Trading well above 400 a share so as the economy experiences all of these challenges, there is adobe there big tech marches on i continue to o lead the way. Now is the 1. 5 trillion krub now you have amazon, microsoft, and square has just been on a tear it is up another 8 today. It is not clear this would be a covid play that the Digital Payments would be such a run first the small and medium sized businesses that it served would be a laggered. That has also been a very good performer this year. A journal with a big piece just on basically about the price action alone joining us this morning is Angel InvestorJason Calicanis good to see you as always. Good to see you, hope youre safe lets get your temperature on valuation right now. I think were hanging in there valuation all of the things we just talked about for the past 90 seconds, how much of it is a topic of discussion in your circles, and how much of a concern is it in your circles. I think what were seeing is, and i had this discussion with a lot of people who are managing money and pools of capital if you look at commercial real estate it is coming from home. All of that money is now looking for a home then we look at Residential Real Estate no one wants to live in San Francisco, it is becoming a ghost town there is no one on the streets stores are closed, and giant pangss in paskt mights are empty. No one is buying residential realization. Then we look at travel, hotels, and Small Businesses like restaurants. All of the money that was put into those efforts is looking for a home so where is someone going to put their money . Theyre not keeping cash because theyre printing money like tissue paper right now money needs a home, it is looking to grow, not become devalued what is the safest bet google, netflix, square, theyre going to be here in ten years. It is a real world portfolio now we have another layer on top of that. We have not had Retail Investors since 1999 and 2000. We have a generation of people on their parents netflix, in their parents basements, and they found robinhood and we have ten Million People who are now interested so then, naturally, i would say is your next question is is this going to end in tears . My next question is commercial realization and urban economictivi activity will go dn until it stops going down. I dont believe it is going to i think were having such a Seismic Shift in peoples personal world views that it will be impossible for an employer to get people to come back to offices. And listen im an in the office guy. Were in the Office Getting stepped on working on the product. That has always been my position and i have lost the war. I cant tell people they have to come in to tahoe people will not spend 2,000 per square foot in manhattan when they can spend way less per acre this is a life time change theyre not coming back to the offices, carl. Jason, this is john good to see you, i mean facebook google, they spent all of this money for having open cafeterias, bringing in contractors making wonderful food that became soft part of the culture. Can they dismantle all of that you are such a prolific Angel Investor, but is there enough capital out there to keep these smaller operations going or will we see small er start ups shutting down. I will take the last one first. We invested in 75 companies. I invested in 250 start ups in the last 11 years. The first few you know, uber, robinho robinhood. That being said, he got it right. They saved a lot of jobs rove knew doubles and pripled in the pandemic small start ups are online if youre a restaurant you cannot make that shift they were a way to leuer employees to come work here and not on wall street to work here and not in hollywood or for, you know, god forbig a jobs are writing reports. Mission accomplished those are going to be deposition ri cased, put on ice, or theyre not going to grow them they will still have nothose campuses, but given how expensive things have gotten, feel are really smart and theyre realizing that people can do the work from home. I thought you cant make a office work unless they are full of workers you have to compete against other companies. Google is now looking at the world iing gosh ing world. Gosh, they are going to lose employees to someone like facebook that will become a risk for them and they will fold when they realize a top developer wants to live by a lake in a five acre five bedroom home unlike somewhere like San Francisco i just want to switch gears a little bit and talk about uber not too long ago they reiterated that the company is confident they can get to profitability in 2021, but they never seem to say how theyre going to get there ride sharing was going in that direction. But food delivery is deeply, deeply unprofitable. So just explain to to me, how do they get to that profit ability target when theyre doubling down on an unprofitable busin s business. Great question. We were in a dog fight, and im still a large uber shareholder it was not fun when it hit 15 per shaf youre trying to kill your competitors and youre trying to be one of the last one standings. We saw a sleeper acquisition postmates is loved by their user base and they have dna outside of food delivery other people who want to deliver stuff can build it into their stuff. We will see the race c consolidation occur. Tech value ratioations are up, businesses are so high, and other businesses are on the floor. The small stacks will be dominated and taken out. They be very profitable once eight or nine people are not doing the investing. Those will become profitable and if you look at the layoff thats occur, they say okay, lets get our staff size down without killing morale a lot of them hire like crazy. Theyre building for the future. Youre going to see the natural attrition and naturalization, and well be sitting here and this discussion of ride sharing cant be profitable. Food delivery cant be profitable, it will look like a really silly discussion. I want to shift gears yet get. Lets talk about the clubhouse battle that youre in. One side is saying its unbalanced, unfair i think the start up content ecosystem has just changed 15 years ago none of the investors cared there was paid content, there was gigacrunch. Now theyre investors. Right . So we moved into a different phase where the silicon valley, celebrating the starm up and the investor doesnt have oxygen any more now you need the New York Times to write about you, but theyre not doing it the same, isnt that the issue it is a multilevel issue. The Tech Community feels the New York Times only writes about negative things. There used to be a love, radical, positive. And then Mark Zuckerberg came, he did bad things, and the Companies Got so big they had influence. And when trump won, they blamed it on putin buying ads and the Tech Industry is sensitive. No one likes their press, but everybody wants more press i get it no press is perfect, and human beings that build companies are not perfect, but the amount of power that tech now has, sitting here talking about how were the trillion Dollar Companies and were eating up all of these Traditional Companies that dont know how to compete any more, they just look pathetic compared to the tech companys ability to innovate this is what i think is the core issue. Journalists were being har rased. I was being harassed lets take this offline and work out our issues, but we have journalists coming up that are not like you that are that believe in capitalism and diversity. They believe in social i did mock si and they believe that capitalism is a force that is bad for humanity and they will get a very rude awakening if they win. If you think it sucks to deal with the government for education or health care right now, wait until your social network, your expectation is provided by the government you do not want to watch the United States lose their dominant position in the world because there is someone right behind us who jails journalists and puts people in jail because of their religious beliefs and it is called china Young Millennials that believe me in socialism dont know it is the road to communism. I believe in universal health care, but this is out of the control. You said it yourself that as big tech becomes bigger, doesnt it make sense to hold these companies responsible . And i want to ask you because a bunch of ceos and founders took note of the findings do you wor rid about your role in this and the back and forth could hurt your ability to make investments . No, the people i invest in are capitalists. The others are soishlists. Im not worried about that at all. He saying that id believe in capitalism and democracy, not socialism is making me the most accountable. And i cant believe im sitting here depending capitalism. That is the point that we have gotten to. It is not, we have just gotten soft where for some bizarre reason we they capitalism is bad. Now there should be absolute scruti scrutiny comment on this terrible thing comment on this terrible thing when i come on cnbc, tell me about something new and excited, hey, there is problems at this company. Just look at 20 tech stories 18 or 19 will be the bad story in tech. Can you cover dotcom please cover blockable and theyre like i cant get that through my editor i have to write about how terrible this person is we are tired of it. Were getting follower count thats are greater than the journalists. That is the other under lying thing here the Tech Industry killed the news business. You look at google and facebook and what they did to ad revenue, and they peaked and then it went downhill we have to have a nuanced discussion about the importance of a free press, and maybe calm this beef down a little bit and im just asking for a little balance. If you want to beat us up, it only makes us better at what we do every time i come on the program, i get a massive amount of criticism i take it to heart and i try to make it better every time, but i would love it if the New York Times would cover one or two world positive companies i invest in. Two or three companies have stumbled and deserve criticism, what about the other 247, thats all im asking for some balance jay powell the way that Central Banks have im all for raising the minimum wage lets just not vilify the tech as the enemy thank you, we love having you kick off the hour. Appreciate it, stay af. When we come back, why our next guest says were at the y payoff pitch for retail. Will the sector walk or strike out. How the Trump Administration will factor in, next [narrator] at Southern New Hampshire university, were committed to making college more accessible by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. You say that customers maklets talk data. S. 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. Welcome back, our next guest says that trump has failed the street we have the ceo American Apparel and footwear you said the Trump Administration is close to striking out can you explain . Our first strike was awhile ago. That was late. Then we got hit with tariffs, and now were in a real problem when which is a liquidity crisis the ppe program was in a lot of respects, but they were looking after the employees which is just fine. But if this is no business to come back top, were liquidity right now. The retail store closed. That piled up inventory. You have to sell it at a discount that is actual liquidity then you look at what happened with the whole supply chain collapsing now the pipeline opens up again, but it is a new host of problems there is covid in a lot of countries that manufacture and that is a problem. Not being paid factories closed china is the only one that is really open and we go to china to buy goods for cash and what happens is were hit with tariffs. So you look at it from any point of view is we would like to secure some funding for liquidity what is the point of supporting the workers that have been fabulous if you dont have inventory to sell. So we end up in a situation that is a doppleganger. We save the workers but we lose the business i heard it being called accelerated darwinnism some of them were already well under way. You have also spoken about how some of retail will survive this, but what separates those going bankrupt and those that will spepierce persevere you see every week a new list of names that have been filed and you certainly know about jc penney and j. Crew you go down the aisle in the Shopping Mall and you see all of the names just disappears. There is darwinism thing retail was in trouble before, no question about it, the biggest problem we had was too much Square Footage compare that to china with 2. 8 it is way too much space now were down to about 1100 it will probably be below 1,000. And theyre anchored by big Name Department store thats are suffering right now. So yeah, darwinism at its best but lets say that retail had problems, covid accelerated those problems, and they can only get worse we cant fix a liquidity situation. Let me hit you with some good news if that is okay i follow the index very closely. If you look at it a year ago, if you look at it today, it is about the same that mean thats always believes well work it out. Unfortunately it will be more of a blood bath before it gets better and that will be the state of Affairs Going forward. Rick, i appreciate you trying to end on a positive note. Thank you for being with us this morning. It is a space we will keep an eye on sbrup bankruptcies are expected to accelerate after a year. After a rough first half. Rick, thank you very much. When we come back well talk about new highs today. Tesla, amazon, netflix and in brazil, the president says he fos tested positive r covid19 back in a moment the bank has invested significantly to improve their financial controls you can watch it later with christian seo. Lysol disinfectant cleaners are the first to cleelly claim they can kill covid19 and in london, johnny dept is claiming his exwife is making sick claims of abuse youre up to date, thats the news update this hour, ilsee l you in an hour, squawk alley you in an hour, squawk alley is up after a quick break. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Lets go back to todays action the s p just about flat and the down down fractionally guys, good morning good morning. You say you expect continued volatility for the rest of the year there is vaccine progress and election headlines, what do you think will drive that volatilit to the up or the downside the most i think economictivity will continue to be the big driver. There has been a big gap between the market and the economy you continue to see Economic News and surprise to the upside. Were starting to see it play through with the numbers that we saw last week. In a note last week you pointed out that we are seeing a surge in kfrs cases, but were not really seeing a surge in death rate hospitalizations are up, well see where that goes, how many is your focus on those metrics as you start to get a sense of what the activity in the markets might look like. If is a near it will not be as nasty as we thought a few years ago, but that feeds the Economic Data that feeds everything. So were waiting on that and i think the news, somehow, we seem to have gotten ahead of ourselves with the lockdowns unwinding in certain states, but the news with regard to things like mortality rates are positive we know there are lags, and the economics and strategy side are flying more blind than we like to the good news is we have the fed. Coming in with liquidity and aiding the markets on times when we freak out on the stresses associated with the virus. I think that has been the dominant factor for the markets hands down we talked a lot about what has been leading the come back and that is big tech does that continue in the second half, especially a lot yesterday we got a dates for the ceos to testify. What will that say about the market i think Big Technology will continue to lead, it provides the best growth and the best cash flow, but i do think that our managers are looking to find blast on their portfolio theyre focusing on being resilient that can outperform over a long period of time theyre not traders. Theyre balancing that out theyre investing in industrial materials, health care, and technology, and were seeing under rates. But i think it says there is a scarcity of growth and investors are looking for that growth and theyre looking to see where that growth can come from regardless of what happened over the next few months with the virus. David, what do you do with emerging markets when people are looking for portfolio balance, and what is the Lasting Impact of this pan determine take will be there and the strength of the dollar i had been reluctant to it seems our stream is reluctant to let you tell us you froze up for a moment there, are you back i think i am. Is it okay now yes we have seen dollar weakness, that is giving the markets the boost they need to get out of the difficulties they had. I still like the u. S. Equity market, the u. S. Story, and a lot of that goes back to my previous comments, i think we have a central bank that has done an amazing job on this one. So im sticking with the u. S. Equity over an emerging market at this point. Okay, well see how it goes david, ann, thank you. Thank you when we come back well talk about novavax. The company is getting 1. 6 nellion dollars to work on moy. The stock in january was at 103. Back in a minute this comes after receiving 1. 6 billion in federal funding for the Trump Administrations operation warp speed mega, it has been a week for funding. This 1. 6 billion that novavax is being rewarded is the biggest from operation warp speed. This will enable them to expedite the covid19 vaccine through late trialing. Including 30,000 patients if all goes well. They say it will also help them establish large scale manufacturing including the production of 100 million doses. But that is, of course, it all of the early stage trials go well they started those in may in australia. Here are the other awards that operation warp speed has made. The previous largest one was 1. 2 billion in may to astrazenica. Novavax has not yet brought something across the line. But theyre talking about how important safety is when theyre moving at such speeds. We want that to be the number one issue. This is a platform again that have been shown to be safe guys, though novavax has not brought a vaccine across the finish line, their approach has been proven in other vaccining vaccines including one in their pipeline that is what i was hoping you could clarify for us is it just a desire on the governments part to make sure that when someone succeeds they could be putting it out in value. You know, were still in the early days and we have not seen the early results of the vaccine. So that will be illuminating once we see those. It seems like an endorse mement this approach. So it may be a different way to do this. Thank you for breaking that down for us. Miamidade county is rolling back after a rurncesgee in covid cases. The path forward is up next, stay with us 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. Few stocks in tech are doing better than snap and square. Square is up nearly 8 well keep an eye on those and well be right back. Gettings some news out of walmart just moments ago eric has the details to us waum plalmart plans to launce Subscription Service called walmart plus it will cost 98 a year and have perks like same day delivery of groceries and general merchandise. Discounts on fuel and early access to product deals. Thats according to multiple sources saying its going to launch later this month but not clear if its on a regional level or national level. You can see the share spiking up walmart looks to be competing directly against amazon prime. Back to you. Eric, thanks for that i wonder, theres a bit of irony in the timing expected to launch later this month july is when amazons prime day takes place which is a blockbuster shopping holiday thats been delayed a few times this year. One of the biggest knocks against amazon prime or future growth is maybe were reaching a saturation point in the United States because its such a Strong Program i wonder if theres room for families and consumers to buy onto another kind of subscription, carl well see 98 that will be worth watching as amazon hit a new all time high miamidade county, as you probably know now, ordering gyms, restaurants and other Small Businesses to reclose effective tomorrow the owner of the miami based gym adapt joining us this morning. Thanks for the time. Its good to see you thanks for having me on i appreciate it. Talk to me, you been around for about five years how long had you been able to reopen before you got the notice yesterday . Well we were shut down on march 18th and we werent allowed to open till june 8th. Almost three full months before we were allowed to reopen and now were severing news about the possibility of closing again tomorrow one month later what was business like in that short tim that you were getting back to work what what has your reaction when you got notice from miamidade about this time yesterday . Obviously the news was very disheartening to have. We had a great first month back. We had an increase of over 50 new members who were very interested and happy to be in our facility knowing were one of the safest and cleanest ones around due to all of our work that we put in we also opened up a lot of summer camps yeah, that sort of leads to compliance with masks and all the things that were starting to hear at the local level from cities that maybe tried to resist that in the early days. If youre not, do you see that changing any time soon i really can only speak to the extent of our facilities and our compliance has been 100 , we were wear masks as required. Were very happy with any of the requirements mandate bid the county scott, i wonder how well set up you feel the local authorities are in the state for Contact Tracing . I understand you were having people in kind of appointment only in small groups did you have to do any Contact Tracing based on the information that you had gathered from any of your members contracting the virus and if you did, was that seamless luckily we havent had any issues with any members or employees contracting the virus. We havent had any issues dealing with contract tracing. The guideline that miamidade set out for us are pretty intensive. You can read about it and learn everything they did give us information i just have not had any issues here in our facility what do you want the government to do its a personal statement that i would be open and be able to operate thats because i know were falling all of our rules and regulations and its not going to be any issues here at our facility i understand that we run into it im wonder fg you aing if yoe your Business Model. Good morning, yes we did go virtual. We have continued and we have been contracted by Larger Companies to remain virtual and provide services for them. We remain virtual with them. Thats not a problem weve been able to adjust and adhere to whatever has been thrown at us and our model will adapt. No masks, no social distancing can you paint a picture of what its like to work out of the gym now. How much space does a person have versus the client next to them whats the interaction between the client and a trainer well, the rumor stated were supposed to be Wearing Masks any time we break a six foot rule. We were able to keep ten feet away its not a problem we have boks and xs marked out around the equipment we were giving as long as their being adhered to just another question on that virtual side that youve been developing whats that Business Model like . Is it sustainable . Is it profitable what does it mean for your business i guess its to be determined we were able to maintain many of the large portions of our revenue. I think thats something were going to have to get back to i think every one is on the same page were going to continue to exhaust all avenues for revenue streams. A lot of the gym owners that i know in new york state would love to open for the first time. Its been a real frustration as were trying to get our hands around the Health Policy scott, we hope youll check back with us. Thank you. Thank you for your time guys well watch the chop here which is notable. Back and forth between the red and green. Walmart, 123 on the news about an amazon prime competitor it will take you back to levels that we last saw in early june lets get to dom and the half. Thank you very much. Welcome to the Halftime Report front and center this hour the Technology Trade that part of the rally continues to fire on all cylinders well debate the market and your money with our investment committee. Today they are for the hour, stephanie, josh, jon and michael f farr well start with the tech titans were seeing new recor