vehicles. >> don't love the paint job there. apart from that. but to compete in that mid-size suv is a smart move it would seem to me they sell a lot of those sedans. >> i wish they'd sell actual cars with than kind of painting job. make the roads more interesting. thanks for watching "power lunch," everybody. >> "closing bell" right now. see you tomorrow a big boost for the major averages today the dow is up nearly 700 points, near the highs of the day. nasdaq soaring 3%. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand in the market it is broad, this rally. almost every dow stock higher. the two that are lower, ibm and j&j, both getting dipping dinge stronger dollar. s&p up nicely, 2.5%. every sector in the green. the leader is industrials along with communication services and financials

i will also note that big cap tech is really helping things out. look at the top performers in the nasdaq 100 apple, for instance, is reversing its decline from yesterday. remember there were worries about apple pulling back on spending and hiring? today it's one of the leaders. so are some of the hardest-hit stocks in this market, like match group. marvell technology, meta, netflix earnings after the bell. we've got a great lineup coming your way, including three ceos of companies that just reported earnings in a moment we will talk to citizens financial group ceo, his stock moving higher on results, along with a boost for the whole financial sector plus the ceo of pharma giant novartis and later the new boss at hasbro, his first tv interview since taking the top job. let's get to today's market dashboard, as stocks rally mike, what are you focused on? >> well, we had this buying stampede that seemed to get

going -- >> microphone issue. >> we do have this buying stampede that seemed to get going as we sort of approached the top end of this one-month trading range we got into. systematic traders seemed like they piled on after we got into this mode for a little while above 3900 i've been talking about the fact that for the past two weeks the market has shown signs that big investors were lightly exposed to stocks come july and that's proven out we're basically just breaking above that trending line 50-day moving average also right here so a lot of things have come together to allow this chase to occur right now, up around 4000 on the s&p is the line a lot of folks feel like we have to hurdle over. i think natural gas flowing back to europe was part of it and credit spreads coming in pretty hard

take a look at small cap relative performance small cap 600. this is the more profitable small caps they're up 3%. this is a ten-year chart relative to russell 2000 general uptrend. when does it go down in big speculative moves like we got in 2020 and 2021 this is a quality safety trade maybe that means some of the speculative juices are starting to flow again. >> you said one of the reasons behind the rally is this mentality that recession is not here yet and maybe it looks like we could get a soft landing i wanted to highlight earnings so far cnbc puts together a scorecard we're knee deep in earnings season and it's still early, but look what's happening. everyone is beating. yes, there were some low expectations, but the mantra was that the analysts are too optimistic guess what, earnings per share are up 6% versus a year ago, revenues up 11%. doesn't that bode well for the economy? >> well, it does

only about 10% of the s&p has reported so far so obviously things could change. we have some bellwethers to come right now the consumer and companies are in good shape. yes, the beat rate is up around 80% on earnings. that's typical rate. the big bear case was, yeah, sure, stock valuations are down, but wait until earnings estimates fall for the second half of the year and next year so faufr it hasn't happened yet. it still could happen. we could of the economy soften up but we're not seeing the evidence in the market we're taking one step back from that idea that earnings are going to erode fast. >> mike, thank you we'll see you in the market zone we'll pick right up on what you said about the banks because citizens financial the latest to report shares in the green after second quarter results. net interest income up 31% in the quarter boosted by better margins and its recent acquisitions of east coast retail branches. shares, however, down about 20% year to date

joining us now the ceo, bruce van saun it's great to have you back on the show it does look like you put out decent numbers and guidance, a constructive tone on the conference call. explain that disconnect from what we're seeing in the markets and the bank stocks like yours and what you're seeing in the economy. >> yeah. so i thought we had a very strong quarter, so one of the things that was noteworthy is we closed on our investors acquisition, we had closed on hsbc acquisition in the middle of the first quarter so we're hard at work in integrating those two and really pushing forward in the new york city metro area the financials all are showing strong performance across all metrics, so net interest income is benefitting from the rise in rates. we also have the benefit of bringing those two balance sheets -- we're bigger now so we're benefitting from the

higher spread income that goes along with those our fees have proven to be resilient, we're doing a good job on expenses and credit is about as pristine as it gets so that raises the question -- >> what is the market telling us >> there's a disconnect between what we're producing and what the market is valuing that at. i think it all goes to the outlook for the future, that the market still feels a recession is maybe slightly more likely than not if there is a recession, bank credit costs tend to rise and that's getting priced in folks are holding back from increasing their exposure to an economically sensitive sector like banks we'll see, time will tell how things play out. but from where we sit, we have really our individual customers are very strong, they have high levels of liquidity. employment is at very good

levels and prospects look good companies have weathered the pandemic very, very well they have moved to a digital business model, they're having great years. it could be even better if they weren't contending with supply chain issues so you take that as a backdrop, even if the fed pauses a recession, i think it would be very shallow and very short and that shouldn't really result in much of an increase in bank charge-off rates in the past you haven't seen that happen, if you go in on a solid footing like we're going in now. >> i guess that's pretty bullish, a shallow and short-lived recession, bruce two spots, though, that you have to be feeling it are mortgage loans and auto loans how ugly is that going to get as the fed continues to raise rates here, and what are you doing about that >> well, in the mortgage business, we actually have a bit of a hedge taking place. so production volumes are down,

but our servicing book is throwing off more income in the higher rate environment. so i'd say we're probably at the bottom in terms of our mortgage revenues at this point we'll probably find stability here you're seeing a lot of announcements that mortgage companies, including banks, are taking capacity out of the system which should lift margins if you look out three, four, five quarters into the future. so anyway, i'm not that worried at this point about the mortgage and then auto, we ramped up auto during the pandemic, spreads widened so there was an opportunity to play there. we said today that we're now going to start put that on a glide path down. spreads aren't as attractive so we see better opportunities to grow our balance sheet in some attractive areas on the consumer side, home equity line of credit is interesting, our citizens pay and unsecured business is interesting and then, you know, on the corporate side, you know, there's line utilization that's

going to lift loan growth and more deals are getting done in the loan syndication markets as theinstitutional market and public markets have been largely shut down for the past couple of months >> you just called -- i think you called the credit environment pristine so you're not seeing any signs of credit deterioration, both in consumer and commercial? because this is, as you referenced, something that investors are really worried about. >> yeah, it's, it's -- it's remarkable, really if you look at any metric. if you look at the criticizing commercial loans and the corporate side, those trends are favorable. if you look at delinquencies on the consumer side, no alarming trends, in fact very, very stable so to have a 14 basis point charge-off rate for a bank our size with consumer and commercial is really pretty

remarkable we keep thinking that things are going to normalize but they don't. they continue to stay very solid so feeling really good right now about the credit outlook, at least through the rest of this year. >> i interviewed the cfo of wells fargo and the ceo of bank of america last week and you may be the most bullish of all of them bruce, thank you for joining me. >> my pleasure. >> with the color. bruce van saun, ceo of citizens. after the break, shares of novartis moving higher as well after earnings and revenue talked estimates we'll talk to that company's ceo about m & a opportunities, something investors have been waiting a long time for, and also some pending drug price legislation potentially from the senate you're watching "closing bell" with the dow up 700 points, near the high of the session. a broad-based rally. we're all over it here on "closing bell.

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medicines and we got back to launching medicines in europe and japan. we feel really good about the growth outlook we raised our overall top line outlook for sandos looking ahead, we're on track for our strategic review before the end of this year that's consistent with the timelines we have, continuing to evaluate either a spin, an exit or retaining the business. i think we're on track to give the markets clarity on that before the end of this year. >> got it. you mentioned the normalization that we have seen post-covid and the trends for doctors' visits and hospitals. is it at a sort of normal level right now that you would expect to see before we got into the pandemic >> i would say generally yes there's of course geographic differences but in key markets like the united states and europe, whether we look at breast cancer diagnoses, diagnoses of new patients and dermatology or rheumatology, visits in cardiology, we see

really us getting back to pre-covid levels, which is really positive for the outlook for our business and also our sector and also for patients who need better therapies. in china, we do see the impact of the rolling lockdowns on some of our brands. that was not the case in q1. we saw a little of that in q2 but we're seeing that also stabilize so that's one thing we're watching carefully, how the situation in china evolves overall i'd say a pretty positive trend. >> you mentioned the inflationary environment how does that impact you specifically and how does it impact pricing as well >> when you look at our sector, we're generally not significantly impacted by inflation simply because of the gross margins of many of the medicines that we bring to market but one place we're definitely seeing an impact is energy prices, particularly energy prices in europe we have most of our manufacturing footprint in europe so energy prices has been something we've been watching. i'm really happy to say we've

been able to offset that through our productivity programs as well as some of the transformation programs we've announced so we haven't seen that impact the bottom line, hence you saw the core operating growth of 5% in the quarter. but it's something we're going to have to keep working on and keep watching really, really carefully. now, in our sector we have limited ability to pass on cost increases with price increases we can do that in some markets and we're doing that appropriately wherever we can, but really we have to leverage productivity to offset higher energy costs. >> it brings us to the issue of drug pricing which is ever present here in the u.s. how are you thinking about this new senate bill if it should pass what would be the impact >> we're watching very carefully, seeing how the final language works out for the sector overall, i think it has good elements, particularly the reform of part d, catching patient out of pockets costs but also damaging elements as well

very onerous things that could impact us. we have limited exposure to government pricing programs in the united states. we think this is manageable. it doesn't change our near and midterm growth outlook of course we'll have to evaluate once the final bill comes what would be the longer term impact. but i would say relative to our peer set, we're at the lower end of the spectrum in terms of impact. >> so no meaningful change that you would make if this does go through in the business? >> that's right. no meaningful businesses in the near and midterm longer term we'd have to see how the details of the bill work out and see if that changes maybe the pipeline programs we might prioritize in the future but that's not something that we see that will impact us in the very near term. >> what about m & a? i always ask you about this, vas, but there's been a little pickup it's still way below expectations considering how much cash you and other pharmaceutical giants

have, what is it going to take >> you know, there's certainly the fact that the xpi for the biotech index has adjusted significantly down so certainly valuations are at an interesting level that said, what we really focus on is the science. it's a really good science that would support making m & a moves. so we're continuing to evaluate, particularly at the lower level, sub-$2 billion and trying to see are there assets that match up scientifically because we believe they could replace the standard of care and then the valuation works out. i do believe that some of the biotech companies are getting more realistic about expectations, but that hasn't fully happened yet that may take another quarter or two before that realization really sets in >> what do you think is ahead for the industry your stock has been a little bit more defensive you're obviously bigger, but we've been in a biotech bear market we've seen layoffs

i know yours was due to the restructuring, but what do you predict as far as that, especially if we enter into a global recession >> i think our sector, the pharmaceutical sector in particular, we're a countercyclical sector patients need their medicines. demand is driven much more by health care epidemiology and aging than macroeconomic factors. so my expectation is in this period we will continue to be a defensive sector relatively speaking our industry has held up pretty well over the recent quarters. then i think what i'm really excited about longer term is this new era of innovation that we've talked about in the past that we're in, where we move not just from chemical drugs and mono monoclonal antibodies, but other therapies where novartis has a leading position and what i believe over the next decade that science will continue to mature and we'll get many more medicines out that

will drive the next wave of growth in our sector and hopefully for our company. >> i followed up and asked him about the pipeline specifically in the near term he pointed to a technology to treat prostate cancer using microdoses of radiation along with a breast cancer treatment that could be a 7 to $9 billion market opportunity as potential near-term catalysts for the stock in the next year or two. let's give you a check on the markets. by the way, ibb biotech up 3%. the nasdaq is up about 3% right now, just about at session highs. up 2.6 on the s&p with every sector rallying. it's big cap, tech, smaller tech, the ark innovation fund is up 3.5%. it's being led by some of the pharma plays like bean therapeutics up 12%. a lot of these stocks have been hammered over the past few months. coming up, the hasbro ceo joins us for his first tv interview since taking on the role stocks are up but near a 52-week

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check out some of today's top search tickers on cnbc.com the 10-year treasury yield taking the top spot. actually we're seeing yields a little higher today. there's some selling of bonds. the market managing to rally even technology, despite the fact that we're back over 3% on the 10-year. perhaps that softening dollar is helping things out there's a lot of focus on the ecb meeting this week, potentially getting more aggressive maybe a 50 point basis point hike ibm is down 5.7% tesla up 2%. apple rebounding fully it's higher on the week, rebounding from yesterday's sell-off after some concerns about a spending slowdown. and the s&p 500 having a nice

broad rally today, up 2.6%, just about at the highs of the day led by the industrials hasbro beating wall street's price estimates thanks to higher prices and strong growth and it's magic the gathering franchise. up next, the company ceo here to discuss whether consumers are pushing back on these price hikes. it's his first tv interview since taking the toy maker's top job. we'll be right back with the dow up just about 690 points

take a look at shares of hasbro, falling a little short on revenue the country's largest toy maker reporting its biggest quarter yet for wizards of the coast despite a decent quarter the stock is trading around lows we haven't seen since september 2020 joining us now for a "closing bell" exclusive is hasbro ceo chris cox. welcome. i know it's your first tv interview, it's good to have you. >> thanks for having me, sara. >> let's start with wizards of the coast. the magic game, dungeons and dragons, what is driving this? >> wizards has grown and more than doubled the business.

it's a strong brand, a highly engaged consumer base and a great set of channel partners and some really good product innovation. >> is there a "stranger things" boost happening there? >> yeah. i think generally speaking d & d, magic, they really started doing havoc, the zeitgeist of popular culture. "stranger things," "the big bang theory." nerd culture is culture now. >> i did not realize that. also there seems to be a certain nostalgia of old-school games in your portfolio coming back is that a growth driver? >> yeah, we call it multi-generational play and entertainment. it really is this insight that play is not just for kids, it's ageless. people who really got into games and toys back in the '80s, '90s when i was a little kid, really i started playing, they're coming back just like classic

cars you want to go back and play the games that were big when you were a kid what's great about it is you want to share it with your kids. so we're seeing this multi-modal distribution of our fans where you've got like this big boost in gen x and boomers and now you're seeing it in gen z and millenials >> i remember playing magic cards when i was in high school maybe or maybe a little earlier. one part of the portfolio that didn't work this quarter was entertainment. a decline there. what's happening >> i think you have to piece apart entertainment a little bit. we sold our music business in q3 of last year when you take out the music business, our overall entertainment segment was up 9% year over year through the first half our tv -- our entertainment segment was down in q2 but really that's a function of when we do deliveries of different movies and tv shows. for the full year we're still projecting single -- mid-single digit growth on the top lien and

improving margins. >> inventory was also an interesting number, up 75% from a year ago so what is happening there we have some reporting we do some deep dives into the supply chain at the ports and some of the ports that you import your products from are really backed up and really clogged. so are you stockpiling ahead of the holidays what's the story here? >> i think for the last two years since the pandemic began, particularly in the back half of the year, we've had a lot of out of stock issues, which has hurt top line and bottom line performance. this year we moved up our builds of key products, particularly a lot of our big chase items for the holiday by two to three months so you're seeing that reflected in our inventory and our retailers' inventory this inventory is of great quality. it's sought-after product. we're already seeing green shoots on point of sales early in q3. for instance, we just got through prime days with amazon

which last year was in june, this year was in july. we saw an uptick of 20%. we think that's reflective of really strong product and our ability to chase it and aggressively promote with our retailers because we have it on hand. >> but what is actually happening with the ports problem and the supply chain issues, is it getting better or worse >> we're seeing it getting better our days on boat has declined by about half versus where it was at the peak of the pandemic. but it's still elevated versus pre-pandemic our supply chain team has been working with freight forwarders and the holistic supply chain. we feel good about our position to be able to work with our retailers and make sure that we're able to supply them for hot product this holiday. >> what about prices i know you've raised prices on the nerf blasters, the my little pony how is the consumer responding, and do you think that you have more room to keep doing that >> yeah, we entered the year with a relatively measured outlook for where we saw the overall economy and where the

category is going. we're maintaining that guidance. you know, on a constant currency basis we see hasbro growing in the low single digits and our operating profit margins growing frp 15.5% last year to 16% this year certainly we're seeing a little bit of an impact on inflation with the consumer, but i think you have to take that in stride and recognize that toys and games and entertainment tend to be economically resilient categories and we're certainly seeing that in our results and what we're calling for our guidance. >> that's what i was going to ask because clearly the stock has been hit and there are concerns about consumer and discretionary items. i'm wondering how you look at the portfolio and the resilience going into a recession do you think it's defensive actually >> well, i think you can control what you can control and try not to participate in a down economy. that's exactly what we're doing. when we look at the consumer and we look at the consumer profile, we certainly see inflation pinching kind of the value and

m mass consumer so we're having great opp product, opening price point product that's at attractive price points consumers can build from when we look at the high discretionary consumer, people making 100, 150,000 or more a year in terms of household income, we see very resilient personal balance sheets there, great employment rates and a high willingness to spend and relative inelasticity in terms of price points. we think our product lineup, whether it's nerf with our gel fire blasters or inside of games with what we're doing with magic and dungeons and dragons or action figures with our new selfie series where you can scan your face in with an app and create your own action figure of yourself, literally take yourself to shelf, we see a lot of demand among that consumer segment despite headwinds in the economy. >> no, there's a lot of excitement about that one, also the new wordl eboard game that you're working on with "the new york times."

so wordle is not just a fad? >> no, we've had great success with that with our board game portfolio. we're excited to be partnering with "the new york times." in fact it's only been available a couple of days via preorder and it's already setting records for us in terms of the number of people who have been buying it. >> so what is the problem, chris, with the stock? what do you hear from investors as you've begun as ceo listening the last few months. you're undergoing a strategic review and we're waiting to hear an update maybe on investor day in early october, but what do you think is the big concern now that you're past the activist fight where you prevailed in that proxy battle >> well, i certainly think there's concerns about the general macroeconomic conditions of the consumer. as i said, i think we're seeing a lot of robust demand in that historically we've seen that inside of entertainment, games and toys you know, i think we've had an amazing growth run in our wizards of the coast and digital gaming segment we are pleased with how that's

performing our tabletop revenues were up 15%. we continue to see that moving forward. so i took over as ceo about five months ago we'll continue the dialogue with our shareholders i think they're going to like the thesis that we're going to share with them, both what we do in terms of earnings calls and what's coming up on investor day in october. >> thanks very much for coming on to talk about the quarter. >> sara, thank you so much. >> what did he say, nerd culture is back. mike santoli was very happy to hear that. here's where we stand right now in the markets the nasdaq, look at it zooming almost 3%. s&p up 2.6 we are holding on to the gains and near the highs of the session. ibm and j&j in the dow, we'll hit those in the market zone in the s&p 500 every sector is higher and particular strength in financial groups, industrial groups and in some of the

fintech areas, which we'll also hit. look at netflix, it's rallying ahead of earnings after the bell shares are up roughly 13% or so over the past month. coming up, we'll discuss whether subscriber loss concerns could sink this stock. it's already down more than 60% this year. as we head to break, check out the automakers dp gm is getting a boost to provide electric vehicles for analysis and demonstration. plus a new ev chevy blazer ford is moving higher as well, so is tesla. we'll be right back. ♪ ♪ well would you look at that? ♪ ♪ jerry, you've got to see this. seen it. trust me, after 15 walks it gets a little old. i really should be retired by now.

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check out today's stealth mover. it is cinemark morgan stanley upgrading it from overweight to equal weight the analyst does not believe the return of consumers to theaters is currently reflected in the stock price. the target is $36 and that assumes a full box office recovery in 2023 it is currently being driven by younger men with releases like "spider-man" and "top gun. the crypto rally is on we will discuss what is driving those gains straight ahead plus travel stocks and cruises, also casinos sharply higher today. the latest on ittwter versus musk when we take you inside the market zone, next. er. i know what i've been meaning to ask you, carl. does your firm offer personalized index investing? hmm? so i can remove a stock that doesn't align with my goals. i'm a broker, not a barista.

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we are now in the "closing bell" market zone. mike santoli is here to break down the crucial moments of the trading day. we've got kate rooney here and julia boorstin on the latest in the twitter saga we're seeing a pretty nice rally with the nasdaq outperforming up 3% mike, if you look at what is leading the s&p, auto parts and equipment, apparel, accessories and luxury goods, hotels, resorts and cruise lienes. three of the hardest-hit parts of the market. one day it feels like we're going into a sharp, deep recession and the next day it feels like, hey, maybe we'll get a soft landing today is one of those days. >> all you have to do is turn

the dial down a little bit on the imminent recession fears and you have a lot of market that is spring loaded to react to that it wasn't one single bright flashing headline that had people saying, hey, maybe the economy is okay for a while but i think accumulation of the bank earnings telling you that things seem okay for now. again, natural gas may be flowing back into europe the dollar down three days in a row. credit spreads coming in hard from relative ly wide levels all of it working in the direction of an investor base feeling like they have to top off exposures. i think it's constructive and it's broad without being decisive yet. >> how will we know whether it is something longer lasting or if it's just a bear market rally? we've been fooled before. >> i would say it's the persistence of a move like this. if we do get little pull-backs and not back to the lows, if you get further follow-through to the upside getting above 4000 is

a start. navigating through this thick kind of out look of earnings reports over the next week and a half, plus the fed meeting, that all looms pretty large the market will have to absorb whatever comes along with that to prove that this is more than just another relief rally. >> the commodity story or anti-inflation story continues to be mixed. brent is lower, wti higher wti at $100 per barrel ibm is sitting out the rally and is the dow's biggest loser the company did post 9% revenue growth it would have been 16 without the strong currency hit from the strong dollar. but ibm did change the outlook for cash flow which is everyone is focused on. $10 million is more realistic. it reflects two things suspension of russian operations and foreign exchange i did speak with the ceo of ibm and he said the stock today is an overreaction because the bulk of the gap is the currency

that he says shouldn't come as a surprise we have covered the dollar and its march higher to multi-year highs against the euro and the yen. ibm has a big business in japan. he says we're not going to back off strategically in that business they do the business in local currency so it does get devalued when ibm brings it back home and switches it into u.s. ollars he also says it's not a perpetual issue as well so he does expect the comps to look a little easier next time around the other question people have been worried about where we're seeing gdp decline and a potential recession, what would it mean for tech spending? the ibm ceo says he does not expect any slowing he expects technology to stay three to five points ahead of gdp for two main reasons tech is a source of competitive v advantage for companies and wages are rising and in that

case tech is a solution. investors have been worried about a slowdown in the consulting business but ibm says they don't have the expertise in house so they're not cutting back on that so really pushing back against some of the slowdown narratives on the stock some of complaining about a slowdown in red hat but he says that's just an accounting issue. we'll talk more about this when jim cramer interviews him tonight on set looking forward to that. mike, there have been people that are still not fully convinced of this turn-around story. the currency, i think, continues to surprise. >> definitely one of the issues. first of all, the stock was up year to date coming into the report very few stocks were it clearly has been this complete counter move to the rest of the market it's kind of neglected and looking cheap. all those reasons people bought it is because it did have financial characteristics. if you want to be bullish on

ibm, you have to get through a lot of these seeming one-offs that are constant. the fact there's an implicit margin warn in the rest of the year guidance and some revenue growth from its former subsidiary, my point is it's always a noisy report, you have to fight your way through it to fig out what the underlying trending is. >> according to the ceo, it's pretty good. let's hit bitcoin. we're back above 23k, actually at the highest level now since mid-june kate rooney joins us kate, how much of the crypto rally related to broader market sentiment? the fact that stocks are up and there's some relief around the k economy and inflation? >> yeah, it does go back to what you're talking about crypto is getting help from some of that optimism, especially around tech stocks, and those high growth names. on the crypto specific front, we've talked about some of the liquidity issues, bankruptcies in the industry. people i'm talking to say that

has cleared a massive amount of leverage from the system so investors are hoping that the worst is over for prices at least and say crypto was able to survive this shock there's a little bit of a hope that bitcoin may be nearing a bottom one positive signal is investor sentiment rebounding if you look at the fear and greed index, it's at 30 but was as low as 6. this could be a relief bounce like you talked about when it comes to stocks. on bitcoin, there's very much a lack of new demand that may prevent bitcoin from getting to that all-time high bitcoin is rallying. you've got coinbase up double digits today, block and paypal getting a boost. microstrategy has been a bitcoin proxy. some of the mining stocks. so one big winner today, marathon digital, was up 28% at one point earlier today. back to you guys. >> anything related to crypto but also some of the fintech stocks, kate, making a move

higher and it extends beyond crypto i know we had some good credit card data from the top issuers in earnings, like jpmorgan, citigroup and bank of america. what else are you hearing? we're seeing some double digit moves in some of these stocks. >> you're spot on when it comes to fintech i think the expectations were so low and have been so low for some of the lending companies, buy now, pay later, that that has been baked into the stock price. anything that points to the opposite or points to things even being normal has been a great sign for fintech and has really helped these stocks, upstart especially today. >> but some of them like paypal very exposed to that stronger dollar so beware some of these warnings that we're starting to get. kate, thank you. kate rooney. the travel stocks are rallying for a second day in a row led by the cruise lines which are among the biggest winners today in the s&p 500 on the cruises, the cdc announced it will no longer track covid cases on these ships. it's not just about the cruise

stocks look at expedia, booking holdings also sharply higher, seema mody, so are the casinos what is driving this move? >> part of it could be what we're seeing in the currency world. we're seeing a 27% increase in bookings from the u.s. to europe this summer versus last and that has coincided with a dollar that has strengthened in recent months the removal of the pre-departure testing requirement was a big help the cdc loosening its oversight of the cruise lines, stifel analysts writing this is a big win for an industry that desperately needs it they say that it will improve perception around cruising and give the major operators, carnival, norwegian, royal, more flexibility on how they approach testing and the number of people that they allow onboard. just looking at the price action today, carnival now trading at a nearly three-week high the bookings numbers as always in the next few weeks will be key in understanding whether the lower prices that they're

offering and now the cdc news is helping them generate more demand and whether this price action is a one-day bounce or they can build on these games. the big operators are down more than 40% or more this year, sara. >> caesars entertainment is down 55, carnival, expedia also in the top ten right now. seema mody, thank you. look at twitter shares, they got a pop today midday right after a delaware judge overseeing the lawsuit against elon musk ruled in favor of twitter, saying the expedited trial will go ahead in october rather than next year, which is what musk had been pushing for julia boorstin is here julia, what does it all mean for twitter? it looks like they got a little bit of a win here in the first shot. >> this is definitely a win. twitter wanted a four-day trial in september musk wanted a 14-day trial in february the judge saying that it's going to be a five-day trial in october. it's certainly much closer to what twitter was asking for. but i would just point out that

in the judge's comments, she definitely seems to understand the risk of this whole situation to twitter i'm just going to call out what she said about how the delay in this deal risks irreparable harm to the company so indicating that she is sensitive to how challenging and problematic this has been to twitter. i would say that it really indicates that there's a chance that things go in twitter's direction. much more so than if he had ruled in anything cleoser to wht musk was asking for. >> i've got to ask you about netflix. the stock is rallying into this report, but obviously has been a big loser so far this year what should we watch >> the key number to watch with netflix as always, its subscribers. they warned they'd lose 2 million subscribers in the second quarter analysts suggest most of those are in the u.s. and canada the other number to watch is guidance for the third quarter the company told investors it

expected subscriber growth in the second half of the year. analysts are projecting it will forecast a gain of 1.8 million subs in q3 disappointing numbers could hammer netflix shares. it lost 22% after its january report and 35% after its april report so we will be watching. sara. >> thank you very much, julia boorstin and also, mike, a potential spillover effect on some of these other streaming names like a disney or time warner. we saw that last time. or warner discovery, i could say. two minutes to go in the trading day. what are you seeing in the internals? >> it's very broad this rally, sara if you take a look at the new york stock exchange volume breakdown, pretty close to 90% to the upside all day. this comes after friday was similarly, if not quite as broad. so it might fall just short of 90%. but people look at these clusters of very, very broad rallies as maybe giving some credence to the idea that you finally have some real demand coming in. we'll see if that does play out.

i mentioned credit a couple of times. you look at the high yield etf relative to a similar treasury bond this is a catch-up move, still underperforming on a year-to-date basis volatility index receding, down in the 24s, low end of the range. real bullish would be a crack down to 20 but when the s&p 500 is up almost 2.5% in a day, you're not going to have the implied volatility embedded in the vix go down too much so we'll have to monitor that, sara. >> thank you 2.5% almost gain for the dow up 741 we are now making new highs for the day. a bit of a rally here pop into the close. the biggest positive contribution is goldman sachs continuing its strong earnings reaction united health care, boeing and caterpillar also contributing the most to the dow gains. the only losers in the dow are ibm and j&j, both responding to weaker earnings, both responding

to a stronger dollar the dollar is weaker today, that may be a force behind the rally. if you look at the s&p 500, you've got every sector higher, industrials are the leading one. energy is doing well, financials having a good day, pretty much everyone in this rally with the nasdaq popping 3.1%. that's it for me in "closing bell." now into "overtime" with scott wapner all right, sara, thanks very much welcome, everybody, to "overtime. i'm scott wapner you just heard the bells, you heard the cheers, we're just getting started right here at post 9 literally moments away from one of the most closely watched earnings reports of this early season netflix about to drop any second now. we of course will have the numbers and see what the stock does there is so much riding on it given that huge disappointment last quarter, which sent those shares plunging. all of it coming after today's big rally, which is of course our talk of the tape