Ali. The session high was 3088, we lost a fair amount of ground from the first high this morning, the 200 day moving around is 3013 that got violated briefly and we will see if this hospitals. Yeah, and the stocks, we will see if it holds. Bob, good morning, good to see you. Thank you, happy friday happy friday, now you said that to you, yesterdays decline was no surprise. What about todays pop which is quickly fading now what does that tell you about what investor strategy should be i think when you i did klein the amount that we did yesterday, and have some sort of bans, that is not out of the ordinary at all. Im a little surprised it is not Holding Better we were very over bought as i heard in the last interview and i agree we had speculation cream in it felt like because the market was a v bottom that the market was off and running and it is off of the bottom but it will not be a straight line, it will be bumpy im more concerned about the election than the last interview. China, you know, i think that is going to be a lot of puts and takes and well be volatile, collect our where abouts if you will by some of the big gains that we have seen. It is september estimating always to try to explain why the market did a particular thing on a particular day, i think 90 of the time theyre wrong but how much do you think the market is relating to comfort related data, or as opposed to political polls . Yes, all of the above i think the coronavirus news was the catalyst because remember the fed chair talked the day before and that did not cause a big sell off i think it is only in the last few days that participants are starting to focus on a democratic sweep, i think that means noticeably higher taxes for corporations, for high income and high wealth individuals. So reregulation of some of the regulation thats have been taking off and that will be a big change so it is a collection of things along with a overbought market that was ready to have a pin put in it for food. It is almost as if if there was a over arching head line it would be more uncertainty. Thats why i wonder if you see dips and pull backs do you buy and if so where in the market . You know, so my view morgan is that we probably have some more downside to go. I dont want to get overly religious about that because the bottom is in so yeah, i think if i have dry powder on, you know when you see the market down 7 , i have to buy a Little Something i think you need both and not either or in the portfolio i want to own some health care, i also want exposure to the economy. You need some of both just to make sure you check your valuations and you have reasonable insurance i want to hear your thoughts on the other big discussion points of the week and that is retail investortivi activity. The possibility of missing out, being under invested, and now were seeing a surge in retail and mind you that part of the reason it has been a discussion is the names that we have seen investors pile into, but how do you think about that shift is it good, is it bad . What would you say to some of those perhaps newer investors in the market i would say overall it is good we have a lot of cash on the sidelines, we have players not around before, and they just came on so fast in the last few weeks, the last few days you saw that with some of the new issues that were already expensive and that is part of the pinpricking the pballoon fo a expertise the whole fomo t get people into trouble. Bob, really quickly on china, there is an ongoing theory that the administration doesnt want to saber rattle on china do you think that dynamic economists and what is the real risk for the administration . That is a great political and economic question, i think, karl President Trump wants to win reelection he know its is popular on both sides of the isle. I think in his bones he feels it, anyway, but he doesnt want to do it at the expense of the market or the economy of fear. I think you will see more china mashin bashing. I think two candidates will blame each other, i think you will see more of it. Actual action . Probably not a whole lot between now and the election we have to maintain what we got before we threaten it in some way. Yeah, and then sort of interesting with the the potential impact on tech, you look at zoom today and theyre being criticized over their account closures theyre being asked to clarify their relationship with the Chinese Government and the stocks are up. Some people are jumping in seeing they got a lot of good things going the business fits the environment. But youre right with all of that news you might think they would have trouble today but the trouble was yesterday. Strategy wise, i wonder what you think about the big tech stocks that drove the earlier rally at the end of last year and into the beginning of this year and held up so low. What are the major headline risks or the broader Economic Risks to them. If not china, then what . First we have to recognize that most of them have a pretty Good Business model that gets hurt less and enhanced in the wake of ko vcovid. So they are gaining market share. The headline risk is that youre big, and youre not paying your fair share, aim going to come collect mine well have that for some time to come and in the meantime most of the Business Models are doing really well as you know. Is it less of a risk in the near term because washington will be focused on getting elected or reelected or is it a risk because that red meat rhetoric might help in a political season. I think it is the fact they will bash on these companies, it is popular with the rank and file so that is a popular that is a populous reaction. But i think investors know that it is talk and nothing will happen between here and the election im not sure the stocks will react. They will react to the business results. Post the election well see how things settle up with amazon well see if that changes. Have a good weekend, good to see you. You the same. Stocks rebounding back in the green today following the dows nearly 7 drop yesterday we are pairing some of the gains. The dow had been up more than 00 at session highs and now a similar situation for the s p that is hanging on to a gain of 1 right now were going to get some perspective after the break from a legendary floor trader, stay with us. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. 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. The down is up 290 art called that this morning at the beginning of trade thanks, art, always a pleasure to chat with you and i look forward to eventually seeing you in person i guess the key question is what is your thoughts on all of the volatility this weekend. Is it considers about joutt breaks it is a combination of things you get my premorning comments and luckily it has been obviously. I think a good deal of that is the Market Participation being, if you would be, amateurs. People new to the market that is why you saw all of the buying in the stocks that had been hit the most and at the stop of the rally when things reverse, the short selling was in the same stocks and that tells me that the yesterday selling was so vicious i think what you want to watch here is the s p 3,000. But 3,000 will tell us where we might go for a couple days the buying and trading, as they say, looks like it was millennials. We dont have that for a fact, and that they were playing the things that were hit the most i think right now the most critical thing in the market is the virus itself there was an unsubstantiated rumor that there was a outbreak in china so we will watch the market. For those of us that are sherlo Sherlock Holmes traders, well watch them protect themselves with stops, and it will be an interesting couple of weeks. I want to go back to that retail component and question you about that we know that retail has been very involved, but do you think that they are that big in that we always assumed it was measurable but pretty small. I used roughly 15 of the market volume did that suddenly change because theyre part of the overall movement not like airline and bankrupt stocks . I think they had a slightly disproportionate influence you cant, unless, you know, you get the figure from a ubs, from a merrill lynch, from any of the firms about what their clients are doing it is tough to get so what we do and i have been doing this since mr. Buffett got in the game, but he had a little Better Success than i have, you play Sherlock Holmes you look at the evidence, what does it tell you it tells me that it is not so much big professional money, not so much mutual fund reinvestment, this looks like it is investment or trading that is trying to play the trend so that tells me that yes, the millennials are the amateurs in there. As to what percentage, i think it is less that they have grown as a percentage, but more as a bank that theyre a larger percentage of a diminishes game. I think some of the other players are not as heavy in the market so that having been said, as i wrote this morning, i think they came back in first. So we will see where we go hey, art, im curious about how youre viewing the virus data right now mnuchin with us yesterday. They made the point there will be no second shut down are they shrugging off the case load data. No, not entirely. We had the first government redued session and that was that people didnt get laid off because business slowed down, they said close your restaurant, close your bar, Start Holding things back. So the government basically started to shut things down. Mnuchin and the president are saying were not going to forcibly do that again but what you have to be ware shl of is that the public to a degree may do that if there is a outbreak of people already Walking AroundWearing Masks and they become concerned they will come to the store less and less they will did b transacting less and less it may be an economically thats what we watch for finally we keep asking this another note from another firm, it seems like the risk of a blue wave, do you see that as a more important dynamic for markets . Yeah, i think it will become more important so far. The election has not been a factor and the virus has super se superceded it. I cant recall a time when the streets were as empty with people areaing masks and what not. So the dominant factor is this virus and what were doing around the economy and the virus, the election will be more and more important does it look like the president s gets back in, should the democrats sweep the house, what changes will we see all of that will become a factor i think for the next couple of weeks. It will be virus and market independent. It is bearing itself out with the action that were seeing look for a midday test and that is what were getting. Well see you later, morgan. Blind squirrel finds an acorn once in awhile have a great weekend. You, too, always great to get his thought. As major averages slip closer to the flatline, lets look at the biggest gainers. The worst Weekly PerformanceVideo Game Companies are up. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. European markets are set to close in just a few minutes. Seema mody, it was looking good. Yeah, after witnessing a 4 drop yesterday, none of them stopped wall street strategist from seeing opportunity in europe a 20 upside in exquit quities. Next week europe is taking a giant leap toward reopening for summer travel. They are lifting their travel ban for 41 mur mean countries. European companies also across Different Industries joining growing calls to address krashl injustice. Some of the real known names in fashion, along with automakers bmw and mercedes doing the same. Henry kravis is going to join me to talk about how wall street firms can do a better job embracing diversity. That is a big interview, well see you then lets get to sue herrera this morning. Good morning here is what is happening at this hour louisville planning to ban no knock warrants the legislation hob nors Breonna Taylor with this law she will get to continue to do that. Were grateful for that. She would be so, she would be so happy. Oregon pausing reopening efforts amid a new daily nigh covid19 cases they will investigate the causes of the spread. And British Airways will auction off millions of dollars in art work it to help off set the impact from the coronavirus. John, i looked at some of that art work and it is pretty darn nice millions of dollars worth. Lets get odd check of where we stand in todays trade. The nasdaq has given up all of the gains, up less than 1 dont go awhe. Nyer were back after a quick break kpts music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Welcome back to walk alley. Lets break down some of our winners today with our panel thanks for being with us today guys before i start digging into effect names that you cover, first i want your thoughts on valuations and just the big runs that we have seen and the tech names that you cover overall especially given that tech has really bled the rally. What do you think of the valuations here, what do you think of the oves, and how muc further can the stocks that you look at run . I think covid was good for some mass aggregators. It put Small Businesses out of business because they dont have revenue or they dont have a Balance Sheet to survive and these Larger Companies have no risk of financial distress. So theyre a safe place for investors to hide. Brandt, the same question to you. Yeah, for software and internet, multiples have gone up 20 , but i think the recurring revenue that they offer is pretty incredible. So no one wants to leave software right now for internet we think there is more room for multiples to go higher amazon, trade higher, the multiples are not as outrageous as they are in software. I think the next leg has to come from fundamental improvement not multiple, and for internet we think there is a combination of fundamentals and they can go higher and drive these stocks higher were slightly more excited right now. How strong of a stomach do you need to get in here with stocks where they are. They could be in here for a period of time here. Yeah, we had a good move, that is a good question. Im just going to say that were giving power to the software and spernlt industry he mentioned that this is permanent, this is not a short term flash in the pan. And it changes how they have to invest i think there is a more permanent tail wind that is baked in, and the questions that we have now is do they want to own aircralines or have better z ability. And the multiples are continuing to decline if you were con semped about valuation and software, you missed 20 to 80 stock booms. You were on the sideline and i dont think that is the right call were cognizant, but we also say they went to six years ago so fundamentals are the most important thing to keep focus on thats a good point there and certainly i would focus on the more important point is consumers the consumers shifted towards technology as they change their engagement profiles and spend more time with consumer driven businesses online, the pivot to Grocery Shopping online and more, it will never change now. The beneficiaries of that is google, facebook, amazon, and netflix. You have an underweight on that particular stock. We talked about the risk or rise of competition now they are out in the marketplace right now are you sticking with that rating or are your viewpoints changing here . No, we have been wrong during co covid but it is our point of view that no one can compete they are all bundled services that they can bundle their streaming services, and we dont think that net flix can survive that laura, what matters the most for apple for the rest of the year is it the ie phone laiphone lau . The shape that takes, how much they try to capitalize on 5g i think it is their media businesses i think apple plus has been unsuccessful, but im excited about arcade, their video game media service. As they bundle them together, steve jobs always knew that content sold devices i would call them complimentary. Im most excited about that. And their folks are up 35 , but my feel is that covid many make everyone feel poorer the best way to make money fastzer is to drive their content strategy forward i want your take on this grub hub deal and what i see as this interesting land skam scaplands. And them trying to deliver a lot of Different Things and trying to different one thing across the entire world yeah, were all disappointed that, u ber could not make this happen i think everyone is crashing their head i have seen incredible reporting on this. And i think they crew down harder on this, so i think it will be a tough fight. The market is big, it will support three vendors, but door dash and uber we think will take the number one position Going Forward and we think they will have a harder time and were all struggling again with what this combination is going to bring to them but i really think that we never had a guy because we believe that there was two major vendors well capitalized that are really focused on this market big enough for all three but i think there are a few others that are better fundamentally positioned okay, laura, what is the top buy right now . Can you tell me how long covid will last first . It sort of depends let me say if cov eerksid lastsl the end of the year, then i want a big blaalance sheet, i would o with apple all right, sounds good, fred how about you . In internet we like facebook. Amazon had a big move so we put facebook number one and in software we continue to like adobe. All right, thank you both for your insights today. When we come back, watching azek to public today, a maker of residential and Building Products up 18 kramer will join us when we come back in a minute yeah hey, hey we hope you find these Digital Solutions helpful to bank from almost anywhere. Deposit a check with your phone or tablet. Check balances, pay bills, and more. Send money to people you know and trust with zelle. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. From almost anywhere. Okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Yeah yyeah yeah hey, hey will the tele health continue in the boom . Investors are betting that were at an Inflection Point it is bucking the trend this week analysts say that it remains the leader in this space and has seen the market share grow to 55 over the last time last year that is still a big jump from a year ago the shares fell in the last three weeks as we have seen more doctors offices reopen in states that are open and the United HealthAdvisory Board say they have seen a fall of 30 to 50 in early may but it is still up from 50 . Just last month, micro soft joined the melt with their own offering for hospitals one key to maintaining all of this momentum is to be whether or not government and insurers continue to pay up during covid. It is unclear whether or not that will continue patients have certainly embraced the technology but here too, were continuing to see the social and economic december par disparities for health one doctor told me her lower Income Patients have not been able to yut lieds it because they dont have good broadband you cant see that doctor face to face if you dont have a good connection. From your reporting, would you see the reimbursement is the key level to determine how sustainable this is . What are the things that really make a difference in whether or not this is sustainable or if it is just a pop that fades the reimbursement is a key one. A lot of doctors essentially were slow to adopt it because they dont get reimbursed as much for telehealth visits as they do for inoffioffice visits one ceo says he doesnt think they will continue to pay at par, but he thinks you will see a commitment to paying for these. One neighbor says i can do a tele health visit in 20 minutes. Or the same ills in person. So a lightly lower reimbursement might be okay. Particular doctors would like to see better reimbursement for te telephone visits thats how they conducted most of their visits with their patients that doesnt meet everyones needs, but for people with chronic care, that will help the issue of reimbursement will be key here Going Forward. People buy online when they can get the same product for a good experience, bertha, thank you. Now lets look at the leaders on the dow this week rrore and micro sosoft in posite teity. Dont go anywhere, were back in two. vo at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. Today, that philosophy extends to how we connect with you. We call it, audi at your door. Whether a remote test drive, shopping, tradein, or even service pickup, audi at your door can do this and more at participating dealers. The premium audi dealership experience, on your terms. Audi at your door. Take a look at the shares for this it is now trading at 27 and change the biggt esipo of the week. Were going to speak to the ceo. Stay with us get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. 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. Yeah yyeah yeah hey, hey company thats are open for trade are up 18 at this time. Hey, jim thank you, carl congratulations on a Successful Offering for you and for the people who brought on the deal good to see you. Great to see you. I could not be prouder of the team im really excited by th we play in and the opportunity we have ahead us i know when jesse worked at 3m you talk about sustainability is at our core literally. Tell people what that means. It looks like the best one i can find we think we look a little better but we have more design choices. If you take look at the way the product is billed, it has this beautiful outer layer that looks beautiful but right in the core of the product were able to use an enormous amount of recycle. We expect that to continue to expand i have treks on pretty much every quarter. Tell me why i should use timber tech use that brand rather than use trex we have a degree of respect for them when you look at our company were really focused on innovation and design. We believe we have the best technology it gives you more Design Options and the ability to go wide width, narrow width and products that are cooler if you want like a Exotic Hardwood look you were have high level executive at 3m. You could have gone anywhere to any company in the world i know youre an international f figure as satisfying as you thought when i saw you with 3m first off, coming on board, you know i thought we had a great Market Opportunity we participate in secular trends and coming you could see that. You think about your car is not made out of wood but something that sits on the outside of your house. Saw the opportunity there. We have been invest in growth and recycle and were just really excited by the opportunity thats aheadof us. Its morgan congratulations ongoing public today. Jim just mentioned trex. Its probably your most direct comparable in the market i realize you youre growing and growing quickly. What does the path look like to get to profitability well, i cant guide specific to the future. We were a company with some depth. That puts us in a position to continue to grow our net income. I think more importantly, we have great margins were profitable and we continue to expand those margins and the growth rate of the company our trailing 12 growth rate is 15. 8 . Were really excited by what we build and we believe with the right capital structure well be able to continue to invest in the business and drive profitability by any of the metrics that we look at. Good morning. Its john ford were hearing a lot about increased demand for real estate in the suburbs in this covid and postcovid era whats thats going for demand for your products . What channels is that demond coming through and whether you or your competitors live out there. We had great momentum coming into this crisis the industry had great momentum. We had a lot of tail winds we have seen an increasing interest because people are staying at home, we have seen an increasing interest in out door living we seen that through our google searches right now thats driving demand and those are leading indicators for the next couple of years the more people engaged in the category in general, weve already had really solid trends coming into this pandemic. Jesse, if you come to market last couple of years one of our first questions might have been about cross border trade, sort of supply chain risk when it comes to commodity and raw input. How acute are those concerns were fortunate its by design we manufacture in the u. S. We manufacture in pennsylvania and ohio from our perspective we sell into the u. S. And canada and focused on the residential repair markets in those areas. We continue to operate and you know, maybe in my prooefrs life, that would have been a more pronounced part of the business but we really just been fortunate with our u. S. Based manufacturing. If i want to take a look at your product sample, do i go to a home depot do i go to someone who puts things together . Perhaps an actual contractor or go to your website and order some samples obviously you can do all these of those over the last 20 years we billed what we believe is a terrific foot print where were able in 4200 available in all of the retail sides that you just mentioned. We find a lot of consumer starts their journey online and you know, as they are verji ingreset and looking at design ideas, we feel thats a great place to start. In general, people start their journey in different places. Ill make a comment. As we look at this particular industry, one of the challenges has been it can be difficult to, you know, enveision and imagine what your outdoor looking area would look like. Thats what i wanted to you what is the key to con vertsing that interest that you said youre seeing through things like google searching as people are looking to nest or spend more Time Outdoors whats going to be the key to converting that whether its you or one of your competitors is it going to be the consumer the sense they will know what this is look like . Is it shipping them the materials . Is it having the installer who have knowledgeable about your brand . Are you able to do that at a time of distancing first, everything you described are elements that we continue to invest in. As you rightly pointed out, theres not only an opportunity to capture the digital activity that we see but theres also 80 of the market is wood. Thats converting every day that goes by into more and more of our products we believe theres a Market Opportunity. As people visit our site, its really important they get a sense for the product. They will be able to design the product and get a visualization of the product as you pointed out, part of the area that we continue to invest in is really making sure that were able to support people weve got a call center. Weve got Additional Resources on the ground. We have expanded our sales force by almost 90 people in the last couple of years. All of those resources are being built out to make sure we can be able to support consumers as they go down this journey. Its an important part of the house. We want to make sure they have an opportunity to really understand it, experience it and get educated the more that happens, the faster the market grows and the faster it converts to our types of materials jesse, one last thing the younger investor care tremendously about sustain blts. Were terrible recyclers in this country how can you be sure that youll get the product you need first, we continue to invest. You know the consumer may not be perfect at recycling at times but unfortunately theres a huge amount of product available. In general, we view that as a great opportunity to make a real impact on the world. I want to congratulate you, all your shareholders, company and your family for the success today of the azek deal i think people who tried the product, as i have, will recognize its a great thing to be able to recycle instead of throw away and have such great looking product. Azek company congratulations, sir great thanks for taking the time look forward to chatting more and thanks again for everything. Carl. Well see you on mad money tonight at 6 00. Lets get to the judge jims welcome to stay if pe wants to stay for part of the a block. He can say welcome to the Halftime Report what it all says about where the next stock could be. We debate that