Transcripts For CNBC Squawk On The Street 20240712

We can get above that 200 day. I have to tell you, once again, what causes a decline its always the banks. Why the banks . Because we cant value we cant value them because we dont know what their future loan losses are going to be. I think that the feds chilling statements made for a tremendous confusion because, remember, weve been skating everybody has been saying how can the market almost bet a its high the answer is because we dont have any data. No real reports that contradict that i didnt like the nike quarter, but people already apologized for that it is the banks and, once again, when i think of the banks an article today about credit cards and how people arent taking the big credit cards with the 400 and 500 fees. David, the credit side continues the buyers jim, that is really interesting to see when we start to get the earnings where the focus of investors is. After the close we get jeffries. Investment banking not overry large but what will be interesting, jim, im sure well see extraordinarily long returns and fixed income we know that, right . Look at the Capital Markets activity we talk about it all the time and inequities and the likes of Morgan Stanley or jpmorgan and you can expect similar types of numbers, lets see what theyre going to be. But numbers are going to be quite strong but will it be overmatched by reserve increases and, to your point, concerns overall about declining credit quality i thought it was amazing the Brokerage Firm so to speak treated the same as the banks because the Brokerage Firms will have such big numbers in fixed equity trading and it doesnt matter i think people started describing worries to the fed. Wait a second, maybe the fed has seen something that we havent seen you do have the earnings coming up and i think what happens is people just say, you know what, the futures they go down kind of the new things, i know carl was alluding to them in my twitter file the new stocks that rally that have nothing to do with the fundamentals make you feel like it has become speculative at the same time that the bedrock fundamental stocks that we have to worry about most the banks might have to cut their dividends and were speaking of wells fargo. It makes it hard of course, you can bounce back i was listening to, look, i happen to think that when i look and listen to the people who talk about texas and talk about arizona, those states benefited from whats happening in the northeast. Thats what andrew said this morning. Find some reason to play on. And, carl, the play on trade which makes you wonder. The surge were seeing in some of these states is going to be with us for the next several weeks as the ripple effects of those new cases goes into hospitals and hopefully not deaths, but maybe decaths is that going to put a cloud over the corporate compentary that we hoped we were going to get for q2 i think it has to spot on on everything he said gave you a prediction that coincide with the earnings from the banks. I think you have to be concerned. One of the things im really focused on these days is what happens with future guidance everyone can cancel guidance if they want to and then i would feel better. Right now when someone says, look, i dont have guidance. Theyre always punished. Eventually if everyone doesnt have guidance then nobody would be what we saw in new york was pretty placid until it wasnt i dont want those earnings to coincide but theyre going to and all i want to, do i kind of pray that everybody just gets better and that we learned a lot more we know to turn people over, we know to give people certain drugs that we didnt we just lisened tened to meg and heard about remdesivir the idea that were going to take out the highs, i think thats still fanciful except for a group of really incredible software and digs atized companies. Goldman sachs raised the numbers for everything so, good news in one part, which is the digtuization which nike emphasized on its call thursday night and the bad news is the banks. Im not going, im not going to look through the banks because they never get looked through. These are not the oils and the discretionary araries and maybee people say, oh, i see. No ones paying their rent Boston Properties said they had good numbers on rent pay good numbers on rent pay everybody is supposed to pay their rent i have tenants in places that arent paying. Hey, jim, your point is well taken in that the banks are a reflection of the real economy thats a conversation weve had here for some time and a point you have made many times of late which is that the overall stock market doesnt necessarily seem to be reflective of the real economy. But to some extent, the banks to a large extent are and, you know, if there are roll backs and reopenings that will take a toll. We still have an extraordinarily high Unemployment Rate that were hoping will come down but will come down at a less rapid rate if the roll backs continue and the virus continues to move at a rapid rate unfortunately in certain areas. Not to mention the concerns about the fall and whether it will come back in some way or even whether people will be Wearing Masks enough so that, you know, it will simply spread more so again because behavior gets lax elwitwell, look, if you wanto make it so people wear masks, then you have to have an enforcement policy we dont have an enforcement policy my daughter who lived in madrid wanted to go to the supermarket and the policeman had to accompany her. Thats Serious Business when you get Something Like that. You want to crush the curve. You do that. I just do not see that happening in these state i do not see Law Enforcement or stores saying that masks are necessary. We had a very interesting upgrade from sell to buy for southwest. I think the airlines that are saying that masks are necessary are getting people to go because i think people feel better but there are lots of people who feel that masks are a sign of weakness including someone i believe who is in the white house. And as long as the president feels that masks arent necessa necessary, then i think we cant ask the texans to say, hey, you got to start wearing them. Ignore the president you cant do that. They wont let you i think were here to stay i think a lot of people are feeling that with the airlines moving up, its still much better than you think. Ignore texas and ignore florida and ignore arizona i dont know maybe you can until you get to earnings yeah. Goldman does double upgrade southwest as jim said and they cut their overall numbers as they see a less steep recovery in traffic getting back to 2019 levels jim, you mentioned the politicalization of masks and azar on meet the press yesterday talked about what he called a window that is closing in terms of tools that we have to mitigate the crisis take a listen. Weve got the tools to do this we just did this in the last couple weeks in north carolina, but the window is closing. We have to act and people as individuals have to act responsibly. We need to social distance we need to wear our face coverings if were in settings where we cant social distance, particularly in these hot zones. Azar then, jim, this morning talking about buying 5,000 doses of remdesivir. An important announcement this morning that President Trump secured half a million courses of treatment of remdesivir this is the drug if youre hospitalized could reduce the length of your stay by a third and were working to make with our states to make sure it dwets to the hospitals most in need. You know, carl, we had thats what he said hes really terrific and he was talking about different ways to get information i get, i read stat and my friend adam works there who was the original person and whats going on with remdesivir, i hope it changes. But it is so haphazard right now. Hospitals dont know if its coming or if theyre going to have it. Maybe this will change things the 500,000 vials. But, once again, the chaos with the way this is treated in this country is so, were just not, swedish. I dont find that what were doing gives me confidence. I love gilead at a company i think its terrific what theyre doing but i just dont see, i see nothing but a haphazard way of how we treat this illness and i think that secretary azar when he says the window is closing. I dont know no one is going to listen to him and the places that decided that masks are silly. When you get made fun of because you wear a mask, you stop Wearing Masks and thats been what ive heard endlessly from those states and i think thats a shame but until you get sick, i think you feel that way. Or you know a friend who has gotten sick. So many of my friends have gotten sick. Friends of mine and people i know of died and i think it changes things yes, it does. And, again, its very much unclear the path this is going to take. But it doesnt seem to be on a good path, guys. Real quickly before we move on i know were also going to get to meg for some updates. I did want to come back to the markets. I was not here on friday but, guys, this fed buying of Corporate Bonds has caught a lot of peoples attention. Jim, for lack of anybody else to ask, does the fed really need to be buying bonds of, well, comcast, our parent company, amazon, berkshire hathaway, at t and walmart and i have not noted any shortage of buyers for these companies in particular that makes it difficult for them to borrow. Havent they outsourced it to blackrock and these were the bonds they bought. Hey, i was trying to think it seems like a very illadvised status of what theyre buying. Makes no sense whatsoever. Im sure there is someone who can defend it. That person is not going to come on air that is not the stuff. Theyre not buying chesapeake bonds which, by the way, is a complete disaster only midstream which they owed to but i just think what the fed has been buying or the agents theyre buying is more like telling a desk, were going to buy walmart bonds but if you really stop and trading stuff that is awful, let us know well buy that, too. I thought it was just silly and someone has to answer. I thought it was supposed to be fallen angels that is what they originally, i thought. Those Investment Grade that were falling and conceivably given the size of the high yield market wiould be unable to necessarily buy those and the fed was coming in to prop them up that doesnt seem to be what happened insurance if they were being hurt because of the pandemic, thats what i thought they were supposed to buy. Someone knows the answer to that and they should come on and say, look, this is why i bought walmart. I invite that person on right now. Well see if the house asks that when powell appears there tomorrow, guys two big stories we have not gotten to. Facebook as more highprofile advertisers take a pause and boeing with some 737 max recertification flights that will happen today. Well talk to phil lebeau on the surge in the south and esirringwhen we come back you cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Swithout even on yoleaving 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. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Anolon pioneered the hard anodized nonstick pan. We spent 35 years perfecting it. We put nonstick inside and out, so its easier to clean. We invented an inductionready, extrathick aluminum base, so it can take the heat. Then we added an edgetoedge stainless steel bottom, so its truly dishwashersafe. Most importantly, we made it for you. Anolon. The ultimate nonstick. Get yours at anolon. Com starbucks and coke announcing pausing in their social media buys. The latest actions like facebook and twitter. Similar actions, of course, over the last couple days from hershey, jim you name it. Coke, pepsi, unilever. Were no longer just talking bout ben jerrys this stock for years and were doing some selling why . Because even though jpmorgan says that earnings are not at risk, when youre not one of those companies and you advertise on them, youre going to get on the case those companies represent more than just what i recogard as ben left wing companies and twitter even more at risk for the numbers. David, i have to tell you that Corporate America has changed. Corporate america is trying to get ahead of what the social issues are in this country that matter i think its rather amazing. My personal convictions dont mean much on this other than the fact that im stunned that the companies that i never thought had a, lets say, a care that much are lining up against these guys look, of course, is ben jerrys going to do it of course. But, geez, these other guys, verizon, honda, hersheys. These are other companies that never expressed much inest there about these things thats true some have paused all of their social media buying, not just facebook but your point is well taken, jim. This deserves a good deal of attention and good focus from here because is this a new era where corporations, as you say, either are trying to get ahead of their customers or are simply responding more forcibly to what they believe are the desires of their customers and what the behavior those customers want to see the corporation take its very interesting, important, taken in the context overall, as well, of the changes that we talk about in terms of the responsibility of corporations the Business Roundtable statement from early this year it is also worth watching closely. Not to mention, of course, the impact its having on some of the social mediacompanies led, of course, by facebook look, i think we have to recognize that the trade people are talking about us where is the money going is it going to go to snap or alphabet which, remember, at one time had its own issues. Go back to facebook after this thing dies down or does it not matter because 8 million advertiser on facebook what i will point out is this is a new social esg change, david it really is, as you mentioned and what i think when you get a verizon or a starbucks saying, you know what, were reviewing these things thats something that Mark Zuckerberg has to sit down with these people and say, what do you want what do you want well give it to you you cant just ignore these advertisers and act as if nothing changed. Things have changed big in this country. Changed really fast. Much faster than any of us, look, my 28yearold says its not, its changing way too slowly me its like lightning yeah, i mean, everson said we dont make changes based on policy changes well see how that stance is when it comes to the big spenders. Pharrell williams will tell us about the pledge he wants ceos and companies to make well take a quick break and were back in just a moment. 300 miles an hour, thats where i feel normal. Having an annuity tells me my retirement is protected. Protected Lifetime Income from an annuity can help your Retirement Plan ride out turbulent times. Learn more at protectedincome. Org. 12 u. S. States have halted or rolled back some of their reopening as we see the surge in states like texas and nevada lets talk about hat and the remdesivir pricing we got. Good morning, meg. The new cases of coronavirus at or around record levels each day. More than 30,000 cases down from 44,000 on saturday, but clearly reaching these new peaks Chris Meekens over at Raymond James estimating we will see one day of at least 50,000 cases hit this week in the u. S the positive rate of tests also increasing now to 7. 6 these data from evercorps isi. They track by metro area the Fastest Growing by case count. Three places in florida now taking the countrys top spots in terms of the Fastest Growing cases. Orlando seeing case doubling at eight days and tampa the same and jacksonville also in texas, san antonio and phoenix, as well the northeast continues to see the largest slow down. And we are seeing areas of the country now pausing their reo n reopenings or reversing. California over the weekend joining california and texas in shutting down bars in several counties and recommending several more take the same actions. The yellow there are the states that have just paused their reopening plans for now. Meanwhile, of course, we did get that highly anticipated news on the price of remdesivir this morning from gilead. More than 3,000 in the United States for a course of treatment from commercial insurers and less for government insureerhri the world and around the United States paying 30 more. We talked with gileads ceo this morning on how they set the price. Heres what he said. We priced it at the value, excuse me, at the price that allows for access across the developed world. And what weve done is we have one price for all governments across the Development World based upon the lowest purchasing power of the lowest developmented countries and provided that price to all governments around the world thats important, i think. Its our responsibility and we feel it is the right thing to do so, guys, even though the gilead price coming in below the value it creates in terms on cutting down on hospitalizations times you see gilead stock up 2. 7 as wall street thinks they outlined a good rationale for this and see a lot of volume coming from this drug. Carl all right, meg, well see gilead up almost 3 this morning. Well take a quick break here plenty of news we have not yet gotten to including a double upgrades and downgrades. Double down grade out of b barclays and double upgrade were back in a moment 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. I see all the Amazing Things you have been doing. You are transforming business models, and virtualizing workforces overnight. Because so much of that relies on financing, we have committed two billion dollars to relieve the pressure on your business. As you adapt and transform, were here with the people, financing, and technology, ready to help. Welcome back getting ready for an opening bell you see it 2 1 2 minutes from now. Lets squeeze in a mad dash. People like chicken theyve done a chicken Delivery Service that is going crazy. And people love it 1,000 different doors and its going to be separate brand and move the stock up. Like wingstop, by the way, which has positive comps one of the few since the pandemic started and, by the way, 20 growth on popeyes. I happen to have a Restaurant Brands on tonight. By the way, just came out. Just news burger king has had flat comps so, chipotle just started this delivery with grubhub. This takeout and delivery is working to save some restaurants. Obviously, be better if the fed were buying restaurant bonds and buying reit bonds and i know that, by the way, buying some ge bonds and boeing bonds people are complaining to me that theyre supposed to buy only the top bonds and i say, will you give me a break dont be like the warden from shaw shank i like this chicken theory because brinker and wingstop wow. People love wings. There you go thats what i hear. Thats what i hear big take away okay. Thank you for that great insight. Were always listening closely for those kind of nuggets. We were talking about fastly. Fastly, yeah. I did, by the way, carl, i think i said amazon earlier amo ieier the purchasers from the fed, apple, yes, of course. You have to help apple cost in capital so high they need some fed help there thats smart. Yeah well, again, someone who is doing this buying who never thought that we would ever talk about them and theyre going to go home tonight to their spouses and and nobody knows us. Were fine well, david, i mean, youre right about the big names. At t, walmart, unh there is some school of thought because they said they would do it, they have to Market Conditions n notwithstanding. But well look for more clarity tomorrow and house and Financial Services there is the opening bell, guys. And well see about, i guess, jim, levels and talking about dow 50 day, which has managed to provide some support although he is looking for an early test this morning. Well, look, hes been spot on and its always great to hear from him i do think that people want to buy. They a lot of the people who got 1,200 got the 600 extra unemployment theyre very much in the market. Theyre not in the highest quality stocks that we can tell. But a lot of people investing who never invested before and a lot in index funds and they come in in the old days and money over the transom i always say, please wait a Little People who bought on the bottom on friday and wait a little or just say, hey, listen, another chance will come weve got some days coming up right before july 4th that are all 85 up. I dont blame anyone from trying we have end of the month buying, too. But, you know, its okay we are going to get some help, jim, from boeing which is the best performing dow component. Of course, its been down seven out of eight sessions. Down 14 in that time. Put that all in perspective. Look, im candid. I feel that the 737 is going to be the most tested plane in history and yet they still said, phil was saying it could be a long time before were actually in it. Before the pandemic, and before the change in ceo at boeing, i said i was willing to take a film crew and be the first people on. And, you know, my wife really quite candidly said im the biggest moron in history but i think its safe by now i dont know as long as people wear masks maybe not, david, what do you think of that . Listen, i think people need to wear masks. I spent a good amount of time this weekend observing a lot of younger people they dont seem to want to wear masks. And they dont seem to physically distance. And i worry about that, frankly. Because when new york reopens bars and people go inside, i dont know or restaurants its concerning, jim it wont take much to light a spark with that dry kindling sitting there. People not doing what they should be. I think outside is obviously better but nothing stops the grim reaper in the end. They cant, if they let up elon, what is he saying . Earlier overnight replied to geek wire. A ridiculous number, he says, of false positive tests in some cases close to 50 false positive scale why positive tests are going up and hospitalization and mortality are declining. Anyone who does test positive should retest. Hes been really very, a lot of people feel hes been very weak on the safety side of things on this do we know, carl, do we have any idea what he is basing that statement on no. No believe me, when i walked in this morning i thought it was going to be more about ten years of tesla as a Public Company and he turned 49 yesterday, i think. Happy birthday. I thought it would be about the fact that it is going to go to 1,000. The stock, but, again, i think people know within the industry that hes not been at the vanguard of this issue of trying to of worrying so much about people not much different from the president , frankly, on this issue. Again, look, i just think if we all wore masks outside or in stores wed all be better off, but theres just a tremendous, its politicized, like you said, carl i dont know how youdepolitica size everybody wants to do one ill do and happy to underwrite for you. Goldman sachs unveiling one this morning. 700 million that theyre going to be raising in a special purpose acquisition. What are the use of proceeds for . To complete a Business Combination with an operating company and citi and goldman are the underwriters there and then were seeing when they do a deal. Nicole is one of the names we remember and draftkings another one where they have gone up as a result of the purchase and the investors being quite happy with that purchase. This morning, i mentioned it because i would refer you to lca land cadia holdings. And lucadia together theyve announced the deal under which theyre going to buy they did this a while ago. May, they actually raised the money. Now theyre doing the deal there it is up 38 they are buying Golden Nugget Online Gaming. An Online Gaming casino that is owned by fertitta. Estimated 21 revenues and the multiple here about six times estimated 21 revenues. They did about 122 million in revenues so far last year or for this year. Draft kings at 723 million with an 11 billion market value. Well below draft kings and a business that fertitta started in 2014 or so. It has grown enormously particularly now given the absence of the ability to actually attend a sporting game. People or bet. People are doing a lot of other things online. Jim, there it is now its up 48 . Well, these are signs of the times this is happening. One news why i Like Penn National game and only valued at 4 billion i dont know explain this to me, david. He owned the gold nugget and bought the gold nugget he owns Golden Nugget and started Golden Nugget Online Gaming and has this spac which he is with landcadia and its a Blank Check Company theyre buying and now buying this from him even though hell still end up owning it, most of it 474 million. What does it do . In this market, what does it do . I know. Fertitta will still hold a controlling economic interest and controlling voting interest in the combined company but, of course, like all these spacs the voters need to vote on it and that almost always is the casein if theyre told not to the case with the global blue that was going to get bought from silver lake and thats going to get nasty in terms of the lawsuits that are piling up there. But thats a separate spac issue. But it just keeps going. What does it say to you, david . What does it say to you . It says level of speculation is quite high. I mean, look, there is one that has a really funny tortoise and it has the symbol shell. I mean, dont you think the millennials are or the genxers, hey, shell one called vxt now, people defend these stocks as if theyknow the companies as if they looked at the board of directors and watched the last five quarters and have been on the conference calls. Theyll defend them. It doesnt matter. They will defend them to their death. I think they should just admit listen, im just having a good time here. The scrabble stuff like when i pick the symbols from scrabble. At least do that at least admit that its a big game dont pretend to know the companies. Dont embarrass yourself spacs tortoise. Yeah another thing that we talked about as a reflection of a level of speculation in this market has been bankrupt companies that are still trading at some equity value. We talked a lot about hertz, of course the plan there remember was to start selling stock to potentially raise enough money to actually improve their Balance Sheet to such an extent that maybe theyd be able to come out that didnt happen after the sec raised, well, more disclosure questions. Although, by the way, even though hertz pulled it, it doesnt mean its entirely off the table because they could come back at some point and say, well, we passed disclosure with the sec and they still want to do it. Another one which is chesapeake, jim. Aubrey mcclendon the man who started it very well you spent a lot of time with him. Natural gas being the focus there. One of the pioneers. But mr. Mcclendon did also have a tendency to spend a lot of money on things that did not do with natural gas, as you well know, and some of that is coming up now the company will cite that as one of the reasons why they were just unable to get out from the enormous debt pile that they have they are talking about a restructuring support agreement that eliminates 7 million in debt they got their debtor in possession already set and theyre talking about a reorganization they point out, by the way, when the new ceo took over, this company had more debt than exxon and chevron. And heres a couple of things that im hearing from people close to the situation that mr. Mcclendon, that they sort of had a kind of deal with. No budgets im also told one of the first bills that came across wallers desk was 110 million for two parking garages that Aubrey Mcclendon had actually commissioned there was a magnificent wine cave that they found unbelievable wine he introduced me to colgen took weeks to find it it was hidden behind a broom closet, apparently, on campus. They were the largest nba season Ticket Holder with the thunder and on and on. So, you know, it wasnt just the decline in Natural Gas Prices that have stayed stubbornly low for a long time. It wasnt so many other things well, it was, but in addition to, jim, lavish spending at the company that took them quite some time to work through. I was close with aubrey i went to see him drill in ohio and he said, jim, there is so much oil in ohio, just come. Just come to where were drilling just come to where were drilling and its not oil, its natural gas. I said, where is the oil it turns out there is no oil aubrey, im out here to see oil wells and he said, natural gas is the future. Natural gas, the price crashed and, yes, they absolutely had some plus and some things that aubrey documented them and aubrey also was facing ten years in prison on violating the sherman antitrust act and not convicted, but thats a ten years no matter what so, definitely issues. But in the end, i think they were too much natural gas and natural gas collapsed. Good Balance Sheet watch out chesapeakes dead. Chesapeake owes a lot of midstream mlps money thats where theyll be hurt thats who is going to get hurt. But chesapeake was an outliar and if you were, anyone who followed this for a long time would know that this thing w was it had basically had it because it is in bankruptcy, it will be bought by the robinhood people is that what happens is thats why i was discussing it along with hertz yeah, well see. Right. Meanwhile, ill listen i love the idea but hidden wine cellars, i keep looking here who knows. You never know, carl you can always get lucky somehow youll find one behind a broom closet filled with really good wine. Always a dream yeah. Yeah aubrey introduced people to a lot of things. Aubrey was different i got to tell you, he was a character. He was a character i road on a natural gas motorcycle he told me that was going to be the future he had the only one. Never another one made to be in that business, jim, you have to have a lot of risk tolerance, which he certainly did. Obviously trying to hang on to 3k on the s p dow is being dominated by boeing lets get to Rick Santelli this morning. A drift to the long end with respect to yields a bit lower, but lets put things in perspective. Lets look at monthtodate chart of tenyear notes. Notice the left side last day of last month we were at 65. Right now, were around 64 virtually, unchanged on a month. And what a month it was. Look at the range that we had over 90 base points and hold at the last employment report which is, of course, approaching on the next one quickly if youlook at two years. Last quarter at 16 right now 16 three years and last month at 19 theyre currently at 18. So, you could see unchanged until we get to 30year bond where it is about four basis points lower it doesnt stop there. Look at the two day at fives fives the only maturity friday and it actually made a new alltime low yield close were only talking fractionally from 30. 5 basis points like 30. 25 basis points and right now hovering around 29 basis points. Month to date in boons minus 45 at the last trading day of may theyre pretty much right there now, as well, unchanged. Whether you look at hertz or many of these charts, many of them look exactly the same almost identical in terms of monthtodate charts left and right side and bounce and all the volatility in the first week and a half of the month and everything settled down to some extent. Finally, if we look at what is going on with the dollar index that is one of the markets that isnt unchanged on the month about a penny lower or so as you see on the monthtodate and in terms of equities, well, if my memory served me correct 23,383 is where the dow was in the last trading day of last month. About 270 points lower so, we could see that for all the market moves, all the uncertainty whether its coronavirus or some of the unrest throughout the country it definitely affected markets but on a monthtomonth basis it certainly seems to be very close to unchanged carl, jim, david, back to you. All right, rick, well see you in a little while. Rick santelli. Dow is up 100 and s p 3003 below that 200 day 50 days at 2982 were back in a minute recertification test flights for the 737 max. Lets get to phil lebeau and bowing today hey, phil. Shares of boeing moving higher on word that we will have the first of the recertification flights rehappening later today late morning pacific time. Youre looking at early afternoon eastern time recertification flights today, tomorrow and then possibly on wednesday, as well and the question has come up, what happens during one of these flights. Is this another test flight . No, its not just another test flight think of this as one of the final exams that the 737 max has to clear its an faa test pilot who is at the controls now, also a boeing test pilot that is the copilot and others on the plane but a tightly scripted test flight theyre not up there saying what does it do here . They know exactly what theyre doing and the parameters theyr testing and validating the changes in the Flight Control mcas system so the plane can safely operate in the future the 737 max has been grounded for 473 days and were looking at shares going all the way back, hopefully well show you going all the way back to march 13, 2019 thats when the plane was grounded remember, guys, they are hoping that this will be ungrounded by the end of the summer and then we could see commercial flights resume some time late this year. Thats the possibility the possibility we had you friday talking about american no longer capping Seating Capacity and over the weekend the reports about delta trying to encourage pilots to accept early retirement or prepare for a furlough youll see this with every airline. Theyre sounding the warning notices. This goes out to all the major unions when they have mass layoffs, any business, when youre going to have mass layoffs, youve got to notify people 60 days in advance. Were 90 days away from the end of september thats when the payroll guarantees end theyre going to have to start notifying the workers that hey, theres a good chance that your job will be eliminated come october 1st. Well watch all that. Southwest leading today on the goldman upgrade. Boeing is adding about 60 points to the dow nasdaq is on track for a second day in a row lower hasnt done that since may 12 or ba ia nu13 ckn mite still to come. Multiple grammy Award Winning artist, Pharell Williams on the pledge that hes asking ceos and companies to make. Meantime, nasdaq is down about a percent. A lot of stay at home names hit today, includiing docusign, nvidia and more. Were back in a moment usaa is made for whats next no matter what challenges life throws at you, were always here to help with Fast Response and Great Service and it doesnt stop there were also here to help look ahead thats why were helping members catch up by spreading any missed usaa insurance payments over the next twelve months so you can keep more cash in your pockets for when it matters most and thats just one of the many ways were here to help the military Community Find out more at usaa. Com that selling carsarvana, 100 online wouldnt work. Y but we went to work. Building an experience that lets you shop over 17,000 cars from home. Creating a coast to Coast Network to deliver your car as soon as tomorrow. Recruiting an army of customer advocates to make your experience incredible. And putting you in control of the whole thing with powerful technology. Thats why weve become the nations Fastest Growing retailer. Because our customers love it. See for yourself, at carvana. Com. 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. Its time for jim and stop trading. You . Mentioned southwest sell to buy. We have to buy to sell beyond meat at barclays theyre saying its food service. My sources indicate mcdonalds, its not over with beyond meat, but what matters is theres a substantial Food Service Business and they said theyre cutting prices to take business away from a traditional meat companies. Is it time to take profits i think theyre taking a longterm view theyre here to stay they want to show people the price is cheaper than beef its up a great deal its not one of those companies thats being run, so to speak, on robin hood. And its also not one of those Software Companies that goldman recommended today that are all getting rolled over but it is one that has been a bellwether in this market yeah. Down 20 in five days. And youre right the news out of mcdonalds was a little confusing mcdonalds later came back and said the relationship hasnt changed despite what happened in canada exactly i have Restaurant Brands on tonight. Theyve had a Good Relationship with impossible. They use gmos, but its tasty. I dont know if that matters honey well, a company thats been hurt by boeing but is changing the stripes dramatically into a software company. And darius is reinventing a company that was already reinventing. Dave, listen talking about win now or win later his new book its going to be tricky with a lot of news. And then some decent forecasts for the jobs number which has we said earlier well get on thursday rather than friday. Because of the shortened week. Its going to get better again when the 600 is taken away i think the numbers are going to be good. The last time the market spiked was unemployment the day before july 4th is maybe seasonally the single best day of the year for the market hey, jim, when cody comes on, ask him about his pact they did a deal. I think its gone fairly well. They bought an industrial company. Youre right they have to do that is shell still doing well . Is the turtle doing well i have no idea. Is that one of the names i dont know i dont know i assume so. Youre too busy following Companies Like walmart and att and others you got to get with the name david, its yeah. We got to you know, these struggling companies that need help with their ability to sell bonds. Yeah. They buy some good bonds, but i think, david, it may be time to buy, i dont know, how about german Wire Companies missing 2 billion . How about that one . No dont do that. That thing is flying. Wire card. Its the next thing. Its like wobistics. Remember that . I do. Remember the guy got killed because he didnt push it high enough thats a reference to the sopranos not real life. Or is that real life now i dont know well see you tonight, jim on mad money at 6 p. M. Jim crimer joining us as always. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with Morgan Brennan and david faber. Pending homes on deck. Pending home sales in may jumped a remarkable 44. 3 month to month that according to the National Association of realtors. Thats the largest monthly jump on record since they began tracking this in 2001 and blew out expectations of a jump of about 15 sales had fallen about 22 in april. Sales in may down 5. 1 pending sales represent signed contracts. People out shopping during the month of may and thats when Mortgage Rates started coming down they started the month around 3. 2 . By the start of june they were below 3 the problem is the supply of homes for sale still down 19 annually and new Home Construction is not ramping up enough. We did see new home sales jump as well. Not quite the h 44 . This is a remarkable number. If you look regionally, it was big in the northeast sales up 44 for the month still down 33 year over year. In the west, the biggest gain month to month up 56 and down 2. 5 year over year. The realtors say they think the recovery is going to continue, but there are red flags if we see a respike in the coronavirus. And people start to pull back again. Theres the possibility theyll pull out of the Housing Market in the months to come. We also got news from the fhfa, the regulator on the multifamily apartment market they will be extending forbearance programs for multiapartment owners from three months to six months this helps the landlords of the apartment buildings on their mortgages but they are also not allowed to evict any tenant during a period of forbearance that extends the period that tenants may not be evicted from multifamily apartments and the fanny and freddie backed mortgages back about onehalf the market thats a help for the owners and renters struggling to make their payments on that pending home sales number, 44. 3 spike in may. Back to you guys unbelievable. Thank you very much. Market has gone green. S p back to 2018 3018 lets bring in Bruce Bittles to talk about the market. Good morning. This is the short week. Powell and mnuchin tomorrow. Monthend, quarter end, volatility shortterm, do you see the surge in covid cases in the south being around the markets ankles or do you think fundamentals, especially in tech remain intact yeah, i think much of the normalcy is still dependent on finding a vaccine. Much of it is still depending on a vaccine, so its driving a lot of sentiment and the outlook for the market that being said, i think its fair to say that the market has recovered quite a bit from the february and march levels and were sitting at a level now where you have to make some assumptions into 2021 which is becoming a little murky and most would suspect the earnings are still a little too high. What would you need to see . Is the only thing that would satisfy a stronger view of earnings is a vaccine, or can we deal with Something Else i think tech nothing is a perfect example where the sector is up almost 12 year to date. But the average stock within the sector is down 1 i think beingi selective in area of the market that have the tail winds of us needing the technology and technology now being at the heart of everything we do from work, vacation, security, and software, the other thing i think is really important which i think is a benefit to the market given the fact that tech the 27 of the overall weight is the fact that youre starting from a point of strength what i mean by that is that financial structural advantage part of the profitability of the companies comprising a majority of the market is twice that of the market Profit Margins in excess of 20 . So they have cash on hand. They have asset light models and the demand for the services only accelerating. So i think in that sense, pockets of the market, tech in particular, and health care, that will remain to be demanded by investors yeah. Bruce, i wonder if you see it the same way, especially given the fact that there are so many cross currents for the market to absorb right now i mean, on the one hand you have the rise in coronavirus cases. On the other hand, you have fiscal and monetary stimulus on the one hand you have improving economic data. On the other hand, all the uncertainty. Not only around earnings but around what the economy will continue to look like given the fact that we have these rising coronavirus cases and the election at the end of the year. I could just go on down the list right now. So whats an investor to do in terms of formulating a thesis here and where are the safest places in the market well, i think the investor has to expect were going to have a rocky go of it here i mean, weve never experienced a total shutdown of the economy. With all of that said, i think the markets just simply got too far ahead of themselves in early june we had a big rally, lows in march 23rd bottom. Expectations for the market and the economy got too elevated that opened the door for a correction, consolidation which we think were going through right now. I dont think the weakness the last week and a half suggests the market is the beginning of an important downdraft in the market its a pullback in an ongoing cyclical bull market typically when the economy comes out of recession, the leadership shifts from large cap growth to cyclicals, including industrials and material sec tors and it also moves from large cap to small cap. That could be typically how a market would react coming out of recession. We think thats whats going to happen here. Now, yes, the cyclicals got a little ahead of themselves on their rebound here and they were pulling back i think thats temporary and small caps, same thing they had a big rebound and that pulled back and i think as we get into the second half of the year, and yes, theres going to be some turmoil due to the election. There typically is, and maybe it will be more pronounced in this cycle, but nevertheless, all of that said, i think the primary trend of the market remains up i think the leadership will be in cyclicals and small caps in the second half of the year. Some of the typical behaviors of the market, things like seasonality, summer months, does that factor in or are the more traditional play books of how to gauge movement in the markets out the window right now thats a great question i dont know if 2020 will go down in the books as being normal or just like the history books would suggest. What i would say is that for investors that do have a horizon greater than three to six months, i think its going to be a game of relative that means youre going to be seeking out Investment Opportunities that give you a hybrid exposure to growth which valuation and discipline to participate in that cyclical recovery thats why i think areas of the market Like Health Care and pockets of industrials that give you the secular exposure to investments that allow for asset intelligence, automation, will be not just seek out by investors to date, but also over the longterm. Because, again, dependence on technology automation, productivity and that efficiency is not going away. Its only accelerating you can get many of the companies at a great discount to the market and a discount to the stocks that have done most of the lifting here to date concentration right now is the key risk we have a few stocks that have done most of the work. I would be leery of passive exposure this is when you want to be a stock picker finally, bruce, there is sort of a creeping narrative that europe may outperform the u. S. Broadly. Jpmorgan yesterday last week for example cited that as one fallout factor from the response to the pandemic itself i wonder if you think thats fair and if youre eyeing europe anymore because of what theyve been able to do regarding covid yeah. I think some diversification over to europe makes sense here. I mean, the foreign markets have trailed the u. S. Markets now for a number of years. I think you could probably possibly see some outperformance there. But i think overall longterm, i think the u. S. Is where you want to be. Thank you both. Appreciate it very much. Thank you up next the dallas mall owner on the rollback of reopening measures in texas. What this means for his businesses and why he says looming disaster is ahead. Markets are mixed right now. Dow is up 1 the nasdaq is hovering just below the flat line for a second straight down day. Something we havent seen since mid may. Stay with us need better sleep . Try natures bounty sleep3, 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. Welcome back to squawk on the street. Dallas county, texas reporting three Straight Record days of covid19 numbers over the weekend as the state begins to put in place stringent Safety Measures and dialing back some of the reopening efforts our next busineguest is chairma ceo of charter holdings, ray washburn, also the former ceo of the private investment corporation. Thank you for being with us. Thank you for having me youre involved in a number of consumer facing industries. One of them is restaurants i think you own about 40 restaurants around the dallas, fort worth area. The fact that were seeing bars being mandated to reclose. Restaurant capacity being scaled back in the midst of what were seeing from the pandemic in the state and around the area, how is that affecting your businesses. Friday we found out at 10 30, any license with a bar license had to close at noon so it was challenging for us we had to close down 100 shut down as of today lunch, our restaurants go to 50 business its very challenging. Our first concern is for our customers and employees, but we have moved and im sure youve seen this in new york, so many of our city moving to the parking lots in front of your restaurants has turned into a new dynamic for us outdoors youre able to seat people with about six feet apart. Indoors were at 50 its created a very poor Dining Experience for our customers now, one of the things that you make a point of saying in your notes is that basically were on the precipice of a looming disaster for the Restaurant Business. Why do you see it that way, and in what ways would you expect that to manifest well, one is as youve explained on your shows, the ppp money runs out this month for most employers we have furloughed about 18 00 people weve brought back 98 of our employees. And across the entire restaurant indust industry, the ppp money has been used to bring people on. Now were having to shut down again. Wheres the money going to come from to pay the salaries for people fortunately in the hotel business, theyve been able to stretch it out because of the extended time that the period has given. People that spent the money in the way it was supposed to be spent through june are now going to look at another bomb hitting them on that the second thing is on landlords, of which i am a landlord and a tenant. But typically this spring march, april, may, landlords let you defer your rent into 2021. So that was a pretty good workout for everybody. But june collections in our Shopping Centers are pretty much 100 and tenants are paying their rent and business is getting back to normal now that this is happening again, i dont know whats going to happen if we have to tenants start coming back and want to defer another two or three months of rent i dont know if your lenders are going to go for deferring payments nature a lot of shaping centers went to interest only. It enabled everyone to limp through the spring if the second one hits, its going to probably hit august, september, rent collection period and the other issue is our vendors that sell us our goods and supplies, you know, a lot of them werent paid for february or march they pretty much everyone was on april, may, june, making payments on time if they have to go to terms again, i dont know whats going to happen. The fourth issue is on the insurance. You heard a lot about Business Interruption insurance j, pandemic insurance that issue dropped and a new house bill was introduced on friday, house bill 7394. That is creating a pandemic insurance pool like Flood Insurance pool they could pay us for government forced shutdowns which this is and have the Government Back the insurance economy stri thats all the things going on yeah. It sure is and ray, its david faber. I feel like for you, especially there dont seem to be any answers, let alone easy answers when you look at whats going on right now in your state, and the whip saw sort of youre getting from the State Government there in terms of opening and not opening, what would you want what would ideally suit you in terms of protecting your customers and employees but at the same time potentially not endangering your business so that youre going to have to lay off thousands of people . I dont have an answer. Were trying to follow the government mandates theyre putting out. The whip saw as you said were going through is a crisis that i think the history books will be written on whats happening. I dont have a realtime answer for it all i know is the large footprint bars and things are totally shut down. Those people are furloughed and put out of work. Restaurants, its hard to make money at 50 wh i dont have an answer all im trying to do is everybody up what i think are the looming clouds coming on thats going to be theres going to be a massive foot that drops in july, august, september, rent collections once again people not having the money to pay their salaries because they use it up. Everyone thought we were going to be on the other side of this the first part of july i dont have an answer the answers would be easier if, in fact, we not only hit a plateau but were going down the way a lot of other countries are. How long to recover from Something Like this, based at least on what you know right now . How long do you think its going to take to recover im just talking about Restaurant Business. Once this is over, were back up to 90 of our sales as of two weeks ago. So we recovered quickly. People were going out to eat the thing that didnt get baked into a lot of the economists, i think is the rent deferral even though we deferred it, we still owe it thats a 2021 issue. People that look at the Restaurant Business see the liabilities are building on our Balance Sheet, going into the next year. The same with the landlords. If theyre not paying their if theyre interest only, theyre going to principal, the principal is being locked onto next year or the end of the term and our vendors, the local guy that sells you your food, really the small restaurants, theyve been able to work some terms out. Typically we pay two weeks to 30 days well, thats been all lopped onto 2021. 2021 is going to be a massive debt issue for a lot of companies kicking the can down the street and its exacerbated this summer because its happening all over again do i have an answer . No does business recover once we get the green light . Absolutely weve seen it already. We can get back to business quickly. Theres liabilities building up on Balance Sheets throughout our industry ray, the governor last week was asked what he regretted most about his policy decisions he said i it came down to bars he would have done bars differently. Now cuomo is saying malls and indoor dining, quote, are things im concerned about and we may consider slowing them down for next week. Are you getting the sense that restaurants and bars are getting singled out more than other industrys . Yeah. Well, in the case of bars, one thing, i would have told them to close bars at 10 00 at night the big time when people really collect in mass in bars is between 10 00 and 2 00, late at night. You could have kept bars open earlier in the evening and they would have been able to have stayed open restaurants, fortunately its summertime and we pushed a lot of our customers outside into the parking lots and streets people still want to go out. Were social animals Everyone Wants to react. Our restaurants right now you have to wear a face mask to the table. You can take it off once you get to the table as far as the infections going up, if they want to shut everybody down again for 30 days, thats just going to be an economic calamity, but at the same time we also have a Health Calamity so there isnt an answer i do think there is ways i think the 50 probably helps are we able to operate properly . No the higher end restaurants, steak houses and things like that that are dinner only, in closed spaces, theyre going to get annihilated. They have no alternatives. Youre not going to eat fine dining in a parking lot. But other restaurants, you dont mind i dont know if that answers your question, but yeah. The point id like to get across today is the black clouds over us are getting pushed down, and a lot of people arent taking into account the big debt bubble thats building up that from payables not being paid, rent not being paid, and this insurance bill thats being it was just introduced on friday if that can get through, that could solve a lot of these issues its another governmentbacked stock. It would solve a lot of issues yeah. Finally, quickly, ray, i just want to get your take. We saw the Texas Governor start to halt and scale back some of these reopening efforts on friday ahead of that, what were you seeing in terms of Consumer Behavior consumers starting to step away from being out and buying more in the midst of the case increase or were they still going out and it was business as usual . You know, thats a great question at the end of may as i said our Restaurant Business was up to 90 . Our retailers were open. Everyone paid their june rent. It felt like things were getting back to normal even though when you go to a store, they would only allow a few people in. Our parking lots were full we noticed ten days ago a lot of slippage in our restaurant sales as well as among our reetailers. The parking lots were getting lighter until the announcement on friday in the state of texas. But we could see that Consumer Behavior over the last ten days to two weeks starting to soften. And now its extraordinary ray, thank you for joining us today. Appreciate it. Thank you good luck okay. It is time for our etf spotlight. Were looking at the global x social media, up more than 45 in the last three months helped by spotify, one of the Largest Holdings in that fund. With about a 5 portfolio waiting. Spotify is on a run of it own having doubled in that same period why . Well, our guest later this hour might have some insight into that pharell is going to join us in just a few minutes stay with us 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. Good morning, everyone heres your cnbc update. Several Supreme Court decisions just handed down some Big Decisions in from the nations highest court. The Supreme Court has struck down a louisiana law restricting abortions. It is the first big portion case of the trump era they refused to block the executions of the First Federal Prison Inmates since 2003. And the court declined to hear a case about the border wall amazon is giving a thank you bonus to some workers. They range from 350 to 500 for fulltime amazon and whole food employees and 1,000 for front line managers. Lowes is committing 100 million to front line workers. And in pakistan, four gunmen attacked a Stock Exchange and killed at least three people Officials Say all four attackers were killed within minutes of that attack. Ill see you nt exhour squawk on the street continues after a quick break. Retailers have been hit hard what does a resurgence mean to that sector . Carl, were watching whats going to happen here if we see a ru surgence in covid and what it means for stocks on the retail side. We looked at the large etfs, ticker xrt a lot of our viewers and listeners might know it. As you can see on the chart, at the depths of the covid pandemic, that gap in performance between the Retail Sector as evidenced by the etf versus the s p 500 grew wide things have normalized a bit if the recent precedent holds true, which of the stocks that might be the worst performers if we see a resurgence in the virus, during february 19th to march 23rd, these components of the xrt kpmpled the worst. Macys down 70 . Kohls and others down 40 . The better performers,its interesting. Some of these are perhaps Consumer Staples oriented. P. J. s wholesale, up 10 kroger and sprouts, Grocery Store chains, up about 5 during the same time period chewy, online dog food retailer up 10 and stamps. Com up 24 . Morgan, i guess is point is were trying to look at the most recent move in stocks around the covid19 pandemic to see if there were to be another resurgence, whether or not the same precedents would hold true. Those are some of the stocks to watch in case history repeats itself back over to you yeah. Staples and ecommerce seem to be the themes there. Dom, thanks for breaking that down we have a number of headlines coming out of the Supreme Court, including one regarding the cfpb a ruling just handed down from the Supreme Court regarding the Consumer Financial Protection Bureau. The Supreme Court ruling that the structure of the Consumer Financial Protection Bureau is unconstitutional and will have to change. That is, that the director of the cfpb has been under the legislation that was created to create that bureau was only fireable for cause, not at will. Theres a single director here which is different than other regulatory agencies runby a board. Brett kavanaugh, the Supreme Court justice during Lower Court Rulings debate on this suggested the cfpb director because they were only able to be fired for cause by the president of the United States, was in effect, one of the most powerful individuals in the United States Government Conservatives have argued for a long time that director position is too powerful and now the Supreme Court is agreeing with them ruling that structure is unconstitutional the cfpb will now move forward with a director who is able to be fired at will by any president of the United States in the future. That doesnt mean were going to see a lot of change in the cfpb operation in coming months its a blow to the cfpb and the independence as a Regulatory Agency it will now be a little more under the thumb of any given president of the United States going forward. Back over to you all right a key decision right there one for businesses to watch for sure thank you for bringing us the latest on that a check on markets before we head to break right now. All the major averages are now in the green to start the week the dow is up 349 points boeing up 7. 5 good for upwards of 100 points in terms of the positive contribution to the dow. The s p is up about. 7 . Now the nasdaq turned positive ayitus wl. T few moments asel st wh [announcer] if youve tried college but never finished, snhu lets you transfer up to 90 credits toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Yeah yyeah yeah hey, hey are markets underpricing the risks as we head into the president ial election. We lay out the risk on tdirang nation more squawk on the street coming up. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. The list of Companies Pulling their ads from facebook continues to grow. Starbucks and cocacola the latest to take a pause on social media advertising. Jim stewart joins us this morning to talk about that and i guess the stock is well, jim bounced off of 207 at the Early Morning lows today how much do you sense this is truly gathering steam . I think looking at the big picture here, facebook and Mark Zuckerberg have lost a war where the battle lines will be drawn, i dont know. But remember back in his famous speech in georgetown in 2019, zuckerberg sounded like a Supreme Court justice laying out the principles of free speech and saying that facebook was not going to censor people and wanted to let everything go. Well, that debate is over. Facebook is not the United States government. It is a private company. It is free to publish or not publish whatever it wants but it also is going to have to respond to the marketplace, namely the advertisers. I think thats what we see kicking in now facebook is already compromised tremendously theyre already moving boundaries and trying to do some things to address the most extreme examples on that i think its going to have to go further. As i said, once you go down that road, youve got to draw the line somewhere that advertisers are comfortable with i think it can do that once it embraces that, it is eventually going to be able to make the advertisers happy. So you sense a reversal you think they go full twitter i think theyre going to have to go somewhere in that direction. They havent gone far enough were not talking about radical protesters here. We have Companies Like cocacola saying this is not satisfactory. We dont want our ads showing up here and i think theyre going to have to listen to that i suspect they are and that they will be able to draw a line that is never going to satisfy extremist that you dont want any kind of socalled trigger message hoeing up on showing up on there but they can find a spot where mainline advertisers are going to be comfortable. Facebook does have a lot of leverage here. I mean, it is a powerful advertising plat form. The advertisers need facebook, but their willingness to do this i think is sending a strong message. Yeah. Jim, this is morgan. You hit on the question i had for you. That is the fact that for years now, it has seemed like facebook has had all the leverage and not just facebook. You can make the argument about google theyve been the dominant places for Digital Advertising if you want to get your Brand Awareness out there to as many people as possible the fact that you have so many advertisers pulling those dollars, what does this do in terms of the experiment around that and where do those dollars now go well, i think it will be interesting to see how what the advertisers discover once they pull those adds my suspicion is as you point out, you basically have got google and facebook and to some extent twitter, but google and facebook are the big two here. The companies that are do the targeted advertising, so that you are getting your message in front of exactly the person who needs to hear it that has been the powerful tool that has been driving the dominance of social media, and that is not going to go away i think facebook is going to recognize that the people who are putting offensive messages up there are relatively small in number and they are going to be able to curb that while still being able to deliver the powerful tool the advertisers how they do that, theyre going to have to figure it out i think it is doable and theres going to be a win win solution here, i think for both sides if people can get beyond the sort of highly charged ideology of this and im mostly talking about zuckerberg here, who is going to have to compromise some of his principles he laid down. I think advertisers are going to discover by not advertising on this, they are going to lose quite a bit. It is a very powerful advertising platform thats why some say its temporary pause and theyve not killed their facebook pages. Holds a lot of leverage. The stock goes green we have to wrap it up on a busy day, but its benefitting from a dow up 400 points from pretty good weekend data out of florida. Yeah, and i think returning positive for the month of june as well. Well keep an eye on that. When we return, pharell. Yes, pharell, joins us on squeak on the street. Its an interview you dont want to miss. Its just a few minutes away dont go away. I appreciate what makes each person unique. Thats why i like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. Almost done. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Because now you can expewatch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Academy arawd nominee, Pharrell Williams well join us on the other side of this break. Stay with us [narrator] at Southern New Hampshire university, were committed to making college more affordable. Thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Were helping members catch up by spreading any missed usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa. Com pretty good action here as we had an Early Morning test in the markets. Financialing up 1. 5 industrials up 2. 5 . Morgan, we usually get testing data over the weekend. Now florida has a seven dayaverage of 5. 5 good for the market. We normally point out over the weekend testing data is sometimes undercounted well see if the trend holds up later in the week. Absolutely. And this is something that investors have been glued to like i think the rest of america. Also worth noting in terms of the move higher in industrials, boeing leading the way certification flights getting underway today around the 737 max aircraft thats been grounded for over a year also the dow transportation average up more than 2 in the small caps the russell 2000 up as well. Its quiet in terms of earning for the week tomorrow fedex names like that are key in terms of this Global Economic growth story as well. And some of these theses that have helped investors to propel stocks higher. L although its been a volatile month in terms of moves from week to week were waiting for Pharrell Williams to join us. Williams to join us, guys, but to you point, there he is, hes good, im told lets get to that morgan and carl Many Companies arage knowledging juneteenth as a holiday. She Pharrell Williams and he is joining us i know you have been talking to a number of corporations in the last few days. What are you stressing for them as to why this should be a National Holiday and one which they give their employees the day off. Well good morning and thank you for the opportunity. As americans we love and we appreciate Independence Day, but when july 4th, 1776 took place, the only ones that were free from the british monarchy were our White Brothers the White Sisters could not vote the native americans where we get this land from, they were not free and certainly the africanamericans, women and men, we didnt have our freedom either in fact if everyone that is listens at home or watching at home just imagined a day or what it feels like to wake up in a world where you dont own the land, the air, you dont own anything everything comes from the express permission of your White Brothers some of them, by the way so when you think about you know june 19th, and im giving you the background, you think about june 19th that marks a twoyear period where we were supposed to be freed but we had not been still. So when that information reached galveston, texas, oh, okay, now were free we were supposed to be free two years earlier. For us we feel like the day that we were freed everyone was freed. So why not make that a paid holiday . We deserve that, you know . There is a word that scare sos many people. It is called reparations and we deserve that, too. I think the first thing we should do is really, you know, we dont want to take away the Independence Day that we have, we just also want a day that is inclusive of everyone. Our Biggest Issue asa nation i that we always feel like we know how to read the room maybe because we own the room. Perhaps we have forgotten who actually did the labor so the action points here, talking to corporations and legislatures, and leaders around the world is making juneteenth a paid holiday for employees in the United States. Then we would like a day to recognize the emancipation of enslaved people. Our company, we expect you for you to do this here but if you have branchs and places overseas, we would like you to use your influence as one of the bigger tax pair payerins in than to pay the employees there, whatever that respective day is, but this is the june 19th pledge, and then also to talk to those local legislatures, leaders, in those respective countries as well to make it a paid state, province, and National Holiday pharrell . Yes, sir. Im curious what is your sense here, what will define success for you. Mlk day has been a National Holiday for a long time. I think only about 40 of employers give it as a paid holiday still, and that is with many years of it being a National Holiday what are your hopes here and what are you hearing not just those that already support it, but perhaps those on the fence. We have to fuse our privilege. And it is absolutely hubrus and privilege for someone to not adhere and i think the only thing that for me i would love to just say yeah, around the world we have acknowledged the emancipation of enslaved people. But that is not enough before you can get to that part you have to start with your heart. You to start with your heart and we have convenient blind spots in this nation and were comfortable with being tone deaf we also need to begin supporting our employees ability to learn, reflect, and encourage continuous Self Development and respect for all cultures it would just be great if there was metrics in place to measure that you know the next juneteenth is when the company should ask themselves what i have done to consider the plight of our brothers and sisters that were enslaved this is america, this is what were supposed to do if we really love each other if you really love someone, its very easy to look in the mirror and say you know what . I dont can have to think about that, that is not necessarily my problem, that is not my issue, but were not americans, right so you know as a nation, we have been known to lead by example. I think that is what god wants for us and for those of you that dont believe in god you at least believe in the universe and the universe has order. That is what is right. And in making this day a paid holiday is right and you know, pharrell, i know you have spoken emotionally like you have here to a number of corporations following your call are they going to be helpful in this effort as well . Starbucks, under armour, air bnb, everyone you nay i spoke to the ceos, and they all said yes and they pledged if you want to understand which way the wind is blowing. Were a nation, a country, but we operate like a company. Thats why everyone tunes into cnbc they want to understand the metrics and the mechanics of what is happening out there in the american market. The way to understand is to follow the money the corporations are doing it because they realize that they have a Consumer Base that not only votes, but they have a Consumer Base that votes by what they spend co corporations understand that when you see the streets its not just Black Brothers and sisters, White Brothers and sisters, gay brothers and sisters. Straight brothers and sisters, youre seeing all colors, creeds, sexual orientations, and genders. That is america. Corporate america understands that you know, there are those of us that feel like we have seen Corporate America say and do things that then dont amount to a lot. Do you think this time that it is different absolutely. The Consumer Base has buying power. When you have a buying power, you have a voice that has been the biggest voice with africanamericans we never really had a voice. We never really had any market share. So now, thank goodness, as we are preparing to have an actual market share and have more brak entrepreneurs and more brep neuros of people of color, our advocates are rising up and theyre not just building other companies. That are supportive of what were doing, theyre also as i said before making their positions known when they spend. That is the reason why we couldly have done an nbc we could have gone on any one of the nbc networks and had this conversation but we went here because this is what it is about. We had a zood call with all of these companies, and people were on, because they know. It is a crazy, crazy world and a crazy notion in this place we love everything we love black cars, black remote controls, black tvs, black phones, black glasses, black shoes, gowns we like plant tinted windowed, you even love black music and black food is good but for whatever reason when it comes to the lives our message has been perverted over and over and over again. When you, when we go out and night and we look out into space, 95 of the observable universe is dark matter and discharge energy its black and you even love that, but for some reason when it comes to our lives, we love