Transcripts For CNBC Squawk On The Street 20240712

Protests and the fallout from joer george floi, but the market and stocks are focused on Economic Activity, period we just keep getting good news its good news off very lowered expectations whether it be cheesecake getting a lot more people than they thought or the airlines this morning. American saying good things. Whether it be ebay pronouncing right now things are better than expected whether you talk a look at a lot of the companies that, you know, morgan stanley, gm, of course this quarter was the weakest, but maybe next quarter will be the strongest. We have a number of Oil Recommendations saying they have come all the way back. So the street is really bullish. After being very bearish you see a lot of price targets that were cut severely are now going back up. Its a kind of dont fight the trend where the most overbought we have been since 2009, but if you go back to 2009, we were up 11 on the s p. We had great period after. People are fighting the tape if theyre selling. How about that thats what theyre doing. Theyre fighting the tape. David, you saw it yesterday with your excellent warner music interview. Theres an ipo that people made a fortune on that stock up dramatically, over 19 as the day wore along and only got better. Add the same time, as my day goes along and i have conversations with people who advise corporations what i continue to hear is Companies Planning for layoffs or planning to make permanent some of the furloughs that have taking place. Just cant get past what i pick up during the course of the day and how the s p is performing and whether or not were going to have an Unemployment Rate that is higher than people perhaps seem to expect, at least judging and reflecting from what the s p is right now or how these two things coexist i keep coming to you with the same question, and i dont know because then the answer you get from all the investors is its just about the fed its got to just be about the fed. Just about cheap money nowhere else to go the usual. We have to break things down. This morning, for instance, Royal Caribbean, good company. They just raised 2 billion at 5 money now, Royal Caribbean doesnt even cruise. Before the fed got involved, you would say that Royal Caribbean should be in chapter 11. Chapter 11 you had 5 convert that is jay powell anybody who is in business who is a larger cap company can get money. And they can get money relatively good prices, and we know thats powell when i see what europe is doing, we say okay, theyre doing their own malcolm x, by any means necessary plan, but its so hard to fight the fact that any company can raise money. And that we have only had hertz, and that was of course, a little selfinflicted in what may be a Great Depression, Great Depression in terms of employment. Only hertz has had to file chapter 11 i dont even know if they ended up being chaptered they might beback in business now. Carl, i have to tell you, if you didnt know better, you would think happy days are around the corner, but david is absolutely right. I think everyone at the major banks is trying to figure out how few people they need to bring back after adp yesterday, goldman had a note that suggested the number implies significant rehiring and although continuing claims were a little troubling, you could argue that the jobless claims number shows exactly that, that people at least to some degree are being asked to come back to work. Yeah, look, i think that when you see the notes, the notes tend to be, okay, business was down 60 , 70 , and now its down only 25 the casinos, well, they were closed now theyre only off, say, 30 from where they were and everyone is so happy that things are open that they tend to be taking stocks far higher than you would expect. Now, we do have a lot of apologists come on and say look, stocks represent the future, but the fact is that maybe the stocks, if they represented the future a month ago, they got it wrong. Whos right, whos wrong if they represent the future, what the heck were they doing all the way down its funny you mention that because, speaking of about a month ago, it was may 13th that david tepper went on the half with the judge and said this was the second most overvalued market he had seen since 99 s p is up 10. 7 since then so was tepper wrong . Was he talking a book . Is the market mispriced . Or a combination of those three things well, i happen to go and love david. Hes one of my feech teachers at goldman, and i know he adjusted his view not my view to say he adjusted his view, but i just dont want him to be viewed as someone who necessarily got it wrong he has always been a person who adjusts. He was very bullish, for instance, until he heard about the novel coronavirus. And instead of just saying, well, the heck with that im very bullish, he pivoted and said it was game changer i think that looking, tepper is someone who when the facts change, he changes too he did get more bullish. And i think that one of the reasons why you could get more bullish is the banks stopped going down, and the banks, as you know, david, when the banks stop going down, when wells fargo went down 22, upgraded today, thats why i mentioned it, what you start thinking is, wait a second, Deutsche Bank says wells fargo, type to swap out of goldman to wells, maybe the pressure is off the system and maybe costco last night, i mean, think about what costco did. They instituted a mask policy. Okay they have had to be risking, rolling the dice, everyone had to wear masks. Associated, people coming in what happens they blew away the numbers theres pentup demand everywhere and not a lot of resistance even to companies who want to wear masks, even though as we see in the south, masks seem to be forbautin agree and wells is an Interesting Company to focus on because you and i were having a conversation about it when it was an over 9 yield and the market value i thing was hovering around 89 billion. Obviously, the stock down, what, 36 over the last 12 months, but jim, this market seems to be saying were going to have a vee or in the midst of a vee recovery, when i still dont find that many people in the Business World who believe that. Now, that said, typically ceos tend to be bad at prognosticating. We can all see that from the Business Council and their surveys every year but were saying the market seems to be saying a vee numbers next year are not going to be what they were in 2019, so clearly were willing to accept a higher multiple. I understand the s p is weighed very heavily by the huge market caps of microsoft and apple and amazon that are and facebook, that are doing so incredibly well but i dont know were also heading into an election season and we have huge social unrest in the country i mean, who knows . And were going to have an Unemployment Rate thats still probably going to be double digits by the end of the were at least trying all the people on twitter are going to be like, youre so negative. Im just trying to embrace what you hear i said i was going to take a break from twitter today because i said something that was quizzical about one particular stock, and suddenly, the hoards came down on me. You get it worse than anybody. The speculative nature of this market is extraordinary, too. Every day, they seem to we used to call it theyre running a stock, and im not going to mention the stocks theyre running because that just verifies that we see what theyre doing. But i come back, and i say again, while we were talking, ebay preannounces. You start saying, if ebay is doing well, perhaps we have to take a look, and then you go to shopify, and where have shopify on tonight just a second, lets raise themu see the apple numbers . And then you say, fedex raised prices, i guess demand isnt so bad, and spirit air is tripling prices out of florida. I give up. Go buy delta well have phil lebeau on later this morning talking about the Airline Schedules that are getting more and more aggressive Virgin Atlantic is going to start running routes back to jfk and orlando. David is right, jim, in terms of political risk, we saw the mattis statement yesterday about the president. Just a remarkable statement to come from a former defense secretary. We have snapchat no longer promoting the president s snaps. Obviously, there ongoing conversation about twitter and facebook and the protests themselves. I mean, at some point, will the market price it in maybe not because of Economic Activity, but the prospect of a biden win. And as we have said before, the implications for what taxes may do as a result well, general mattis, i went to hear him at his book party given by mayor bloomberg, and i spoke with him after and also when he spoke. I said are you going to Say Something about your period with President Trump . He said absolutely not thats not my job. Im not going to do it he said it several times obviously, he did Say Something this time. I know a lot of people who like me respect general mattis, particularly for what he did with battle for fallujah you would think maybe that could resonate with someone. I dont know if it will resonate because it seems theres a lot of teflon on everybody when it comes to trying to figure out the unemployment, let me give you im going to give you an off the wall thesis as someone who loves Small Business and medium sized businesses. Who is left after they deemed so many businesses nonessential are the companies that are viewed essential and how well have they done how well has lowes done, home dep depot, patarget when you wipe out the competition, maybe you should raise the multiples of the companies you didnt wipe out. Im searching. Its not easy. No. By the way, in the things that carl mentioned, of course, that we have gone over this morning, i think we havent really talked about the pandemic i think thats still going on. Pandemic. 1. 8 million cases 107,000 deaths and still adding new cases at roughly, again, its come off a very low basis in the states going up very low, but i dont know not to mention, of course, the stuff with china is getting worse and worse every single day. Im just saying. Thats all just putting it out there, guys. Social distancing, are you seeing it . Were all anecdotal, but social distancing, maybe it was sirx feet now it seems like its three feet masks, i carry one people think its halloween. Thats crazy but yeah, david, youre right. You mentioned a litany of things that are bad, and i caught myself yawning and then realized i could be on tv i know. Nobody cares thats all right great. Good guys, theres a lot to digest today. Were going to talk more about the casinos. Obviously, as vegas has its first reopening, and occupancy rates better than expected its the anniversary of Tiananmen Square were getting headlines regarding protests in hong kong. And the markets themselves the s p with its best 50day rally since we went to a fiveday trading week. Were back in a minute when you say what youre in the mood for, the xfinity voice remote will find exactly that. Happy stuff. The groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Circle of trust, greg. Relax, the needles are jumping. You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say to find more of what you love with the xinity voice remote. Gambling and crowds return to las vegas today, as several casinos p s and hotels reopen oe strip. Contessa brewer has that story i would go with lots of casinos and Hotels Reopening on the strip, as the clock struck midnight, instead of going home, cinderella showed up for the party. Downtown vegas casinos, the d and golden gate were among the first to reopen with strict social distancing and sanitation rules in place casinos are beginning to throw open their doors again, after two and a half months closed reservations came flooding in with such unexpected demand, mgm and seizers reopened Third Properties each. Mark bath is bringing his wife and daughter to Wynn Las Vegas for long weekend, hitting the sports book to bet on horses at the belmont, and taking comfort in safety precautions. Also comfortable because i dont think as many people will show up, so you know, well take advantage of the pool and the whole area moodys forecast gaming earnings to plunge some 70 below 2019 levels in the next 12 months partly because of social distancing limiting capacity but of course, so many people have lost their jobs and their income, guys, that they will be less likely to splurge on gaming another issue here is the willingness to travel. Exclusive new data from cnbc and change Research Shows this could be a potential problem for vegas casinos. 60 of the people surveyed think taking a flight right now is unsafe 37 think its unsafe to stay in a hotel. But of course, reopening cant happen fast enough for las vegas workers, with an Unemployment Rate in april above 33 , by far the highest of any major american city. And normally, the driving crowd accounts for about half of las vegas visitation for now, theyll likely be driving the bulk of the revenue. Though tourism officials expect increasing air travel through summer carl contessa, let me ask you a quick question i think that you and i both know matt maddox from wynn, and its important to point out, he didnt openidally, he hired johns hopkins, the best. Theyre not rolling the dice when it comes to safety. Number one, he had a lot of experience because, remember, they had to shut down macao before any of the shutdowns happened in las vegas and reopened with a lot of regulation there two, he was the first ceo from a casino to lay out and publicly do so what his detailed plans were for reopening, how he was going to keep employees safe they have partnered with the Medical Center there in las vegas to bring testing on site at Wynn Las Vegas so their employees are safe it was extremely detailed and set the bar so high for the rest of the casinos and gaming regulators to follow yeah, remarkable document when it came out and its amazing were finally at this day. Contesy, well check in with you a lot today. Thanks Contessa Brewer on vegas reopening. Opening bell in just about ten wee ckn mont rba ia me a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com welcome back you may have seen some of the headlines. You mepged it briefly, but its worth coming back to ebay raising guidance. The stock does appear to be poised for a nice move higher. Its pretty substantial, david. People were thinking they were going to make, say 73 to 80 cents. It looks like youre going to make 1. 02 to 1. 06. Thats a big raise people were thinking 2. 38, now theyre looking 2. 75 to 2. 80 this is kind of the merchandise being terrific this is the kind of thing that gets the juices going. What people say is look at this. This is a stock thats been moribund you had noticed it the other day, its been sneaking up this is part of the online phenome phenomena, people staying home and ordering and it just shows you that stocks that have been left for dead are very much alive and make people more bullish than they would be otherwise yeah, remember theres been a change in ceo. Of course, you have a new ceo in there, used to run walmarts e commerce business. You have the classified. The classified business still for sale that Auction Going on. Trying to get an unidate on that because were getting into june when they expected to potentially get closer to an end there in terms of finding a buyer. Then they had the great sale of stubhub, dont forget. Talk about timing and getting lucky. A couple months, and they wouldnt have had anybody buy that thing and i thought they didnt get enough because i was looking at live nation. All the comps, it really didnt matter once you decided there should be no entertainment in sports, you dont want to be the Ticket Broker for no entertainment and no sports. But hope springs eternal, david. What a nice quarter coming yeah. And a big move up in the stock, of course, as we get closer to an opening bell, well keep an eye on ebay shares perhaps a 10 gain whats in store for the overall market well have that when we come eng llig mut opinbe ehtines away. Most of the boards still have zero or one africanamerican on the board, and that, i think that pressure in that area can help to speed up progress and transitions for companies. And starting from the bottom as well, but i think you really have to start looking. We have to start looking more seriously at Board Composition and insuring we have the presence of difference on the board. A direct voice on the board. Thats Laverne Burns on closing bell talking about solutions, and we heard solutions about training and hiring, but you cant leave Board Composition out of the conversation you cant, and its not just minorities women are radically underrepresented in general on boards i think the boards, there are boards that are just basically the bastion of the old days, all white men. And i think they have to be called out for it. I think its our job to do so. At one point, we ran a Company Called boardx, which is similar to a company were going to be interviewing today, and i was astounded at how Many Companies still had all white male boards or boards with one woman, no minorities, that sold to sold in industries where the customers had minorities represented. Its also bad for business is what im saying. Its shameful, but its also bad for business i dont really get it other than its the old way and the old way of our parents and grandparents i wish that had gone away. I thought it had gone away david, you and i talk about this didnt you think certain worries had gone away . You would like to think so, but we have learned otherwise. Your point on boards is a very good one sometimes we seem to cycle into that, then we sort of move on from it. But diversity on boards, i think almost every Study Shows Companies benefit from it. Even their share prices and their return to shareholders benefits from having diversity on the board and its so important. There are still quite a few boards that just do not reflect our society at large they just dont. Its very disappointing but i think that what happens is its really up to us to point it out because they skate carl, who is really protesting i think maybe after this terrible incident in minneapolis, maybe its time to open the file. Take a look at how the companies have done. And call them out. Why not . Theyre wrong. We should call them out. Yeah, i mean, others have pointed out, i think tom friedman the other day said minneapolis where hes from has actually been a bastion of progressive American Companies like target and others, 3m, who have tried to make real strides. You would want to see that continue in companies that are headquartered in other cities as well but i think its been impressed, jim. Arne sorenson from marriott earlier this morning with his blog post over the weekend, and its clear leaders of very large companies, even those that dont have large africanamerican constituencies or employment bases are thinking hard about the issue. So good you mentioned that. I find ceos have become the consciences of america even if the market itself has no conscience theres so many ceos speaking out, and theyre united, speaking of general mattis the ceos said we have not heard any ceos come on that i have heard, maybe they have, and said we have to condemn both the violence and the protesters themselves i have found that the ceos are particularly open versus what i used to hear when i was much younger toward what the protesters have to say and are sympathetic to what the protesters have to Say Something again we have to stay on a lot of these ceos used to be afraid to comment. Arne sorenson, i used to think he was a lone brave person i think hes inspired people to talk out hes sensational a sensational man. Theres the bell, guys. At the nyc, Mgm Resorts International celebrating the reopening of the bellagio and the mgm grand. Celebrating the ipo of technologies well talk to the ceo in a few moments. On vegas, talking to contessa a moments ago, we have the flight schedules from american and united we cant forget about orlando, which continues to reopen, and liesman has this great dashboard of indicators looking at yelp store openings new infections baselines going back to march and january, and youre looking at some of the best numbers on a relative basis we have see so far in this era. No doubt things are better. I think one of the things that has happened, i was interested to hear what contessa said about flying because those numbers dont lie. I have been checking on my own about flights. And there are additional flights being added every day. They do not add flights, i believe. The one thing i find is very interesting, guys, is this quarantine policy that the United States has where if you come back from overseas, its two weeks selfquarantine, that has been, and any country that quarantines, thats been the gating to international where they make a fortune. Im waiting to see if our government decides to go easy on the twoweek quarantine, maybe you think it shouldnt, but thats been a major reason why tourism has not opened up. Go to italy, come back, you have to selfquarantine, guys is anybody keeping an eye on that, though thats just the honor system, jim . I dont know. I was going to go and i felt if i came on tv, people might say that im not quarantining. Is it an honor system . I think there are people anyone who goes knows the policy, because your travel agent tells you. What it does is basically say you have to take a threeweek vacation theres not many people in america who can do that. Maybe you can selfquarantine, working at a home office maybe is considered selfquarantine. Maybe thats how you get around it, but i think as long as there are quarantines, there will be people worried theyll be seen going places and doing things, and if youre flagged coming back from a foreign country, you really dont want to violate any of the rules yeah. Guys, a couple stocks were keeping an eye on. At 8 00 a. M. Or so this morning, i put a tweet out about the department of justice signing off on the acquisition of Td Ameritrade by Charles Schwab that deal announced on november 25th along with another deal, but Td Ameritrade shares are up about 4 schwab also up theres a ratio there, i think its 1. 08, and there was some concern about these registered investment advisers, many of which are on the schwab platform, and a good amount are also on the Td Ameritrade platform, but the doj apparently feeling that was not a significant violation in some way. No real conditions here, even though they did get a second request. Shareholder vote coming up expected to close on this. They have been saying the second half Td Ameritrade or schwab put out an ak acknowledging the doj has essentially cleared it they dont say anything, but theyre resting their case, so to speak, and this thing is going to close soon. Look, i dont i think theres so many different brokers, i dont think this is at all like cell phones where im still unless theres big spending by tmobile and sprint, i question that one. But this is a heavily competitive industry, and think about that, i got in, trading costs a fortune and you would never want to flip anything because you wouldnt make any money, and now trading costs nothing and you have an outfit like robin hood, disruptive with more than 10 million customers that truly makes it so youre not worried about rising prices. I think the Justice Department is on the mark on this one it is cheaper than its ever been to trade in history pretty kind of cool. We have a lot of traders it is cool. A lot of younger people really bagging, gunning, and liquidating stocks its a little disheartening to see all the 1 to 3 stocks people are gunning, but look, its not my judgment if you want to try to make money and legal, its fine, but its not investing. Guys, i mentioned, of course, november 25th. Those hals yacyon days of 2019, yeah that same day, lvmh announced its deal to acquire tiffany. It had been rumored for some time 135 a share in cash yesterday, i spent time talking about the possibility of lvmh trying to potentially renegotiate, get a price cut and we got a statement from lvmh overnight for us, but their morning. And here it is and let me give you some sense as to what really is going on here as well the statement was pretty straightforward, but theres an odd part of it the board of directors of lvmh met on tuesday, june 2nd and notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of tiffany and company with respect to the agreement that links the two groups they did go on to say, though, considering the recent market rumors, lvmh confirmed on this occasion it is not considering buying tiffany shares on the market nobody had been talking about the possibility of them buying shares on the market, at least not for a couple months. That was around, and in fact, lvmh was investigating the possibility initially when we saw and were visiting the lows and the Broader Markets back in march, and tiffany was trading well below the 135. The idea being that, well, maybe they can at least cheapen it for themselves by buying some stock. Right now, theyre not even in a position to do that. Tiffany knew about the board meeting. They shared material nonPublic Information on their current financials with lvmhs board, which would make it even impossible for them to consider it, but it was an odd addition here to this statement that basically just continues to fan the flames of that possibility that lvmh would try in some way to rest the price concession or even say were not doing this. Now, i can tell you that on the tiffany side of things, people familiar with their thinking tell me if in any way, shape, or form lvmh tries to propose a price cut or anything else, theyre going to go to court a contract is a contract this one seems to be fairly tight, although, again, in these matters theres always questions as to just how tight, but they will end up in delaware. Now, is that just a threat or is that the reality well have to wait and see but its very much unclear exactly what the man who runs lvmh, the richest man in europe, of course, is truly thinking here, other than the possibility of sort of taking things slowly, seeing if these guys breach any covenants at all under the merger agreement and or seeing whether theres a possibility of a price cut. But i can tell you that at this point, the tiffany side, first of all, has heard nothing about that they were aware of the statement coming out in fact, they need to be told about these potential statements and they were aware of it. They were well aware of the board meeting. They have not in any way received any notice of a desire to cut the price or anything else for the deal. And they are prepared to go to court at the first sight of that is what im told very much unclear whether bernard wants to be in court in delaware you know, these contracts, jim, left and right, people are just trying to say, dont worry about it its just a contract come on. But well see. One can fully understand given the performance of the business why they would want to cut the price, but whether or not theyre in a position to remains very uncertain the first thing i thought of is, is tiffany paying rent i say that because Simon Property is suing gap over skipped rent payments. We know gap can pay. I mean, theyre a real company but yeah, youre right hey, its rent do we really focus on rent isnt that a whole point, forgiveness . I would like to know, tiffany has very high rent places, and is tiffany going to have to renegotiate if lvmh doesnt buy. I know theyll litigate, but theres a lot of stuff in flux in retail that we dont talk about, including the inability of a lot of retailers to think they have to pay up. It is incredible to me how many retailers have skipped, and i know Mickey Drexler talked about them this morning. Including lvmh which apparently didnt pay rent in certain areas. We know they can i believe tiffany was paying it goes to the point if theres an opportunity for them to take advantage of, perhaps theyll try to take advantage of it. And in this case, of course, the question is whether the lack of performance in tiffanys business, given the pandemic, given everything going on, will give them some sort of reason. Right now, they dont have one under the contract, they really dont, it would appear, and there are plenty of lawyers poringover these who can try to find some hole if you give it enough time, perhaps they do. Maybe thats in part whats going on here. This statement did nothing to calm nerves. At the same time, we seem to understand what the game may be on the lvmh side well see. If its possible, hey, if i can get a billion off, why wouldnt i try, right, jim . I dont blame them one bit. Obviously, a contract is a contract, but i would love to know who the lawyers are here, because that would often determine, we know sometimes the lawyers get it right, david. Right . Yeah. Well, listen, thats why the lawyers are important in drawing things up. This contract is a pretty tight one. In this environment, theres a lot of concern about existing deals. We have talked about as well about simon, the contract of which is seen as just as tight as could possibly be it doesnt mean people or investors arent going to continue to be concerned, as we watch tiffany shares languish. 20 below the price. Of course, theyre still a ways away from being anywhere near closing it it could be august, september in terms of the antitrust approvals and thats kind of slow moving including australia, where apparently they need approvals as well. Carl, over to you. Actually, over to you, jim. Im fascinated by that tiffany because theres a tiffany near us downtown, and i always felt, wait a second, no one is really going there, but they have a great franchise with that box the robins egg box. Look, the ipo market is coming back. This is a really important reason why the bank stocks have done well. That warner music that david talked about yesterday, its up again. We have zoom info set to go public this very morning, and wlee have Ceo Henry Schuck joining us zoom info is not zoom video, although they are customers. So henry, first, congratulations. Always a big deal. Then tell us, how zoom info makes its money, because your Company Seems to be everywhere behind the scenes in what we call b2b situation thank you, item wonderful to be here wonderful to open the markets today. Were excited to be one of the First Technology companies to ipo. What zoominfo does is helps business to Business Sales people and marketing people find their next customer. We do that through our platform that provides data and insights and technologies that help sellers and marketers identify their next buyer, connect with them, know what to say when they engage with them, and do that in an efficient and effective way and our clients range everything from large fortune 100 companies to small smbs. Its funny, sometimes you have to use a kind of in the news example of what a company does in order to really get an understanding. I want you to talk about an outfit called tencraft and how they were able to pivot and take advantage of the time, because they wouldnt have been able to do it without zoominfo tencraft is a great story of one of our customers they make tents, outdoor event tents for event venues if youre at the taylor swift concert, its the big tent in the back the pandemic hit, and literally, every event on the face of the earth was wiped out. And tentcraft came to us and said look, we think we can make these tents suitable for hospitals and Health Care Facilities to do covid19 testing. But thats a completely different industry than what we have sold to we dont know how many hospitals there are in the United States, we dont know who the Decision Makers are there, we dont know how to get ahold of them can you help us with that . Thats exactly what the zoominfo platform does. In the first week, they sold to a hospital in erie, pennsylvania, then new jersey, then texas they had the largest revenue month in the history of their business what were excited that zoominfo is able to do, its able to help smb companies and midmarket companies and Large Enterprises find the next customer in the most efficient way te tentcraft is one example we have seen arnolds Home Office Furniture and silk home who were making home fabrics and Office Furniture shift and pivot to making ppe, and same issue, theyre in a new market, and thats what zoominfo helps them do one of the things we love on cnbc are Success Stories we always think about michael dell in his college dorm really doing a fantastic job i think your background, this is a company that just didnt start yesterday. Your background is one that is very inspirational to a lot of our viewers in a time that i find a lot of people are either despairing or pretty don on the country or various political issues why dont you tell us your story . Sure, thank you, jim. I founded this business when i was 23 years old i put 25,000 on my credit card. With my cofounder, and we launched the business out of my law school dorm. And we went to market trying to help sales and marketing people hit their number and the business grew organically and profitably since then but i think today, you know, theres no way this business is where it is today without the 1300 employees across the globe who come in every single day focused on helping us get our number, helping our customers hit our number i stand on their shoulders today, and im pretty excited about the team we put together to attack what is a really large opportunity. But yeah, it was fun to be 23 years old and starting the company while i was in law school as someone who has sold for a living and taught selling, i always felt if you had information, if you knew current information about what company and who the trigger pullers are, you could do quite well. But i could never get current information. How do you get current information for your clients the . We built a robust engine of millions of unique sources that come into a Machine Learning and Artificial Intelligence engine thats making decisions every day about what to publish or not publish in our platform. Today, we cover over 14 million businesses and 120 million business professionals, and that data, like you know, jim, is constantly changing. Companies are growing, theyre shrinking, theyre hiring new employees. Theyre getting new ceos, adding new technologies and removing old technologies opening new locations, launching new products, and that Machine Learning engine we built, that Artificial Intelligence is keeping track of all of those changes across billions of data points in real time at scale and thats how were able to bring those insights to our over 15,000 customers even zoom video trying to find customers, they went to you, a fastgrowing outfit it shows me the organic revenue growth, zoom has the best ever, but zoominfos organic revenue groelth and sales growth is pretty good too, isnt it . Were really proud of the metrics we put together. Were growing the top line over 40 , and were doing that with 47 adjusted income earning margins. Which is rare to see in a tech company. Whatstrive driving that is this market engine we built, our sellers and marketers and account managers are now going to market on top of zoominfo and using our data, using our insights to find our next customer, and were driving an incredible amount of efficiency in our operations by using zoominfo, and we think we can offer that to the Broader Market as well. We can offer that to every company that sells to another company as a potential client of ours thats over 700,000 Companies Across the globe thats a 24 billion total Addressable Market that we sit right in the center of and henry, one last question. I think its absolutely true that people are saying, this sounds too good to be true how do these guys make their money . You make your money in a sticky way, dont you yeah, so our solution is sort of an annual solution. We have packages for businesses of all sizes but its an annual or multiyear subscription that gives you access to our platform and our data and insights on your target market henry schuck, i know this is a very important day for you i thank you for sharing it with squawk on the street. I wish you the best of luck. You have a very exciting company. Thank you very much, jim. Were excited to be on the Public Markets today good for you. Carl, back to you. All right, jim. Thanks for that. So were looking at losses to start this thursday morning. Dow is down 120. And thats with a pretty sizable contribution from boeing on the upside were back in just a minute. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. They will not let up on this i think our employee bases demand it. I think society demands it i think fundamental aspects of fairness and the importance of opportunity demands it lets marshal our voices to make that happen. Thats arnie from marriott. If youre looking to Corporate America, its not coming from one company like marriott in that case, but active at the business round table, and well see if they do something collectively on health care or training or employment look, nothing would surprise me i come back and say that some of the best leadership in this country is from ceos ceos who do a lot to try to change, try to use their businesses as platforms for social change, and i think what a lot of us would say is a positive and not divisive way. The emphasis on being divisive or not divisive after what general mathis said last night, those of us who revere him were quite taken aback by what he had to say yeah. Jim, youve pointed out the differences between chinas recovery and our ongoing recovery and certainly, marriotts case study for how businesses i dont know, do you say roaring back in china, but relative to the United States, you could maybe say that i remember seeing arnie at the super bowl he was telling me exactly how bad business was in china. All Public Information i was i know that a lot of people know that marriott is a great Worldwide Business and they had done a big expansion of china. It looks like its paying off. Theres a lot of companies that in the last few weeks have been saying to me, you know, china is not just back but roaring back al alibaba had really good numbers. Nike is having good numbers over there. We dont know about apple. Theres a trade. Its a good one. The autos were fantastic, up 11 . No one has mentioned tesla in the last 47 minutes. I think tesla could have a very good second half they have the shanghai factory if you havent mentioned tesla, i think maybe youve become irrelevant and old its been a couple of days. Guys, well take a quick break here on the other side, got to get jims take on fixed income as the entenyear is now yielding. 8. Back in a moment save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Its official. Vector iq. It was a corporation then acquired nkla, and now its official shareholders have voted, and it is now nkla. You can see what the stock is doing. How about the company . Well talk to its founder, the executive chairman as well, inheexhoilton t nt ur of squawk on the street. When you take align, you have the support of a probiotic and the gastroenterologists who developed it. Align helps to soothe your occasional digestive upsets twentyfour seven. So where you go, the pro goes. Go with align. The pros in digestive health. And if stress worsens your digestive issues, try new align digestive destress. It combines aligns probiotic with ashwagandha to help soothe occasional digestive upsets, plus stress that can make them worse. And try align gummies with probiotics to help support digestive health. To deliver your mail and packages and the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. Lets get to jim and stop trading. I cant talk nkla, but american air is talking about demand reviving and again, i come back and say this is an industry that got oversold and look, i dont mean to be too critical, but Warren Buffett pretty much sold and created bottoms. American having much better numbers i think is good for american its important the airlines survive and theyre doing it and were going to talk to doug parker in a little bit about not just the business, but the interaction he had with a Flight Attendant on a competing carrier in recent weeks. Jim, really quick, ndx all time high, second day in a row and the tenyear at 80 basis points. Weve seen stories about the threat of stagflation. I think markets overshot the downside now when things are up a fraction of what they used to be, people will pay up some industries completely have gone by the wayside and people want to buy the stocks betting things will be better in fact its amazing the v is in the stock market, not the economy. Tonight pelosi . Yeah. I want to talk about this chinese ipo. Another one coming and the need for maybe a state stimulus its been great. The stimulus has been fantastic. It might run out soon. Shop if shopify, i urge people to watch that etsy is on fire. And smucker, are we at the end of the stay at home trade . I dont know but it looks like after campbells and this one, maybe we need to get more aggressive and go with american, and my favorite, southwest. Gary kelley, wow, look at that horse. Yeah. Pretty incredible. Jim, well see you tonight mad money, of course, as always, 6 00 p. M. Eastern time jim has a great show this evening. In the meantime, welcome to squawk on the street. Im Carl Quintanilla with david faber and sara eisen coming to you live from separate locations. Snap is trying to hold 1304 3120 jobless claims, the lowest in ten weeks. Still above 1 million at 1. 8 lagarde, the press are going big, maybe even bigger than some expected the first place you see that is in the italian bond market where it was sort of quasi bailout for italy. She did manage to vise in terms of a bigger baa zook ka than was expected theres the italian tenyear yield this morning Stocks Holding onto recent gains. Mixed. Lets talk about that right now. Joining us in this discussion by phone brent schutte, northwestern mutual, and oksana aranov. The mixed data is not great ahead of tomorrows jobs report. And the stimulus appears to be great. Is that driving the market here . I think the data is bad but less bad than it was the airlines reopening and the casinos, i think the markets are focussed on the fact that the economy is reopening the cases havent spiked and you have a ton of stimulus around the globe going into the markets and into the economy i think thats been a positive backdrop the last few weeks. Oksana, how are you watching this the 40 in 50 days for stocks off the lows is it makes sense to you are you telling clients to buy it good morning. Its not making a lot of sense yes, were recovering off the bottom our economy plunged to Something Like 60 of the economic peak in the Second Quarter thats the expectation however, as we recover off of that, incredibly low bottom, we have to go back to prepandemic levels of Economic Activity just by prepandemic levels of valuations thats where we seem to be firmly headed with the market. An economy headed back to 90 is not going to be good enough, because even in 2008 and 2009 in the terrible public crisis we have, the economy was functioning at roughly 99 of the capacity so i think optimism here is a bit premature. And to quote one of my colleagues at jpmorgan, v most likely stands for very unlikely in terms of a recovery being v shaped its an opportunity to harvest liquidity to deploy it as things start to really be clear that creating supply meaning reopening the economy does not automatically deliver demand so where would you be doing that where would you be positioning right now . So i think this is a Good Opportunity to raise some liquidity. As a credit watcher myself, when i look at spreads in the mid 600s in the high yield space and if you take out the Distressed Energy sector, its the mid 500s, its not enough compensation for a default scenario thats likely going to approach 10 specks are trading as if were going to have a roughly 5 peak in default, and were at 5 already. Thats one area where it makes sense to harvest some liquidity and wait for more defaults to come through which they will more downgrades to come through. So far this year weve had 16 0 bhl worth of downgrades. Its on the same as weve had over the last five years combined and on track to match 2008, 2009 so that definitely seems one part of the market where you could take some chips off the table and wait for better entry points you agree that the list of downgrades s p said the list of potential downgrades is the longest its been would you look to Corporate Credit as a sign that or would you look for a slowdown in the growth of Corporate Credit as a sign that equities are at risk that would make sense however, in the current environment im sorry being incredibly supportive, weve seen tremendous growth in generation of corporate growth a tremendous amount of issuers coming to market, taking advantage of this benign environment. I think its going to be a little bit of a rigged, frankly, mechanism for the time being you cant revive the economy by unchaining supply. Thats what this part of the reopening has been about we have to see what happens to demand twothirds of american businesses say their cash is going to run out in under three months so if that demand doesnt materialize, companies are going to have a much harder time financing themselves in the market, and that could create a widening of spread and certainly will be a sign that theres more weakness in the markets. Yeah. To you, brent, to that point, i mean, the labor secretary is not tape right now saying the Unemployment Rate should be able to drop below 10 by the end of the year the markets taking that as some sort of victory. I disagree on so many fronts. You dont have to recover all the lost jobs as the markets move higher, especially parts of the market that have been hit and reflect whats happened. Like value stocks. If i take you back to the great financial crisis, the employment in america did not trough until 12 of 09. The jobs did not come back until 2014 but the market moved up. Im not calling for 23 returns but i think its sometimes misperceived about we have to get everything back to get the market to move higher. And valuation on some stock is high but not all on small and mid caps theyre cheap relative to large caps and to me thats where the opportunities are. The more economically sensitive ads continue to reopen, and do so in a way that doesnt increase the covid cases. Thats the wild card, but so far, so good if i may comment on that brent go ahead i just want to point out that as the 2009 crisis was, the recover of gaining back jobs happened relatively quickly compared to twun where the recovery was longer. We dont know what the trajectory is going to look like at jpmorgan were forecasting that jobless rates will stay above 10 . Thats roughly 14 million Unemployed People versus 1 million when this began. With the American Economy consisting 70 of it consisting of consumer demand, i think that is a really dramatic dropoff in the demand to really allow us to get back to valuations that existed prepandemic. I think those are really some pretty dramatic changes structural changes in the economy that are going to persist even if we do come out of the covid kind of danger zone, because the consumers going through traumatic experience, companies are rethinking their preparedness for future disruptions this is all going to maintain an elevated level of unemployment it will have dramatic repercussions for demand final word, brent. I listened earlier and heard about 1999 i want to draw one difference. I think it goes to valuation its a relative tool to me people i advice have to put their money somewhere. Back in 1999, the treasury was 6 today you mentioned. 8 and. 2. If the fed is going to exercise yield curve control in the future, where are you going to put your money to grow it . That doesnt mean it has to be a straight up line im not suggesting the market isnt due for a pause, but when you look at the future and the valuation, to me its more of a relative tool and with yields that low, perhaps stocks deserve a higher multiple than in the past until we get some repricing of the bond market the other part i come back to a small swath of the s p 500 its driving valuation and there are opportunities and things no one wants to buy right now its a good bull bear debate. It frames nicely what weve talked about thank you both for joining us. Thank you thank you good stuff. When we come back, the American Airlines ceo is going to join us to talk about what Corporate America can do to solve racial and income inequality even as the shares of the company at the 1325, about a twomonth high back in a moment our next guest says the recent looting in stores is a, quote, kick in the gut for Small Businesses as they try to reopen in the wake of the coronavirus pandemic hes an investor and adviser to more than 30 Small Businesses. Good to see you. Thank you for joining us weve talked to you and a lot of Small Businesses about the impact of the pandemic on business, especially those that didnt have access to capital like large public companies. Now we have these riots and the looting. And as you point out, theres no Government Program to help compensate for that. Thats right. Theres no ppp for the economic disruption thats happening from the social side. But heres the thing the president s Economic Team has to get out of the bunker and start walking up and down main street theyll see Business Owners went from having a closed main street to a boarded up main street. The recovery that were all hoping is going to happen around election time depends on one thing. Jobs and heres the job with jobs that people are missing i think in washington d. C. What happened in march, april, and may was not just people getting laid off as a result of covid there was this massive right sizing thats happened among the Business Community Business Owners figured out they can do the same or more with less resources the baker can make the same number of loaves of bread with 12 people as 14 people even if the economy comes back, jobs are not going to roar back. When youre driving down the street and all you see is plywood, that affects your view of the future. When people think about hiring more people or capital spending, theyre thinking about what is 2021, 2022 look like theres so much uncertainty as a result of whats happening with the George Floyd Protests that are happening. Its not just about george floyd, its about systemic racism that creates uncertainty and then that baker is not going to buy that extra mixer and that baker who thought maybe i can get by with 12 employees, maybe 10 is it too glib to suggest that businesses leave cities, leave urban centers . The Business Owners have to make a living too of course and i dont think our cities are going to dry up. I dont think anybody thinks the cities are drying up this is an issue of how the pace of the economic recovery and whats going to happen is we are going to recover but were not going to recover at anywhere near the pace that people think because of the forces that i just told you about. Its all about jobs. And by the way, when you combine high unemployment which leads to Less Consumer spending with a massive amount of Consumer Debt that weve never seen before, youve got the twin effects of those two things that are going to come together sometime around q 4 or q 1 of next year. Professor, its sara. Youre the ppp expert. Congress did last night pass some new changes, the flexibility to that program allowing Small Businesses to, for instance, spend less of the loan money on payroll, to make the payroll deadline last longer how significant are the changes . They should have been listening two months ago we were talking about it they made two significant changes which are important. One is they extended it beyond 8 weeks. It was fanciful to think that 8 weeks was enough, and they ended the nanny state where the ppp program said well give you money, but you have to spend it in an exact way. Were not going to let you the ceo or Business Owner decide how to spend it. They relaxed those those are significant changes. One of the reasons that the second round of ppp is only about three quarters spent, Business Owners said the rules are changing by the week and i cant afford to take on this debt if i dont know if its going to be forgiven while i applaud the Treasury Department for making the changes, it is really sort of nine weeks too late. What about any deadlines coming due how long does this ultimately run, for instance . Watching in light of the unemployment numbers we got today, another 1. 8 Million People filing unemployment claims the bonus unemployment only lasts another month. What deadlines do we have to watch as far as the Small Business loans this is what goes to the point i was making earlier about uncertainty. We dont know whats going to happen in july, august and september for exactly the points youre talking about Unemployment Benefits. Employers and people who need would be out spending money are going to be much more cautious that goes back to the baker who is only going to hire 11 people instead of 14 people those three people arent going to get a job and because they think they might not get a job today, theyre not going to be spending the kind of money they would this is contracting the economy. It will come back. The sky is not falling, but it is not going to come back at the level the president s economiced a vie vors are telling anybody im sure a lot of the folks you advise have had to deal with worker who is they would like to bring back but obviously are not coming back because of the benefits theyre getting right now. The labor secretary says the idea of a bonus to encourage workers to go back to work is worth considering. Do you think its worthwhile its an interesting concept and true i remember sitting in with a company that was doing a layoff. The employees thought it was not such a bad deal. It turned out they were going to make the more money the next day on Unemployment Benefits we have that problem this goes back to the nanny state where we try to manipulate peoples behavior. Were going to pay you a bonus to get back on, and you need to spend your money a certain way and this hyper management of the company is not helpful to Business Owners who need liquidity and theyll get through this i know how to run my lumberyard. You dont need to tell me how to run it nanny state is a good way to put it at least a lot of our viewers think so dave, thank you for that well look forward to checking in with you again soon sara carl, time for our etf spotlight. Today a look at the regional banks, ticker kre. Erasing losses on track for a sixth positive week. The top holdings in the green pnc, regions financial and truist all trading positively today well take a quick commercial break. Nasdaq 100 hitting an intraday high things have taken a positive turn dow s p and nasdaq all green well beig bk. Rhtac some Companies Still have hr stuck between employees and their data. Entering data. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Ahh, the weirdest. You make everyone around you crazy. People are normal and then they hang out with you and then theyre Jack Nicholson in the shining. Im gonna tell my mom you tried to drown me. Its an above ground pool. Youre like eight feet tall. Welcome back lets get to sue for a news update good morning, everybody heres whatshappening at this hour new orleans st. S quarterback apologized for saying last night he opposes kneeling during the national anthem. On instagram he wrote, quote, it breaks my heart to know the pain i have caused. Jim mattis is blasting the president for what he says is trying to divide the nation and for leading the country without mature leadership for three years. President trump says mattis was overrated and incorrectly said he fired mattis when he really resigned sergeant properties is suing the gap over more than 65 million in missed rent payments. Stores closed since the pandemic began. Go to cnbc. Com for more on the retailers struggles and also a preview of gaps Earnings Report which is out this afternoon. Well watch that one sara, back to you. All right sue, thank you former whole foods ceo and founder walter robb joins us on the other side of the break to talk about what consumer changes were seeing as a result of the pandemic dow is now up two points a grandfather of 14. A newlywed. A guy who just got into college. Thats why behind these masks, Johnson Johnson scientists are working to accelerate development of a covid19 vaccine, drawing on decades of experience responding to Public Health emergencies like ebola and hiv. For the life behind every mask, the clock never stops and neither do we. Welcome back nationwide protests were largely peaceful yesterday after more than a week of civil unrest and months uncertainty during the covid19 pandemic, many businesses are now struggling to decide the best path forward for reopening and solutions to the two american crises joining us now is the former whole foods coceo walter robb its great to have you on board. Thank you for joining us do you see a big shift in Consumer Behavior here we were just starting to see some green chutes as a result of the reopening of states, the demand that was there as far as what were seeing now with the civil unrest across the country. First, a shoutout to the retailers who have stayed open this entire time a fantastic job continuing to serve their customers and their communities. Yeah absolutely its a difficult time to be a retailer and to be in business with the potential store closures and the covid19 coming back potentially all those things that present real challenges. The protests, of course, are a proxy for a very deep concern in the country about where we are, and with not just racism but also kind of where the country is overall in terms of being divided. Its a challenging time to be in business, but also one where theres a chance to step up and serve your customers i know youve been sort of talking and giving presentations about how the world is going to permanently shift. And your industry is going to permanently shift as a result of the pandemic what do you think about seeing lasting changes to Grocery Stores and the safety of the essential workers which this pandemic really shined a light on. It did shine a light on it. It put the food system squarely in the headlights. And recognizing how essential it is to go to the Grocery Store and how essential the workers are that make that happen, but also on the supply chain that the difference between the Restaurant Supply chain and the Grocery Supply chain and the challenges also on the areas in which we need to work harder to make a safer Work Environment 100 were not going back the digital switch, the adoption weve seen in digital and Online Grocery do the math, its overwhelming in terms of the demand there and the changes i dont see going back to analog retail, but i think the changes have been made around first, safety first and foremost. Second of all around layout and how you plan for the number of people in the store, how you merchandise product around even the economics of being a retailer folks are having to experiment i was at a store the other day the sign said were out here doing business from 10 00 to 2 00, were experimenting. Some of the changes around what retail looks like on the other side, these are going to be permanent chips this we dont have a vaccine in sight. Thats a line in the sand. I think the question is how do people feel when they go out shopping or go out doing anything folks are a little bit uncomfortable. I think this thing is slow and unfolds unevenly and businesses have to find a way to be agile and adapt and respond and serve their customers . Cht. You mentioned the supply chain. We got to see some of the vulnerabilities there. Certainly in the meat slaughter houses and the problems there. If we do have a second wave in the fall like so many medical experts are warning, is the supply chain going to be better prepared this time are they taking measures right now to prepare whether its in dairy or meat or packaged goods . Well, i think thats one of the things thats been exposed was the fact the supply chain was bifurcated between the restaurant world and retail world. Folks are trying to figure that out. We saw for the first time i can recall people running out of certain products and that was true for other stores as well. Resulting in the kind of reducing the number of items they offer and trying to tighten up the supply chain to be in stock. I would hope weve also seen obviously the safety issues that happened with respect to some of the larger production plants i would hope that any responsible retailer thinking about now preparing for future of the covid or future pandemics and has learned lessons about building redundancy in the supply chains. I think those things are happening so i think so. Its one of the challenges that showed up. No one could have anticipated the demand spike that happened were talking about a surge that was in some cases 100 over what anybody had seen and it happened fairly quickly its fallen back to hoarding and its still online at 60 if you look at the Earnings Report to some of the Public Properties youre seeing the tremendous spike and really supply chain has not yet caught up with the online surge but i think its something where the were seeing folks adam the system is largely stabilized except in the protein area where its shortage areas. Do you realize that the protein demand, im talking about meat and seafood up Something Like 50 year over year as folks shifted off of restaurants not having open or available, theyre gone to cooking at home. Were seeing a situation where ten years ago, maybe 41 of people cooked at home. Now its over 50 of people. They go out and buy the things they need and prepare their meals with their families. So its put a lot of pressure on the supply chain although, walter, i mean, i dont need to tell you, people are cooking at home, doing the dishes at home theyre not leaving their home how high is the risk of exhaustion of doing all of this yourself of relying solely on food at home and how much of a bounceback would you look for once it was clear that dinein was possible again yeah. Thats a great question. I think that you are seeing people reach the sort of end point of staying inside and theyre sort of wandering out at the same time balancing their safety but i would expect that if you look at the nielsen data, some of the baking categories, 70 . You see some of the shifts for people rediscovering the joy of cooking. Theyre going to come back out being with other people, being in restaurants, being out in the community as part of being a human being. And we would expect to see folks come back. Thats already happening in some cases. State by state, its unfolding differently depending on the rules in the different states. I think people have rediscovered the joy of preparing a meal with your family. Im looking at a data in terms of the categories that are selling. Im looking at it in terms of the fact that retail Going Forward is going to be its much less of an experience now at a store because you come in. You have a metering coming in. You have plexi glass shields up. The heart of retail was the one on one connection with the customer, and it cant happen right now the same way its going to be some time before all that stuff works itself out so going to the store is not what it used to be you dont sit and have a cup of coffee and have a meal you get in there and get what you have to do theres much less trip, higher basket, but less trips the difference is they stay at home and cook. Thats what the data shows clearly. That leads me to my next question at least in grocery, when you look at delivery and you look at pickup, how high can that number get relative to total revenue and what does it mean for store footprint . Are we going to see stores shrink or are grocers going to try to work their way through this with the stores they have thats a great question were probably less than 3 of penetration on Online Grocery and we all started i would put us closer to 10 and we might hit 15 this is where i think the tectonic shift thats happening in retail. I think you recall on the microsoft earnings theyd seen two years of Digital Adoption in two months and were seeing 40 of americans now Online Grocery ordered. I think theres a point in there where we pass it they dont go back if they adopt the platforms in the east because its convenient or they dont feel safe going out. Were seeing a massive shift and those that have the digital capabilities are either having to get that or its difficult on the other side so i think the wholed in of Grocery Shopping and what it means has taken a shift here as folks have adopted the online o orders frankly while the traffic is down the basket is up, we still havent been able to fill the demand for Digital Grocery delivery theres lots of options. The fact is that you do the math in terms of the number of americans and the number of times, the online slots are hard to get, and so we have a lot of capacity to build. And it caught us flat footed i expect the Different Companies offering that. The last economic dont work on that. Theres the question of who is going to sort out the business proposition for that but the customers say they want it and the your job and business and retail is to follow and serve the customer thats what the customer says they want right now. Yeah. And even with that growth, walter, and the fact that weve seen the trends, mackenzie put out now data showing even in the cities hardest hit by the pandemic, 7 in 10 people continue to visit stores for essentials and groceries and in states that relaxed restrictions, its 8 in 10 people groceries are a thing where people want to pick out their produce and feel their fruits. Im wondering how much of the category is going to permanently change well, its a great question we dont know. Its music to my ears to hear you say that as a lifelong grocer, i dont think theres anything better than having people come in and being able to sample a papaya or show a new product or Something Like that. And clearly, what sort of shifted right now, you have to line up. You have to meter to get in the store. When you go in, you stay six feet apart you have shields you have techniques and tactics that the stores that are adopted to try to keep the environment safe but honestly, theres not as much grocers have skinnied down the selection of products. I think i saw staff the other day, normally its 16, now its 35,000 items and i think people generally are going in there and theyre not doing the type of discovery or sampling they typically do but yes, were human beings. We love the connection the heart of retail is the one on one chance to serve and help the customer with what they want or help them find something delicious for their meal its harder to do that right now. So we have about about 24 square feet of retail per capita in the United States that number around the world was somewhere around 10 or 12. Were going to see some consolidation of retail space. Theres going to be less demand for retail space i didnt say less grocers. Maybe a few less, but thats all retail, and were still going to see Grocery Stores built out but retail is going to go through a consolidation, and the retailers that dont have digital options or theyre going to be challenged to make their way back and theyre going to have to experiment and adopt but we are going to see a shift in retail and retail groceries as a result of this conclusion think about it you have not just the science which i frankly find confusing and going around every day i find that the economic dislocation thats happened as a result of this covid, which is which i dont think weve seen the full brunt of yet well see it over the next couple quarters. You have the civil unrest and the protest. Its opened up a deep disquiet and whats going to happen about that and Companies Finding their way with a need to realize they cant just not Say Something about it they have to Say Something and do something about it. With their team members and also with the communities at large. Were seeing that in the last and on your show and finally just the all the things working together, weve never had this sort of confluence of factors in our lifetime of business we havent its hard to say its an uneasy road ahead. Walter, just finally on amazon and i know youre in the involved anymore and you sold whole foods to amazon. Wondering how youve been viewing the recent concerns and complaints and now lawsuits from amazon workers over warehouse conditions and protections around covid19 and whether you have any concerns around whole food workers as the stores have remained essential and weve relied on them yeah. Again, my connections are still there with whole foods and being a part of amazon i think they could have done better with respect to communication and made it more personal i think ceos are really putting their heart on the line with this situation out there i think that sort of thing is really appropriate right now in terms of people connecting with their brands but i also think look, the demand has been ridiculous in terms of the problem and it came out of nowhere theyre taking a lot of steps as quickly as they can. The metaphor i used is were building this bridge as we drive over it. Weve never been here before, and youre having to make stuff up every day in terms of how you deal with this is it is mask or shield . What do you do thats a challenge and you have to say most of the times, including moingz, theyre doing a good job taking the steps they can to keep people safe in an environment where theres so much change and demand on balance, i think theyve done a reasonable job trying to meet the demand of the customer walter robb, thank you for joining us thanks for having me. Have a good day former ceo of whole foods david . All right sara, thank you. Shares of nkla up 8 well speak to the companys founder and executive chairman on this first day of trading under nkla now this is out there as a Public Company with the name and the symbol and the executive chairman Trevor Milton will be our guest next r right now. And right now, is a time for action. So, for a second time were giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus warns the worst is not over yet and he has a chart to prove it more squawk on the street coming up. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Welcome back the cnbc road back barometer has the best day since the beginning of the covid pandemic for details Steve Liesman which has fascinating internals. I know you work hard at this yes thanks, carl its a labor of love we have this high frequently data its volatile and we try to work with it to show actual Economic Trends this data is most of it is from the second of june we never had that kind of Economic Data before it shows the best day weve had for the yelp store openings that weve had since we began tracking this. Up 7 on average nationally. We also track new infections the threeday average new infections as a percent of prim. Thats at 68 . Were averaging driving searches searches for driving directions and walking and transit directions provided by apple at 82 of january 13th. That again, is the best weve tracked with some improvement in transit or Public Transportation there. Lets look at a map of the yelp store openings you can see the degree of it the lighter colors are the states where the stores are opening at the fastest clip there. Up 10 in places like utah and what is that there north dakota, south dakota, idaho, places in the middle of the country. Toward the edges, there is still store openings of california in fact, 47 of the 51 states plus d. C. That we follow had met store openings and that is the first time weve seen that large a number there was kind of a false start in early may that led to renewed closings we have not seen much of the demonstrations yet we did see one tick up in the d. C. Area for store closings right there. Now, lets look at some Additional Data were following which is new data. Jpmorgan now putting out credit card data. Were looking at this every day. This is from date last week. Theres an interesting difference here. The card present data has flattened out after rising a little bit but good numbers for the card not present. People are spending but still spending online. However excited you get, theres a long way to go yelp is counting 144,000 Stores Closed around the country. The data would expect to be open were moving in the right direction, and carl, maybe the best sign here is we used to call it the yelp store closings index. Now were calling it the yelp store opening index. Lets hope we can continue with that name for many weeks and months to come Steve Liesman, thats good news well continue to watch it later today on the closing well, tim ryan today, 3 00 p. M. Eastern on how that company is not just providing donations to the causes here on the civil unrest, but also some Innovative Solutions for their hundreds of thousands of employees including paid time off to volunteer with social Justice Information thats at 3 p. M. The market is positive, but just barely hotels and casinos on the Las Vegas Strip begin reopening today. Kyle wilcox is on the ground with more today. Kyle, we appreciate you being our eyes and ears on the strip tell us whats happening reporter well, as of now there hasnt been much foot traffic out here its kind of an exciting vibe here as several hotels and casinos are getting ready to open in a couple of hours including the bellagio they had the fountain on earlier. There have been some people walking through. Not a huge crowd but it is still early. Hotels like caesars palace, mgm grand, the cosmopolitan and several others are opening their doors today. The bellagio is opening at 10 00 a. M. Others are separated to open atg when hotels like the d and golden gate opened their doors at 12 01 a. M each of the hotels are opening with new safety protocols in light of covid19 to help employees and customers feel safe some require masks at poker tables while others leave it up to the guests to wear one or not. A hose postalty professor says the reopenings will give nevadas economy some life. We know its not going to be june of 2019 and were not going to see those numbers but what we will see is were going to start to see a return to normal. Now the fountain show here t bellagio is set to kick off at 9 30 to celebrate the reopening. Kyle wilcox, back to you kyle, see how it goes, thank you. Coming up at 11 30s this morning apple cofounder steve w wozniak. Stay with us on squawk on the street. Nasdaq the best performer of the three major averages only up 0. 1 a newlywed. A guy who just got into college. Thats why behind these masks, Johnson Johnson scientists are working to accelerate development of a covid19 vaccine, drawing on decades of experience responding to Public Health emergencies like ebola and hiv. For the life behind every mask, the clock never stops and neither do we. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. Welcome back shares of nicola corporation making their debut we spoke to the companys founder and executive chairman Trevor Milton before the pandemic hit and he joins us yet again. At the time you described the company as a technology, energy company, and we learned along with our viewers in terms of your efforts in trucks and Hydrogen Cells and the whole vertical integration, but lets talk finances now since you are now going to be judged on your ability to continue to grow. You lost 89 million last year youre going to lose money this year when are you going to start to see real revenues . Our revenues come about the middle of next year is when our big revenues really start rolling in our factory in germany comes online next year the pandemic slowed us down a couple months europe still shut down and we cant get to our factory in europe once that opens up in germany we will get going looking like a couple month delay next year, Third Quarter well have trucks rolling out of the Assembly Line in germany. When we last spoke again as i referenced early march you talked ate an 800 million order from anheuserbusch and mentioned there are orders many times bigger than that is that still the case and can you tell us about any other orderses theres a lot of really good interest and customers that are wanting the trucks the hardest part right now is trying to figure out how to deliver them with the infrastructure going up at the same time. For your audience real quick, we have the Hydrogen Electric truck that requires the Hydrogen Networken network to be built and the battery electric truck which does not require infrastructure. The battery off the Assembly Line will be delivered to customers throughout the country, the Hydrogen Trucks were working on those locations and why the difference, hydrogen goes further than a battery electric truck does and its lighter to operate they hit two markets its a lot of juggling the Different Things but were close. We just ordered the largest order ever of electrolyzers that i know of, an order yesterday over 30 million to produce over 40,000 kilograms of hydro gren we made that order yesterday out of norway. Were prepping our first five stations to be up and running and should be breaking ground on these stations this year. At what point would you share with us that you told me, you were ready to announce orders many times bigger than the 800 million order with anheuserbusch were close ill tell you what as soon as were ready to announce it well give you a ring so you can we can revisit that in person again, but its close. Its really close. Were trying to deal with a lot of logistics around with the customers, the pr, Everything Else its coming soon all right you know, clearly from what you discussed in terms of your purchases its a capital intensive business youve raised a good amount of capital, but are you going to need to consistently hit the market in terms of selling stocks and raising other capital . Yeah. It is a capital intensive market but what a lot of people dont know is this, we dont the most extensive part of our Business Model is the Hydrogen Network and ours most valuable aspect of our company because were an Energy Tech Company these hydrogen stations we dont just go put them up with speculation. What we do is we presell, like 500 trucks on a route. With that route we can afford to we sign the customers up with leases on the trucks and sell the leases off and then we can pay for the network with cash we definitely will have to go raise money down the road. We raised a billion almost a billion through this ipo in some of the other offerings so we have a lot of money in our account and no debt, but no doubt we will have to raise more money. That will come down the road once we hit benchmarks and then the investors once they know youve hit your benchmarks they open up their pocketbooks at that point its all execution thats were right on the edge of that right now. Right i know ill ask the question in terms of competition, the likes from tesla, but your point would be, i suppose, that you are vertically integrated and its not just about selling somebody the truck as you say but selling them the entire energy system. Yeah. I think the coolest part about nicola we make five times more revenue per truck than daimler does. Thats why you see so many people excited when peter built sells a truck the Oil Companies make three quarters of a million on that truck in oil clapping every time peter built sells a truck. With nicola, we take that away from the oil company and bring it in house. Hydrogen zero emotion revenue. Thats the coolest part about this, five times per revenue for each truck sold. Youve had an incredible success, 135 million shares at least according to the proxy of this company that makes you a very wealthy man. Youre executive chairman. Are you going to plan so sell any stock . Can you make a commitment to those who have invested in your idea youre going to be around leading and fulfilling on the execution of the company youre putting out here my number one goal is to execute this vision. Its going to take tifive yearst really after five years there wont be much more need for me its not that im planning on going anywhere but im an invo nater. My number one thing is to put things together no one else can do in the world and see vertical integration no one else can see and i bring the way smarter people than me around me to help me execute it. We at this merger, we i moved over from ceo to executive chairman and founder the ceo still reports to me but i brought in one of my favorite people in the world, mark russell, used to be the president of Worthington Industries he will help me execute this vision im right along his side and locked up for a year on almost all my stock i dont really want to go anywhere my dream would be to stay here as long as i can and needed. I dont know if that will be much more than five or ten years. At that point its just building factories and thats not what im good at. Im gloods at complete transformation and disruption. I hope i can give them everything i can do in that time period where theyre successful. Were going to be paying close attention, trevor. We look forward to further conversations as your vision progresses to reality. Thank you for spending some time this morning. Its an awesome day today first day traded on the nasdaq so