tv Closing Bell CNBC August 3, 2021 3:00pm-5:00pm EDT
back to you. >> sharon, really interesting. thank you so much. >> it is so disparate in people doing these exact same jobs. not just average versus average. good to be with you, court. >> thank you for having me. >> we'll see you the rest of the week thank you for watching "power lunch. "closing bell" starts right about now. see you tomorrow welcome to the "closing bell." it is another choppy day on wall street, but stocks are higher heading into the close midday boost that we got in the dow's recovered from a triple digit loss now more than half a percent sitting near session highs. quite a turn around. i'm sara eisen at the new york stock exchange let's see what's driving the action in the final hour of trade. earnings front and center. sizable moves for bp, clorox, under armour, many more results coming for you after the bell. covid concerns are weighing on the travel sector. hotels, cruises, ride sharing names, all mostly lower. new york city announcing vaccine
requirements for some indoor venues and chinese video game stocks are under pressure now after new criticism of the industry an state run media. we'll have more on that in a moment 59 minutes left to go in the session. nearly every sector in the green except for communications. some media stocks under pressure a lot coming up on today's show the ceo of under armour will join us exclusively to talk earnings and the back to school season as that stock jumps on strong results and guidance. and we have more results coming after the bell as well from the likes of lyft, activision, amgen, match and more. we'll bring you all the numbers and speak with the ceo -- cfo of match right after those earnings cross. let's focus on the big stories we're watching this hour bob pisani tracking today's market action. steve liesman with how americans are feeling about the economy now amid covid fears and josh lipton with more on the
fallout of the video gaming industry >> we're on new high watch, sara, across the board markets doing better than it was in the middle of the day yesterday. earnings are the primary reason. a lot of comments on covid variants impact on markets and higher costs, but for most part, they're positive comments. speaking of positive, you see bp, the old british petroleum, what else do you want here they cited higher demand, higher oil prices, they're commencing a share buyback and raising the dividend 5% dividend. there is only ten companies in the s&p 500 that pay more than 5% dividend yield. bp is not in that, but exxon is almost 6%. just about nobody else, look at that, up 6% today. elsewhere, a lot of discussion on the covid variant, the impact on business. marriott had terrific numbers, revenue were double that of a year ago but the hotels in general are down on concerns about that variant and the impact on business, the ceo of marriott said they haven't seen it at all yet. same situation over at simon
property group this is the biggest mall owner in the united states, they too said they see no impact from the covid variant so far they have terrific numbers here. big earnings beat on them overall, shopping centers return to prepandemic levels back in june you see that stock up nicely as well the other question was raising costs. and what happens, are you able to raise prices to meet the costs? some can and some can't. clorox could not this has been a problem with some of the consumer staple groups they came out and said they weren't able to raise prices to offset all the commodity costs that were involved their margins will be significantly lower for the rest of the year. they're hopeful that some of those inflationary costs that they saw earlier in the year particularly on commodities are going to moderate, but you see the effect there, clorox down 8% dupont had just about the opposite situation they have a very big automotive business, coatings business, they were able to successfully raise prices to offset the higher costs there you see them down fractionally overall, a great report. finally, keep an eye on the s&p
500, we're on new high watch, 4422 the old closing high. that was on july 29th. five points away that's not much in this kind of market back to you. >> thanks so much. one way to try to close that valuation multiple gap between the european names and the u.s. names is the boost of dividend that helped bp today let's pivot to the economy and investors closely watch the latest stats surrounding the deal delta variant. yesterday on the show, a rosy outlook for america's recovery and said the tapering of asset purchases should begin this fall >> given my outlook, very optimistic for the economy, as i said, if the jobs reports comes in as i think they're going to in the next two reports, with tapering, we should go early and go fast in order to make sure we're in position to raise rates and in 2022, if we have to i'm not saying we would, but if we wanted to, we need to have
some policies based by the end of the year. that may be on the more optimistic side of the committee, but that tends to be the outlook that i have. >> bob, the results of our latest cnbc all america economics survey aren't as optimistic steve liesman has the highlights for us hey, steve >> good afternoon. america's news on the economy and the stock market taking a decisive turn for the worse than our cnbc all economic survey, amid growing concerns about the virus and inflation. you look 33% of the public think now is a good time to invest in stocks, that's the lowest since 2016 and lower than it was during the worst of the pandemic, interestingly enough compared to october, republicans have turned sharply negative on the stock market democrats, they have grown much more positive. independents follow republicans, also soured a bit on stocks. the views on the stocks, they're mirrored in the views on the broader economy, where the
outlook turned also decidedly pessimistic. look at this data, 51% of the public saying they're pessimistic about the current state of the economy and the outlook for the economy, that's the most pessimistic they have been since 2015 just 22% giving the economy positive marks, views again not worse than the teeth in the pandemic in the spring a clear spike there. the virus, crime, immigration, and inflation top the list of concerns by the public here is the question, whether this pessimism translated to less spending by americans, which you should know, many of whom are flush with cash right now. >> steve, interesting point there, on the comments about whether they should invest in the stock market, i guess we need mike santoli to decide whether that's a contrary indicator or whether the correlation should be positive on the economy, what explains how it is possible to be more bearish than last year, both in the peak of the pandemic and the end of last year as well >> i think there is a little
exasperation with all of this. i think there is an idea maybe this is going to continue. there was a sense that, hey, we almost had the ring within our grasp, all of a sudden we're back where we were there is a lot of confusing talk from the government about the pandemic, the efficacy of the vaccine. that's part of it. inflation also looks to be taking a toll out there as well. but, you know, on the indicator, it is an interesting idea if you have information that kind of supports the idea of going against the tide and i think the idea is that if guys like waller and others are right, that this is a spike, and we're going to get control of the virus, control of inflation, then it makes sense to lean against what the prevailing posses pessimism is right now. >> as for contrary indicators or not, you pushed the dow to a session high, it is currently up 250 points, 0.7% >> i'm willing to keep talking -- i'm willing to keep talking on behalf of investors everywhere.
>> well, i think you should. regardless of whether or not you're still on camera, steve, thank you so much. we have to move on now turning to china, where video game stocks are under pressure following new criticism of the industry in state run media. josh lipton has that story for us. >> we know the chinese government has been cracking down on a range of industries from online education, to ride hailing. now investors wondering could online entertainment be next chinese state media calling online gaming opium of the mind. in an article saying online gaming addiction is widespread, stocks as you point out selling off. names like tencent, netease and bibilitu the report disappeared and then resurfaced with a much softer tone with references to opium removed. this criticism is not entirely new, of course back in 2018, beijing froze new game approvals still questions certainly remain here for investors could there be more new
regulations on the way we simply don't know right now but tencent getting out in front of the problem, already announcing new restrictions, barring children under 12 from spending money in gaming back to you all. >> josh lipton, thank you. after the break, more companies and institutions are mandating vaccines, or requiring frequent covid testing we'll talk to the ceo of labcorp about how the new requirements are impacting his outlook. you're watching "closing bell" on cnbc. session high, dow is up 246. we'll be right back. zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.
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new york city mayor bill de blasio announcing vaccine mandates for some indoor activities today employees and customers of restaurants, gyms and movie theaters will be required to show proof of covid vaccination. this comes as a growing list of companies and institutions have come out with new workplace policies including mandatory tests for those who choose not to get vaccinated. labcorp among the names that could see a boost from the moves. labcorp chairman and ceo adam schechter joins us now as always, good to see you thank you for joining us. >> it is a pleasure to be here >> have you seen a pickup in demand for tests in just the last couple of weeks because of delta? >> yeah, we absolutely have seen an increase. last week in our earnings report for the second quarter we
averaged 54,000 tests per day. we also said that june was the lowest month of the quarter. if you look at july, it is significantly higher in terms of the number of tests we are doing in june. and in the last two weeks of july, we're much higher than first two weeks. >> and are you able to pick up the variants with great accuracy or is this much more a case of just knowing when people are positive and that's likely to mean delta at the moment >> yes, so we can pick up the variants our test is very accurate. every time there is a new variant, we make sure we validate our test is able to detect those variants. at the same time we're doing a significant amount of sequencing, so for anybody who is positive, we sequenced genetically the virus to understand which variant it is, and i can tell you by far the most common variant in fact over 80% of what we're seeing is the delta variant. >> how do you think, adam, about the long-term future of this part of the business the new part of the business of
covid-19 testing is it something that will be with us for a while and how do you make those predictions >> yeah, it is very hard to predict. last week we reported our earnings, we said that our base business had rebounded and if you look at our base business for the month of june, it was the first time since the pandemic that this june was higher than the month of june before the pandemic. at the same time, we said we believe the amount of testing we're going to do for covid this year is between 33 and 38% lower than last year as i look at next year, i assume there will be some testing that will be necessary, but my hope is that everybody get vaccinated, and therefore the need for testing be less and less one other thing we have to think about is will there be other tests in the future, for example, to know if people have immunity against the virus, to understand t cells and the memory of t cells, so there may be different tests in the future, but the hope is the tests to detect the virus will go down significantly over time.
>> so, in terms of your numbers, do you feel like you're somewhat in a perfect storm at the moment, not that you want to have to be testing for these sorts of viruses, but that you're still getting great demand from covid, but also because we reopened, you're see a pickup in more traditional healthcare tests as well >> you know, we reported our earnings last week and they were very strong for another quarter again. at the same time, you know, what i look for is the underlying business i look to make sure that people are going back for their healthcare, people are getting the treatments that they need. the better we do, it is typically because we're helping more and more patients with their health at the same time, i wish we weren't doing any covid trials i wish we would all be vaccinated and past covid. everybody would be back to the normal lives our business is strong we focus on science, innovation and technology we're looking at areas like cancer, alzheimer's disease. i believe our business is strong with or without the covid
testing. >> are the covid tests completely accurate now? i remember in the beginning of the crisis, when we would have you on, we would ask about specificity and all the metric and which test do we use and no more antigen tests what is the overall accuracy now? is that an issue still >> if you look at the pcr testing we do, and we maintained our capacity to do as many tests as we might need to do we're ready for whatever might come in the future but the testing is very, very highly accurate, for sure. >> adam, good to see you, thank you for joining us. >> thank you for having me it is a pleasure >> we have got just under 45 minutes. two minutes or so before the close. we're up near the session highs still, 255 points higher on the dow. 0.7% or so after the break, big little buys, reese witherspoon selling a majority of stake in her company. we'll hear what she said about
that deal next check out robinhood stock today. a strong session and blowing past its $38 ipo price up 22% now on the day to 46 bucks. we're back in a couple tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance
strong financial session here for the markets we turned around from an earlier decline, down triple digits, now at the highs of the day, 249 on the dow. biggest contributor is united healthcare, home depot, cat, 3m, the biggest losers, mcdonald's, disney and visa. the s&p 500 we're on record close watch as bob mentioned few points away. up three quarters of 1%. every secretor is green now technology is having a good day. apple, moderna is ripping to new highs. the vaccinemaker amazon is coming back. amd and chipmakers netflix, starbucks, those are
some of the weaker names in the nasdaq overall, positive session led higher by the s&p and the dow, up a full percent now. >> just what three points, two points or so now from the s&p 500 from that record closing level. actress and entrepreneur reese witherspoon is selling off a majority stake in her media business to a venture backed by blackstone julia boorstin spoke with her earlier about the deal and joins with us some highlights. hi, julia. >> i spoke with reese witherspoon and ceo sarah harden about the sale of their female-focused media company, for what sources tell me is $900 million. witherspoon saying selling to blackstone-backed company will enable them to sell their products, their series and tv shows, across platforms. >> we're just doubling down on our mission. now we have the ability to tell more stories, to hire more female filmmakers, to promote
and lift up even more authors. i'm excited to get more involved in digital creators. and it is really -- it is fascinating to see how a company like this, that started just four years ago canreally resonate with audiences. >> a key advantage of the content model is they build direct connections with fans starting with books are published through reese's book club they develop those relationships with fans and develop the books into series and films and keep those relationships going until they're released on streaming services or on other media platforms. now witherspoon and harden are working to expand into new business lines and including kids animation and commerce as well back over to you >> julia, what do you think about the price tag? $900 million, in the context of some of the other big content assets we have seen lately, amazon deal for mgm at $9
billion. where does this stack up >> well, i would say prices are high now that $9 billion for mgm was high this is a high price, especially considering this is a company that is just hitting profitability this year. i would also say that blackstone is looking for outcomes. this is not a company like amazon that can think about how it might fit in the rest of their assets the acquisition of this hello sunshine by blackstone really speaks to the fact that they see opportunity for hello sunshine to be an arms dealer of sorts and sell their content across all these different platforms. i think a lot of the value now comes down to the fact there just aren't that many independent players now, there aren't that many that can be selling to all of these different players because all the studios are tied up with their own streaming services but, sara, i will ask that question to kevin mayer and tom stags, we'll hear more about what they saw in the growth potential in hello sunshine when we get them on air tomorrow.
>> that sounds good. good payday for reese witherspoon, who is in a number of my all time favorite movies julia boorstin, thank you. >> wait, wait, which one >> so many "election," "legally blonde," "walk the line". >> "walk the line," i was about to say >> so good still to come on the show, under armour among the top performers in the s&p 500 today after the company reported pretty strong quarterly results including a 91% spike in revenue versus last year we'll talk to the ceo patrick frisk about the quarter and what he expects from this year's closely watched back to school season this is our theme of the week. as we head to break, a check for you on bonds stabilizing a bit today after an earlier drop back up to around 117. still super low yields, but we did firm up a bit throughout the session. stocks are near the highs. we'll be right back.
just about 30 minutes left to go of the session let's check in on individual market movers now. shares of victoria's secret skyrocketing today the company completing the separation from bath & body works, l brands, and is trading as a separate public company overweight rating saying victoria's secret is an undervalued turn around story, up 29% and ralph lauren shares popping as well. the retailer seeing sales more than double.
rebounding sharply from the pandemic lows. the north america comp sales growing 176%, digital sales jumping 51%. a raise of guidance as well. this is a company like under armour that really took the covid-19 crisis as an opportunity to reset the business and work on breadth of product, geog geographies, they both average unit retail, aur, retail, the average selling price of an item, that's grown for 17 quarters and what that points to is they elevated the brand and the product and they have gotten some good pricing power with the consumer they got rid of 66% of wholesale locations, basically department stores, to really focus on their own stores and on their own e-commerce business and so this is the fruits of some of the labor, that the ceo put in place sort of prepandemic, they were in the middle of a turn around, took the opportunity during the pandemic and are now coming out strong along with a lot of retailers,
don't get me wrong the consumer is flush with cash. you are seeing some of these stories like ralph lauren and under armour distinguish themselves through the execution and measures they put in place, more targeted marketing and brand elevation during the crisis. >> nice move there for ralph lauren, even better still for victoria's secret. up 30% time for a cnbc news update with rahel solomon. >> here is what's happening at this hour. an officer was stabbed to death after an incident just outside the pentagon officials say that a suspect was also shot by law enforcement and died on the scene. the pentagon was briefly placed on lockdown after shots were fired near an entrance to the building another investigation into new york governor andrew cuomo the district attorney's office of albany county says it has an ongoing criminal probe into conduct by the governor. earlier today, new york's attorney general released a report saying that cuomo had sexually assaulted at least 11 women, cuomo denies the
allegations. the golf of oman, six oil tankers losing control around the same time earlier today. it means a vessel has lost power, but maritime experts say that it is extremely unusual for multiple ships to suffer engine troubles at the same time. the british navy did warn of a potential hijack of one ship, but it has provided in further details on that. back to you. >> rahel solomon, thank you. up next on the show, under armour ceo patrick frisk on his company's earnings win and what he expects from the back to school season as kids get back to in person learning and school sports. we're counting down to more earnings after the bell. lyft, activision, amgen and match. stay with us near session highs here with the dow up more than 26 0 points that building you're trying to buy, - you should ten-x it. - ten-x it?
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under armour rallying on strong q2 earnings the company beating on the top and bottom lines and raising full year outlook. shares are higher by 7 1/2% on top of the s&p the stock nearly tripled from the pandemic low joining us for more on the earnings is part of our back to school series, patrick frisk welcome back to the show good to have you >> thank you, sara >> my first is on the outlook. we're still kind of in uncertain times here around the delta variant and covid-19 what is giving you the confidence to boost guidance to the more than 20% growth kind of numbers? >> i think we have done a really good job as a company to be able to execute throughout the
pandemic and we built really strong resilience as a team. as we think and look forward here into what we believe is going to be a robust back to school season, we really made sure that we have covered the basis so to speak in terms of how we source our product. we're less affected by what's going on now in vietnam and malaysia than most other people. we only have a third of our source income coming out of there. we think -- we factored in the potential disruption that currently is visible to us and we're looking forward to executing here in the back half. >> you're seeing better price points for the brand that's a big part of the story on the higher margins. can you explain what you think is driving that? a lot of other companies in the industry are seeing this as well with the inflationary environment, they're able to pass on the higher price, consumers are flush with cash. what is letting you do it as a brand at under armour? >> under armour has become better at being able to launch franchises through the
marketplace, especially in footwear we launched our new flow platform this year, running for example, the flow velocity wind at 160 comes on the back of $150. we're now into multigenerations on some of our strong franchises in rung like sonic 4, infinite 3, et cetera that's helping us elevate the game but it is also about being able to constrain demand. we made sure that we have the right inventory levels in the marketplace, you saw our inventory go down 26% in this last quarter and for us, having the right product, the right place, the right time, being able to support it with the great marketing that we now do and as we talked about also wrapping up in the back half is really what is helping us drive those higher and building value back into the brand. >> so we followed your turn around and this execution that you put in place, the higher margin, profitability, better
inventories, since you've taken over this company. what is the next leg of growth what should investors expect next in this journey that you're taking them on and clearly they're bought in because the stock has been doing well lately. >> yeah, i think what is really exciting is our ability to scale our footwear business, as i said, we're getting traction and footwear we're doing a better job in our heritage categories and footwear as well as in training we have this platform we have been able to transcend from running into training in women's, and international, and then continuing to make headway in our core training category. so, for us, there is a lot of opportunity for under armour to continue to grow and we're excited about what that means to us now that we have got this new capability of truly understanding how to build on franchise success, which is so important, especially in footwear >> patrick, when you look at the big year over year gains, most of that is driven by story
openings and in store sales. is that the case and has there been any tail off of that in recent weeks as covid cases have picked up again? >> i think like most retailers right now, and most brands, we really look at things from a two-year stack we look at our two-year stack, what is encouraging for us is not only are we able to doa better job in digital, which has been one of our most important initiatives growing our e-commerce at 50% two-year stack throughout this year, but actually also and we look at our comps and full price stores and our outlets, we also see good comps there which is, of course, something that is very, very encouraging for us as we think about our future >> wanted to ask you about sponsorships, now that the world of sports is coming back after you pulled out of some high profile ones last year ucla, university of cincinnati, are you done with that chapter are you looking to reinvest there? what can we expect >> well, we're definitely
turning the corner into our precision mode for us, it is always really to rn important to understand how we can activate anythingwe get engaged with when we do have a partnership, individual athlete or a school, we're able to put some horsepower behind it so we're now looking forward to getting more engagement going forward, and we're dwgoing to b doing that through select and strategic investments in the future >> that's a good tease what about college athletes? i don't think i had the chance to talk to you since the ruling came down that now college athletes can profit from their likeness and their image and their name is that an area you are looking to explore >> well, i think it is pretty exciting to be an athlete right now because of that. and i think that as we think about our investments going forward, we'll be considering lots of different things i think at this point in time, it is hard for me to comment on
what we're going to do that's something we would like to keep a little close to the vest but certainly going to be opportunities there as we look into the future for sure >> report that steph curry agreed to a new contract extension with golden state warriors, first player in history to have two $200 million contracts. he's an important player for you. how is the curry brand doing and that relationship after there were reports it was a little soft over the last year. >> well, we really are excited about a couple different things going on with the curry brand. it is a purpose led brand. and the activation that we're doing together with steph and on that brand to really engage kids and sports, something we think is so important since about only about half of all kids in this country are able to participate in sport now, which we think is a number that needs to go higher, but also in terms of the product and the innovation that we're bringing to market together with steph and the new basketball shoe we brought to market, the flow 8, is doing
really good. it is going to be exciting to see the new curry 9 that is just around the corner in a few months and building on some of the other activations we're doing with staff and golf. there is exciting stuff going on there in terms of all the seedings, exciting apparel and footwear going into the future as well. so comprehensive plan behind steph's brand and i think the work we're doing around innovation is just incredible in that brand excited to see progress this year and really accelerating that next year >> patrick frisk, thank you for taking the time on earnings day. we appreciate it >> thank you, sara thank you. >> good to see you back in the office too ceo of under armour. stock is up 7.5% coming up next hour, we'll continue our back to school series with the ceo of columbia sports wear. and how supply chain issues are impacting his company. some interesting news in the fintech space just crossing.
bloomberg reporting that apple plans to launch a buy now pay later program in canada on august 11 th the report says this is in partnership with the firm, which was briefly halted for trading and just resumed up 5% right now. this all follows square's $29 billion acquisition of afterpay announced earlier this week. i think the most interesting thing to this report, sara, just brief details, moments ago, of course, is that it is in partnership with affirm. this doesn't need to be an apple goldman sachs pay deal, it is an apple product. apple selling their products as opposed to apple paying goldman sachs partnership also moving into this space. but this, again, is good for affirm yesterday a rival. this day affirm's directly involved and two very strong day of performance for affirm. after the break, pepsi shakes up the beverage strategy and one name outshines the rest. those stories and much more when we take you inside theart neext. mke age before beauty?
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uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. with 12 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. today we have joe terranova and megan shoe with us stocks rallying into the close, near session highs on record close watch for the s&p 500. we're looking for 4422 we're at 4419. in the face of very little news flow, and continued pressure on yields, it is notable that the stock market is just able to
overcome any wall of worry, whether it is the delta variant, the concerns around china, all of these could be excuses to sell off, oil prices were down again, and yet stocks continue to get bought. >> resilient is the word that comes to mind, sara. rather remarkable. there is seasonal weakness for stocks and bonds in the month of august that's been well communicated, but yet here we are approaching new highs. i think internally within the market today, what is important to understand is there is a sector that really defines the sentiment of the investor right now. they want quality. they want the balance between growth and defense and its healthcare that provides that for them so if you look at the s&p 500, you have 64 new 52-week highs, leading that is the healthcare sector which 17, pfizer, eli lilly, edward life sciences, j&j, all making new highs and for the quarter, sara, it is healthcare that is so far is the leading sector
i think that's indicative overall of the sentiment investors have toward the market. >> megan, can the yield moves continue to go on and be kind of disconnected from the stock market, which as sara mentioned is a point or two from record highs? >> yeah, i think this is one of the biggest disconnects that investors are grappling with right now. you have real yields that have rarely if ever been lower and yet the market is hitting an all time high. over nine to 12-month investment horizon we're optimistic we see the economy supported by consumer spending, capex, consumers were sitting on $3.5 trillion of excess saving and capex is back above prepandemic levels so we're constructive, but i would say the lower yields is signaling something very different from what we're seeing from earnings season, the ability of companies to pass on higher costs and maintain profit
margins. at the end of the day, we think yields move higher rather than stocks moving lower to rectify that gap >> chinese gaming stocks including tencent and netease taking a hit today after chinese state newspaper this morning described online video games as opium for the mind in a statement by wechat, tencent pointed to game time limits put in place for younger players. it has been removed and replaced with a softer tone but worries over china's crackdown may be trickling into the u.s. market. shares of taketwo, activision and electronic arts all lower today. activision reports their earnings after the close you can see what 7.5% slide for taketwo. what is your take on this and, of course, all of the moves in recent months that precede it when it comes to china cracking down on their tech industry? is it ultimately a good thing for the u.s. and u.s. tech companies?
>> it is and i think you've seen a lot of inflows towards megacap technology because there clearly is a positioning on the part of chinese policymakers where they want that autonomous control of any form of data security, certainly looking to regulate it, it began last october, with jack ma and group. and alibaba. it is continuing now when we're talking about tutoring being not for profit and talking about the gaming environment as you define we're going to learn specifically about a lot of these gaming companies after the close with activision. they're all in serious down trends they have been in down trends now for the better part of this year activision, you need a culture change, clearly, but you also need to see there is going to be an acceleration in terms of both monetization and engagement, but i think collectively when you're observing what is going on with chinese policymakers, regulation is the key they're valuing the collective and understanding all of that, that is going to have investors
pacing a premium on megacap technology oriented here in the united states. >> let's talk consumer staples a deal today, pepsico parting ways with some of its most famous juice brands in an effort to boost growth. saying it plans to sell tropicana, naked and other juice brands in north america to french president private equity firm pei for $3.3 billion and as part of the deal, pepsico retains a joint stake in the venture. a statement that they're only looking for high growth categories because under the ceo they bought sodastream. they bought rock star, which is the energy drink these are categories within beverages that are growing very fast juice is not and it is not a high margin business and it has not been for years, even with the covid-19 boost of people staying at home.
so they're unloading this and making the statement they're not just making acquisitions, but also looking at the portfolio as well strategically. and my question, megan, how do you decipher between consumer staples now, the ones that are growing and doing better, like pepsico, coke had a good quarter, and then clorox today, which is falling hard because of just tough comparisons to covid-19 and the inflation story weighing on margins, it feels like it is different for all the stocks, p&g had a great quarter. kimberly-clark did not how do you choose? >> i think this is where you have to look company by company, look at their fundamentals, more broadly we're underweight to staples where we see better opportunity elsewhere. this is a tough space to pass on the costs. you're going to see a more price sensitive consumer where companies have to rely on more on operational efficiency and driving margins elsewhere and then you want on top of that some extra commodity sensitivity
and sensitivity to the increases in raw input prices. so it is not a space we feel great about. but we would be looking at that bottom up fundamental approach to pick our spots here. >> what is your take on this one, joe do you like the strategy they got a good price to exit? >> brilliant brilliant. they're focused on growth, focused on health. when you're looking at the consumer staples sector, that's what you're going to be identifying. the company strategy is perfect. unfortunately i've tried to invest in growth in consumer staples with monster beverage. it has been good, over the last couple of years, but clearly it has been pepsi and coke more recently that is witnessing the price appreciation so, by the way, i think sara would know this, they're selling this at the perfect time as a result of the pandemic, operating margins accelerated towards 10%. that is not the historical
average for the juice business it is more about 4%, 5%, 6%. it is a great sale it is moving away from as megan said a component that is correlated to commodity pricing, and it is focusing on low calorie beverages and healthy snacks, that is exactly what you should be doing and improving the balance sheet. pepsico is going a lot higher. >> remember when juice was consideredhealthy? it is not. it is a high sugar, high calorie drink and people have moved on and that is just not what's working. it is also expensive >> yeah. i mean, still not that bad orange juice anyway -- >> it is good sugar. but it is a lot of sugar it is the good kind. >> it is better than hard seltzer. i mean -- fine, moving on. >> i don't know. stocks surging today and -- >> it is debatable. >> it is better for you than that it might be higher calorie, but it is -- it is not got alcohol in it. i guess you could leave it to
ferment for a long time and have kind of spiked orange. anyway, let's get to soda stocks pippa stevens has the details. >> not hard seltzer or orange juice, but stocks are shining today and solar edge is leading the way. the stock jumping 16% today for its best day in 15 months after earnings the company beat estimates for the second quarter and gave upbeat guidance. these results are notable because during the first quarter solar edge warned of possible margin erosion dure to supply chain and bottlenecks. now it seems some concerns are in rear view mirror. the stock's performance is lifting the entire industry in the invesco solar etf up 3% today. residential solar company sun power reports earnings in a few minutes and sun run is on deck for thursday certainly two names it watch there. back to you. >> i'll take it, pippa, thank
you. pippa stevens. lyft is one of the big names on today's after the bell earnings calendar. deirdre bosa is here. >> the main thing to look for is adjusted ebitda number, the preferred measure of profitability. lyft said it expects to hit that milestone in the current third quarter, so investors will want to see how close it got in the second quarter lyft is seen as the more pure reopening play, but that driver shortage and the delta variant could complicate the picture looking for more details there shares are up about 10% this year far outperforming uber they have stumbled lately on the concerns, losing about 10% this month. back to you. >> deirdre, thank you. what do you make of the divergence and which one do you choose, if any lyft and uber? >> a lot of complexity back in february i bought uber way too high, up at $57. i got stopped out at $48 in may. i believe that uber was the
right business because it is more diverse tid it is not just about mobility. it is about mobility, logistics, you want that diversification in particular in an environment where we're still struggling with covid both domestically and globally that being said, lyft in terms of institutional allocations is clearly underinvested relative to uber. uber is the favorite choice. lyft performed better more recently the expectations are low for lyft i would be surprised if it continued to move lower from here >> they are starting to go wild on the new york stock exchange floor and going wild, though i am, here in london we have a minute left of the session. we're close to that record closing level on the s&p we're at 4422, spot 2. we need nothing. 4422 spot 6 now and that will be
enough energy is the best performing sector, up nearly 2% healthcare doing well as well. communications services, the only secretar sector down we are fractions away from a record closing high on the s&p 500. not quite there. but just moments up. into the close, we might have got above it healthy finish there on the s&p. that will do it. record close for the s&p 500 welcome back, everyone, to "closing bell. i'm sara eisen with wilfred frost in london. the dow higher by 279 points we came back from a deficit, the dow was down 123 this morning, closed near the highs of the session. up 279 a strong day
united healthcare biggest positive contribution on the dow with home depot, amgen and boeing s&p 500 closing at a record high, first time we saw that since i don't know a week and a half last week of july. the last record close. and it was led by a variety of sectors. energy, industrials, healthcare, financials, all of those sectors and materials closing up more than 1%. consumer discretionary strong too. communication services were lower on the day media companies a little under pressure the nasdaq closed up bymore than half a percent. apple the leader there moderna, strong day. some other healthcare names, amazon, microsoft in rebound mode google, good day facebook was down, so is netflix. overall strong day for tech. small caps rallied .4% as well the russell 2000, we reversed a decline from yesterday little lower than average volumes and not a lot on the news tape. but overall, pretty strong comeback for the major averages. the transports gained 1.4% breaking a two-day losing streak
as well. investors are suffering another big hour of earnings we'll get results from lyft, activision, blizzard, amgen, match and secaesars. instant analysis of the results for you. plus, match's cfo will break down his company's numbers in an exclusive interview following that report. first up on this record close, joe terranova from virtues investment partners, megan shoe from wilmington trust, both still with us, peter shakine joins the conversation, director of research. welcome, peter good to have you joe, to you, you used the word resilience for the markets what is driving -- is it earnings coming in better than expected and specifically outlooks where companies could use the delta variant and the return of covid in this country to say, it is looking a little cloudy we're get something pretty positive reads, especially from consumer companies. >> yeah. the market just loves to climb the wall of worry. it has an opportunity to do it once again resilient is the word.
what i like about today is that the inflation friendly sectors are the sectors that actually led the market higher here what is interesting about that is that inflation friendly trade has been liquidated as we witnessed yields pullback. it has been liquidated for the better part of the months of june and july. so you want to see financials and industrials and materials and healthcare and energy begin to lead the market higher. i like that we're seeing that. specifically in financials that's where more recently my activity has been. i think tomorrow we're probably going to be talking a lot about robinhood. which rallied dramatically today, that's going to be in the conversation for tomorrow for sure >> peter, wanted to come to you, as to whether you think the fed is risking making a policy mistake or whether they got things perfectly in control and justifies the market continuing to rally
>> if history is any guide, the fed is rarely sort of proactive when it comes to things like inflation. and i think the risk of policy mistake is rather high here. i think one of the big differences sort of this time relative to previous episodes is that the fed has qe at its disposal and it is in control of the entire yield curve so there is this seeming disconnect when we think about, you know, the theory of interest rates, nominal rates equal real rates plus inflation that's out the window here for a bunch of different reasons and it is out the window because the fed is allowing it to be out the window it doesn't want to see the inflation's definition of transitory makes nontransitory inflation impossible i think the risk is great that the fed is waiting too long to taper and then at some point, as inflation brleeds into the numbers more and it is clear
that companies are struggling to push through costs, the fed will be sort of forced if you will to act. >> megan, what does it mean for stocks the view on the fed now, the earnings picture, sum up your outlook. >> we're still constructive over 9 to 12 month horizon. the earnings backdrop, earniearn ings season has been strong we have never seen an earnings season like this that's very strong there are questions about what it means to move past peak economic growth, peak earnings growth we still think the cycle has a lot of legs to it. the delta variant, in a weird twisted way, could actually be constructive for equities if it leads to a dampening of this boom and bust type of cycle. and elongates and drags some growth into 2022, keeps the fed on pause, so we are
constructive i would say stay invested and stay diversified, but don't get used to necessarily this resilience in the market that joe spoke about on the low volatility we haven't seen a 5% pullback in over 8 months. that's very unusual. we expect a return to normal volatility at some point in the near future. but we would say look through that, and expect stocks to continue to outperform >> we have some numbers crossing lyft first up, deirdre bosa has it for us. >> shares up nearly 5%, beat on the top and bottom line. the first thing i want to tell you is adjusted ebitda profitability, they hit this in the current quarter, a quarter earlier than they expected adjusted ebitda of $3.8 million. revenue beating expectations, growing 125% year over year. remember from a smaller base during the pandemic. $765 million versus $697 million. earnings -- loss per share of 5
cents versus a loss of 24 cents expected more commentary that is key here the company says that demand continues to grow in july, despite heightened covid cases saw 3.6 million increase in active riders versus the previous quarter, more people continue to go back to ride sharing. revenue per active driver, however, this dipped to $44.63 from $45.13 in the first quarter, which may be why we're seeing, guys, shares come off. they were up as much as about 8% we'll continue to dig through this and bring you more as we get it back to you. thanks for that. lyft co-founder and president john zimmer will break down those results in a first on cnbc interview tomorrow on "squawk box. don't miss that. impressive to get that adjusted profitability earlier than
expected or are shares ripe to pair back some of the gains? >> i think it is impressive. i like the growth of active riders, 3.6 million, there is going to have to be an explanation, though, on the revenue per active rider that's coming in a little bit disappointing. and that might be where shares are pulling back here. i think you got to dig deeper into that metric of the earnings report here before you get excited about this >> megan, is this a company that you're excited about is it a reopening play for you interesting that the company went out of its way to include july driver earnings as deirdre mentioned, being strong, even with rising case counts of covid. >> the landscape is changing so quickly. going into that granularity in terms of months and data for particular months is very important. we don't have a lot of expo sure to ride hailing. one of the advantages of a company like lyft is while joe
spoke about not being as diversified, that can be a good thing in the current environment where there is more exposure to the u.s. and lyft versus uber. and the u.s. is recovering much more quickly than other parts of the world. i think the long game that will probably in terms of the shortages of labor struggles with demand, the worst is probably behind these companies. but we would be choosing other forms of reopening play, whether that's online travel companies, or even other parts of consume irdiscretionary like retail. >> maybe casinos con contessa brewer has the numbers. >> the revenues coming in at 2.5 billion a beat against the consensus of 2.33 billion. the eps at 34 crents per share here is the real key metric in
gaming that adjusted ebitda, that key earningss metric in this industry a billion dollars of ebitda. we look at revenue down 15% this quarter, compared to the same quarter in 2019, the ebitda, the key earnings, up 20% margins here 51% margins in las vegas. that's up from 38% in 2019 and in the regionals we're seeing significant growth as well margins at 40%, up from 27% in 2019 and that was before the caesars and eldorado merger. on the call, we're going to want to hear what the ceo has to say about the newly reinstalled mask mandate in las vegas how that might affect business we'll be looking for that. as you see,the shares popping in extended trading today. don't miss an exclusive interview with caesar's ceo tomorrow 10:00 a.m. eastern on "squawk on the street. more earnings out.
amgen. >> eps more than a quarter above estimates. the biopharmaceutical company saw revenue rise on higher demand said they faced pressure with pricing. they also reaffirmed the fiscal year revenue and eps guidance, but issued a little bit of caution saying the company has seen a gradual recovery in patient visits and lab test procedures since q1, but still below prepandemic levels also, the decreases in patient diagnoses slowed treatments for new patients which will continue to weigh on the business throughout the second half of the year shares of amgen down fractionally right now back over to you >> three basis points, not too much movement there. activision earnings also out josh lipton. >> activision reporting 2q results here net bookings 1.92 billion versus expectations of 1.9 billion.
q3 guide, 65 cents 75 cents net bookings of 1.85 billion, expectation was 1.81 billion for the year, looking for 376, in line on 8.65 billion. closer to 8.77 statement from the ceo saying we're pleased with the company continues to deliver strong results, he says in the second quarter. we remain intensely focused on the well-being of our employees. today we learned blizzard president jay alan barak is leaving the company after that lawsuit was filed against activision and blizzard by that california state agency. alleging discrimination and harassment this call kicks off at 4:30 eastern. back to you. >> josh, thank you for that. up nearly 3% following a big decline in today's regular session. peter, i don't know whether you want to take this. let's talk about earnings so far
this season. pretty impressive numbers if you look at year over year growth. that was expected. but still beating consensus for most part. justifying these market levels >> well, you know, it has been an incredible year and a half or so and visibility in earnings has been very difficult to come by whether you're running the company, whether you're trying to analyze a company and so this really high beat rate is clearly a good thing for the markets. certainly better than if companies had been missing i think the guides, you look at the guides, they have been mixed. by the way, you talk about this resiliency in the markets, i would agree relative to the s&p 500, it has been incredibly resilient. when you look at earnings across the spectrum of companies including small caps, for example, they haven't been as stellar. you look at new york, stock exchange stocks, only 55% of those companies are above the 50 day moving average i think there has been a real
rotation into quality names and the resiliency in the s&p is to some extent an s&p phenomenon that doesn't apply more broadly to small caps, which particularly is vulnerable to inflation and margin pressures >> robinhood which surged today, up 24% it did close above the ipo price. we have been watching this one carefully. stumbled out of the gate unusual decision to allocate a portion of the shares in the listing to its own customers what drove the surge today is this cathie wood induced? >> i think it is cathie wood induced. what does it mean for the market i'm doing a cnbc pro event with dominic chu. i'm not going to be able to listen to jim cramer and hear his thoughts in the morning. i know jim will be talking a lot about this tomorrow. and what does it mean for the overall sentiment in the market.
that's important to understand. >> you see this as a retail barometer? >> to a certain extent i think it takes the speculative temperature of the retail investor and those are also very strong institutional commitments to robinhood itself. listen, it is pricing at 46 right now. it is a lot better than had it was pricing where it was last week for robinhood itself. but given the extensive activity you saw, 87 million shares traded today okay that doesn't sound like people sitting on the sidelines and enjoying summer vacation, does it >> up 24%, very nice move, jim cramer talk about it already last night in particular we have to leave it there everyone thank you so much for joining us today in the market zone up next, chart expert jeff
degraph will join us and discuss a new potential warning sign for the market and whether investors should be concerned about it even as the s&p eeks out a record close the ceo of columbia sports wear on whether surging covid delta cases could dent consumer mand back on "closing bell" in a couple minutes ial consultant. 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.
oh my gosh! ...plus up to 400 dollars off her wireless bill! wow! cheer on team usa with xfinity internet. and ask how to save up to $400 a year on your wireless bill when you add xfinity mobile. get started today. welcome back major averages closing in the green at the highs of the session. s&p 500 posted a record close for the first time in more than a week joining us now with his take on the market is chairman jeff degraph. good to see you as always. thank you for joining us let's start off with your take on the summer months and seasonality and where we are in that process and what it means for the markets. >> we always take a look at the next three months in terms of seasonality and by no means do we ever use seasonality to make a call in and of itself. it tends to be icing on the cake
or make us tilt one way or the other. seasonality for the next three months is really in one of the weakest zones, you take the market back, to 1928, and just look at really day by day, week by week, where the strength and weaknesses in the market clearly the four quarter is a great place to be. right here tends to be the weakest part what i think is interesting is the old saying, sell in may and go away, it gets a lot of traction the reality is you really should be invested through june through july and sell toward the end of july if you're seasonality. you have seasonality that is upon us, that might be washington induced this year it does make some sense in our book to have some cash on the sidelines with this seasonality. >> is the yield curve suggesting that as well >> the yield curve is the
biggest question mark we have with what is going on now. the way we interpret this, it is probably more of a growth scare than it is a policy mistake. that might morph into a policy mistake, but having the yield curve contract and i know the fed looks at this, the yield curve contracting at this point in the cycle is not really what they want to see, on its volition if they're contracting the curve by raising rates, that's one thing. the long end coming in as extreme as it has, really probably puts them on pause, on hold longer than what you otherwise expect no doubt that a contraction in the yield curve is something that is very typical of a midcycle, very typical of a midcycle to late cycle we think it is a growth scare. but something that has our ears perked and i think probably the most interesting part is when we look at industry performance and you look at the attribution, really it is a slam dunk that those industry groups that have been weak, strong over the last
six to ten weeks, really have a high concentration or high correlation with yields. so what we're seeing out of the yields and what we're seeing as interpreted in the market we think is really very, very much dependent on what has happened to the long end of the curve here >> what constitutes russell 1,000 quality stocks >> there are points in the cycle. it is hard to wake up every morning and look yourself in the mirror and say i'm going to buy the worst companies i can find it is not a very -- doesn't sound like a good investment thesis this is not one of those points in the cycle the points in the cycle where you want to buy low quality is when the fed is flooding the system with liquidity, when it is abundant and we think still ample.
into a midcycle, quality starts to resonate. and we look at quality as a return on invested capital, you can use return on assets there are several different ways to define it it gets you within that zip code of what quality is absolutely in our view, more than value, more than growth this is the point you want to start to migrate away from volatility, the point at which you want to migrate away from leverage and start looking at high quality names it is important that you look at high quality names on a sector neutral and industry neutral basis. the capital structure and the way companies are run changes from industry to industry. if you can gravitate toward those with the highest quality, we think you'll be in a good pentagon for the remainder of the year >> jeff degraph with three charts, thank you for joining us. >> thank you up next, match's cfo breaks down his company's latest earnings, discusses whether the covid delta variant is having an impact on in person dating plus, much more reaction to lyft's smaller than expected
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hours earnings was a miss coming in at 46 cents a share the street was expecting 52 cents. revenue was a beat $708 million the street estimate was $691 million. the company seeing 15% greowth i payers, users that purchase features across its dating platforms. joining us for more for an exclusive interview, match ceo and cfo gary swidler welcome back to show the good to have you. >> thank you, sara good to see you. >> how would you characterize what is happening with users and growth as the economy reopens, you would think that would mean people want to go on dates again. >> absolutely. i thought we had a fantastic quarter. 27% revenue growth was fantastic across the board our tinder business was incredible, up from 6% our other business is up 28% as you said, payers, people who pay us up 15%. really strong growth for us across the board the u.s. in particular was very strong as reopening started it
take hold and we started to see that strength as well in europe. i'm optimistic as we make the turn here to the second half of the year, things keep going well our business will continue to perform extremely well also. >> i'll pick out another number, average revenue per payer, i guess is an important metric for growth, up 10% from a year ago 1546 what is driving that >> we're selling people more a la carte or consumables and learning how to do that around the world with a number of our brands people are buying more on a one off basis for us and subscriptions. we're driving the rate that we get from our customers and driving customer growth as well. so it is really double barreled growth on payers and on rate that's leading to that 27% revenue growth >> how about the integration of hyperconnect should how is that going? >> we only owned the company for six and a half weeks or so they're a great team
really strong on the engineering side give us 400 plus people on the ground in asia, in korea, there is a lot we can do with that company. we can help turbocharge their growth for their apps and many of the markets they want to grow in and they can help us on our products to make a more imm immeimm immersive and gaming experience. we're at the tip of the iceberg, but we're super skissuperexcite can do with that company. >> do you see a real time impact in what is happening around the country with covid >> we have seen really strong growth and performance in the u.s. over the last two or three months as the reopenings took hold once vaccination rates hit a strong number. and our business is correlated with mobility. as long as there is no lockdowns, people are moving around the country, they're gagate i dating and that's good for our business we saw it in the uk, same thing
happened there, we're seeing it in europe now as their vaccination rates get higher and people are moving about and traveling and vacationing. so it is really healthy for our business and some of the asian markets are a little farther behind, some are strugglingmore with vaccinations but as all these companies come up on vaccines, that's good for those societies and business as well i'm really optimistic as we make the turn here. >> i get the growth numbers that you mentioned. and the way that reopening helps dating and interactions. but what about the overall level of engagement on the app that leads up to potential date is that fallen as people have been able to go out and meet in person sooner rather than during the pandemic, i guess, having to channel more online. >> it hasn't our engagement is stronger than it was before the pandemic if you look at even compared to a year ago engagement in our tinder brand is up double digits people are engaging with products
they are going out more in real life, but using the products as well a lot of customers are using the products to have a video date before they go out or interact with people online before they go meet them in real life. we modified our product offerings to take into account the different behavior that you'll have now than you did prepandemic. all aspects of our products are working to get people on better dates. the reopenings are going to give us further tailwinds. >> you mentioned tinder, a number of other brands, i'm curious if you're seeing this performance you're speaking of generally across the brands, okay cupid, plenty of fish, and how you differentiate it what makes them different? used to be about if you were seeking a long-term relationship, you go on one versus a hookup, how does that work >> first of all, you knead to have different types of apps for different types of people. people like to use different ones depending on the community and the features that the different dating apps have
people use three or four at a time to see which ones help them be more successful so we call that multiuse and that's a very common phenomenon dating that's why we offer a broad portfolio. and if you look at our hinge app, it is becoming another crown jewel in our portfolio the growth there was 150% in the quarter. and we're just getting started with that app. it is only in english speaking markets. so we think there is a lot of growth potential at hinge and other brands doing well, not just tinder, hinge, match has been performing extremely well with innovate of marketing campaigns and the whole portfolio was strong in q2 >> gary swidler, good to see you, thank you for joining us. >> thank you still ahead, much more reaction to lyft's big jump in active riders. those shares are moving higher as much as 6% initially, but still popping off the back of 6% again. there we go. 6.3% we'll joined by an analyst who
covers lyft. and also uber as well, to have a look forward to their results. later, columbia sports wear ceo and whether he's passing along higher shipping and commodity costs to consumers nus.e back in just a couple of mite at pnc bank, we believe in the power of the watch out. that's why we created low cash mode, the financial watch out that gives you the options and extra time needed to help you avoid an overdraft fee. it's one way we're making a difference. low cash mode on virtual wallet from pnc bank. two out of three guys experience
> lyft's earnings call just getting under way. shares moving higher following earnings just moments ago. the company reported a smaller than expected loss and a beat on revenue. with active riders topping estimates. it is also reached adjusted ebitda profitability during the quarter. let's bring in bernie mcturnen for more on the numbers. it is that moment, that ajdjuste
ebitda arrived earlier than you expected >> the company was guiding to reaching that point next quarter, so came in earlier than expected this is driven by strong revenue beats. they beat consensus revenue by 10%. upper end of the guide, up 26% and it was a volume beat with more riders coming back to the platform so on the earnings call, we're looking forward to how 3q revenue and guidance is, but how supply and demand is trending on the platform and the earnings release, they did mention record earnings for drivers in the second quarter, that continued into july what that tells us is there is supply and demand in balance we'll be looking to maybe a catalyst to drive more supply to the platform and more drivers to the platform >> what are you thinking at the
moment for their positioning and in terms of that pure focus still on ride hailing and in the u.s. only? would you like to see them branch out a little bit? >> well, i don't think we'll see the company do that necessarily. the company speaks about $1 trillion market opportunity in personal transportation, they think that's going to move from ownership to service over time and it will benefit them we're bullish on uber and doordash because of delivery we think the pandemic share gains from delivery are here to stay and that's going to drive more value for that company -- those companies going forward. and a focus on the uber earnings call tomorrow night. especially after the big beat they had last quarter. they beat on bookings by 10%, same with doordash. >> is the profitability sustainable? this is the reopening quarter. >> yeah, no, look, the company said they were going to hit ebitda profitability in the 3q and keep going forward from
there. like some of the other companies that we cover, like airbnb, they used the pandemic as an opportunity to right size their cost structure so that as demand returns, the incremental margins on this business should be really high. and so, yeah, we expect them to be ebitda profitable next year and good to see them get their quarter early. >> does gains like this for lyft mean gains for uber or is it bad new for uber >> well, we have seen from third party data is that the -- that 70/30 split in the u.s. between uber and lyft that was there prepandemic is there as we're exiting out of the pandemic as well so it tells us the market is growing and there is more people joining the platform don't forget surge pricing is helping to an extent too but i think this is good for both players i think this is supportive for uber as well as they report tomorrow >> so what about the driver shortage, which you alluded to
how severe is it and what is that competition like between the two? >> what the results tell us is that there is still -- more riders are coming to the platform, they're still below that 1 billion mark in revenue so interesting to see when they're able to get back to that -- the quarterly revenue market of a billion dollars, which is where they were prepandemic. but i think that one of the things they want to highlight is that the earnings, the drivers can generate so, again, talking about record earnings in the second quarter, on the last call they're talking about drivers earning $30 to $40 per hour those are well above minimum wage they're using -- demand is coming back to the system a lot more quickly and then supply is slower so what they called out on the last call, they want more people to be vaccinated, that will help supply and the unemployment federal unemployment benefits coming off as well should ultimately help supply too
those -- we're -- we already had the vaccines help a lot. and now we're waiting a month from now for that second leg of the supply to get the tailwinds. >> it is up 7% 7. 2% after hours. does it get rerated because of this new found profitability coming earlier >> we're expecting it a quarter early. if you look over the last three months, lyft is about flat while significantly outperforming uber by 20 percentage points. that's one reason why we have a preference to uber, it has been an underperformer recently and also too you have the delivery optional ty which we think will be sticky as we're coming out of the pandemic >> thank you for joining us. lift popping now 7.5% after hours for needham. time for cnbc news update with rahel solomon >> here's what's happening at this hour. president biden is expected to announce new moratorium on
evictions. that's according to a source, targeted to areas that experienced high levels of infection. unclear how it will stand up to opposition on the supreme court. the ncaa has not lived up to its own standards on gender equity and inclusion that's one conclusion of an investigation of ncaa championship events, paid pfor y the group. the report says the men and women's final four basketball games be held at the same site and schools should be offered financial incentives to improve their women's basketball programs. big 12 and pac-12 have held talks about working together or even merging the associated press reporting that the heads of the two conferences met to discuss a possible alliance. that's after the big 12 lost two of its biggest teams to the southeastern conference. on the news the nfl is pushing to get its players vaccinated, the consequences for those who don't. tonight at 7:00 p.m. eastern back to you. >> rahel, thank you. up next, our back to school series continues with the ceo of
columbia sports wear how the delta variant has impacted customer behavior and what it might mean for the company's bottom line. "closing bell" will be right back folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride!
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you have the best pizza in town and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire columbia sports wear surging back above prepandemic levels, but the company did warn on rising ocean freight costs and
logistics constraints going forward. how will all of this impact the back to school season? the ceo tim doyle joins us now welcome back, tim. good to see you. >> thank you for asking me to join you >> you did get a lot of calls from a lot of questions from the analysts on the call today about those supply chain constraints some of the factory closures in asia around covid. how does that impact you at a time where demand for the product is booming >> yeah, that's true we're very fortunate we have 70% of our fall business in the -- either in our warehouses and in portland, or in -- on the boats coming here. so we feel good about the ability to supply our customers in our own stores for fall '21 the pricing has been a serious issue and absent the government's jumping in and doing something about the monopolistic pricing that we have seen with the carriers, we're just going to have to suck
it up. and we basically emphasized the deliveries over costs so we can make sure our retailers have our merchandise. >> what do you mean? tell us more about what is happening from pricing from the carriers and what it means in terms of how much higher costs are. >> certainly ocean carriers have contracts with shippers like ourselves with clauses in them that allow them to basically adjust the contract later and what we have seen is ocean freight container costs, which may have been prepandemic in the 2,000 to $3,000 per container coming from asia to the west coast. it is now as much as $25,000, $30,000. so the pricing is -- has been incredibly impacted and importers don't have a lot of clout here, based on the fact there is only three consortiums
of shippers that can -- that bring this merchandise to the u.s. from asia we have similar issues around the world, really. >> so does it make you reconsider where you manufacture your products? >> not really. i mean, we always talk about it being similar to making an electronic chip. you go to silicon valley to get a chip made, to get apparel footwear made you have to go to asia that's fine. this is a temporary blip in our opinion. the shipping companies are t taking advantage of the surge in demand here in the u.s. and in europe but we'll get through this but it is really going to take the government to step in and make some changes in the practices of these carriers. >> what does it mean for what the consumer is paying are you passing on these higher prices and are you seeing the ability to do that >> we can pass on some costs but in general, we're committed
to a price with our customers and there are some levers that we have, and we built all those levers, utilizing all the levers into our guidance that we gave in our call. but clearly the fundamentals of the business are really spectacularly in shape consumers are really searching out our brands and focusing on using products in the outdoors, the dampening effect is the cost of the freight to get the merchandise into those consumers' hands >> tim, what's the balance like over the most recent quarter, but the most recent couple of weeks as well with the delta variant between online and in store? >> well, you know, we don't talk about the intraquarter results, so i can tell you that there are places in the world that are closed down, again, factories in asia that are closed down some and there is countries in the
world where we do some business and some significant business where there are complete closures it is a variable activity, some markets like the u.s. and europe have a very robust e-commerce method, channel, for people to get merchandise. other places do not. so it is a bit of a mixed bag, and when we talk about our business, which is global, and carry -- covers multiple categories and merchandise, and multiple geographies, we just have to assemble all that for our investors and give them the best view we can of what we expect the future to be. and at the end of the day, the fundamentals of the business are spectacular. people want to go outdoors, it the best place to be active with your family the safest place and consumers are definitely taking advantage of that. >> yeah, just going to ask about the demand side of things and what you're seeing as far as how long this could last
i think you were caught off guard by how long a fiscal stimulus would continue to propel consumer spending, which was why the results were better than expected. what do you see for back to school and into holiday as far as how long it can last? >> yeah, well, it is -- the expectations on the constraint on shipping capacity is going to be at at least through chinese new year which is at the middle of first quarter next year but in terms of the demand, this is a really unusual time where typically we'd be talking about back to school meaning elementary school, middle school, high school kids going back to school but now we have the confluence of those kids going back to school, colleges reopening, and then work reopening. so this could really be something special in terms of the demand side of the business. which is already quite strong. >> tim doyle, thank you for joining us with a snapshot on
sports wear. our back to school week continues tomorrow when we're joined by target chairman and ceo brian cornell here on "the closing bell." we just heard from lyft and now investors are gearing up for uber how do the drivers weigh on the result and you may have seen a familiar face if you tuned into jeopardy, but if you miss it you have all week to catch our david faber. one fan writing on twitter, he has a kind face. another saying he's the stuff yodoms are made of as a jeopardy ho u n't want to miss it. "the closing bell" will be right back
i get that too and mine has 5g included. impressive. impressive is saving four hundred bucks a year. four bucks? that's tough to beat. relax people, my wireless is crushing it. okay, that's because you all have xfinity mobile. it's wireless so good, it keeps one upping itself. an aup date on a story we're following closely. elon moy has detailed. >> well sara i can confirm according to a source familiar that the biden administration does plan to issue a new eviction moratorium after some pressure from within his own party, that is expected to come from the cdc it would last for 60 days through october 3rd. and it would target counties
that have been particularly hard hit by the covid crisis. that would cover about 80% of the counties or 90% of the population now the biden administration had been concerned that it didn't have the legal authority to extend the moratorium. biden was just speaking to reporters and said that he asked the cdc to look at some alternative options and that some sort of decision should be announced within the next hour or two and guys, on a separate note, president biden weighs in on the scandal surrounding andrew kooum and he did call on governor cuomo to resign. >> added that he hasn't spoken to him directly. thank you so much for that. looking ahead to tomorrow, more earnings on deck. gm, cvs, craft heinz and roku, uber, plenty on deck reporting tomorrow but particularly of note following that lyft performance after hours. so we'll start tomorrow with brian cornell, 3:00 p.m. eastern
time targets you don't want to miss that. but also coming up tomorrow, the ceo of cvs, following the company's earnings report. and at 4:00 p.m. we'll hear from roku ceo anthony wood on the back of his results. action packed as always. particularly tomorrow in relation to all of those earnings and sara, kind of crazy that we have these yield moves, six month lows here in europe dragging u.s. yields down as well and a record close, albeit only just on the s&p 500. >> it is a little puzzling and it is an interesting juxtaposition because lower yields you worry about the lower economic out look and it is doomy and gloomy and then we're hearing from companies beating earnings and issuing rosie outlooks, especially retailers, consumers drive this economy we've had this tremendous back to school series on "the closing bell" and all of the ceo's are bullish and excited about what
they're seeing from the consumer, not just a reopening but a sustained cankind of recoy and that is a interesting match-up from what is going on in the bond market. >> the big decline after today's bounce is oil. oil is down 1.3% 5% on the week and even more surprising to see that big jump in bp this morning as they reported boosted their dividend as well wonder whether that is a trend that more companies will sort of follow suit on >> well s&p did close as a record high. that does it for us here on "the closing bell." have abo aut evening "fast money" coming up after this short break
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or you'll get back at least $5 in perks. live overlooking times square, this is "fast money. and i'm melissa lee. tonight's lineup tonight on "fast," we're tracking lyft and caesars both stocks on move the conference calls are under way. and plus shares of robin hood, the stock soaring 24% to close above its ipo price for the first time we'll di