carl >> always good to get tom's take thanks to you for your help during the hour. as we say on friday during earning system, not only is the eu summit over the weekend, we get congress deciding on stimulus next week along with microsoft and intel and ibm and coke let's get to sarah and the half. stocks on track for a split week the dow and s&p on track for gains. nasdaq looking at a negative week also, we've got a monster week ahead of earnings. we are all over it here on the halftime report naming names of what our traders like.

dow down about 30 points though fractional moves if you look at what's working in the trade, it's not your traditional technology and consumer names it's utilities, health care and materials. what is netflix big miss for the growth trade is this a warning shot of beloved technology darling getting too high expectation >> it might be tactically on the short term but i don't think long term. for you to see a true rotation out of growth into value, you actually need to see economic

growth and acceleration and a little bit of inflation. while we are seeing improvement in growth, we still have a long way to go. we're definitely seeing the better growth. look at retail sales, industrial production this week every week we're getting better data whether it lasts or not because of the closure is a big question mark. we are seeing better growth. what we don't have is inflation. that's what value needs to out perform growth for the time being, i think you'll continue to see growth in value as i mentioned, tactically the stocks, the tech stocks are all over bought. they are very, very crowded. 20% of the s&p is faang plus e microsoft. they account for 80% of the returns. maybe we take a breather maybe these stocks sell on the news but maybe they give you an opportunity to buy back or add to on the weakness >> djenngenerajenny, you've beeg

this expectation, do you feel vindicated here by the netflix sell off on the disappointment >> i don't think i'm quite in the position to be vinds indicated but i'm hopeful that the theme picks up and continues. what i've been thinking of in terms of expectations is they are handful of companies out there where the expectations it's like a frog and princess. they move into a castle and live happily ever haafter. the rest of the market, my portfolio, there's a lot out there where the expectations are if they have been put out for the garbage, taken away and about to be incinerated. as we get earnings, i'm pretty excited to see those that have been thrown out be able to tell their stories. show life, show they have growth show they have a future. show they are producing earnings and real cash flows. i think it will be an

interesting earning season i think netflix was telling today where they had good growth but it wasn't good enough based on expectations. expectations are too high for a lot of the megacap tech companies. >> courtney, what are you seeing from institutional clients on the tech trade and is this week the start of something bigger and longer >> what is kind of interesting is at luke capital where we cover institutional investors, we're seeing folks trimming from a lot to have big tech names and using as an atm. not because they don't believe tech, as i think it's become a staple, not because of that or they think these companies aren't going to do well. they are actually doing it because they have to reallocate.

>> are you doing that? do you agree with that >> no. my personal portfolio, i don't have to trim from names i love like a facebook, there's no way to sell it right now considering the only alternative is a google i would keep it as long as i could or other names in the tech sector that i do like now. i am not trimming from those names. >> to emphasize exactly what you said just, 1%. 1% most of us are happy to get a positive 1%.

we're not real thrilled about losing 1%. i think this is pause more than anything else. i'm not over looking the fact that the stock is still down 6% or more that said they might add 5 million or 2.5 million net subs i'm one of the guys licking his wounds after netflix i'm still looking for upside here yesterday when i spoke with a couple of be writers on cnbc about netflix and how tough this quarter is, we thought that this

might be the break out this could be the first time they break that fever they they normally get in the second quarter. own micro soft, apple. i think tech is just fine. 1% shouldn't scare people. >> why did you sell in the last few weeks? has that been over done? >> first, it's up 64% from the march low. that's number one. these advertisers pilling out is going to be a bigger deal than most people think and at the very least, it will cap the multiple they're going to have to spend a tremendous amount of money trying to fix this and figure it out. you're not going to get the operating leverage like we have been seeing over the last couple

of quarters. i took some mup ooney off the te i was buying it in march and april and may. i feel like i made my money. there's better places i could put my money >> by the way, netflix is still up like 60% or so for the year jenny, i feel like you're the closest one to getting into the value over growth, at least that's what your portfolio reflects and that's what you're talk about with expectation. the one question for people expecting value to continue the out performance as they have been so many times and there's been so many head fakes is if that's the case right now, why isn't the bond market backing that up. you don't don't get that rosy picture. >> i think this is where perhaps the said intervention has disjointed markets

>> i'm in the sure that we can use the bond market as an i understand indica-- indicator i do think the gap is so incredibly wide. it's one of the widest historic points it's ever been at growth was up about 15% on the year value is down about 15% on the year that spread needs to narrow because there's not that wide a divergence in the overall market between what the companies on each side of that have to offer in terms of future cash flow generation, future revenue generation i think i don't want to look at the bond market now. >> i don't want the look at the bond market either i was going to say -- i just

don't want to look at it i'm all about stocks i think it's appropriatearbell we talked about this a lot on the show. there's pockets that's not been fit frd this reflation and the bond market and the fed doing their thing. i still think you want to own a combination of both. >> well, industrials are the best performing sector on the week still down almost 12 for the year let's talk housing more strength here as builders ramp up production despite the pandemic june housing starts jumping 17% from may

courtney, you've been adding to toll brothers. this is clearly a positive spot. resaw new housing doing better than what we thought when you think about the trend, when you think about why i purchased toll brothers at the end of june and add it again when i was on the show on the 1st. i said work from home is here to state. rates are at record lows you look at what millennials are doing, and this bodes well for millennials to buy homes and moving out into the suburban world but when you think about the lowe's, home depots,

millennials are out spending the generations prior when you think about doing more with your home that you have and refurbishing the new homes that you might be buying >> stephanie, i know you're exposed here in a few names. the one question i have on housing is the data looks good the 30-year fixed mortgage rate dropping below 3%. how long can this continue if we are seeing double digit employment in this country with even the optimists saying it will take years for that to come down >> i think it will be very important in the next couple of weeks that congress passes a new plan plan 4.0 in terms of fiscal package because they -- consumers do need help there's no question.

the consumer continues to spend. that's a huge number the retail sales numbers keep continuing to improve. confidences is quite high and inflation is really low. the macro is okay for the consumer they do need some help mortgage apps are up refinancing up 12% you mentioned the 30-year. this is very compelling. the problem is the home builders, they don't have enough supply i think you still want to own some of these names. dr horton is the one i own it's trading 11 times. they are seeing market share growth and they are seeing an improvement in in orders from this year to next year they still don't have enough product out there to sell.

>> we should mention in the positive string of data points, home builders confidence is at the highest level since before the pandemic >> yeah and why not? so many people are seeking locations outside of where they are right now. a lot of new yorkers going up to connecticut and points elsewhere where won't be quite the density that they had in new york city it's not just new york city. i say take a look at fastenal. this is one that supplies all manner of things for construction i think it's up a little over 2% today. i think that one continues to perform well given the sub 3% mortgage you talk about drawing so many more people into new or

rehabbed construction. >> on the rehab play, home depot continues to be a big winner it's leading the dow today it's been leading for a while now. i think you're in this name. you're also in sherwin williams. do you want the do it yourself refurnishing or refurbishing >> for us we use free cash flow yield when ever we make a new investment the home builders weren't available as investments but we love this theme. we trimd our home depot position about a month and a half ago it wasn't a statement on we don't love this investment it had just grown so much that it became an oversized position. we trimmed it a bit and are thrilled to see it's going right

back to where it was we are very long we think social security a terrific way to play the home builders as well as the broader economy. >> any impact from the expiration from the stimulus benefits on the strength we is seenhousing. the bonus benefit. the mortgage forbearance will run out. are we going to see an impact here >> i think it's twofold. when i think about the positive side, i say, rents are more expensive right now than a lot of mortgages would be assuming that one, people are employed, two they they take the money they are saving and apply it towards down payments on homes when you take some of those things you can see how it is that you see improvement with home builders.

that's a big if and it's a big if around whether or not we continue to see employment numbers do better. the consumer has the ability and some comfort in being able to take some of this discretionary income that they may have and put it towards these housing start numbers that we're seeing. i'm very optimisting and confident get the fiscal stimulus to see this pandemic through that people will come out on the other end ahead >> a lot of hope for fiscal stimulus an expectation that will come because it's an election year. congress better get to work on that tlans ports on a roll up more than 6% for the week best of weekly gain since early

june you on u.p.s. and union pacific. you're intari the airlines with delta. when i think about strength and tro transports, that's a signal that the economy is looking strong. that's a v shaped recovery bet i'm not sure we're getting that this week. what's with the move >> i only want to talk about the alphabet with my 2-year-old and 3-year-old the numbers we're seeing in transports the trucking numbers you think about the shipping and about what amazon is doing they are using trucks. truckers prior to the pandemic were already very, very sparse, if you will. you saw a shortage in truckers as we continue to see the trucking companies doing better and the numbers that we're seeing coming out of the summer, you look at jb hunt, they out perform. there's a reason for that.

i think continue the see that as it relates to the trucking companies in particular. the shipping will be huge. how are you going to get that amazon package it's got to be shipped >> i wanted to get your take on uchl p.s. which hasn't been quite as strong as the group what's the expectation in earnings >> it's only up 2% year to date. it does have a 3.4% dividend yield and has a good strong balance sheet as well. i think there's two ways you play out u.p.s they have a business to consumer piece. they have a business to business piece. the business to consumer is absolutely on fire as courtney just mentioned it's not justamazon. it's u.p.s. and fedex as well. i'm not as big a fan of fedex. they have some optional issues u.p.s. will benefit from b to c improvement and eventually as you reopen and businesses can get open then they will start to

see that improvement as well it's flat on the year. the expectations are quite low this is the one i'm kind of playing. >> health care hitting new high. we've been looking at some of the big winners. >> the s&p health care sector, one of the best performing groups second to utilities it's also on pace to close at a new record dating back to the inception of the sector in 1989. it's also up about 5% in the last week. the health care spider, xlv hitting new intraday highs today for the first time since january 22nd that's a high. this tracks the big health care names like j and j, united health, merck and pfizer waters corporation is up about

1% lab core up 11% week to date and zimmer up 12%. back to you. >> thank you jenny, you own a number of these stocks including pfizer that's having a good day. my question on health care is how much is being driven by covid-19 given the fact so many of these company resources are all going there? >> our company like pfizer, zimmer, we don't think much of it is being driven by covid-19 all of these invest mented widel pre-dated covid-19 when we look at health care, we're looking at them at these companies as what's going to happen when this is all over the covid-19 and vaccine part is

flash in the pan i don't know how profitable it will be for many of them it was negative because it put on hold all the elective surge -- surgeries they thrive off of they will continue to improve but the bottom line is are thesis on health care has nothing to do with covid-19. it has to do with the fundamentals of these companies before all of this and well into the future >> jenny, what about increasing chances of a democratic sweep. is that a risk to health care names or is that no longer a thing because we're in the middle of a pandemic and we need them >> we have been thinking a lot about what the regulatory environment, if there's a lot of regulation that comes in, what that looks like. historically that would have been focused on exactly lly who said i think that both of those industries right now might have built up so much good will that if there's a lot of regulation coming, they are not the ones that will be under attack. if anything, i would be more

worried about the megacap tech companies and the focus of regulation on them in the next four years versus on health care and banking. i think it's bailed us out of something that could have been even worse than it is. >> yeah, seems to be a growing consensus. ibb, bio tech also hitting new highs. why are you still in it? >> because you can make so much money all of those calls selling calls against it which is what i've been doing. also, in onovio, that one had a significant pop today. i think it almost hit 28 27, 28 today i own both of those. like you say, gilead, i think

they are very solid. i think that the potential for the drugs like remdisivir and others have pushed up the premiums that you collect for being somebody that owns the stock and sells those. that's why i continue to own gild >> let's hit software. it's been a tough week the igb etf tracks the group having its worse week since back in march josh >> that's the etf that tracks the cloud stocks it's down about 6% this week it's on track for its worst week since mid march and set to snap a four-week winning streak

granted this comes after a monster run. that etf is still up 770% from its march lows the surge is up to two broad reasons. one, business appeared better than expected and more of a structural change meaning we relay on these cloud services more than ever as we work, learn and play at home now da davidson's raises an important question here. he wonders given the pandemic and economic turbulence whether cloud companies will be able to close new business in the back half of the year before this virus struck despite that complicated backdrop and the big run, there are still smart places to commit capital here his top picks, twilio and zoom which offers a reliable product that will remain in strong demand back to you. >> josh, lip ton, thank you very much steph, you have been adding to sales force.

we know microsoft will be out next week. sales force down 7% week to date to me, this is a group that was embl emblematic of the trade we were in the the market. the names were being rerated based on the fact these trends are forecast to stay for a while. what do you do with thee cloud names now and what do you make of the weakness? >> i've been adding to sales force, i've been trimming amazon and i took that money and put it into sales force because it has lagged the cloud names it's only up 14% year to date. that's a lot less than some of its peers. they reported about a month ago and a pretty darn good number and they guided to operating free cash flow of 16 to 17%. in realtime online demand was up about right in line as expected. i think that this is one that as i talk about total address of the market, the sass cloud segment within cloud, it could

be a trillion dollar end market by the end of the decade i want to be part of that. i want to be in part of the leadership of this company and they are at the fore front of technology and still have a ton, a ton of room nternationally t grow and expand and gain market shares this is the one i've been buying and kind of a laggard. trades at price to sales at eight times. that's just a comparison, if you will >> hasn't been as hot for sure as zoom or crowd strike or some of these hours ibm, coca-cola, tesla, microsoft and more we'll get you ready. we're back in two minutes. dow down1 in 1pots

hey! lily from at&t here. with some helpful tips. tip #1: you can currently get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones. second tip: you can put googly eyes on your stuff to keep yourself company. uh for example, that's heraldo. he's my best friend. oh, sorry nancy, i forgot you were there. get the amazing iphone 11 for half-off on at&t, america's fastest network for iphones.

simon pagenaud takes the lead at the indy 500! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports.

big week of everyonings. 73 s&p 500 companies eight dow components set to report it's going to be an earning season like no other what sort of metric are we watching in the absence of guidance and clarity and visibility >> i don't think we are watching for metrics that much. i think like q1, i think q2 will be fairly ir relevant. i think it's all about macro commentary and forward guidance. with ibm, this thing is so

cheap, it's turning at ten times earnings with a 5.25% dividend yield. all they need to do is not screw up the stock could be in really good shape all they really need to do is show there's life left in them and the world is getting better and their business is getting better and we could see a positive response from the company after they report earnings. pepsi is the stay at home trade. coke is the reopening trade. what are the expectations going in >> i think the expectations are incredibly low that's why coke is trading where it is. you probably fwhknow better than anyone else.

you don't get to see coke down this much. i think it's an opportunity to get into this name i do have concerns about the restaurants and reopening but i do believe also that same stay at home trade that pepsi is getting the benefit of, the market is not getting to coke and that is an opportunity for people to get in i do hold it as a balance to some of the other tech names that i am over weighed in. >> the risk that people have been looking at around coke and why i say it's more of a reopening trade is because 50% of their business is restaurants and stadiums and a way from home where pepsi has the snacks business which we saw from earnings on monday was working quite well coke is nuch more exposed to the global recovery.

are you making a bet the rest of the world will recover faster than the u.s. if we're continuing with this case spikes >> i think the impact will have a much, much greater impact. we are seeing in europe things coming back to some sense of normal normalcy i don't know if we get back to normal is. you're seeing a reopening at a much faster pace where as we're regressing a bit here in the united states. you'll see coke pick that up to see that name down, i think it's around 20%, 23% year to date is almost unheard of.

>> i want to it that with you john the stock is up almost 30% years to date. like the nasdaq and the growth trade it's been lit this week. >> the tech name vs been soft this week. cnbc put out an article about their streaming, gaming platform that they will be launching in september. cloud play, obviously continuin subscription revenue that reoccurring revenue stream similar to adobe they are continuing to exploit

link linkedin in a bigger and bigger way. especially with us stuck at home or away from the office. i think sandler piper has the optimistic target. they have one target around $200 the other target is north of 225. i'm with them on that. >> what about tesla? are you seeing any unusual activity ahead of earnings it might always be unusual activity for tesla what are you seeing? >> it's a perpetual unusual activity whether it's elon's tweets or surprise everybody by producing 10,000 or 20,000 more cars than was expected

i think this one has had a lot of upside speculation and obviously, to go from 1,000 to 1500 like that, which it has, obviously that brief little shot on the possible inclusion into the s&p that took it up to almost 1800, i think you might have tired out a lot of the bulls in this one. i can't imagine any news they would give us that will justify what it's done in the last 30 days >> you're buying hand over fist at 1500, right >> right it's my favorite holding i'm joking >> i don't blame you >> twitter is reporting next

week you own it it's part of the narrative now what's your expectation? >> it is part of the narrative i think a lot of it is noise i think the bigger issue is they have to get their technology fixed. they have to get their monetization tools up to speed this is an election play i think it's trading at a discount and it's over done sdplp are we going to see the pause for the big firms in their social media spend show up

>> i think you'll see it across the board. i don't think it will be twitter specific all of them have different issues they are hunkering down and are hunkering down for a good reason i think twitter offers you a catalyst in the fall and it's trading for a discount than a lot of its peers >> let's get the news headlines now with sue after robust earnings discussion. sue, over to you >> thanks so much. appreciate it. here is what's happening in this hour in an attempt to ape vovoid contradicting donald trump, the pentagon will release a list of flags that are allowed to be displayed and the list will not include the confederate flag effectively banning it without directly referring to it

in an indication of the strength of the democratic party's liberal wing, 16 term u.s. representative elliot engel has been defeated in a new york primary election by former middle school principal jamal brown. elbow bumps replace the usual handshakes and hugs as european leaders gather together for the first time since the pandemic began. they will be debating a budget and virus recovery fund. 14-year-old princess leonor reminded her father to put his mask back on after he delivered a speak on nhonoring spain's covid victims. a little bit of a tender moment there. that's the news update back to you. >> all right thank you. next, jon will bring you his new unusual activity trade but first, a check on the s&p sectors right now. as you can see, real strength in

utility, health care and real estate today weakness across energy, communication and discretionary and a reminder you can watch or listen to us live on the go on lfmes ckft aho hati iba aer srt break. experience the joy of a bigger world in a highly-connected lexus vehicle at the golden opportunity sales event. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer. find a stock basedtech. on your interests experience amazing or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

it's like walking into the chocolate factory and you won a golden ticket. all of these are face masks. this looks like a bottle of vodka. but when we first got these, we were like whoa! [laughing] my three-year-old, when we get a box delivered, screams

"mommy's work!" mommy's work. with this pandemic, safety is even more important to make sure we go home safe every single day. welcome back to halftime jon is spotting big options and shares of comscope that stock is down 40% this year what are you seeing? >> there's some rampant speculation in this one today because it had about 8700 calls at the august 10 strike going off like bang, bang, bang. during the show that's moved up

over 30,000 of those there is just a feeding frenzy in this one. i'll watch those earnings the sixth of august. i'll probably be in this one most of three week second trade, ntnx much shorter expiration. the 21 strike calls. those were bought for about 70 cents. i'll be in those most of the next five days, i think. >> got it. john, thank you. we have seen of lot of your questions. go to cnbc.com/halftime. don't miss the premiere of an all new "american greed. that's monday, july 20th, 10:00 p.m. eastern time. halftime back after a quick break. pop the hood for us? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires?

oh yes. can you change the color inside the car? oh sure. how about blue? that's more cyan but. jump in the back seat, jim. act like my kids. how much longer? -exactly how they sound. it's got massaging seats too, right? oh yeahhhhh. -oh yeahhhhh. visit the mercedes-benz summer event or shop online at participating dealers. get 0% apr financing up to 36 months on select new and certified pre-owned models. ♪ ♪ now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at shopsmall.com.

simon pagenaud takes the lead at the indy 500! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports.

welcome back traders are now answering your questions. first question for jon from anita in pittsburgh. i've trimmed about 20% of twilio should i sell the remainder or hold this has been a big winner what do you do >> it's been a huge winner i think wells fargo just moved the price target up yesterday to 250, sarah i wouldn't mind holding onto it but she's got such a big winner here i think maybe you just take the rest, either that or aggressively ri aggressively write calls >> next up, stephanie, dan in connecticut had a question on target should i buy, hold or sell it's down about 5% for the year

which is a lot better than many of the other retailers should have been benefitted from being essential and being open what do you do with the stock? >> i still like it i would own it i think you can buy it they have been hurt. they are aggressively spending on digital to improve their assortment as well and i think all of these initiatives will lead to better market share for the company. trades at a discount to costco a discount to costco and walmart and you get a nice yield while you wait for the recovery. i think the management is doing a super job. >> do you like it better than costco i know it's one of your faves. >> really hard question to answer because costco is like a bellwether it's a compoundser, as we call it the problem is, it's got a great moat it's trading at five times forward estimate

this is tra target is trading at a lot less. it's not cheap but it's a lot cheaper. i think you can own both i really do. >> bob in florida wants a general opinion on kkr courtney, you own it it's also had had a monster run over the last few months >> yeah. i think it has a 52-week high on wednesday. your basing it on what the market thinks about kkr, i think they think it's a pretty great company. i do, too. i also like the industry what i've talked about for a while now. i own kkr and blackstone i love alternative asset managers the way they are flowing, it's into passive funds, rightly or wrongly and balancing that with trying to garner, returns out of a hornet of portfolios and kkr and black stone are two of the most pristine firms on the street now i think that when you look at the leadership team, how they are able to execute, they do a

phenomenal job kkr is a company that i will own for a while. i was able to get in at some of the lows in march and i owned it prior to that. i continue to really hold those names as my exposures to financials continue to grow as well >> up more than 45% in just three months jenny, steve has a question. steve asks, why grandson just graduated from high school and i'd like to buy stock for him. any recommendations? good question. >> i sure do don't hate me because i'm boring on this. i think you have a wonderful opportunity to teach your gra s grandson some great investing habits my recommendation would be at&t. with the 7% dividend you will be able to teach him about the value of patience, compoundsing, cash flow. you can teach him about the rule of 72. a 7% dividend return will help double his money over the next

ten years just by being patient and sticking with it at&t is a great teaching stock >> teaching tool it's time for futures outlook. gold is rising it's still sitting at its highest level since 2011 scott nation thinks its run is far from thanks its run is hardly done scott, break down the levels for us and how you're doing it >> sure. it's been on a wonderful run it's resuming its rally. zero interest rate policy is perfect for gold because it eliminates the opportunity costs from owning gold, and if there's new stimulus from the ecb, then we want to be long absent a vaccine, there is nothing to get in the way. it's not overbought yet, which is interesting the relative strength index is just about 60, partly because it's pulled back $8 from the 1817 high.

it adds to a winner we had on july 1st adding to a winner can be really lucrative. what i want to do with gold is add to my winner by buying the august contract. 1805, letting it pull back a tiny bit from where it is now. new stock would be 1795. my target remains 1900 i know that's a long way to the upside, but that's a long-term target we're going to work our stock and our target as this continues to rally on a new trade, what is the risk if we get stopped out at that level, it's going to be a thousand dollars, and if we run it all the way to 1900, then the reward will be $195. caesar's deal approved the ceo of the company joins us next plus, final trades all stay with us

experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. lease the 2020 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer.

- (phone ringing)a phones offers - big button,ecialized phones... and volume-enhanced phones., get details on this state program. call or visit

and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit the el dorado and caesar's merger has been approved contessa brewer stands by with the el dorado ceo. >> thank you for that. tom ring joins me now, the ceo of eldorado and soon to be the ceo of this newly combined

company which will be the largest in the nation with combined properties. tom, the final word that you needed when does the deal close >> thank you, contessa, and thank you for having me. the deal should close early next week we're shooting for monday. >> when it closes, you're still in the middle of a massive headwind in terms of coronavirus, but yet what you've seen and what we've seen disclosed because of these applications to gaming regulators is that the regulators have improved their margins by wide, wide profit margins. can you explain why and what the stock is with coronavirus? >> obviously it's been quite a puzzle to solve in terms of coronavirus at the public level and the operating level.

thankfully for us, our regional customers have come back strongly we have limitations on what we can offer in terms of capacity and non-gaming offerings but a lot of what is taken off the floor, things like buffets, full-service restaurants, low limit table games are typically low margin so what's left is the highest margin piece of the business, and you see that running through the numbers that we have reported on both sides of this transaction up to and including june 30th where even with revenue in some regional markets off some, a lot of regional markets are seeing revenue that's comparable, if not higher, and as you said, margins are much, much stronger, so cash flow has been growing nicely on a year-over-year basis in the regional markets

>> if the extra unemployment money ends, if stimulus ends, if we're seeing states closing back down as they have begun to do, is that a risk to this recovery? >> that's certainly a risk to any consumer-facing business what i would tell you, in our business given the capacity limitations, you're typically marketing to your highest value customers when capacity is limited, and those for us tend to be customers that are not affected by unemployment, thankfully >> tell me about sports betting. caesar's has really worked hard to position itself in sports betting. eldorado has not been as focused on that. how do you see the importance of sports gambling and online gambling moving forward? >> that's a key piece of the growth story here. we have, on a combined basis, a

similar business to, say, a draft kings or a penn barstool combination in this much larger company. we have a partnership with william hill as our sports betting operators where they operate our books and we split the profits. they'll move into that position with caesar's books. caesar's brings an extraordinary portfolio of sports partnerships with the nfl and espn bleacher report, among others we think putting all of that together and figuring out a way to make that investible for customers is going to be a significant driver of shareholder value for us >> tom, thank you so much for joining us right on the heels of this decision coming out of new jersey the gaming regulators cleared the way for the merger to happen mr. reeg says on monday we'll see that

thank you, tom have a good weekend. >> thank you, contessa contessa brewer, thanks for bringing us that interview it leaves us with just enough time for final trades. what are you going with today? john ajerian >> we've seen some upside in a stock that's beenexplosive during the covid shutdown, and that is peloton. so i added to peloton today. >> unum has a 6% yield, and i think when they report next weekend on the 29th, we'll see that expectations are way too low. >> courtney? >> i'm going with uber, but not for the normal reasons that you think about. people have been running away from it due to the pandemic, and what uber has done is remained creative i'm really excited about the trucking venture they got into,

and they made another acquisition with an energy-based company to really kind of tap their toes into the public transit space. i'm excited about uber's creativity despite the unfortunate circumstances around the pandemic >> and lack of profitability as well stephanie link, what is your -- i was going to say last chance trade. final trade. wrong show >> deere for market share growth >> all right, stephanie link, thank you very much. see you on "closing bell." "the exchange" starts right now. we will certainly see you on "closing bell," sara, looking forward to that. right now i'm robert frost in for kelly evans. ramping up its china rhetoric and blaming several u.s. companies for being part of the