tv Closing Bell CNBC March 31, 2021 3:00pm-5:00pm EDT
time will tell on that one time will also tell on the markets today. look at the industrials, they are basically flat but there is action, look there 3986, 14 points away from 4000 for the s&p 500 at an all-time high. courtney great to be with you. thanks for watching "power lunch," everybody. "closing bell starts now." >> welcome it's the finding trading hour of the trading day, month and the first quarter and stocks are looking to go out with a bang. the major averages are high, the s&p hit a record and the nasdaq outperforming up around 2% as we stand. let's have a look at what's driving the action investors anxiously awaiting president biden's speech on in infrastructure spending said to kick there next hour, we'll take you there live and discuss how rising taxes factor in as well tech shares are leading the charge the faang stocks in the green, tesla up 4%, apple a decent
boost and data front private payroll expanded at the fastest pace since september up $517,000, attention turns to the jobs report on friday, 59 minutes left of the session, green across the screen and the dow just joining the green party moments ago, sara. >> thank you big show today a chorus of business leaders are speaking out on cnbc against georgia's new voting laws. we heard it from statements and seen it on tv and you'll hear from governor brian kemp, a first on cnbc interview, his response to the corporate backlash coming this up hour plus restaurants in the reopening, danny meyer will talk about the big changes in the restaurant industry that are likely to last beyond the pandemic, and what demand looks like as the country has started to reopen. we begin with some breaking news, we are just getting in on
microsoft. josh lipton with the details >> this is big news on microsoft, the pentagon is announcing that microsoft has won a contract to build more than 120,000 hololens augmented reality headsets for the u.s. army, worth up to $22 billion over ten years microsoft spokesperson telling cnbc the standard issue hololens, cost about $3,500, allows people to see holograms oversee their real environment it has found use in the commercial sector from companies like lockheed martin and airbus. interesting to see how microsoft has been winning and securing these military contracts you all remember a few years ago they secured that nearly $500 million contract with the u.s. army for headsets based on this same hololens technology of course they won that $10 billion cloud computing contract with the defense department.
they beat out amazon, tied up in courts and now we have another one here, the pentagon saying microsoft has won this contract to build 120,000 holohence ar headsets worth 22 billion over ten years. back to you all. >> josh, we're seeing a reaction in the stock i have a quick question. up 2.6%, josh, so who are the big competitors when it comes to some of the technology players i remember they fought amazon so hard for that cloud contract and amazon i think challenged it, right, in court? is that who their top competitor is when it comes to these kind of deals >> so that cloud computing contract jedi was worth up to $10 billion, they're fighting over that with amazon in federal court. when you talk about competitors, why does this matter to investors? it matters because a lot of techt technologists and a lot of big tech companies do believe that ar and vr is the next big
important platform they see that as the platform to watch post smartphone, post pc, why you see somany big tech companies putting so much money, time and effort, from apple to google in this, and now satya nadella coming out and shooting and scoring with this new contract one wrinkle to watch, how do microsoft employees feel about this we have seen some pushback in the past, some tech employees including microsoft employees have said they're not always comfortable working with american military with american war fighters, though satya nadella told the press that is a role his company will keep playing, keep supplying technology to democratically elected governments. >> it's taken microsoft's gains for the day up to 3% higher and the nasdaq composite above 2% as we speak and not the only tech stock high today tech is the best performing tech sector and tesla and other ev related stocks are popping ahead
of president biden's new infrastructure plan rolled out later today included in the more than $2 trillion plan is a $174 billion investment to help with the development and adoption of evs. one initiative includes establishing grant and incentive programs to help state and local governments as well as the private sector to build a national network of 500,000 ev chargers by 2030 for more on what this means for the future of ev stocks, adam jonas from morgan stanley. good to see you. thanks for joining us. >> thanks for having us. >> more than expected or what you are expecting and is this game-changing for the industry or just incrementally positive >> wilfred, it's a start, okay i think today the significance is we have the beginning of a national policy in the united states that can support renewable transportation, frankly. that's probably the most important thing. 174 billion, you know that, could buy a couple dozen, maybe 30, 40 giga factories to make
batteries. it's just a drop in the bucket wake me up at a couple trill we might need a couple trill just for evs over the next decade so it's a start, but there's a lot of unanswered questions from here. it gets gritty it gets dirty. we have questions about grid integrity, storage, affordability, right, how we pay for this stuff you throw in a me quagga watt in back of a starbucks parking lot there's a lot of devil in the details. it's a nice start. let's build from here. >> does it make sense to you, adam, the ev stocks are getting a boost off the back of this or not necessarily yet? >> in a market like this, sure, people are trading headlines, it's a different discussion. sure, right, i'd say there was a bit of a vacuum of expectations of what really could come out of this and a lot of the progress we've made in the united states on ev adoption has been in spite of not really having a cohesive
policy, and so it's all additive, will you got me but i think you know, how do we really get it done i mean, i think that those questions about gasoline tax, that clearly ain't gonna work so there's discussions about vehicle miles traveled, and we think that governments eventually are going to go after fleets and work with shared mobility fleets, final mile logistics, things like that. so it's a nice start but i think there's some risk that yes, some of the stock price moves to a knee-jerk reaction and we need to kind of be a bit more cautious about how this pans out over time. >> charge point is up 20%. they do the chargers there's always been this question, adam, about the ev future the question is consumers, right? are they not here because we don't have the infrastructure and therefore building the
infrastructure like charging stations and what the government plans to do, will bring the consumers or not because that's the missing link, which is pretty important. >> i totally agree i think it's a great point and if you look back at a lot of big innovations in the united states that had taxpayer help, first it wasn't just taxpayers. there was a lot of capitalism involved in this, too, so the united states probably has to be turned into a damned construction site and might have the biggest public/private partnership in the history of business here right in the u.s that's the kind of stuff you're going to need to bring electrification and all the problems it's going to create, you know, the esg problems along the way to really see it through. so yes you mentioned some of these names. i think interesting discussion, where there's a big blind spot it's not going to be retail like you and me that's driving the dale ta to 20% to 30% penetration. it's going to be businesses. it's going to be, you know, tech companies, i won't name specific
names that because they bring stuff to your door have an enormous impact on the environment and have a very large maybe shockingly large carbon footprint and they're in a position to benefit from that infrastructure, to leverage the taxpayer dollar and to decarbonize a lot faster than waiting for people to use a charging station does that make sense >> totally does, adam, and one of the areas i wanted to pivot on to as this expands is the economies of scale that come to the industry in the past people have seen price cuts from tesla as a threat to profitability. this is the trigger for the price cut is an incremental positive going forward >> look, we published this a few days ago before the model t came out, model t came out in 1908, the average price of a car in today's dollars was 80,000 bucks, and in today's dollars, and there were 255 automakers thereabouts in the u.s then the model t came out and boom, price of a car dropped to
25k in today's dollars, but it wasn't until the moving assembly line in 1913 that the price started on a trend 3500 bucks. so when tesla announces price cuts my email lights up, they're not profitable, they're going away it's not going to work and our message is, this is the strategy, they want to industrialize this stuff, down to the mine, and if they're doing their job the right way, they want to cut price, cut price, industrialize, do deals with governments all around the world, and try to demoralize the apples and the amazons and the others, because if tesla just sat on margin, you could paint others -- it could help profit today but isn't exactly how these industries have been formed historically. you kind of get the point? >> yes >> it's open to debate, but they have a view. they think that they got, they
have a path to commercialization and taking the price point down to ridiculous levels and don't want to sit and wait for someone else to do that. they want to do that first while they have the seven-year lead or whatever it is >> so where is the opportunity for investors, adam? which stock is the way to go do you go with an old school player like gm or ford which are really starting to takeoff on these ev plans or the infrastructure players which ones zwrur' talking to the past, i'm like the horse and buggy guy looking into the 19th century. amongst my coverage you got to be selective i have a few compounders, tesla, carvana, aptv, the compounder category general motors we think they recognize, look what they did. they announced, they led the world on announcing the decommissioning and ending of
ice. the stock market is telling them do it. they know gm knows their chance, there may be some exceptions but are they investing gm if 90, 95% of gm's products are ice, no they want to skate to where the top is going it's a bet on the ceo and management team and the board breathing in that urgency and doing something about it any day we'll be on your program and judge not by one quarter, or the sa rp that doesn't get gm to 100, 150, it's major strategic change and that's what we're betting on if it doesn't happen it ain't going to work in our opinion >> adam jonas, good to talk to you. >> take care, be well. god bless. >> you, too. we are getting some breaking news right now, more on treasury secretary janet yellen
steve liesman with the details steve? >> thank you janet yellen in her initial role as the chair of the financial stability oversight council have an aggressive agenda, more needs to be done to address the vulnerables and as the vulnerabilities became clear with the crisis the pandemic and how markets react she's reestablishing the hedge fund working group allowed to lapse under treasury secretary ma miu chin, wants to reveal hedge funds amplify stresses on the financial system fsoc looks at vulnerabilities from non-bank financial companies as well, open-ended mutual funds which offer investments she said her concern with greater liquidity an underlying assets add to the money market funds as well, review disruption of the treasury market last spring, he
yellen saying climate change poses tremendous risk answer cyber security, the growing role of digital assets to the financial system as you might have expected they meet quarterly, may begin meeting more often at the fsoc with janet yellen laying out on aggressive agenda for the group. >> a lot of priorities like climate. steve, thank you >> pleasure. up next, a gamble on sports t tv we'll talk to the ceo of sinclair broadcast group and bally's sports network the latest move toward a closer marriage of sports, tv and gaming you're watching "closing bell" on cnbc. the dow is up 13 points.
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welcome back some sports fans will notice a new brand on their tvs today sinclair naming its regional fox sports networks as bally sports. the media companies continue to get into the betting game. sinclair acquired the 21 regional sports networks back in 2019 from disney in a deal valued at more than $10 billion. joining me is sue kim, chairman and thank you for joining us chris ripley, the new bally name, is this a sign the future growth of regional sports networks is in gambling? >> i think this is a sign when we bought the rsns a big part of our thesis is going to be the growth in sports betting and all the work that we did around
researching this point the toward extreme in young sport betting, 18 to 34-year-olds over 60% are already sports betting or interested. we ultimately think gameification broadly and specifically sports betting will be a huge new pillar of monetization for sports. >> so su, you're not alone we saw a deal between dish network and draft kings. fubo tv has plans to do something like this. how do you go is guys to plan and draw interest to your platform >> sorry about that, yeah. >> that's okay >> yes, i think that we offer something of a sort of unique proposition here
i think with their purchase of the fox regional sports nets they have the most impressive collection of local sports rights, really the most tonnage there is if you combine that with ownership of tennis channel which actually i don't know if people know this, tennis is the second most bets scored in the world. they are the ideal media partner. we bringulely the gaming footprint, we have 15 casinos across 11 states, the third most expensive regional casino for print in america and that gives us the ability to run not only have physical casino customers in states and bring that audience to this combined effort but also run the online gaming efforts in those states as well.
so we've also gone down the pathway of becoming actually a gaming technology company, so you know, unlike a lot of our peers that are sort of pure play casino gaming or physical retail gaming and/or online gaming, we're both we are actually, we have the ability with our purchases of networks, monkey knife which is a daily fantasy platform and sport collar a free-to-play gaming platform, we can offer a seamless physical gaming experience to an online gaming experience so that we can go with our customer whether they're at our casinos or at home and combine, bring those assets to this partnership with sinclair so that we could bring gaming technology and media together and we think that's truly differentiated >> chris, is there any fear that gambling addiction is going to become a problem for your viewers down the line?
>> >> of course we take responsible gambling very serious and that will be a big part of any efforts that bally's is putting forth as the regular gaming entity and the gameification that we're focused on is not really pointed at hard core gambling it's meant to create inner activity, engagement, excitement, low stakes, so it's really not what you would classically think of when you think about problem gambling >> i guess that's what everyone is sort of saying at this stage of the cycle here in the u.s., and chris, i can see you're pushing it the responsibility onto the gambling but you're fully renaming your channel. it seems to be a slightly bigger shift than elsewhere, where you might be empowering or allowing sports betting alongside what people's main past time is,
watching live sports, to be renaming your entire tv channel under a gambling brand name, as if it's a sort of 24-hour permanent casino in people's living rooms >> if i can just comment, i don't know if it's possible for me to interject? >> sure. >> go ahead. >> with bally's, it is a 100-year-old brand started in p pinball machines, applicable to casinos and gaming machines but also gyms. the way we look at bally's, it's a flexible brand that really speaks to engagement in entertainment versus participatory engagement entertainment and that's what we're trying to bring to the media. i this i in the traditional sports watching, which really the granddaddy tent poles in what is still live tv, they have
huge traditional audiences, but in the end, those audiences are being fragmented, and i think new generations are looking for something more, they're looking for what i would consider a more of i don't want to say a video game but more of an interactive and engaging audience experience, and so really what bally's stands for is that interactive engaging experience, so that when you're watching sports that you can play along with it. it actually, just so you know, and i think -- the primary focus, and not in gambling gaming but the primary focus is engaging audiences with intera interactivity. >> noted chris, i have a totally
unrelated question for you, because you do business and you have four or five networks in georgia, and it's such a hot topic on cnbc today, on "squawk box" this morning in an effort with more than 70 black executives, calling on companies to be more forceful in their direct opposition and action against the georgia voting legislation that was passed on thursday what's your position and your reaction to that call? >> well, look. you know, we don't make political positions. we report as a news organization and entertainment company. we report on the news, and we don't make it our business to engineer our own opinions. >> ever? chris, i mean, it's not something you want to put any point of view outal a at all on
a lot of other companies have done >> no, not at this time. >> okay. chris and soo, thanks so much for joining us >> thank you >> thank you 35 minutes left in the session. we've got a nice set of gains across the screen, particularly for the nasdaq up over 2%. the dow is just positive s&p getting closer to that 4k level. still to come, all day on cnbc we heard from business leaders ken frazier, ken cheno and james quincey about growing backlash against georgia's new voting laws can't be said the same from sinclair governor brian kemp will respond in a few minutes and another check on microsoft as we head to break, higher on news of a u.s. army contract for a new contract they've got, $21 billion worth we're back in a couple minutes (it's a skirt... and shorts)
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justices apointed by democrats and republicans suggested the current system is unfair to athletes french president macron is expanding lockdown measures to the entire country to combat the latest increases in new cases. the tighter restrictions include a month-long domestic travel ban and also a three-week closure of
schools and child care centers plastic prices are surging as producers are hit with a bit of a double whammy, first the texas freeze and then there was the suez canal blockage which further disrupted supplies see how shortages are already affecting prices of consumer goods, tonight on "the news with shepard smith" at 7:00 p.m. eastern. back to you, sara. >> rahel, thank you. dow is up about 20 points. after the break. >> this is a moral issue and it is absolutely critical to understand that all rights flow from voting rights >> business leaders are speaking out about georgia's new voting laws we'll get the response from georgia's governor, brian kemp in a first on cnbc interview next as we head to break a quick check on bonds yields are mostly higher today,
continuing their backup we've seen lately. the ten-year is holding above 1.73%. it's not doing a lot to derail the rally as we've seen in recent sessions. we'll be right back here on "closing bell. the nasdaq is up 2% on this final day of the quarter i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila!
s&p is up 0.75% headed into the close. dozens of black business leaders are fighting a new wave of voting rights bills. merck's ceo and former american express ceo leading that effort calling on corporate america to publicly and directly oppose the law laws, stricter voter i.d. requirements, limits the number of drop boxes available, new oversight of county election boards and bans the disbursal of food and water to people waiting in line to vote. here is ken chenault responding in part to some of the rules this morning >> this is a moral issue and it is absolutely critical to
understand that all rights flow from voting rights and all we're asking companies to do is to oppose in every jurisdiction in every state to take a public position to oppose >> business executives in georgia are speaking out, delta airlines ceo ed paston "i need to make it crystal clear that the final bill is unacceptable and does not match delta's values" and coca-cola's ceo james quincey says the legislation is a step backward listen >> this legislation is wrong and needs to be remedied and we will continue to advocate for it both in private and now even more clearly in public. >> joining us now first on cnbc, georgia governor brian kemp. thank you so much for joining
us great to have you. >> good to be here, thank you. >> you just heard from coca-cola and you saw the mem row put out by delta, two of the biggest employers taxpayers, companies in your state coming out more forcefully now against this law. what do you intend to do about that >> it would be nice if they'd point a specific in the bill they don't like, same for from chenault, this is a moral issue. his own state of new jersey they signed a bill to have nine days of early advanced voting, we happen to have 17 days in georgia and this bill that i just signed adds more opportunities for people to vote early on the weekend that's what's so frustrating a lot of the points you put up on the screen about banning water and food, that's not true. voters can bring water and food in line. people can serve and hand out bottles of water and food as
long as they're outside the 150-foot boundary of a polling location that we keep voters from being harassed and intimidated or electioneered county elections officials can still give water you just said we were taking away drop boxes. there were counties last year that didn't even have a drop box because it's never appeared in the law before this legislation mandates each have a drop box. we have 134 counties under this legislation will be offering more hours of early voting, not less, so i would encourage these ceos to look at other states that they're doing business in and compare what the real facts are to georgia and i think their focus will need to be in other places and not here. >> a lot see this as a springboard for other legislation like this happening in 42 different states and a lot
of these companies don't want it to move forward. with all due respect they are mentioning specific. ken frazier had a laundry list, he pointed to fulton county, he said is disproportionately affects black voters as you limiting the number of drop boxes in that place, just as an example. so there are specifics being mentioned as the companies are pointing to. >> i'm sure he also didn't vote out a voter can take their absentee ballot in walk in any precinct or elections office and hand that ballot off as well i'm sure he probably missed that point. the other thing about the food and water that everybody's been making such a big deal of, a lot of that happened in fulton county with people standing in line for three, four, five, six hours. why wouldn't that be unacceptable to mr. chenault it is to me and this legislation mandates the number of machines and equipment at each location has to have to shorten the line.
of course they're not talking about that because that doesn't play into the narrative that these corporate companies are being attacked from activist groups that have a financial interest in doing so >> let's focus on the details on the drop boxes and other points we'll want to discuss. overall you're requiring the drop boxes to be secure but do you acknowledge overall that you are significantly reducing the total number and number of hours they're available. my question linked to that is surely it's the first point that matters, make them sure, and then frankly make them even more available as long as they're secure >> make them secure inside an elections office when they're monitored when the offices are open the thing you're missing, back prior to this year, we haven't had drop boxes in georgia in the
law in recent memory and i'm talking about for decades now. once the public health state of emergency goes away, the drop box would have gone away with them, so had not we put this in this legislation, there would be no drop boxes anymore. people act like we're taking something away it never existed until the pandemic, it was done by emergency rule, not by legislative action, because of the problems we had of dropboxes being out there that were supposed to be secured and they weren't, that's why the legislature addressed this the way that they did and in fact, the point i made earlier, some counties didn't even have a drop box this last election and now they will. >> i wanted to go back if i may, governor, to one point that has linked with a lot of the coverage of this, which is the question of whether there was widespread voter fraud in 2020 that potentially being used as one of the grounds for this law. can you just clear up and clarify on both those points
was there any voter fraud in 2020 >> i was secretary of state for nine years and every election cycle we had every single election there was instances of some form of voter fraud, so it exists, it happens, you know, more often than not. whether it's rampant or widespread really depends on the situation, what election it is, whether it's a big national election or small. mayor's race is the duty of the secretary of state to investigate those, that's being done a lot of that won't be done until after the investigations are done but the point is that election has been certified, but there's no questions there were problems we had a 351% increase in the number of ballots by mail absentee than we had in our state, that created great problems for our county officials doing an arbitrary signature match and the way the legislature and the bill that i just signed addresses that is to use the voter i.d. requirement
where you're using numbers off of your driver's license to be able to vote absentee by mail versus your signature now which removes the arbitrary nature the licofficials said it will b more efficient for them to process t will speed up the time of the count, which is always good to give confidence to the voters, and as i mentioned, would be more efficient, and i think it will also be more secure, and the vast majority of people support the voter i.d. and in georgia for decades now, if you don't have an i.d., you can get one from free from your county elections office. >> governor, as you know, there are some real questions about your motives in passing this bill and trying to suppress votes. listen to what ken frazier said about that >> were there legislative hearings no were there fact-finding
commissions? no was there an opportunity for public comment no so there is no substantiated compelling evidence of voter fraud to justify these restrictions >> governor, if it is really to just protect the integrity of elections and to fight fraud, why did you keep it so secretive? how do you respond to some of those points he made >> well first of all, what he's saying is absolutely false he obviously hasn't been paying attention, and i have great respect for mr. frazier but obviously didn't pay attention to the process you can go back as a fine reporter and document that speaker ralston created a legislative committee to look into the election and to make suggestions to the general assembly that started before the end of last year. our legislative session started in mid-january it's finishing tonight for the last two and a half months the legislature has been
meeting. there has been hearings and public meetings and debate on this elections bill, so what he's saying is fundamentally not true, and that's the problem with a lot of this there's a lot of people that are perceiving things that are not reality and folks like mr. frazier and mr. chenault, whom i have good respect for, they don't live here, don't know the laws in georgia and quite honestly our laws north as strict as the own states they're residing perhaps they should focus in other places >> coca-cola and others live there and have many jobs in your state as you've seen no doubt today spoken out clearly against this law ultimately, if it costs georgia jobs, is that a price worth paying >> well, i'm glad to talk about delta, because we've been working with their legislative team and the coca-cola legislative team the whole time, specifically for delta, they did
not express any reservations about the final products of this bill it wasn't until a couple of days after we signed it that after the political pressure that ed bastian is now putting out a statement that quite honestly nothing he said yet is pointing to any specific points in the bill that are causing suppression or any of those things, because it doesn't exist, and you know, i understand that they have public companies and they have boards that are pressuring them, but that still doesn't change the truth and the fact that this bill expands voting access, especially on the weekends in georgia. it uses a voter i.d. which is free for abgentee ballot with mail that speeds up the process, requires county election officials to continuously tabulate to get everything counted and it's a secure accessible, fair way to do it. >> governor, they don't think so though no matter how much you say that. they've come out against it and
they're going to fight it and what we saw a few years ago with the lgbt bathroom rules, was that corporations are very powerful, and once they start threatening boycotts of the state, your state, your predecessor reversed on the rule ultimately you're going to have to deal with the corporate backlash how far are you willing to take it >> i'm glad to deal with it. i've been a small business owner for 35 years signing front of my paycheck and there's a lot of other hard-working georgians the same way if they want to have a debate about the merits and the facts of the bill we should do that. i haven't seen any point they're making that would cause me any reservation that makes that we're taking away something here and i think you'll see that in the next election. it's not going to prevent anybody from having the opportunity to vote in georgia despite what they say and if they want to debate that, we'll continue to do that. >> governor, just to round off very quickly, because i wasn't totally sure from your first
answer when i brought this topic up but do you fully respect the result of the 2020 election? >> well, as you know, this is well documented, too, the secretary of state and georgia per the law and the constitution has to certify the election. he did that. i had to authenticate that certification, which i did, and that's the final results that's why our general assembly is who it is and that's why the other elected officials here and around the country are who they are. >> governor brian kemp we thank you for your time today. >> thanks for having me on we have some breaking news on ford crossing, phil lebeau has that for us. >> wilf, shares of ford the company announcing a substantial cut in production at several of its plants here in north america. this is the list of the production cuts. we're not going to go through all of them but these are substantial. deerborn truck plant the most
popular f series pickup truck in the united states, most popular vehicle in terms of sales will be down for two weeks, april 5th and 12th, and also going to be cutting production at the kansas city assembly plant on the truck side the louisville assembly plant where they make suvs for a couple of weeks, the oakville will be down april 12th, 19th and 26th the question is, what is the bottom line in terms of this chip shortage and the impact on production and the bottom line the previous guidance from ford the chip shortage this year would have an impact of 1 to 2.5 billion in terms of cutting into profits of the company ford is not changing that guidance at this point but they make it a point in this release saying when they report q1 earnings and financial results april 28th, that's when they will update their guidance look for ford to update their guidance in terms of the chip shortage impact at that time guys, back to you. >> phil lebeau, thanks so much
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let's kick things off with the broader markets the last day of the month and the quarter, the s&p on track for a record close, the dow just tipped 2% josh you're looking at some of the market leaders today >> i really am i like that we're mixing it up a little bit the s&p had a record high, see what happens in the next eight minutes but i think this would be the 16th or 17th record closing high of 2021, and i would just repeatedly point out that all of this is happening with some of the largest most obsessed upon growth stocks in anywhere from a 10% to 15% drawdown from their peak prices, in many cases, peak prices that occurred months and months ago so if you're somebody that is relatively new to markets, just instinctively you would probably believe more stocks making new highs is better than just a few stocks and that's exactly the situation we're in you had this big cyclical rally
but here is what is interesting today. now large cap growth has entered the chat, and you take a look at the leaderboard today and you have a lot of these names that are trying very hard to bottom that have not been helping the rally so far, start to bust a move higher, and so that could be the next leg of a bull market for the overall index if you get more of that, so square up having a big day today, shopify. zoom and docusign trading in lock step, both up 3%. so these stocks have not been helping but if they start helping, look out. i think that's where the next could come from. >> interesting point barb, it raises the question of sector rotation, which has been a huge theme if you look at what's leading us to a record high it's different than last year you have energy financials and industrial as the top three performing sectors
is that where you want to stick? are you adding to physicians there or as josh was saying are you buying some of the beaten down tech names that could take us on the next leg >> well it's an interesting point. i think we'll continue to see the rotation back and forth between the value post cyclicals, explain the economic reopening. there is a consensus we're in economic reopening phase the market is a discounting mechanism. what we saw with the secular growth names getting hammered means that valuations were extreme and money had to come from somewhere and rising interest rates, compresses pes on high growth names for the money to buy into the stocks that are going to benefit in the short to medium term had to come from somewhere and typically been we've seen this every year stocks that have run up the most, get hammered, often come back i don't see secular growth names getting back to new high ts this year
they've been way oversold and starting out the next quarter you'll see a nice rebound. if you're putting money to work you can put money in this area while continuing to invest in some of the pro cyclicals, a boeing or gm with the ev story i would do first though the oversold pro growth or secular stock. >> got it. speaking of the ev story, president biden set to unveil his economic plan in a few minutes in an infrastructure overhaul is expected to be a big part of his proposal frank holland looking at which companies could benefit. >> stocks are selling on the news today companies that provide rocks for bridges, roads and wind farms like martin marietta, vaul khan and summit materials all down. an analyst said it's profit-taking and some of it is confusion about the infrastructure bill. it lays out $621 billion for inpractice structure, roads and
bridges, $174 b for ev infrastructure engineering firms jacobs should see a big boost because of the complexity of projects and cracker barrel because of its locations off highways and don't laugh but also clean bathrooms as workers travel around the country, many like to stop at a cracker barrel over to you. >> it's a great rest stop. frank holland, thank you josh, cracker barrel or any other plays related to what we'll get from president biden >> no. i'm not buying cracker barrel because of an infrastructure bill that only two-thirds of the money is going to actual infrastructure i do think these stocks needed a breather, they've been leading the market they've gone up a lot. you have stocks like u.s. steel, alcoa, not stocks accustomed to lead the market for the last 15 years. you really have to go back to '05 to see the stocks even being important in terms of their
weighting in the s&p they did need a breather and they are being discovered by a new generation of investors who for ten years have had no reason to look at them. so for that reason, i don't think the rally in the cyclical parts of the economy, the industrials and materials specifically is over, but let's acknowledge big money has been made since the election in these stocks >> bob, do you think things are priced in already on this front? >> i think in the short run they are and this is the issue. every street firm is coming out with how to play the electrification and the water. let's remember, this is going to be spent over if he does get his $2 trillion and so far he's been good in getting what he wants from congress. it's over eight years and so the priorities have to be established, all the constituencies, local, state and government have to be consulted because it will be a while before you have contracts. meanwhile the stocks are discounting that all this is going to happen. i think if you're going to play
names, cat is a play on the economic reflation around the world but also no doubt be a big beneficiary of infrastructure play but it's going to be longer term josh is right to be hesitant in naming names most are probably discounting the next five years. i'd wait for a pullback. wait for unveiling of timing or the limitation of the plan >> just under one minute left. >> there's a lot of stuff in here -- >> apologies, josh up 0.6% on the s&p, 3981, ready for a record close the dow is fractionally negative down two basis points. the nasdaq up 1.7% tech the leader and consume merp discretionary up 1.5%. energy and consumers staples
down half of 1%. we have softness in the dollar and the vix pulling back nicely 20 below 19 and the ten-year holding steady to where it was 173 or so. at the bell the dow is down 0.2 at the close, the s&p up 0.4% and enough for a record and the nasdaq composite up 1.6. the s&p still looking more into the close. >> that's a wrap on the uarter just clarifying here we did close at a record high i wanted to make sure before we said it, a record close for the s&p 500 on this final day of the month. welcome back to requesting closes bell. i'm sara eisen along with wilfred frost. a little dip into the red for the dow on the close, down 82 points there as you can see, after trading higher most of the day.
s&p 500 up 0.4% and that would make a record close. if you look at what sectors led us there, it was technology which underperformed for most of the year consumer discretionary and utility the top three performers energy lagged but energy had the best quarter overall up 29% on the year, financials right behind it up 15% there's the nasdaq it jumped 1.5% into the close, and while it's been a bumpy ride this quarter for the nasdaq, we are still higher year to date for the overall index, less than 3%. the russell 2000 also jumped 1% into the close, and has also been seeing some nice gains as we've seen this rotation into value and cyclical stocks. it's up more than 12% so far for the quarter and the year as we exit out investors are now awaiting president biden's economic proposal which could include huge spending on infrastructure and tax hikes to pay for it. we'll bring you that life as
soon as it happens in a few minutes. plus restaurant tour danny meyer on whether more people are dining out as the coronavirus vaccination rates increase you'll hear his thoughts also on policy first up, talk about the market close. josh brown is still with us, barbara doran is here, too barb, we don't have mike santoli to round it out and today is an important day. we finished the month and the quarter and it's been a bumpy one if you've been in some of the winners from last year how would you describe the action today and what we're facing >> i would say the action today is promising because i'm one of those who had to suffer through big drawdowns in the secular growth names but patient and waiting in terms of new cash coming in and where to add it and i think those are what happened today as josh pointed out earlier is very promising, we could see a rotation in the short term i think it's encouraging you had a lot of end of the quarter win dough dressing and also had over the last month big
penchant funds who are reallocating from equities to bonds and also had an impact keeping things under pressure. >> josh, i interrupted you ear earlier. tell us what you were thinking >> i forgive you i wanted to interject the point and wanted to build on something barbara said about not trying to invest based on an infrastructure bill solely it's that there's a lot going on in this infrastructure bill that has nothing to do with infrastructure and i'm not criticizing it but there's a big time progressive liberal wish list of righting wrongs in society and i'm not saying these things shouldn't happen, i'm saying they're being broadly lumped in with this "massive in infrastructure bill" but not going to boost earnings for companies traditionally focused on infrastructure. some of those things would be things like making it more possible for women with children to be in the workforce and
taking care of the poor and revamping veterans hospitals, and a lot of things that we should be doing but i'm just saying they don't filter into the bottom line of engineering companies per se so i just think that's an important reason why maybe some of these stocks have gone too far too fast based on a bill that's not seriously going to completely change the dynamic for all of them. >> but what about ev companies they rallied today off of a good chunk of that money being spent on building out the infrastructure in this country >> sara, good point. the ev stocks have been completely eviscerated the average ev stock is somewhere between 30% and 50% off its high look at neo, canooo, the chinese ones, battery ones and truck focused ones, all been slaughter when they have a big up day, understand what the context is in which they're having an up day.
it's been an massacre for any spac related and ev related. you look at a general motors how it's giving nothing back on its recent rally all of the news flow is about their ev business. nobody's getting excited about general motors for any other reason so i do think that's a really good point. ev is probably the most acute way to position yourself for spending that's going to go on with this infrastructure bill and to the earlier point that barbara made, talking about eight to ten years this is not like flicking the light switch >> josh brown, barbara doran, thank you for joining us today we appreciate it >> thank you want to get to pfizer releasing optimistic data about the effectiveness of its vaccine in kids. meg tirrell with the details >> this is pfizer's covid vaccine in kids ages 12 to 15, in a study of about 2,200 kids that age it showed to be 100%
effective in preventing disease. this was when they saw 18 cases among kids on the placebo, zero on the vaccine fairly small numbers still but very encouraging they also said the vaccine was well tolerated for this age group. they're going to move forward with filing with the fda and other regulators around the world with the hopes that this could be available for back-to-school in the fall they're also testing it in younger kids starting ages 5 to 11 last week and planning to go in ages 2 to 5 next week ultimately down to 6 months. a lot of folks hoping this will help us get closer to herd immunity and certainly help with back to school >> good news, meg, thank you as we head into a new quarter, rising rates seem to be weighing on investor sentiment, wall 47% see high interest rates the biggest threat followed by another covid wave and higher taxes.
mow head el erian, great to see you. i should mention the s&p 500 didn't quite finish at an all-time closing high after things settled moments after the close, a point or so below contrary to what we were saying moments earlier. mohammed, good to see you. are you in agreement with the order of them, which is your biggest threat to market levels at the moment? >> my biggest threat would be so combination of higher yield and a market accident. it is really impressive how well the stock market has done in the first quarter, given higher yield, all sorts of rotations in the market between stocks and bonds, three near accidents, what's been happening in europe. this is a resilient market but i would keep an eye on yields and pockets of excessive risk taking >> mohamed, i wanted to ask you about the arkagos issues
do you think there's risk of other overly leveraged long positions in the market which might be kind of flattering the levels that we've seen not necessarily more blow-ups to come but to highlight how stretched things could be perhaps to the upside? >> they could be i came on monday morning and said while this is a typical case of massive leverage, overconcentration derivative overlays, it will be contained however, there's a bigger message coming out in terms of are you worried about the stock market today, the answer is no but the underlying forces are two-lefrd. leverage is so cheap and abundant there are other pockets of excessive risk taking the question becomes do they explode at the same time so far we've been able to handle these three near accidents which
is a good thing. >> so it sounds like you're not too worried about it overall it could happen? the fed's not taking away the punch bowl any time soon >> the fed is not going to take the punch bowl any time i agree, sara, but banks may start being more cautious about the sorts of credit line they've been extending. there's a lot of embarrassment right now in certain banks how could we have allowed this family office to do what it did, and how could we have been the last one out and not even getting out, just sitting on massive billions of dollars of losses so i suspect there's a lot of banks looking very carefully right now at what else had they extended in terms of modern loans. so what may happen is not the fed takes away the punch bowl, is that the system itself becomes somewhat more mohamed,
bill if this comes together does it matter if it creates higher yields, higher inflation because it's just going to boost gdp so significantly, at least in the short term and would that likely boost equities, too? >> so it is a good thing that we are bringing a second big engine to the growth plan if you think that the u.s. economy is taking off from the pandemic, with a demand engine, and now simultaneously we're going to put in a supply engine and the good news about the supply engine to enable productivity and growth is it's much longer lasting. it is truly about bringing back a stronger and less unequal economy. that's the good news it is likely yields will continue to go up and going to disrupt the paradigm of liquidity that has been so supportive to this market but on
the whole, it's better for the long-term that we have growth underpinning equity prices rather than just liquidity >> what about inflation, mohamed? kimberly clarke, a lot of the the companies in the consumer staples, it's raising list prices for what consumers pay of diaper, of scott's toilet paper, mid to high single digits in terms of percentage increases. that's just the latest how do we know if that's transitory or temporary inflation as the fed is expecting or something more serious the inflationistas are worried about? >> they'll go much higher and stay there for more months than the fed anticipates that the fed doesn't realize two and a half things comingtogether. one, base effects and two a demand pull coming in before supply the half is what's also happening to costs
we are seeing a significant increase in costs in the pipeline so yes, inflation is going to go higher than what the fed expects. it is going to stay a little bit longer than what the fed expects and then people are going to start questioning, is the fed behind the curve, and that's the problem with the new framework, that if you are not looking at forecasts but you are waiting and waiting until you see the whites of the eyes of inflation and you're going to wait even longer, you have to slam the brakes at thatpoint. that is a risk we should keep an eye on but i do think we have significant inflation in the pipeline, sara >> well, it's good that you'll stay close to help us navigate it thank you for now. mohamed el erian of allianz. josh lipton has numbers. >> micron reporting q2 results earnings per share of 98 cents versus expectations of 95 cents.
revenue 6.24 billion, and as for guidance q3, $1.6 plus or minus seven cents versus expectations of $1.32 and revenue 7.1 billion plus or minus 200 million. the stock rallied about 20% this year and about 110% over the past 12 months back to you all. >> josh, thank you up 3% for micron restauranteur danny meyer on how funds from the latest stimulus program are helping his industry and whether he's worried about a possible corporate tax rate hike. president biden set to lay out his economic proposal plan moments from now we'll bring you that live as it begins and news crossing that endeavor group has filed to go public on the new york stock reetlso men er the symbol edr. mo dai tco i90 seconds.
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how'd you come up with all these elaborate backstories? spaces are more efficient, healthier aglad you asked. i got help from a pro. my financial professional even explained how nationwide solutions could help mr. paisley retire early. and spend more time with his pal, peyton? right? i'm glad you feel that way. first question i guess is what stage are we at in terms of number and percentage of your restaurants reopening and how optimistic are you in your mood relative to a few months ago >> i'm more optimistic than i've been for a long, long time we're in the midst of gradually
reopening our restaurants. we've opened five over the last two weeks and on one hand it feels like the beginning of baseball season, but we're in spring training because we're recruiting all new teams so many people left new york over the course of the last year, so it's exciting but it's a really good season of hope right now >> and what was part of your optimism stemming from the stimulus bill and the factors that were included in that, this time around? >> absolutely. our industry has been waiting and waiting and waiting to get some type of relief from washington and i really want to take my hat off to the independent restaurant coalition as well as the national restaurant association who finally got through to congress and congress finally came through on behalf of an industry that is not one big monolith and therefore probably hard for a
lot of people to appreciate how many americans are employed in this industry, and how many towns and villages and cities rely on their restaurants for their economic activity as well as really for the emotional well-being of those communities. >> danny, aelgts sara. good to hear you so optimistic we've talked to you over the low points of the last year. how are you think being the other side once they continue to fully reopen, what is a place like new york which you have such a presence and history and look like, we've gone through so much in terms of the pandemic, real estate, offices, now tax increases potentially, what's the prognosis? >> tough i think you'd have to be kind of crazy to think it's going to be easy, because it won't be. most of us have been doing business with long-term leases that were based on a reality
that no longer exists. we don't have nearly the density in our city in terms of office ou occupancy. international travel takes longer to come back, so will business travel. what we're focused on right now is how can we build back our businesses in a hyperlocal way as of this moment, sara, our restaurants are able to serve 50% indoor capacity plus on the sidewalks and sometimes even into the street. the reason that's so important is that when you pass a restaurant and as the weather gets warmer, which is another big reason for my hope especially for a town like new york city, as you pass a restaurant and you see street activity where all you've seen for months and months and months are either snowbanks or boarded up windows, street activity is a beacon of hope that's going to encourage more people to either
return to new york, return to their offices, and come visit the city >> to follow up on that, danny, do you think that these things will be made permanent outdoor dining and somewhere like new york city? >> we've been told by our current mayor that this is permanent. i've spoken to only three of the many, many people vying to become mayor in the election that will be this november but all three of them have said that it's fully their intention that we continue this, and why is this so important? this is a city of people who are self-selected, human beings who want to be with more people, and when people see people in new york, life happens furthermore, the rent as i was just saying is long-term subscription leases which is really what a lease is, is basically going to rely on the restaurants to do more revenue than the four walls they have whether or not they have
capacity restrictions, having the opportunity to serve outdoors for eight months a year plus the new tricks we now have up our sleeves which we all had to learn this past year of takeout delivery and shipping across the country we may be at a point where we could be a full service restaurant industry that is viable and can truly thrive >> i did want to ask you specifically, danny, about online ordering and how you think that is going to change post pandemic. doordash has come public during this time sky rocket asser that business has taken off do you know that trend accelerating does that hurt job prospects >> i don't think so. i think it will go from what has been a lifeline for the past year into what will hopefully be the really delicious icing on a cake i can tell you right now by
watching the last three weeks the amount of planning forward-looking planning, the backlog of celebrations of anniversaries, birthdays, mother's day, graduations, weddings, engagement parties, that didn't happen, couldn't happen for the last year, people are coming back. look, we just in the last two weeks of opening union square cafe and university tavern i don't think i've ever seen more candles on more tables and can't be that many people's birthdays. there's so much pent up demand to go out to eat and be with people now at the same time i think that if there's anything that this online ordering is going to pose a threat to, it could be that maybe people will go to the grocery store a little bit less frequently, but people want to eat good food and people want to be with people >> finally, danny, as for your spac, you've launched one during all of this, which has been sort
of a hot time for that they cooled off a little bit lately where are you in terms of shopping for a target and finding the ideal one? >> well, the fun thing is we can finally shop, because as you well know, we started planning for this probably late last summer, and we couldn't talk to anybody about it, and even in the filing period with the sec you're not permitted to speak to one company, so what's great is that right now we are speaking to a number of different businesses and as i said before, our focus is on culture. we're looking for businesses that truly employ a stakeholder model where they believe that the best way to have a great outcome for their shareholders is to begin by caring deeply for the people who work for them and their customers and their communities and you would be surprised that group of businesses is thriving and there's a number of them that are ready to be public and so what we're hoping to provide for those who wants to be public is
a different avenue for getting there, and we've got an amazing board of directors who i hope can provide some amazing strategic guidance for a company that's ready to be public. >> keep us posted. thank you for joining us it's good to hear again the optimism >> thank you we are just moments away from president biden's economic plan, up next, we will discuss what will be in it that we know so far, how higher taxes could factor in especially for corporations which we are expecting to hear about and how alofhacod pa yr investments.ou stay with us
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infrastructure bill. what is in here you like and might have a real shot getting bipartisan support >> as you mentioned, there are definitely things in here to like and republicans and democrats wanted to spend more to repair roads and bridges and broadband and components in china strengthening the semiconductor supply chains. the problem is that this goes so far beyond what we traditionally think about in infrastructure. just the summary is 25 pages talking about housing and schools and child care and medicaid and the list goes on and on and you raise the problem how do we pay for it in the trump administration, we were open to things like user fees, looking at private/public partnerships, a whole lot of this infrastructure spending has
never come from the federal government, we're looking at toll roads and things like that, and here you have huge tax hikes which are going to hurt our competitiveness vis-a-vis countries like china it's frustrating that there don't appear to be attempts to make this bipartisan i like joe biden talking about bipartisanship and i'd like to see it with some of his policy proposals. >> austan, the tax increases are emerging as one of the more controversial elements here when it comes to the pay-fors 21% to 28% on the corporate rate, higher taxes on individuals. is that going to risk the recovery that we're just starting to see come to fruition from the pandemic and all that stimulus the biden administration just passed >> no, i think definitely not. the president ran on a campaign that he was going to do exactly this, that he was going to propose a broad-based infrastructure, not just
transportation infrastructure, but energy, telecom, health care, education, all of those are critical infrastructure for the country, that he would do that program, and that he would raise taxes back to historic levels on corporations and high-income people and he won by 7 million votes on that platform so i don't think there's any surprise and the people whose taxes would go up, they haven't had a recession. the employment level for those high income people is higher than it was before covid ever struck, and that would put our corporate tax rate at something like the middle for the large economies around the world, and that's why i think you've seen the market did not react badly it reacted fairly positively to the announcement >> austan, you worry this is going to spark a lot of inflation or relatively relaxed about that >> i guess i have been
relatively relaxed, if you call it that. there's a bit of a contradiction in terms in criticizing this proposal of the president's on inflation grounds, at the same time as saying you don't want them to let the taxes go back up for high income people and large corporations that makes this infrastructure proposal, which is a multiyear, multidecade proposal not inflationary, because you would be taking taxes out on the other side >> clete, what is realistic as far as what could pass under reconciliation, where it wouldn't matter what the republicans think? >> you need to have joe manchin on here to ask that question i think what you're going to see in the weeks ahead is that a lot of republicans are going to be making the points that i'm
making, which are that raising taxes in the middle of a pandemic, when we're in the middle of an existential competition is china is the wrong way to both grow our economy and win that competition for the future and i think that there's going to be a lot of pressure on democrats and they're going to have to decide are they willing to take that risk for legislation that i think look, in some areas it's critical on roads and bridges, i agree on broadband, but do they really want to take that risk for a whole bunch of other social spending that i don't think the american people see as critical and i will just say, i do want to respond to two points that austan made. in terms of sort of why biden won the election, i do think we have to remember that covid hit in the middle of the campaign year, and if the economy would have been where it was pre-covid, on the heels of the tax cuts that were enacted during the trump administration where we had historically low
unemployment across all demographic groups, i think you might have seen a different situation and i'm nervous to even make this point, i'm a lowly national economic council but i think the inflation concerns here are real and i get that austan is right, sometimes that can be an excuse that people use to argue against things that they don't a like, or of course republicans don't make that point as much when it comes to tax cuts, but the point is, we've never spent this kind of money before. if you add up this package, done just in the new year on the covid relief, you look at the fact they have another 2 trillion package coming on the heels of this, we're talking 6 trillion in six months that is almost ten times what was done under the first couple months in the obama administration i that i has to have everyone concerned. >> let's stick around if you
may, let's bring in ylan mui to give us a preview of what we might be due to hear from the president. we have been given a two-minute warn so long we expect him any moment what are the key points we should be listening out for? >> the white house is really framing this as a once in a century investment in america. i think the key here is that they are basically acknowledging that they are not going to get republican support here because of the tax increases linked to this they felt it was important to pay for the package. can they unify democrats around the proposal that's the message biden will lay out ensuring he has his party behind him as he rolls out what is undoubtedly a very ambitious and bold proposal, can he make sure that democrats will fall in line behind him. >> clete, want to come to the point on the tax increases if this spending is to be approved, is it better to see it funded than not?
>> i think that's correct. i think both parties have had a problem with deficits for a long time i'm not being partisan on this point at all we're both guilty. we have not done a good job of managing the deficit in this country. but i think there are better ways to do it and when we were looking at this in the trump administration, having user fees more closely connected to the products and services you're actually producing is much more economically efficient way to do it, doesn't have the broad-based international competitive nness concerns raising the corporate tax or minimum tax would do. those are the ideas, also private/public partnerships. it comes from the private, not government there is a way to improve
infrastructure writ large but i don't think you raise the corporate tax rate or global minimum tax. >> austan it raises the point about how much this is costing, 2 trillion here, 2 trillion there. should we just keep passing trillion-dollar packages until interest rates go up when do we have to be concerned? >> well, this is -- >> forgive me, i'm going to interrupt because we can see the president coming out, maybe i've done this moments too soon, because they're cleaning his pedestal as we speak but we are expecting president biden just moments, there is he waving to the crowd and looks like he's about to step forward. austan, finish your thought. my apologies i went too soon. >> i was just saying they're paying for this bill and if you look at the poll, a poll came out today in which they asked the american people in a $3 trillion imfrom structure package do you want it to include raising taxes on people earning more than $400,000 a
year in corporations and by a 2:1 margin they want the infrastructure plan to be paid for with those taxes, not the opposite >> looks like they're still cleaning the podium there. >> i went way too soon >> for the the in pittsburgh. way too soon you never know you get a two-minute warning and then you think that it's going to come out clean. what are you listening farce where the spending is going to go that could peak your interest >> the white house put out a 25-pager already which outlines a lot of what the president wants to do. i am interested in hearing additional details of some of this there is a chi in a piece about semico semiconductors i spent a lot of time working on the china issues and we're interested to see is this something they try to do with
republicans? they're proposing a $50 billion office in the department of commerce to look at supply chains for critical technologies so i'm interested in hearing about that and the question of reconciliation is a big one and what is the mechanism through which he wants to pass this. one more point on taxes, we talk about that oh we're ax taxes them on the big bad corporations but these are corporations that employ hundreds of thousands if not millions of americans. if we want to create high-paying jobs for americans the last thing we want to do is make the companies that employ them less cost competitive especially when we're in this global economy so it's too convenient and cute we'll raise it on them and it's not going to affect everyday americans. i think that's incorrect >> the president's extended introduction goes on, definitely went too early there
austan, i wanted to come to you on the corporate pax point specifically i get where america has been historic ally and how there's room to elevate the 21% back to a split of difference. do you not fear versus other western economies the u.s. is still where it is today above their rates? >> i don't think it is if you look at the big economies to move to 28 will put us right where other economies are. the u.s. had a $2 trillion primarily corporate tax cut and nigh income people's tax cut under donald trump if you go look at the polling, again, that remains the most unpopular tax cut in the history of american polling because it's widely perceived this was mostly windfall giveaways to corporations and did not
generate sustained investment boom as was promised, did not pay for itself as was promised. >> austan, this time here we go. i waited until the last possible moment to be sure. the president of the united states >> and and -- bonnie, my good friend he asked me back there, he said do you ever get nervous and he said because i got up this morning and made breakfast for my kids i got to introduce the president. i said to you, mike, you did a heck of a job but i get nervous if i had to get up in the middle of the night, climb up a telephone pole, replace in the middle of a storm a connection that knocked out everybody's electricity, put a transformer in that's what would make me nervous. i couldn't do what you do, pal, i couldn't do what you do and i want to, it's true, mike, you're
a union guy, me, too i got in trouble but i don't make any apologies for it. i'm a union guy. it's about time they get a piece of the action. [ applause ] to all my colleagues county executives and the mayor, everyone that's here, thank you for the passport into your district, and i appreciate being here i'm honored to be here two years ago i began nigh campaign in pittsburgh saying running to rebuild the backbone of america and today i return as your president to lay out the vision of how i believe we do that, rebuild the backbone of america. it's a vision not seen through the eyes of wall street or washington but through the eyes of hard-working people, like the
people i grew up with, people like mike and his union family, union workers and carpenters training center, people like the folks i grew up with scranton in claremont, delaware, people who get up every day, work hard, raise their family, pay their taxes, serve their country and volunteer for their communities and looking for a little bit of breathing room, just a little bit of light ordinary americans doing extraordinary things, people who break their necks every day for their families and the country they love. the country was in ex-stream distress with the virus on a deadly rampage that has now killed over 4,000 -- i carry it in my pocket every day i have the list of how many have died
547,296 americans dead from the virus. more than all people killed in world war i, ii, the vietnam war, 9/11, 547,296 americans and an economy that left millions out of work and created so much anxiety. that's why i moved so quickly to pass the american rescue plan with the help of my friends here in the congress. i really mean that it didn't pass by a whole lot, but with the leadership of connor and bobby and -- just you got it done, because it was an emergency. we needed to act to save jobs, to save businesses, to save
lives and that's what we did we're fwingbeginning to see the results. we're on our way to having given 200 million vaccination shots in the first 100 days of my presidency when i said i'd get 100 million done, people thought it was a significant exaggeration we're going to get 200 million done twice the original goal because of all the help of all of you leading economist predicting our economy will grow 6% this year that's a rate we haven't seen in years and years. we can cut child poverty in half this year. with the american rescue plan, we're meeting immediate emergencies. now it's time to rebuild even before the crisis we're now facing, those at the very top in
america were doing very well, which is fine. they were doing great, but everyone else is falling behind. the pandemic only made the division so much worse and more obvious. millions of americans lost their jobs last year while the wealthiest 1% of americans saw their net worth increase by $4 tri trillion just goes to show you how distorted and unfair our economy has become it wasn't always this way. it's time to change that i parenthetically i got criticized for giving tax breaks to middle class and poor folks i didn't hear that cry when we were doing the same thing when trump's tax bill passed 83% of the money went to the top 1%
this is not to target those who have made it, not to seek retribution. this is about opening opportunities for everybody else and here's the truth we all will do better when we all do well. it's time to build our xheconom from the bottom up and middle out. not the top down it hasn't worked very well for the economy overall it hadn't worked. because wall street didn't build this country you, the great middle class built this country and unions built the middle class and it's time -- [ applause ] -- and this time we build the middle class we're going to bring everybody along regardless of background, color, religion,
everybody gets to come along so today i'm proposing a plan for the nation that rewards work not just rewards wealth. it builds a fair economy that gives everybody a chance to succeed and it's going to create the strongest most resilient innovative economy in the world. it's not a plan that tinkers around the edges it's a once in a generation investment in america, unlike anything we've seen or done since we built the interstate highway system and the space race decades ago in fact, the largest american jobs investment since world war ii it will create millions of jobs, good-paying jobs, it will grow the economy, make us more competitive around the world, promote our national security interest and put us in a position to win the global competition with china in the upcoming years it's big yes. it's bold?
yes. and we can get it done it has two parts, the american jobs plan and the american families plan. both are essential to our economic future. in a few weeks, i'll talk about the american's family plan, but today, i want to talk about the americans jobs plan. i'll begin with the heart of the plan, it modernizes transportation infrastructure, our roads, our bridges, our airports i just left your airport the director of the airport said we're about to renovate the airport. is that right, mr. county exec executive? we're going to employ thousands of people and she looked at me and said "i can't thank you enough for this plan." it grows the economy in key ways it puts people to work to repair and upgrade that we badly need it makes it easier and more
efficient to move goods to get to work and to make us more competitive around the world some of your local officials know when someone wants to come in the area and a company wants to invest, what do they ask? where is the first rail bed? how can i get to the railroad? what access to the interstate do i have in what's the water like? tell me about it, and it goes on and on it's about infrastructure. the american jobs plan will modernize 20,000 miles of highways, roads and main streets that are in difficult, difficult shape right now. it will fix the nation's ten most economically significant bridges in america that require replacement. remember that bridge that went down we got ten most economically significant bridges with more commerce going across it that need to be replaced.
we'll repair 10,000 bridges, desperately needed upgrades, to unclog traffic, keep people safe and connect our cities, towns, and tribes across the country. american jobs plan will build new rail corridors and transit lines, easing congestion, cutting pollution, slashing commute times, and opening up investment in communities that can be connected to the cities and cities to the outskirts where a lot of jobs are these days it will reduce the bottlenecks of commerce at our ports and our airports the american jobs plan will lead to a transformational progress in our effort to tackle climate change with american jobs and american ingenuity, protect our community from billions of dollars in damage from historic superstorms, floods, wildfires, droughts, year after year by making our infrastructure more secure and resilient and seizing
incredible opportunities for american workers and american farmers and a clean energy future skilled workers like one we just heard from, building a nationwide network of 500,000 charging stations, nation-wide network of 500,000 charging stations. creating good-paying jobs by leading the world in the manufacturer, export of clean electric cars and trucks we're going to provide factory incentives and point of sale rebates to help all american families afford clean veez of the future -- clean vehicles of the future the federal government owns enormous fleet of vehicle that's will transition to clean electric vehicles right here in united states of america, by american worker, with american
products we'll make all of these investments, we're going to make sure that the executive order i signed early on that we buy american that means investing in american-based companies and american workers, not a contract will go out that i control that will not go to a company that is an american company with american companies all the way down the line, and american workers. and we'll buy the goods we need from all of america. communities that historically have been left out of these investments, black, latino, native americans, rural, small businesses, entrepreneurs across the country. look, today up to 10 million homes in america and 400,000 schools and child care centers have pipe that's they get their
water from, pipe that's are led-based pipes. including pipes for drinking water. according to scientists there's simply no safe exposure to led for a child. -- leads to development problems. american job plan puts plumbers and pipe fitters to work replacing 100% of the nation's led pipes and service lines. so every american, every child can turn on a faucet or fountain and drink clean water. with each $500 investment replacing a line could lead up to $22,000 in health care cost saved, a chance to protect our children, help
them learn and thrive. we can't delay, we can't delay another minute it's long past-due you know, in america, where the early interest was in this thing called the internet that we invented, the early internet was invented here. millions of americans lack access to reliable high-speed internet including more than 35% of rural america. it's a disparity even more pronounced during this pandemic. american jobs. we'll make sure every single -- every single american has access to high-quality, affordable, high-speed internet, for businesses, for schools, and when i say affordable, i mean i it americans pay too much for internet service we're going to drive down the price for families who have
service now and make it easier for families who don't have affordable service to be able to get it now as we saw in texas and elsewhere our electrical power grids are vulnerable to storms, catastrophic failures and security lapses. tragic results my the americans job plan will put hundreds of thousand to people to work, laying thousands of miles of transmission lines, building a modern, resilient, fully-clean grid, capping hundreds of thousands of -- literally, orphan oil and gas wells that need to be cleaned up because they're abandoned. paying the same exact rate that a union man or woman would get having dug that well in the first place will build and weatherize affordable, energy-efficient
housing, commercial buildings for millions of americans. even before the pandemic millions of working families faced a enormous financial and personal strain trying to raise their kids and care for their parents at the same time so-called sandwich generation, family members with disability got a child at home, you can't stay home from work to take care of that child unless you lose -- you're going to put the child at risk or you lose your job. or you have an elderly parent you're taking care of. seniors and people with disabilities living independently feel that strain as well, we know they can live longer, the americans job plan can help in big ways to extend access to home community based care think of expanding vital services like programs for seniors. or think of home care workers
going to home of seniors or people with disabilities, cooking them meals, helping them get around their homes and live more independently for too long caregivers who were disproportionately women and women of color and immigrants, the americans family plan changing that with millions opportunities for people who can get to work in an economy that works for them decades ago the united states government used to spend 2% of it's gdp, it's gross domestic product, on research and development. today we spend less than 1%. i think it's seven-tenths of one percent. here's why that matters. we're one of only a few economies who public invest --
declined gdp in the last 25 years. we've fallen back. the rest of the world is closing in and closing in fast we can't allow this to continue. american jobs plan is the biggest increase in federal non-defense research and development spending on record this could boost america's innovative edge in markets like battery technology, biotechnology, computer chips, clean energy, the competition with china in particular critics say we shouldn't spend this money. they ask, what do we get out of it well, they said the same thing when we first flew into space for the first time they said the same thing well, pushing thefrontiers led to big benefits back home. when nasa created apollo's digital flight control system, unheard of at the time, led to
technologies that help us today to drive our cars and fly our plain planes. when nasa invested ways to keep food safe for astronauts led to programs for decades to keep food safe in supermarket at least 2,000 products and services have been developed and commercialized as a result of american space exploration gps allows us to find each other and computer chips allow us to see and talk to one another separated by mountains and oceans, singing happy birthday, and watching the first steps of the new baby grandchild. comforting each other when comfort is needed. think of what it means to you and your loved ones. we just have to imagine again. i had a long discussion with xi jinping, leader of china, called and spoke for two hours on the phone, and he said, astonished
my nasa security team and china experts that were on the line, he said, you always said, mr. president, that you can define an american in one word, possibilities. that's who we are. and in america anything is possible like what we did with vaccines a decade ago that laid the foundation for covid-19 vaccines we have today. like we did when interstate highway system that transformed the way we travelled, lived, worked and developed americans could visit relatives anywhere in the country with just a family station wagon. business in pittsburgh could load up a truck and get a product to 30r8d portland or phoenix. about a quarter of all of the miles americans travel each year on one of those very original highways imagine what we can do what's in
our reach to modernize those highways you and your family could travel from coast-to-coast without a single tank of gas, aboard a high-speed train, we can co affordable, high-speed internet, wherever you live. imagine handicapping your children a imagine handing your children a world leading clean energy one of the biggest threats of our time, together with the american rescue plan will create millions of jobs, estimated some 18 million jobs, good-paying jobs and it will level the playing field to ensure new jobs are good jobs that can you raise a family on and assure free and fair choice to organize and bargain collectively that's why my plan ask congress to