Backtracking on reopening plans. Wednesday, july 1. This is Worldwide Exchange here on cnbc good morning welcome to july, if you will hard to believe but it is already july 1 time flies it feels like about 100 years. First day of the month, quarter, second half of the year. Dow futures are not giving us many direction the markets are about to give us the best three months in decades and cap off a fourmonth win streak if you are looking for historical comparisons, here is how history shapes out the dow with the best quarterly performance. Nasdaq best quarterly gains. A look at the small caps they dont want to be left behind russell 2000 up 5 best quarterly gain since First Quarter of 1991. Apple soars higher apache led higher by 200 . Congrats to elon musk, tesla leading the nasdaq 100 it more than doubled in three months despite plenty of tesla stock skeptics it crossed over the 2 billion market cape for a bit yesterday. Let us make sure this is all coming in context. The dow coming off the First Six Months in a calendar year since 2008 financial crisis. Horrible first three months with the pandemic and lockdown. Big rebound to start the second half of the year, s p 500 still down 4 in 2020. Around the world, asia kicking off the month. Off to karen tso in london with the news and the trade good morning it has been a patchy start here for the second half. It looks mostly positive looking at the reaction. The foot si was higher at the start and then turned weaker and now gone back up again the stock market is holding on to the green the French Market has been weaker over the course of the trading session. This has been one of the better performers for the quarter german stocks not even starting at all weve had german issues impacting all the german stocks on the exchange. Weve been waiting for the update this is yesterdays print. We are waiting for an update there. We think about the relevance of that stock market. It has been the outperformer here for the last point keeping pace elsewhere, strong trade. 04 and trading up on spanish stocks weve had pmis showing improvements on the flash estimates for june estimated at roughly 47. 4 versus 46. 9 the mixed signal weve got germany contracting. Also airbus. Weve had 15,000 job cuts flagged up here that we are nowhere near the end of the crisis and could get nowhere close to that crisis karen, thank you. Do appreciate that back here at home. The positive rising number of covid19 cases continues to make headlines as more states move to keep the virus from outside. Seema here with the top headlines. That is right, new cases in the u. S. Rising by more than 47,000, the biggest oneday spike since the pandemic began texas reports a new load of more than 6,900 in one day. Governor abbott suspending elective surgery new york governor expanding his states quarantine order to include travelers from eight states including california, idaho, louisiana and nevada. The advertising boycott of facebook continues to Gain Momentum target, pfizer and volkswagen join the list until meaningful action facebook announced it removed a network of accounts associated for the far right organizations. Worth knowing that facebook ceo has agreed to meet with organizers of the ad boycott the senate has agreed to extend the Bailout Program through august 8 giving companies extra time to access the legislation still needs to pass the house for final approval but came hours after mania chin to mnuchin told the committee there was support to extend the Paycheck Protection Program that was due to expire today. Thank you, seema. Now speaking of stocks well get to the market. Closing out the month of june after fed chair jay powell underscored their commitment through the pandemic and lockdown the overriding goal of the various lending programs is to help people who lost their jobs get back to work he does warn a second wave of the virus possesses a major risk i certainly wouldnt forecast that a second outbreak could force governments and people to withdraw again from Economic Activity the worst part of it would be to undermine public confidence, which is what we need to get back to lots of kinds of Economic Activity that involves crowds getting to seema shaw good to see you again. Is there any way to really gauge the risk for the economy and the markets right now . What are you using to gauge any measure of what may happen in the next 12 months hi, brian that is becoming an increasingly difficult question the traditional data we would typically look at is very difficult to follow. Kind of unseen numbers like this are difficult to follow. The thing following through at the moment would be confidence we are seeing the resurgence of cases. We want to make sure it is not for Consumer Behavior. You ask 10 people, youll probably get 10 different answers. As we have said, health data is the new Economic Data what do we do there may be markets that exaggerated their response a lot of the improvement we have seen has been due to pent up demand at some point, that will be associated and so we need to see more there is a real risk that Consumer Behavior will be derailed again we believe in being defensively positioned we Like Technology these are the companies with large Balance Sheets and large cash flow. We generally like being up in quality. Wherever you are looking, you need to make sure these companies have a really strong back drop and can withstand a lot of challenges that they are facing is it worth it to take a flier and add a risk some markets have done great but others, do they look tempting to you . We would still be quite worried. Some of the markets have done well you have to look at some of these places like china, singapore and those. Looking at south america, they are still struggling with policy stimulus we would be more worried about that we are looking more positively than before. Always a pleasure to have you on when we come back, our conversation with Christopher Ailman cio of pension fund first states, now companies are rolling back reopening plans the business of environmental clean up well speak to the company that may be keeping your company safe dow futures turn positive up one point. We are back on a wednesday right after this now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. If youve had the coronavirus, youve got a lot of fight in you. And youre in a special position to help us fight back. The plasma in your blood can literally save lives. But we need to act fast. Please donate plasma now. Please donate. Donate. Donate. Donate now. You fought for your life. Now lets take the fight to covid19. Go to the fight is in us dot org to find out how to donate. Welcome back to Worldwide Exchange. A check on some stocks that are moving this morning starting with fedex revenue fell less than expected. Helped by a 20 increase Online Shopping and Strong Demand from transpacific and charter flight and commercial volume due to stores being closed google delaying the reopening of u. S. Offices to september because of the surge of the rate of cases in may, the company said it would reopen to 10 pes of capacity and scale that up to 30 in september if conditions allowed. A report said boeing did not give regulator documents about the changes. Faa personnel involved in flight tests knew but engineers responsible for certifying the plane did not. The report is a time line of the plane until it was grounded last year back to you. Thank you very Much Technology continuing to reign through the Second Quarter of the market logging a 30 gain since april 1. Leading all of the sectors from july and year to date. The faang stocks were a huge driver the arc surging 61 joining us now is arc Portfolio Manager unbelievable performance what are some of the surprises what are some of the surprising stand outs to you . I think it is really important to distinguish the Technology Sector versus what we are focused on gaining the portfolio. Many of the performance is the faang. We have very little exposure up 42 year to date. We are focused on five platforms expiring an acceleration of adoption most investors have very little skploerz i wrote a piece on how we think innovation deserves a strategic allocation in portfolios you look at Companies Like nvidia and tesla, Everybody Knows those. Youve got Companies Like invite and teledyne who are they and what do you like about them . Yes a lot of them are centered around the gemomic space and centered around the coronavirus right now. Dna sequences is helping us. Envite is one in the diagnostic space that cat pulses into the liquid biopsy space in the detection of cancer. Square is one we own for the cash app up ending banks taking the digital wallet experience and moving away from traditional banking and towards your mobil phone for banking needs. Any planned changes how do you restructure and try to capture some of these companies trying to get attention. Absolutely. We cut across sectors. We are always looking for opportunities. We are very active traders we have a very long time horizon. In the higher volatility markets. There are opportunities where Companies May miss earnings for a penny or two for shortterm returns. They are investing in r d to take advantage of opportunities which we are focused on. That is an opportunity to add exposure to these names. Congratulations on a very big Second Quarter we are watching you. Got our eyes on you. Appreciate it. On deck, closed to america, that is what europe is saying as it closes its borders to a select group of travelers. What Global Market had the best three months it is not us your rbi ahead when Worldwide Exchange returns. We have a developing story out of the European Union which opens its boarders to travelers beginning today. Not on that list, the United States the eu is working to contain the spread of the coronavirus as we face a surging number of cases that is bad news for airlines who make a chunk of their money or used to, on International Routes the former ceo of pan am a mam d and Aloha Airlines when is the next time we can get on a plane in the u. S. And land in europe . I tell you what, if i had a quick answer, it is impossible to figure it out im very upset with some of the actions taken by the eu. China is okay. They are one of the three categories i think theyll all end up in gray china is okay. If you look at the deaths per million. China is at three. Does anybody believe chinas number countries have a right to protect their borders. The question is what methods they use and how they use them and do politics play into them at all, which they usually do. What is your beef with the eu im in ireland at the moment. Ireland is excluded from that list not because we have done well with the covid19 fight, which we did but because we put in this 14day quarantine. Which is nonsense. That is the reason they gave that you cant come in or out of ireland at the moment. As far as the United States is concerned, i honestly dont know when that is going to change can i assure you 0 you are government is in close contact with brussels trying to lobby with that issue. We used to have over 2,000 flights a day over the pond and now there is a couple of hundred. It is impossible to schedule an airline. People dont appreciate the complexity of creating a schedule they want to change this every 14 days . It is an extremely complex Business People dont understand, including the eu, does not understand the complexities of how to run an airline. We had 90,000 americans go through a check point down from over 2 million two days ago, we had 625,000 a giant recovery you remember the days where youd see one guy on a flight. Americans want to fly and get back on planes do you think where cases continue to spread and we back off and those tsa numbers might go back down again . When people walk into a terminal afraid, anxious. Weve added to that tension. As long as airlines require a mask masks. Other prot calls that will be applied over time. And customers will be provided over time. The air filtered through there, better than hospital rooms the challenge is to get that word out there will be trep i hadation it is a problem. Very tough. Go ahead quickly there is no way to sugar coat it it is a tough, tough challenge for the Airline Industry it came out of nowhere as Everybody Knows. David, it is a pleasure. Good luck there in eisland welcome any time still ahead, the exclusive consider the calstrs cio stick around at leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free 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. The markets making most of your money back after massive losses ahead of the decade. Plus new number one issue that could be the deciding factor in the 2020 election. Ahead, bigger than toyota. And how tesla could be bigger than the japanese auto giant wednesday, july 1. This is Worldwide Exchange here on cnbc welcome back and good morning. Im Brian Sullivan it is 5 31 here is how your in investments and money looks right now. They are up 10 points. They are up 10 points in the green after major averages logged their best in decades and capped off a fourmonth win streak best quarterly performance back in 1987. S p 500 up by 20 . Nasdaq best gain since 1999. Up more than 30 the russell 2000 gaining 25 since april 1. Small cap best quarterly gain. In that time, a Little Company you might have heard about called apple carried the dow higher the second gains overall. The dow coming off the worst six months since the 2008 crisis, the s p announcing the worst first half of the year where we have started our conversation with Christopher Ailman at calstrs. We asked what he thinks of the stock market after the wild first half of the year you know, it has been the most challenging first half of the year that i have ever seen the stock market has given us a v yet the real economy seems to be in a sloppy u or w pattern. Expert traders or long termare baffled by traders we are going to be underweight equities but not substantially because that rise in may and june really hurt if you were underweight and caused people to underperform do you believe the robin hooders, the day traders are able to move the market around it is hard to believe but when you think about the millions of advisors, traders and analysts and then on top of that, all the people who like to bet on sports and casinos cant. I know it sounds crazy there is no way i can explain the unusual moves of this market it is not following traditional averages most of the technical patterns are blown out of the water i hear longterm experts who are just baffled by the strength of this market given the economic figures. The fed is probably the only explanation of dont fight the fed and money is cheap it is remarkable how stocks have traded back to neartime highs where things are 2 3s where it was. I dont want to date myself i was doing this job at the nasdaq dak in 1989 not saying there is some chans chance but i do remember the idea if you were trading something and finding someone else to sell it too, you were fine day traders made money on stocks and were probably at zero. How do you think this ends do you think it will be a collapse that well ease our way out of it . I hope there is not a collapse it feels like im out on a length and the ground under us is a little fragile . Im worried about that the way this ends. Well have some kind of a viable vaccine. There are 12 in human trials right now. One of the 12 is going to work and go into mass production. Im hoping by thanksgiving time, we finally turn the corner even then, youve got millions unemployed theyll go back to work slowly people have been financially hurt the 600 a month extra money is going to run out and that puts a huge deficit in the u. S. There is going to be pain to pay for this and by the way, when we get into the fall, there is a giant election it is going to be sloppy im worried it will be a bad voting situation and turn out. For the first time, we may have a strongly not the first time i think well have a really contested election with questions. That will not be good for the equity markets sounds like you are gooding to reduce your equity exposure it sounds like you you are going to keep stock exposure the same or bring it down a little over time in this rough environment, well continue to a invest in real estate ill tell you that is not going slowly well be slightly under weight and defensive. Well stay high on our cash decision because of uncertainty out there. It is too tough of a market to take a big bet away. I recommend everybody to revisit their own retirement accounts. June 30 is a good time to rebalance. I recommend, get a glass of very nice red wine. Sit back and take the time to look at your age, risk and rebalance. Dont try and time this market leave that to the day traders, which right now is an ok u patie occupation but that too will go away more to the conversation you can check out on cnbc. Com. We talk about esg and other issues as well we head to the second half of the year, two major themes are likely to dominate market conversations going forward. Not just the paepd first is that. Number two, remember this thing called the president ial election both of those are really intertwined, the new change Research States of play sheds light on what you might call covid politics eamon has more of that this states of play poll is really just those six battleground states the president won last time and needs to win again there is more bad flus now as he continues to trail joe biden by six points in all of those battleground states. Two weeks ago was the first time our poll showed joe biden having a lead in all six of those states now extending that to a sixpoint lead biden pulling away why is that . The verdict that voters are weighing in on now in terms of the president job performance. 35 strongly approve and 51 in these battleground states strongly disapprove of his job performance. That is a lot to do with the economy and the virus and whether or not the president is doing enough to help working americans, 27 strongly agree. 47 strongly disagree with that statement. You can see the passion is on the wings here in terms of the strong disagree and strong agree. And whether the president is pushing to reopen the economy for political gain 55 agree and 45 disagree saying the president is pushing to reopen the economy for political gain back to you. Listen, 2020 has been a year to forget in many ways you heard Christopher Ailman he thinks there is a good chance we could have a contested election in the fall you are talking to political people all day long. Are they saying thats a possibility. It is definitely in the realm of possibility you are seeing inflamed passions on both side you are seeing rightwing mallitia showing up at the state capitals you are seeing extreme reaction. 10 Million People out of work. All of that produces a volatile climate. Weve got a president who said there is fraud in 2016 in the year he won. This is not a president shying away from allegations of fraud in an election what happens after election day is anybodys guess it might be worth brushing off the bush v gore playbook eamon, do you have vacation plans. Not sure there will be a later going in july me as well. Maybe well cross paths. Thank you hell have a very busy few months on deck, how can you keep things like games at the board walk clean well introduce you to a company doing just that. As we head to a break here are some other headlines and goldman sac putting a new diversity move in place tokyo requiring masks. Minor League Baseball cuts its season dow futures wndo 52. Worldwide exchange rolls on after this 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. Welcome back the companys market cap on top. Just a stones throw away from toyota as the highest valued automaker. Apple pushing ahead on the 5g phones. Saying apple is currently facing delays of one to two months. Beyond meat is betting big in china it signed a deal to sell in some super markets owned by alibaba they already came agreements with starbucks and others. All about the fake meat, we know that. Thank you. Greetings from new jersey, no not us springsteens debut album makes us think about the summer. Many of you will not go until you and your family feel safe. How are places like this staying clean . On the boardwalk people are trying to get a semblance of normalcy. Im not worried about the structure. Worried about the people sneezing and coughing. What is your company doing to keep us safe and keep the rides and games and restaurants all clean . Good morning, brian thank you for having me. At this point in time, the facility preparation has to take the multifacetted approach. It is more than spray and go you have to start with total disinfection we use a secondary protective coating that can last up to six months it is biostatic surface. Epa call its a treated article. It provides for a physical kill in between the cleanings we believe environmental controls are huge. Epe is your last line of defense. Things like dividing workers, plexiglass, air scrubbers and he had indicating your staff and customers on the proper way to put on your mask and distance, proper hygiene and cleaning are all important. Craig, in years past, we saw your guys spraying that stuff, you would have thought these chemicals, they are dangerous. Now we are like, oh, good, they are here to clean. What is in that stuff that you are spraying into the air . You want to make sure what you are breathing is not covid but also that the chemicals are also safe absolutely. There is not one Silver Bullet for every circumstance what you saw us spraying on the rides differences to what we use inside of offices. First, we want to make sure it is safe for people we were spraying on the rides is dcon 30. It is completely green the salesman sprays it in his mouth. I dont think hes supposed to but it possesses no threat inside offices, we use a product called sterimist. Looks like craig froze. You can see where they are sprag all the rights down. Go to jersey shore and get a giant slice of pizza craig, thank you for coming on and getting out there and keeping it clean on deck, we know american stocks bounced back in a big way. Do you know what the best performing Global Market was you probably dont but you will in your morning rbi. A reminder you can watch or listen to us live onhe cc app. Stick around now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Who was the best performing major Global Market in the Second Quarter up 30 during the quarter. Some of you will come out and throw shade and be like venezuela and argentina. Their currencies collapsed and are not major markets. The rbi, the answer is brazil. Turning back down to the market. Siege the red down 85 points now. To the second half of the year, chief investments officer. Alex, thank you. It feels like weve already lived 1,000 lifetimes in the First Six Months of the year what do you expect from the second half of the year . I expect the market to go up in the second half of the year it looks like a constructive environment . Constructive how, we are getting relocked down . We had historic monetary support. We have unlimited support. The fed increased their Balance Sheet in the Second Quarter alone. Weve had a lot of fiscal support. Raised over 3 trillion worth of support there. The pharmaceutical industry is coming to the rescue youve had 10s of thousands of Infectious Disease dollars to find better testing. We believe. This is a lot of bad stuff going on in the world the day we get a vaccine, do you expect the dow to go up or as the market already priced at it should be a national holiday, one, do you think it will surge the market or is that priced in . It will surge the market but it will also be a shift. Those uninvestable areas will get a boost. Anything involving a crowd Airlines Cruise lines those will benefit initially overall, the market will do quite well with the vaccine out there. That will be added visibility for the market okay. Leave us with some names it is summer, you like boston beer and yeti. We do no one is flying or traveling and the kids arent in camp, we got to do something. We are seeing that money shift to camping, fishing, hiking there is a run on boats, rvs and bikes. Yeti is the a the nexus of that. We boown boston beer for their sales which have been strong a couple of strong picks. Optimistic about a vaccine love the optimism. Appreciate that. That does it for us on Worldwide Exchange on a wednesday. Happy july 1 welcome to the second half of the year well see you tomorrow, squawk box is next you say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Good morning futures relatively calm last minute window dressing that caused this to move higher getting you ready for todays market drivers, including a surge in covid cases well dig through the numbers and the new state lockdown restrictions and a stark warning from dr. Fauci police using force to Disperse Protesters in hong kong. July 1, 2020 squawk box begins right now. Good morning welcome to squawk box. Im becky quick. Welcome to july. This is the first day of the