same with the new venom movie. all of these blockbust ers coming out and maybe people will see them in the theaters >> the people angry about being diluted, are they richer now than they were before? >> take a look at the share price, yeah. >> amazing to see it still hold up at these levels dom, thank you >> "closing bell" starts right now. tyler, tkelly, thank you i'm wilfred frost. the major averages seeing pressure today the dow in jeopardy of turning in its third straight session of declines i'm morgan brennan in for sarah eisen. the latest read on job openings showed how tight the labor market really is with nearly 11 million open positions meantime, the fed saying in its beige book that sxhk growth has down shifted in light of covid concerns crypto remains in focus. today coinbase is lower on a

nigh from the s.e.c. and small caps are getting hit hard down more than a percent. we have 59 minutes left to go in the trading session. wilf >> coming up, wall street heavyweights are weighing in on whether americans should invest in china hedge fund manager kyle bass will join us with his thoughts plus, live nation expects millions of fans at its festivals in the second half of the year but will the delta variant keep customers away we'll have the company's president. let's get to the big stories we're watching mike santoli and seema mody with the latest on the brewing battle between coinbase and the sk. mike, what are you focusing on >> morgan, continued hesitant feel in the market some unease out there. more strategists coming out saying brace for a little bit of choppiness in reality, not creating that

much net damage at the index level. certainly in defensive leadership, the majority of stocks down today. we've absolutely kind of capped out and stalled to some degree if you look at the s&p 500 what would qualify as anything more than a routine pullback i would say 3% in terms of the s&p 500 gets us back down to the 50-day average we've done that six times this year this is the -- sorry there's the s&p 500. so 4400-ish is what we're talking about. a little more than 4400. that's your 3% from the highs. it's where the 50-day average is, where the market broke higher several weeks ago that would be your first stop to say, is this just another routine wobble in this up trend or perhaps is it something deeper and nastier let's go back to that nasdaq 100 chart. this shows the nasdaq 100 against a shorter term moving average. 21 days. so it's essentially a four-week average. the reason, it's on a tactical basis, the one the index returns to once it overshoots to a fair degree if you look at these spots here,

that's where it opened up a gap of 3% or so above there. we got there at the highs a couple of days ago so maybe it's a little gravitational pull and that would be when you'd say maybe we have to have one of these little shoots below that justtactically we're talking about. you have a lot of the big nasdaq stocks they need a breather we'll see if the rest of the market can continue marshalling the forces behind some support or not take a look at the industrial sector components of the industrial sector overall, holding pretty steady just going sideways. that's the xli the equal weighted industrials, rgi. that's more clear view of the average industrial stock but transports have had their correction kind of slanting lower and then aerospace and defense notably weak, whether it's budget concerns or our de-emphasis on military spending or the aerospace cycle having a tough spot right there not a lot of nasty messages

necessarily in terms of the global economy from that equal weighted industrials but we know what's going on with transports and aerospace and defense. >> i love that you highlighted both of those groups right there. but i'm curious. is it like the green day song "wake me up when september ends"? in many ways you can't look at historical precedent just given the fact we're moving through a pandemic and an economic recovery however, that ends up shaking out. but is there seasonality to be factored in here >> it is certainly a component of it or a component of people's willingness to get defensive so if maybe a little bit of a chicken or the egg in terms of, do people start to feel like they have to worry about down side when we get to september and have the slightest wobble like we have now or is it, in fact, something real where you have these seasonal flows, you have a very tricky exercise in trying to figure out just exactly how strong or weak the economy and corporate earnings were going into very late summer.

that's one factor in all of this and usually the market has to reload buying power, typically, if there's going to be a year-end rally and maybe that's all part of that process >> mike, thanks. just lower by 62 points on the dow. shares of coinbase moving lower after the company received a notice of possible enforcement action from the s.e.c. seema mody has that story for us >> that's right. the s.e.c. threatening to sue coinbase over a new product that would have allowed customers to earn interest on things like staple coins brian armstrong firing back in a series of tweets last night calling the s.e.c.'s actions sketchy, pushing back on the s.e.c.'s claim that coinbase's lending program qualifies as a security millions of crypto earners have been earning yield on their assets it has recently caught the aengs of regulators. they have been facing pushback from a handful of states, including new jersey

high-profile names in the cryptocurrency industry have been criticizing the s.e.c. for not providing clarity on how to regulate crypto deposits and loans. if we end up in court, armstrong said we may get the regularulatory clarity we are looking at shares of the world's largest crypto exchange falling by as much as 2% taking a step back you'll see it's down as much as 40% from its 52-week high wilf and morgan? >> seema, it raised some eyebrows with the commentary words like sketchy in the twitter thread i wonder if there are other examples with some of these companies more newly public, perhaps, that we can point to as other examples of ceos that have taken a firm stance where regulators are concerned >> the ceo of grayscale among others in the cryptocurrency space that have been voicing their concerns about the lack of clarity from the s.e.c

many looking at this story with coinbase versus gary gensler of the s.e.c.s too whether this tells us lawmakers are planning to enforce the space much more closely going forward. we know bitcoin are not securities are the crypto a security and does it warrant some type of regulation if you own about $100,000 of cryptocurrency and you plan to hold it, you don't want to sell it, should you be able to earn interest on it use it as collateral to then buy other things these are questions that the industry says yes, they should be able to do this the question is what kind of role are regulators going to play >> many in the industry say they'd welcome some form of regulation the devil is in the details whenever that's the case seema mody, thank you. after the break, is the vaping industry about to go up in smoke the fda is poised to make a pivotal decision on vaping products including juul and whether they should be sold to consumers. we'll bring you the latest on

that and we'll ask the ceo of aurora cannabis how that decision could impact the cannabis market as well. you're watching "closing bell. all the major averages lower stay with us my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement. ♪ i wonder how the firm's doing without its fearless leader.

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a long-awaited court-ordered deadline to give an answer on whether jl e-cigarettes and other vaping products can stay on the market. juul's application one of the most closely watched cnbc reported the company had a $15 billion valuation. that would spike to $38 billion when ultria took a 35% stake the cdc reported the first death related to vaping that was later tied to the use of cannabis with vaping devices still, juul's valuation would continue to decline. they expect juul's application to be approved and many smaller players denied because of the cost and complexity of those applications could be a big day for tobacco stocks making them additionally attractive in the current bond yield environment. >> frank holland, thank you. how will potential vaping regulation impact the cannabis industry, if at all? joining us is aurora cannabis

ceo. before we get into the broader trends, i want to get your reaction to this i realize it's more focused -- we're talking about regulation specifically focused on tobacco, but given the fact so many do vape cannabis as well and back to 2019 when there were counterfeit cannabis cartridges causing all kinds of issues and fatalities and the lake, too, are you watching this ruling very closely what could it mean for cannabis? >> i think it's a great question and i really think it speaks to the value of regulatory alignment. a company like aurora that's had such a strong relationship with regulators across the world, it really -- companies can be responsible, have foresight and we're keeping an eye on it while it's not as relevant to cannabis given the small size and given the way in which we and other responsibility companies have gone about it,

clearly you want to see how society and key regulators are looking at it because it has an impact on all the evolutions and regulations. >> let's talk about aurora and specifically aurora's presence in the u.s i realize cbd is the focus currently. but let me take a look at whether it's a stock chart of aurora trading here in the united states or some of the other canadian names as well it's been a volatile year. expectations that you could see federal decriminalization and even potentially legalization here and that could mean meaningful expansion of a company such as yours into the u.s. market. how are you gearing up for that, preparing for that, strategizing for that and i guess, what would you expect the time table to look like? >> yeah, so i think first and foremost, it's a big world out there. and there is progression all around the world we're now number one in germany. we've had great success in israel you got three of the tenders in

france and so when you look at the global cannabis market, it's interesting to only look at the u.s., but what you have to do to be successful in those highly regulated markets is exactly the most important investments you have to make to be successful in the u.s. i'm a strong believer that you'll see medical first at the federal level in the u.s., and clearly a company like aurora which is the number one in terms of global cannabis sales from a global perspective will be a player we also -- things around biosynthesis and genetics and all of those will be relevant in the federal framework. i also expect the fda to be deeply involved in the federal regulation of cannabis the history with health canada and israel and other regulators does set us up well. clearly because of the stock exchange positions we can't participate directly in the way we'd like to but we are supportive of the act that will allow us there's no doubt companies like

aurora that have been successful in canada will play a role in the u.s. >> so that's interesting because i feel like it was perhaps a slightly more realistic, less optimistic view than some of the other cannabis ceos that come on in terms of the time frame you're expecting for full federal recreational legalization in the u.s., if you're focused on medical first. when do you expect to get that full recreational federal legalization >> well, i think first and foremost, i think you'll see decriminalization plus a medical framework. many of the states, including key bellwether states like florida and virginia in the south have gone that way also expect the fda to be involved that allows the federal government and key regulators to be involved in this process. typically after about a year to maybe two years you potentially then could see -- that doesn't preempt the state rights to have the vibeiant

state by state rec business but i think you'll see medical first and a company like aurora that is number one from that standpoint would support a highly regulated market. that's my expectation. i know it's maybe a little longer than most would think i would remind people that huge international markets, germany, france, uk, netherlands, israel, are progressing very nicely. for the right companies like aurora, there's a big world out there to garner economics. >> i wasn't going to go down this line of questioning because i feel like we've been over it before so forgive me for doing so but at the top of the interview in response to vaping, you were talking about the importance of being a responsible corporate citizen and leader so i just wonder whether you do understand any of the arguments that some people put out there as it relates to legalization of cannabis is to whether that is irresponsible. >> listen, i understand the position i would also mention if you look at places like health canada, the imca in israel or germany,

these are highly regulated industries adult-only sales face-to-face transactions. and they are being done in a very thoughtful way. i completely am respectful of the difference of opinions but i think the evolution of these products being sold responsibly in a thoughtful way in a medical and recreational channel does demonstrate it your point on vaping is a fair one and a fair example of what happens when potentially companies don't espouse those principles aurora is a science-based regulatory-forward company that's doing everything to align with those regulators. and hopefully those will win over those people who think we're not being responsible as we sell to adult oriented. >> thanks for joining us great conversation >> appreciate it after the break, leslie picker will join us with some excerpts of her conversation with the ceo of carlyle as he marks one year at the helm what he said about the

environment for deal making and how covid has changed the game, next as we head to break, check out some of today's top searched tickers on cnbc.com. the 10-year yield tops the list. as apple and ford and coinbase round out the top five ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ incomparable design makes it beautiful.

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welcome back shares 5 carlyle group have doubled since quson lee took over one year ago. leslie picker caught ip with him to talk about what he's learned in the last year and how the pandemic has impacted deal making she joins us now with highlights >> hey, morgan to put carlyle's recent gains into perspective, the company is up 123% since its ipo nearly a decade ago the appreciation coincides with lee's tenure as sole ceo, a turn around driven by a focus on the core buyout business and

shake-up in corporate governance he told me that the pandemic has forced the industry to do everything quicker >> we're moving fast in order to compete and invest well but we're not cutting corners. you have to do the diligence, and you have to be very thoughtful know well ahead of time what it is you want to buy so that you can move quickly and our platform positions us well to move quickly but there are some folks probably who are reacting, or they're trying to keep up. and i think in those instances, mistakes can be made. >> we covered a ton of ground from taxes to the modern-day version of private equity to esg. subscribe to our newsletter at cnbc.com/delivering alpha newsletter be sure to catch cnbc's "delivering alpha" conference september 29th we're bringing together the biggest names in the investment community for high-level

discussions on the critical issues facing investors in today's global economy register today at deliveringalpha.com. many big names like kewsong of carlyle. still to come -- live nation's president on whether the covid surge is keeping people at home and away from live events. plus george soros criticizing blackrock's china investment this week calling them a tragic mistake. hayman capital's kyle bass will give us his take on that very debate in just a few minutes here's a check on bonds. yields moving lower today. 10-year around about 1.33, 1.34. "closing bell" back in a couple.

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32 minutes left in the trading session. all the major averages lower, although off the lows of the session. let's check in on shares of general mills jumping after updating its guidance. that company says its fiscal year 2022 earnings in organic net sales will be toward the higher end of the range. those shares higher by 4%. goldman sachs also downgrading universal health to sell from neutral cutting its price target they cite cautious guide asbesance for that stock down 4%. time for a cnbc news update. rahel solomon has it >> new orleans has lifted its nightly curfew it was imposed eight days ago to

combat theft while the city was completely without power after hurricane ida. gasoline is still in short supply gas buddy.com says 56% of gas stations in the city are dry across louisiana, some 320,000 utility customers are still in the dark in ohio, a solemn welcome home for the remains of a navy s.e.a.l. killed in afghanistan he was one of 13 u.s. members killed in a bombing during the evacuation he planned to make the military his career and the biden administration says it's taking a tougher stance toward meat packing companies that it says are causing sticker shock at grocery stores and supermarkets. the white house says it will crack down on illegal price fixing and use stimulus money to help small meat producers. you're up to date. wilf, back to you. shares of live nation are up 50% from a year ago although struggling to go higher in recent months amid the rise of the delta variant. 8 million fans attended events

in august with september on pace to reach the same level. all of their u.s. and uk venue are fully open joining us now is live nation entertainment president. thank you for joining us i reference the share price not taking -- continuing its rise over the last month or so. but have attendances at your events kept in line with your expectation or has delta derailed them? >> the momentum is back. we're feeling it every day with our shows. 8 million people attend our shows in august. a couple of weeks ago, two weeks ago in the uk, 850,000 fans attended over the weekend. here in the u.s., all of our festivals, lollapalooza, bonaroo, governor's ball selling out faster than ever which is what led to our highest ever deferred revenue at the end of the second quarter. we've only had a 2% cancellation

rate that's gotten a few headlines. but in reality, our attendance has been great the shows have continued the fans are glad to be back when you hear the artist on stage, they're excited so it really does feel like the momentum is back in the industry >> just remind us what those numbers, the 8 million number that you quoted for august likely for september is relative to 2019 and how hopeful you are that 2022 will be a totally normal year. >> yeah, sure. those numbers are still tracking below 2019 but they're obviously dramatically up from 2020. we expect as we stand now that 2022 will be bigger than 2019 was. our concert pipeline is up double digits from this time in 2019 our sponsorship commitments are up double digit. ticketmaster in addition to benefiting from that increased activity has added over10 million new tickets so everything is stacking up for a

tremendous 2022. >> i'm going to ask you the same question i asked the ceo of imax after they had a strong labor day weekend in terms of box office at a time when wall street is very concerned about economic growth slowing, impact to labor market, fears about coronavirus and specifically this delta variant and the impact it's having on consumer sentiment as well based on what you're seeing at live nation, is it fair to say that consumers, from your standpoint, shaking off those fears? >> well, consumers are showing up and spending money. no doubt on that as we look at what happens when the fan comes to the show, our amphitheater base, hundreds of shows this summer, spending is up double digits we look at all of the festivals throughout the uk. again, spending on food and beverage up double digits.

lollapalooza spending up and bottle rock this weekend, over $80 spend per person, per day, updouble digits from this time in 2019 so we were seeing the consumer spend. i think that the vaccine policy that we have, people have to be vaccinated or tested it's showing to be a huge success. i feel very proud the music industry is leading the way in terms of the requirements which has made it safer to gather and has driven people to get more vaccines over 90% of the fans were fully vaccinated 12% of them said they got vaccinated because they wanted to come to the festival. bottle rock was 96% fully vaccinated so we're seeing people willing to get vaccinated to come out to go to events, making it safer so they are showing up and spending when they're there >> on that point, joe, to what extent have you had to turn some potential attendees away

and how have they taken it when they've been told they can't come in? >> sure. we've been marketing pretty heavily. it's very low. less than 1% are showing up and don't have either the testing or the vaccination requirements we've usually figured out some place nearby they can go and get a test and still get back and attend the festival or show. so we're working with them we've also been happy to give refunds to people that weren't comfortable with the policy. because we feel it's in our responsibility and part of what we need to do to make sure that everybody can gather safely. and the tests, the results have proven out that it has been successful program the city of chicago came out and stated they didn't see any issues, post-lollapalooza in terms of any increases in covid. and same in the uk they've been doing a very comprehensive test they are studying all the different shows and the sporting events and have found they haven't had any major issues >> that is so great to hear, joe. we can talk about pent-up demand

for consumers. what about from sponsors seeing that, too >> absolutely. the sponsorship is up double digits for '22 versus where we were this point in 2019. the brands are eager to reconnect with the fans. they've been sitting on the sidelines for too long as well every executive that i talked to is looking forward to getting their brands reconnected with music fans >> joe, thanks for joining us. much appreciated >> thank you guys. >> with 25 minutes before the bell, here is where we stand with the major averages right now. everything is in the red, although off the lows of the session. the dow down 91 points right now. the s&p is down 9 points 4510 is your level there and the nasdaq taking a breather after a recent outperformance with that average down about 0.7% or 103 points shares of pultegroup plunging

after that company revised guidance we'll dive into that move and the state of the housing market and more coming up after the bell, earnings from rh, lululemon and gamestop. shares of gamestop are up more than 930% year to date we'll break those numbers down as soon as they cross.

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we are down about 0.2% on the s&p 500 as you can see green sectors to red sectors, roughly split. utilities leads the charge today up 1.8%. energy and materials the two worst performing sectors down

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and today we've got cnbc contributor josh brown from ritholtz wealth management here as well. good afternoon, josh let's kick it off with the broader markets. all major averages lower nasdaq on track to snap its four-day win streak and the dow and s&p lower for the third straight day though well off the session lows still a 1% decline for the russell and 0.5% decline for the nasdaq slight decline anything under the surface that gives you more cause for concern? >> i think people came into the week prepared to be a little bit clenched up ahead of potential volatility and weakness. the tone feels as if everyone is looking for a breakdown of some sort in the overall market or at least a temporary turbulence it doesn't really seem to be following that yes, moststocks are down all the cyclical stuff giving back some gains except for industrials. yes, verydefensive and finally the nasdaq 100 stocks like apple

are giving up some of the recent outperformance they have but in general, i don't really know what we're arguing about. the rotations are still operational. it's keeping the overall market well supported less than 1% from an all-time high and even though i think there's a plausible case to be made that september could be a policy mine field with fiscal and monetary in question, as well as, you know, the sort of time for some spill back in the markets, it's not really news to the market that we hit a soft patch of growth if that's your argument for why we ought to be going lower here. >> what's your take on the markets. we are less than 1% from the record highs that we hit last week for the s&p and the fact that you could potentially see some mine fields particularly around fiscal and monetary policy >> so it's only a mine field -- i don't know what that screaming

was. it's only a mine field depending on who you're talking to i find that the majority of the financial media is still talking to most market participants, parents. like if you are 70 years old and you have too much equity in your portfolio, relative to cash, relative to bonds, then, yeah, it could be a mine field but there are 73 million millennials now actively investing. another 75 million gen-z coming into the market as quickly as they can millions of new accounts a month. how do you describe a mine field to somebody who is facing the next 40 years of putting money to work. like they are embracing these opportunities that are scaring their parents and grandparents that is the way the market is set up right now we are currently living through the second longest streak of having more than 75% of the s&p 500 above their 200-day moving

average. so think about that statement. three quarters of s&p stocks have spent the last ten months in a statistical uptrend so if we get a pullback because of a policy speech or whatever, think about how quickly the money comes rushing in to buy that pullback. most of the market participants today have decades ahead of them to invest in stocks and they're not stupid they recognize that lower prices are better to be buying than higher prices. so this year we've had 50 closing record highs nobody under the age of 50 years old should be happy about that why would you want to buy higher it makes no sense. so i don't really -- that terminology, the mine field idea, policy errors by the fed, if you are relatively young, still working, still accumulating your portfolio, that's exactly what you should be rooting for and that's what i'm rooting for. so to some people, it's a mine field and to me, it's an

opportunity. >> but josh, that mentality, does it mean you never take profits, that you should always keep buying any slight pullback? >> yes >> genuinely, you've never -- you're never taking any profits and you think there's nothing -- >> i'm 44 years old. what am i doing with the money >> but that's your basically saying the argument always holds and relative evaluation is -- >> well, has it -- okay. okay yeah, no, i'm not trying to frustrate you, wilf, but i started in this business in the late 1990s it's been the right stance so far, and when you get to an age where you're living off of your portfolio, like you're literally drawing down your assets and taking capital out, obviously, at that point, the calculus changes. but your asset allocation will

change to reflect that so, look, i am doing this 11 years on cnbc telling people to remain bullish there have been all sorts of horrific market episodes during that period of time. it's not that there's never a good time to sell. it's that unless you've got a near-term use for the money, you want to be long equities and it's better to buy them down than up. so this idea that, you know, we're heading into the fall and there's going to be a taper and maybe the fed will make a mistake or somebody will give a speech yes, if you are overinvested and too old to replace that money in your portfolio, you absolutely need to be vigilant, but i want to remind you the majority of market participants today in 2021 are not in that situation they are in the opposite situation. they require drawdowns in order to get better prices for long-term investments. and i think we want to speak to

everybody at the same time we don't just want to speak with people who are spending down the rest of their portfolio over the next five years. that's what most of the financial media tends to speak to because it's the audience they've known for a long time. it's really important we look at downturns in the market as being good, not just universally negative >> mike, to josh's long-term point, it's always worked in his lifetime the pushback could be, if you bought in the summer of 2007, it took you six years or so to -- >> so there are times when the expected returns based on where the market is situated are not good going forward it doesn't change the long-term keep your equity allocation as high as it ought to be based on your age but some want to side step those moments when it looks like the risk/reward isn't great. >> they think they can, they can't. >> in january of 2018, you went

nor for a year and a half. it's a matter of setting expectations as opposed to being tactically nimble and trying to time the market. >> i'm loving this conversation, this debate happening right now given the fact that i am a millennial, josh but the fact we haven't seen any kind of meaningful pullback more broadly within the market since, what, last fall, where should those millennials and gen-zers be putting their money to work >> jim cramer's last book that he put out, somewhere in the introduction or first chapter he's talking about the first 10,000 goes right into an index fund so if you're asking me what should somebody who is just beginning to invest do they should do the simplest, lowest costing you possibly can do however, i don't think you learn something from an all index portfolio. i do think young people should get their feet wet they should be trading they should be buying.

they should be selling and learning from their own mistakes they should be writing down what they bought and then when they sold it, what was the reason to buy. what was the reason to sell. and really reflecting on whether or not they have what it takes to be in the market as active participants or better off jus doing asset allocation and focusing on their love life or professional career or their hobbies and pets that's, listen, not everybody should be active most people aren't built for it. i know this because i've met thousands of market participants over the years i know professionals who aren't built for this game, okay? so that's the number one thing is you should be investing in a simple low-cost way, but you should also learn stocks and unfortunately, you're going to win some and news some when you're learning individual stocks but if you do both of those things concurrently, starting at a young age, you'll be miles ahead of the people who sit there and say that's not for me or i don't know the jargon so

i'm going to sit that out or, oh, the stock market is too risky. my grandfather told me like it's very important to just start. pay attention to what you're doing and learn from your own mistakes you won't listen to me you've got to learn from your own experience that's everybody's story that's succeeded in the marketplace >> i see you've come loaded for bear let's talk about individual stocks today moving. paypal striking a deal to buy a japanese buy now pay later firm. courtney reagan has those details. >> hi, morgan. it's another deal in the buy now pay later space. paypal is buying japan's paydi it's a private company backed by george soros' son's family office this follows the deal with affirm and square's $29 billion purchase of afterpay under paypal, paydi will continue to operate its existing brand and leadership

buy now pay later can help solidify a sale or increase a transaction total for an online retailer installment payments often allow them to have a low sber rate if one at all, then you'd get from a credit card and lower to possibly zero fees just increasing that conversion at checkout >> courtney reagan, thank you. mike, we've been having this conversation about buy now, pay later and some of the deal-making we've seen in the space in partnerships over recent weeks it just seems to be continuing to heat up here. >> yeah, looks like a little bit of a buying panic by the big players to make sure they have this area well covered longer term, you do wonder if it's going to create this conditioning among consumers to be very carefully scrutinizing what traditional credit cards are costing. if that drags things down, if they disintermediate it was something like venmo, it

makes its money by charging people a premium to get their own money instantly as opposed to in a couple of days we're your friends you'll be able to have a great deal here with, we're going to charge you a high convenience fee but that's the game right now p. let's get to a big move lower for a home building stock, pultegroup they cited supply chain concerns the company also pointed to a building products shortage and increased production volumes across the industry. shares of pultegroup sinking more than 5% today mike, i guess, you know, housing slowdown is quite -- has been somewhat expected after it got so hot the question is, to what extent and if it gets worse if and when rates get higher >> rates aren't helping. the prices are up. and these companies are having a hard time completing homes that they've already presold. this is a good example of the kind of housing bottlenecks and

the supply issues that are going up you've had a lot of severe pullbacks in the home builders it's not new for this group to have a great run and have a gut check. i don't know that the market is saying we have to start looking at serious problem for this cycle, but clearly indigestion all around not just with pulte. >> after the bell, quarterly results from rh, lululemon and gamestop consumers and retailers in focus again. let's get to frank holland for a look at what to watch in gamestop's report. >> the grand daddy of the meme stocks, gamestop, slightly higher ahead of earnings also a bit of a boost from amc's ceo. the comments came bought 3:30. the stock taking a down turn since then eps forecast to be a loss of 67 cents. analysts say that doesn't really apply to when we're talking about gamestop any details of the mysterious

transformation strategy and guidance, they're just not expect bud investors are eager to hear details on either. shares are currently trading slightly above their 30-day moving average not seeing heavy retail interest in the volume but the stock still up more than 960% year to date back over to you >> frank holland, thanks we'll see you after the bell with those results josh, given the conversation we were just having, your take on gamestop and some of these other so-called meme names we've just seen essentially detach from fundamentals and, okay, i'll say it go to the moon. shoot to the moon. >> so, the thing that everybody forgets about gamestop and i try to remind them as often as possible, the entire market cap is $15 billion so think about that. that's not a lot of money in 2021 like ten years ago that was a lot of money there are rappers worth like 20% of that figure at this point like literally there are hedge

finishes funds that size all over the place. my point is saying that, you have to give me a reason for why the vast majority of shareholders, and they really are shareholders they are like active shareholders why would they all want to sell out? why would half of them want to take their money off the table because that's how this gets cut in half when they really lose interest the longer ryan drags this thing out, the more the anticipation builds the best thing is he announces nothing and these people will not move it reminds me of what we saw in bitcoin. bitcoin fell more than 80% and less than 13% of all bitcoin holders actually sold. so gamestop is very similar. there's tons of volatility it gets crushed all the time but the shareholders don't really leave and that's why this thing refuses to die and i think when that's going on with the stock, it does become divorced from fundamental anything and you just have to accept the fact that some people

hold stocks and they cannot be shaken out of that position. and this is one of those situations >> mike, quickly, internals. >> they've been weak all day volume split has been like 25% of volume to the up side 75% to the down side on both exchanges. small caps is the issue here the russell 2000 having a big pullback that's a year to date. that's nothing for seven months in the russell 2000. down at the beginning of the session. you had this welling up of anxiety thinking it may be a bigger shakeout. now back below 18. still chopping above the lows but nervous but not panic at all. >> yield down a bit today. 10 year 1.34 dollar up. oil bouncing, up to 1.4% gold having declined yesterday remains below 1800 only down slightly for the s&p and the dow. about 0.2% for each with materials and energy the worst

performing sectors utilities the best performing sector the nasdaq the biggest decliner of the three major averages. down 0.6%. [ closing bell ringing ] >> we have -- 0.6% for the nasdaq. welcome to "closing bell." i'm morgan brennan in for sara eisen. stocks do settle here. getting a quick read on the major averages which all finished the day lower the dow finishing down 69 points or about 0.2%. the s&p finishing down marginally lower, down by about 6 points 4514 is the level there. and the nasdaq, after days of

outperform afinishing down about 0.6% the russell 2000 small caps, big underperformer of the day down 1.1% in terms of the biggest laggards in the s&p, it was energy and materials and utilities the biggest outperformer still to come, larry fink, ray dalio and george soros debating the merits of investing in china. also hayman capital's kyle bass who will weigh in on the comments and give us his own china strategy plus, minutes away from earnings from lululemon, gamestop and rh. we'll break those numbers as soon as they cross josh brown from ritholtz wealth management is here and gabrielle santos is joining the conversation as well first, mike santoli, we go to you and your take, especially given the fact we have had some commentary, particularly from some of the industrial names over the last couple of days raising further concerns about

things like inflation and supply chain issues and then, of course, after the bell today, another focus with some of these names on retailers as we come into the holiday season and there's concerns there, too, about supply chain issues. >> yeah, morgan, it's reinforcing a little bit of nervousness. strictly around profit margins, whether we've seen the peak not just for earnings growth rates but for the upward earnings revisions that have been so strong and siupportive of the market that's the background music. people saying the cycle looks like it's in a stutter step. fed taper and all the rest 11 million job openings in this country at the end of july reported this morning. so that just shows you that it is a supply problem for jobs it doesn't seem as if the fed in terms of its taper is necessarily going to have an impact one way or another on demand side which doesn't seem to need that much help all that is in the mix

the market has softened up under the surface. it's a lot of stocks resetting a defensive tone i don't want to extrapolate much >> gabrielle, what's your take on the likely returns for u.s. equities for the rest of this year >> well, we do expect a bit of a consolidation here in september, october. there are a lot of issues that need to be resolved around whether this supply-driven slowdown is something that is indeed just temporary. for that we'll have to see what happens with covid cases, what happens with the jobs market, supply disruptions and what happens in congress during the month of september ultimately, we do still think that growth remains above trend for another three quarters that earnings revisions will be able to continue to move higher. and as a result for the market to grind higher over the next year and the next few years during this cycle but i think for the next couple of months we do expect a bit of

a consolidation and maybe some volatility >> josh, i want to get your thoughts we're talking about the broader market on specific names that you've been invested in as well, given the fact we've seen some volatility when you dig down below the surface. >> well, i mean, look. i've been in the faang names we've been talking about them all year long. amazon is the laggard, but look at a chart of alphabet just spectacular performance apple speaks for itself. what's going on with these stocks is very simple. you really are not earning anything in your bonds and people increasingly looking for ways that they can have their money at work in this environment and not taking what they perceive to be economic risk and one of the things that these companies have been able to do is really triumph over even the concept of their being an economic cycle we've had gdp fluctuation over

the last ten years but these companies have had virtually no earnings fluctuation not even during a pandemic have their earnings been impacted and you can make the case that for some of them it actually helped so these are the types of trades that have been working i see no reason to overthink things i continue to remain in these stocks, talk positively about these stocks at a certain point, it won't continue, but so long as the fed is putting $875 million every hour to work in the bond market, i see no reason why companies with great balance sheets, high earnings growth, dividends, shareholder buybacks, strong competitive positions, et cetera, shouldn't continue to prosper. what's what's cogoing on in the nasdaq, however you want to look at it. >> gabriella, what are you doing with bond holdings at the moment >> so for us, i think we've lost

some conviction in terms of the exact timing and speed with which bond yields resume their march higher but the direction of travel still upwards for us so we're still very much in a danger zone for fixed income, whether it takes us a year, year and a half, two years. in our view, bond yields should be much closer to 3% in a normal economy. we're still talking about doubling the level of the ten-year and going through a period of a bear market for core fixed income still being under weight duration versus the benchmark. thinking about areas of the market that have more credit risk but less interest rate risk like high yield and secure tiesed debt which have great fundamentals given above trend growth and solid consumer. still danger zone and still overall underweight versus risk assets >> what is the russell 2000

signaling, especially on a day where it ended 1.1% lower? >> i mean, for the rest of the year, you'd have to just look at the way probability set up when you've had a year that's been like this which is low volatility a few pullbacks. big gains in the first eight months typically the high for the year has not happened by the time you get to september in those types of years now, something can change. the big exception is 1987. i don't think we're in a 1987 mode it seems you probably make more net progress in the context, though, of a midcycle slowing down probably of returns where it gets more selective in terms of what types of stocks work and what don't i don't know if that's all going to come rushing up by the end of the year but that's the broad context. >> lululemon moving higher as it reports earnings courtney reagan has the numbers. >> we're just going to give you very quickly the top and bottom line here for lululemon. it's a beat for the top and the

bottom line. earnings for the second quarter coming in at $1.65 adjusted. that's well above the analysts' expectations of 1.19 we're also seeing revenue much stronger than expected at $1.45 billion compared to $1.34 billion. the shares are higher by about 7% we'll dig in and come back with more >> thanks for that we'll come back to discuss lululemon now up 7%. we're waiting for gamestop and rh, both moving slightly lower in after hours earnings as a whole, are you fearful that we have kind of passed peak earnings growth over the last quarter or two? >> earnings growth, yes. we do think the second quarter will mark the high water mark there in terms of year over year growth but to us, expectations for 2022 stull seem reasonable. 9% earnings growth and each subsequent year to

still have earnings moving higher, reaching new and newer record highs which should keep the market going higher over time we have a tough starting point i think that's the trick is really the fact that multiple -- so we don't expect to get the full returns from earnings because we do have that multiple contraction. it's ultimately more of the index level, midsingle digit returns for the cycle. so that's where really the focus is much more on not picking a magic bullet but combined value growth, layering quality on top of it and focusing on other markets overseas like europe, japan and china. >> josh, we can talk about secular growth with faang names. i see lululemon, net revenue increased. gross profit increased 72% direct to consumer e-commerce is still growing at more than 40% as well.

there are other places where growth is to be had or to be harvested here in this market and potentially where e-commerce in particular is concerned, that could be the case. even i feel as investors are juggling with this idea of how much growth do we see coming out of covid >> yeah, i kick myself once a week for not owning lulu right now. this is like, in many ways, the perfect stock for the current moment in time it's half reopening. it's half stay at home which seems to be what we're doing we're doing hybrid i was in manhattan the other day. i saw a flock of wall street traders head to toe lululemon. so, yes, they are being forced to come back to the office but they're not being forced to actually button their pants or put on belts >> josh, excuse me we're ready for gamestop numbers. let's get to those

frank holland. >> gamestop down about 0.5% after reporting a loss of 76 cents a share. not comparing that to estimates, however the loss for gamestop last year in q2s but $1.40 a share so reducing some of that loss year over year. also seeing what could be some signs of ryan cohen's transformation strategy. the company announcing it leased a 530,000 square-foot fulfillment center in reno and a customer care center in florida and starting to build up customer care operations of course, gamestop is a meme stock. before the bell, trading was just at about its 30-day average. not seeing a lot rev tail interest gamestop reporting a loss of 76 cents a share. no guidance, no real details about the transformation strategy that was expected. shares now just about flat back to you. >> thanks for that one, frank. we'll get back to josh in a moment on lulu mike, anything that jumps out

here fulfillment center shifting from bricks and mortar to online. who would have thought >> sales roughly in the zone of what was expected. there's nothing here the stock, you know, fundamental detail is either a nonsec witter or is actually counter to the phenomenon of the stock because i don't know what is priced in i don't think we have to pretend there's anything specific priced in in terms of transformation plan it trades at 2 1/2 times sales and best buys at 6 times so whatever magic they'll do that will overtake best buy and amazon and everybody else, it's in the stock >> the only bad thing about your story on lululemon is i guess the brand probably doesn't want the main ambassadors to be wall street traders, but i guess it shows that they've been selling well in the past at least. >> yeah, no, i would agree actually, patagonia said they were done allowing corporations

to put their logo on at least the products that they themselves were selling. so i get what you're saying. real quick on game stop. i don't think they have to be better at selling copies of video games or even peripherals like chairs and gloves and i'm not a gamer so forgive me. i think all they have to do is demonstrate like a minimum competency and if they can build up hybrid, the way, for example, gap stores is right now, the way historically lulu has, obviously the way that, you know, best buy has. like, if they can get to being perceived as having that level of competency at doing that kind of seamless, sometimes i go to the store, sometimes i order online, sometimes i do both, that would be enough i'm not saying it justifies the current market cap, but this has never been about justifying the current market cap they just have to demonstrate

competence so it will be interesting if they can do that over the next year and a lot of money is parked in this stock waiting to find out i agree with everything michael said and i think that's what's going on today >> yeah, 4,500 stores is not the way you'd start to create the, you know, the video game virtual retailer of the future but that's where you're at josh, before you go, that cheer before 4:00 that went up after you were introduced, it was because derek jeter became a hall of famer. it wasn't your intro, but it might have been both actually. what do i know >> i think it's very hard to describe, you know, ascribe one or the other we'll say it's a combination >> either way, the cheers tailed off during your answer so you lost them halfway. >> once i started talking? i get that it happens a lot >> you kept our love and attention throughout as did you, gabriela straight ahead -- ray making new comments saying new f

opportunities in china can't be 'lglte wel ask kyle bass about his china strategy ost at the finishe today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq ♪ i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer.

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we'll keep you ready for what's next. comcast business powering possibilities. welcome back rh earnings are out. courtney reagan has those numbers. >> so the earnings and revenue beat for rh's quarter here adjusted earnings per share of $8.48. that is $2 above what the street was looking for. revenue, $989 million compared to $975.4 million. gross margin up 180 basis points to 49.3% some interesting color in the release. shares of rh higher by almost 3% they talk about inventory on the balance sheet increasing by 32% with in-transit inventory up 85% compared to a year ago because of the supply chain disruptions and delays

there was a manufacturing restart in vietnam after a closure due to the spread of the delta variant. as part of all of this, the company, rh, is going to delay the launch of its rh contemporary line until spring of 2022. and the fall source books in addition to the rh guest house in new york city will now open later than planned the company also says that they are raising prices in most product categories to help offset the higher cost of both shipping and raw material costs. wilf, back to you. >> thanks, so much up 2.3% for rh ray dalio, the latest wall street titan to weigh in on investing in china saying, it's part of the world that one can't neglect at an event last night this follows an op-ed from george soros where he called it a tragic mistake to pour billions of dollars into china right now.

soros making those comments on the heels of blackrock launching its mutual fund in the country last month blackrock's chairman larry fink wrote the chinese market represents a significant opportunity in a letter to shareholders earlier this year let's bring in hayman capital manager kyle bass who joins us where are you on this debate versus your view towards the level of opportunity versus risk in china over the last five to ten years? >> yeah, it's important. first of all, good to be here. it's important to note that if you look back at the shanghai index over the last ten years, it is compounded annually at only 3.4% while the s&p is compounded at 14% over the last ten years. and you have blackrock's chief investment strategist wei lee, a chinese national, telling us that we should triple our investment allocations to china because it's no longer an emerging economy it's a developed economy

and she says we're being compensated for the extra risks. number one, they don't submit themselves to audits like the west does. any company you invest in china you're just hoping they're telling you the truth about the numbers. there's no verification of that truth. now we have xi jinping risk. i don't know about your models, but how would you discount xi jinping risk coming in and laying waste to an entire sector of for-profit education or deciding just to take half the profits of whichever companies he wants to take the profits for, for the common prosperity and the maoism of what xi jinping is talking about i think what ray dalio and blackrock is saying is crazy i agree with george soros 100% on this% >> so have you removed all exposure to china or are there other ways you can do it get exposure to these themes without the risk >> you know, due to criticism, i eliminated all of my china

exposure years ago so right now i'm just coming to you as a concerned citizen and a proud fiduciary. i don't think you can be a fiduciary and say that china -- that you're being compensated for the extra risks of china with their rule by law, no rule of law, no audits and xi jinping risk and the returns in china are horrible compared to their returns in the united states so i think it's important the next time you get ray dalio on, i've never heard anyone in the media ask him how much money does the chinese government have invested in ray's fund i hear they are one of his largest investors with multiple billions of investment for the last decade. the chinese state apparatus is one of ray's largest investors ask him how much the chinese government has invested in his funds. >> morgan. certainly something i've been covering for a number of years

military civil fusion in china the reason you have seen back in the last administration, the trump administration, some of the stances taken around chinese tech companies and the like. and whether it's for military purpose or not, this idea of -- and perhaps we're seeing it play out right now in realtime, this idea of the country and the leadership of the country seeing chinese companies, whether they are private or not, as instruments of a one-party state as george soros says it kind of speaks to that -- over that headline risk. i just -- i wonder where this goes from here in terms of the relationship between the u.s. and china. this entangling of these two economies in some ways, whether it remains to be seen, these chinese companies going public in china rather than coming here >> yeah, you know, i'll give you an opinion that maybe you're not even asking for. if you look at china's grand strategy and you look at what they are doing both economically

and militarily, we have the roll out of their central bank digital currency in 2022 and today chinese cross-border settlement in chinese r&b, how much the world agrees to accept the rmb as legal tender is 1.8% according to swift of total cross-border global settlements. if you peel the onion back, almost the entire amount is trading in hong kong they're trading with themselves. so the roll out of their cbdc is a rollout of the chinese tech stack and its their desire to move away from the dollar. they are also talking about launching an exchange in beijing next year. they're also going to try to host the olympics and bring that global legitimacy of hosting of an olympic games to beijing yet again when the last two state departments, the current state department and prior state department have labeled the chinese government as a genocidal government committing crimes against humanity.

it's my view that if you look at china's moves on the global chess board, what they are preparing for is to finally move on taiwan at some point in time in the next year or two. and with that comes our own national security problems with our reliance on semiconductor manufacturing in taiwan. so it's a long way of answering your question and saying chinese civil military fusion is one thing for one country. and there's a schism on wall street guys like ray dalio and fink can't wait to invest more money in china and be evangelical about its benefits when everyone is getting knee-capped investing in their stocks. and we are labeling them a genocidal government it makes no sense to me. at some point in time it's going to make sense to our government to limit and restrict and decouple from investing in a regime like the evil regime of xi jinping >> i just want to home it on something you said and that's this idea of the chinese government moving in on taiwan

in the next year or two. that's a huge statement to make given the fact that i know at least from a u.s. standpoint within government, there's an expectation that you could see that risk flare up in the next decade or two. are your suggesting that because of these chess moves on the world stage by china that it is accelerating its position on the world stage and feeling much more emboldened then to counter against the u.s. >> if you just get out a dry white board and start writing down all of their actions and studying what they are doing economically, financially and what they are doing militarily with their recent incursions in the taiwan ease air space with nuclear bombers and fighters, they realize they have the u.s. in a -- they believe they have us in a stranglehold because we rely on taiwan semi and semiconductor. taiwan semi is building multibillion-dollar fabs in arizona. samsung is about to build a

multibillion-dollar fab in texas. maybe two. it takes five years to build those fabs, morgan so i think you're going to see things accelerate on the global chess board with china's belligerance and military movements into taiwan. what the world needs to remember is china, the way it operates globally, is with u.s. dollars no one really accepts their currency as legal tender for anything and if we were to ever sanction the chinese soe banks and joint stock banks and remove them from the swift system we could cripple them economically. in the end we actually hold all the cards as a government. at some point in time it may come to that it looks to me like this is getting accelerated and likely to happen in the next couple of years. i could easily be wrong. i'm some financial guy in dallas giving you an opinion on china but it sure looks like they're making the move to move away from the dollar and as fast as they can and export the chinese tech stack to the rest of the

world. >> but kyle, overall, are you more or less bullish about china making huge gains in the world over the next decade than you were a couple of years ago i get they are hosting the olympics and want to do the shanghai stock exchange. they've already got shenzhen and beijing. this clamp down from xi jinping, will it ultimately come back to haunt them, even if there's still money going in from some hedge fund investors from the u.s. at the moment might it stop that flow offer the next year or two >> i think the hedge fund flows are de minimis compared to the pipes china has put in through msci and henry fernandez and bloomberg and the bond index we're talking about hundreds of billions of u.s. dollars being passively invested in china, almost forcibly, by anyone that's investing or indexing so i think they're going to make bigger gains i think what's important to talk about is this ever grandush.

the largest property developer in china has $300 billion worth of debt out there and now those bonds are not even allowed to be used as collateral and they are halted from trading because there probably wasn't any bid. when fannie and freddie went down during the u.s. financial crisis, they, over time, needed about $210 billion worth of capital injected into them we're talking about one company in china having $300 billion of defaults coming their way and all the banks in china are much more levered as a percentage of gdp than u.s. banks were going into our own financial crisis. so i think china is on the precipice of a real big economic problem, and i think that it will come back to bite xi jinping and his administration but what's -- i think what he's really focused on is what's happening even here when the central banks print money like it's the national pastime you get an economy that's completely out of whack so you have asset prices ripping

and you don't have wages going anywhere near there. so you have real wages declining for the middle class and the poor, and that would spell the end of xi jinping's administration if all of a sudden that got to a place where we got like the arab spring and food prices moving 45% in the last seven or eight months i think he's playing a much bigger game than worried about his stock market i think he's worried about his existence as the premier for life >> kyle bass, always appreciate your insights. thanks for joining us. >> thank you we've got a market flash on boston beer. frank holland has that >> shares of boston beer down about 7.5% right now the maker of truly hard seltzer is pulling its full-year guidance because of decelerating hard seltzer sales they offered guidance of $18 to $22 a share for the full year. it's now pulling that and investors can expect write-offs of hard seltzer inventory and possible buybacks to sellers

the company says, decelerating growth tends have industry reports saying the full-year 2021 buying for hard seltzer sales will have over 100 million fewer cases than estimated in may and 30 million fewer than estimated in july of 2021. shares of boston beer down about 7.5% after it pulls its full-year guidance back over to you >> frank, thanks for that one, down 9%. a news alert, meanwhile, on united phil lebeau has that >> an update on united and covid-19 vaccination policy. remember, we're about three weeks away from united's deadline of september 27th when all employees must be either vaccinated or receive an accommodation from the company for religious or medical reasons for why they don't have to be vaccinated otherwise they leave the company. a couple of things the company is not saying how many employees, what percentage of employees have been vaccinated but it does say that more than

half of those employees who were not vaccinated when this policy went into effect are now vaccinated obviously, we don't know what percentage of employees that is. so it's a little bit open there in terms of what -- how significant this is. but the company feels good about the progress they're making. in terms of those employees who are seeking either a medical or a religious accommodation from the company they said it depends on what job you have in the company. if that exemption request is denied, you'll have to either get vaccinated or you are leaving the company within five weeks of that denial if it's approved, depending on the job, the employee will either go on personal unpaid leave or medical leave and medical leave means some of the pay will be going to the employee so that's a bit of an update from united. the company not saying what percentage of its employees are vaccinated three weeks from the deadline of september 27th when the company says all of its employees must be vaccinated. guys, back to you. >> what a development.

shares of lululemon popping after reporting just a few minutes ago. we'll dig into that move and what could be next for the retailer with an analyst who has an outperform on the stock that's coming up next. now whs to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab.

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welcome back shares of lululemon rallying after hours after reporting a big earnings beat. joining susdana telsi. she's an outperform rating and $460 price target on the strike. i want your thoughts on the results we just got. ahead of the report, you already had expectations higher than street consensus what's your takeaway now >> they just blew away the state consensus records and took up the guidance to $7.50 a share. i think the stock is going higher it's driving attachment sales. look what you have on geography. both international and north america grew and you can get the product anywhere, any time because of the digital engagement they're right for the times. they were right prepandemic. right during the pandemic and right postpandemic they're catering to a wider demographic than they had been in the past.

>> dana, from freight costs? >> i think that's an impact. they've been talking about that last quarter also. their inventory levels were not up as much as originally had been expected. the call is going to start and i'll hear about those freight costs. but keep in mind, these gross margins they have allow them to offset some of the impact of freight. and they are bringing things in by air because they're getting full price for those items they got full price before and they're continuing to get full price now. look what you had before where someone said they're seeing all the wall street traders as they are leaving work at the end of the day. they are wearing lulu. it's a wider audience than had been expected. >> e-commerce continues to grow as well. certainly direct to -- all right. we'll leave the conversation there. dana telsy, thanks for being with us. >> thank you upnext -- mike santoli wil have a deep dive on inveorst exposure to equities we'll be right back.

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welcome back time for a cnbc news update with shepard smith. >> from the news on cnbc, here's what's happening the secretary of state tony blinken says the taliban is blocking charter flights from taking off, planes filled with people who are trying to leave

afghanistan but because of the taliban, they can't. he says the united states is limited in what it can do without any personnel on the ground and that the state department is doing everything it possibly can to get those jets in the air. a new extreme weather warning for the northeast just one week after the remnants of hurricane ida devastated parts of the region. forecasters telling people from pennsylvania through new york and new jersey up to new england to get ready for heavy rain. flash flooding and possible tornadoes again. they say they are expecting the worst of it to come between 9:00 and 3:00 in the morning eastern time and new numbers on the flood damage across the northeast from what was left of hurricane ida corelogic estimates losses totaled 16 to $24 billion. only $5 billion to $8 billion of that was insured and that's just the northeast. down south, another $27 billion to $40 billion in damage across louisiana and mississippi.

tonight, the haves and have notes when it comes to flood insurance. we're in lafitte, louisiana, talking to folks struggling to clean up and to find the money to rebuild on "the news" right after the return of jim cramer, 7:00 eastern, cnbc morgan, back to you. >> shepard smith, thank you. over to the telestrator where mike santoli is taking a closer look at equity fund allocation mike >> yeah, morgan, a lot of times we talk about whether the buying power for the market is going to remain there whether we'll get more flows that could potentially help the market out a bigger question at this stage is, will investors continue to allow their equity allocations to rise from already high levels so this measures the investors' total allocation to equities within all funds and its equities minus whatever cash is held in those mutual funds and etfs you see it's very close to historic high. not quite there but we've peaked

around 65% if you take the assets in all funds, stocks, bonds and cash, how much is directly in equities so it looks like it's a very towering number. going back to 1980 it is i would amend that and since the early '90s it's been between 40 and 60 so your median is probably in the low 50s. maybe it's not as extreme as it was. certainly we were there only 3 1/2 years ago in early 2018. didn't cause disaster. but it is a genuine question as to whether we're seeing some kind of secular increase or if people just are going to feel like they own enough and the direction of reallocation, rebalancing is a way from equities into something else take a look at this. how exactly great it's been to be selling investment products capital markets type products. that's the capital markets etf against the banks. a five-year chart. used to track more closely together it's been lift off in the last couple of years. you have the liquid markets, rising asset values and all the rest of it we'll see if that represents an extreme.

it's going to be closed or a trend that's going to continue, guys >> -- persisted for awhile can't believe how low the allocation was as a percentage a couple of decades ago. shares of sports data company genius sports getting a pop on the back of a deal. we'll speak to the company's ceo after the break about the news and his expectations for football season. and let's have a look at gamestop as we head to break the company also disclosing the s.e.c. requested additional documents concerning a previously disclosed investigation into trading activity in its securities and those of other companies saying, quote, this inquiry is not expected to adversely impact us, though it's given up some of those earlier gains it got in after-hours trade. it's down 2% id foundation. wealth is shutting down the office for mike's retirement party.

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shares of genius sports finishing higher by 4.5% today following its earnings before the bell the nfl data rights partner beat on revenue but did see losses widen compared to the same time last year. the company has expanded its sports book data portfolio in recent weeks announcing multy year partnerships with draft kings, caesars and winbet. joining us is genius sports ceo. mark, my first question is exactly what those gambling, betting partners use your data

product for and how you strike deals with many of them and not want it to be exclusive. >> sure. so what we do as a business is we work with sports leagues and federations on a global basis to collect live sports data that we provide to sports books. it's integral to what they do. they can't operate without the sports data that we own and control. and they really use that to drive their product offerings for their customers, whether it's the creation of lines or whether that's allowing their customers to follow what's going on in the game you know, we announced some really fantastic results today that is really demonstrating the delivery of our strategy and shows that we're really doing what we're doing and obviously as part of that at the last few days we've been announcing more deals that came with the announcement of the relationship you've got with cesar's, winbet and sports illustrated brand so business is going incredibly well we're really pleased with our

results and feel we're making really good progress along the strategy that we have. >> and how do your revenue split with actual sporting partners like the nfl vary between them and the betting partners and what's the difference in the service you offer them >> so what we're doing with the sports leagues and the federations is working with them to collect the data that comes from their games so you imagine the sports game that varies different passes, throws, anything that effectively comes from those games. and that is the data that really is the gasoline or the petrol that runs these sports books on a global basis we work to collect that data we own the rights and we aggregate that together. once we've got that data we then work with the sports books whether it's caesar's or win or sports illustrated or draft kings we are providing that data

to them in order for them to be able to offer a sports betting product to their customers >> i say this realizing it's still very much an emerging landscape here and we have a variety of states in different stages of legalization and implementation that being said, the fact there are so many players and so many different parts of this market, what is your outlook longer term do you expect we'll see consolidation? more partnerships, the like? >> yeah, so from genius' point of view, we're a picks and shovels. we supply almost all the global regulated sports books that you've ever heard of so from our point of view, we look to partner with the global sports books and certainly in the u.s., looking to partner with all those sports books in the u.s. and ultimately, you know, we're somewhat agnostic to who wins because whoever, you know, wins between the fight between draft kings and fanduel, caesar's and wynn, we're able to provide the whole market with

the services that we offer >> all right mark locke, thanks for joining us on the heels of earnings. >> thanks very much. up next, theranos' founder elizabeth holmes arriving for opening statements in her trial today. we'll take you there live after the break. coming up on "fast money," the

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has to prove, whether elizabeth holmes intended to commit fraud. ms. holmes made mistakes but mistakes are not crime, wade argued a failed business does not make a ceo a criminal he says that elizabeth holmes truly did believe in her company. she was all in on theranos motivated by its mission, not money. her stake was worth $4 billion, she never sold a single share of stock. the government portraying it much, much differently saying that holmes had become desperate by 2013. ten years after founding the company as a stanford dropout. at that point she turned to lies this is a case about fraud, about lying and cheating to get money, assistant attorney robert leach argued the company by that point was burning cash at an alarming rate out of time and out of money elizabeth holmes started to lie.

holmes' attorneys claim that her biggest mistake was trusting sonny balwani. her former boyfriend 19 years her senior. they are clearly trying to place blame on him he has pleaded not guilty and goes on trial next year. the government has called their first witness, denise yam. a former top financial official at they ranos. they're trying to prove she knew of the condition and lying about the company's device and whether it was being used to perform some of these complex blood tests. the company was using third party devices and that, the government says, is at the heart of this fraud. guys >> scott, thanks so much fascinating case it's ongoing of course. a firm's earnings are on deck what we're watching as the buy now pay later space continues to heat up. ear lltrt okwa seelo ahd.

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welcome back to our wall street look ahead on the initial jobless claims we'll get affirm earnings after the bell that stock up 30% following news of a deal with amazon, of course down about 4% or so today. as were paypal and square, mike, had a tough day. interesting take here. jackson was saying he'll be watching the russell here. the russell has been down 2% this week. >> it has. definitely calling into question whether last week's little rebound was putting some distance between the lower end of the range and where it's traded all year. it's been tough. people very focused on whether the large cap growth stocks giving back some of their ground is going to be fatal for indexes or whether we're just in another rotational mood. the other thing i want to mention, natural gas is up 7.5%. a three-year high. tomorrow we get the inventory numbers. that might get extra attention just as another element of cost pressure. >> i'm glad you brought up

natural gas. we've been hearing commentary about cost pressure. rh comes to mind so we can continue to watch. >> a very nice move higher for lululemon. up 8 or 9% we're out of time on "closing bell." thanks for watching. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square this is "fast money. i'm melissa lee. tonight on "fast" the epic battle brewing over payment for order flow former fdic sheila bair coming out swinging the fdic needs to do more douglas vfiu of virtue we have both sides of the debate coming up. watching a developin