Transcripts For CNBC Closing Bell 20240712

Well be getting tomorrow. The nasdaq, as i just mentioned, outperforming once again those big names, netflix up 5 1 2 , tesla, amazon seeing strong gains as well with just 59 minutes left of trade. We are higher still on the s p but not on the dow anymore the nasdaq remains in the lead up to 0. 9 coming up on the show, shares of draft kings have doubled since they began trading in april. Today they announced a new way to bet on one of americas most celebrated fourth of july events well discuss with ceo jason robins coming up dennys, new effort to raise cash whats facing the Restaurant Industry in these uncertain times. But lets focus on the big stories were watching today first of all mike santoli, meg tirrell, pfizers encouraging vaccine news and highlights from the fed news minutes ago. Breaking news on apple josh has it for us hey, josh. So wilf, more apple Stores Closing as covid19 cases rise specifically apple saying its going to reclose 30 Additional Stores in the United States tomorrow that will include stores in alabama, california, georgia, idaho, louisiana, nevada, and oklahoma that means apple has reclosed, by the way, in total 77 stores now here in the u. S. Remember, apple operates 271 stores in the United States all together apple reiterating in a statement, we take this step with an abundance of caution as we closely monitor the situation and we look forward to having our teams an customers back as soon as possible apple always said here, guys, it would follow the data closely and reclose these stores if necessary toprotect the health and safety of its employees and customers. Back to you guys. Josh, thanks so much for that i guess, morgan, the key takeaway here isette hurt apple stock price but just in the green on the day but didnt derail the rest. I was just looking at that. No, it didnt. I think thats pretty notable in itself because apple and disney have become blue chip proxy stocks in terms of reopening or not reopening, recloseing where this economic recovery is concerned. The fact it is now hanging onto gains or hugging the flat line is pretty notable versus reactions by investors in the past lets get over to mike santoli now for a broader look at todays Market Action mike. The market as a whole seems to have built up resistance to those reclosing headlines or some challenges to reopening perhaps the market is essentially saying episodic, case by case, putting out fires where there are flairups at least for now, a twoway risk is any hint of a vaccine also creates a boost. Take a look at the s p one year, same story holding this level, thats what happened in the pullback, hold around 3,000 whats interesting, who knows if were creating another summertime box trading range like we had last year, a little while slightly lower register there. Today it is all about tech plus fang, which keep in mind is 40 of the s p 500, which you combine those things together that is whats giving mild boost. S p stocks versus bonds, high treasury yields should mean economy, therefore stock market should feed off that looking at divergence in march, last moment or so, vague upturn in 10year treasury yield. Its been well anchored,. 7,. 6. As you say stock market able to make probing couple of stories. One, the fed is behind these things keeping yield curve stuck, buying for a time to come the kind of stocks that have managed to keep the someplace higher are disinflation secular growthtype ideas. With credit spreads, low, low treasury yields not bad as long as they dont start crashing to new lows which would indicate new bout of fears of distress, guys. Certainly seems like dont fight the fed in a chart right here im curious, i want to go back to your other chart and summertime boxes you had up. I was wondering. Usually there is a certain amount of seasonality, some sort of summer slowdown at least in terms of volumes where trading activity in the markets are concerned. 2020 is such an unprecedented and unusual year in so many ways but seasonality is something we should be factoring in here over the next couple months. Morgan, june, especially, back half of june, typically weak, that held to form this year it wasnt too much net damage all together july is the strongest month of the summer, over the last 20 years especially and really the only consistently strong month of the summer. A lot of that gets front loaded. I think its something you want to keep in mind. After a Strong Quarter subsequent returns tend to be good if youre down midyear and s p 500, pretty yair, subsequent returns seem to be lackluster. Pick from this what you like seasonality data, it is climate not weather. Mike, thanks so much for that apple has just kurnd red but dow climbed back to be fractionally positive, s p up 0. 7 shares of pfizer leading dow after the Coronavirus Vaccine candidate. Meg tirrell has more hey, meg. Hello very early data first for human trial of covid19 with german partner biointech. A trial that enrolled 45 healthy participants, 18 to 45 in two lower doses they tested four people and found all of them generated neutralizing antibodies four times what you see in patients that recovered from covid19. Those are the antibodies that infect cells we dont know how high they need to be to confer protection safety important to look at. They did see pain at the injection site, fatigue, headache, fever. They did see it higher at two of the low doses. They plan to start studies in 30,000 people in the United States late july they are going to have the dose, one of four they are testing moderna plans to start 30,000 patient trial this month along with astrozeneca later and Johnson Johnson in the fall. These Companies Ramping up at the same time at financial risk for doses. If they prove the studies, they potential italy expect 100 million doses available. By the end of 2021, 1. 2 billion doses. This will likely be a twoshot vaccine. Thats enough for 50 million this year and 600 million next year if all goes well and they get approval. Meg, on that point, just to go back such a key factor for the economy, whats the earliest realistic it could be widely available and used across the country . Widely available is a different question from available. They think they could have the data by september and potentially emergency use by october. But widely available, potentially early 2021 again, there will be limited quantities as companies ramp up the manufacturing. All right its another day, another exciting or at least interesting headline where all of this is concerned. Meg tirrell, thank you for bringing it to us and breaking it down. Meantime the fed releasing its minutes from its june meeting last hour. Steve liesman has the highlights steve. Morgan, thanks. Fed officials in their mid june meeting were already concerned about the possibility of another round of infections from the virus and concerned they would have to provide more stimulus to the economy. Pat parents pants regarded highly accommodative Monetary Policy and sustained support from fiscal policy as likely to be needed the fed has 11 programs up and running to support the economy but showing its thinking about three additional actions first, they are considering forward guidance, keeping low until certain data targets hit probably using inflation asset purchases, que, mortgages or other securities to keep rates low. Finally this controversial notion of a yield curve cap, pegging yields of selected treasury maturities. That said the minutes made clear there was not consensus around yield curve controls, doesnt seem likely to happen at least near term. Some form of new guidance does seem likely if the central bank continues unprecedented support for troubled u. S. Economy, folks. Yeah. Those yield curve caps certainly have been a big focus of investors and strategists as of late, too. Certainly interesting to see what they have to say about all of this. Steve, i just want to shift gea gears a little bit given data. Ism manufacturing showed expansion in the last months even more significant for the market, these adp payroll numbers, private payroll numbers showed a 2. 4 million increase in the month of june but also this massive positive revision for may. How does that set us up for tomorrow and the jobs report from the government . Well, the revision doesnt tell us anything we didnt know. What adp does is simply revises the old number to the existing number from the bls. Thats not new information the 2. 4 million is good news. It shows were coming back it still shows we have a very long way to go had that number been 10 million we could talk about a vshaped recovery ill give you an example, morgan, there were 961,000 jobs added in the Leisure Hospitality business according to adp. If i take the ads this past month of june and then again in may, its still just 25 of the 8 plus million jobs that were lost yes, very good news, were on the way back but still a very long way to go. Steve liesman, thanks so much for that morgan, overall markets up 0. 7 . Still looking pretty decent and recovered a little bit in the last five or ten minutes, 48 minutes left of the session. Yeah. Well keep an eye on that. After the break draft kings has been on a roll since trading in april. Now they will allow americans to bet for the first time on the annual nathans annual hot dog eating contest you heard that right draftkinks ceo jason rob ins up next youre watching cnbc ins up next youre watching cnbc usaa is made for whats next 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. 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Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Welcome back ever wish you could bet on the annual fourth of july hot dog eating contest nathans famous teaming up with draftkings for this years event. As part of the partnership draftkings will offer 25,000 free to play pool and give customers in colorado and new jersey the chance to place bets on this event. Joining us now to discuss is draftkings ceo jason robins. Jason, thanks for being with us today. Thank you for having me. Hot dogs. How did this come about and what will this entail, this betting extravaganza entail. Well, almost everyone i know into sports has watched, many watch every year the nathans hot dog eating contest, july 4th. I have to say theres been a few times my friends and i passed around friendly wagers where kobayashi, Joey Chestnut was going to defend their title or when we were thinking with sports on hiatus it would be a good opportunity. Were partnering with nathans to bring this to everybody. Given the fact that sports in so many major leagues have been on hiatus, were starting to see reopenings start to roll out in the coming weeks, how does that dearth of sports propel the company whether its nathans hot dog eating or recent launch of casino app propelled you to look beyond sports and into other areas and other possibilities in terms of betting. Well, its actually been really great to watch our team come together and innovate weve launched hundreds on tv shows, political debates, things like the nathans hot dog eating contest. Esports a big focus area. We greatly expanded our esports offering you mentioned the casino app we typically integrated casino into Sports Betting but we want an app fully dedicated to Online Casino first customer. Thats been launched now in new jersey weve really just been thrilled to see how innovative the teams have been. Not to say people wouldnt have not anyway but i have to think the nathans hot dog and partnership with Major League Eating may have never happened if everybody hadnt baseball thinking outside the box, what can we do this year to make fourth of july special. Jason, theres so many different types of bets you can do in the middle of a game for regular sports, are there lots of different bets on hot dog eating or is it simply who wins or can we bet on mustard versus ketchup or other side factors like that . We definitely have more than just who is going to win how many hot dogs the winner eats im not sure if you can do mustard versus ketchup bets but ill check on that we do have a variety of things you can bet on in the contest, nathans hot dog eating contest. We have a pool we did available to most of the country, free to play that pool will have a number of Different Things we have to predict along the way in order to win everything from who is going to win to more nuanced stuff, will they eat this many hot dogs in this many minutes. Will the hot dogs be washed down with soda before or after the fourth hot dog, ran tom stuff. Thats meant to keep people engaged and give them something fun to do now that sports are coming back but still a lot of missing sports on tv people are home and looking for something to do. On that point, jason, do you feel like typical customers pivoted to stock market investing in the last few months any data or stories that would suggest that weve heard some anecdotally stories that people have gotten into it. Its no surprise a lot of people into stock picking also like to bet on sports and play fantasy its quite similar in terms of the mentality of the individual. I think people are anxious for sports to come back. Theres a lot of pentup demand. Weve seen that with people getting excited about free to play pools weve done and some of the things weve seen with the recent return of pga and nascar and usc and other sports going on its been really amazing to watch how excited people are a lot of them are first time people watching those sports they typically might have been watching baseball this time of year or Something Else because theres nothing else on tv and they are on board they are picking up sports, including things like esports they were never really interested in. Yeah. I was just going to ask you about that, jason, as we see sports come back in terms of demand, also online, as we start to see more and more casinos open i think of Atlantic City this reopens this weekend and resorts which has a branned sports book, retail sports book with you as well what do you expect on that front . Were really excited people are starting to feel safe and comfortable at reopenings. Theres been different parts of the country with mixed results were hopeful, obviously, that we see the places we have a retail presence. Its not a big part of our business but where we do have a retail presence, resorts casino, draftkings book you mentioned, were hoping all that happens safely thats the most important thing that customers feel comfortable, things go according to plan. Hopefully that will be the case. If so, i think it will be a really fun nfl season at the draftkings sports book. Jason, clearly as weve been discussing, theres been so much more engagement. Whether thats because of the ongoing legalization of Sports Betting in america or people shifting to new avenues as weve been discussing, do you think theres enough education offseting that about the dangers an risks of gambling or shortterm trading we take responsible gaming very seriously its something weve invested in for years. We have a person leading the group, focused entirely on this area its a big part of what we do, a Big Partnership with others in the industry i know the industry takes it very seriously hard for me to comment on the trading side because were not in the investment industry, we dont really know what kind of precautions people are taking with potential new day traders and things like that i can tell you on our side and industry were in responsible gaming is front and Center Everyone is really focused on it and im happy with the prosecuting made and will continue to be made. All right jason robins, ceo of draftkings, thanks for joining us oday. Thank you for having me were getting some breaking news on californias effort to slow down the spread of coronavirus. Aditi roy has details. Aditi. California governor gavin newsom ordered indoor closures including bars, restaurants and movie theaters in those counties those counties include santa clara and los angeles counties thats heading into this all important holiday weekend. This follows the biggest oneday spike in covid positive cases in the state spiking more than 9700 cases. The governor still speaking. Back to you guys. No reaction in the stock market, up 0. 5 on the s p 500 really remarkably resilient markets you could say this week in light of pieces of news like that which weve had tripping out the last couple of days. As a whole up 3. 8 still on s p 500. Weve got around about 37 minutes left of the session. As we said, up 3 4 . The great hedge fund shakeout, another titan of wall street osg on this historic market rebound those details right after this break. 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. Netflix is out with a big announcement moving 2 of cash hollings to Financial Institutions and organizations that directly support black communities. We worked with our banking partners on putting this initiative together. Ultimately we decided to partner directly with hope because thats where we thought we would make impact. Roughly 5 million in a balance sheet. If we can move 2 into these black owned, black led Financial Institutions we think we could make a real difference welcome back to closing bell with about 34 minutes left until closing bell s p trading at session highs well keep an eye on that. Smart money facing a reckoning new levels highest liquidation in four years. Another titan says hes converting his fund into a family office. Leslie picker has the story for us hey, leslie. Hey, morgan this move has been in the works for quite some time. John paulson making it officials converting his hedge fund into a family office. He told investors today in a letter hell be returning all his capital, all the capital in the firm 24 years after starting pauls paulson and co. He did not give a reason for the consideration but was considering this before market volatility tied to the pandemic. Now, he is not the first manager to liquidate this year and wont be the last. In the Third Quarter new launches hit a new record low. Thats all paving the way for greater consolidation in an industry that continues to struggle, guys. The point here being that this is because they are finding it too hard to outperform or they got to the point in their lives or career they are so rich and successful they dont have the energy anymore its too difficult to outperform, wilf if you look at whats going on in the market right now, winning bets are fang. Who is going to pay a manager 2 and 20 to invest in fang when you can do it with index fund. Hedge Fund Managers increasingly finding it more difficult to generate alpha, look at fundamental analysis and do some modeling and pick stocks and pick investments that are able to outperform in this current environment profit leslie picker, thank you for that still ahead, the Restaurant Industry hit hard and dennys is no, sir exception. Down 50 well speak to the ceo about their business and new effort to get americans back to work check in on bonds yields moving a little bit higher today, the tenyear currently yielding around 0. 68 with the s p up 0. 8 as we stand were back in a couple minutes time for cnbc update with sue herera hello, sue. Hi, wilf, hi, everyone. Here is whats happening this hour the mayor of virginia ordered removal of all confederate statues standing on city land. Can you see Stonewall Jackson being taken down the disputed statue of robert e. Lee is not affected by the move since it is on stateowned land. Yale University Said it will hold most of its Classes Online this fall. Some students will be allowed back on campus but will have to be tested for the coronavirus every single week. The head of the World Bank Says the pandemic is widening the equality gap worldwide Central Bank Asset purchases in advanced countries help the richest. It will take years for economic output to recover to prepandemic levels you are up to date thats the news update had hour. Morgan, ill send it back to you. Sue herera, thank you after the break, the u. S. Averages just turned in their best quarter in decades. So should investors look abroad for the second half of the year. Well ask Morgan Stanleys next. You may be learning about, medicare and supplemental insurance. Medicare is great, but it doesnt cover everything. Only about 80 of your part b medicare costs. A Medicare Supplement Insurance Plan may help cover some of the rest. Learn how an aarp Medicare Supplement Insurance Plan, insured by Unitedhealthcare Insurance Company might be the right choice for you. A free decision guide is a great place to start. Call today to request yours. So what makes an aarp Medicare Supplement plan unique . These are the only Medicare Supplement plans endorsed by aarp because they meet aarps high standards of quality and service. Youre also getting the great features that any Medicare Supplement plan provides. You may choose any doctor that accepts medicare patients. You can even visit a specialist. With this type of plan there are no networks or referrals needed. Also, a Medicare Supplement plan. Goes with you when you travel anywhere in the u. S. Call today for a free guide. Hong kong protesters filled the street as the first arrest under chinas new National Security laws for hong kong. Boris johnson announcing uk would offer residency and a path to citizenship to nearly 3 million residents. The coronavirus pandemic as cases continue to rise causing eu to block american tourists from reentering the union as it opens borders to other countries. Breaking down all of the headlines, ruchir sharma, Morgan Stanley chief strategist thanks for joining us. I guess first question on hong kong, how big a step do you think this was this week by china to the extent you expect an exodus from hong kong or less serious than that. I think this has been building for a while i dont think this news event is something which is going to add to this general pessimism building in hong kong for the last few years or so i think if you look at the market reaction, its pretty indifferent to whats happened this week. So this is more of a longterm issue as far as hong kong is concerned but not something i think that we should react to in terms of the news event that happened this week. When we look at a snapshot of the market performance, ruchir, the u. S. In general outperformed the rest of the world. Interesting to see how strong the german dax was whaup because they have handled the virus fairly well . As you look at the rest of this year, is it safe to bet on the countries handling the virus best of all or is that already priced in . I think that is just one factor but it does tell you something about a very important factor as you know, what i try and do is try to look at number of rules to know which nations are likely to emerge more successfully over the next three to five years. The most important rules which emerged in the post pandemic include deglobalization, digitization, footballia, and states capacity to handle problems in this regard germany is the one major nation which scores well on all these four rules so if you really look at in terms of whats happening in the world today, the one Major Economic coming out of this pandemic looking good on every front is germany so therefore im very optimistic on germany this crisis has proven there is something to the germany model of cooperation that we see and the fact it went into the crisis with a very low debt level compared to other countries. So its been able to have possibly the largest stimulus of any major country in the world that has been enacted. Germany has hadthe largest stimulus of any major country in the world because of its relatively low debt levels when it started out in this crisis. Thats interesting to hear your comments on germany, ruchir im curious what you think about supply chains because were seeing changes afoot it started with tariffs and trade tensions before the pandemic struck and now it seems like some of those trends are accelerating whether it is whats going on between the u. S. And china where Something Like semiconductors and health care and drug manufacturing is concerned, the revocation of that special trade status of hong kong, the fact that usmca went into force today here in north america as well or even a country like japan that is offering money to its own manufacturers to come back and bring their operations to japan and out of places like china, what do you expect those supply chain dynamics to look like and what are investing implications and implications for emerging markets. Right so i think two sort of outcomes here one is that in general for emerging markets it poses a major problem. Because of this era of deglobalization becomes much more difficult for emerging markets to follow the model, on the way to prosperity. Thats how japan anderson china after that have been able to grow so rapidly because of the booms. One of deglobalization, onshoring, less outsourcing and that makes the model in general more difficult for emerging markets to grow rapidly when your export has been cut off having said that, there are a couple of countries in asia that are benefiting for now at least from this diversification of supply chains. The most Interesting Company is vietnam. In fact, in many ways vietnam is emerging as the next china it doesnt have the scale of china, like with a population of 100 million, it has many things going right for it in fact, its possibly going to be the Fastest Growing economy in the world this year the growth rate when everyone is contracting because theres so much redirection of the supply chains thats happening towards vietnam. The other country thats benefiting is taiwan its strength in semiconductors is really coming through its strength in technology, everybody wants a piece of that. So i would say these are two nations that are benefiting in this deglobalizing world, which in general, otherwise, is not that great for companies in general and emerging markets relying too much on this. Quickly do you think inflation is underpriced if so, how should people be positioned i think so. The world im talking about, and i mentioned a factor unlikely to dominate in the post pandemic world, deglobalization, got to do with too much debt and the risk of Central Banks forced to monetize the death i think inflation is underrepresented risk. The problem is this, anybody gunning for high inflation sounds instantly discredited because these forecasts have been so wrong for the last 20, 30 years inflation is constantly a surprise on the downside now the conditions are set for inflation to move higher over the next two to three years. Talking about gold, but in general commodities i think is a case that i want to make for the first time that you want to have more hard assets, have commodities. I think inflation expectation, some of the tips, that you want that as part of the portfolio. I think that the inflation risk is underappreciated. For the next two or three years youre going to see those risks rise materially as one by one the supports that have kept inflation, so suppressed for the last 20 or 30 years, those are giving way whether deglobalization or the risk of too much debt monday advertised in the year ahead. Ruchir, thank you for joining us good to see you. After the break, tesla hits another milestone and beyond meat takes a big step into china. Those stories and much more inside the market zone 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. 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. 15 minutes left in the trading day. Now in the closing bell market zone commercialfree coverage of the action going into the close. Cnbc mike santoli to break down the trading day. Wealth management ceo josh brown with us as well. Good afternoon to you, josh. Lets kick things off with the Broader Market stocks are rallying on the first day of the new quarter with s p and nasdaq at session highs. Nasdaq currently on track to close at its own record closing high the dow is flat as we stand. Mike, its been quite a roller coaster ride since the close last night reacting to headlines on the virus news. Quite impressive were here despite headlines quite conversely. First of all its summer. It does get jumpy based on headlines, quarter end flows and the rest were talking about its a seasonally strong period right up against july 4th. This is a market where the few can cover the sins of the many its not an indictment, when you get spooked by macro, we have the largest stocks in the market, also the ones with the most momentum, best financials, highest kind of financial quality and almost have a defensive attribute to them. That would be the big nasdaq stocks nasdaq 100 is outperforming equal weighted version of nasdaq 100 by 1 percentage point. Can you buy microsoft and it takes care of anything going on in the russell 2,000. Jersey shore, im curious obvio josh, im curious. Massive move, best for the quarter in two decades the Second Quarter that ended yesterday. On the flip side youve seen a real breakout in gold going above 1800 were near a nineyear high and realize it settled lower on the day. Its been a similar situation in terms of treasuries with yields on some notes hitting record lows, trading near record lows what are goals and treasuries of some of these more traditionally safe haven classes telling us that is different than equities . Yeah. So i think mike makes a really interesting point about the few covering up for the many, and it just so happens that the many were talking about in this case, the usual suspects, industrials, banks, et cetera, their market caps are not big enough to matter that much to what the averages do on a closing basis. So then you look at the nasdaq names here at an alltime high, record closing monthly high and you see 72 of nasdaq names are above their 200 day. Then go look at small cap 200. 28 of small cap 600 are above 200 Day Moving Average that means more than threequarters of small caps are either in no mans land or a down trend that is a disastrous condition to that market it doesnt seem to matter what goes on with markets its designed that way theres a lot of confusion among investors depending which 10 they look at first when they log into their account looking at gold i would throw in reits. These are two areas people accumulating, have nothing to do with tech. They have a lot to do with people being concerned with extremely low rates on the treasury side and no expectation of any kind of rate hike any time in the near future or they have to do with people being concerned about geopolitical volatility, the election, the government kind of losing control of certain parts of the country and just this looming sense that when we head into the election there will be instability, not just social media but out in the streets gold tends to work in environments like that goltd is at the highest level since 2012 nobody who bought gold over the last four years has a loss and its a commodity so the way this tends to work is it trends for long periods of time once it gets into a defined trend. I dont think anyone would disagree were in a defined uptrend up 65 from 2015 and were about to take out the 2011 highs, alltime highs. So you will see that feed on itself, and you will see people start to tell stories about why they are buying gold some will say its inflation, others will say deflation and neither camp will argue with each other, even though two things are the opposite, continue to buy, new highs in gold i think it will start making the cover of, you know, magazines, newspapers. Mike, josh pointing to the fact big tech stocks have a lot of momentum. What have the flows been like into the tech name. Thats one of the cautionary issues the inflows into tech, etfs, they did have a tremendous surge, looks like on a shortterm basis youd want to take the other side of that and maybe gotten into overlogged, overheated so many other things are working in favor of reinforcement high liquidity environment where you have doubts about the economic pace and they just continue to kind of roll ahead so the flows have been very strong you would expect them to take a pause that would definitely penalize indexes that has not taken hold for very long in this stretch, that kind of dynamic. Why would we be surprised by flows . I want to say one thing, why would we be surprised by flows flows have always followed performance since before we were even keeping record of such a thing as flows everybody understands this so if youre an investor and you have a dollar to invest and you see shopify was 300 a share in march and hit 1,000 today and you see tesla go from 350 to 1150 in 2 1 2 months, of course your next incremental dollar i going toward what just already worked thats the way this has always been played. I would be more surprised if the flows into tech only etfs werent as strong as they are. The fact that they are strong is not surprising at all. Its not surprising when they do get above a certain pace, it usually means, okay, everybody figured this out, time for a break. Well see if that plays out. I agree. That was a perfect segue into our next topic, tesla. Tesla shares hitting a new high and the company surpassing to it in market cap to become the worlds most valuable automaker. Phil lebeau has the details. The market cap considering this, you go back a year ago and look at market cap it was about 42 billion. Today its much higher than that, up 164 billion and has now put toyota, put tesla past toyota in terms of market cap here is how the two companies stack up tesla with market cap of 208 billion toyota alt 203 billion. We take a look at teslas deliveries over the last seven years, ep could in mind awaiting q2 delivery numbers, expecting that in 24 to 48 hours they never give an pact time when they come out dont be surprised if its tomorrow guys, this is a company thats only been public a little over 10 years and is now the most valuable automaker in the world. Truly astonishing phil, thank you for that cbs and Dunkin Brands facebook advertising. Worked at facebook after the social media giant bought his company. He joined squawk alley on facebooks leadership during this time. Zuck is probably going to do whats best for facebook of hes a sharp guy. Whatever he does is going to make it as big and powerful and influential as possible. Josh, why has the stock bounced so quickly well, i think one of the key things with facebook is they to lose big name advertisers there are new ones willing to step in. That has historically been what bailed it out. They went through a lot of the same thing they are going through now post election. A lot of the blame for misinformation was being pinned on them. The stock had a dramatic nosedive if you blinked your eyes or went on vacation you missed it. This is a stock that has a history of being in hot water and then all of a sudden having the investor class forget all about it sometimes thats because facebook solves the problem or puts a colorful bandaid on it other times its because people move on and stopped caring as much i think theres some sense that advertisers can only boycott Facebook Properties for so long before it starts to hit their revenues there really isnt any platform as good as what it does as facebook and instagram are. Yeah. Thats such a key piece of the discussion here. It really sort of puts that facebook dominance to the test well see how it all plays out meantime fedex is the best performing stock in the s p 500 today. Its on pace for its best day, best percentage daily gain i think ever going back to the ipo and Frank Hollande has the details for us frank. Good afternoon. It was on pace this morning for best day average, shares following a little bit toward the end following a blowout report Ground Division handles residential ecommerce delivery growing 3 year over year, average revenue per package growing 5 year over year. Ground trading high on confidence bec commerce will be strong 2020 with showing ecommerce peaking in q2 and falling slightly for the q4 holiday season. Thanks for that beyond meat is a big winner today. Aditi roy explains why aditi. Shares are up 6 right now. The stock is heading for its best day in nearly a month and the company broke a fiveday losing streak yesterday, the longest since may. Now beyond shares are up 2 from their march low. Thats because the Company Announced it will soon start selling its products at Grocery Stores in china through a partnership with alibaba starting with 50 stores this summer the announcement follows beyonds launch at starbucks and yum chains in china this spring. Back to you guys. Aditi, thanks very much josh, too hard to value or a story with momentum behind it that you like . No, its a very reasonable 301 pe, falls squarely within my value basket lets skip that conversation because the stock wasnt cheap at 50 eithand its almost triplt that level lets put that aside lets say within three, six or twelve month time horizon valuation wont move it up or down here is a trade. So 129 was resistance for beyond meat in january of this year and again in late february it fell both times at that level. It broke out, and then you see a week or so ago when it fell on for whatever reason. That level 129, 130 is exactly where the buyers came in that previous level of resistance that it had trouble getting through has now become support. I would be long the stock here for a trade. I would use 129, 130 as my stop. The market will tell me very quickly within 11 points on 141 stock that im wrong im willing to risk that 11 points because if this breakout continues, this is the kind of stock that can just absolutely defy gravity so i would not go into this as an investment. I would not buy this and delude myself into thinking im getting a bargain. From a pure risk reward standpoint i think you can work with that fairly tight stop if you want to be in it and i think you can own it right here. Yeah. I do think its notable, an expansion in china, swine flu how hard that hit hog prices in china last year which was really one of those things that played into phase one trade deal between the u. S. And china it does seem like a big potential opportunity. Weve got two minutes to go here in the trading day and mike has more on market internals, mike. Morgan, they have been pretty mixed all day, i have to say, a 50 50 split between up and down stocks, volume split on new york stock exchange, much more skewed to the negative and that reflects relative weakness in average stock and smaller stocks as well. You look at some of the strengths and weaknesses sector wise, software, reliable on the soft side, up 2 as a group. Dow transports even with that fedex and ups move, inside that index they gave way from the opening. Its obviously an anticyclical more like secular growthtype trade. The flavor of the day. The vix has given way. This was as i said stubbornly above 30 now down below 29. One number to keep in mind is 24 and change that was near the highs in june of the s p lows of recent run for vix moving in the right direction but no hurry, guys. We have lost steam in the last half an hour or so. The dow negative by 85 points. It had been up 200 points at the high of the session. You can see the last hour or so particularly negative for the dow. If we play this silly game every day will people look at closing order imbalance is and didnt come through on bull ssh side, there we go, air pocket. Pfizer off its highs as well. Of course one of the key positive factors for all indexes. S p up half of 1 . Nasdaq composite still leads and still just about in line for record alltime closing high today. It is at 1 . In terms of the Sector Performance on s pel real estate and utilities at the top highlighting there its not particularly bullish construct today. Nonetheless those two sectors up more than 2 , Communication Services up more than 2 because of faebcebooks strong rebound. Sect or 2 1 2 as Oil Prices Rise stocks are low at the close, morgan, were up half a percent on s p 500, a healthy 3 1 2 in three days this week. Nasdaq alltime record closing high up 1 welcome to the closing bell. Im sara eisen with wilfred frost, mike santoli, cnbc commentator. Where we finished with stocks right now. A mixed picture in what has been a seesaw session for major averages of the first day of the Third Quarter. As you see there dow finished down fractionally. 3 , 77 point lower. S p held onto gains finishing half a percent, 3115 and nasdaq outperformer of almost 1 in this trading session as wilf just mentioned hitting a record closing high, a fresh record closing high today. The russell 2000 underperforming down half a percent, transports which started the day as strongest of averages also finishing in the web trade web meantime has been one of wall streets hottest ipos since it went public last year coming up we will ask company ceo whether soaring electronic trading volumes will continue once the Coronavirus Crisis ends right now joining us to talk about this market day Wealth Management ceo with us Global Investors mona is here with us as well. Thanks for being with us mike santoli, ill start with you. I know you just mentioned an air pocket but overall how would you categorize the market this july. I would say below the surface it was kind of in a benign way difficult guessing the move at the end of this quarter, the last couple of days. We are solidly above the low end of this trading range but not making much headway beyond it. When this market goes in flight to safety mode within the stock market, what it means is it buys the stocks, that drove thing average stock s p flat on the day, s p manages half percent of progress because of microsoft and amazon and other names that was the story for today its not always the same way yesterday i was talking about semis and banks are strong hard to be bearish today they both were kind of soft so its a mixed picture. In terms of some of the news that weve had today, apple reclosing some stores, california joining a list of states that at least paused if not reversed slightly their reopening plans. Would you have expected that news flow to hit equity markets more than it has you know, i think really what weve seen since mid june is the markets reflecting this bit of a pause were seeing in the reopening story. This mid june outperformance once again from covid winners. Areas like tech, health care, discretionary, all showing leadership those cyclical reopening sectors have once again taken a back seat, pretty soft. That does reflect fundamentals we have seen pullback in states, new york and new jersey, even the private sector noted apple, disney, for example, pull back theme store reopenings so i think generally speaking were once again in this old playbook where were seeing secular growth take a leadership role thats not to say reopening trade is dead forever but perhaps the true secular reopening cyclical trade will come back when we perhaps are closer to that vaccine, closer to a true return to consumer confidence. Josh brown, morgan mentioned the russell, which it started the day positive and ended negative you could look at some other sectors Like Airlines very much losing intraday gains. Is that a concern when you see that type of profit taking quite quickly . Its not, because i think that a lot of the new money thats coming to this market and that has been moving stocks around is by definition temporary money. I think a lot of hot money came into Airline Stocks as they were going up 10 or 11 a day for a stretch of time this summer. Once you have hot money in a stock, it changes its character and how it acts day to day or intraday so the types of investors that you would think are the investors that are moving Airline Stocks, for example, you would traditionally think its value investors. That used to be Berkshire Hathaway the largest shareholder in four out of the five Largest Airlines thats not whats happening. Whats happening people renting stocks, 6 rides up and down i wouldnt look at that and say thats bothering me to any extent i do think that the rate sensitive stocks rallying is really the Bigger Picture trend rather than the countertrend of the reopening stocks the real trend in addition to tech, anything that pays a good yield and has a good balance sheet. Those stocks rallied today. Yeah. Lets get to josh lipton for more on apple stores reclosure. Josh. Yeah, thats right. As covid19 cases are rising apple is saying its going to be reclosing more of its stores here so specifically reclosing 30 Additional Stores in the United States tomorrow that means apple has reclosed in total, by the way, 77 stores now here in the u. S. This latest wave of reclosings include stores in alabama, georgia, idaho, louisiana, nevada, oklahoma, and california in fact, in california we know theres been this uptick of cases. Governor newsom ordering 19 counties, which by the way account for 70 of the states population to pause Indoor Dining and reopening of movie theaters and indoor businesses, those guidance in place for three weeks. Back to you. Josh lipton, thank you. Going back to the apple closure or what josh was saying theres been a push pull you had promising coronavirus data from pfizer this morning, solid economic data, ism manufacturing. As the day wore on, we had ongoing concerns around resurgent coronavirus cases. Total growth in the u. S. Hit a new single day record. Its the first time weve seen that in a week of course more pauses and scaling become of some of these state reopenings so it seems like a lot for investors to juggle here at the end of the day, what is priced in . Yeah. Absolutely i think generally speaking when we think about what weve just been through in the last couple of quarters, down 30 q1, up 20 q2 when we look forward, we dont see the same volatility Going Forward. While we dont see another, for example, 35 rally off that march 23rd low we just got, we do continue to see the market could grind higher Going Forward. It does seem like the trend is upward we do have to get through some of these walls of worry. The latest wall of worry is rising cases here in the u. S. Weve seen a little pushback on that in terms of reopening going back to areas like bars and restaurants. We have not seen wholesale closure of regions, states, cities, et cetera. We dont probably expect too much of that theres not much of a political appetite Going Forward the other big wall of worry well have to climb is the election historically when you look at market outcomes after an election period, we do tend to get positive momentum despite which party wins, just given the uncertainty is lifted. So as we head towards year end, we could continue to get opportunities like weve seen in the past couple of weeks, tactical opportunities to add to portfolios, add to some of those core secular groups, ahead of a potential positive year end. Keep in mind some of the technical factors weve mentioned also seem to be in our favor. One, we continue to see elevated cash on the sideline those institutional and retail two, s p holding pretty nicely, 3,000 moving average and three, the vix we talked about earlier continuing to come down, certainly peak fear march 23rd seems to be behind us p. Josh, just wanted to go back to apple, up 24, 25 so far this year is it a real beneficiary of the stayathome trend the way amazon is. If not, why is it so much higher this year . Apple has transcended every other company thats come before it that was consumer electronics. Its basically become a staple for upwardly mobile middle class households and up. They replace products, get the watch, airpods they dont need to visit the store to do that when the new phones come out, 5g phones, everyone ready for a replacement will replace them almost regardless of whats going on with the overall economy or even their own employment situati employment its just what apple carved out. Thats not going to change its not just work from home, its work from anywhere. Thats whats going on people in knowledge economy are relying on apple in order to be able to do that. If you think there is a sudden reason that trend is going to stop on a dime, share it with me, but ive not heard a compelling one so thats why you have a stock thats 1. 5 trillion in market cap sitting near alltime record highs with a large percentage of its stores closed, with its supply chain disrupted, and really with minimal volatility given enormous gains within a compressed period of time. That is why. If you tell me a reason that will change, id love to hear it but i cant think of one. Actually, you know, wilf, i would throw out there to be more abstract about it. The market is basically viewing apple as a massive pool of future cash flows incredibly scares elsewhere so its in the same bucket as all the other trillion Dollar Companies and goes well beyond what anybody thinks about 5g phones or services story or upgrade cycle or anything else and basically says if that 50 billion or whatever it is in Free Cash Flow is going to be there, i cant find anything like that anywhere else, so im going to price the equity down to a level that somehow goes right up against what Corporate Bonds are getting right now. Thats part of the answer. Its not just about the resilience of the brand and product. Apple did slip on the store reclosing stories, ended down 0. 2 despite nasdaq composite closing at record alltime high. Josh, mona, thanks so much for joining us see you again soon pfizer popping after Coronavirus Vaccine, ask top pharmaceutical analyst whether he thinks a vaccine could be ready by january anwhh ocd icstks will be the biggest beneficiary of covid treatments were back in 90 seconds 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. Shares of pfizer high after early positive data on Clinical Trial of covid19 vaccine, help boost overall Market Sentiment after the news crossed the wires. Lets bring in analyst at jeffries great to see you, michael. Thanks for joining us. Clearly positive data, thats great. But just how great is it wilfred, good to see you. Theres two important points about this data. The first is we should be positive and optimistic about the fact that these products are continuing along to more positive data with pfizer and moderna, continuing along the goal of operation warp speed to have something available to the American Public by january thats great the second thing i think is positive is that they are, in fact, generating lots of antibodies that should be protective they are safe and well tolerated. These companies, including pfizer today, are absolutely confident that we are about on track for that goal and well talk more about that obviously but does look like were on track. Realistically, though, were still talking about early next year for widely available. Yeah. I think that our audience and Institutional Investors were talking to, its clear that while there may be a vaccine or vaccine candidates available from pfizer, moderna, astrozeneca and others by the november election, by januarys whatever you want to say, that would probably be for an emergency authorization type of designation for highrisk individuals, for elderly, for frontline responders in 2021 much more broad availability per pfizer, a billion doses available. I think there is a matrix as to that availability and certainly questions as to how many people would take it that quick as well. Yeah. Given the fact, michael, there will be questions about how many people will take this and how many people willing to undergo some of these tests as well, obviously pfizer was the big headline today also you have this vaccine for astrozeneca going into phase three. Moderna and a number of others right now. How many vaccines potentially could be successful, how many supported by the market when the time does come for people to look to take these well, look, if you add up the numbers for moderna, from pfizer, from astrozeneca and j j, top four on track, billions of doses in 2021 if you do the math on that, certainly from the major european countries, u. S. , 325 million people, im not concerned about a capacity issue in 2021. I think its actually a question of how many people would take it you look at flu vaccines people only around 40, 50 of people take a flu vaccine. We can debate how many people do it here. Im not concerned about capacity, im worried whether we have it, how much that will control the case numbers and then certainlyfor investors ho much this helps the economy and where the market is going. Michael, whats your take on the data in spikes in certain states again and how close we are for it getting somewhat out of control yeah. I think you take a look and i think surely the market doesnt seem to be super surprised but i dont think anyone would say if you start unlocking people, going out to restaurants youre going to see an increase in the reese of cases i think the two things that are important for people and why i think the market is taking this okay is, number one, these are younger people these are aware the death rate and mortality rate is different from elderly i think thats one thing to consider most important for the market and certainly for the country is that the capacity and the preparation for this outbreak is better certainly you are seeing capacities, icu beds, all of that type of stuff, were better prepared for that. With the combination of social distancing, masks, preparation capacity and treatments, remdesivir, et cetera, i certainly think were going to be in a better place even if theres an increase in rising cases. Yeah, you make some very key points there i want to go back to the technology of some of these vaccines real quick. First i guess m rna, which is moderna, pfizer versus traditional methods used by astrozeneca and j j, the fact its not as proven, what do we need to keep in mind for protocols going from phase 3 to mass dissemination. Sure. Ill explain to you what the experts are saying number one, of course, any time you have a new Novel Technology where you havent had stuff approved, havent had vaccines proven and havent been in thousands of patients both from moderna and pfizer beyond which is also an m rna vaccine note those are similar of course you should have natural concern this is what needs to play out. On the other hand, we believe that the potency could be better, and we also believe that the ability to retreat, so they can get it again would also be a practical positive for mrna traditional from astrozeneca and others are more proven but may or may not have as much potency and may not be able to be redosed again. On behalf we believe all the efficacy levels should be somewhat similar, not only efficacy but how long that lasts. But im not overaly concerned well have this available. Stay tuned its looking good so far. All right michael yee, thank you for breaking it down pfizer did end the day up 3 believe it or not earning season is right around the corner up next mike santoli on whether the increasing number of companies no longer giving guidance will have any impact on the market and as a reminder you can watch oris lten live on the go on the cnbc app well be right back. 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. Welcome back earnings season is just around the corner mike santoli is taking a look at future guidance amid so much uncertainty. Mike. A big shrug when it comes to whats going to be ahead here is a chart of the number of companies that offered guidance. This goes back about 20 years. Obviously falling right off a cliff. What also you can see, by the way, is kind of a subtle down trend over the last several years after regulation disclosure around 2000 almost everybody gave guidance people rethought the progress. Here is why im going to suggest it doesnt matter. If you are one of the few companies that suspends guidance, youre an offender if youre one of almost all companies that spends guidance youre a victim of environment investors knew, bottom fell out of the economy and no budgeting expectations that could have relied on. Here is when does matter, the trend, earnings going ahead 12 months that curled higher if you basically looked at what the analysts are saying in aggregate, also plunged with the markets and along with guidance expectations and curled up very subtly and nowhere near what we earned in 2019 but see the market led the way on that turn. You can argue whether markets run too far ahead but thats always the way it looks at a major bottom in profitability for companies right now. Not a cheap market in fact looks expensive on this basis, a matter of how fast we get back to Something Like that level of earnings. To me the lack of guidance in itself doesnt say much. By the way most likely sets up companies for a big potential to have kind of relief rallies because of better than expected results when they do report earnings. Collapses i think, mike, its really interesting. We often have this debate periodically when ceos and Market Participants come on to give guidance so often were going to give a glimpse now on what the consequence of that is. It might not be the same ceos would have expected or want to see, which is a lot more volatility i find it interesting when they say too much guidance against it without guidance the analyst is still going to make their own estimates, just less accurate, still a consensus we mark them against, just going to be potential for much bigger misses or beats. The risk reward kind of bargain that is struck by companies. Do they feel as if giving guides first of all, information exists, companies have expectations for what their numbers will look like information exists inside companies, better to have it outside the companies, have an idea of at least what they are anticipating i will say before 2000, before you had this formal guidance process, there was guidance, they whispered in the years of the analyst to preferred investors and got into the market in a less efficient way. With questionable morals with that, i guess, maybe not quite inside the trading. Before that it was not clear what the actual legal standards were once those were formalized you have to give it to everybody. The other takeaway from the charts when we go back is mums is the word, also mum, not mom in america, that one phrase. Thats right. Thats because mum in middle english has to do with silence, nothing to do with your mother. I did not know that. I looked that up. I was just surprised to see mum. If youre watching, mum, im sending you my love. I doubt you are. But anyway another big company joining, Julia Boorstin with details. Julia. Wilf, thats right. Chipotle is the latest company to join the boycott. It will be halting facebook and instagram, saying chipotle to brand purpose cultivating a better word and paid advertising on snag july 1st while we Work Together to understand changes they are making. Of course this comes as facebook is working very hard right now to communicate to advertisers everything it has done, not just in the past few years but changes it announced since friday also saying they want to work with them to make more changes about the particular issue of the boycott, cracking down on hate speech and racism on the platform. Over to you. Thanks for that facebook sliding a little bit there but, of course, enjoyed a significant rebound in the last couple of days stock has rallied more than 120 since going public in april 2019 up next well ask the company ceo since start of coronavirus zeisis and feds indefinite ro rates policies are impacting the bottom line. Soared 60 since march 23rd close as weve seen more electronic trading, more volatility and more work from home one area seeing surge, portfolio trading, large baskets of bonds in a single transaction. Those trades approaching 100 billion in volume globally and already surpassing 2019s volume joining us for more ceo, cofounder mike will join this conversation, too. Good afternoon to you. Thanks so much for joining us. I guess my first question is sort of big picture question about the markets and themes from your seat youve observed in 2020. Huge big daily moves will that be the norm and what has led us to that point well, whats been happening for a number of years with tradeweb, an acceleration of the market moving into electronic trading. As this year turned and we hit the covid crisis by march, extreme volatility really spiked our volumes to a point that we were trading a trillion a day on our markets, which to put in context is 50 more than all of the u. S. Equity markets. So volumes have certainly surged as volatility has surged what were really seeing now is a change in behavior as people are working from home, all of our clients are trading from home, were seeing even more of a change in acceptance of moving into an electronic and digital environment. So have you benefited more than traditional brokers and banks that may in the past and still today have done a lot of trading over the phone, or, in fact, are you kind of partnering up with them i think its both i do think we are benefiting with this acceleration certainly the move to home in and of itself we have over 10,000 traders that went from an Office Environment that are clients into home environment virtually overnight that went incredibly well for tradeweb and the team at tradeweb weve seen an acceleration and adoption, greater adoption of electronic trading as a result of the changing environment. The electronicification in the 80s, fixed income followed a similar path in the last few years but always been a sense that perhaps fixed income products and nonequities would not be as suited for this type of trading whether because they are more buy and hold or issuer driven, not every bond trades every day, for example is it the case there are impediments to having it go fully electronic and digital certainly the bond markets and derivative markets that were in our complex markets they are all theres a variety of different markets within the scope of bond markets. Government bonds, for example, have been trading very electronically for a number of years. The credit markets, Corporate Bonds, have been moving more to an electronic footprint because of the diversity of the bonds, the number of bonds has made it a little more challenging. What were seeing right now is really an additional phase, an acceleration into the electronic environment both from a couple of obvious reasons one it is a real cost savings. The second is its a tremendous efficiency when you couple that with the environment were all in now, which is working from home, these efficiencies really are very extreme and benefit people. I think were now starting to see what i would see as fundamental behavioral change and folks are much more comfortable interacting electronically. We mentioned the business of portfolio trading, big blocks of bonds, facilitating flows in and out of Exchange Traded funds there has also been a little bit of a concern about fixed income etfs as a category as you know, idea being etfs themselves trade so freely every day, in normal environments its perfectly fine if there are stresses under lying instruments, bonds, dont trade as well and that can create dislocations. How are you navigating that . Do you think thats still a risk on trade we have a significant electronic etf business in addition to Corporate Bond business and Government Bond business i think what were starting to see is those markets become interconnected electronically. This is a huge advantage if you envision thousands of institutions around the world that are on the tradewebs network and are able to trade between etfs, Corporate Bonds, Government Bonds electronically, it allows for new types of entrants into the market to provide with liquidity, other Market Participants, algorithm issuing trade ealgorithmi traders. As it becomes interconnected it creates a much more safer environment and environment already in the market. Lee, its morgan, the last time we spoke over a year ago going public, good to see you again. Im curious about this explosion of debt weve seen, not just on the corporate side as Companies Look to raise more capital with coronavirus, but also in terms of Government Spending where its fiscal, Central Banks, monetary in the world right now. How much of a tail wind is that for tradeweb. For sure thats a great point. You know, there are literally, its in the trillions the amount of debt thats being issued by governments around the world in the u. S. , europe, asia tradeweb started off as Government Bond trading network. The fact we play such a significant role in the echo system of trading in Government Bonds around the world, the fact theres more issuance makes our role that much more critical because were effectively connecting all the different parties to interact electronically we have seen and are able to kind of observe as theres more issuance in general, theres more secondary activity. Obviously as a trading platform, a toll taker, essentially, the more activity there is and certainly the more volatility there is, the better it is for our business. Lee, thank you for joining us today. We appreciate it. Thanks for having me. Still ahead, dennys shares are getting crushed after announcing a new Stock Offering to raise cash. Speaking of. Coming up, we will ask the company ceo how he plans to use that cash and how hes ensuring diners are safe and workers as new cases surge across the country. Stay with us 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. Yeah yyeah yeah hey, hey time for cnbc update with sue herera hi, sue. Hello, wilf hi, everyone here is whats happening this hour georgia and tennessee reporting record covid19 cases just in the last day georgia confirming nearly 3,000 new infections and has narrowly overtaken arizona for total confirmed cases. Near dallas, texas, long lines as people showed up to be tested for the coronavirus. Texas is one of several states seeing a record surge in the last few days. The governor wants the ability to test 500 People Per Day at each site but the tests are in short supply in Seattle Police have cleared protesters from capitol hill organized protest zone while there was some clashes between police and demonstrators, the confrontation was over in half an hour in washington, d. C. , on capitol hill there is broad bipartisan condemnation of chinas new security law in hong kong. House Speaker Nancy Pelosi calls it a crackdown on hong kongs freedoms gop representative chris smith called chinese leader xi jinping a pervasive human rightsabuser end quote. You are up to date morgan, i will send it back to you. Its a story i dont think is going anywhere any time soon. Up next, a big push to reopen dennys rehiring employees as it starts to return to normal following virus related closures well speak with dennys ceo about what the company is doing to keep workers and diners safe. Closing bell will be right back 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. And geico loves helping riders get to where theyre going, so to help even more, geico is giving new and current customers a fifteen percent credit on their motorcycle policies with the geico giveback. And because were committed for the long haul, the credit lasts your full policy term. The geico giveback. Helping riders focus on the road ahead. Weall around the world. Ally tough time right now, the geico giveback. And covid19 is still impacting so many people. If youve survived it, then youre the heroes we need. The plasma thats in your blood can literally save lives. But we have to act fast. So please donate. You fought for your life. Now, lets Work Together to take down covid19 to donate plasma go to thefightisinus. Org Prime Minister h welcome back to closing bell. Shares of dennys taking a hit, the company raising 80 million in cash Stock Offering finishing the day down 10 separately the chain also announced, though, it will be hiring 10,000 restaurant workers by the end of 2020 94 of dennys locations have reopened as of june 10th sales meanwhile are just 40 of what they were last year during the same week. Joining us now, dennys ceo john miller john, thanks for being with us. Thanks for having me. I want to start with the news of the afternoon thats the fact we have another major market here in the u. S. , california, which says its going to close Indoor Dining in 19 counties including l. A. County the fact weve seen pauses or rollbacks in terms of restaurant reopenings in a number of states, also in cases where Indoor Dining is in place, rollbacks and capacity, how are you navigating that and what does that mean in terms of dennys and being able to get restarted and make these hires well, weve been impressed with the teams we have out there. We have extraordinary franchisees and Company Operators very scrappy in these challenging times. Wanted to look out for employees and guest safety and build the business and take care of the communities we serve dennys on demand, go to dennys. Com to order online has been popular, Third Party Delivery partners have done a great job serving our products, breakfast, lunch, dinner late night in the communities we serve but also as these restrictions lifted weve seen a lot of interest even in waiting to come into the dining room with 25 or 50 open. That interest continues to grow. Weve been heartened by these measures, wanted to keep the public safe. For instance in texas, there was a rollback much like california. With that rollback and social distancing and masks and gloves and sanitation protocols in our restaurants, guests have been willing to wait on the busier weekends to come in for a dining room table so we do need to hire about 10,000 employees across the country right now. When you say hire 10,000 is that rehire, did you have to let people go during closings. A little bit of both, obviously. At one point we furloughed as many as 70 of our staff was down in weekly comparisons, all the way back to the beginning of the pandemic thats been reduced to maybe anywhere from 40 to 60 off depending on the area of the country. As that continues to improve, a combination of people coming back off of furlough or new employees starting. Are you worried, john, at all about potential lawsuits, whether thats from your employees or from customers if cases do start to spike and linked to your restaurants i think that the Restaurant Industry has not just a habit or tradition but strong protocols for keeping the public safe. Remember, everything from e. Coli to employees that could be, would be, might be infected by coming to work sick, all those, it is normal to manage those sorts of things. If you look at the practice inside our brand and really throughout the Chain Industry in particular, you see the number of cases from very dangerous, very contagious diseases, very, very low in contraction from the Restaurant Industry. So from keeping employees and public safe to something thats part of what we do we understand cdc guidelines we understand how to implement those. I would say that that is the lower end of our concern right now. The higher end of the concern, of course, is the dining public that may not know how to social distance or be in an environment where they touch their face without sanitizing their hands and the like our masks and sanitation protocol, the ability to make the Solutions Available to all of our guest employees, single use menus, qr codes for downloading menus, we believe those go a great distance to keep the public safe i would dare say oftentimes may be a safe environment, some other options the guests may have but it is a legitimate question in light of the times. Yeah, john, just to shift gears a little bit, the other story weve been following has been this facebook ad boycott. Youve joined it starting today at dennys i wonder how you gauged that business decision or made that business decision given the fact it is such a big platform, there is so many eyeballs, so targeted in terms of who is going to see ads like a dennys ad. Sure. How do you think about that risk i guess if youre not advertising there, are there other options . I think the way we look at it is, its very difficult not to take a position. Its important for us not to disparage any company who is otherwise noble and has good intentions and is working in the process of cleaning up policies. There are times when it does feel like those are a bit slow compared to other players in the market that provide similar advertising platforms. We felt like it was important to take a position against state. Its not to divide or disparage companies but the idea is to bring your influence to bring people together for the common good, good practices, so everybody in the marketplace can experience the welcome we provide in our organization. We strive to be a model company. Part of that is taking public positions from time to time. But we do want to see people come together to reconcile differences, to live in a world where there is a lot more harmony and support and respect for one another we think is part of that journey and process which is why we engaged. Joe miller, thanks for joining us. Thanks for having me. Its the trump slump and biden bump, a shift in key battleground states. Well break down closing numbers when closing bell returns. As , 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. A new survey from cnbc and change research finding a slump in support for President Trump in key battleground states kayla has more the erosion in support for President Trump comes as covid19 cases across the southern u. S. Have been surging according to the latest cnbc change Research Survey which has been conducted every two weeks since march. Across these six critical swing states that will be key in deciding the election, the support for President Trump has continued to decline in arizona which is the state which has seen the countrys highest spike in covid19 cases, bynow leads the president by seven points. That is among the higher surges in the Battle Ground states. In just the last two weeks the portion of voters seriously concerned by covid jumped 12 percentage points. It is now the most important issue just behind the economy. Voters currently do not find President Trumps messaging reassuring 53 doubt the accuracy of the president s information on covid19 theyre also questioning his decision to restart large format rallies. His campaign signature 58 of respondents say he is putting lives at risk. In an interview on television earlier today the president said at some point the coronavirus will just disappear and said that he remains committed to supporting the economy until then back to you. Kayla, thank you very much for that on a programming note, dont miss my exclusive interview with the Vice President mike pence tomorrow 9 30 a. M. On squawk on the street. Up next, pinterest gets a pop. [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Woi felt completely helpless. Hed than online. Ading. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Shares of pinterest getting a boost today after facebook pulled the pluck on rifle platform hobby julia is here with more. Pinterest shares surging 5 today. Now about 25 year to date todays move comes after facebook confirmed it plans to shut down hobbi, an app it was testing to help users track their hobbies and progress on various Home Projects or cooking. This is the latest example of facebook dropping a standalone app that copied another apps features such as its chatroom app rooms. Pinterest today is also gaining on Deutsche Bank with a buy rating raising its price target on the stock saying its seeing the company benefitting from multiple price cycles as well as the opportunity for shopping through the platform all of this comes as brands like facebook are looking to shift to reach consumers on other platforms. Some agencies have been telling me that pinterest could benefit from the facebook boycott. Pivoting to some final thoughts, clearly the jobs number will be front and Center Tomorrow i guess as was highlighted last month, much more important than it has been in prior years, adp showing that may was down as we already knew perhaps june just a little behind expectations. Thats going to be the calculus going into tomorrow of course its an unusual situation because its coming on a thursday meaning it will also come across with the weekly jobs data i think theres a case that the weekly numbers might be more important. Its freshing data a iner data. From high levels, i think one thing last months report showed is that people have very low dm confidence in their ability to handicap what the numbers are going to look like after this massively stressed job market is springing back to life. Yeah. Of course you had all of the misclassification back and forth as well. Its not just the initial jobless claims its also the continuing jobless claims and how that sets us up in terms of rehires back into the companies. In addition to that, the holiday shortened week, what are you watching in terms of this push pull in the market between that reopening trade and that safe haven play weve seen i mean, combine all that stuff with the fact that there tends to be a little modest upside bias on the days before fourth of july weekend when it falls this way watching the treasury yields in general to see if they react in a way thats outside the recent bounds of their range to whatever we get out of the job market finally there might be a chance to kind of push the wheels one way or the other that would be decisive. The nasdaq closing at a record high whereas the dow slightly declined, putting the dow down 10 for the year. Fast money starts right now. Live from cnbc Global Headquarters this is fast money. I am dominick chu in for melissa lee. We have guy adami, Steve Seymour and Karen Finerman joining us. Coming up on the show, new quarter, new strategy. What you should be doing with your money as we kick off the second half of 2020. Plus, tesla zooming to a new all time high, but has this stock come too far too fast . Later on, beyond meat sizzling on some very big news out of china. Well bring you all the juic