form of inflation, one way or another. it has to. >> it's not transitory anymore >> it's feeling more than transitory right now it really is. >> a big debate, right, yes, i agree with you, especially if you bought a used car. >> thanks for watching "power lunch. >> i was going to say, we're trying to buy a new one right now. >> it's going to be vegan lunch for me from now on "closing bell" starts now. >> it certainly does welcome to the "closing bell" i'm wilfred frost of the new york stock exchange. following tuesday's downturn, the dow, s&p, nasdaq all firmly higher as we head into the final hour of trade. >> i'm sara eisen, welcome, let's look at what is driving the action in the final hour energy, top performing sector as crude oil gets a bid, prices up around 3%, and chevron is among the dow's biggest winners. microsoft helping the dow after news of a dividend hike, a

$60 b $60 billion buy back program and china remains in focus, amid concerns of slowing growth and increased regulation casino names getting slammed again on news of more scrutiny more on that in a moment 59 minutes left to go in the session. >> coming up on the show today, a can't miss exclusive interview with the ceo of pepsico on the company's new sustainability initiative which it calls an end-to-end transformation of how it operates. it's the first ever tv interview, plus the ceo of columbia sportswear who is at the white house for today's meeting on vaccine mandates will get his first take on the conversation with the president. >> let's focus in on the big stories we are watching this hour mike santoli tracking the market action as always, contessa brewer on the bust for casino stocks what are you focused on in this final hour >> a decent bounce we got in the markets. we spoke yesterday about how we were nearing a couple of moments in the market that have been dip

buying opportunities which was the 50-day moving average. that's a little bit below where we closed yesterday, as well as the third week of the month, we get toward the end of the week, and there's been a little bit of a v. seems like today was a little bit of anticipating a couple of those things, maybe those patterns nothing decisive yet, though, one thing has happened is this sort of trend line that has been in place since the spring. seems like for now, we have held it i would look to levels that are maybe 50 points above here on the s&p 500 to say whether this is really kind of going to take care of this choppiness we have had in september, right up there in the 45-20 basis, on a technical basis has been where the market has been capped in the last couple of weeks take a look at that. under the surface, things have been weaker. this has been an ongoing story all summer, the percentage of s&p 500 stocks that have been above their individual 50-day averages remember, the overall s&p 500 has remained above that level but only about half of all stocks coming into today were in fact there what does that mean?

it means there's been a lot of corrective action under the surface. a lot of stocks are down a bunch from they highs. that probably creates some opportunity for bargain hunters, means the market is not quite as ahead of itself as it might seem based on the indexes, also not quite at wash out levels obviously that was early this year we got much lower when the market as a whole was having a tougher time, and these are the major selloffs that we wouldn't expect is to get to unless there was serious damage to the overall index. finally, the microsoft news, about $60 billion fresh buy back authorization as well as a dividend increase. the company has been increasing its dividend 10% a year, 60 billion is a bill number only 2 1/2% of microsoft's market cap right now, but it has been part of the investment case for microsoft for quite some time, and in fact, those types of companies that return capital to shareholders. this is shareholder yield which essentially does total tote up the amount of cash

both outperforming on a year-to-date basis a lot of times this is the kind of stock and corporate story that works better right out of the huge rebound we got last year, guys >> microsoft adding about 30 points to the dow. mike, if you look at the sector performance, values beating growth energy, industries, financials, those are the standouts, where does the growth versus value debate stand right now who's winning this >> it's pretty much a standoff right now. i mean, if you looked at it on a year-to-date basis it's kind of given up a lot. i wouldn't say it's value versus growth, it's cyclical versus stability or quality growth, and i think those two things, they kind of trade off right now. i don't think it has to be a zero sum game but you definitely when it comes to value, it's had a tough time since early june. we're talking about three months or so into this kind of low period for the cyclical trade, simply because the news wasn't

there, talking about gdp slowing down big question is whether that has been priced in that's been the question for a couple of weeks. today, maybe a bid to say covid cases rolling over in a lot of the country. that story is not really being disturbed if you're bullish on that situation that's why we get a little bit of crude oil obviously really lifting energy as well >> mike today, the value sector of energy in the lead. casino stocks getting hit hard again today amid fears of a regulatory crack down in china contessa brewer has got that story for us hi, contessa. >> hi wilfred, you've got wynn resorts which has the most before the pandemic, 3/4 of its revenue came from there. las vegas sands which sold las vegas to focus on its asia business, and look at that, you've got wynn off 7 1/2%, and las vegas sands recovering a bit, down 2 1/2% on the day. you have mgm resorts, which only gets about a quarter of its

revenue, and melco resorts down 13 1/3, it has a lot of asian businesses there the government proposal for oversight of the casinos has led to the steep declines over the last day or so the casino concessions are up for renewal next summer and the former ceo of mgm resorts pointed out they are not licenses concessions are partnership with the government always have been so crack downs on the vip junkets, and an intense focus on the movement of money wouldn't really be a surprise to the operators there. best case scenario, we don't learn anything new, and then investors just return to looking for the rebound from covid worst case scenario is the government outlines its plans, and they're more prescriptive and more onerous, and that would be certainly more pressure on these stocks, sara. >> contessa, there's also not a zero percent chance that the government doesn't renew the licenses when you see the mentality at the moment, the way they are

clamping down, albeit on domestic tech companies, if they decide to take the sentiment down on foreign companies, they could not renew the licenses, and operate them with domestic companies in future. >> that fear may be driving some of the selloff that we saw today, but i have made multiple calls within my sources in the industry that is not a fear on the top of minds of most of the people that i would talk to today. and back to jim, he told me years ago, he said, look, they're going to renew the concessions because can you imagine the chilling effect it would have on western investment in general if you took casinos, which have spent billions oand billions of dollars, not just on their own properties but building out the infrastructure of macau, and told them, forget it, you can't operate here it's just not a fear that they think is truly there, is truly pressing. >> they've got too much at stake.

contessa, thank you. when we come back, pepsico, doubling down on sustainability efforts. >> we engage with a billion consumers every day, so we have a responsibility as well to be leaders in the transformation of the food system. >> after the break, an exclusive conversation with pepsico's ceo, ramon laguarta, and his first tv interview. dow's up 218 points, about 50 minutes left of trading. with directv stream, i can get live tv and on demand... together. watch: serena williams... wonder woman. serena... wonder woman... serena... wonder woman...

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positive initiative today, which is basically a company wide strategic transformation around sustainability, that calls for changes across all areas of the business from food sourcing to packaging to speaking with the consumer i sat down for a rare and exclusive interview with pepsico chairman and ceo ramon laguarta, about the pepsi initiative, and why is the right time to announce it. >> we read that consumers have a lot of interest on climate change, a lot of interest on the planet a lot of interest on societal issues, and at the same time, our associates are expecting us to do much more than what we do in terms of external change. there is a fundamental business

case that i think will allow us to create value growth for the future, and competitive spaces for us going forward it's not only that as well, it's not only a business decision, it's also something that we feel very passionate about as leaders in the company we are the second largest food and beverage company in the world. we operate in more than 200 countries. we engage with a billion consumers every day, so we have a responsibility as well to be leaders in the transformation of the food system, the transformation of how companies operate to make the world for sustainable. so it's a business case, it's a passion for us, our values, and all together, i'm positive we will create a lot of value for our shareholders, people, communities, associates. >> so it sound like part of this is going to be the way you speak to consumers, the marketing messages around your products. can you give us an example of

what it's going to sound like? >> let me take an example of one of our largest brands, for example, lay's, one of the largest if not the largest food brand in the world, and we have it across many markets in the world. lay's will continue to be the best tasting potato in the market and we want that to continue to be a key reason why consumers buy our products if you think about what it will do to lay's, our products come from a supply chain where the way we'll cook the products and move the products around, our supply chain will be net zero, and net positive water, and then the consumers will enjoy their products in a biocompostable bag which, you know, will be degraded over time this is a major change, and then the way the brand will compete, the way the brand will talk to consumers will leverage all of these components to create

differentiated values versus other potatoes in the marketplace. this is how you can think of this transformation we're talking about. >> as part of this, you're outlining commitments and pledges, on water, on emissions. you know, one of them, they're sizable, they're challenging, but is 2040 soon enough to be net zero >> listen, of course we're not going to wait until the last minute to make huge progress in each one of these commitments. this is a journey we're starting today which started actually a couple of years ago, a few years ago, and we'll continue to make progress over time with a sense of urgency, with accountability, with transparency, we're going to make sure that our consumers, our investors know exactly where we are in the journey. we plan to be extremely transparent. we want our people to be part of our compensation, part of how we run the company.

we're not waiting to 2040. we're going to make very strong steps along the way, and a lot of these goals actually are 2030, so much closer in time with the next decade in focus. >> how dire do you think the current pace of climate change is right now >> well, listen, we listen to science, and we are with scientists all the time to get the right data, and it's obvious that science has proven that climate change is real, and we still have the opportunity to make adjustments to the way we live and the way we make things, and the way we manufacture and move around to impact the trajectory of climate in the world. but clearly there has to be a sense of urgency, and there has to be a systemic willingness to make a change, and that is probably the most complex part from my point of view is that the solution is a systemic

solution, and we need to make sure there are the right incentives, the right willingness, the right leadership, the right partnerships to attack this complex problem with end-to-end solutions that would make progress for society. >> you mentioned that the consumer is telling you they want the sustainability message, and they want to know what's behind the companies, and what's behind their food products how are they telling you that? how are you figuring out how the consumer values sustainability and their product choices right now? >> we're seeing that brands that are positioning themselves as more sustainable, brands with purpose are growing faster than the average of the market. that's a fact that we read in many many marketings at the same time, all of our insights are telling us and continues inside communications with our consumers, we read that consumers are much more interested in the brands that

are walking the talk, and really making sustained actions to address societal problems, so both our insights but also the marketplace performance is telling us that consumers are ready. again, europe is probably a bit more advanced than other parts of the world, but in the u.s., we're seeing increased awareness, increased decision making, especially i would say in the two coasts, but i think one of ourresponsibilities as was saying earlier, one of our responsibilities as, you know, owner of 23 brands, over a billion dollars, and, you know, that engages with consumers, a bill consumers around the world, one of our responsibilities is to make consumers aware of these societal problems, and drive them to help them, educate them tomake different decisions, when they shop their food, when they shop their beverages, when they make decisions on their

daily life. >> how do you think about that responsibility and the societal benefits when some of your products, a number of your products have very high salt content, artificial ingredients, sugar, things that aren't necessarily good for us and good for society? >> listen, it's a very good question, sara, and one that we think about a lot. you know, we are not only a -- i would say a company that has as you were saying, high sugar and high salt. actually, our portfolio is super diversified and we have, you know, many brands and many products that are nutritious, are very positive for consumers and for the planet that's how we think about it also, you know, i always think about the future more than the past, and the future as i was explaining earlier with lay's, the future of some of our brands is evolving isto be healthier,

for example, in the case of lay's, we want to be the lowest sodium potato chips in the market, even below what the w.h.o., the world health organization is setting as a standard for potato chips. our ambition is to keep making our products better, but also when we're talking today in positives how we make our products, we'll have an influence in the climate, on the planet, so moving to original culture, that is make ago big difference in the planet, and how we sequester carbon. moving to net zero supply chain is also a big commitment and a big transformation for the planet you know, trying to add ingredients to our products that are positive in terms of nutrition and in terms of, you know, the planet, for example, chickpeas, we're going to add chickpeas to a lot of our

products, including lay's, including doritos. we're seeing innovations where our products will have protein, plant-based protein, ingredients that are good for them and good for the planet. >> so you heard it here first, chickpeas are come to go a lot more of your snacks. wilfred, the other thing we talked about after that answer on plant-based is the new joint venture that pepsico rolled out with beyond meat there's a lot of interest in this laguarta told me the leadership is in place, the r and d teams are in place, they have been testing products, they have already started talking to commerce like grocery stores and they are expecting to roll out plant based snacks early 2022. a bit of news there if you were really waiting for that sort of thing. certainly in the food industry that's a big deal. >> i personally wasn't but i know investors were. >> i didn't think you were. >> to the point, i hope they don't make things like potato

chips too healthy because, you know, everyone wants to enjoy them as they are every now and again. you don't want to be eating them five times a day, but kind of sometimes these things can go a little bit too far but to your, what i think was behind your final question might have been your pen ultimate question, i would have thought for a brand like pepsi, it's more important to have some of the things that are healthy to eat for consumers in their products as opposed to needing to care too much about environmental issues behind the process of making the product, and that it's the former that would resonate more with the consumers at the point of purchase rather than the latter. >> that's fair, and that's certainly a big part of what they're doing here today, but they have made it pretty broad it's not just the environmental and sustainability factors they're also talking about doing everything with a purpose. and the whole meaning of the pep positive is that they're going to be really cognizant of things like diversity and inclusion things that we hear companies

talk about every day, and certainly they're not alone in talking about these things what i think is unique about this strategy, and i think this is what mr. laguarta is ultimately going to be judged on because he's setting it out right now, they're putting it into every decision they make, which is why i asked about dorito's, and flaming hot cheetos, and if they're going to get healthier and sustainable. that's really what the pledge is about here, and it's clearly pretty important to him. he replaced almost three years ago, and this is the first time we are hearing from him. he's doubling and tripling down on this whole notion of putting sustainability, and positive purpose behind some of the brands and speak to the consumers. we're going to have much more from the conversation, wilfred we did talk about of course inflation, the hot topic right now. we talked about how the pandemic has changed consumer habits, and how he's thinking of bringing people back to work, which is always an important question for a global multinational that employs more than 300,000 people so that's going to come in the next hour of closing bell.

just wanted to give you a taste there of the news they announced today. >> yeah, big time, and we look forward to the rest of the interview later in the show. meantime, we're at session highs for the s&p up, 0.9% the dow is up 0.7 and, the nasdaq up 0.8% nice bounce. president biden hosting business leaders at the white house to talk about his push for vaccine mandates we'll speak with one of the executives in attendance, the ceo of the columbia sportswear, we're back here on closing bell in just a couple of minutes.

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let's partner for all of it. edward jones . president biden meeting today with top business executives to discuss the government's vaccine mandate plan which will require businesses with more than 100 employees to ensure their employees are vaccinated or tested weekly. columbia sportswear ceo tim boyle was in that meeting. he joins us now in a first on cnbc interview

great to see you as always thanks for joining us. >> thank you it's great to be with you. >> what do you make of this mandate? do you think it's fair for the federal government to be prescribing this sort of action on business leaders like you >> actually, you know, we're thrilled this really needed to have happened we have been quite clear to our employees and the general public in our area that vaccines are going to be the only way we're going to be able to get out of the pandemic and you know, we've had mandate discussions internally in the company for many many months, and frankly, the government coming in, laying down a structure is welcomed and will be very good for the country, and i'm just thrilled with the president's leadership on this >> obviously vaccines have been provided for free by government. i'm not sure what percentage of your work force is vaccinated but for those that aren't, who's going to pick up the cost of the testing. >> that's to be determined how

many tests we're going to be performing et cetera, but the whole idea is to get people to get vaccinated the tests are invasive, they're problematic, they're costly. let's just all get vaccinated. >> so, tim, what did you learn in the meeting what did you hear from the president? did you have any of the questions answered, i know you're applauding the move but there are still a lot of questions as to how to put it in place. what did you pick up >> there's lots of questions, and he didn't have all the answers. he said it would be several weeks beforethe department of labor actually had the definitive rules it was a group of people he listened. he was very open he's open to criticism, as he said, but frankly, everyone present was lauding the government's getting together, giving us employers a level playing field. you know, we have in the past several years as it relates to the pandemic, we have been operating under rules that go county by county, city by city, and we have some stores in our

chain which are in two counties, and so, you know, how are we supposed to manage that. so this is a point ofclarity and a point of importance for the american people to know, hey, there's a path forward, let's get out of the current problems we've got everybody get vaccinated that will be the message that i deliver to our employees >> clearly you're on board, tim, with this mandate, can you understand why some people around the country aren't? >> there are many reasons for not wanting to be vaccinated in my opinion, some are valid, others are just reluctance for whatever reason. but, you know, it's important that those people who are not vaccinated understand the risks that they're putting others in as an example, children who can not be vaccinated yet, other people who have compromised immune conditions who can't be vaccinated there's a lot of things that

people have to think about beyond their own personal, you know, thoughts on independence and talk about living in an area, in a country where everybody has to be responsible for many other people. so this is not something that's taken lightly, and it's important stuff. >> did you learn, tim, who is in charge of tracking vaccinations is that on you, the employer to make sure all of your employees submit the vaccine cards to make sure none of them have been falsified, they're up to date with boosters. is that going to be something the government is taking on on your behalf. >> we didn't get the answer to the question the president said it's several weeks before they worked out the particular details, and we don't have the details yet our company is global. about half of our employees are in the u.s., other half outside the u.s., so as it relates to our company, there will be special things we have to do, just based on the jurisdictions where our employees live outside the u.s. but frankly, i think this is a

step in the right direction to encourage at almost the highest level for people to get vaccinated this is what we're going to need to do to get out of the pandemic >> tim, quick final question, pivoting on topics, how is the consumer holding up? >> you know, the consumer especially in our category of merchandise are very strong. these things aren't exactly fun to wear, and our products are fun to wear. so, you know, that's how we look at it. >> i know what you mean. >> thank you for joining us. >> wilfred is more the outdoor's man than me. columbia sportswear, ceo still to come, the chair of the fdic, news she's sharing about two corporate partners, here's a check on bonds, yields are higher today, ten-year, 1.3%,

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time now for a cnbc news update with rahel solomon. >> here's what's happening about 90 minutes from now, president biden is scheduled to be joined virtually by british prime minister boris johnson, and australian prime minister scott morrison they're announcing what's being called a national security initiative dom

dominic raab is -- the federal trade commission signaling that it's going to start taking a closer look at small mergers involving large tech firms it released a study showing that between 2010 and 2020, alphabet, amazon, apple facebook and microsoft were involved in hundreds of $1 million plus transactions that didn't have to be reported to the ftc because their value was below the disclosure threshold set by congress. the world's oldest male gorilla in captivity has covid it has confirmed that ozzie is infected 60 years old, and weighs 350 pounds 18 of the zoo's 20 gorillas have tested positive and are getting treatment. there's no evidence that the gorillas can infect humans but apparently they may have been infected by a human at the zoo guys, we'll send it back to you all. >> 18 out of 20. rahel, thank you. straight ahead, goldman sachs is buying digital lander

green sky for $2.24 billion as the firm pushes further into consumer finance we'll talk to jason goldberg from barclays about this move, d scs his conference that execthat executives have been attending over the last several days umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

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you get both. introducing the all-new 3-row jeep grand cherokee l jeep. there's only one. welcome back, goldman sachs betting big on the buy now pay later space. they will buy greensky, the acquisition will help further goldman's push into consumer finance. shares of greensky soaring on the news joining us jason goldberg, managing editor of barclays, and hosting at his conference.

we want to get to the conference in a moment, but firstly, this deal for goldman, is this a huge positive is it in fact a slight negative that it suggests that they haven't been able to grow in this sort of space sufficiently organically? >> listen, i think a few years ago, goldman sachs laid out a strategy to become a digital, you know, consumer bank, and they already have, you know, markets, unsecured lending product, a credit card relationship with app and will gm upcoming. they talk about rolling out a digital checking account, and now with the addition of greensky, they add a point of sale financing partner they scale up that component relatively quickly with this deal, and i think overtime they have the ability literally from scratch to build a very large consumer digital bank, which is an attractive space >> so i know jason, that goldman is one of your top picks to what extent is that because of these new activities or because it's best to be in the capital markets rather than a

retail bank? >> i think you get the best of both worlds. at the moment, you have a strong trading environment, a very robust investment banking environment, as well as an activem and a market, and they have several organic initiatives underway one of which is consumer banking, others around alternative as well as, you know, building out some of the wealth management product, so it's kind of both current environment benefit as well as just actions to increase revenue on the other side of this robust capital market cycle. >> let's talk about some of the key take aways, i managed to listen to some of the presentations. i mean, it seems like all the banks are still very optimistic about the u.s. consumer? >> yes, absolutely, right, we just wrapped up our 19th annual global financial services, heard from every top 20 bank, and the consumer is doing quite well you're starting to see some of the stimulus, and benefits kind of from the pandemic roll off

but the consumer has very strong balances this their channel. you're starting to see spend increase, and you know, credit quality is the best we have ever seen it. >> is loan growth getting any less elusive >> yeah, loan growth is still sluggish on the c and i front between the ppe pay downs as well as low utilization rates, and you know, supply chain constraints and labor shortages. still muted, but if you look at commitments and pipelines, they continue to build, which i think leads us to believe come next year as some of these issues are put to bed, you should see loan growth accelerate. >> pivoting back, jason, to your topic, to goldman sachs, were you surprised by the announcement that steven shur was going to be retiring at the end of the year? >> he has been in the role for three years. if you look to mid may, not that long ago, j.p. morgan, bank of

america, morgan stanley, and gl goldman sachs have announced ceo changes, that's on top of wells fargo not too long ago it's a high pressure, stressful job, and something you continue to see turnover with, and yes, gold man has a lot of employees, very capable individuals, and we think we'll manage that transition just fine >> jason good to see you as always, thanks for joining us. >> thank you, wil. microsoft announces plans orr a big buy back, those sties and more in the market zone when we come right back

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eleven minutes left in the trading day, we're now in the closing bell markets, on commercial free coverage will be going into the close cnbc senior markets commentator, mike santoli is here to break down the crucial moments of the trading day, and we have defiant's chief investment officer sylvia as well. the nasdaq high for the first time in six sessions, the s&p up .9% and rallied steadily through the day. >> interesting popped high right at the open. then there was a fade. everyone figured the script was back on, and it interrupted that pattern right now. i do think it seems like if the question coming into today was has the market's character fundamentally changed into september, in other words,

shallow pullbacks, stealth corrections but not index wide pain you eventually have dip buyers coming in. credit markets have not actually been disturbed at all over this period, the answer today would be no, it seems pretty much in character with what's gone before nothing says we're decline in the s&p. obviously takes some of the pressure off the bulls with this action today >> silvia, what do you do now? we've had a decent run so far this year. we're entering a seasonally weak period and there are questions about the strength of th recovery and what the fed is going to do. what does that mean for what investors should be doing next >> i think that it's actually a good opportunity for investors to consider buying on a dip. the market has just been doing absolutely great this year september tends to be a month where markets pull back but if you look at the overall picture, at least for this year, we have massive amounts of liquidity in the market companies have loads of cash to spend.

consumers are spending they are still spending. we're getting hopefully the variant under control again and talking about peaks again and more and more people getting vaccinated so i think when the market pulls back like this because nothing has fundamentally changed you have opportunities to get in on some of these names that you might have missed in the last couple of weeks. >> how about starbucks getting hit today following a profit warning from yum china kate rogers, pretty bearish commentary on the delta variant there. >> that's right. yum china warning its adjusted profit would take a 50% to 60% hit in q3 as the delta variant impacted its stores. more than 500 of its restaurants in 17 provinces were either closed or offered only takeaway and delivery this led to same-store sales declines the company saying the recovery will take time there the news, of course, seems to be weighing on starbucks stock

today down around 3.5% and set for its worst day in eight months china is starbucks's second home market with more than 5,100 stores there >> kate rogers, thank you. sylvia, one place you to want to buy the dip if you think it's sinking globally >> i do want to buy the dip on starbucks because i think it's such a solid company i think it's falling in sympathy for yum brands but once the variant gets under control and stores reopen you'll have the situation where the price is likely to pop back up and starbucksdoes all sorts of home deliveries and 88 different countries, too so this definitely impacts the bottom line in terms of government restrictions and closing individual stores. but in the long term, starbucks is a good company to own >> i guess the multiple was vulnerable a little bit of bad news n. some ways similar to the nike

reaction where it just had a big premium valuation in starbucks' case well above 35 times forward earnings had a big acceleration into 125 as well. so giving that back, it doesn't seem as if it's changing the longer term story. probably investors want some reassurance at next report that the china franchise is intact. it's safe enough and you are having some consumer activity come back there. but it makes sense this would be an excuse to wipe away recent gains. >> microsoft announcing plans for a big stock buyback. josh lipton has details. >> microsoft making capital return news the software giant coming out and raising a dividend by 11%. announcing a $60 billion stock buyback program and that works out to be about 3% of the company's total market cap the prior buyback announcement, $40 billion in september 2019. that's about 4% of market cap at that time. of course, saying this wasn't a big surprise the tech titan is pretty

consistent at this point in terms of raising the dividend by a similar percentage also the stock has surged a lot. it's up now about 40% in 2021. still kirk has a buy the long-term thesis around double-digit top and bottom line growth remains intact. back to you all. >> josh, thanks for that mike, put this change in context for us for microsoft >> part of an ongoing story where microsoft has just plenty of profits and cash flow to go around and to be a consistent booster of the dividend, it has been around a 10% annual rate of dividend increases in terms of buybacks, it's an effective buyback because they are shrinking the share floats down by 10% since around 2013. not just offsetting the delusion from share base compensation and plenty left to invest in the business they are in a unique spot and they've been very shareholder friendly even though it's not any longer really much of a yield it's still even at the new rate

it's 1% yield. the valuation is so high the only question is from time to time, microsoft seems like it's everyone's favorite for every reason and it gets crowded and there's not a near-term catalyst but it's not paid to stay out of it for any period of time in the last decade or so. >> no doubt. silvia, how much do you weigh cash return to shareholder decisions like this? do you go after companies that are looking to buy back their stocks and you buy microsoft on this news? >> yeah, i do. i hold on to microsoft on the news and certainly buy microsoft every time we have a dip in the nasdaq and it's one of the names that pulls back. they've increased the dividend 10% to 11% every year for the last 12 years. the $60 billion buyback, they have $130 billion ofcash so this is a quality company with loads of cash they are increasing shareholder value. increasing eps and paying out some cash to the market. i also think that microsoft is looking to do in the future is super interesting. they are making huge investments

in the cloud and cybersecurity and artificial intelligence. so they are adapting with the times. innovation and disruption. it's a great, solid company. when we think about what might happen to the market, companies like microsoft and apple, amazon that are flooded with cash are very likely to survive, even if some of the returns pull back percentagewise a little bit. >> just going to say, in terms of the buyback, it's eye catching you have alphabet up in a similar level in terms of the total size of the authorization. but $60 billion with microsoft less than 3% of the share. it's not all going to be in one year it's going to be over time no real end point on it. it's a decent backstop, but it's not necessarily something that says the company itself is going to be the main catalyst. also they are buying back shares right now at 33 times earnings they are still earning a very good return and they are reducing the share flow that's paid off over time but that's still a relatively

rich price to be kind of acquiring your own shares. >> broader market just pulled off the session highs with 4 minutes or 3 minutes left. s&p up 0.85% silvia, as we've moved sort of sideways over the last couple of months, do you feel like your clients have changed their positions significantly or is everyone still fairly fully invested >> not really. if anything, a lot of the cash is coming off the sidelines. you have trillions of dollars sitting in money market accounts or in cash and fixed income products are yielding essentially zero so equities are the place to be and i think for those investors that have some from this past year, they are looking at the buybacks they are looking at the dips as opportunities to buy back and get invested in the market if anything, we'll start to see liquidity coming back in and, you know, that's showing up a little bit today we also see it coming up in crypto the volume picked up today so could be interesting to see how much of the money comes off of the sidelines and pushes the

market forward >> 1% gain there for small caps as we head into the close. positive on the week even though it may not feel that week. up 0.5%. two minutes to go in the trading day. what your seeing in the market internals? looks like a strong close. >> you mentioned small caps. often with that is the breadth figures are positive, and they are today. the new york stock exchange, better than 2 to 1 advancing to decline. on the nasdaq, started negative but because the persistence of the rally all day you've had that fall into the positive as well mentioned credit markets have been solid through all this. really absorbing a lot of new corporate debt supply. spreads not widening at all. you see over the last month based on the etfs, high yield outperforming comparable government bonds and that basically shows you very firm corporate credit conditions and that's usually been a backstop for equities when they get slippery as they have. the volatility index, it's

giving way back toward 18, unable to sustain those levels near 20. that's making another minor spike on the chart usually when those spikes appear, it means the market is back on solid footing. the vix futures are all in the correct shape so to speak in terms of looking out future months in terms of the arrangement. that's usually fairly benign stay out of the way of any kind of index moves from here it's not a point of stress for the market >> we are up about 230 points on the dow or 0.6%. we were up 303 points at the high of the session but nonetheless as you can see from that intraday chart. the nasdaq also up energy the best performing sector today

-- 10-year yield -- [ closing bell ringing ] hard to hear you, wilfred with the crowd going wild. there's the bell welcome back to "closing bell. i'm sara eisen with wilfred frost and mike santoli a nice rally into the close, opposite what we saw yesterday the dow finishing higher by 236 points biggest contributor to the dow's gain, microsoft off that dividend and buyback announcement we just discussed adding 32 points

united, caterpillar, boeing also in the top of the list s&p 500 closing up 0.8%. every sector higher expect for utilities. energy the strongest but you saw strength in a lot of the cyclical groups. industrials, materials, financials all doing well. technology joined the party as well nasdaq closed up 0.8% led higher by microsoft, apple, tesla, amazon, google all strong today starbucks, the biggest laggard over there biggest weight on the nasdaq 100. and the russell 2000 1.1% nice pop there for the small caps which have been lagging in recent weeks s&p with a half a percent on the week much more from our exclusive interview with pepsico's ceo including how this pandemic has changed consumer behavior potentially forever. first up on the market, sylvia, defiant etf's co-founder my first comment to you, today,

did things get overdone on the selling or is there some catalyst that caused a reversal in sentiment today >> i don't think it was a news-based catalyst necessarily. and i think it was a little bit on a short-term basis. you did see some minor oversold conditions people were talking about that coming into the day. mentioned half of all stocks have been down below their ten-week trend already there was a little bit of the dry powder there for a comeback. i don't necessarily think that it's decisive in any sense we're still in the range we're still basically maintaining this upturn we've been in for a while. it's been orderly. even on the down side, it's orderly. not seeing a lot of urgency to get out. earnings estimates flattening out. and i think in general the market has been assimilating this idea that we're in a little more gentle growth mode for the economy. and the question is, is it priced in? everyone came into september feeling like there could be volatility and we got some

didn't seem to really knock anybody off their game too badly. >> retail sales tomorrow, fed next week could spice things up. breaking news on moderna, though meg tyrell >> moderna out with a look at the phase three trial participants one year out after getting their first doses. giving a picture of how immunity looks like it starts to wane what they did was they looked at the people who got the vaccine in the trial versus the people initially on placebo but then switched to the vaccine later. that gives you a picture eight months out for some of the people getting their first shots versus 13 months out for the earliest people in the trial they find that a year out, a lot more breakthrough cases. 162 out of about 14,000 people in that group versus 88 for people who got vaccinated more recently out of about 11,000 people so you do see a higher rate of breakthrough cases the longer you are from getting vaccinated. when you start to look at severe disease and hospitalizations,

the numbers get very small there. luckily. but you do see higher numbers of severe cases in hospitalizations in the people who are further out from their first dose. moderna putting out this data saying it should add to the data set that public health authorities are looking at as they consider whether and when we'll need covid booster shots there's been such debate this week, that letter in the lancet co-authored but two vaccine regulators saying there's no evidence there's waning for severe disease so we don't need boosters all of this ahead of friday when outside advisers to the fda meet to discuss pfizer's booster application. just a lot swirling here a little more data about the waning immunity. >> meg, that's exactly what i was going to pick up on. firstly, just amazing we've got one-year data now. how time flies but this surely does suggest that, despite what you mentioned from the regulators in the lancet recently, that boosters will be helpful. >> yeah, the argument from the

folks in the lancet, these fda regulators is they haven't seen convincing data yet that protection against severe disease starts to wane and this is a controlled clinical trial setting these are placebo folks who switched over to the vaccine we'll see if this adds to the strength of the data that they are looking at there a lot of the criticism of what they've looked at is real world evidence from israel we'll see all this get debated publicly on friday i'm bringing popcorn >> yeah, i was going to ask, meg, when we expect an actual fda decision on boosters on the pfizer shot, on the moderna shot and whether those are being considered differently because of different dosages and how that is going to all unfold. >> we're going to see the fda's panel of outside advisers review just pfizer's application on friday and we did see the briefing documents come out today both from the fda and pfizer on that application. we understand that the fda may be evaluating moderna's

application a little bit later and, of course, it is a different dose from moderna's previous two shots it's half the dose we don't know how long that's going to take but this, of course, all in the backdrop of the u.s. wanting to start rolling out booster doses to people eight months from their first shot next week. and so will we see the fda decide after a vote on friday from its outside advisers on this, then the cdc needs to weigh in we heard from the white house that will likely happen next week, their advisory committee will meet. and so this will all start to unfold over the next week or so at least for pfizer. maybe a little later for moderna. >> meg, thanks so much, as always let's pivot back to the market discussion. pete, you have sort of turned more bearish in july, i think it was. are you still fairly bearish or have you pivoted at all? >> no, i am. for a very long time i felt the markets have had -- equity markets in particular, have had

poor risk/reward given where valuations are the dependency on $6 trillion of fiscal stimulus is largely under appreciated by most analysts and strategists. and i think it's going to be a little bit rough for the organic recovery to fill that hole as smoothly as a lot of people seem to think moreover, even if inflation doesn't hang around for more than another six months, i think that's going to continue to -- to provide some serious headwinds for smaller cap companies which -- of which i'm probably most bearish because they'll have trouble passing those costs through to their customers because, unlike large cap tech companies, for example, they just don't simply have the pricing power the larger cap -- >> how does the inflation view fit into your picks for stocks or sectors right now are you also looking for

companies that have the best pricing power? >> yeah, you know, it's certainly a factor and it's important to look at but i think that it will be interesting to see and continue to see what the inflation ratings are going forward. you know, i buy into the thesis that the inflation numbers are transient. we saw softness this month so i don't think there will be a huge impact on the broad-based market in the year to come when i think about the markets and what the opportunity is for the rest of the year, i think about how much stimulus there is in the market right now. how much spending we're planning on doing in infrastructure, 5g, alternative energy, the amount of savings on the sidelines. rates are incredibly low earnings have been stellar, broad based across the market. in the near term, in the next year, potentially next year, we'll continue to see growth and see the years ending in the green. after that, it remains to be seen how we sort of deal with all of this and what happens with covid and inflation

in the near tergm, i'm still ver nervous. >> the back end payment that brokerages receive for directing retail trades to market makers is back in the spotlight after the s.e.c. chairman gary gensler testified this week that he's concerned about the practice the two financial ceos joined "closing bell" saying chairman gensler is not correct in his assessment of payment for order flow >> the apparent conflict has been dealt with by the s.e.c. with order routing two separate issues and the data around price improvement is so overwhelmingly compelling. $11 billion of price improvement in 2020. $11 billion and zero commission trading in this country. game, set, match >> s.e.c. chairman gary gensler joins "squawk on the street" this morning with his response >> we have something in america where nearly half of the trading

is going to dark pools and to the wholesalers, one of whom you were just interviewing wholesalers that dominate and concentrate the market and even that which is on the so-called lit markets, the new york stock exchange and nasdaq, many of the trades there are not being fully displayed. so this concept of price improvement is against a measuring stick which is a measuring stick that's not wholly reflective of the market. >> peter, where do you stand on this debate? >> -- with gamestop on the robinhood platform and the congressional hearings around that. and so i think what the s.e.c. is trying to do is they're trying to stick their hooks into something that they somehow viscerally or intuitively feel is wrong with the markets right now, and they really don't have a way to regulate it

so they are using payment for order flow as a means to do so and really at the end of the day, they are more concerned about investor protections from representations that are going on, on reddit and on other stop chat forums. i think that's really what this is about i don't see anything wrong with payment for order flow in and of itself i think this is a little bit of a way to try to get to a problem in a very round-about way. >> guys, we'll have to leave it all there for the market zone today. thank you for joining us >> thank you up next, pepsico's ceo, on how he's handling the supply chain and inflation issues plaguing so many companies right now. plus fdic chairwoman jelena mcwilliams on how they are helping support e thnation's minority owned banks we're back in a couple of minutes. ! grandparents! we want to put money aside for them, so...change in plans.

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their businesses and their operations in step with the changing consumer landscape. i sat down for a rare and exclusive interview with pe pepsico's chairman and ceo >> if you focus on the larger markets for us, we're seeing consumers still trying to figure out their new habits but we think there's a few key trends that will stay. let me give you a couple that are relevant obviously, we spend a lot of time all of us in our houses lately and we've learned to exercise at home learn at home. play at home entertain at home. cook at home we're seeing consumers staying with a lot of those habits of course, they are venturing out much more. they are doing a bit of activity outside of the house, but the house will remain a center for a lot of the data activity going

forward much more than it was before that's a trend that we're planning to capitalize on, and i think a lot of the consumer companies are thinking that way. the second one, which is obvious, is always on digital. so clearly consumers were already on digital for -- before covid. now it has really -- it's a whole new stage, especially when it comes to egrocery and how they're buying echannel and the seamless experience between offline and online that will stay we're seeing egrocery remaining a preferred way to get goods so that will stay. the other one that is very relevant for us is holistic health so consumers are becoming more conscious of their health. consumers are becoming more aware of immunity, of their, you know, the impact of food in their health >> what about the supply chain

any disruption or shortages at this time? >> you know, we said in q2 as you might recall that there is clearly a inflationary pressures in the supply chain. we're seeing, you know, a lot of the raw materials going up you know, we're not alone in this obviously, some, you know, some challenges with supply chain given that demand is so high in many markets so there are some bottlenecks on some ingredients and the supply chain. but we are used to this, navigating complex supply chains and making, you know, a good output out of a mediocre input so we're doing quite well in that respect i would say above competitors and our share of market performance demonstrates that. when we're thinking about the inflation and how we're going to deal with this, obviously, we're looking at multiple levers, cost

reduction, cost control, cost reallocation so that's one area that we're focusing on. on the other hand, we've been investing a lot on net revenue management capabilities, and, you know, we're becoming much better than we were three, four years ago. and that's going to help us as well to manage our pricing, to manage our promotions, to get the best return of our investments on the commercial side and make sure that we can navigate the p&l through multiple levers and, you know, i think we can do this better than most of the companies in the marketplace. >> shrinking packages, too would you say this is a temporary inflation problem or something more longer lasting? >> it's hard to tell, sara there might be elements that could be a little bit longer because the supply chains take longer to adjust the investment on some of the,

you know, the capacity for some raw materials might take longer. but in general, we think that this should be in a much better place by the second half of 2022 and then going forward but clearly, you know, we're -- we've been surprised over the last 18 years. i would not haveexpected that supply and inflation were going to be the biggest problems you know, if you asked me 18 months ago, i would have said demand was going to be the bigger problem and actually it is more on the supply side. so we're being surprised, and i think we're going to have to stay very agile. very dynamic >> as a company that employs hundreds of thousands of people, how are you thinking about what return to work looks like? and vaccine policy around that as well. >> yeah. listen the first thing i would say, obviously, is majority of our people have maintained their normal life of work and during

the last 18 months people in our factories, people in our supply chain, our salespeople. they have continued to work, and they are the heroes of the company. and they have kept this company performing at a very high level for the last 18 months now when we come to office workers, clearly the reality is that the expectations have changed, and we've all realized, i think, that there's a different way of working that can be very productive for the organization and can be very good for the human being with much more flexibility and able to do things that we're not able to do in the past with regards to work/life balance there's a new expectation, a new realization that we can work differently. now we created a concept that we call work that works we're trying to create maximum flexibility for our leaders to decide how they want to run their teams and give them flexibility to work at home or

work in the office one principle we're trying to follow is use the home as a default but then come to the office, or when you come to the office, use it very purposefully so don't come to the office to make phone calls or write emails that's a waste that's a lot of commute. that's a lot of waste of personal time. >> finally, ramon, covid exacerbated so many inequalities in our system, in our economy. and today actually marks the start of hispanic heritage month. you are one of the most prominent hispanic ceos, one of the few. how do you think about the opportunity gap in america for hispanics and the economy and in corporate america? and what are you doing about it? >> we've put as one of the values of the company, diversity and inclusion because i feel very passionate that that's the way we will be able to be a much better company when it comes to hispanics in particular, you know, with --

declare a set of commitments around multiple pillars, including internal representation, how we work with our suppliers, our customers to increase hispanic representation in our suppliers, in our supply chain. i think that's a big lever that we have. and then we're also working with communities. with community colleges helping hispanic kids get to higher education because i think that's a bigger enabler for future growth and future wealth creation for the community we need to, obviously, elevate the number of hispanics in our decision-making higher level forums, and we're working on all of this. as i said, this is extremely priority -- extreme priority for me as an hispanic, but i think it's not only me it's something that we share as the executive team we share as an organization. we continue this journey which is not a one-year journey but it's going to be a long-term sustained effort

>> only 16 hispanic ceos in the s&p 500. wilfred, what stood out to me on the inflation comments saying that it could last until 2022, middle of '22 he thinks it will be better. who would have guessed supply and inflation is going to be the big issue, not demand coming out of the pandemic. but that's really where these consumer staples companies are it's the worst performing sector in the s&p 500 in 2021 and one reason is because of those higher raw material costs. they get hit on labor, shipping. they're able to pass on to their con consumer as far as stock performance, it's only up about 5%, 6%. underperforming the s&p and the broader sector >> i totally agree while he didn't say that inflation is killing them, everyone seems to come on and say, oh, don't worry it's transitory. he was at least somewhere in between in terms of saying, look, it could stick around for a little longer.

>> absolutely. and i think that's part of the issue. it's up to the feds to interpret what transitory is if he sees a light at the end of the tunnel, maybe that does mean it's just temporary. but i do think it will be interesting how much pricing power some of these companies have some of them have been better than others. campbell's soup has struggled more on this front and that's why i think a lot of these companies, as i mentioned, have underperformed. certainly grocery retailers which have done a lot better because they don't get hit as hard our thanks to ramon laguarta for his first interview since taking the helm three years ago the government and the corporate world are teaming up to help support minority owned banks in the united states fdic chair jelena mcwilliams on this new initiative straight ahead. plus -- spacex just hours away from making history by launching the first all-civilian crew into space. we'll take you live to kennedy space center for a preview later on "closing bell."

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welcome back some breaking news on the house tax plan ylan mui has the details >> the house ways and means committee passed a sweeping tax

plan that would raise rates on corporations and the wealthy to pay for president biden's social spending package the final vote tally was 24-19 with one democrat, representative stephanie murphy of florida, voting with the republicans against this package. still committee chairman richard neil said the tax increased will be used to fund programs that would ultimately boost the economy. >> our attempt here is not to redistribute wealth, not to punish success, not to curb innovation, as much as it is simply to broaden opportunity. >> democrats are still actively negotiating this package, though, within their own party and, in fact, the measure that just passed the ways and means committee included a provision that would include the government to negotiate medicare drug prices that failed to pass a separate committee earlier this afternoon now lawmakers are also still hoping to add a two-year repeal of the cap on state and local tax deductions and they want to make sure to get rid of the carried interest loophole as

well as stepped up visas two provisions that did not make it into the tax plan this vote in the ways and means committee is an important step in moving forward, that $3.5 trillion package however, the path from here is still pretty murky >> ylan, thanks so much. meanwhile, the fdic putting together a new initiative to support minority depository and community development financial institutions let's bring in fdic chair jelena mcwilliams who joins us in a "closing bell" exclusive thanks for joining us. >> thank you so much for having me p. so talk us through exactly what this is it involves tourists it involves microsoft and you guys at the fdic >> of course no, it's a new fund we have set up and i got this idea of helping minority banks early on in my tenure at the fdic in 2018 when i was talking to the ceos of different minority banks and they needed capital.

they could use capital for investment in their communities. and this mission-driven banks serve low and moderate income communities, inner cities. a lot of them are indian reservations it's something we've been focusing on quite heavily as to how can we help these institutions help their communities. and i was en route in late 2018 when i watched an episode of "shark tank" on directv on the plane and by the time i landed i basically called up my lawyers and chief of staff and said why can't we create a shark tank for mission-driven banks took awhile to implement the idea but we're pleased to talk about it and we have microsoft and truist at the anchor investors. we have discovery as a founding investor and collectively these companies have pledged $120 million for the funds. we're looking for others to join, and the fund will be able to leverage about 1 to 10, the

investment dollars that come in to help these communities and the minority banks >> i love that back story particularly if you are watching shark tank on cnbc and doing full circle now to talk about it but talk us through exactly how it works you mentioned the anchor investors microsoft and truistp is that a gift from them to this fund or a loan how does it exactly work >> so we like to call it patient cap capital. so what they're going to do is put the money, it's a capital investment they'll not have any say in how this is run. but what we did was put the brand and the weight of the fdic, this venerable government agency behind this fund so people know it's a legitimate fund we need to do well by it and see it's a private investment that's been channeled

so they're going to fund initially after $120 million different banks. we have about 280 institutions that are minority depositor institutions and community development financial institutions that are insured by the fdic that will be eligible to come and make their pitches to the fund. basically they'll come, show business plans say we need x amount of money to basically as a loan, as a fund investment, to be able to invest in our communities and we call this patient capital. the investors are not focused on the returns. they're not looking at s&p and comparing how it's doing vis-a-vis s&p. they are looking at the fund and the capital in the fund on the communities that we all are hoping to help and able to have financial inclusion. so it's envisioned not as a gift as much as a reoccurring, you know, movement of money in the fund where something will be put back in the fund from these investments and additional institutions will be able to

come and be able to get some support from the fund vis-a-vis investments. >> how are you going to define success? do you have targets that you want to meet numbers? >> so we're going to define success by the ability of the fund to actually deliver on the promise that these banks are going to come and they make their pitches on helping communities in need. we'll look at the number of mortgages they've been able to originate in low and moderate income communities small business aid they may be able to get from the fund and procure it to small businesses there will be different benchmarks the fund manager will be able to set for the fund and it's all about the patient investment, the patient return of capital so then the dollar amount and the interest that comes back to the fund itself. >> jelena, thanks for joining us we have to get you back and talk more broadly about the rest of it soon. >> thank you for the

opportunity. >> jelena mcwilliams of fdic mike santoli looks at whether stocks look attractive compared to riskier debt and it's hispanic her tanitage month. we'll be spotlighting our own cnbc employees here's gina sanchez. >> my grandma came across the border in south texas during the mexican revolution and it really set her up to figure out how to survive. when i then left south texas, which was almost all hispanic and went to harvard for the first time, i was far away from home i had such family support. it's really rooted in the family my grandmother, my mother, those are the cornerstones in my family and i believe i was going to be a cornerstone as well.

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welcome back time for a cnbc news update with shepard smith. >> hi, wilf. from the news on cnbc, here's what's happening emotional testimony in d.c.

today. olympic gymnast simone biles and three fellow gymnasts accusing the fbi of turning a blind eye to larry nassar's sexual abuse he was the usa gymnastics team doctor nassar pleaded guilty to abuse charges in 2017. he's now in prison at least 40 women and girls say he molested them after team officials reported allegations to the fbi back in 2015. nbc news has confirmed one of the fbi agents assigned to the case has been fired for failing to properly investigate. hear the testimony tonight on "the news. president biden says he has great confidence in general mark milley the chairman of the joint chiefs of staff a new book by reporter bob woodward and robert costa say that milley called his chinese counterpart before the election and after the capitol insurrection with ashaurnss that president trump would not take military action to try to stay in power and president biden met with the white house -- at the white house with chief executives of

microsoft, disney and other companies that have followed his call to require covid vaccinations for their employees. the president says the economy will get stronger as more and more people get the shots. the meeting comes just days after the president announced the plan for businesses with 100 or more employees to require all of them to be vaccinated or tested regularly tonight, the new developments in the missing long island woman today police named her boyfriend a person of interest and her parents with anguished pleas for her boyfriend's help as they call his silence reprehensible. we're live outside his house in florida on "the news" right after jim cramer at 7:00 p.m. eencht on cnbc >> thank you, shep let's send it back to mike santoli looking at stocks versus risky debt mike, what do you see? >> yeah, equities based on almost every measure and based on their history look pretty

expensive, except when they're compared to the free cash flow being produced by big companies and what the bond market is priced at. this blends those two things together as the free cash flow yield, the s&p 500 has declined it's at about 4% that means a 25 times free cash flow where the market trades bond yields have similarly declined to actually below where the free cash flow yield is. plus or minus 4% you see that most often the high yield debt yield is higher than this free cash flow. we have had periods like that where, you know, stocks are yielded more and that was a decent time for equity so it doesn't necessarily mean future returns are going to be great but it means that equities are not really valued out of whack with what the market in a world of very kind of plentiful capital and jengenerous investos are pricing riskier debt >> they're kind of on par. mike santoli, thank you.

up next, the three stocks she thinks will be big winners from the economic recovery and she is expecting one plus, facebook's internal studies finding instagram can be gi, pealr many teensescily rls. the potential fallout for the social media giant later on "closing bell. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run...

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equity investment officer. oversees $450 billion in assets. it's good to have you. so what is this? is this just a fall, seasonal slump that you think will prove to be temporary and the stock market upswing, economic recovery will continue on the other side >> generally, yes. september notoriously is one of the worst months for the equity market the good news for today is that we saw the s&p bounce off the 50-day moving average. if you look at history, oftentimes it's the second half of december where you see a lot of the down side we think markets are still worried about key issues one is the delta variant, but we think it's peaking and moving behind us. the post peak growth rate will be a real issue for the markets. we have monetary policy moving from expansionary to contractionary we have to worry about tapering and higher taxes and getting your arms around the growth rates for earnings the economy will be key going forward. for the rest of this month we'll

have more drama in d.c the debt ceiling, infrastructure negotiations, budget negotiations for us, the two keys for d.c. is watching tax rate increases which we think will happen and also on the down side if there was a u.s. credit downgrade, that would be a negative we don't see that happening. what we see going forward is that strong manufacturing data and a strong consumer should drive the markets higher and that is about high single digit earnings growth we see for 2022 dh should lead to a good market, not as strong as 2020 and 2021 returns but still positive returns for the market. >> so given that we are facing some new headwinds that you laid out, even though you think the market will go higher, where do you want to be positioned? what types of stock? >> we like companies with a few tailwinds for them one is you need pricing power. we're seeing margins at almost peak levels. some decade-high levels. you need pricing power to continue to expand those margins. we like reopening plays.

as delta moves behind us, we think there will be a reopening and companies that can navigate these supply chain issues. supply chain problems will be at their highest this quarter and we should get better from here so these are companies like boeing, cisco, which had its analysts today, p/e activity all these should have the cyclicality to help us in 2022 >> talk us through the investment case behind boeing right now. >> so boeing, i think delta is providing a buying opportunity for this stock a travel slowdown because of delta. if you go back two years we're still 50% below global travel levels precovid. we also had structural growth in travel driven by emerging markets. that should come back. the catalyst for boeing is recertification for the max. that does depend on china, which is 20% of global aerospace volumes. we expect the max to be

recertified by the end of this year however, there will be political risks because we're seeing a lot of political issues with china and the u.s. right now we expect the max to get recertified. >> you picked cisco as well. and your notes say it's the poster child for the reopening child which boeing seems more the poster child for reopening than a cisco or any of the airlines or hotels or casinos. why cisco? f. you look at cisco's revus they are tied to commercial and enterprise as we go back to the office that's a positive for cisco. also a strong bags with webscale that's a positive for them they have the margin expansion with software increasing as a percent of their revenue stock ended down today because they guided to 5% to 7% revenue and earnings growth. we think that really they are undersmath margin expansion and earnings growth could be closer to 10% as they grow their software business and enterprise and commercial rebound >> thanks for joining us

>> thanks for having me. for more investment ideas, don't miss "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. up next -- facebook under fire again the social media giant facing yet another probe. this time over its impact on dsndki a teenagers all the details when "closing bell" comes back ver before. there is a new, accelerated sense of responsibility, sustainability, and social equity. at nasdaq, we call it the "era of impact." and we're at the forefront of it. innovating technology, data, and insights to help you deploy an esg strategy to be seen as the company you aspire to be. this is how you become the best! [wrestling bell rings]

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welcome welcome back facebook facing yet another probe but this time it's over the impact on children and teens. julia boorstin's got the story for us julia? >> senators richard bloom men that will and marsha blackburn announced a probe into what they call facebook's coverup of the platform's negative impact on teens. this all comes after a wall street journal expose reporting that internal facebook studies found that 32% of teen girls said instagram made them feel even worse when they were feeling bad about themselves and their bodies and this 14% of

boys in the u.s. said instagram made them feel bad about themselves instagram responding that it is starting to understand what types of content makes them feel that way and are exploring ways to look at different topics that they are repeatedly tooking at at thistype of content this is just the latest congressional pressure on the social giant guys, it does seem like this pressure is bipartisan >> it's terrible you should read the report it's on so many levels, julia, not to just what it's doing but to girls an the fact that and seemingly it doesn't make any changes. what can be done from a regulatory response. it's society

>> facebook issues i do think it's worth noting that tiktok just yesterday on the heels of this expose announced that they were going to offer their users more resources. i think the issue i question is really if teens are in a negative cycle and they're looking at this, it makes them feel worse how you stop that cycle. they want to understand how to address that i think the question is whether they can use that data >> thank you so much sarah, the only other point i'd make on this is it's shocking as you rightly say. kind of par for the course now it doesn't come as a surprise nor will it sadly. it won't come as a surprise.

when we look at all of the issues across social media that have been so obvious and one way or the other on a downbeat. that's the base case >> no, look, i mean, it doesn't affect the stock it doesn't affect -- you're right. i agree with the point on congress it's hard to figure out what do you do do you break them up does that solve an issue like that i think what is surprising is just how much facebook knows about how destructive the service is 32% of teen girls said that they felt bad about their bodies and instagram made them. if they're finding it. >> we know that. >> i don't know. i don't know if you knew the extent to it i don't know if we knew that facebook itself knew how bad it was. we watched mark zuckerberg go and answer questioners all the

time the company responds to questions like this. they don't cite specific numbers like this. the fact it's been uncovered is pretty amazing anyways, no doubt we're going to continue o on this spacex gearing up for a monumental launch tonight at kennedy space center of course our morgan brennen is there. >> we are t minus 3 hours and eight minutes to liftoff four private are behind me for a mission that may not only make history but could mark a major milestone for spacex and for commercial space flight overall. we've got the story coming up after the break. ♪ ♪

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keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved. morgan brennan ahead with the launch with a pretty interesting crew >> to say the least, sarah the 4 mission the first ever all civilian fully commercial

mission to lift off. a dragon capsule on top of a falcon 9 scientists and educators, lockheed martin. hayley arceneaux currently they are getting suited up. what else? flashing white teslas. also here, elon musk who isaac man who is raising money for saint jude's a three-day journey before splashing down off the florida coast, guys. it could mark not only -- >> we lost our shot but we got the point. we're watching morgan brennan at kennedy space center wilfred and mike, as we wrap up

the final thoughts and turn towards tomorrow, retail sales obviously in focus there's a holiday so maybe -- i don't know, there's yield adage on wall street that people are bringing out to sell on the jewish holiday you're ahead of that do you put any stock into those seasonal patterns? >> i don't know if you can necessarily use it as your main guide but it certainly is in the money this year. the sale would have been, i think friday, september 3rd. i don't know when you buy it back probably after yom kippur is over it has allowed investors to side step a handful of nasty volatility going back decades. it's probably somewhat coincidental with the fall decline and lower volumes on holidays is also sometimes associated with a bit of an air pocket type trading. also meant the u.s. was

significant outperforming a competitor the rest of the world today. we'll see what happens overnight. >> see if there is a follow through or if this is a one-day respite. >> we are out of time on "closing bell. s&p 500 up 0.85% led high by energy "fast money" picks up right now. live from the nasdaq market site overlooking new york city's times square, this is "fast money. tonight on "fast" the man who moves market says break out your rally cap. he's updating his year end price for stocks what he says at this time to go risk on. plus, towering higher. energy names breaking out today. we'll tell you what added new fuel to this fire. later starbucks gets roasted. the big headline out of china that sent this stock falling about 3.5% today we start off with a september standoff we are halfway through the month and the char