lay try the to show not just recruiting engineers, but showing more and more where they're taking it in

terms of the data. i think -- that's important. if you look at the stock, in order to start to get to a four-digit stock, you really knee fsd to get on the better trajectory, and these safety issues we have seen, they was steps back, and it's a bit of a prove-me story for investors i think a lot is riding on tonight to late out that foundation for where it's going. it's not just tesla, dan you wrote a very bullish note about the green tidal wave and the massive transform action these companies are undergoing, but the stocks are not getting a lot of love. why are investors not buying into it? >> i think right now there's more and more competition. it's not just passive. you go back a year, year and a half ago, tesla owned the ev

market we view it as a $5 trillion tidal wave over the next decade. i think it's a prove-me. i believe this is really today -- i think we go to 10% by 2025 penetration, 20% by 2030, but it's a prove-me sector it's -- the bloom has come off the rose a bit, but it continues to be a transformational area, probably the biggest change to the auto industry since the 1950s. >> dan, how close are you watching the fed at jackson hole as it relates to your price targets? do you think where the yield sort of settles after the next month or so will really impact the target prices? >> i think it does, in terms of the mac roa, because right now,

despite what we have seen, it's a risk on in terms of the tech you know, if you look at the fundamentalses, stottic continue to move higher, but the re-ratings, that will be key if we start to see some tapering, and worse than expect, our views today continues to be 16,000 nasdaq, is our target >> dan ives, thank you very much we appreciate it after the break, goldman sachs takes down its gdp forecast on delta variant concerns we'll talk to dr. anthony fauci on the virus's latest trajectory nvidia is up 4.5% after very strong earnings, robinhood going the other way, after warning on this quarter

the ten-year yield has sat on that list every day for the past few months it's down today 12is4 your yield on the ten-year. we'll be right back. how do plastic bottles turn into this? wm and repreve have given new life to over 20 billion plastic bottles. and we're just getting started. see how recycling is one of the many ways wm is always working for a sustainable tomorrow at wm.com/stories. tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose.

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goldman sachs slashing its third quarter gdp forecast from 9% to 5.5%, saying the hilt from the delta variant will be worse than expected. joining us is dr. anthony fauci. welcome back to the show, dr. fauci. good to have you. >> thank you for having me good to be with you. >> clearly the fate of the economy is tied to this virus. when do you think this current delta wave will peak >> it's very difficult to predict. we have seen in the uk that after several weeks of a high acceleration, it's turned around there's a lot we can do to ensure that it not only continues to accelerate, but really goes down to a low level.

that's the thing we've been talking about all the time we have 90 million people in this country eligible to be vaccinated who have not yet gotten vacated we want to vac nate the unvaccinated to the highest possible extent we can, but also, as you've heard yet in the announcement that i was a part of yet, at the white house press conference, is that in order to maintain the durability and the height of the protection among those who have already been vaccinated, we're re78recommenda booster dose, that i believe will go a long way to continue a high level of protection it's within our power to do something about turning that acceleration around, it's just up to us to implement it. >> about the boosters, my question is, where does in a

ultimately go? will we need boosters every year >> i don't know that we can say that i believe the third boost of a two-shot regiregimen, we're notn in clinical studies that the level of antibodies that that induces is very, very high so what we're hoping for is that that third shot really gets you up to such a high level that not only is it highly protective, but it's very durable. that's what we're hoping for we can't guarantee i doubt seriously, but i don't know for sure that we're going to be able to say we're going to no longer need boosts every x number of months i don't think that's going to be the case i think this third shot will take us a long way

>> is it possible to get the booster shot too early >> you know, wilfred, it depends on exactly when you got it there should obviously be a range. we're trying to do it in an orderly fashion, talking about eight months, which would start around the third week in september, but in all things like this, it's a range. you know, six to nine months, what have you. the one thing you don't want to do, for example, if i got my second shot da, and then i hearo the news that a booster would be helpful and decide in two or three weeks i want a third shot, that would be counterproductive. one of the reasons we believe the boost works is you give the immune responsibie of the secon shot enough time to mature, and

make it ready so when you give a boost that jacks up the response a lot. you don't want to make it too soon, but there will be a range of when you can get it, even though opt male we would like it eight months possibly. human nature it self-will. >> the world health organization says protecting the unvaccinated is critical. president biden says we can do both, but if vaccines are still protecting us in this country, isn't it a real ethical question whether we should be get a third shot before bill onhave access to their first >> when you look at what has been done, you can do broth, absolutely we feel a very strong responsibility that we are

acting on as a nation to get doses to the low and middle income countries, so you have to look at the facts that we feel we can protect people in this country, at the same time as we play the major role in protecting people in other countries. let me give you an example of this already, the united states what is donated more doses to low and middle-income countries than the rest of the world combined we have a commitment to half a billion doses between now and as we get into the first half of next year. we've already given other 110, 120 million doses to 80 countries. we have $4 billion worth of resources going into the kovacs program, and addition, to allow

us to donate hundreds and hundreds of mig onof doses we're very sensitive to the needs of the developing world who need vaccine doses, but we believe we can do both >> dr. fauci, pivoting back to the u.s., you started the interview, your first answer, making a plea to encourage as many vaccinated as possible, a similar tone, a message that you delivered last time you joined us a month or so ago i wonder how optimistic you were that we will see a pickup in the percentage of the population that's fully vaccinated? we have crossed 50%. that's pretty good, aren't we always to expect it to plateau inch wilfred, a couple different things have happened that are in motion right now for example, we went from a couple millions people a day

vaccinating. we went down to around 250,000 then when things started to really go bad, a certain segment started to realize, you know, that we're in trouble. we're not, the last few days, have gone up to like a million people so we peaked up, we went down, and now we're back up. next thing is that as soon as the vaccines get fully approved by the fda, which we hope will be very soon, two things are going to happen. people are going to say, well, i was waiting all along to get the full approval. now that it is, i'll get vaccinated i think you will have a certain proportion of the people who were not vaccinated that will do that next, what will happen is you will find enterprises, organizations, empowered to start mandating vaccines u. such as universities and colleges

saying, if you want to attend in person, you have to be vaccinated you'll have places of employment, particularly big organization that employ hundreds of thousands, saying if you want to work for, you've got to get vaccinated. they were hesitant toad that before, because you didn't have the backup of a full approval of the vaccinate. so i think we can put a dent in that group of people that they will come along and get vaccinated. >> the other thing i wanted to ask, dr. fauci, is about the possible percentage of the population with antibodies in the u.s. there's been some analysis in the uk some of which is purely anecdotal, that the peak came and went quickly, leading to a higher level of herd immunities

just the fact that over 60% are fully vaccinated, have antibodies of some form. do we have in the data on that >> you know, that's a very good point, it is conceivable, but i want to underscore that. we don't know for sure, that the combination of the high level of vaccinations in the uk, together with the high level of infections that they have experienced, has gotten to the point you have a substantial proportion of people relatively protected. we don't know that you know, we've counted on peaks that have occurred, and then gone down, and people incorrectly have said, ah, we have now reached heifer immunity, we're okay, only to find another peak that followed that was even worse than the previous one so we better be careful that we make assumptions about that. the one thing we do know is that

vaccines protect the one thing we're certain of is what vaccines can and will do. >> is it safe to take our unvaccination -- unvaccinated kids on our vacation >> it depends on where you're going, where you're coming from, the level of protection. we note in the process of travel, we know the lines at the airport, things like that, planes themselves, when look at it, seem to be relatively safe one of the things you want to do when you have unvaccinated children, you do two things -- you surround them with people who are vaccinated, such as in the school system, which is why we want all the teachers and personnel in the school to be

vaccinated then when you have people like younger children who can't be vaccinated, thai thatt's where want to wear masks, to protect you from infecting them? >> what do we know about delta-infected kids. >> when you look at what's happening, you have to factor in a situation this delta delta is a very -- without a doubt, and that includes children so this idea that children don't get infected or children don't transmit, that's not the case with delta

qu quantitatively, there would be a certain proportion -- a small proportion, but there will be a proportion of them that will get seriously ill and will be in the hospital which is the reason why you go around in the red-hot zones, places where there's a lot of transmission, you find in the pediatric hospitals, you have a lot more children in the hospital not only with covid-19, but with other respiratory infections like rsv. so children are not exempt from getting severe disease, even though relatively speaking, when you compare them with people like the elderly or the adults, they are less likely to get severe disease, but not so completely exempt that you don't see a lot of them in the hospital >> finally, palm beach in a state of emergency we're seeing rising numbers in texas. what do you say, dr. fauci, to the governors of texas and

florida, that are refusing to allow masks in schools >> you know, i don't want to directly address the governors, because then it becomes a personal semi-political thing. the only thing that i can do is say what the right public health approach is -- get as many people vaccinated as you possibly can, and take a look at, and seriously consider the recommendations of the cdc about mask wearing, mask wearing schools to protect the children, mask wearing indoors, even if you are vaccinated when you're in a zone like florida and texas, that has a high degree of infection. those are simple public health measures that should be adhered to >> dr. fauci, thanks so much

good to see you again. >> same here thank you for having me. shares of robinhood getting hid hard today after warning about trading volumes. we'll speak with the owner of s sequoia capital. as we helped to break, bond yields moving lower today. keepingen an eye on that, the dollar has rallies a bit this week we're back in a couple minutes

rewelcome back goldman sachs buy ing nnit, and then there's also a deal to manage the parent company's insurance company's assets as well going forward so this is relative to just goldman sachs' management arm. they're adding $355 billion, so that gives you an indication of the size there it shows a fan nating trend that is going on here one is overall consolidation in asset management, but the second is these investment banks try to

go diversify their revenue, and shows the way they're not trying to mimic, per se, morgan stanley, but the added point which i think is of note, it comes, of course, after the best year and a half ever for those volatile parts of the business that goldman sachs are so brilliant at and record risens in those areas still, they want to make this shift into the stickier fee-generating parts of the business. >> stock down about 1.25, but the whole group is down today. time now for a cnbc news update with ra mel solomon. >> i, everybody. a man who claimed to have a bomb in his pickup truck near the u.s. capitol has surrendered he was in a five-hour standoff online he made anti-government

threats, and also that he loved president biden. consular officers are being went to kabul and kuwait to help with the efforts facebook says that the ftc claims that it's a monopoly are meritless. and others criticizing the u.s. for given covid booster shots before much of the world gets a first dose of vaccine, the w.h.o. chief in africa says the covid situation on the continent remains very fragile, with just 2% fully vaccinated. >> we just talked to dr. fauci about that, he said we can do both rahel, thank you

hotel occupancy, it's declining, as concerns over the delta variant grow up next we'll look at the travel names getting hid. dow is done 67 points. you have a lot of theive sectors leading the way. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

rising concerns over the delta variant. seema mody has the tornado for us seema? >> wilf, if you're trying to figure out where the concerns are showing up in the market, look for further than the travel

sector expedia, for example, down over 14% just this month. there's also new data showing a consecutive drivers, now below 66%, as americans booked some travel two mars seeing the biggest drop, san francisco and new york, of course, big cities that do rely on conferences and business travel. post labor day, that's when we're expected to get a better read on the impact as a number of companies delay their return to office. seema, thank you. . cathie wood addressing her critics. those stories and more, as we take you into "the market zone." toward your bachelor's degree.

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of sourdough bread. don't get mad get e*trade and get more than just trading investing. banking. guidance. we're in the "closing bell" market zone, commercial-free coverage today we have hitachi investment strategist stephanie link, and spoke cofounder paul higge stocks are volatile today, while the dow underperforms. we are well off the session lows, though, quite comfortably. i'll come to you first, in terms of what you think it is weighing on you clearly we're flat at the moment is it just delta fears

>> well, we're flat, but the rotation has been pretty severe. we talked about 2021 being a year of rotation, and it's more of a defensive rotation. it is definitely delta unknown as, but it's also the fed and taper talk, maybe tapering coming a little sooner than expected, a month or two earlier than expected. of course, it's also about peak growth that's not going to go away anytime soon you have this rotation into health care, utilities, staples verse cyclicals. so august and september are really challenging month for equities as a whole. look, i'm not changing my strategy in terms of the barbell. i do still own cyclicals i still open some reopening names. in fact, i think thought two sectors in groups are much more reactive it's crazy the numbers i'm seeing, so there's more bargains

there. but that said, i also own health care secular growth in general, because i cstill think there's lot of -- and taper will be very gradual. if you look at the job numbers, it's so supportive above-trend gdp growth, and cap ex is on the rise these are all healthy things we won't go 7%, 8% % next year like this year, but we'll grow above trend. in that environment, that's good for risk assets. so making my shopping list and having some dry powder to dry on the weakness. >> it's you have for the week, 1.2%, the best performing sector really for the month what do you notice, paul, about the selling, the patterns, the volumes, everything that would point to where there's more to come. >> just look at the intraday

heart, the one thing it tells you is august. we saw a big sell-off, which i think was an over-reaction no one tends to complain when the market is going up nonstop monday, the s&p was -- hit its fifth straight record high stock was up ten days in a row coming into this week, so the markets are a two-way street the selloffs are a way of keeping the bulls honest i don't want to read too much into this august period, where a lot of people are out on vacation in this period. i think concerns or delta are certainly valid, but i think even those -- that will be passing. some of these activity indicators which have pulled back recently, sure, people are making reins in a bit, but there's seasonality. schools are back in session.

people will be going back to dinner less. >> there's a lot of covid there, too, cathie wood's ark investment has taken a hit after it was revealed that they're betting against the etf. cathie wood joined "techcheck" this morning. >> when i seal valuation and longer time horizons, i feel a little more comfortable. i like bad news, and maybe news that's not -- the discounting is worse now than the news actually will be. i feel better in that kind of environment for our strategies i don't think we're in a bubble. >> ark innovation's etf is down. which side do you fall on?

>> well, i think that there are certainly parts of the market that are in a bubble that's more of the meme stocks, in my view thankfully there's such a small piece, i don't necessarily have to pay attention to it, but what i think is interesting about cathie wood, she's focusing on totally addressable market stuffs, so like robotics, a.i., blockchain i can make a case to own all of those themes i get the growth i get what she's saying. she just a different investor. she's willing to deal with the valuations i can pick any of these end markets and get a more boring company, if you will for example, a.i., broad com is focusing on a.i. energy storage, next terra energy, so i can play along with the same themes.

>> you're the boring cathie wood >> i am. that's fine. we'll come back to this topic, but first, back to oil. pippa stevens has more for us. a stronger dollars, fears of a demand slowdown wti and brandy, with all these head wchbds to a low of $62.63. saying the bottom could be near, but that traders will need to get some positive headlines around global economic growth. wti breaks below 60, they say it could bring out the bulls. wilf, back to you. >> paul, what do you make of both the oil itself, but some of

those majors in the energy sector that have tracked down as well you know, i think if you look at the covid numbers. >> i think that's something to watch. >> that's the play here on energy specifically. >> robinhood shares are also down sharply today indicate rooney spoke with a -- with the highlights and with the stockgetting clobbered today.

>> they're focused on that warning. i talked to jason warneck, he highlighted crypto's role. that was the first time ever there for robinhood, and it was one of the big drivers there it counted for about 26% he didn't expect -- he says if it did, the app could still grow and potentially expand abroads without it. >> so it's really quite small on a trade basis, when you look at that because of that, it's not a revenue source that would be necessarily all that difficult to replace so there's a couple ways to go about it >> warnock also says robinhood

is not a meme stock, and says there's plenty of cash to handle another gamestop event, if that were to ever happen. back to you. >> kate rooney, thank you very much one minute to go before the close. we have recovered off the low point of the session the dow was at one point down 270 points this is something we saw yet it took a real spill 1 big-cap tech proving defensive day. it is a mixed picture. health kcare, utilities all higher, but energy, materials and consumer discretionary, financials and industrials are weak the nasdaq outperforms

it looked like it might close positive microsoft, invnvidia and more helping there. this has been a painful area if you've been long small cap [ bell ringing ] >> the total loss to say about 9.7% ouch >> just in the green for the s&p, so welcome to "closing bell." the dow did close, though, down 0.2% or 65 points, the dow was down 270 s&p and nasdaq both higher by about 0.1 of 1%. with the oil down 2% in march 2020, warned the coronavirus would be a black swan event for the market, and

startups, and before it was labeled a pandemic we'll have more on whether the delta variant whether pose a similar risk to investors. the stock market stays so resilient. quite a few chancing from supply-chain sures, and talk of tapers >> yes today was a delta day, and it was done during a seasonally different month, with pretty low

volume look, as everybody has continued to point out, we have had a market that's up 100% since its lows in march of last year, post-pandemic. it is even up over 30% over the pre-pandemic high in february, so, yeah, we have a bit of trepidation, we have some concerns about the speed of growth, as delta permeates this country and others and we have a very, very transparent fed, but one with a big meeting next week that will likely be very affected by this conversation around delta and slowing growth, like the numbers we saw come out of some investment banks today, but a that means to me is i don't have the to fight against buying on another day that's a high i have a time to get back into cyclicals, back into small caps

and ride what i think will be defensive for a while, but also when you think about defensives, right, we have a market right now that's so healthy, in terms of the earnings of individual companies that ubs is forecasting that the buyback and different policy of most companies is going to expand about 30%. so if you think about expanding the dividend and cash flow you're getting from equities in a market when you with get hardly anything for bonds, this says to me it's a time to buy and buy for yield and for cyclicality. >> it's a good point a lot of retailer are in a sign of confidence. we're going to talk to tapestry's ceo later on. the earnings are still coming in quite strong, and the outlooks are raised and strong. how do you put that next to some of the weaker economic data we have gotten lately, like retail

sales, consumer confidence. >> i know everyone was paying attention to retail sales, but remember a year-over-year base is just up 18% so i think the consumers is just right. will they be up that much going forward, absolutely not, but because there's enough good parts of the economy -- not all is perfect, to your point, but i think there's enough that's good, parts of manufacturing, jobs, jolts, so all of that stuff should lead to better growth, and if earnings are going higher, stocks usually follow, which is why i am looking at some of these cyclicals and reopening names, because almost all of them reported better than expected numbers, and yet the stock exchange have fallen dramatically so i think that's where you get your opportunities to buy low, and you can trim some of these other stocks that have rallied

in this rotation >> paul, what is your thought? >> i think the buyback will be strong demand for equities, so we talked about rotation earlier in terms of sector performance now we're talking about rotation in terms of where the buying is coming from. as companies increase, that's going to increase demand we've been talking about it for several weeks. that's a sort of demand going forward for the market in the shorter term here, i think ali brought up a good point about earnings being strong now earnings season is over, or essentially over, so the market will find itself in a bit of a holding pattern and a bit of a hangover, searching for the next cat lix, all again is a slow time of year, so i think until we get a catalyst, whether though be, you know, a reduction of the, you know, the covid burt

in the u.s., the delta variant, or making more dovish commentary from the fed after some fears that, they're going to be more hawkish than pressurely thought, to be could be catalysts moving forward we have seen the market trained consistently, and then pick up strengths >> i was going to ask you if that was for mike santoli's job, since he's not here. >> you know, someone that is to

pick up slack when he's on vacation the nerve of him not being in the office >> everybody's bringing it today. >> it looks like a bead. revenue here is up 41% to 6.2 billion versus expectations of $5.9 billion they're bleaking for $1.87 versus 2.01. for revenue 6.3 million versus 6.04 billion semiconductor systems, applied global services, so that would include installation and maintenance of the tools, 1.29 billion, and display and

adjacent markets, 241 million. the conference call is at 4:30 eastern. back to you. >> paul, you look at the economies ago a research group >> they were down nine of the last trading days, andthe sector has underperform the s&p 500 since february so, it's interesting to see every companying in -- but the stocks aren't holding up well. maybe that's telling us the shortage of semis is ending sooner than many people are anticipating now courtney has some numbers

for you. >> this is an interesting report very big beat for earnings the company reporting here $1.39 on a gaap basis. revenues better than the treatment expected also comping of 15%, very strong, but then they start talking about the third quarter guidance, full-year guidance that's where things get messy. as well as weak third quarter comp guidance, so they're expecting earnings in the third quarter to be between 61 and 69 cents. they're also only expecting comps to grow to more than 10% the full-year earnings guidance is a range, the street had that pegged at 440, but a lot of that beat is probably from this car.

>> the ceo says there remains -- external factors that benefited the first half they're also worried about congestion in the supply change. shares are down more than 3%. >> ali -- course any, thank you so much for that do you worry that expectations got always too high? >> that's always the challenge you know, it's always quarter over quarter and overover year, so certainly that would be challenging. however, when you talk about the consumer and retail sector, i

think we saw that delta didn't in the numbers we saw that were disappointing from the survey, and the sentiment, but the other side of that is that i saw the data around spending for school this year, and we're talking about a record amount of consumer spending on kinder garden through college so, no, that doesn't concern me to a huge extent we have we have talked about this a lot. once we come out of the peak, we can have healthy growth, and a very healthy consumer. again, that's not even talking about what budget reconciliation, et cetera will put there you do have to be careful about these comparisons, but i think the street has actually done the opposite,

which is to underestimate what we're seeing. >> finally just wanted to end the conversation with inflation, and all these concerns that the fed will have to move and it's getting ahead of them lumber, which is the fed's franks, transitory inflation americaned, down 70% so is that really still a concern? >> i think it is. >> by the way the crb is still up but the commodity side, absolutely wage growth and shelter so those

two pieces are more concerning to me. one more check out-of-for the consumer, i just worry from the corporate appointed of view how they can afford it you do think you'll see above-trend inflation, but a bit of better growth in the economic, and low interest railings that's the goldilocks scenario >> well will leave it there. thank you all for joining us up next on the show, charles schwab chief investment strategist, liz ann sonders, and how investments should be put to work. and the ceo of tapestry.

we're back in just two minutes on "closing bell."

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a mixed picture for a bull market the dow closing in the red, while all the major averages well off the session lows. great to see you thank you for joining us my first question is whether the tone from clients over the summer months has changed at all, whether you're sensing more bearishness or whether everyone is still fairly constructive >> i would say there's a tone of cautiousness, but that's not something terribly new what we found really for much of this year is that the concerning expressed are much more of the alternates more recently

what would be the catalyst for that, but generally these are these matt rho-level concerns that seem to be to have of mind for clients. >> what are you telling them, in terms of where they should by positioned more of the growthy names? or security at this stage? >> not really either we've factor focused in style focus or sector focus. what is coming into focus is quality-based factors have moved into the leadership position, not just on the value side, but on the growth side of the equation strong balance sheets, strong free cash flow yields. actual realized earnings growth versus perspective earnings growth, so it's almost a factor approach, that i think active investors that or stock pickers want to take, as opposed to

lateral-based decisions. i think there's much more important nuances that need to be discussed, especially as it relates to things like growth and value. momentum has also been working, but i think when people hear momentum, it's a factor, not a pre-defined list, i think people think high bessa it just means what has been working is continues to work. so what does that tell you about the environment we're in for growth, and ultimately where that takes the market? >> i think the underlying action within the brought indexes tells you a lot more than if you just

look at the headline close, this shift toward quality, leadership residing a bit more in the traditional defensive areas, i think points to a slowing growth environment. i think the retreat in areas that are very cyclically tied to inflation, are telling you that, even though we're not out of the woods yet, that some of that commodity-based on the up side is starting to wane. you're seeing that reflected in recent weaker performance by energy and materials i think to get a sense of what the market is telling us about the economy needs though go much deeper down than just looking at the closing price of the index >> there is a big event risk

around jackson hole? >> i don't think so. i think if that would be the moment of tapering, i think that would be the case. i think many people expect that to occur i think the expectation is that would naturally occur at an fomc meeting, but i think if the tell graphing is not quite to the finish line, but maybe more robust, that would probably be a market respecter i think powell in particular will be pretty cautious about not being -- not having any comments that are startly different than just reflected in the fed minutes. thanks for joining us. a pleasure to see you. >> thank you, you too. the ceo of tapestry joins

us plus amazon may be getting into the department store business coming up, find out how worried retailers like walmart, target and macy's should be we're back in a couple minutes . (crowd cheering) stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad. - [man] i will tell you this, southern new hampshire university can change the whole trajectory of your life. (uplifting music) ♪ - [announcer] introducing the grubhub guarantee, our promise to deliver your order on time within the delivery window and for the lowest price compared to other apps or you'll get back at least $5 in perks.

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amazon may be on the verge of an suspexpansion. courtney reagan has the record. >> amazon is reportedly looking for opening a department store it does content of makes sense wells fargo estimates it's one of the ton -- it has 600 physical stores of various formats from whole foods at the largest, to amazon four-star stores and more, but it's instrum struggled. to win, you need to win in both physical and digital >> i think the surprise i had is that it took them this long to figure out they needed to go

into stores to expand their prowess in apparel you know, customers love the interaction between the app and the site and stores. when you're talking about the goods that we sell, so it's not surprising we have lots of competitors. they are one of them. >> kohl's sells amazon devices and has the return program she says the market is big arguably we compete with them today in some categories sara >> so they're all probably a little scared. courtney, thank you. sticking with retail, tapestry out with earnings today, beating estimates across the board, reinstating its dividend as well joining us now in a "closing bell" exclusive interview, tapestry's ceo joann, welcome back. >> great to be here again.

thank you. >> across all the stores, is it continues into the current quarter. we reported standout results from fiscal 21, really highlighting the success of our acceleration we've seen revenue sequentially improve across the year, preceding pre-pandemic levels, led by digital and china, and we see momentum building. our guidance implying mid teens growth record levels for a company. i think it's important to highlight that we have delivered four consecutive quarters, so against last year and against pre-pandemic levels, we delivered record annual operating income as a multibrand

company. we're fundamentally a different company, reaching new customers in new ways, and we're just getting started. we see tremendous runway ahead for all of our brands. >> you sounded pretty bullish on china during the conference call i know you were asked about it, a huge market for coach especially what are you seeing there with the rise in covid delta cases and much stricter er lockdownsa come with it. >> we've been in china for decades. we see continualed growth. our brands are well positioned, targeting an emerging and fast-growing middle class in china. we continue to see traction as we deliver products that resonates. we're driving innovation, and again ow growth in china in the last quarter alone, last year was 60%. our brands are resonating with the chinese consumer

one other data point i would share, is we held our fashion show in shanghai in the last quarter, it was livestreamed and very well received we have strong teams on the ground and engaging consumers in that quarter. >> are you fearful as all of clampdowns from the communist party, or is that seemingly focused on the uber wealthy billionaires >> what we have seen is continued strong engagement. as i said, and to your point, our brands do target the middle class. we see that as a fast-growing target market, and we continue to see strength in that market it's building. it's building both inour stores, but also on digital channels you know, we're driving innovation there we're seeing consumers transact on livestreaming, trending on

the tiktok in china, and as we continue to innovate, we continue to see traction in the market >> i was thinking the handbag must be suffering, and you were saying no, they were buying these big giant handbags what is going on now >> well, we're really pleased to operate in this handbag category it's a strong category we've seen strong consumer engagement pre-pandemic, we saw mid to high single-digit growth. through the pandemic really strong engagement. through digital channels, they're finding weighing to engage with our brand. we expect that growth to continue post-pandemics. what we have seen, as we have come through the pandemic, even recently, our sick platforms continue to perform, we're

seeing growth across lots of different platforms, not just the wear to work tote or go out in the evening, we're seeing performance across our -- but we're seeing the signature platforms really performing across coach and kate spade. with stuart wietzman, and then we're back into the bridal styles, as in-person events begin again. weddings are scheduled again, and in-person socialization is happening. we are seeing a shift back into some of those dress styles >> and high heels that come with it do you think the market is giving you credit? it's had a great run, but do you think investors appreciate the

strategy and some of the moves you have made during covid to reposition the company >> we're a fundamentally different companythan just a year ago in the way, in our capabilities of reaching new customers it's a billion dollars bigger than it was pre-pandemic so we have developed to say abilities, and we're just getting started we're attracting new customers with 4 million new customers alone. new capabilities to engage those customers, drive higher lifetime value. we believe and we're confident over time our stock will reflect the strong fundamentals for the business. >> you also recently announced a big esg initiative to battle climate. every company is clearly doing this i notice that you're raising minimum wage to $15 an hour, awarding associates a one-time

appreciation bonus so tell us about the thinking of your announcement and whether it that is anything to do with the tightening in the labor market >> this is not a new initiative. this is taking action behind the work we're already doing they include our edni initiatives. some of the those initiatives included paying our associates, you know, the $15 minimum wage commitment is just another in a long line of commitments we have made i believe we have the best team in retail. i go out to stores, and i talk

to associates who have 8, 10, 12 years of tenure with our companies, really unheard of, and they are very passionate so this is just another step. >> joann, thank you for joining us good to have you on earnings day. >> thank you, sara good to see here. sequoia capital was one of the capital firms investing in robinhood when it needed extra funding. when we come back, whether sequoia has any plans to sell off robinhood. plus a plant-based cho rizzo in two cities. a look at the fast-growing pea protein business

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positive he's the third senator to announce it today. clear barriers we have seen popping up may actually not slow the spread of the coronavirus. "new york times" cites research that shows the barrier may just redirect the virus to other workers or customers. on the new, the fight against covid in mississippi where nearly all icu beds are full that's tonight at 7:00 p.m. here. major league baseball and its players association have struck exclusive deals with fanatics to make baseball cards. the tops contract with the mlb runs through 2025. it comes as tops is going public through a spac deal. back to you, wilf. up next, sequoia capital

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joining us is sequoia capital's partner. welcome back to the show good to see you. >> thank you for having me we have a lot to talk about,

definitely want to go broader. since you were an investor and i believe still hold the stock, there are questions about whether it's peaked. we have seen the peak of retail trader interest in stocks and options, and now crypto is certainly driving it, but the company is even warnings of a slowdown. >> what do you think >> as you noted he we invested earlier, when i think about robinhood, i think about the fact in short order they have accumulated over 20 million accounts, over $100 billion in assets in their custody, and i think about how these users will become more snis indicated and what the next decade entails we typically hold shares many, many years after the ipo in the case of square, i haven't sold a single share.

>> and you're on the board. >> both square has a consumer business and a separate business that focuses on smbs when i think about these businesses, i think long run i'm much more interested about the underlying fundamentals. what might it be in five or ten-year times those are the horizons we focus on >> looking at other areas that you're investing in and bullish on, do you think the switch we have seen work from home or hybrid or whatever you want to call it is something that not only will stay, but still has significant investment

opportunities, or the ways to play that are already pricing in that shift >> i think there's so much more opportunities that remain, more and more companies that are truly distributed from the get-go, and 100-person companies that literally have no office. i think there's so many other businesses that are embracing a hybrid approach. it enables them to be very, very cooperative, maybe not great if you want to focus on vitt activity. we're invested in a company called gather that enables small teams and companies to create a

morphic representation of the office so i think it's still very, very early. speaking of the metaverse, what duid you think of the announcement by mark zuckerberg? >> i think it's super, super interesting. we backed a company call unity back in 2009 and they're one of the core engines that power many of these metaverse applications. in some instances, it's here today, but it's largely 2-d and largely linear i love it when science fiction turns into science fact, it's to have 3-d experiences, and interact i think what facebook

announced -- we're also another investor in rick room, and key businesses. >> i'm glad you mentioned, but also pronounced hmm-um as you're a company that you're into but anyway, my question is -- isn't about how we pronounce that, but there's also zooms of this world that have done a lot, and why is your one special or different? >> we're an investor in zoom, too. i love what eric and the team have built it's amazing for us to think what a difference zoom has made to our lives the reason the founder used the name um-hmm, you have to be very

deliberate but apart from that, it enables you to express yourself while you're in online meetings. when i'm in meetings, i always use zoom, obviously, but then um-hmm it's a way to change my background it enables me to include a gif, which sometimes makes mclaugh or express myself better. the company is growing very, very quickly >> so we mentioned the black swan note, which made a lot of headlines march of last year during the onset of covid when you advised your companies to cut back on spending, on jobs. if that was the black swan moment, where are we right now in 2021? covid is not behind us, but clearly you're finding a ton of other opportunities, so how would you characterize this? >> the original black swan memo from 2020, was a cautionary

note we didn't necessarily tell companies to stop hires, but paw and reassess just be deliberate about what you do we followed that up on the one-year anniversary of that note with a memo earlier this march, when it looked as though we were entering post-vaccine future, and at that point we encouraged acceleration into the new future but it feels like delta has cast a fog over our visibility. unfortunately, companies have wonderful muscle memory, so i think they're ready to adapt, but i would be more cautious right now. i think it's just unclear, or what is happening to hospitalizations in the country? i think it's a 34078need to whee just pause

>> the big zest change we have seen is in-person meetings are being canceled, but candidly, unless we get shutdowns, it seems as though the economic impact is relatively minor, whether that's in the events business, whether it's for restaurants, we don't see any impact but part of the question is periods of change, and right now it's still a fantastic time to start a company. they were up 24%, it's remarkable and at these times, the small-level startups can offer a great opportunity to find a wedge, to find a way of delivering something distinctive that doesn't yet exist we'll leave it there

thank you for joining us from sequoia. >> thank you. up next, a big boom in the pea protein market chains are testing more meatless options. it has under the radar pea producers booming. america we bd ♪ ♪ and one we explore one that's been paved and one that's forever wild but freedom means you don't have to choose just one adventure ♪ ♪ you get both. introducing the all-new 3-row jeep grand cherokee l jeep. there's only one. what happens when we welcome change? jeep grand cherokee l we can make emergency medicine possible at 40,000 feet. instead of burning our past for power,

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xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. shares of beyond meat pushing higher over the last few months as the popularity of alt meat grows. the pea protein business is improving and kate is here with a deeper dive. >> the alt meat market could hit $140 billion in the next decade according to barkleys and pea protein is a major part of the sector companies are racing to build up their pipelines. a tech company working on developing both yellow peas an soybeans that taste better it works with nestle and general mills an blue buffalo. it will go public via spac merger later in quarter and plans to invest heavily in the

ingredients business. >> we have to go and look at other protein sources and other crop choices and inundate on those using the same science and technology driven approaches that we've driven for corn historically and bring that innovation to bear for properties that consumers really want. >> pea protein is used for dairy products like oat and almond milk and they are testing a cherizo product in denver and indianapolis restaurants featuring what else but pea protein. back over to you >> kate, i'm intrigued by this i need to try some of the products when they're ready. but i love peas. and actually i'm reminded by being back in london how hard peas are to come by in the u.s every restaurant here will have peas peas available as a side, i'm not sure i need pea protein because i like meat with peas

and gravy. maybe that is a merger. >> so british. >> maybe, i'll just say as a 100% irish person, i grew up eating way too many peas and they were in everything my family made but i'm with you but a good way to add protein to the mix for plant based fans and people who are looking to potentially use more of that in their diet or replace some of the meat that they eat flexa terrians. >> i'm so glad i have a supporter because i don't think sara is going to join us they're cheap and healthy and delicious. peas. >> as money american child, i threw them off the tanl. because they're gross. >> i could picture that. >> thank you you're getting your immunoassets and you didn't even know after the break, your wall street look ahead. tesla ai day kicking off in a few hours.

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the break with our producers but i can't any more to our wall street look ahead. tonight is tesla's ai day, presentation kicking off at 8:00 p.m. elon musk said the sole goal is to have artificial intelligence to come work at tesla. and tomorrow earnings from deere and footlocker that is 3:00 p.m. eastern time tomorrow and sara, i think dollar, we're going to mention the dollar. >> that is something that we could agree on that is what i was going to bring up too i'm so glad you did. >> you go for it the pound is in the eye of the storm. >> dollar has been trading as a sort of fear maybe as a strong word, but as a slower growth play as a concerned signal for the market and it is been climbing and it is putting pressure on commodities and something to

watch because we are at the high point of the year. and almost at the highs going back 12 months so we'll see if that acts saz a wait on overall sentiment because it is all part of the swirl, slower economic growth globally and potentially here in the u.s. the delta variant weighing on economic activities starting to show up in the high frequency data, whether it is travel or postponing back to work and just what that is going to mean for the market could it sustain the high levels because of a day like today where defensive sectors drove the buying there was still buying but it just wasn't in the cyclicals. >> as you said, at the moment, because it is driven by a sort of concern, a fear out there, it is also coming alongside yields being pushed down. the question is depending on what happens at jackson hole whether one of those two factors breaks and if we do get a significant call toward

tapering, the recent move to the down side, 124 on the ten year. >> powell has been worried about the delta variant. he didn't expect it to have any impact on the economic growth but maybe data will sound other wise we'll see if that changes. >> that will do it for us here on "closing bell." "fast money" begins right now. we'll see you tomorrow. >> live in new york city times square, this is "fast money. i'm melissa lee. tonight's trader lineup. tonight on "fast," the chart master said beware, carter worth and why he said do not buy this crude collapse andtracking the after hours actions. applied materials is on the the move the call is now underway we'll bring you the trade off and the report and later the auto stocks hitting bumps in the road today. we'll break down what sent shares of ford and gm into reverse. but first pop the popcorn, because we are starting with a