new york has been steadily climbing, if there's 25 metro markets that have declining rents year over year, four of which belong to major metro areas in california, as people flee. >> on your last segment, thinking about what she was saying as a real estate broker in l.a we still haven't heard from the president. any mom now. thanks for watching "power lunch," everything "closing bell" is now. he's expected now at 4:30. welcome to "closing bell" i'm wilfred frost, all green on the market today let's look at what is driving the action leading the nasdaq after a brutal stretch

here we go again, surging laid in the session airbnb says it will temporarily house 20,000 afghan refugees brian chesky will join us, a first on cnbc. chipotle has been on a tear lately >> with record closes in site, and yet we almost got there.

joining us with the bubble warning, with richard bernstein. first, mike, what are you watching amid the rally. >> sara, today a more of a rotational feel for this little extension. we have kind of clicked back into gear, if you look at the s&p 500, right back on this very persistent rally path. we pointed out for months on end, the market tends to hug the upper rail of this pathway, a bit much more from here. wouldn't take a lot more to look overextended, but i want to underscore the persistence of this. >> that's been the

give-and-take, also really detaching from the rest of the world. over the last performance, of the s&p 500 versus equity markets from the rest of the world. everything in the world beside the u.s. tracked pretty well. the rest of the world was outperforming. starting in june or so, when the big-cap growth stocks really started to take the lead, and of course the asian markets had a very rough patch if it's going to be a roe station, you would think that there would be some convergence here in the rest of the world, especially asia might catch up longer returns, rolling ten-year returns, ten years ago, tomorrow or the next day, was basically the 2011 bottom. that's when you had the u.s. credit downgrade now we're up more than 16%, close to 17% annualized.

is but this is not usually -- when you get up to 20, in the '80s, '90s before that when we sea that those numbers are peaking, and they're starting to come back down i think provide you a pretty good story, combined with the

kinds of stocks that would theorically purchase, maybe recede a bit are the ones that have lagged. i think it helped that you've had some real selloffs in some of the names that had benefit, so i think more in terms of excuses than reasons >> we are said for two report closes, as we stand. we're joined by a guess who says that's quite possible.

can make its way into the real economy, right ed fed wants its liquid to other kurt, a broader base of the economy. that's not happening so we know there's a series of bubbles that are forming, whether it's housing, which you talked about earlier, whether it's bitcoin, whether it's innovation, disruption, all these sort of things, there's a brought range of bubbles forming, because the fed's policies can't make it into the real economy >> are unfortunate equities one of those >> i think we have to separate the market, if you will.

>> what you're getting is they speculative bubble aspects, that's probably very low, so i would art it's more important to figure out which side of the seesaw you want to be on >> we have seen so many all right fall spacs i'm thinking of, we looked at the spac index, way off its highs from last year we have seen the air come off frothy parts already, yet the market figures out how to churn higher >> well, sara, i think that gets a bit to what i was thinking before liquidity is looking for a home.

we should all hope that ends up in the yield economy, but there's no incentive for the banking system to lend, and therefore it's stuck, but then something else start popping up. you were talking about the meme stocks how could this not be a bubble so what's the key here is it the fed? is jackson hole the key, or are we talking about a year or more when we see rates going up meaningfully >> there's two parts in your question that i would like to address. first, what will be the catalyst i think the catalyst will be long-term rising interest rates. either lodge-term bonds or high

p.e. stocks, something that's going on farther in the future like bitcoin, something like that so long-term interest rates are usually the kryptonite i other side, though, is we have to remember the fed is trying to decide if they want to announce that they might do something in the future this is not the epitome of u.s. leadership here. so i think we'll see that seesaw continue, as there's too much liquidity popping up on one side or the other. >> what do you do, rich, if all these places are looking bubbly to you >> if you knew the bubble was

going to burt next thursday at 1:15 in the afternoon, the current would be to go to bubble bubble bubble to 1:14, and then shift. of course that's unrealistic nobody knows when the bubble will burst you have to carry the spare tire in your trunk, you have to carry the fire extinguisher in your house. that's called diversives during a bubble, diversives becomes more important because you have such extremes if everybody is focused on meme stocks, bitcoin, and tech and up ovation disruption, you have to have something on the other side of the seesaw, otherwise you're taking as immense amount of risk you don't have to set everything, but think about what the next story is going to be.

but if it's yields rising, it can't be bond. so i'm trying to work out what you're -- so using big terms like bubbles, it seems like it go backs to traditional positioning as usual. >> good question interest rates will go up, that's our view. but one has to say why will long-term interest rates go up the answer will be a stronger nominal economy, right you even mentioned this before, or mike mentioned it before, the stocks we have seen are predicated on a slowing, almost a bear irview of the economy going forward. only the maude university of companies can possibly grow. you want to expose the portfolio to positive things, that would be energy, materials, industrials, small caps around

the world. it might be lower quality bonds. it's harder to go bankrupt when you have faster nominal growth that's certainly not, in most people's crosshair right now. >> rich bernstein, good to see you. thanks as always >> thanks, wilf. we have lots more to come today, talking about opportunities in the market when we're joichbd by david herro from harris associates up next, what early investor bill gurley said about california judge's decision to strike down prop 22, and what it means for the gig economy and workers. you're watching "closing bell" on cnbc.

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with these efforts to roll back prop 22, the california measure, as you mentioned, that allowed gig workers to remain classified as contractors, not employees, he said the seiu is behind it. >> they spent more money

lobbying than any other organization in our country, and have for many, many years. they only represent 2 million members, but oddly those members are in hospitality, healthcare and government services. they're not even in this industry they're taking the dues from their members and yew it to fight they battles what they're really after is putting $420, which is the minimum member union fee, for the 2 million they have, they said to expand that to these drivers. they don't want to help them, they want to add to their costs. the california judge late friday ruled prop 22 constitutional that pits this creditors versus employees issue back into the spotlight. the stocks were looking shaky at the start of the week, but investors are taking it in stride there will be appeals, so nothing is changing.

but as they move further into the transit delivery brick-and-mortar economy, guys. >> john,n, was gurley optimistio pessimistic to reach a middle ground >> they're always optimistic i think he sees what he's framing as the special interest spending month to try to defeat what the drivers want, with the contractor and what the people overall in california want of course, prop 22 won about 58% to 42%, even as democratic candidates, including president biden, won decisively in california of the his argument is, hey, everybody wants the flexibility here we can figure it out the fight is not over. jon, thank you

jon fortt. when we come back netflix is riding a seven-day win streak, and just announced a new lineup of films as we head to break, check out some tickers ten-year yield holding the top spot, as usual alibaba up 7%. tesla and moderna, and potentially next in line to e se approval after pfizer's vaccine.

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nasdaq 100 a pair of signet stocks, first, morgan stanley initiated planet fitness, and peloton gearing up for the launch for its new treadmill. it also will be launching internationally. that stock is up 6%. wilfred they'll have a four-digit passcode to unlock that safety belt underneath, which is what caused so many safety problems on the original tread. >> in the meantime, netflix riding a seven hi day winning streak julia boorstin has a look at the strategy to flood the markets with the new films julia? >> netflix has 42 original movies debuts in the next four months, double the number of

movies traditional studios would release. it's not necessarily strategic, but more the result of production delays due to the pained the crunch of original films showing some of the $17 billion netflix invests in content annually is now a test of the streamer's ability to deliver high quality at scale. these films are an opportunity to jump-start subscriber growth after that metric lagged the first half of the year the question is whether all this high-profile original content puts pressure on the other streamers, apple tv plus, hbomax, paramonth, peacock, these don't have near this number of films launching this fall

also, it is worth noting there's also a backlog of big budget movies that will also hit theaters this fall many of the biggest releases like "top gun," "spider-man no way home" those have been delayed since last summer. >> looking forward to those. also looking forward to the slate of float nix movies. does it mean less tv series or incrementally more films than in past year. >> it's just more incrementally more films netflix has been done about 60 original english language films a year more are being pushed babb into the back half. if you look at netflix's challenges growing subscribers, they said they didn't have as much amazing content as they usually do, and a lot of it was

simply delayed by covid production issues. wilf there will be just as many new series as well it's just more volatile content part of the streaming wars for competition. >> julia, thanks so much netflix up just a fraction still to come, the ceo of chegg will join us also ahead, a first on cnbc interview to talk about today's announcement that airbnb will temporarily house 20,000 refugees bond yields are moving higher today, the ten-year about 129 or so we'll be right back here on "closing bell.

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welcome back >> hello, everybody. here is your cnbc update more than 4,000 americans have been evacuated from afghanistan. that's out of a total of 10,000 to 15,000. conditions outside the airport do remain difficult for others seeking to flee. there's a lack of toilets and high temperatures are in the 0s. house republicans are slamming president biden for sticking to the august 31st deadline after receiving a classified briefing, house minority leader kept mccarthy said there's no

way all americans can be evacuated in the next week g7 leaders ugh showing concerns european leaders said the kabul airport must be kept secure for as long as need to do complete evacuations. you're now up to date. sara, back to you. we hope to hear from the president 4:30 eastern time today. our courtney reagan caught up with the ceos of kohl's and chewy. what more did you learn? >> we talked about the evolution of the companies, and the leadership lessons 4rer7bd along the way. michelle goss spoke about her partnership with amazon through the retailer's returns program, and that they may be thinking about opening up department stores. >> amazon is always

experimenting, innovating. we'll see, but i don't think it changes our partnership. you know, candidly, we were competing with them before with the online business, but i think it's looking for unique win-wins >> reporter: when it comes to chewy's evolution, the ceo was talking about the possibility of expanding beyond the u.s. and beyond pets, possibly into deliveries for humans. >> the time is ready, we also have our eyes on international expansion. so, for us, it's a matter of focus, doing our best in the pet category, and serving millions could we do it absolutely >> reporter: you with go to cnbc.com forward slash ev evolve-events. >> what type of products would

they sell for humans chew toys? >> reporter: he told a very interesting story about one time they had to figure out how to get a heavy bag of pet food up the stairs to a woman in new york city during a time when her doorman wasn't going to do there. they ordered a pizza, paid extra. she got a fry pizza, the delivery guy got an extra tip. who knows? >> courtney, thank you it sounds like a good one. up next, harry associates' ceo tells us where he sees opportunities overseas and we'll talk about chipotle. we're tracking for record closes for the s&p and nasdaq less than 30 minutes to go

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the u.s. versus the rest of the world. mike santoli had this chart at the top of the show. but oak let's bring in david herro. good to have you back on the show >> has it been difficult to be overseeing international equities, when the u.s. is clearly outperforming not just the market, but the economy.

we were the earliest to have high vaccination rates, most fiscal stimulus, it has been the center of the groan world, but looking forward, it gives me confident that versus a big allocation will be an important, because the things we are seeing -- that we have seen in the united states, what happens when states, lots and areas open, and kind of the book economic conditions, and pent-up demand that slowly begins to get released, these things are happening now overseas, not happening consistently, but we know, as the situation becomes more under control, as the pandemic becomes more under control, with the high amount of savings, the high amount of pent-up demand, this bodes really well for growth these companies have been kind

of -- they have had a burst the second half of last year, beginning, this year, but the economic of european countries have had good -- but to me, it gives you a reason for confidence that, when these second shoes drops, i think it's best to be in position to take advantage of it. >> away european banks, you've been there for a long time do you expect negative rates t go away, though, when growth returns to europe? even though they've had some good performance lately, but that's ultimately the problem. >> there's been three problems, really one, you're exactly right, and probably the biggest factor has the lower and negative for longer interest rate structure two is the slow level of economic growth. number three has been a purposeful and regulatory

mandated build of capital, which has somewhat depressed returns in money-multiplying system. what we have, two and three will begin to reverse themselves. most of the banks were over-capitalized now they have given permission to pay out the excess capital. in most instances i'm talking about high single-did you get, low double digit, sustainable yields one people will make -- wake up that you can lend european government at minus 50 basis points or 30 basis points, or you can put your money into a relatively safe european financial and get 8%, 9% different yield. number two, economic growth, we are seeing it pick up in growth. don't forget europe, giving its high percentage of gdp that benefits from trade, should pick up too as the rest of the world reopens. three, like the united states, i don't believe negative and low interest rates are a permanent

fixture. certainly it's been a long time, but part of this has been, you know, a decline in the velocity of money, as the velocity picks up, with growth and capital being expended, you could start to say some normalization. of course it won't happen overnight, but i think five, six, four, eight, midterm we'll start to see that, and all of the things that were the headwinds will turn into tailwinds, and you're paying 60% of book, with accelerating earnings, which makes it an exciting place to be invested in for long-term value vettors. is credit suisse a recent addition to your portfolio, or have you hal it from before then and through the recent problems they have faced? >> unfortunately, it has not

been a recent acquisition. we have held it for quite some time, being attracted to the business model of a strong wealth manage business private bank in many areas, a very capability investment bank. the two kind of go hand in hand, especially in asia now, of course, we've had this massive problem with risk control, and i think they have addressed it quite agreatively a new chairman started early in the year to be honest, we were hoping for this a year. it did not happen. we tried very hard to get a new chairman in place. we fade despite the fact we have over 34% of the shareholders with us, but the new chairman who is in place now started three or four months ago, and has wasted no time he's extremely capable he comes from -- i believe he is

going to tackle the deficiencies, such that innate strengths of the bank will come through. >> david, finish the thought and then we'll have to wrap it up. >> meanwhile, you're paying around 60% of book value for an over-capitalized bank that should be able to repair its issues and grow its earnings, at least in the mid single digits. >> good to see you, david. >> what do you do -- >> sorry one more. >> i wanted to ask about chinese tech stocks. they've been hammered. there are some signs maybe that the crackdown is ending or china at least is providing liquidity. is that a place you're willing to go? >> we do have some exposure there. we see two issues.

one is the regulatory issues these tech companies have grown quickly, become very large, very important to the economy in more or less an unregulated environment. china has come to realize this, and now they're layering on most regulation, most, by the way, seems pretty useful. you can't put fake reviews on your website, et cetera, et cetera the second part, perhaps is let useful the chinese communist party basically controls the country and the corporate world there. as such, they get worried when very larger than life people, like jack ma, begins to cast a shadow on some of the ccp leadership they don't want that to happen i think the two things are converging, but i think overall, especially given some of the weakness in these very good businesses, that the sell-off appears to have been perhaps a

bit overdone perhaps a bit overdone, and we think there's some attractive places within the seconder you have to be careful it will replain volatile you have to marry that with the valuations and the quality of the businesses that exist there. as such, we do think many of these represent a value proposition. >> david herro, good to see you. thanks very much. >> thank you will for having me. we've got about 14 plenties left of the session, set for two record closes. up next chinese internet stocks soar, and best buy rallies on strong results those stories and more, inside the market zone, which is next

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we are now in the "closing bell" market zone. mike santoli is here to break down the crucial moments of the trading today, and nancy taylor is back as well. we'll kick it off with the broader markets. s&p 500 and the nasdaq both on track for record closes. nasdaq crossing above 15,000 for the first time ever today, and is on track to close above that level. nancy, have you been adding to cyclical stock positions in the last few days? it does seem that the market is breathing a sigh of relief >> yes, we have, sara, but we've also been overweight technology,

which we put in place in the spring we've been getting, as you know, these rolling corrections. on the weakness, we've been adding to energy we added a bit to functions, and added to the infrastructure names that we already owned like jacob, steele dynamics to round out our holdings so we're pretty optimistic about stocks we think, however, we will see a slowdown in growth it's just the math and we sauce a fiscal drag so we are moving or portfolios to growth at a reasonable price, but including overweights in all those sect sectors that i mentioned. >> mike, clearly a positive day, same as yesterday. that said, the vix is higher still. it's up close to that 20 mark, are there any other warning

signs you're keeping as eye on >> so i don't know about warning signs, but they're basically cases and whether this rotation we have seen into the cyclical stuff you wonder if that would have the market pause a by. >> we are some news on war by parker, going public. >> warby parker, the online retailer, filing to go public with an offering up to million dollar shares of class a common

stock, according to an sec filing under the ticker symbol wrby in the private market around $3 billion, according to the last fund raise some of the prominent investors are tiger global among others. seema mody, thank you. >> i wonder if it things how ipos in general are going. probably with this -- it's also been around but nothing that seems like it's necessarily a need for fresh capital, growing revenues very strongly,

even in the past year or so, so i do think it's an interesting name it's going to be thrown into the interrupter bucket, even if the overall categories is not necessarily going gangbusters. >> chinese internet stocks are soaring today. deeb ra bosa has the story for us hi, dee. wilf, two words, bargain hunting. at least some investors are deciding to wade back in, including cathie wood who bought shares of the -- on the back of its results. those shares are soaring up nearly 20% today, alibaba up 10%, pin duoduo is up

today asking for more risk disclosures from chinese firms, so we'll have to see if this is a dead cat bounce. back to you guys. >> nancy, what is your take on some of these names. have you been tempted? >> not yet, wilf which, you know, of and you have itself, sort of the whipsawing of the reg la story decisions now you have the beijing coming out, clamoring for income equality, i think it's best to sit on the sidelines, or give your money to somebody who does this full time for a living. >> the earnings of jd were good. which is also a trigger, buying

back into the spot, a sign that even maybe with the crackdown these companies are going to perform well >> as a group they've been crushed. it makes sense they would bounce alibaba is probably going to continue to trade at some kind of discount to the comps, but how much of a discount is a big question it's like 19 times forward earnings i think the big question is also, if you government has made its position clear that it doesn't -- it considers a lot of businesses to be frivolous, not who they said the resources to be pouring into. at what threshold does it become a liability and the government says, look, we don't want this misallocation of resources and capital in that direction. that's why it makes it a tough trade, even though they're down so much. best buy shares rallying after reporting better than expected earnings and raising

same-store sales bertha coombs has the details. >> best buy didn't just beat expectations, the comparable sales up 20% from 2020 when we saw the big-tech buys surge. overall revenues were up 24% from 2019 with operating income also more than doubling as the company has fewer stores and a smaller workforce. supply disruption? not a problem. the ceo says they concentrated on bringing in as much inventory as they could, and look to be in good shape for the holidays. bebuy looking to take on amazon with exclusive deals and unlimited geek squad support, which is more important when people have to work from home. >> bertha, thanks so much for that one, up about 8% or so today. mike, how has it done over the long term?

i guess it plateaued a bitover the last few months. >> it has. like a lot of those perceived beneficiaries, it paused a bit actually sales have been a bit flat >> which, you know, made a tougher road.

do you know that 7 on% of results are using a vision correction >> that's a high number. i'll get there i've been squinting at the tell prompter every day. it looks like we're headed for a record close what are you watching in the internals? >> for weeks it's been justifiably pointed out, but it's not been not that inclusive that certainly is good news, mitigates some of the thor issues what does it mean? small caps have been leading it means that apple, semiconductors have mostly been sitting it out this is the top 50 stocks. the equality weighted large-cap index up less than 1%.

that means the index is somewhat hamstrung. they're still a hedge ing. >> just under one minute left. we will get to in closing highs, but we have slip, so you can see there from the intraday chart, but basically anything positive for the s&p will be report anything positive at all will be -- the dow the worst of the big three, still in positive territory. energy is the best performing sector followed by consumer distress we do have five seconds in the

red, though, real estate is the worst performer along with consumer staples the dollar is flat today oil is higher [ bell ringing ] as we approach the close, we are getting to report closing highs. the dow is higher. now it's number 250. i'm sara eisen i'm here with wilfred frost, and mike san tollist take a look at how we finished up today the dow closing up 32 points we still ended higher, up 32

points though it was higher for most of the day, as will friend mentioned. the nasdaq up 0.5% you have strength in names like amazon continues to drive the tech firms >> microsoft, moderna, some of the -- make some profit taking there. and also a good comeback down almost 10% from the recent highs. now only 5.5% from the recent high says. investors are turning attention to a trio of big earnings. nordstrom, urban outfitters as

well as homeowbhomebuilder. airbnb announced today that they will house afghan refugees. how will it work first, mike, it's good to have you back to summarize the day's action and why we lost a little steam into the close. 26s mostly upward drift. there wasn't a lot of it you look at the s&p, spdr etf, qqq etf, so clearly allowing the market to track a bit higher also, at the same time you see a bit of a restart of the meme stock trade, some of the more speculative frothy stuff, and has usually coincided with the

overall market being a little too calm and boring, or about to, you know, have a bit of a rough patch. i think mostly positive inputs, when profits are up when the fed is nearly talking about doing something, it's hard for the overall market to get into a lot of trouble what this means is people have allowed their equity exposures to go higher than they otherwise might have expected. 5% declines haven't been anything that really chased you out of there fundamentally i think the question is how much longer will people allow that to happen, basically become that much more exposed to equities as they spiral to new highs. >> delano, does that make sense to you that these record closes are justification? >> yeah, 100%, wilf.

>> yes, we saw pretty much all sectors going up higher. so i think the market -- there's a lot of liquid out there. now goldman sachs is now requires proof of vaccination status, in light of 9 full fda

approval goldman sachs, the first of the big banks as far as i'm aware. to require status. >> didn't morgan stanley do this a few weeks ago? i feel like they have also been vigilant on that >> yeah, they definitely have been encouraging, for one. i don't know exactly the status. clearly it's part, nancy, i was going to say, of a move relativelily wide from corporates and government organi

organizations. >> i think that's right. i think the market is much more concerned about liquidity, and in terms of what's going to drive us forward which is about 45% above the five-year a everyone prepandemic, will continue to pus a floor in the market. i imagine the next thing we'll be worried about is, you know, the 3.5 trillion spending bill and what the implications are for corporate tax rates. for now, i think the delta variant is more or less priced

in. >> so what stocks do you buy i think we're late, and we really like the megacap. it's really performed well since august you know, that sector is about 40 times -- you see spaces like real stade, they're trading higher so they're still in a good position obviously it's ticked up a little bit, but down about ten-year treasury about 1.1.

mike, are we seeing them do better sort of a coincidence that some of the stocks with decent yields are picking up i think it's an overall team that's the space where we're at. so the dividend achievers, they have kept pace with the s&p roughly this year so i think it's not necessarily chasing for this part of the cycle >> gamestop closed up today almost 30%, amc 20%. there's never a rhyme or reason, but clearly the market is in a

better move. >> the fact they both moved this much on a given day, with nothing actually going on to unify them shows you it's not anything real. it's a collective ac. these are at least companies that used to have them share higher recently, so it's game on i feel like it's not worth necessarily really barrels ahead and sucks in a lot more capital than it is so far. >> delano, switching focus, what are you telling your clients to do in the cryptospace at the moment

that risk profile for a lot of people to have more liquidity, when you have more people investing, it has turned just seeing the big that's still as area. they understand, the yield in bonds is not doing anything for them right now it has it for them >> kind of a report on the bottom and top line.

they did beat, reporting 3.66 billion, that's just about better than the 3.36 billion expected earnings a big blowout, compared to an estimate of 27 cents gross margins kept in better than expected on the lower mark markdowns, but the sg & a totals, the costs were a bit higher digital sales up 30% from a year ago. eric nordstrom say in the release that anniversary sales were up just 1% compared to 2019 they do see things continues but i'm going to go back and climb through the rest of the release here back over to

>> bertha, thank you don't miss the interview with eric nordstrom right here on this show tomorrow it was a good report, a good read on the consume ir >> it's been sideways. like a lot of these that sort of came back, so a lot of excitement about apparel companies doing well, and there is definitely some, you know, some momentum behind the shopping flow at this point, but delta kind of paused that a bit. i think you have to figure out what the fourth quarter holiday will look like in that context let's get to eamon javers. . wilf, we have enough votes

in the house of representatives to pass the framework for the spending package there was some drama about this vote all day as you look at the house floor, you'll see nancy pelosi once again has gotten what she wanted here out of a situation where it wasn't clear she would at all. the mod rule democrats say, the progressive democrats and the speaker said, no, no, we want to wait until we get a vote on the budget framework in order to move forward on the infrastructure proposal. the deal that pelosi struck today between the mod rule and liberal wings of her caucus was to do this vote now that just passed a few seconds ago,which by legislative sleight of hand was deemed to be the budget framework itself then also agree

to give those moderates a guarantee on the vote of the infrastructure package she has just done that so there you have it, a vote now to move forward on the budget framework, also a commitment from the speaker of the house to get that infrastructure bill passed by september 27th, so some artful dealmaking here in a very complicated three or four-step process that, if pelosi is correct will give her big wins on infrastructure, and also what they're calling the human capital spending piece eamon, thanks so much. we are expected to hear from the president in the next 15 minutes or so. no doubt he will reference it, albeit the remarks already

expected to be on afghanistan. our thanks also to nancy and delano, for joining us in the market zone. we'll have to leave that discussion there you want next brian chesky cpoe.t decision, plushitl we're back in just a couple we're back in just a couple minutes. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that.

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joining us now is airbnb ceo brian chesky thank you for joining us on this big announcement.

>> thank you. >> unfortunately, there are thousands, if not millions of displaced people around the world. why did you decide to step in. >> we've been providing housing for the last ten years to temporarily displaced people, hundreds of thousands of people. over the weekend we had provided housing for a couple hundred refugees, and we started getting a huge amount of interests in others we started getting in contact with the biden administration. we've been in church with the resubtlement agencies. people were asking us for help hosts were reaching out wanted to provide housing we thought if we're already providing housing for a couple hundred refugees, this is probably the greatest humanitarian crisis in our lifetime with can provide temporary housing, so let's add a couple more zeros

that's where today's commitment came from. >> i was going to ask about the hosts. unlike other hospitality companies, you don't own the properties who will be housing the refugees for how long tell us more about the logistics. >> here's how the logistics work the resettlement agencies, church world service, international rescue committee, they have a long history of working with governments to take in refugees or people temporarily displaced, and match them with communities. what they are doing is matching them to airbnb what we're going to do is work with our mid onof hosts around the world, you know, tens of thousands of them will provide housing. we, airbnb, amyself personally will be paying for the stays any refugee will not pay for my moan for these stays the hosts can, if they want to provide housing for free, but if

not, we will pay for them. the housing will be in the united states and countries around the world we are in the process of trying to match thousands of an gan refugees with hosts who have already stepped up to provide housing. if anyone wants to provide housing, just go to airbnb.org, list your home and we'll do the rest >> it's really amazing to see and hugely commendable going more into the weeds of it, because it's interesting how it works. does the host have to say they specifically want their house to be used for this, or whether you're saying it's governments, itself or the company is willing -- can you just book refugees whether they were listed as hole gale goers or refugees >> they have to tell us that they want to host refugees, because we want to make sure a refugee family is actually wanted and invited in the

community and that the people housing them essentially know what they're getting themselves into it's not a regular traveler. their needs are quite a bit different. >> anyone can step up. if they already have a listing, all they have to do is designate it for a purpose, but do have to designate it for this purpose. >> this question might be too early to answer, but how long do you think the stays will go on for? >> that's a good question. we don't even know the full cost, because we don't know how long they'll need housing. our general principle is we'll go where the need is what i will say is i wasn't expecting the response we've been providing housing for people who are temporarily displaced for ten years. we have housed about 25,000 refugees since 2017, but given the response, you know, we'll

do -- we'll go where the need is we're going to take guidance from partner organizations they'll less us know how long they need housing for. eventually they do need permanent housing and do need to start a life somewhere we're just a bridge. how have you found the interaction with the biden administration a lot of scenes have been chaotic, disorganized. are you finding it easy to deal with them in terms of getting people out and getting them on planes to these homes that you are planning to? >> absolutely. absolutely i mean, i had a conversation with my cofounder just a few days ago we had provided housing over the weekend to about 200 afghan refugees at that point we started sees a much larger need jill and i wrote a letter to president biden yesterday.

within i think, like 18 hours or less of me writing a letter, we were able to work with the administration we didn't want to do this commitment if it wasn't done in collaboration with the biden administration we wanted to do something they thought would be helpful they had yes that's the only way we could have done an announcement this morning. >> as you said, you don't know how much it's going to cost, so you don't know how much it will go on for. but what would be the maximum amount you're willing to see this cost to your company or personally is there a limit you have in mind >> i don't see a limit airbnb.org has a refugee fund. they raised that money through airbnb, through partners, through joe, i, other partners i put in additional money, but we're going where the need is. if we need to go bigger, we'll go bigger.

the costs prime quarriesly will come out of donor, come out of dot-org, myself, joan and others >> you called on other company to say pitch in and help what did you have in mind? what did you want to see >> you know, every company has something that's kind of like their own super power. i guess that's why they exist. i think we're in the best of the world to provide housing around the world. hundreds of millions of people so when people need housing, that's how we step up. every single company that is hair own way to step up. i know a lot of companies will step up. i don't doubt that tons of companies will step up the only thing i would say, because we have a front-row seat to this very unfortunate crisis is that time is of the essence every minute, every hour the clock is ticking if people are compelled to step

up, i would say now is the time. there's not an hour to waste but everyone should look inward and ask, how can you help? i think every even can probably do something. one final question, less important topic, but still significant, if it's okay, just what the latest trends you have seen in light of this delta spike and now signs of it perhaps peaking in the u.s. across your bookings in the u.s. in terms of covid over the last month or so? >> well, what i would just say is the longer covid goes on, the more the world is not going back to the way it was. i don't think any of us think the world is ever going back to the world before the pandemic, but i think the longer this pandemic goes on, the more we get used to working on zoom, not fully returning to the office, living more remotely what we are seeing is continued

popularity and long-term stays we're seeing a lot of companies where here not even returning to work with startups so the longer this goes on, the longer -- the more we get used to the world as it is and now as it was, so i think that will lead to more personal inept changes in travel. i think it's going to mean travel and living continue to blur i think that business travel is never coming back to the way it was before the pandemic. there would be a new kind of business travel. it would look very different than before, just like the world will look different. obviously it's a very hard time for millions around the world. but in every crisis is an opportunity, an opportunity to step up, an opportunity to redefine your business that's what we've been able to do and i'm sure we'll continue to do that. >> thank you for joining us today, stepping up in a big way. >> thank you. up next on the show, we'll

talk toically to chipotle's cfo. we'll be right back. 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)

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welcome back shares of chipotle rallies by

more that 40%. the strong performance comes despite recently raising the menu prices by 4%. joining us in a "closing bell" exclusive is chipotle's cfo jack hearting, who is also a member of the cnbc cfo council. thank you for joining us clearly with the price increases you're feeling the pressures on the supply side. i wonder the compact they're having, relative to five or ten years ago before this digit at growth you have seen. and labor has had a big impact we weren't losing people to

places down the street our employees appreciate the benefits we offer, they appreciate the career path we offer, because we're growing so much there's opportunity to move into management roles. but $1.50, $2 an hour matters. so we raised wages and prices. it is going to have a slightly negative impact on our margins, but we kept our profitability about the same and we thought it was the right thing to do. >> really that 4% was 100port labor. there are inflation precious as well it's really tough to tell how much is transitory my thought is anything that is driver by higher wages

so when they're having trouble or challenge just to meet the demand and it's because of labor, that's likely to result in higher labor costs. in terms of short supply, in terms of, you know the ships waiting in pores, having challenges to getfullies from outthe u.s., that's likely to be transitory, so we'll get a better idea of how much will stick, and how much will go away. >> now that you have won the loyalty, jack, from employees, do you feel it's time to require vaccines for your workers? brian nichols said to "the washington post" two weeks ago, he wall street watching for the fast approval of the vaccine well, we got that now. >> we were very excited about that it was largely expected, as we all know, but it's still an important milestone. we're hoping, whether it's our

employees or customers, anybody on the fence will hopefully get off the fence and get the vaccine. we know that that's the best way to protect the health and well-being of our employees. in terms of turning it into a man mandate, we're in active talks we're watching what others are doing. it looks like already people are turning the encouragement into a mandate. we also want to gather feedback from our employees, that are newly hired, all the way to our folks in the office. we're going through that discussion right now, and, you know, in the near future we'll have a decision. i understand you're considering plant-based chorizo. talk us through that and more broadly the level of demand and appetite for those plant-based meat alternatives. has it plateaued at all?

is it still very strong? >> i think i think we're most excited about, is we did it the chipotle way, meaning it's all ingredients. there's pea protein, tomato paste, pepper and chiles, of course so there aren't any stabilizers or press serve tiffs, colors or things like that i think that will separate our version of a plant-based offering than maybe some of the other out there we have hear a lot of excite from our vegan and meat-loving customers. whether they're interested because of the health reasons or environmental, there's an excitement about it. that's why it's in tests it's in two markets now. wee find out how much our customers love it, and understand how our crews respond as well. it's only been in the

restaurants for a few days now, but the anecdotal response so far is a lot of excite >> jack, thanks so much for joining us good to see you. >> thank you, guys it's time for a cnbc news update with shepard smith. hi, shep. >> from the news on cnbc, after hours of delays and pushbacks, president biden is expected to speak momentarily on the situation in afghanistan the white house says he told gg7 leaders that they're still on track to withdraw on august 31st, if the coordination from the taliban continues. breaking news just moments ago out of washington, the house of representatives voted to pass the $3.5 trillion reconciliation blueprint to advance the

bipartisan infrastructure package. this after house leaders struck a deal with moderate democrats. in california, man, more than 3,000 firefighters and emergency workers are trying to keep the caldor fire pushing towards lake tahoe only 9% contained, at least 455 homes have been destroyed. a forestry officials says the caldor fire is now the number one priority tonight they're calling it a digital dunkirk, an effort by veterans to get their afghan partners out and to safety we'll have a report just outside the razor wire at the kabul airport, on the newspapers, right after jim cramer wilfred, back to you shiep, as always, thanks so much the ceo of cgghe ahead

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welcome back, we have an earnings alert on toll brothers. >> wilfred, it was a strong q3 eps came in at $1.87 per share that's on home sales revenues of $2.23 billion along with expectations net signed contracts were up 35% and q3 contracts in both number and dollar volume were both company records. the ceo doug yearly said the demand continues to be strong. he also said our record backlog, focus on capital and operating efficiency, and the continued strength of the housing market, give up coached our full fy22 margins will significantly exceed the margins we project for 2021 fourth quarter, and

beyond so, again, looking very positive we noted with new home sales this morning, the price of a newly built home jumped 18%. that's the median. that reflects toll brothers being the luxury homebuilder their average price was $840,000 back to you guys jae, very high prices. thank you. education technology chegg, and the ceo on whether the company will offer more perks to 'lbetrt le wel right back.

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u.s. student debt tops $1.7 trial yoon chegg launched its own replacement plan and has paid $1 million toward its employees' student debt just recently announced plans. , joins us to discuss this is dan rosinzweg. >> it is near and dear to my heart, because we're bankrupting 9 future of america based on the

way, as you pointed out $1.7 trillion in debt 45 million americans have it, 5 million americans over the age of 50. 40% never think they'll never pay it off it's beyond a crisis it will cause economic collapse, and is adding to depression, anxiety, drug use, we've got to solve it talk about what you have found there's a labor shortage it's the right financial thing do, the right moral and ethical thing do and a greet retention and recruiting tool. we've been contributing,

and -- what we said is he will help you pay off your student debt they have already had it paid off, and the longevity of those people who are participating in the program is already -- noticeably higher, so it makes a big deal in recruiting, in retention, but also, we're the beneficiaries when these young people get educated we should be helping to pay off their education. there's a lot of government should do. we're not incented to do it, which is ridiculous. we can pay $5250 a year towards continues education, and the employees doesn't get tax odd it as if it's a benefit, whereas if we were to pay off the same amount, which is what we do annually, they do count it as

taxable. we lobbied before covid to get it as a permanent law. we got it in the c.a.r.e.s. act, but we need to make it per permanent. >> well, on the other side, the colleges and university side, should there be more pressure for them to cut the fees they charge or take some responsibility for the jobs that their students need to get on the other side before they collect some of those fees >> look, wilf, you are exactly right. think about it this way, 43% of all students that go to college don't get a degree of thousand that do, overwhelmingly it takes about six year the majority are graduating with some sort of government debt, which cannot be refinanced the average salary when they graduate is $25,000. it is impossible if we really want to reform the

education system, it's about what is return on the investment for the taxpayer helping to contribute or the student paying on their own imagine a scenario where colleges were required to cap the expenses, where they were required to have graduation rates that are respectable, not nearly 50%, which is what most state schools are. we look at employability and the amount an employee got paid in relation to what they got paid to get that education. those would be the things that finally reformed education making something free isn't free if you go in and don't graduate, you don't get a degree, don't get employed, taxpayers will be very reluctant to pay that yes, we absolutely need to cap the cost, reform it, hold colleges accountability for graduations and for job placement. >> so the biden administration did just announce cancellation of i think $5.8 billion for people with disabilities, third

time they have made moves like this, which is a drop in the bucket do you see any wider movement around a mass-skate debt forgiveness? >> it comes up, because it is just so huge we know that even before the pandemic, 40% of students that carry debt already were behind on their payments. imagine when this restarts in september how far behind and how many people aren't going to pay. that particular group of people, thank goodness these did it. there was no way -- that was a group of disabled people who were never going to be able to get the return on the cost of them getting that particular education so, you wonder sometimes how they programs are designed there's a good intent, which is how do we improve diversity in education to advance themselves

into the middle class and beyond those are worthwhile goals get the ability to teach online? it should be incredibly cheaper to educate students online so why aren't we doing more and more on that 75% of all students wish they were in a hybrid situation with when there was no possibility for them to return on it. >> which all gets back to chegg and online education, which we'll talk about next time you come on, dan thanks for joining us. d dan. >> and how great is brian chesky >> very cool good, keep us posted on that have you back on

>> here, here. moving on. some historically black colleges and universities are using federal funding to help erase student debt sharon epperson is here with that story >> federal pandemic relief aid has enabled the u.s. department of education to make significant investments in underresourced schools including many historically black colleges and universities more than 20 are using those stimulus funds to help alleviate students burdens by paying out tuition and fees giving them a fresh start. clark university in atlanta, georgia was one of the first to do so. >> we're committed $5 million assisting nearly 2,000 students account balances we are reinventing the college experience so our students can

graduate nearly debt free. >> students said they were stunned and relieved >> a lot of students were contemplating how they were going to start fresh come up with thousands of dollars. with that announcement, that definitely allowed some students to just breathe. >> many hbcus have seen an outpouring of support from private donors atlanta's president said the school has received a $15 million gift from mckenzie scott and 1 million from the zuckerburg initiative. it's taking hold in many schools. we have a lot more on cnbc.com/investinyou >> good news thank you. big moves after hours on earnings mostly moving down up next, the stock that should be on your radar in tomorrow's session. as you can see, the retailers getting hit. nordstrom and urban both lower

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nasdaq hitting a fresh record high in the session today, finishing up above 15,000 we've got some key tech earnings

to watch on deck tomorrow, numbers from salesforce, snowflake. nasdaq up half a percent, mike, but the small gain in the s&p enough for a record close there as well and as you were saying, whether we look at it three months, six months or ten years, the returns pretty impressive for these markets. >> it's really looking a lot like 2013, 2017. these other prior post election years where there were no big pullbacks. at least so far, it's conforming to that. today again, smaller stocks had a bounce industrials, cyclical stuff getting a reprieve the question is, is it a reprieve or a pardon in for an endure rotation or trading around the noise >> how does it set us up for jackson hole, which is the big event of the week. and chair powell is going to be speaking it feels like since they went

virtual, he's not going to announce the taper >> between that and the idea, you want a couple more job reports before you get consensus on the committee to signal specifics about the taper. some of the suspense during that speech, but not all. >> not all not ever jackson hole, always a fun one that's going to do it for us tonight on "closing bell." "fast money" begins right now. >> this is "fast money." i'm melissa lee. tonight's lineup -- tonight on fast, the biggest bull on wall street says let the good times roll wells fargo's chris harvey sees another 8% upside for stocks by year end he'll tell us when we'll get there and when he see it the record rally running out of steam. plus, the rally surging. we'll break down how the traders are playing this move and we're all over the after hours action. shares of toll brothers an