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tv   Closing Bell  CNBC  August 20, 2021 3:00pm-5:00pm EDT

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son -- >> he's got some good ones, too, like an original tom brady a lot of football cards. >> see, that's where the money is you have a great weekend as well. >> thank you. you know what happens next "closing bell" starts right now. we'll see you next week. it does indeed tyler, kelly, thank you very much i'm wilfred frost, stocks are volatile, ending on a high note. >> happy friday. let's look at what's driving the action technology among the top sectors today. nvidia, microsoft, adobe, all standout winners right now the energy sector down around 7% just this week, with big weekly drops
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and crypto is popping today. bitcoin and ethereum moving higher, with bitcoin moves higher we have a big show coming up shares of footlocker are jumping today after earnings doubled wall street's estimates. we'll talk to the ceo about what drove the strong quarter for them. plus wwe hosting its slam this weekend in vegas. we'll discuss their efforts to keep attendees safe. and let's focus on the stories we're watching bob, start us off. >> low volume fairly typical, sudden spikes in volume
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activities in the middle of the week what we've got here is utilities tending to outperform. here's what's going on in a way, i said this is a typical august volume has been light. volatility, you get the random spikes only into october, you get random spikes and volatility that cause some consternation. that's happening again today cyclicals tending to underperform defensive stocks tending to outperform. some of the ways, this is extraordinarily unusual august that's what makes this such a strange stew we have the delta variant, which is forcing the market to reprice the growth outlook, particularly regarding cyclical stocks, industrials, materials, and some consumer discretionary like the traveled stocks. we also have an extraordinary situation in china, where the regulatory action is repricing the valuation of chinese stocks, and some are questioning whether it should be considered a completely separate asset, and then we have the federal
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reserve. the market is sensitive to the tapering and hiking timeline so far the phet has been good at communicating that, but any change in that delicate situation, could result in a spike in interest rates. that would really have problems for growth stocks like, of course, technology the risk to the market is lower -- that's very, very prizy, and right now risk is to the down side. believe it or now, with all this activity, it's a fairly typical august you tend to get defensive sectors. they tend to outperform in august, that's true. technology tends to be right in the middle and more cyclical guys, back to you. >> bob, what are you getting from the corporate sector? it seems like it's pretty strong, the outlooks are strong, are the stocks reacting
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accordingly? >> it's -- a terrific first quarter and second quarter numbers. the problem is the delta variants is creating caution on the third quarter, and look today at tjx, terrific numbers overall. they surprised everybody by giving guidance way below estimates, citing the uncertainty. >> ross stores, i think -- >> excuse me, yes, thank you >> bob, thank you soism. nasdaq still pacing is the declines josh lipton has the details. >> we'll start with microsoft moving higher today, hit a new all-time high, up nearly 40% so far this year, the software giant saying it would raise over the 365 business subscription prices other record highs, adobe and cisco, they're both up about 30% so far as for the chips, you have to
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called out invideo reporting those results this week, now up 60% this week. our own jim cramer saying it's difficult to see how nvidia can be stopped cisco is on its worst week since may, down about 25% from the all-time high. back to you all. >> josh, how carefully do you think these tech analysts are watching jackson hole next week, hear from jay powell, the meeting in and what tapering back will look like? >> i think they're watching closely. a lot of strong results, but obviously investors have to make big guesses about what growth looks like a lot of the companies certainly benefited as we were all sheltering in play you saw that ben fit a lot of 9
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hardware makers. it was the expectation maybe, a return to normal, but the new questions about the delta variant, the long-term efficacy, how that weighs on growth in turn. >> josh lipton, thank you. 1% gain. after the break, a new study from a.p. found nearly six in ten americans are in favors of vaccinations being required for fly or attend events you're watching "closing bell. we are cutting into the losses for the week, but still down acssheoa ro t brd
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includes children. this idea that children don't get infected, or children don't transmit, that's not the case with delta >> former tag commissioner dr. scott gottlieb joins us now. his new book "uncontrolled spread" will be out in september. welcome back good to see you. >> thanks. >> so should parents not be going back to work this fall if they have unvaccinated kids at home >> well, look, i think people need to be prudent even if they're vaccinated, about bringing the infection back into the home we've seen instanceses where people who have been vaccinated have become infected and transmitted the infection. we still believe the rate of infection is lower than the unvaccinated population, certainly. we also believe you're less likely to transmit the infection if you're vaccinated but evidence out of the israel said they were unlikely to transmit the infection in the
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community, but when they did was within the household obviously you have a lot of close contacts in your home. the upshot is people who are vaccinated and become infected probably aren't as containage, and not for a long period of time, but that window of time is likely to coincide when you're circulating in your home, when you're interacting with your children, so i think you need to be prudent if you're around young kids or those who might be vulnerable don't assume if you have a mild cold that it could be covid. >> we've been looking at the u.s., israel, they both have been ahead of us on the delta cases. why do you think the curves are looking so different, and as it relates to the u.s., which past do you point to for what could happen next year >> well, we don't really know. the current you're talking about is a decoupling between deaths
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and hospitalization. in the uk you saw a strong decoupling between cases and deaths and hospitalizations, so there were a lot of infections, but not a lot of hospitalizations in israel there's also a dec dec decoupling, but not in the same pronounced way you saw in the uk i've seen some updated data from israel i believe cases are comen down now, i thinkthe third dose, th booster they've been giving to the older population is having an impact, but one theory wee you see a greater decoupling -- the u.s. made a decision intosh not based on any conversation, but made a decision to space a -- in israel they administered the vaccine on the same schedule as the u.s., three weeks apart for the pfizer, four weeks not
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moderna vaccine. there are some people who believe that if you space the vaccines -- the initial two doses apart more, you're more likely to get a more durable response, so to the extent we've seen declining effectiveness, if you space apart the initial two doses, you might have extended the durability we dosed the vaccines the way we did for a good reason. we were in the middle of a raging epidemic. we wanted as much immunity as possible, but one consomme be that we had the declining immunity that we're experiencing now. >> to what extent do you think, dr. gottlieb, that the u.s. should be considering mandating vaccines on a political level? do you think it's just something that will have to be done by private companies? by schools by individuals to sort of suggest they only want to be around vaccinated people, or is this level quite impressive >> i think the biden
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administration has actually leaned forward on this, implementing mandates on federal levels where they can, the military, mandating vaccines, using tools to effectively mandate vaccines in a nursing home setting so i think where they have the opportunities to try to incentivize or even compel vaccination, they're taking advantage of those opportunities. mandating vaccines at a federal level would be tricky. historically issues of medical practice have been left to the states the federal government has not regulated the practice of medicine the federal government makes recommendations to the states, which are free to interpret those guidance that's how medical practice has historically been made more likely by private business and local governments, i don't think the state government should be tying the hands of
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local officials and businesses that want to mandate vaccination. you have seen in some states governors stepping in to take that discretion. i don't think they should be doing that. >> while we're talking about public policy, what should we see from new york and l.a. you have to show proof of vaccination at restaurants, fitness centers, but not at hair salons, pharmacies, grocery stores, crowded office buildings. do they guidelines make sense to you? are they based on science? or somewhat arbitrary? >> i think in some respects they're based on science, some respects they're based on the practicality of what you can and can't do when you're trying to implement these provisions cities like new york and l.a. for that matter, as well, face different circumstances because of the dense ilof the city, because of the travel in and out of the city. so i think you're going to see cities face different kinds of risks take different measures.
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i'm not surprised to see new york leaning forward and being on the restrictive end in terms of what they're willing to and mandate relative to other local governments. this is why they see decision should be left to local officials. they face different risks, and also different tolerances among their population people in the tristate region are more willing to yates these kinds of measures, versus people in other parts of the country who are more likely or more willing to take risk around covid. >> that's fair dr. gottlieb, have you seen any documented evidence of long hauler systems in the breakthrough cases from people who have been vaccinated >> we haven't seen any semitic reporting on that. people whether they develop the same long-term sequelae in developing the infection
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it might be thaets vaccinations are partly protective against those kinds of consequences. i haven't seen any data or reporting, but we're not tracking breakthrough infections that will, either. so that data is likely, if it is there, to emerge later we have 42 minutes left of the session, higher today. still low, though, on the week, by up over a percent on the nasdaq one spac strikes out a seven-decade trading card deal it's fallen apart. we'll bring you the play by play next. an ♪ ♪ it's a wishlist on wheels. tickers today. tickers today. >>
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a deal to bring one of the storied brands public has fallen apart. leslie picker has a look. >> tops intending to go public by spac, but it was shuttered today. trading well below the asset value of ten, right now $9.84, on necessary that the company is abandoning its tops takeover they had yesterday's decision from the major league baseball players association not to renew agreements with tops when they came up for renewal let to the termination of their deal. tops will remain a private company as a result. the baseball partnership had been in place since the 1950s. cnbc reporting that the trading card deal is supposed to go to
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for a fanaticses in. with tops out of the picture, they'll search for another target or ultimately return that shareholder capital, guys. >> i guess these alleges have ring pops. don't they also make bazooka and ring pops? >> that's right. >> they do they have a candy division be sure to catch leslie, hosting a special edition of "fast money" tonight that will impact your money, your health, entertainment and more, 6:00 p.m. eastern time right here. coming up on this show, auto stocks are under pressure as chip shortage concerns linger. we'll discuss the outlook with mark fields, and we'll get thinks take on the ambitions from last night as well. and a check on bonds, yields
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higher today ten-year is yielding around 126. we'll be right back.
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ross stores are falling after weaker than expected forecast in the earnings report. the retailer cited supply chain costs and covid-related expenses
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credit suisse updading petko it says it's well i supposed to benefit. woof time for a cnbc news update. rahel? >> hi, sara. president biden promising to get all americans and afghan allies who want to leave out of afghanistan. about 13,000 people have been flown out of the country in the last six days and 6,000 u.s. troops are on the ground president biden warning the massive ever will not be without cost. >> this mission is dangerous it involves risks to our armed forces and is being conducted under difficult circumstances. i cannot promise what the final outcome will be. a federal appeals court has upheld the cdc's new ban on
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evi evictions. a group of realtors are likely to appeal the decision the new james bond movie will premiere on september 28th and make its dubai in the u.s. on october 8th the release has beendelayed multiple times one person who is likely to be very excited about that, sara, is wilf. open it up to you. >> i agree we've been about 30 minutes left to go. here's where we stand in the market the s&p 500 up 0.8%, dow is up more than 200 points, still down for the week nasdaq is a big winner along with small caps. when we come back, former ford ceo mark fields weighs in on the glob chip shortage impact. plus shares of footlocker is soaring after reporting strong earnings
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tesla holding its ai last night. shares of tesla down more than 5% this week and other auto names under pressure as well joining us is former ford ceo mark fields. mark, good to see you. thanks so much for joining us. what do you think the aim, having see ai day, what was the actual aim of it for elon musk
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and do you think it achieved the goal >> i think it was twofold. at stated, they wanted to lay out the progress they were making in their software and their a.i. and develop of the bespock chip for the a.i. efforts, but also to highlight their talent and use it as a ra recruiting tool. the second thing, a bit of, again, a pr -- more than just a little bit -- a pr exercise to make the point from elon musk's and tesla's standpoint, that they're very much in the lead. some may say it's a bit of a take the eye off of competition, but i thought it was a well-done
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event. >> we're going to talk about chip shortages in a moment what about labor shortages is it hard for tesla to attract the best talent out there, or at least harder than it was the last five, ten years >> i think it's hard for everyone i think we'll put this into perspective. everybody is trying to get the best and brightest in that spectrum, i think tesla, with elon's representation as well as tesla's representation, maybe has an edge over some of the traditional automakers, so i think they're in a pretty good situation, but they're also competing with the other technology companies, like the apple, googles and facebooks of the world. >> is it a distraction for tesla, given the fact there's
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heavy scrutiny, and now a federal probe into it, and also some criticism around the fsd, the full self-driving package that tesla offers for an extra $10,000, which doesn't really do that >> you're seeing tesla become, obviously, a real car company, and with that comes real oversight. when you're implementing new technologies, as you develop those, there are going to be issues you know, in many cases s. i think they do push the envelope. the traditional auto industry, you don't put customers' lives at risk with new technology, so i thigh they're getting oversight. i think this will be a groundbreaking inquiry for the whole industry, but at the same time you've got to keep moving your business forward, so events like yesterday for tesla, you just have to keep moving the
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ball forward with your business, you know, and deal with some of the things of being a mature car company. >> will it prove to be a blip, or will it prolong >> if you tack to the automakers, that blip is very painful. obviously, you know, it first started out where they thought it would be a couple months, but the auto industry is firmly in the grip of the semiconnector shortage i think we'll see it at least through midyear next year. it's tight inventories you've seen automakers like toyota that previously stockpiled with close relationship do pretty well, but this week they announced 40% of their global production is coming out in september. so this is real. you know, in two or three, four years, yes, more capacity will come online. for the auto industry and just
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semiconductor demand in general, but it's going to be a bumpy ride in the auto industry, the bottom line is volatility and production is the new norm for now. >> two to three years? that's how long it's going to take to figure this out, market? what will that do in that time period to production and profitability? >> you're going to see relative improvements, but it's going to be very tight. everything is becoming digitized, and everything is incorporating more and more semiconductor chips. remember, it takes about 18 months and about $5 billion to construct and start having output in a semiconductor fabricator so you can do the math you know it's going to take some time by the same token, sara, in the auto industry, you not only have tight industries today, you have very robust demand, which i believe will continue.
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so it's going to be hard to built those inventories back up to where the automakers wants them for the next 18 months or so why haven't new car prices tracked higher, then, in light of all of this >> well, actually they have, and they have donnello done in not so much in msrp, lost prlist price. but that's why you have seen in the last couple months, each month through the summer, you see report average selling prices, the average selling price of a vehicle now is over, you know -- it's at record levels, so you're seeing reduced incentives, so the net price to the consumer is going up at the same time, the used car prices are going up as well, because there's less people trading in their cars for new ones, because they can't buy new
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ones >> mark fields, thanks so much for joining us good to see you, as always. >> thanks, wilf. straight ahead, energy the worst-performing sectors of the week, down more than 7%. we'll have a look at what's pushing it low pushing it low next is th this is the card built for... ...real life.e market . (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right? (vo) the new wells fargo active cash visa credit card. unlimited 2% cash back on purchases. that's real life ready. ♪ someone once told me, that i should get used to people staring.
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product, today we have chief invest officer some dip buying today. for instance, the small caps, some of the cyclicals with ever sector in the green. >> it feels like whenever we have a bit of a period of softness or a dip, it feels lick some buyers come in and take advantage. and it continue to do so over the next couple weeks.
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i think, you know, the bid is no for equities i think that you're going to continue to see any diplomat in the market met with buys >> do you agree there's 1% or 12% enough of a dip to be buying >> yeah, i think what your portfolio position is, you can get names you've been missing, but it's just a matter of sing the securityit did give you a quick opportunity to jump in,
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and i anticipate this chopiness will continue photorest of the year and you'll have more opportunities to do this again >> a solid third quarter beat, but the stock is falling on comments on supply-chain issues, that deere is facing it will continue from higher freight, to the labor shortage in the agriculture market. that's one of the reasons deere continues to invest in automation the stock is up about 30% this year, outperforming other industrials. it may seen expensive for an industry company, but if you view it as a tech company.
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>> seema, thanks so much though that so, again, we were happy with the strong earns i think it's interesting, though, and reconflictive of all industrials when we're talking about the supply-change. i think most people thought we would see it diminish. but deere is saying at the continue into 2022 and if we don't see the infrastructure packages coming through for certainty, and i think there's a bit of a question maybe that's an opportunity to go out and buy when the names
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pull back. >> i like what seema said there. you do have investors like cathie wood who like these companies that see them as technology companies some people say caterpillar, rockwell automation, because they are undergoing such technological transformations. do you see them that way if you think about the enhancement, they talked about the situation with diminished labor availability, farmers are facing a lot of this we're seeing significant consolidation in the farming space in particular, but globally, if you think about the important of mitigating some of these supply-chain issues, we're not just making up for demand from 2020, but remember in 2018 and 2019, it wasn't like the
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u.s. manufacturing economy was revving it all cylinders, so we have three years of pent-up demand if you think about valuations for these companies, there's going to be a lot of levers, and this productivity enhancements will continue. pippa stevens has more on the crude oil. >> oil close out abrutal week.
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that narrative is ink chaing as new lock joined are happening. there are concerns about a desalesman slowdown. wti and brent both dipping, bringing wti's week-to-date loss looking forward, 61.58 is the keep level to watch for wti. that would be down 26% from the july 6th highs, so we'll see what happening nest week >> pippa stevens, thank you very much victoria, energy no longer the top-performing sector. it's now real estate and then financials it's been a brutal few weeks, really, as, i guess, investors reassess the outlook.
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i'm sitting here in houston, so it's always tough to see that. we need to watch now, are they going below the 200-day moving averages that will tell us if wti has even further to fall we don't have a lot of exposure to energy and oil and gas names, because there are concern about demand, increased lockdowns going on because of the delta variant. we would avoid them for right now. is. >> if you think about it in terms of having relative value,
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even with the moves we have seen in energy stocks this year there is some opportunity there. energy makes of a very small percentage of the indices at this point you have to be very, very bullish on the consumer reopening in particular to get excited. i think a lot of portfolio managers just find this space to be not worth the time for their portfolio. do you think the u.s. consumer is slowing down >> i think the consumer is still
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going strong so far the read on back-to-school, the strength is continues through august child tax credits have been the benefit. if anything we're seeing more variety. going-out clothing is coming back also, and hopefully the delta variant didn't put a hitch in that. we want to see they events continue then you'll see consumer spending continue to accelerate through the holiday season >> we do seem to be in a tide rising all boats which ones have become lasting growth stories beyond in spurt in stimulus? >> that's exactly what you just said who has the lasting growth metrics, who has invested in the technology who has an omnichannel platform that allows them to have a view going forward? i'm looking at companies like
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levi's, where there's a expansion of their product categories, getting back to levels they haven't seen i'm looking at companies i think bath & bodyworks has a significant path with new cat gyres also i'm looking at companies like children's place, where if we think about it, children have not gone back to school in nearly two years the competition has also lessened what does this do? the combination, their partnership with amazon only enhances their sales and margin profile. that's the businesses i'm looking at now they're coming out the other side. >> dana, are supply-chain issues affecting everyone in the u.s. it feels like that's all we talk about, and any guidance that's given out the second half of the year is equalitily caveated with the cost -- it's not just the cost that's the issue. it's getting the goods, the
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delivery of the merchandise, and the container costs have just risen exponentially. every company and the tread headwinds, in terms of our channel checks we have done and networking with shipping companies, it is the headwinds of getting goods here. that's the obstacle for exceeding guidance for the back half of the year. >> dana telsey, thank you for joining us in "the market zion." >> thank you very much a number of names recording next week. any of those names you like? >> we stay away from apparel if you think about brand importance and the shifting consumer tastes, we have tried to stay really in the big box
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retail space, home depot, costco, those are areas we think will continue very well. i'm not as optimistic that some behavior due to the delta variant will not on appear in the third quarter. i would be cautious here and think about, even if there's a slowdown, not necessarily caused by lockdowns in the united states, but just a behavioral response, i think we'll continue to see data that points to that. >> hedge funds, goldman sachs, tracking popular stocks, finding that rising stars or stocks that are currently gaining popularity with hedge funds typically outperform falling stars or stocks with declining ownership in the coming quarters take two, biogen, amgen among the rising stocks, while disney, twitter and lyft are among the
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falling stars. what do you make of that strategy do you follow it >> really what we're looking at the names we want to add in, we're digging down into the balance sheets of these companies. we're really looking to see who has the strength right now who has the balance sheet to hold them through the rest of the years. we own amazon, but we also like some of the retail names with the target we like nike, the companies that have taken advantage of increasing that online peretz. the secular growth names, those associated with i.t., with 5g, with broadband, and cloud, those are all areas we like, even though we're looking at some of the cyclical names, so not necessarily a rising star/falling star story, but digging into the balance sheets
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in the sectors where he like. >> shannon, another way of putting this analysis is, do you want a momentum trade or not and chase what the other players are chasing up it can work for a period, but could change direction all of a sudden i wonder if you think that could be something that does break the cycle of momentum and themes that have worked for the last year or so >> i certainly think that the emphasis that we're all placing on jackson hole and the september fed meeting is warranted. i feel we're in a situation where the fed is stuck in a very tight place between inflation, clear inflation coming straight from the consumers' mouths, as well as the need to potentially mitigate what could be a slower economic growth over the next couple months. i continue to think there are parts of the cyclical trade that will do better than others, but i think more than anything else, you want to be selective, you
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want to think about quality, about cash flow, balance sheets that are able to take advantage of potential opportunities next year, so i think there will be some changes in the wind, but i'm just not sure they will come ago quickly as some are expecting. >> we are rising, as we approach the close. nasdaq and s&p pretty much at their session highs, dow not quite, but up 0.6% the s&p is up 0.8%, nasdaq is up 1.2%, though all at least are lower for the week.
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the that is down a bit today. strong, though, this week, up a percentage oil is term performer today. as the bell goes, we're higher [ bell ringing ] let's stick with the nasdaq. a strong close welcome back, everyone, to "closing bell. take a look at how we finished up the day on wall street. near-session highs, up 224 on the dow jones industrial average. microsoft the biggest contributor along with home do poe, salesforce and goldman sachs. s&p 500 up 0.8%, building on some gains we saw earlier in the session. every sector closed higher
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today. staples the underperformer, but not for the week it was kind of a reversal the nasdaq the big winner on the day, thanks to strength in technology microsoft was the big winner, nvidia had a very big day. up another 5% today. apple strong, google, facebook, tesla after its a.i. night t. russell getting some love finally after a very down week, russell ending up. still for the week it is down, the most out of all the major averages, down 2.5% for the week 23509 locfootlocker, up 7.25%, coming up, the retailer's ceo will discuss the outlook for its
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key relationships. first up on the market, shannon, and victoria fernandez are still with us. and we'll start with you joining the conversation we ended the week on a high note, but otherwise it was a down week. where does this leave us, in terms of sentiment and how ear feeling going into the end of the summer >> we have been saying for a while this will be a choppy ma market the valuations are relatively high as to we are going to remain in this kind of chopiness for a while under there's a bit more clair on two things in particular one is the outlook, i think, in terms of the softening
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tendencies we have seen, and the on or about things, obviously. language and discussion around the fed. until the market has a bit more clarity on those two point in particular, a lot of sector roa station underneath the waterline, and i think in this moment we have to be careful about risk in portfolios and sticking with much more se selectivity. >> shannon, do you worry about the dollar rally we have seen of late >> well, the $ -- i'm sorry. that was shannon i beg your pardon. >> that's okay >> i think we're going to continue to see the dollar move within a range it doesn't necessarily concern me per se. i think that overall, if we're just thinking about positioning portfolios the next year or so,
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you want to think about higher costs. i think the supply-change issues will stay with us through the end of next year, so thinking about the ways companies have handled these issues in the past is really important. it's not that past is always precedent, but as long as companies are getting in front of some of these challenges, we have experienced great earnings growth that's going to moderate, so i think we have to look at 2022, as being a year for execution in what i expect to be a continued low-growth, low interest rate environment. >> if you look at the week, yes, it was a strong close, victoria, today, but no question it was a week where there were growth concerns look at dow transports, maw caps, these are the domestic plays on the economy, so what does that say about where investors are right now on u.s. growth prospects
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>> sara, i think we have reached those peak levels that people have been looking for, in regards to the growth of earnings and the gdp growth we're going to see i think we have reached that, so things are going to slow down, and people should anticipate that's going to happen, so it's not surprising that maybe earlier we saw the small caps come back a bit. make it's the thought process that the fed will not taper as soon as many people anticipated, with all the fed-spy, i think it's going to happen later toward the end of this year. i don't expect any information from jackson hole or even the september meeting. i think we'll get an announcement in november i think the growth component will be important as well. it would affect the dollar it would affect our yields here. anticipate slower growth, but still strong enough supported by a consumer with a strong balance
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sheet. i think we see equity markets continue to trend higher the rest of the year >> amplnik, is now the time to overseas >> we think so, but we have to be selective the risk premium has certainly widened. you mentioned the dollar there obviously have been some concerns about a bit of a softer touch for the make roe economic data coming out of asia in particular, but our view is that the biggest debate in markets going forward will be about the length and the breadth of 9 economic cycle we are literally coming off ten years of a lack of investments we talked about the strength of the consumer in the united states i think the property market has some of the biggest multiplier effects in the economy, and i think, you know, one of the hallmarks of this earnings season has been the strength of the revenue like that's basically absolved a lot of the
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cost-to-price pressures, the mixed pressures we have seen companies face in this quarter i think the margin resilience of companies has also been impressive, particularly in the industrial side. so, the consumer side definitely, most of the u.s. companies that have reported very strong, the industrial sector i think will be all about the length and breadth of 9 cycle which could by a multiyear cap ex ahead of us i fully concur, that the valuations are high, and selectivity should be the key. >> everyone, stick around with us we'll continue the discussion in a moment, but let's get a sum are you ready of-- summary of t major moves. bob? >> the reopening story very much on the defense throughout the week let me show you the winners.
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you can see defensive sectors. kroger, lowe's, health care has been on fire, regeneron has been strong, a small smattering of tech stocks. the loser are filled with what we call cyclical stocks. the delta variant is forcing a repricing of the growth outlook. it's very simple right across the board, energy stocks just horrible occidental down 15 you see freeport, material stocks, growth stories, industrials like boeing were weak and then a smattering of the consumer discretionary stocks, especially in the luxury retail space. so far in august, believe it or not, despite all these worries, it's looking fairly typical. august usually has difficulty with defensive sect -- health
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care does well utilities usually do well. technology is usually in the middle guys, that's exactly what we're seeing so far. back to you. >> bob, thanks so much for that. victoria, i'll come to you on microsoft, new highs almost every day this week, as bob mentioned. what did you make of that? want to take profits or continue to back its consistency? we like this name, these larger tech names but it makes sense to trim a bit, and pull that movies into some of the more cyclical or value names we've had an overweight to growth stocks, so taking a bit off the table, either keeping it in cash so you have some dry
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powder when there are market pullbacks. that's one option, or we have bought names like target, ford, even healthcare names. we bought anthem so i think trimming is a good option instead of just selling these names outright from your portfolio. >> anik, where are you on big-cap tech they have proven to be dividendsive they're sort of secular growth, and they act like bonds in many ways. >> you're exactly right. in many ways, it's the long duration equivalent of the bond market in the equity space what we saw is that, you know, not all tech is the same you know, you have to be with the higher end of the value chain with tech, because most of tech doesn't have a great deal of pricing power so you have to be selective where you have what we have seen and what we
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will continue to see is tremendous investment in digital technologies whether it's industrial iot, whether it is consumer iot, but generally speaking connectivity will be edge computing, a lot of this completely revolutionary changes will mean a lot of investment in data centers, in the high-end fast computing capabilities, and many of the stocks you mentioned are actually some of the biggest proponents of those benefits, of those trends we see, the megatrends. >> so, yes, we think that this is very much as long visibility, long-term secular opportunity, and you're absolutely right, you need to be quite focused on how much we paid for that opportunity, the t.a.m., total
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addressable market for these seem to be increasing, but to be very disciplined on pricing. microsoft up today we'll leave it there shannon, victoria and anik, thank you for joining us have a great weekend. we have a sinus alert. ylan mui has the details >> president biden has just named a slate of new nominees for key diplomatic posts, including former chicago mayor rahm emanuel as the ambassador to japan of course, he was also formerly chief of staff to president obama. nicholas burns named to ambassador to china, also currently serving as a harvard university professor this all coming during a key
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moment in foreign policy for the biden administration in china in particular, there are questions around whether the administration should continue the tariffs on chinese imports, but for nour wee seeing two new ambassador nominees, including nick lan burns for china, and rahm emanuel for japan guys >> does it always take this long >> i do not know that, wilf. i do know the administration has been looking to fill several posts, including they nominees for quite some time. we will see whether or not they get through the senate and how long it takes that process to get confirmed. >> ylan, thank you footlocker reporting much
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better results we have the ceo comeing up t. we'll also discuss the future of live entertainment in a moment covid era when we talk to the president of wwe. to the president of wwe. that's still to come here on needed to help you avoid an overdraft fee. low cash mode on virtual wallet from pnc bank. one way we're making a difference. "closing bell.
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joining us in a first on cnbc interview, it's chairman and ceo dick johnson welcome back this was a big beat. a lot of congratulations from the analysts on the conference call double the expectations. can you tell us whether the momentum is continues at the
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moment >> thanks for having me on still a strong men's business as well as women and kids back to school being a bit more orderly, if you will, a little more defined this year versus last year, we'll prove to go successful. >> is it because consumers are flush with cash? or do you put it on the products >> i think it's a combination of all of those things consumer
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clearly has some cash. but truly, it's driven by great product. that's what motivates our consumer they want the freshest goods they look to companies like nike, puma, all the great brandt we represent they want the hottest best product. they want to look great all the time. >> what about reebok do you think that may get some reinvigoration i think it will. we're excited about it they've got a deep portfolio of great basketball product, great classic product, that i think we'll get some life in the new
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environment. >> are you seeing any impact on the delta variant on traffic and spending patterns? >> our consumer, when our stores are open, they connect with us originally digitally and we want to create those great connections, but they end up shopping how they want to shop, whether that is truly clicking on the "buy" button on our app or website, you're coming into the stores during the-second we certainly saul that traffic coming in. we'll adjust to whatever the delta variant brings us. hopefully we can get the consumer satisfied through whatever ham they decide to shop with us. >> dick, i was wondering how you think about the investment in goat, and whether you're considering that slowly orb still, a hedge to have a stake
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someone that could have become a major rival? >> well, we think that goat is great for the broader system we're focused on the primary market, goat is focused on the secretary market you know, they raised a great round this last quarter. clearly that allows them to expand their great work that they're doing, and getting into luxury goods, accessories, more apparel. we think it strengthens the overall ecosystem and ultimately allows the consumer to have access, in sometimes a supply-constrained area. we think we've made a great investment and we think they have a lot of up side. >> what about the women's business, which you did call out a few times as a growth area kids, i get, back to school, but what about women
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how lasting is that as a growth driver for you and for some of these companies, like a nike or adidas >> i they are we'll all doing a better job, making sure we have the products she's after i think our team has done a great job, telling better stories around products we have in the stories, bring are more apparel too bear i think we're finally getting credit with that with her. she's a very discerning shopper, and we've built or connectivity with her to make sure she understands we have great product offerings, when she wants that casual look or even dress sneakers, right? we talked about that the last time we were on, you know, people have dress sneakers she's able to use sneakers and the great products we represent to create her look i think it is lasting, in that she likes comfort, as she is
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returns to the office, she returns to school. she has a lot of footwear choices. finally are we seeing the return in lines where people camp out has that all gone digital? >> well, we still have plenty of releases that we return through our stores we don't necessarily want lines. we want to get as many sneakers into consumers' hachbts as quickly as possible. we try to make it more orderly we don't want to see some of the craziness that existed in the past one of the things that covid accelerated was the reservation system that allowed us to put --
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about there's still a lot of heat in the segment. whether they're lining up digitally or physically in stores, they're still after the great products i guess it's not ideal to not have people camp overnight and not be able to get a pair of sneakers. >> that's exactly right. >> good to see you thank you. our next guest thinking investors should be buying the energy dip later, the shocking percentage of americans who did not pay a penny in federal income tax in 2020
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energy this last week down almost some 9% and now down seven straight days, longest losing streak since october 2019 raymond james' analyst joins us. pavel, what do you think of this >> all delta that is absolutely the issue right now.
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you know, we know that demand in north america, europe and china is pretty decent but off its highs, even in the most vaccinated economies are still being impacted by the current state of the pandemic, but the situation in the asia pacific region, exch china, so japan, vietnam and more asia, ex-china, was one sixth of the world's oil demand pre-covid when those countries go into lockdown, and most of them are, either nationally or regionally,
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there's no avoiding significant impact on oil demand so, does it warrant them pulling back as much as they have, or is it a buys opportunity for them >> well, we all hope that covid will not be, you know, with us forever, certainly not on this scale, at least. from that perspective our team expects oil to end the year at meaningfully higher levels than where it is today, in fact higher even that is the 52-week highs that we saw about 30 days ago. supply side of the equation is bullish. opec is being very disciplined, but from a day-to-day
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standpoint, delta headlines will be the driving force of oil in the short run. there's no escape that. >> pavel, there's also the dollar rising the last few days, starting to catch people's attention. doesn't that represent a pretty big head witnesswind >> the dollar correlates inseriously, but does not cause oil prices to either go up or down ultimately it's a commodity market, it traits on its own supply and demand. what opec is doing, that looks good we're watching the capital discipline of so many of the it's -- u.s. and european companies, but the demand side is completely separate from the currency is a mixed bag right
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now. let's get to your stock picks, pavel the first one, bloom energy. >> yeah, so this one has nothing to do with oil it's actually all about natural gas. when we think about data centers, they burn diesel as a source of backup of electricity, so think about esg investing trend. all these companies, the big techs want to ruse their carbon footprints low-hanging fruit is to replace their old-school diesel generators with a clean, reliable fuel cell no oil, all natural gas. it can even be hydrogen by itself the carbon footprint is at least 50% better than burning diesel >> you also have a water name --
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am i saying that right, on your list of energy stock picks >> you got it. primo water, absolutely. how is this an energy play plastics are a major source of carbon emissions, right? pet petrochemically produced so how do we avoid that? primo offers a reusable water bottle you don't need to throw it in the trash or even to recycle it. it's reusable up to 40 times these are water bottles for homes and businesses it is one of the most straightforward ways that any of us can reduce our own carbon
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footprint instead of single-use plastics that go in the trash. this is the only publicly traded company that does this. >> pavel, we'll have to leave it there. thanks so much for joining us. still ahead, all eyes will be on the fed 'latest taper timeline next weekty jackson hole symposium what investors need to know ahead of that meeting. and here's a check on the ch sector. we'll be back in a couple minutes.
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mass destruction in tokyo, the paralympic symbol is taking a place of pride. the 55-for a structure will remain in the water until the end of the games on september 5th. new englanders are getting ready for their first direct hit by a hurricane people are rushing to get their boats out of the water and taking many other precautions. and tonight i will fill in for shep on "the news" at 7:00 eastern. on a personal note, i've been in new england covering a nor'easter, those are pretty bad. i can't imagine a tropical storm. rising delta cases not stopping wrestling fans from flock to go las vegas this weekend, up next the wwe
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president. plus manny pacquiao is likely to call it a career after this weekend's match he tells us about his pls, encling bell" comes right back at cdw, we get whether you're at home, in the office or on the go, staying connected and secure is what keeps you productive. and no matter where you're working, our experts can help you implement a secure by design hp chrome enterprise solution. you'll benefit from built-in virus protection and advanced security management to help secure your device and your data while keeping you in close contact with all of your coworkers. ♪♪
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commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it. welcome back, we have some breaking news on the fed steve liesman joins us with that what can you tell us >> our understanding is the kansas city fed is cancelling
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the in-person portion of the jackson hole conference. they're going to hold the conference virtually on friday this is a big disappointment for a lot of people who were planning to go, and i think interesting, symbolic economically of concerns about the resurgence of covid-19. >> people will wonder, steve, if they're maybe not going to think so strongly about tapering if they're worried about in-person events being canceled? >> i think that's right, sara. i think one of the people who is the most ardent about potentially announcing tapering -- this is rob kaplan of the dallas fed -- if it's having a bad economic impact, he would consider not tapering until october. >> it's dovish. >> i will tell you, i led my story this morning previewing jackson hole saying the biggest new about jackson hole is that
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it's going to happen at all. we also reported this morning that jay powell decided to do his speech virtually we didn't know it. we weren't told if that was because of covid or some other reason he hasn't gotten in the past at our tiles, but this was potentially a covid issue, with the chairman not going, and rite now they have an issue of a symbolen indication of the rest of the economy here. >> steve leaseman, thank you for joining us on the news line. the wwe kicking off its summer slam event tomorrow at the aliegian stadium in las vegas. it marks the company's full-capacity stadium show since the pandemic begin joining us is nick kahn, of the
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wwe. you are said to do this in person with 65,000 people? >> thanks for having me on we're ready to go for tomorrow night. the nevada governor put in the in-door mask mandate, put it back in place. it's a masked event at the new aliegeant stadium. >> there's not vaccinate proof required we think that the masks, the governor's office think thats masks will do it for now if do you what the raiders have aflounced for their football stadium, there's no -- our preference is what it is now, everybody mask that's what we're lacking forward to doing tomorrow night. >> are the wrestlers wearing masks? >> no, the performers on all these things, they done have to wear masks it's all of the crowd, all of
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the folks in the back, but once in the ring, there are no masks. >> any other safety precautions you're taking? i know you have been doing live event, maybe a more limited capacity for a few months. what have you learned about doing this in a covid environment? >> we came back july 16th, a bit later than some other groups we wanted to wail and see if it could be done safely obviously the delta thing is new for all of us. we continue to make the pivots that a lot of other folks are making, and we think, again, with a masked event, with that many people. of course, if people don't feel comfortable, they don't snead to come to the event. if they do, they'll be masked up we think that's the best precaution to make sure it goes off, as we all hope it will. >> is summer slam always in vegas? >> no, it's not always in vegas.
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in fact we traditionally had not done well ticket-wise in vegas part of it is our weekly shows our sunday pay-per-view also not the sunday night city, so we figured a saturday night in vegas could be big business, and in this one instance, we may have been correct. >> one of the biggest movers are the stock lately has been speculation and reporting that you are open to a sale can you clarify anything on this front? is this real >> look, the exact comment is we're open for business. that applying to anything. if a credible company calls us, which many have, we take the phone call, hear what they have to say to said we're open for business in terms of the sale for the company, if someone says we'd
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like to make a $20 billion offer for wwe, we're going to hear that conversation. it doesn't mean we're going to do it. what i can say is there's no active conversations going on, and we're not soliciting that. >> nick khan, good will you can this weekend. >> thanks for having me on appreciate it. sticking with live events. manny pacquiao is back in the ring in las vegas for the first fight at the t mobile arena since is the pandemic began. we caught up with pacquiao he recently signed a deal with energy drink company next level. he'll be the face of their new energy drink, the company hoping to increase their asian distribution, their ceo telling cnbc we can expect the logo on manny's shorts and he'll be drinking it at the fight. >> i'm 42 years old, so it's
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hard to recover, but because of hydrogen, i can recover overnight. >> in addition to energy drinks, pacquiao has also released his first nft collection the moving portrayed was created by an l.a. artist. the collection also includes trading cards. he says it's also provide to go his charitable efforts >> not only focusing on serving people, but also taking care of my family's sort of income, but the desire in my heart is to help people and to, of course, my passion is boxing >> finally, as covid ravages his home country of the philippines, pacquiao, who is currently a senator there, says he may have
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presidential aspirations we asked about his home country, which has a little above a 10% vaccination rate. >> the people want to be vaccinated, but we don't have enough vaccine to vaccinate the people i wonder where is the money we approved in the congress, the budget we approved that's a big question right now. >> pacquiao is the significant favorite for the fight the question is, the viewers, will they tune in and shell out $75 to see it? just on the last point, wilfred, on covid, obvious live we've been following the story the philippines is a one that people worry about it's can kovacs doughnadonation it's like 11% vaccination. dr. fauci said they're looking to ways to get to other
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countries. >> either way, a senator in his 40s decides to get back into the boxing ring. respect. >> right he is all over the place endorsement deals, nfts, 9 man hack very enterprising. some startling tax statistics it's not just the ultra-rich who don't pay taxes. a shocksing numbers of people paying zero income tax in 2020 we have the details when we come we have the details when we come back hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help wi okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown,
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comcast nbcuniversal is investing in entrepreneurs to bring what's next for sports technology to athletes, teams, and fans. that's why we created the sportstech accelerator, to invest in and develop the next generation of technology that will change the way we experience sports.
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we've already invested in entrepreneurs like ane swim, who develops products that provide hair protection so that everyone can enjoy the freedom of swimming. like the athletes competing in tokyo, these entrepreneurs have a fierce work ethic and drive to achieve - to change the game and inspire the team of tomorrow. welcome back we've got a news alert on general motors philipp beau on the cnbc news line >> general motors is expands the recall of chevy bolts due to the possibility of a battery fire. remember they did a recall of 61,000 chevy bolts that was about three weeks ago if i'm not mistaken. they have expanded that recall to fix two potential defects in the battery packs. those potential defects will impact 73,000 additional vehicles so, now you're talking about
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chevy bolt and chevy bolt euv from 2019 to 2022. the bulk of those are evs as well as euvs the additional cost of this recall, $1 billion remember they already took a charge of $800 million for the initial recall a couple weeks ago. now they're expanding it now including 73,000 additional bolt evs and euvs guys, back to you. >> phil, some surprised the stock is only down less than 1% on this news, particularly because of the brand image it paints >> you might look at it that way, but in the world of recalls, 73,000 vehicles is relatively small having said that, $1 billion on top of the $800 million, it shows you the challenges not only general motors but all auto
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makers are running into as they're doing this conversion. make no mistake this is a big recall even though the number of vehicles impacted is just 73,000 >> phil le beau thanks for bringing us that news. switching gears, it's not just the super rich who don't pay taxes. it turns out there's a startling amount of people who paid zero income tax in 2020 robert frank has the story for us robert >> the pandemic led to a large increase in the number of americans who don't pay any federal income taxes or in fact got money back from the government 61% of american households paid no federal income taxes last year that's up from 44% in 2019 all that according to the tax policy center. the center says this number is going to remain high but is fleeting due to mainly high unemployment, stimulus checks and increased tax credits that
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were tied to the pandemic. they say it will hover around 57% this year, and the share of americans who pay no federal income taxes though has doubled over the past 30 years in 1990, only about 21% of americans paid no federal income taxes. meanwhile at the same time, the share of taxes paid by the top has been growing the top 10% of taxpayers paid 71% of federal income taxes in 2018 that's the latest year reported by the irs many of the households who didn't pay federal income taxes do pay other income taxes, payroll taxes, state and local taxes as well as excise taxes. but they did not pay federal income taxes >> but ultimately, robert, this is set to be temporary, that high percentage of people with no income taxes because it's pandemic related >> the 60% is temporary. it's going to be 57% this year but what's not temporary, what has been a lasting trend is it
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hovers around 44%, 43%, and that is double what it was 30 years ago. so, look, when nearly half the population does not pay for the normal operations of the government, you know, that starts to be a democratic issue when, again, it's about half the people that are invested in the government so, that's the broader issue, and that is the broader trend that people are going to focus on as these negotiations get underway in washington over the next reconciliation bill and who has to pay that bill >> robert frank, thanks very much up next on the show, the fed makes jackson hall virtual and more retail earnings are coming your way, the key things we're watching for in the week ahead plus tune in tonight to a special edition of "fast money" at 6:00 p.m. focused specifically on the next generation of innovation, disruption in technology it's called "the next" live tonight, 6:00 p.m. eastern right here on cnbc "closing bell" will be right "closing bell" will be right back
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looking ahead to next week, more big earnings on tap on monday we'll hear from palo alto and on tuesday nordstrom, best buy and tall brothers. wednesday, salesforce, box and snow flake and thursday we'll get earnings
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from peloton, gap and hp and of course that big news that steve just brought us this hour, the jackson hole symposium will be held virtually due to covid concerns, very interesting as we were discussing, particularly given it's not like it's a mass gathering and it is in a fairly remote and isolated place. so, it is quite a big step by them to decide to make it remote as you said, it could influence policy it could be a sign of how they're thinking in terms of the extent to which delta is wearing on their minds >> right, which is the big question right now the fed is on the brink of tapering or scaling back it's extraordinary stimulus that is put in place during emergency times. we know fed chair powell wants to see substantial progress in the economy before starting to say we're going to taper and we know that most of the fed members or a lot of of them want to see it start by the end of the year so, the question is when and will they delay it because of the delta variant and the
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concerns around the economy. i've got to say wilfred, it was a strong close and a strong week for stocks but there was a lot of caution out there the dollar was up a percent. those things don't happen when things are all great have a great weekend sorry. i didn't leave you much time there. >> gm is down 2.5% as well >> we'll follow that after the recall on the bolt fires have a good weekend everyone that does it for us on "closing bell." "fast money" begins now. live from the nasdaq overlooking times square, this is "fast money." tonight's trader lineup, tim, brian, and pete najarian, cofounder of we're counting down to another big week of earnings with names like salesforce and peloton and more getting ready to report how should you be looking at these stocks ahead of the key results. plus going global, what the surging dollar


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