Skip to main content

tv   Closing Bell  CNBC  June 7, 2021 3:00pm-5:00pm EDT

3:00 pm
charity, to his partner, lauren sanchez? these are all questions that he has probably answered in some estate plan they have not disclosed. i would argue maybe they should. maybe his shareholders deserve it given this risk, guys. >> would you tell him, robert, i'll take care of his shares while he's away. >> i will. that's a great idea. >> thanks for watching "power lunch," everybody. "closing bell" starts right now. >> thank you, kelly and tyler. welcome to "closing bell." i'm sara eisen here at the new york stock exchange. major averages hovering near record highs the dow and s&p 500 are a bit lower as we head into the close. >> and i'm wilfred frost let's have a look at what is driving the action shares of biogen are surging after the fda approved their alzheimer's drug apple is weighing a bit on the nasdaq on the back of its developers' conference we'll have more on those stories ahead. meme stocks also back in focus
3:01 pm
following last week's roller coaster ride amc jumping again. games like gamestop and blackberry are rallying also small caps are seeing big gains. the russell 2000 up 1.3% and riding a two-week winning streak 59 minutes left in the session we're down just fractionally in the s&p. coming up, salesforce ceo marc benioff will join us to talk about the slack acquisition and why he disagrees with jamie dimon about employees returning to work. and later the ceo of stockx will tell us which brands consumers are paying up for. we'll discuss the growth that company has seen during the pandemic. let's start out with the market action today. major averages on pace for a mixed close. mike santoli tracking the action for us as always. >> the market pretty steady. a little pressure coming from the industrial side, material, some of the cyclical areas once again we have rotation into
3:02 pm
biotech holding things together. s&p over the last year, seven weeks pretty flat, giving back just a small measure of friday's gains so far today we are going to lose -- what's interesting here, june 8th of last year was the short term peak and reopening enthusiasm. we sold off pretty hard into that so the shape of the chart will look pretty different starting tomorrow. we also had the faang peak but it's been a steady trajectory since then look at the xlre mostly it's reits but not all. i read a lot of wall street research and technical strategy. everybody suddenly loves the real estate sector why? a combination of reopening play, inflation hedge, dividend growth maybe it's been underowned it's starting to look like the flavor of the month. maybe it's too early to say it's overloved. it seems like it's outperforming other vaguer inflation plays out there. finally, stocks versus earnings.
3:03 pm
it usually doesn't link up this early but look at the upward revision in second quarter earnings compared to what the stock market has done in the first months of the quarter and it's pretty much lock-step these are percentage gains so it's not just a highly engineered chart it shows you for as much as we're talking about, a lot of this wild activity in the meme stocks and maybe it's just momentum, this shows you the market seems at least right now to be pretty tethered to what's going on fundamentally, guys. >> mike, i guess the yields are sort of behaving for those that want to see the party continue a little bit longer. meanwhile the seasonal factors perhaps not so positive as we get into the core summer months. >> yeah, you do have to keep that in mind the second half of june has historically not been as good as the first half june as a whole has a pretty spotty record in terms of gains. july into august is when you start getting into some of the stormier months. we do have a cpi report, a fed meeting next week.
3:04 pm
you've got a big index rebalancing in the russell at the end of the month so you have to be alert for the idea that just because the market has been unusually calm, it doesn't mean that you can just project that out. >> mike, thank you see you soon salesforce shares are up about 6% year to date and underperformed the broader dow jones industrial average and other software names the company just reported a record first quarter seeing strong sales growth. double digit growth across its business, cloud and subscription platforms. i just sat down with ceo marc benioff for an exclusive interview and asked about the future of work and how salesforce fits into the post-pandemic world. >> work has changed. and because work has changed and because how we work has changed and the technology that we're using at work and how we're interacting with other businesses, every company is recreating themselves. the past is gone we've created a whole new world, a new digital future you can see it playing out
3:05 pm
today. now, of course there's still a global pandemic ongoing, so we know about that. that's why we just rebuilt the city of new york's vaccine management system and contact tracing system we just did that for the country of japan, putting in their vaccine management system as well as a new contact tracing system in victoria, in australia where they're having a new outbreak. so we're busy. we have a lot going on we have these commercial customers and public sector customers. there's a global pandemic. work is changing that's all of these things all of these things, sara, are driving our business so aggressively. >> so you don't agree with jamie dimon, employees should come back into the office, collaborate, build that culture again, no more zoom meetings >> i love the financial service executives and the bank ceos are all friends of mine and my customers, so i have to be very careful what i say, but i have a
3:06 pm
different perspective on going back in the office i'm not ringing some kind of bell saying, all right, everybody, get back in the office, here we go i'm saying the world has changed. and yes, they'll come back before this started, sara, 20% of our workers worked at home. we already knew that now i think maybe 50%, 60% are going to be working at home. i'm not really sure. but it's going to be higher. and then we're going to have people in the office every day? i don't know maybe not as many a few days probably and then we'll do other things like events, cultural engagement centers, we'll have a big training facility. all of these things together make up the new way to work. plus we need a new technology harness to help companies connect with their employees and their customers. that idea that we can do this, that's why we just agreed to buy slack because we believe we have to rebuild all of our technology as well to create this new harness that's going to support the new way to work.
3:07 pm
>> wall street is stuill skeptical on that deal y heard you paid too much, you bought at the peak of the work-from-home trend before it started reversing. it's a massive integration project. explain why investors are wrong about this one >> well, i understand because i've gone through this already three times. this is our fourth large transaction, about our 60th total transaction. you know, when we bought exact target about, i don't know, seven or eight years ago it was a $300 million product. we said we were going to build our marketing cloud. we had the same reaction the stock goes down, a lot of naysayers, you cannot do it. of course, it's a multi-billion product today. and like the customer i just mentioned, sonos or disney plus uses our marketing cloud to keep connected to their customers and two, you've got the situation where maybe companies want to connect with us in a new
3:08 pm
way. that's why we bought mule soft we bought tableau for $15 billion. it's been a huge success we reported tremendous growth of tableau in the quarter and for the company and how well the acquisition has done and now we're in slack look, we've got a great track record in acquisitions we have confidence, but also confidence in how to do this this is a time when you have to think about what is your company going to be in the future. it's not a time to think what am i going to do right now. we're doing great right now. we're thinking about where do we want to be five and ten years from now that's the exciting point. this year we're going to do more than $26 billion in revenue. wow. but $50 million in the horizon, absolutely and what's going on beyond that. so we're going fast. i mean i'm sure you can see we're about to pass sap as the largest enterprise software company in the world that's about to happen, that's imminent it's partly to do with sap and
3:09 pm
how they're doing but also a lot to do with our revenue growth and how we're doing as well. >> that's funny, i brought that up with christian klein last week i said benioff said he was coming for you he said he was flattered that you would want to overtake him and enterprise applications and it just proves that they're in the right space. >> i watched the interview, i loved it but the fact is we're about to pass sap and about to be number one. they have held the number one position now more than two decades so we're excited to become the number one enterprise applications company in the world. this is a big moment for salesforce, and i think you can see it in our market capitalization versus theirs, our growth rate, our revenue you know, the numbers speak for themselves i love christian, he's a great guy, we're friends but this is just a matter of fact we're now number one. >> speaking of competition appendicitis the slack deal, how big of a competitor and a threat
3:10 pm
to you view microsoft? >> well, you know, mauicrosoft the largest software company in the world, you know that they command the industry. they command all parts of the industry they want to be everywhere so when you're competing, and i have been competing against microsoft for four decades i understand them very well. you have to have a unique value proposition. that's the way that you have to be -- you can be successful against microsoft. as i've tried to demonstrate with my own company which i started 22 years ago here we are 22 years into salesforce and yes, we're number one in our category. >> ceo and founder of salesforce marc benioff a lot more from that interview coming in the next hour, wilfred, including when he talks about jeff bezos going to space next month, stepping down as ceo and whether he would do it as executive chairman, and bitcoin and cybersecurity and a lot more i really wanted to get you the stuff on the stock and the business of salesforce
3:11 pm
i think some of the story with the recent underperformance is investors thinking a lot of demand was pulled forward during covid-19 everything went online, everything went to the cloud and, therefore, salesforce did really well. it was a beneficiary you heard some of marc's commentary with some of its acquisitions there's a lot of runway for growth still and there's still a lot of demand. like sonos and dell and rocket mortgage where they made a lot of headway. >> and how they'll make those acquisitions successful. he's got a track record there. i do think it's interesting on that comparison with wall street and going back to work, the one big takeaway i'd have from the way he frames it, i actually don't think there's that much difference in their respective starting points. i don't think the big banks saying this is the date when this office is fully open and we'd like you to come back is the same as he sort of framed it to say i'm not going to ring the bell and say you must be back in by this date or not. and the other thing i would say
3:12 pm
as well about how the story has framed throughout, all the people in finance, people we know our own age up to the age of 60, i think those people are looking forward to going back to the office maybe that's not true when you're 30 and younger, the junior bankers, the people making the most out at the hamptons rather than working hard but i think it's a small minority of people that don't want to go back to the office. >> see, you do hear a different tone it does feel like the bankers want their people back when you listen to benioff, 50%, 60% of his workers will permanently not come back. he's counting real estate as well. >> i think that's true, they want them back i don't think there's that much big difference between what the workers are happy to do and what the bosses are saying. the other thing, by the way, we'll keep having stories for the next six months while we're in transition and the loudest voices will be amplified as opposed to the most common voice and i think in a year's time will be the real test.
3:13 pm
the transition is going to be stories coming out either way. after the break, from facetime to the cloud, we'll take a look at the big announcement out of apple's worldwide developers conference as that stock trades a little lower today. plus the doj expected to give an update on the colonial pipeline ransomware attack in just a moment. you're watching "closing bell" on cnbc. the dow is down 143, off session lows, which were down 180.
3:14 pm
esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. ♪ i wish that i knew what i know now ♪ ♪ when i was young... ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money - now or in the future. with an annuity in your plan to help cover essential expenses, you'll have the freedom to live the retirement you want. this is what an annuity can do. find the right financial professional to show you how. learn more at
3:15 pm
3:16 pm
s&p down about a tenth of 1% apple is trading a little lower this afternoon as well as the company kicks off its annual developers conference. josh lipton with the big highlights. >> sara, that keynote just wrapping up so let's get to the highlights and start with the you iphone operating system.
3:17 pm
the calls should sound more natural now. apple says new gridview when you're speaking to multiple people at the same time. one question is how zoom investors will feel about those changes. apple clearly continuing to build out facetime it will rival competitors like facebook's whatsapp. even before today mark zuckerberg talked about how he sees apple as a rival in that messaging space. ipad got a software upgrade with its operating system making the device more capable, so new ways to rearrange apps, organize apps, improvements to multi tasking. the ipad benefited as we learned in work from home. apple would like to see those tailwinds continue same goes for the mac. a new operating system with a redesigned safari browser. one of the new features called universal control allowing you to use the same mouse and keyboard across a mac or ipad.
3:18 pm
basically the ipad can become a second screen. the mac simply blew away expectations over the past year and now investors debating what happens as we return to school and the office apple's privacy push clearly continuing, including tracker blockers in the mail app app tracker report where users can see how often third-party apps use their information finally more details about the app store. the store now serves nearly 600 million weekly visitors. apple saying it has paid over $230 billion to developers since that store first launched. back to you all. >> just to add to it, i saw also the fitness plus new series of workouts they're going to have with some celebrities, special workouts with playlists from lady gaga. they're really pushing this, josh what kind of business could this become who are they going after >> the apple watch, there is a new operating system there as well and that is watch os 8. that included a lot of new
3:19 pm
health tracking features they hit on meditation and breathing exercises and fitness. remember this is how apple positions this device. it is a health and fitness product. it now accounts, according to analysts' rough math, probably about 5% of total company sales at this point. >> josh, what is the latest on apple's privacy push are they getting plaudits or are there still holes they need to close? >> there was a clear theme that has obviously put them at odds with some big tech competitors, rivals like facebook, which talked about how that could disrupt its ads business that is a value in cupertino it's one they're continuing to highlight. it also comes down to there are different business models here apple sells hardware and not advertising, so i think it has an advantage it can think about data collection differently than some other competitors can. it can minimize that data collection when it does collect it, it can
3:20 pm
a an anonimize it >> apple stock down about a quarter of a percent today. up next, five below up 200% from the pandemic lows and just reported strong results. we'll talk with the ceo about how long the consur rethmestng can last we're back in a couple of minutes. (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned. the lexus es. every curve, every innovation, every feeling. a product of mastery. get 0.9% apr financing on the 2021 es 350.
3:21 pm
of all types, whole cities and even law enforcement ransomware and digital extortion pose an economic security threat to the united states the department of justice working with our partners is committed to using all of our tools -- all the tools at our
3:22 pm
disposal to disrupt these networks and the abuse of the online infrastructure that allows this threat to persist. the sophisticated use of technology to hold businesses and even whole cities hostage for profit is decidedly a 21st century challenge. but the old add annual follow the money still applies. and that's exactly what we do. after colonial pipeline's quick notification to law enforcement and pursuant to a seizure warrant issued sigh the united states district court for the northern district of california earlier today, the department of justice has found and recaptured the majority of the ransom colonial paid to the darkside network in the wake of last month's ransomware attack. ransomware attacks are always unacceptable but when they target critical
3:23 pm
infrastructure, we will spare no effort in our response darkside is a ransomware as a service network. that means developers who sell or lease ransomware to use in attacks in return for a fee or a share in the proceeds. darkside and its affiliates have been digitally stalking u.s. companies for the better part of last year. and indiscriminately attacking victims that include key players in our nation's critical infrastructure today we turned the tables on darkside by going after the entire ecosystem that fuels ransomware and digital extortion attacks, including criminal proceeds in the form of digital currency, we will continue to use all of our
3:24 pm
tools and all of our resources to increase the cost and the consequences of ransomware attacks and other cyber-enabled attacks. the seizure announced today was conducted as part of the department's recently launched ransomware and digital extortion task force, which was established to investigate, disrupt and prosecute ransomware and digital extortion activity this is the task force's first operation of this kind this work is important because every day the digital threats that we face are more diverse, more sophisticated and more dangerous. in this heightened threat landscape, we all have a role to play in keeping our nation safe. no organization is immune. so today i want to emphasize to leaders of corporations and communities alike the threat of severe ransomware attacks pose a
3:25 pm
clear and present danger to ur organization, to your company, to your customers, to your shareholders, and to your long-term success. so pay attention now invest resources now failure to do so could be the difference between being secure now or a victim later. but also know that we are all in this together. the u.s. government will continue to do more to increase our nation's resilience while increasing the costs to our digital adversaries and those that enable or harbor them and we cannot do so without you. the department of justice will continue to evolve as the threat evolves. that is why one of the first acts i took after returning to the department was to launch a
3:26 pm
strategic cyber review that is why federal prosecutors now report ransomware incidents in the same way that they report critical threats to our national security, and that is why we will continue to work with our public and private partners both here and globally to bring our collective authorities together to confront emerging threats there is no higher priority for the department of justice than using all available tools to protect our nation that includes from ransomware and other digital threats. thank you and now i'll turn the podium over to deputy director paul abate >> that was lisa monaco, who is r spearheading the cyberattack response for the department of justice announcing that the u.s. justice department has recovered about 63.7 bitcoins valued at
3:27 pm
more than $2 million in the colonial pipeline hack and she intends to take these cyberattacks more seriously, especially if they threaten u.s. infrastructure let's bring in eamon javers. it strikes me this is a pretty different outcome to have the doj recover the money, isn't it? >> i can't even think of a precedent like this, sara. when you pay these ransoms, typically the money is just gone but i talked to lisa monaco on our air on friday. one of the things she told me is they know about the ransoms, the u.s. government does have the capability to track where that money is going all the way through the blockchain, so they can get it back if they have the legal apparatus in place to do it now the department of justice has clearly decided they need to go on the offense because, as she just said in this press conference, this is about the critical infrastructure of the united states of america so this raises the stakes here from something that looks more like bank robbery to something that looks like an assault on
3:28 pm
the entire country, when you shut down critical pipelines, the food supply and other things we've seen the past couple of weeks. this is the department of justice saying to the bad guys, we can find you, we can get the money back and we're doing it now. we hope that will send a signal throughout the bad guy community that the department of justice is on their case they're also sending a message to the private sector and ceos and business people saying you have to invest in resilience that's the word she repeated over and over to me on friday, resilience of your systems, investing in cybersecurity the government very much wants the private sector to be a partner here they feel like they're the police department in the neighborhood and they're dealing with a neighborhood where a lot of people are leaving their houses unlocked and they want people to start locking their doors because there's a crime spree. >> and the bad guy is the hacking group darkside still ahead, commerce
3:29 pm
secretary gina raimondo joins us and later jonathan tisch with his outlook on when bookings could rebound to pre-pandemic levels. as we head to break, the 10-year around 1.56. yields have really come down since friday's job report was kind of disappointing. they're a little firmer today, but still 1.56 is a long way from the high 1.70s where we were a few months ago. we'll be right back. retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable
3:30 pm
has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management. this is the sound of change. the sound of a thousand sighs of relief. and the sound of a company watching out for you. this is the sound of low cash mode from pnc bank, giving you multiple options and at least 24 hours to help you avoid an overdraft fee. because we believe how you handle overdrafts should be in your control, not just your bank's. low cash mode on virtual wallet from pnc bank. one way we're making a difference.
3:31 pm
low cash mode on virtual wallet from pnc bank. ♪ ♪ ♪ ♪ ♪ ♪
3:32 pm
monitor, check and lock down you money with security from chase. control feels good. chase. make more of what's yours. discount retail store five below net sales increased 197.6% year over year and increased 63.9% in comparison with the first quarter of 2019. joining us in a "closing bell" exclusive, the ceo joel anderson great to have you with us. an amazing set of numbers. i guess the big question everyone has going forward is whether inflation is going to be a problem for you and squeeze your margins or whether it's a positive because it drives people to your stores from the
3:33 pm
otherwise more expensive ones? >> hey, it's great to be back on with you i think last time we were on, we spent most of our time talking about masks and playing defense. it's fun to get back on now and talk about growth and playing offense. and so that's exactly what we reported this last quarter it's been our third consecutive quarter since reopening. we feel really good about the consumer, the strength of the economy, and five below is out there growing our business again. you know, we opened 68 stores, as an example. >> what about inflation? >> great question. you know, if you'd asked me that a couple of years ago, i would have probably said, you know, that's a challenge but since then, we have launched five beyond and so you can look at it two ways one, with five beyond now, we do have a way to go beyond the $5 price point. but more importantly, five below has always been a value
3:34 pm
retailer the last thing we do is try and raise our retails. so i think as inflation goes up, it gives us an opportunity to actually really increase the value that we bring to our customers. we've always been about extreme value. we've always been about expanding our reach to more customers. and so as inflation emerges, we can approach it both ways, either with moving the top line retail or else creating more value for our customers. >> you mentioned both on your earnings call and moments ago with the store expansion how hard are you finding it to man those stores are there labor shortages that you're experiencing? >> look, the labor shortages are real i must admit that. we are running on reduced hours, which has really helped us maintain a great store experience so when we are open, we want our customers to have a great experience we have raised our minimum wages and that seems to be working
3:35 pm
the other thing we do that really works well is we hire a lot of 16 and 17-year-olds it's their first job and everybody remembers their first job. our stores are a lot of fun. it's a great place for high school kids to come work we get a lot of returning college kids and so we've done an amazing job, the store teams, of mitigating the wage issues and the challenges of getting labor in the stores. >> joel, thanks for joining us good to see you. >> thank you great to see you >> it is fun to see how much you can get for $5 like a huge variety. up next, leisure travel is back we'll talk to the ceo and chairman of loews hotels about trends he's seeing with consumers and wh hene expects business travel demand to pick back up. we'll be right back. [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪
3:36 pm
♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪ flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing this information. read it carefully.
3:37 pm
- [announcer] when you earn a degree for a prospectus contaifrom southern newtion. hampshire university, it's worth getting loud... - woo! i did it! (people cheering) - [announcer] ...and emotional. - [woman]woo hoo! - cool! - [man] we're proud of you, right, trav? - yeah! - [announcer] snhu graduates recognize what they can accomplish with a supportive university by their side. - i did it... you can too! - [announcer] start your celebration at
3:38 pm
loews hotels, a company with 26 properties across the u.s. and canada will be opening its hotel in aventura. for more insight on the travel industry post-pandemic let's bring in jonathan tisch, who's also a co-owner of the new york giants we had a great time earlier, jonathan, at the nyu hospitality
3:39 pm
conference talking to the world's biggest hotel chains my big takeaway is there's so much optimism that we are going to get to travel demand of 2019 in 2023 or earlier there's pricing power. there's opening up what are you seeing in your hotels >> sara, first, on behalf of nyu, thank you for moderating that panel for your viewers who weren't aware, sara just interviewed the head of marriott, hyatt, intercontinental, best western these are the biggest players in the industry as we heard for an hour, there is a sense of optimism things are improving but there are a whole host of challenges still out there the numbers will get us back to where we were in 2019. but for that to happen, this is the summer of leisure travel there are other segments that have to kick in. most likely that will start to happen after labor day on the group side we are just starting to see business pick up at a bunch of our properties
3:40 pm
we're starting to see interest from small groups. small groups lead to bigger groups and then the whole question of business travel. and you were kind to mention loews sapphire falls in orlando and a joint venture that we have with your parent company, comcast nbc universal. when sapphire opens next week, that means that all eight hotels, 9,000 rooms, will be reopened the theme park is doing well our hotels are doing well. so we are really looking forward to a very strong summer based on leisure travel >> it's sort of interesting that the last one to open is in florida, which has really been open for business for longer than the rest of the country, jonathan >> well, that's some reasons for timing, working with our partners at universal. we wanted to open the properties in a manner that's consistent with the business that we see there. we were able to open our endless summer resort fully, which is 2,050 rooms.
3:41 pm
that is a value proposition. sapphire is one of our four-star properties and it had to do with sort of our business model, once again, in collaboration with our partners at universal. but the good news is that all eight will be reopened the theme parks are doing well and our hotels are doing well. >> jonathan, i don't know if you saw today, but the ceos of the six biggest uk and u.s. airlines made a joint statement calling on the british and american governments to open up the travel corridor. whether it's uk or europe more broadly, presumably that's something you'd love to see, not just for the leisure travel but particularly for your eastern seaboard hotels for business travel >> absolutely. about a month ago, we reopened our loews regency hotel on park avenue right now we are depending on predominantly leisure travel, to your point, wilfred. but these travel corridors are very, very important as i'm sure you are all aware, your viewers know, the eu is loosening restrictions as of
3:42 pm
wednesday for inbound international travel but it's not going to be so easy to get there and so these conversations with the airlines, and the airlines, the u.s.-based airlines are very positive about this. they are working together with organizations like the u.s. travel association to have these conversations. but it's also like many things that we see today, it's a bit confusing. the state department puts out warnings about traveling to 90 countries. and then the cdc has different guidelines and then what do we hear from the eu, from the uk. so these conversations are really important the reason the international traveler is so important to us on an inbound basis is that they stay longer and they spend more money. that is especially true here in new york city where we -- historically they have been about 18% of all visitors to new york city, that international traveler, but they are responsible for about 40% of the spend. so we have to get towards a full recovery that international traveler back into our country
3:43 pm
>> hopefully soon. jonathan, the other interesting takeaway for me was the acute labor shortage that is going on in your industry i think the hotel unemployment rate is 16%, way higher than the national average what's happening have a lot of employees just gone and worked for amazon >> i think that is definitely a problem, sara. we see that in a variety of the markets where we operate hotels throughout the country that is an issue what we are going to see is that wages are going up that's going to put pressure on expenses but we need our team members to come back. the sentiment is that a lot of people lost faith in our industry when you consider where we were a year ago, that ceo conversation amongst the biggest brands in the world was very different. there was no optimism a year ago. today there's optimism but if we can't find team members to offer the kinds of experiences that we're all happy with, that's going to be an issue. you've got hotels that can't
3:44 pm
take certain pieces of business because they can't service it. and we are all so focused on the experience of providing an environment where our guests are -- we'veexceeded their expectations we need our team members to do that so we're all employing a variety of different ideas but a lot of it as you've heard from many of your guests over the last few weeks, it's enhanced unemployment benefits, that's changing a bit. it is some of our workers changing industries, some going to amazon, some going into health care, a natural transition from hospitality to health care. some staying home with their children hopefully as schools reopen in the fall, the benefits level off, we will see a return for the kinds of workers that we need so that our guests can enjoy the experience that the u.s. hospitality industry or the worldwide hospitality industry has to offer >> jonathan tisch, thank you so much for joining us today. >> thank you, sara
3:45 pm
really appreciate it >> i also learned that room service is not going away. it actually was stronger during the pandemic with restaurants closed. >> i would expect that, i guess. >> there are few things i like more in life than room service. >> maybe not at the headline number, but per booking i can see that with restaurants closed >> it's nice we're so close. >> it's much easier to chat than with the delays. and there's something else very close to us as well coming up for the market zone. you can guess who. the market zone is coming next we'll break down all of the details on today's market action, including biogen which is jumping on some good fda news ssion has many names. this is ours. the lexus is. all in on the sport sedan. lease the 2021 is 300 for $379 a month for 36 months. experience amazing at your lexus dealer. $379 a month for 36 months. experience amazing at your lexus dealer. these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both.
3:46 pm
that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate at scale are going with a smarter hybrid cloud using the technology and expertise of ibm. keeping your oyster business growing has you swamped. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today. ♪ ♪ wlook, if your wireless matcarrier was a guyria. you'd leave him tomorrow. not very flexible. not great at saving.
3:47 pm
you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network.
3:48 pm
sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... 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.
3:49 pm
. 11 minutes left in the trading day. we're now in the "closing bell" market zone. commercial-free coverage of all the action going into the close. mike santoli is here to break down these crucial moments of the trading today. today we've got allied chief investment strategist lindsay bell with us as well lindsay, let's kick things off with the broader markets the dow, s&p 500 moving lower while the nasdaq is in the green. the russell 2000 is outperforming the major averages dow low is down 190, high up 65, currently down 150 or so mike, in one sense, though, tech quite resilient in the face of that global tax announcement. >> it is, especially biotech and social media facebook all-time high today everything but apple kind of benefitting. i think it really just to me reinforces this continued instinct for rotation when in
3:50 pm
doubt. in other words, we have caterpillar down weighing on the dow. a lot of the global trade leverage names are struggling just a little bit. materials as well, because commodities coming off the boil. biotech and some of software can come back and hold the market st steady i think that's the role tech has played is more ballast than leadership it's working so far and until it proves otherwise, it seems like this steady grind of a market is what we have. >> nasdaq up 0.4 of a percent, lindsay, s&p 500 is down a tenth of 1%. we've seen a little outperformance in the nasdaq just in the last few weeks although on the days when it underperforms it's a little more severe where do you stand on where investors should be allocating back into tech after a bit of a rough patch or stick with cyclicals? >> well, i don't think investors should have ever left the tech space in general i think they should have right sized their portfolio to make sure they weren't so overweight
3:51 pm
tech but just because of what mike said, having some component of tech in your portfolio is important because when there is uncertainty or lack of clarity in the marketplace, you see investors rotate back into these names because they are big names and longer term names which our economy is going towards to become more digitally connected, more socially connected. so i don't think a lot of these names are going away any time soon they just may not be as exciting as some of the newer tech maybe meme stocks you see out there. >> there's another class and that is the pandemic winners wall street gaining confidence that some lockdown winners will finding success in a post-pandemic world. for instance, atlantic equities initiates etsy with an overweight rating. e e-commerce adoption and consumers desire for meaningful consumption. the impact from peloton's treadmill recall is likely overstated they are bullish on peloton
3:52 pm
saying it consistently u underpromises and overdelivers this has been a theme. some of these have been hardest hit, both etsy and peloton even lululemon a lot of people just think that it's not the time for that as the economy reopens. yet some of the companies are coming out and surprising investors. >> right this is where the debate comes in i think there's a bit of a straw man argument this stuff isn't going away. nobody thought it was going away the question is how much of the pandemic premium would come out of it. both of these stocks are down a lot but only back to october or november levels, meaning they have still retained a lot of that huge surge they had over the prior year that shows you that they still do have a market expectation that they're going to have a durable franchise even if you do have a lot of debate around the valuation. >> lindsey, more broadly, where are s&p 500 multiples now as i guess earnings numbers have caught up a little bit with the
3:53 pm
multiple but maybe not fully >> yeah, no. the p.e. ratio on the s&p 500 on 2021 is about 22 times, which is still elevated versus historical standards which gets you to about 16 times but it's come down steadily as we've seen earnings numbers move high oerster we've seen earnings numbers move high oerst steadily and the mart numbers stay put since mid-april. i think that's an encouraging sign for the market overall into the future as earnings estimates move higher, i was very surprised with q1 results because the numbers moved up swiftly going into the reporting period and then there were big beats. that's pushing second quarter numbers higher and second half numbers higher where you're going to see a little tougher comparisons granted on average in the third and fourth quarter of 2020 we saw earnings decline 4 percentage points. so it gets a little bit tough
3:54 pm
e er, but not the toughest comparisons we've seen overall earnings estimates moving higher is a good thing for the market >> let's bring in cantor fitzgerald's senior analyst with a neutral rating on biogen coming into today, what was your percentage expectation that we'd get this positive approval and what does it mean for the stock? >> i mean i was 50-50. i thought it was very hard to determine. the panel was certainly negative they had one successful trial and one negative trial i try to reiterate to our clients that the fda could work with biogen to find a way to get this drug approved i think in the past couple of months that's what's been done ultimately they ended up with the accelerated approval they have to do a confirmatory trial but they are relying on
3:55 pm
the biomarker for efficacy here. >> and so what was priced in before today and is now. clearly it's up sharply on the day but off its highs a bit. >> i think it was about 50-50. most people were like it's 55 or 60%. as we get closer to kind of the approval date of today, i think we all got more and more confident that that would happen if the fda were going to reject the drug, why wouldn't they like two months ago as we got closer, the market started pricing in a little more confidence our estimate suggests even in a relatively conservative way, this drug could sell $8 million on an annual basis as a chronic therapy. i think looking at the pricing today, that could even be potentially conservative i think the market will try to determine how big this drug is going to be. it's clearly one of the biggest
3:56 pm
biotech approvals in history. >> the sixth leading cause of death in this country is alzheimer's and never had a drug approved for it. are other companies likely to follow suit? does this ramp innovation in any way in other companies we should be watching? >> absolutely. i think this really -- if biogen had not been approved today, i think there would be deceleration in alzheimer's investment somewhat. i think it would take a breather that's what's happened historically when we had other drugs that hadn't gotten approved but had similar mechanisms of action today opens up the door that there's a pathway of accelerated approval and that's huge. so i do think this will bolster innovation in alzheimer's. >> just finally, what are the expectations on how this is going to be priced, and are they going to see some pushback on this great news in due course because of that? >> biogen reported their price around $64,000 for a 70 kilogram
3:57 pm
person i wasn't particularly surprised. roughly the estimate is about 6 million people that could be eligible, not to mention mild, kind of cognitive impairment which is even larger so i think it's reasonable certainly this is a devastating disease that cost the health care system annually per person an incredible amount of money. so i think they priced it for the benefit that they should >> thanks for joining us good to see you. mike santoli, biotech as we mentioned, a decent day because of this largely, but how have they done as a group of late >> it's been really under a lot of pressure. it actually peaked back in february as a sector it really has been trading along with a lot of the high concept tech names because it is mostly a risk appetite place so a huge bounce not just in biogen but the whole group today. the xbi is up about 4% this is one of those things where it could create a model for how other drugs might get
3:58 pm
approved in a little bit more of a fast track i think there's a cynical calculation of the market which is whatever the efficacy of this drug, it's going to get prescribed all over the place because this is such a devastating disease and there's so few other options that people will try it in very large numbers. >> two minutes left. nice final two hours of trade for the nasdaq. >> firmed up in the market had a little flutter to the downside it didn't really break any significant levels and didn't get anywhere near where we started friday morning's trading. it's been positive, not overwhelmingly so, but basically solidly ahead in terms of advancers versus decliners the nasdaq even a little better than that. take a look at the u.s. dollar index. we had one of these bounces in the dollar into late last week and then the jobs number took some of the steam out of it. it's a number that says no real imminent taper a lot of the reporting about how the fed is being deliberate about this whole thing back in '89 those lows from january were multi-year lows as
3:59 pm
well so that's a decent back drop the vix really can't do much today even though it builds back a little premium on a monday has not gone back up to 17, so clearly a downtrend and also showing you that these incursions of oddball volatility coming from the meme stocks, which is continuing today in slightly lower volume, is not really disturbing the overall volatility picture for the broad indexes, sara. >> we haven't checked amc yet in today's show up 14% as we head into the close. one minute left to go. take a look at the dow right now. it's a little lower. united health care is the biggest weight on the dow. 122 points lower, down 180 was the session low. microsoft is the biggest contributor to the gains along with boeing. apple turning positive after this afternoon's worldwide developers conference. as far as the s&p 500 is concerned, it's pretty much unchanged. real estate is the best performing sector. communication services and
4:00 pm
health care as well. facebook stock is at a record high but you've got weakness in some of the cyclical areas of the market materials, industrials, financials and energy. the nasdaq outperforms not as much as the russell 2000 as far as the nasdaq is concerned biogen is the biggest winner and biggest contributor to the qqqs along with microsoft and facebook. >> at the close, just slightly lower on the s&p 500 welcome to "the closing bell." i'm wilfred frost along with sara eisen mike santoli nice recovery in the final couple of hours of trade the s&p is only down 8 basis points the dow down 127 points the low of the day down 190 and the nasdaq up 0.5% materials and industrials the worst two sectors. coming up on the show, u.s. commerce secretary gina raimondo will weigh in on the labor
4:01 pm
market andhow washington is encouraging global business leaders to invest in the u.s. plus more from our interview with salesforce's ceo marc benioff. lindsey bell is still with us and gene munster from loop ventures joins the conversation. mike santoli, to you first in terms of the performance we saw today. meme stocks we only just mentioned towards the close there, getting a nice little boost today and not taking any traction away from the rest of the market. >> not much, although a nice boost when it comes to amc but significantly off the intraday highs. the volume while tremendous was nowhere near what we peaked at last week. who knows if things are cooling off. but the overall market just a whisper from all-time highs in the s&p. they're holding most of friday's gains. all of that is mostly positive i still think we have the debate whether this is just defining the upper end of the trading
4:02 pm
range. we're past that peak acceleration trade but it's all netting out to pretty benign, stable tape at this point even if june was supposed to be a little rockier. >> lindsey, real estate was the best performing sector the reits have heated up what do you think about this sector >> yeah, i think it's interesting, they have popped up and been kind of out of favor for quite a long time so maybe they're peaking interest as a potential inflation hedge or as interest rates rise, there's potential for dividends to increase as well so this is an area that i think are catching investors' eye again. they haven't done that in a while so it's just something -- it gets back to that looking for value in the market. i think that's what we're doing with reits. >> gene, we're going to get on to apple specific news in just a moment but more broadly the tech
4:03 pm
space. do you feel there has been a nice moment of consolidation for some of those mega cap names in particular that allows them to steadily build on what has been an amazing medium, or short-term run for those stocks >> that's my sense too don't be fooled by i think the lack of what will be some subtle announcements. there's no really big fireworks from big tech but there has been some consolidation i think about apple and amazon in a good category there the fundamentals, dependents on these will continue to inch forward. the next thing will be the june report but i think this has been healthy, what's happened with the market more recently and i think some of the emerging tech names, we weretalking about the real estate play loup is an investor in zillow and open door. i think those stocks are examples of this emerging class future of tech that has just been throttled recently.
4:04 pm
i see opportunity for those to regain some footing along with the more important big tech companies like apple in the future. >> lindsay, over the weekend g-7 met. treasury secretary yellen has been pushing this idea of a global minimum tax there are a lot of hurdles to that happening, including congress multi nationals get taxed in places where they do business. how does this impact some of the biggest stocks and the market? >> well, as you know, sara, about 50% of s&p 500 revenues come from overseas, so there will definitely be an impact but i think there's probably a sigh of relief that the rate was 15% and not higher we know that president biden was looking for something a bit above 20%. so i think there's a little bit of a sigh of relief. like you said, there's plenty of hurdles to get over so we're in a wait-and-see mode. just in general i think the tax discussion on wall street and amongst investors has moderated
4:05 pm
a bit over the last couple of weeks too, which is a positive in general overall for the market. >> gene, what's your take on that for companies like facebook, like amazon, they're not really paying much tax at all in certain jurisdictions, and they will nowhave to and it will be additive to their total tax numbers, not alternative >> correct and i think the market obviously has a great factoring in method of what's going to happen in the next six to 12 months so i think a lot of that is priced in i think about companies that maybe have more risk related to corporate tax. you know, you could say if there's something about repatriation, taking the conversation a little bit of an overseas direction here, but i think that that's something to consider it doesn't change the long-term fundamentals of these businesses just to put it most simply is i think that part of this consolidation period that we're talking about earlier in tech was investors just getting their
4:06 pm
heads kind of oriented to what this new future with the new tax structure will look like. >> apple of course hosting its annual worldwide developers conference today the company unveiling its newest iphone software, ios 15. new features include spatial audio and portrait mode for facetime, redesigned notification and focus mode. the ipad ios 15 and watch os 8 a lot of headlines coming out. the stock is essentially exactly flat having been down for a lot of the session what is the most important here for today's announcement >> well, you can get lost in all those announcements that you rattled off and kind of lose track of the bigger picture. i think there's two important takeaways. there is a theme with all these announcements today about really tying these different operating systems, these platforms
4:07 pm
together apple is in a unique position. no other company in the world can really bring all these products, these platforms together and i think you saw a lot of that with some of hose features that you had mentioned. what it means for a typical user is that to have an ipad, a mac, an iphone, it just simply works easier for you i think that that also plays into that accelerating digital transformation that we're going through so that's one big takeaway i would also anticipate that some people will look at wwdc and say that innovation is waning, these little features aren't enough. that's not what a big tech $2 trillion company should do i would caution that view does not take into account a lot of things we did not see today. we refer to this as the calm before the innovation storm. i would put today's wwdc and even maybe next year's into context. don't be fooled into thinking
4:08 pm
that innovation is anything but alive and well augmented reality is a huge deal what they're going to do in transportation i think all the little pieces they're talking about today are subtly laying the groundwork for this new growth curve that we expect apple to step into. >> what's going on with the stock, gene? it really hasn't done much over the last few months. it's not too far off of the high but it's not making new highs. >> the biggest issue is what happened in the march quarter. the numbers were so impressive i watched apple for a long time. the upside that they posted was as strong an upside as i've seen in the last decade and i think that lays the groundwork for investors to be concerned that they essentially just pulled revenue forward. so when we look at a stock like facebook that's up 24% this year and a stock like apple that's essentially flat, it really causes you to question what's wrong with the fundamentals. that's not the case. i think investors are underestimating how sustainable
4:09 pm
this digital transformation i mentioned before is. and so it's just going to take time for apple to keep putting up good quarters and people to realize that this growth story can continue i've heard it before that the apple growth story is over, and i believe strongly that we're still in a period where this company can grow above other tech companies for the next five, ten years. >> mike, do you think that's a fair summation or will people still be focused on things like iphone sales in the next quarter rather than allowing this multiple year growth story to play out >> they're certainly going to be focused on iphone sales forever, but i think it's not to the exclusion of everything else gene is right about how the stocks have performed year to date over a one-year period apple has still outperformed facebook. i thought it was interesting, facebook was up on higher than average volume zuckerberg came out and said we're going to keep our app store wide open and not charge for these things trying to present itself much more explicitly as a direct
4:10 pm
apple competitor, rival. and i think it just waxes and wanes in terms of investor preference and what kind of profit model they'd like to play right now. >> do you have a preference, lindsay? facebook is breaking out here and making new highs every day. >> yeah, no, i find the apple story very interesting just to what gene said i think this is an underappreciated growth story and a big component of the information technology sector in general, so of course it's going to weigh heavily on the s&p 500 tech sector overall. but if you look at it from a valuation perspective, it's the cheapest of all of the faang names. and it's expensive by historical stands, but they're changing the makeup of the business that warrants the new multiple, the higher multiple potentially. and so i find it interesting here i don't know what it's going to take, though, to get it really moving and getting the momentum that you see in a stock like
4:11 pm
facebook. >> we've got some everarnings to share with you stitch fix results just in and out. kristina. >> we are seeing a strong beat for stitch fix revenue at 536 million versus $511 million earnings per share, we were expecting a loss so they did have a loss of 18 cents per share, but it's a loss that's a little better than what we were expecting. originally negative 27 cents so overall the company has been doing well they provide a subscription service and they have new active clients. they increased the active client list by 4.1 million so that's a 27% increase last but not least they did provide strong revenue guidance for the upcoming quarter in q4 these are the latest numbers we're seeing often with stitch fix you see a huge swing and once again that's the case the stock is up 17%. >> this time it's higher
4:12 pm
last time it was lower. >> yes. >> and don't miss tomorrow, we've got an exclusive interview with the stitch fix incoming ceo right here on "closing bell. we thank you, gene munster and lindsey bell for joining us today. straight ahead, sneaker resale platform stockx surging to a $3.8 billion valuation. up next, we'll talk to the ceo about the gamification of collectibles and whether meme stock mania is hing avan impact on his business. we're back in just 90 seconds. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit ♪
4:13 pm
some say this is my greatest challenge. visit governments in record debt; inflation rising, currencies falling. but i've seen centuries of this. with one companion that hedges the risks you choose and those that choose you. the physical seam of a digital world, traded with a touch. my strongest and closest asset. the gold standard, so to speak ;) people call my future uncertain. but there's one thing i am sure of...
4:14 pm
stockx, the leading global marketplace for everything from sneakers to trading cards to electronics releasing a new report today, floociting 37% of sneaker buyers citing investment opportunities. there was a four-day event with exclusive promotions joining us is the stockx ceo scott, it's good to have you on the investment motivation for sneaker buyer, this is nothing new but has obviously taken off during the pandemic. is it still as hot now that things have reopened and people are out and about? >> well, in 2020 we saw accelerating aspects of the business, both our international growth as well as our growth in the nonsneaker category. but i think in q1 we crossed a really interesting dynamic, which is all of the talk around alternative asset classes and
4:15 pm
sneakers and collectibles and electronics and apparel being part of an asset class of current culture that this new generation of consumers is shopping and so our platform continues to be a place where you can find that sought-after product that you can't get anywhere else, but you can also trade it. as you said, 40% of the people trading on this platform are making an investment decision in products in this current culture. it's a really exciting trending. >> we've talked a lot here on cnbc lately about amc and gamestop and the whole meme stock trading phenomenon driven by retail traders. do you see an overlap with your business in other words, the whole speculative nature of buying some of these stocks, does that carry over into the sneaker collecting world >> i think the similarities are what you're seeing is the organization of enthusiast communities. our platform represents many of those enthusiast communities
4:16 pm
that are very passionate around what they're collecting or what they're trading. we see it in the prices and asset prices in sneakers but also in other categories like collectibles, which include trading cards, pokemon cards we've seen it in the resale attributes of electronics trading on the platform where people are finding economic opportunity in the asset class so i think the similarities are very much community-like and engaging around these hot topics and driving the price appreciation of many of these assets >> so, scott, clearly you've seen great price appreciation. what about the length of time people hold the assets for, has that shortened are you seeing signs that people are trading these things for short-term gain as opposed to long-term investment now >> well, stockx is a catalog of over 100,000 items that trade on the platform, again, across multiple categories. 60% of those items are traded
4:17 pm
outside of its eight-week release window so this is an item that somebody has held maybe in their closet and then subsequently trading that product. certainly as more and buyers come in, we were growing about 100% on a year over year basis. those buyers and traders are effectively increasing the velocity of which these products are trading on the platform. >> i always say that -- i cover nike and adidas and under armour you can always learn a lot about what's hot and resonating with consumers by looking at sites like yours and other resellers so what are the hottest sneakers, and who's making them? >> so as we look at our categories, we look at what propels the growth i think what drives our growth is that brands are releasing great products into the marketplace. so nike, adidas, but also across these other categories, even electronics you're finding that these brands are entering into
4:18 pm
interesting relationships that drive inspiration to their consumers. so it could be a collaboration with travis scott. it could be something with an influencer and this is driving traffic to the brands, driving traffic to these sought-after products, and creating a lot of excitement around current culture for this next generation of consumer. and that's a strategy now that's being employed by brands around the world. and then they're also leveraged in the dynamics of different growth rates in different places around the world, so releasing product that could be product that's released in hong kong or japan or europe. and stockx opens up authentication centers, up locks the supply coming out of those geographies and makes that product available to buyers around the world. >> scott, are we only seeing massive growth in the kind of elite, premium luxury products which appreciate in price with
4:19 pm
age or are you seeing people make use of discounts of used items? you mentioned electronics. i can't imagine people want older electronics, so is that kind of a secondhand market, much like secondhand cars at cheaper prices >> well, electronics for us started as a category in q4 and was largely driven by the console releases in xbox and playstations those continue to trade at tremendous resale value. the playstation is still trading at over $750 you can also buy products from sony, microsoft, apple, on the platform many of those products are actually trading below retail price because those products have been released out into distribution channels and resellers are reselling those products on platforms like ours. increasingly, again, brands are releasing these hot new items. one of the hottest selling sneakers on the platform is just a regular air force 1 nike not a tremendously sought off collectible sneaker, but for a
4:20 pm
first-time buyer coming to the platform, very engaged, get involved into the brand and then trade up with your passion in the category >> scott, thanks so much for joining us great to see you. >> thanks so much. let's get over to mike now taking a look at rising m & a amid a flurry of deal announcements from kkr, vulcan, carlisle and blackstone. >> yeah, about $50 billion worth of deals announced before the market opened this morning, so that's a pretty decent little run of monday mergers. you see we are actually near relative historic highs. this is a quarterly breakdown. with those deals announced today we're probably up $600 billion with three weeks left in the second quarter clearly we're above 2019 levels which makes a lot of sense stock market at all-time highs, the corporate bond market very, very accommodating obviously you have companies looking for strategic options as we come out of the pandemic.
4:21 pm
so it seems as if we'll have a record-breaking year which makes a lot of sense also companies just have no need to choose among capex, buy-backs, dividends and m & a because they are so flush with cash take a look at an area which is spin-offs. there's an etf that tracks recently spun-off companies. this is not counted in the merger volumes, it's a separate category of transactions it really has outperformed nicely over the last year. you see basically investors very much want to flock to the fresh idea or corporate restructuring theme. this is something that also accompanied the late '90s bull market as well as the mid-2000s. just one other element aside from just the earnings growth that people are watching. >> mike, thank you. salesforce ceo marc benioff has been outspoken with his views. up next, his reaction to the extended ban of former president donald trump and why he says the
4:22 pm
government needs to step in. as a rereminder, you can wah or listen to us on cnbc app. we'll be right back.
4:23 pm
look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge
4:24 pm
at or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. ♪ ♪ brother against brother. get in. [ ominous music playing ] this should be interesting.
4:25 pm
welcome back cooper software's results are out and kristina has them for us. >> it is a double beat we are seeing adjusted earnings per share coming in at 7 cents analysts were expecting a loss of 19 cents, so much better on that front then if we're talking about revenue for the san mateo-based company, revenue was at $166.9 million. slightly higher than people expecting $152.6 million the company did say that they're optimistic about the future. they said that the next quarter they believe revenues and earnings per share will continue to climb however, the stock is down over 5% no major catalyst thus far back to you. >> kristina, thank you very much the doj holding a news conference last hour about the colonial pipeline hack the department saying it has recovered the majority of the ransom paid and it intends to take these cyberattacks more seriously as they threaten the nation's critical infrastructure
4:26 pm
earlier today i spoke with salesforce ceo marc benioff and asked him about solarwinds to colonial pipeline and whether it impacted the demand to cloud services here's what he said. >> there is no finish line when it comes to cybersecurity and i wrote that in a report called "cybersecurity, a crisis of prioritizat prioritization." i wrote it in 2004 in that report i tried to call for the government to do more basic research, looking for an internet 2.0, a more secure, more scaleable, more sustainable internet we're still working to make those things happen. it's very important that all of us continue to invest and grow and really focus, i think, on this critical aspect of our industry it's not something we can just delegate to government that's not going to really work. we have to do the work ourself we have to keep our companies safe this is a lot of hard work this is not easy
4:27 pm
this is difficult. like i said, there is no finish line when it comes to cybersecurity. >> another topic you like to opine on and i'm always curious to get your thoughts on is social media you've obviously been very critical of facebook and even this decision they have had to make surrounding former president trump. now that they have pushed that out for two years, january 2023, do you think they handled it well >> well, it's connected to your last question. what are your highest values what's truly important to you in your business, in your personal life what is your highest value at salesforce, trust trust is our highest value nothing is more important than the trust that we have with our employees, our customers, our partners, all of our stakeholders i don't think facebook can say that yet they need to focus and double down on trust. because they haven't been able to do that, we have continued to deal with all of this complexity of facebook. outside counsels, inside counsels, internal reviews,
4:28 pm
government reviews it's like just focus on trust and truth. be about the truth be about trust this is important -- it's an important vehicle to get communication out. other social media organizations are like that. but, sara, look it, you're an incredible journalist and incredible media organization. i also own a media organization. i own time we're responsible for what we say. that is a critical tihing they are regulated very differently. the government needs to step in and regulate facebook. they are the new cigarettes, everybody understands that now i think when i said it in 2018, no one really understood what i meant. it's addictive, it's not good for you, they're out for your kids, they need to be highly regulated. that's where the government does need to step in. they need to come in and really address this company and what they're doing. >> are you disappointed that we haven't seen action from the biden administration there was some thought that they would be tougher on companies
4:29 pm
like facebook. >> well, i think that that case is still yet to be made. i hope that that happens i think it's extremely important that they do that we are at a critical time where social media, as you can see, can dramatically impact so many aspects of society. the political markets but also the economic markets, the stock market, cryptocurrencies all are being influenced by what's happening on social media. so we need to understand the power of social media, but also the values around it and then really ask ourself how are we getting back to trust and truth. if we can do that, i think that we can really make these great assets for our entire world. but today i don't see that happening. >> what do you think about jeff bezos going to space after he steps down as ceo of amazon next month? >> i think it's very exciting that he's willing to basically say if you want to use my product, i will use it first and i think that's 100% the
4:30 pm
right move and i'm excited for jeff i'm excited forhis passion for space. i know he's had that passion since he was a child and to see him taking himself to space and being the first one really in the world, the first ceo in space, that's pretty exciting that's really cool >> so when you become executive chairman of salesforce, is that something that you would do? >> i think i might have to take a couple of ativans before i climb in there how about you, sasra >> i think so. i'd need something strong. is it something that you see as a viable industry? >> i actually think that space is a huge category that we should invest in i'm an investor in spacex. i'm an investor in as tra. i'm also an investor in an amazing satellite company called swarm and i'm also an investor in planet labs this category of space, that's something that time ventures, which is my venture capital arm,
4:31 pm
has invested very aggressively in i think those companies are amazing and the work they're doing and the entrepreneurs and kind of the visions that they have a lot of them came out of jpo and nasa and then they're creating these amazing new companies. it reminds me of cloud computing 20 years ago >> i think that's the headline, reminds me of cloud computing 20 years ago, which he got into obviously in a huge way, wilfred. he's also on this decision panel with a few other people of who's going to decide the first citizens to go to space from elon musk's spacex i didn't actually know that he was an investor in spacex and he's quite bullish on the sector. >> and clearly across the sector very bullish, though doesn't want to go himself. >> would need a few ativan which i'm in the same boat that would be scary. >> i just don't want to go, full stop i do agree with what he said, it's such a strong statement by bezos to say he's going himself and will be the first one there. you saw richard branson tweet
4:32 pm
about it, highlight that bezos started work a little sooner >> because he's going to get questions about whether he's going to go on his first flight. nothing nice to say about zuckerberg, though, and facebook, which is very consistent but he wants it regulated. still to come, the u.s. department of commerce holding its annual summit focused on investing in american businesses commerce secretary gina raimondo will join us after the break to discuss. june is pride month. all month long we'll spotlight cnbc contributors, business leaders and our own producers. here is maeve. >> the way around stigma is encouragement and support for those around you i was very excited when i came out at goldman sachs two years ago i had that support from my colleagues there was one colleague in particular who sent me flowers on that day. this was a straight cisgender
4:33 pm
person and that gesture knowing that i thhithe support from somebody at e ghest level of the firm made all the difference to me.
4:34 pm
4:35 pm
[typing sounds] [music fades in] [voice of female] my husband ben and i opened ben's chili bowl the very same year that we were married. that's 1958. [voice of male] the chili bowl really has never closed in our history. when the pandemic hit, we had to pivot. and it's been really helpful to keep people updated on google. we wouldn't be here without our wonderful customers. we're really thankful for all of them. [female voices soulfully singing “come on in”] time for a cnbc news update with shepard smith. >> thanks very much. from the news on cnbc here's what's happening evacuations under way southeast of phoenix where a wildfire is raging and growing the telegraph fire they named it is threatening 2600 homes right
4:36 pm
now. already burning more than 56,000 acres. in ohio, two people are dead and a third is in the hospital after a shooting this morning. each person found in a different location but cops say they believe all three knew each other and that the public was never in danger. the reason for that shooting has not yet been released. and vice president harris meeting with guatemala's head and discussing immigration, specifically migration of undocumented people to the united states. she delivered a blunt message to those considering the dangerous journey north. don't come tonight, the lambeau lounge. cnbc's robert frank with an exclusive look at a lamborghini experience like nothing ever that's on the news right after jim cramer, 7:00 eastern, cnbc sara, back to you. >> that is very robert frank, looking forward to it. up next, commerce secretary gina raimondo joins us to discuss the job market and how washington is making a big push
4:37 pm
to get business leaders from around the world to invest here in the u.s. plus a big tech battle brewing. mark zuckerberg taking aim at apple's app store. that one has been brewing for a long time. we'll be right back. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management.
4:38 pm
♪ i wish that i knew what i know now ♪ find your own andy at schwab. ♪ when i was young... ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money - now or in the future. with an annuity in your plan to help cover essential expenses, you'll have the freedom to live the retirement you want. this is what an annuity can do. find the right financial professional to show you how. learn more at
4:39 pm
4:40 pm
the select usa investment summit kicking off today held virtually for the first time the summit connects more than 1200 global business investors with economic development organizations across the country to help facilitate foreign direct investment into the u.s nearly $100 million in new investment projects were announced at the 2019 event. joining us now in a first on cnbc interview is commerce secretary gina raimondo. gina, very good to see you thanks so much for joining us. i guess this particular sell is probably one of the easiest in the world given the clear business friendly nature of the u.s. economy and the u.s. government but i wonder whether in the short term your job is a little harder than in past years for some of your predecessors given trade tensions that are out there like that with china and given talk of things like higher corporate taxes. >> good evening, thank you for having me. i would not say that this year is our biggest ever
4:41 pm
select usa summit. we have over 3,400 companies and investors attending. we're doing it virtually this year obviously which makes it a bit easier for smaller businesses to participate. but anyway, we are breaking records in terms of participants you know, the fact of the matter is america is still the best place to do business on earth. we have a strong economy, very liquid markets, opportunity to access the best colleges and universities in the world, and so we're seeing a fantastic reception. many of these businesses, many ofwhom i've been able to speak with personally, are really enthusiastic about doing business here. of course we want to encourage that >> when we look at relations with china on trade, is it to be expected that they will at best remain the same over the course of the biden administration or
4:42 pm
is there prospect for them to improve? and what are you hearing from your partners in europe as to whether they back the ongoing tough stance that i guess was started by president trump >> they do you know, we are under president biden's leadership strengthening again our relationships with our allies, including europe i've had discussions with my counterparts there, and we are very much aligned. we want to continue to do business in china. we want to help american businesses export to china but we also need to protect americans, american workers, american national security, our core proprietary technology, and we will do that. the europeans are very much in alignment with us on that, i believe. >> i wanted to switch focus, if i could, and ask you about the semiconductor shortage, which i know you've been working to tackle and the administration and congress wants to put more money into building out this kind of supply chain in the u.s. but that's going to take years
4:43 pm
what is the short-term fix with companies now warning this could last into 2022 >> yes so you're correct, that will take years, although what we are about to do, the senate is poised to pass a $52 billion investment in this industry, which is enormous. and that was part of president biden's package. in the short run, we are talking constantly, daily with suppliers and consumers, encouraging more transparency in the supply chain, better accuracy in the supply chain we're trying to help make sure that the demand signal that consuming industries are giving to semiconductor suppliers is accurate, up to date and transparent and really just encouraging the private sector to work together and do everything it can in order to meet the short-term crunch in that regard you're seeing gm reopening some plants, you're
4:44 pm
seeing some easing but as you predict, for the next year or so, this will be a daily challenge and we're going to do everything we can to help the private sector get through it. >> gina, secretary, i'm sure you saw earlier today that the leaders of the uk and the u.s.' six biggest airlines including the four biggest u.s. airlines made a statement encouraging a travel corridor between the two countries. both have very good vaccination rates of course. is that something as commerce secretary that you would like to see, that you are pushing some of your colleagues in other departments to move towards, or is it not on the agenda at the moment. >> it is very important. it is very much on the agenda and very important as we look to revitalize our economy post covid, travel is an important part of it again, under president biden's leadership, we have vaccinated tens of millions of americans and, you know, it's time really
4:45 pm
to pursue collaborations as you described to increase travel >> where do the infrastructure talks stand? any chance of something happening this week? >> i believe there is a chance for progress in a bipartisan deal the president has said from the beginning he's willing to compromise he's already come down a trillion dollars from his initial plans to try to move towards a bipartisan deal. republicans need to come up and we need to stay at the table in the meantime, we're going to work with the senate senators who are operating in good faith and also this week representative defazio is moving forward to start legislating in the house. so a long-winded way of saying, yes, we're at the table. the president is compromising. he's personally leaning in and we hope we can get something done because americans deserve
4:46 pm
it this week is select usa. i'm hosting thousands of businesses i'm selling america and doing business in america. we're the best place on earth to do business in order to maintain that competitiveness, we need to invest in infrastructure, invest in job training, invest in supply chains, invest in roads, bridges, airports and broadband, which is exactly what president biden's package calls for. >> just how to pay for it is the tricky part. secretary gina raimondo, we certainly appreciate you taking the time today on a busy week. >> thank you. >> commerce secretary of the u.s. up next, the quality act and bridging the gap we'll take a look at how discrimination is impacting lgbtq-owned business wn eshe "closing bell" comes right back.
4:47 pm
♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.
4:48 pm
there's interest you accrue, and interests you pursue. plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal. and with the right guidance, you can get the financial clarity you need, and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555, or visit
4:49 pm
cnbc and acorn partnered with the national lgbt chamber of commerce to take the pulse financially of lgbt entrepreneurs. this is part of an effort to learn how they manage their personal and business finances, as well as the obstacles they face kate rogers is here with more. kate >> hey, sara we polled more than 2,300 adults from certified lgbt business enterprises on a variety of different topics we asked owners about the equality act, a bill that would protect lgbt from discrimination in housing, education, health care, public accommodations and more
4:50 pm
president biden has called on congress to pass that act. more than one-third of owners said that they did not believe the act would ensure better credit absn access for their businesses we also asked them about discrimination nearly 60% of owners said they did not believe their sexual orientation or gender identity would cost new client. up next we also asked about goods and services nearly 80% said they did not believe they were ever denied goods or services due to sexual orientation or gender identity three quarters of lgbtq business owners are expecting a full recovery in 2022 which is good news back over to you. >> thanks for that more about this announcement go to in you. and -- excuse me, on a programming note, kate rogers will moderate a linked in life discussion with suze orman from 1:00 to 2:00
4:51 pm
go to orman event. we should note that nbc universal and comcast are investors in acorn still ahead, your earning scorecard. shares of stick fix, the key tr driving that when "closing bell" returns strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing this information. read it carefully. incomparable design makes it beautiful. state of the art technology makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer. this is the sound of change. the sound of a thousand sighs of relief. and the sound of a company watching out for you. this is the sound of low cash mode from pnc bank,
4:52 pm
giving you multiple options and at least 24 hours to help you avoid an overdraft fee. because we believe how you handle overdrafts should be in your control, not just your bank's. low cash mode on virtual wallet from pnc bank. one way we're making a difference.
4:53 pm
4:54 pm
welcome back a quick check on the biggest movers stick fix seeing up 20% year-over-year and giving strong q4 guidance. coupa software beating on the top and bottom line, down 7% and marvel is higher after beating on eps retch citing robust demand and up 3.4%. >> up next, taking aim at apple facebook making a announcement is sdecontent creators and threw thha apple's way we'll explain when "closing bell" comes right back
4:55 pm
that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good.
4:56 pm
see it. want it. ten-x it. yum! some say this is my greatest challenge. governments in record debt; inflation rising, currencies falling. but i've seen centuries of this. with one companion that hedges the risks you choose
4:57 pm
and those that choose you. the physical seam of a digital world, traded with a touch. my strongest and closest asset. the gold standard, so to speak ;) people call my future uncertain. but there's one thing i am sure of... welcome back mark zuckerberg taking a shot at apple's fees just as apple kicks off the worldwide developer conference julia boorstin is here with the latest. >> well if mark zuckerberg has been fighting apple privacy changes that make it harder to target ads but zuckerberg
4:58 pm
focuses on apple fees writing to help more creators make a living on our platforms we're going to keep paid online events, van subscriptions and our badges and up coming independent news products free for creators until 2023 when they do introduce it will be less than 30% that others take and facebook will launch a new interface where createors could see how different companies fees and taxes impact their own earnings we do expect to hear and learn more about this event that facebook and instagram are hosting for creators, that is happening tomorrow but guys it is worth noting that facebook is positioning itself as an ally for small businesses and apple aligns itself with privacy. back over to you >> of course, julia, they don't allow the app developers to reach millions of people in the same way a hardware company like apple did. >> but what facebook would say
4:59 pm
is we allow small businesses to reach billions of people through our platform so they each have their eco-system and they each want to say that we are helping our constituency and both drawing anti-trust concern and facebook pointing out what a big threat apple is under the anti-trust agreement itself. >> facebook having a better day than apple up about 1.9%. mike, spinning forward to tomorrow and the rest of the week, fairly calm start to the week today any way. >> we have one thing to keep in mind i think the last seven tuesdays have been down in the s&p 500. none of them were particularly disastrous it is one of the things that just as soon as you observe the patterns, maybe they quick working but it is something people are talking about. >> but what does mond do usually. >> i won't say there is a usually, but it is a bit higher.
5:00 pm
>> turnaround tuesday was a thing. >> it was. >> we saw some real strength today. >> it could be something to watch. i think it is more likely to become less of a drag or you have spotty strength in there as opposed to resuming its prior role from last summer. >> merger monday turnaround tuesday all of our favorite expressions. that does it for "closing bell." "fast money" begins right now. >> we are live at the nasdaq market site and that is new york city's times square and this is "fast money. melissa getting a night off. i'm brian ullivan, your trader lineup, guy adami, tim seymour karen finerman blockbuster news out of bio gen, approving the alzheimer's drug we'll break down the landmark decision and talk abou


info Stream Only

Uploaded by TV Archive on