Wear something new from starbucks could ramp up the nonmeat meat wars it is tuesday, june 23 good afternoon. Welcome. Inbri i am Brian Sullivan futures are up triple digits again. Dow indicating a gain of about 200 points it is early but it wasnt always this way you had comments from white house advisor Peter Navarro yesterday telling fox news the trade deal with china is over. Do you think that president sort of he obviously really wanted to hang on to this trade deal as much as possible and make good on the promises because there had been progress made given everything that has happened and all the things you listed, is that over it is over. Apparently he had some comments there but what he said was that the trade deal was over that sent stock futures down nearly 400 points last night the white house quick to walk back those comments, however, and put markets at ease. The president tweeting last night, the trade deal is still on if china can live up to its terms and in a statement to cnbc, navarro clarified saying, quote, my comments have been taken wildly out of context. They had nothing to do with the phase 1 of trade deal in place i was simply speaking to the lack of trust we now have with the China Communist Party after they lied about the origins of the china virus. Nasdaq extending the win streak to the lucky seven. Technology remains in the drivers seat. Netflix, adobe, microsoft, apple, nvidia hitting new highs again. Look at oil, the recovery there with the continues drop if supply Oil Yesterday finishing above 40 for the First Time Since the lockdown began we are above that again, 40. 85 better than zero we have some breaking news in germany, the former ceo of one of germanys formerly Fastest Growing companies has been arrested as more than 2 billion in cash has gone missing. Well go to karen. Yes, we are closely watching the wire card story. The fintech giant in germany the latest is the arrest of the ceo who stepped down on 1. 5 billion euro are missing on the boards behind me, this was encouraged on the clarification of the u. S. china trade deal we saw the Business Activity where we have output falling the dax trading up more than 2 . 1. 3 on the French Market gains across the boards. We have the 113 handle and we peels a little lower on this session. Walking back the data where we have the eurozone composite in june has hit a fourmonth high that is up from the 31point high breaking down to certain areas in france, manufacturing at 52. 1 in expansion territory even though we have the reopening of the economies particularly on the Services Side that said, economists saying that was one piece of data not all the correspondents had been filling in these forms. Take that with a grain of salt look at how strong the stock trade is autos, that is quite telling german autos not quite back in to the swing of things back to you in the studio. Thank you new this morning, state side Texas Governor telling his state, quote, additional measures are going to be necessary if daily cases and hospitalizations continue to climate their current rate we have that story and other top headlines on this tuesday morning. Good morning good morning. According to a cnbc analysis of data, hospitalizations are growing in 14 dates with states like texas reporting record breaking spikes. Nearly 3,000 people currently hospitalized in texas. Based on a sevenday moving average, 37 increase to a week ago. Arizona also seeing 2,000 hospitalizations and 29 increase to a week ago President Trump is planning to suspend certain visas in a move to open up as many as 525,000 jobs for americans major businesses oppose the move arguing that the halt will stifle the economy amazon, google and others received the greatest number of these visas in 2019. China launches its on satellite to space in an effort to rely less on u. S. Technology. It has been in the works more than 20 years rivals the u. S. Governments own gps which is used worldwide brian. Leslie, well see you in a bit. Thank you. Back to the Macro Markets as stocks try to extend yesterdays gains. Black stones own offers an outlook telling investors yesterday the economy is likely to benefit from a v shaped economy. Whether us or vs or ws or nike swishs or hockey sticks, well bring in our guest the v or the nike swoosh, does the economic story in the near term matter that much because it seems like no matter what anyone said or how much cases will rise, the amount of fed money being put to work on the limited number of assets stocks now oppose just the path of least resistance seems to be higher no matter what. Brian, absolutely back to your original point or question about does the economy matter i think it does. I would agree with him i too think well see this vshaped recovery. I think even fed chair powell does as well when he testified to the senate. He said, Second Quarter gdp will probably be the worst weve ever seen that is the bad news and fulfills the classic definition of the recession however, the Silver Lining he also said is he feels like we are in a recovery phase where it is possible based on the may jobs report and may retail sales. The fed liquidity is helping a huge amount. I think the economy matters and i think it is not as bad as some market watchers think. I understand cases are going to go always up. Cases will never go down because once you are a case, you are never not a case hospitalizations in some parts on the rise, icu visits in some parts on the rise as well. It doesnt seem like the markets care, why not . I think, brian, as you say, in certain areas, hospitalizations and cases are up i didnt check this number or graph yesterday or today i think if you continue to look nationally at how hospitalizations and cases are doing. In a very big picture, those continue to trend down maybe one of your viewers will tweet me or me, i think broadly, that is continuing to trend down that is true, i check the numbers ever day on a spread sheet of my own. A lot comes to the fact that new York Hospitals have come down quickly. Any other power of the stocks besides the economy . I think earnings are going to be terrible once Companies Report in july the good news about that is that it sets them up for easier comparisons going forward. I would not under weight stocks here have a great day. Thank you very much. You too, brian. When we come back, starbucks beefing up its menu with some Meat Alternatives. Bringing you the latest next and why google employees are petitioning their leadership over one particular government contract later, justifying the valuation and what the street is saying about apples latest product unveil the dow is up 200. We are back after this our way is massmutual healthbridge, a free Life Insurance program just for healthcare workers fighting covid19. So to all the healthcare workers on the front lines, thank you. It combines powerful vacuum suction and spray mopping. To lock away debris and absorb wet messes. All in one disposable pad. For a complete clean, vacuum, spray mop, and toss, in one click. The shark vacmop, a complete clean all in one pad. drum beats bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. News breaking moments ago on starbucks and plans to expand into socalled alternative meats. Joining us live from the west coast. Good evening good morning it sure feels like it we are talking about breakfast starbucks Just Announced it is teaming up with impossible foods to roll out the impossible sandwich this is a watershed move in the competition with beyond meat that has expanded into break fast starbucks has 15,000 cafes and starting today will carry the impossible breakfast sandwich going for 4. 95 to 5. 25 in this one deal alone, impossible foods triples the number of eateries offering its products sort of a one two punch. Last week, burger king announced it was rolling out the impossible croissandwich beyond meats products are at dunkin Canada Stores warning investors that the rollout of products at those chains would be slowed down by the pandemic, which is then another challenge when most are operating under capacity because of social distancing rules finally, a question of how impossible will be able to scale up and maintain production reporting the deal from last year saying it will allow it to scale up pretty effortlessly back to you guys hold on there talk about the push of both companies and how that has been the focus point for both companies for impossible and beyond meat. They are both focusing on retail because that is growing every week they come out with these numbers and where products are doing well fresh Meat Alternatives are at the top of the list. Up 200 points or more. Companies are trying to tap into that having a big announcement about value packs getting those price sensitive customers who might be turned off because of those covidrelated closures at the end of the year, they hope to expand their footprint by 20 x. Interesting from what i heard. I may be wrong starbucks is partnering with beyond meat canada but impossible foods here. And china too starbucks china carries beyond meat products. Right now, they do not have that clearing to operate beyond canada or china. That might be a reason for it. Alternative news this morning. I would say bright and early thank you. Good to see you. You bet still on deck, despite pushing a head with reopening, investors finding the stayathome trade still going strong why we say that with some record highs coming up next announcer todays big number, 2,000 thats the increase in the amount of facts apples siri now has her spaldios compared to just a few years ago, according to apple welcome back good morning will there be Major League Baseball this year that and other top headlines with phillip mena. First President Trump is heading to one of the nations biggest coronavirus hot spots today. Holding an indoor rally in arizona despite a recent surge in cases the number of coronavirus cases in the state are record high sunday, 84 of icu beds were in use. More than 1,000 google employees are surging the company to end the contract with Police Departments saying they are disappointed with googles response calling for the company to take real steps to combat racism by ending those police contracts. The mlb may be on the road to restarting the season. A plan to implement a 60game season 60 games in the regular season, that means even the bad teams have a shot at the playoffs. Who is your team, philip . You are from texas houston, astros that means less games for those to get beaned as to what happened last year what happened last year i dont remember but we are out of time. We are out of time. Astros flip flops. Im an angels fan. You and i can never be friends ago. You have waited months for it or maybe you never even cared in the first place the return of the rbi, our random but interesting is back dow futures are up 220 wereacafr is a bk teth st fine r. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Blink and you might have missed it. Sending the market down 400 points it turned around and we are up another two. Apple unveils plans and it maybe pull the market along with it. The state of m a and deal making and hearing what is in store the rest of the year tuesday, june 23 this is Worldwide Exchange here on cnbc good morning. Welcome or welcome back. Im Brian Sullivan 5 26 on a tuesday morning. We are not quite half way through the 5 00 hour. Futures rally once again more green on the screen indicating an open up about 215 wasnt always this way if you are just waking up, you went to bed on the earlier side. After comments from Peter Navarro who told fox the u. S. china trade deal is, quote, over, stock futures were down 400 points the white house overnight quick to walk back those comments. The president tweeting after 10 00 p. M. That trade deal is still on if china can live up to the terms of the agreement, exclamation point. In a statement to cnbc, navarro tried clarify saying, quote, my comments have been taken wildly out of context they had nothing to do with the trade deal in place. I was simply speaking to the lack of trust we now have with the Chinese Communist party after they lied about the origins of the china virus and foifted a pandemic upon the world. All of this after stocks ended the day higher after nasdaq extended the winning streak to the lucky seven. Technology, what is new, remains in the drivers seat netflix, adobe, microsoft, apple, nvidia. All hitting records once again we continue to watch oil oil doing something it has not done since the lockdown. Wti crude closing above 40 for the First Time Since march 6 higher again this morning. Speaking of stocks, here is something for you. Some now saying the socalled stayathome trade is open as we continue to reopen the economy, is it . The market may say otherwise look at these etfs making alltime highs skyy with two ys other names like fastly. Amazon, facebook and social etf socl and spo, a video gamed focus etf. Styy, fdn, spl and sco largely composed of the stayathome stocks like video games, buy online and host Virtual Meetings are all at alltime highs. Also hitting new highs, Little Company you might have heard about called apple after the annual conference not bringing many surprises but an anticipated move to its own silicon. Joining us now is bgr editor and chief and Wolff Research tech strategist steve, ill start with you the stock already above 20 above wall streets median price target for it. Do you remain optimistic for apple even as it makes new highs day after day after day . Thanks, brian yes, as a strategist i dont have a formal opinion on the stock. The chart does look good it is beginning to get overbought a little bit. A mix of incrementalism. You need that to keep the retention rate and bolder moves to shift away from the intel processors reaccelerating from the 5g product cycle. I expect the stock is in good shape. Something you heard that makes you think there is a game changer for apple and its customers here jonathan maybe jonathan is on his mac steve, ill go back to you anything game changing, steve, as a strategist to you i wouldnt say game changing. There are some issues. The one getting headlines is the shift away from intel processor. That is not a huge part of the company. The company does want to be vertically integrated in gaming control. On the app store and the commission perhaps fortunate that it wasnt the line event and the disruption to have to deal with. The fact that this was a developer conference the fact is that apple is going to need new hardware we are all waiting for some sort of virtual augmented reality head set, glasses. Talk that wont be out for a couple more years. There is some risk, unless they get through the cycle and have follow on quickly, the stock could tread water. Apple would hate me for saying this, steve i think we have jonathan trying to patch in. Maybe now with a billion plus u users, for apple now, is it more about keeping people from making the switch to android rather than gaining new users it is really about mondmonete base now it will be about bettering services and adding new products over time. If apple can be criticized, it is probably in the area of lack of innovation. Eventually, youll need to have a big step forward that still feels a couple of years away that is about monetising and on the growth and showing the business on i cloud is larger. I think apples number two business apart from iphone are larger in are he have knew are the same as facebooks entire business will they be able to continue to extract money from their customers . Thats a good question. In terms of the phone pricing, it seems like theyve hit the ceiling. They are trying to bring it down a bit, provide financing and alternatives there is talk of potentially bundling services, maybe Even Services and hardware and other ways of how people can pay for things the Apple Service has been mixed. There is some questions about how will they do with apple tv shows and youve got potential pressure on the app store. I wouldnt bet against apple it is a unique company steve, as a strategist, quickly, i want to know where their email product hasnt evolved since 1998 do we own the stock, sell the stock, buy more . I am positive on faang. I would include apple in that. There is really no Disruptive Technology likely to knock them off their perch. As you can see, the chart still looks pretty good. I think the set up is still relatively positive. There is a lot more expensive names in tech. Youve got photos and apps, really, who is switching jonathan of bjr, well get you on next time coming up, why the countrys Home Builders are scrambling to meet new demand they never expected to see. Disney says Tokyo Disneyland will reopen july 1 with restricted reopenings. Jp morgan manhattan staff will not return to work until july 13. U. S. To skip imports from china. Can nasdaq make it eight straight wins in a row we are back after this thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back stock futures continue to move up higher. In a few hours from now, housing numbers will cross the wires even though everything seems to be moving to the suburbs, it is not all wine and roses good morning. That very quick recovery inhousing took most off guard especially the nations Home Builders now they are scrambling to meet this new demand they never expected to see. All of this staying at home has more consumers, especially renters heading to the market. Began to recover almost immediately. There is no question there are people fleeing the cities. No question, the second home has been a place of refuge and no question people are thinking whether they want to be in highrise rentals with common spaces versus having a home of their own with a backyard. Record low interest rates, urban flight and record short an has created the perfect storm. The ceo of Toll Brothers said these may show more than anticipated. The Virtual Technology theyve put in place for home touring has, quote, forever changed the way we do business polling recent buyers. Number one, Better Technology for Remote Working and homeschooling, second, simply more space and more individual rooms. So the question now is how quickly can they ramp up production they were actually underbuilding before the pandemic and then slowed or stopped new home starts and purchases of land it will be difficult with a lack of land and lack of labor. No land, no labor that doesnt sound like a good mix for a bright future. What are they going to do . I will say the housing start numbers they got were slower than expected. They got trouble getting materials in they will start to ramp up to buy more land as cities continue to move open or will this sustain to the fall we appreciate it from buying homes to buying Companies Activity starts to come out of its own lockdown according to refinitiv global field making year over year value across seven years on the account. Where is the dealmaking market open what advice would you heed right now. The chair of the global practice ahead of the group at decker good morning, the state of the market right now a pleasure to see you as you note, deal making and the global m a has been severely impacted the past six or seven years, as you know, weve been a bull market the economy driven trade wars and lockdown spread m a collapsed in april there has been a market increase where buyers prepandemic to litigate from those deals that they signed up on. We notice the bond market in many ways have gone on fire. Raising cash globally. Are they trying to hoard cash because they anticipate a deal ahead or because they are trying to protect themselves down the road look, brian, great question the Capital Markets are very liquid, public valuations are quite high yet activity remains stag nent. Companies as you know, have been trying to hunker down. Pulling out to raise cash. Regardless of cost and leading aside certain sectors like health care, tech and certain staples. Facing unprecedented drops in revenue. M a is unlikely to be a solution in the very short termfor thos companies. Even those that are raising cash due to the high Public Market valuations those are not yet capitulated on value. Only companies right now in need of rescuing think poorly backed companies, family backed companies. Potential buyers cant rely on those m a such as synergies that would ramp up in terms of the target that they would look at right now, you are unlikely to see that cash raised to be used in the m a and Large Company spaces you will see distressed m a and some looking to consolidate. But i dont think youll see the way of Large Company m a yesterday. Weve seen a lot of them go bust what does your ceo of the highly leveraged company right now, what strategies can they enact to protect their Balance Sheet great question. By the way, on the leverage buy out market point starting here within the last 12 to 18 hours, trying to unlock liquidity on the buy out market. Some what late breaking news, bankers are trying to figure outweighs to expand to reignite the leverage buyut market. Manage your operating expenses talking to investors regularly that operators will use operational leverage you might not be in a period of economic success but if you are standing stronger than competitors, you may hear the leverage maybe with people and costs running out to and customers to recut better deals if you happen to be slightly stronger than some that you compete with looking at repurchasing debt to the market you obviously may have to look at the credit as companies that are highly levered and revenues are coming in and remaining lower than they were in 2019 i think youll see a large wave of asset individual sales. Some great advice from ceos around the world thank you very much. Have a great day thank you on deck, going for gold. If you are investing in commodities, you may want to stick with the top spot on the olympic podium well explain in this mornings rbi. Back for the first time this year reason to be excited happy tuesday. We are back after this and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. Im an associate here at amazon. Step onto the blue line, sir. This device is giving us an Accurate Temperature check. Youre good to go. I have to take care of my coworkers. Thats how i am. I have a son, and he said, one day im gonna be like you, im gonna help people. Youre good to go, maam. I hope so. This is my passion. If i can take of everyone who is sick out there, i would do it in a heartbeat. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. Welcome back. The rbi is back. The most random but interesting thing youll hear all day, cnbc sty style. Your big return comes courtesy of our friends at bespoke. Noting the return of gold, silver and copper, thus the olympics and rank in the same order of what you win at the olympics gold up 26 . Around the highest level since october 2012 silver, number two, has gained 17 in the same period rounding out, the bronze metal prices up as well. Rbi, not sure we can do it every day, well try victoria, it is a pleasure to chat with you again it appears the things that existed before the whole pandemic thin is continuing what is going on with the market right a lot of that can be attributed to the fed put per se. The amount of liquidity being thrown into the market has provided us support level that allowed us to output where the data should be anyway you look at it is quite expensive. Earnings are hit and miss. We start looking at some of this dat data, the number of the unemployed i cant make the market just not the time to be chasing risk right now. As ive said before and tweeted out, im nervous about the job market here is the issue about the stock market when you look at the returns, maybe it is just the etf we did a segment on lbos and leveraged companies. Companies with terrible Balance Sheets im not going to name any names, horrible Balance Sheets, they are going well companies dont seem to care about the strength or interest of a Balance Sheet at this time. Right now, everybody is getting a participation proitroy i tend to argue it is going to matter we are hitting a more uncertain patch. Everybody needs to pay their taxes july 13. We are in a contention Election Year stimulus might be hard to get through. Talk of another round of checks going out. Five months out of an election, it might be more difficult look at hertz. The people that piled into the stocks that going bankrupt you have to say, do i like what i own . This might be a shortterm power boost to some of these lowquality stocks youve got to rely on the company owning at some point, quality is going to matter. All of these extra pieces of help you are getting will fall away and youll be left owning junk about 30 seconds left, what looks good to you and is not junk large cap, u. S. Quality all of the nonjunky attributes things with repeatable revenue boring but i think thats where you should be looking rather than chasing down the risk if boring makes you money, i would argue that boring is not boring one of the top advisors in texas. Victoria, have a great day you too leaving you with more green on the screen today. You are welcome. Dow futures up 257, oil is up, apple is up. Hertz is not up. That does it for us. Squawk box and the team pick it up next have a great day cheers with capital group, i can. Talk to your financial professional or consultant for investment risks and information. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. But with the covid19 crisis, many veterans are struggling to make ends meet or get the care they need. Dav has helped ill and injured veterans for one hundred years, but today, the need is greater than ever. Give to the dav covid19 relief fund and help provide critical assistance to veterans in need. Go to dav. Org helpvets or call now. Your donation will make a real difference. Big swings in stock futures after white house advisor after Peter Navarro walked back a statement on china u Apple Unveils the move and starbucks picking a partner for a new plantbased meat i dont know, it is so confusing the 2020 which player landed the deal tuesday, june 23, 2020 squawk box begins right now. Good morning, everybody welcome to squawk box. Im becky quick along with joe kernen and andrew ross sorkin. Boy, what a swing it is overnight. Reversal of that didnt happen now you see the reversal up 250 points thos