The dow is at 25,600 is the low for the weekt. Joining us this morning to talk about that is a u. S. Equity executive strategy director. And i think maybe the first time we had you on our air, welcome thank you, it is good to be on and i appreciate the time this morning we love getting the insight nanny general your Research Notes have been really clear in spelling out a narrative on the kbas baskets that work for stocks i argue it is a relatively bullish tone, but how would you put it i think the way were looking at this is were ultimately confident that you have a v sharped recovery and ultimately you have a strong fiscal stimulus to provide an effective bridge to 2021 now mic and my team have also been positive on the operating leverage story particularly as were seeing increased prevalence of companies having to do more with less just like coming out of any other resection, that generates operating leverage and i think that is actually this emerging theme for life after covid and it was one of the things that we want today discussion on how longer term shoes sorts of chiepgs and that productivity story Going Forward and many of the changes that were seeing now could be a positive story Going Forward. I think we have graphics of some of the themes youre talking about. The shift in the cloud has been well documented. Let me ask you today is the day were getting a number of bits of news on the layoff front from Companies Like you United Airlines is it your opinion that as tough as that is the market should not take it ber iarishly. It is the that youre going to see a return to Earnings Growth next year we know were in the middle of a recession, but it is a normalization of changing in Consumption Patterns and a strong package in a is porting the consumer Balance Sheet on the other side as you maybe would have in prior recessions job loss is a normal part of a recession, ultimately what that does is set you up on the other side of the companies for more stream lined call strers in a it should generate stronger returns in the earnings picture. Adam, i want to bring this into today specifically as well. The dow right now down just about 500 points led lower by the bigger close about 9 on earnings a big part of that was u. K. , covid related. How many shouch we read into resu how much should we read into results like that. That is a good question and we know a lot about this already. There is a lot of changes going on around us we dont know where things settle out but we have been speaking about a situation to Consumption Patterns online. So we have seen e commerce demand i mean over the course of this year it has grown 37 in 2020. And now some of that is a pull forward of demand. We estimate about 30 years so what does that mean it means that were looking for this quarters resolve, but what the longer story may be and if companies can successfully transition to better use technology and that is a lot of what we have been writing about lately and the under pinnings of the longer term view in terms of that strength, but i think it is interesting that you point to other brants. Those that dont have a direct relationship with consumers. There is more struliggling, but how do big brands have to be to stand up to a company like amazon in this environment you have to have a name that the consume every knows. Nike is a great example. It is one that everybody knows, but i think there is a range of different sectors as well. Walmart is one that is standing up to places like car max, theyre rolling out their Online Platform this quarter. And the hope there is that technology, investment, automation, expenses, it is also creative margins the restaurant space is another area where were seeing a shift to digital there are leaders in Digital Adoption there like dominos and yum brands they like a lot does that benefit accrue to the restaurants or the delivery aggregators. Ultimately were strong, well positioned brands. And we think it is out there, it is more of the store baited cox fixed products what youre talking about here is an ongoing shift to digital adopt of new technology. So Consumer Behavior continuing to change and im wondering as you look to the future to a post covid world after things start to get a little more back to normal, are there certain trends that you think will reverse . I think that is true and i think that depends on the time frame that we talk about getting back to normal right now we estimate that 50 of the u. S. Workforce is working from hope. That number was close er to 15 precovid. I dont know where that number will be, but what we had is a radical experiment in the last six months that shows it works so i think trends like increased demand for connectivity are here to stay. People have spent more time in the home and said maybe it is time to spend more money here. Maybe if they leave the home more some of that spending will shift back to apparel. We dont know the answer quite yet and i think those are just two pockets of a consumer economy, but not all of the way back to aprecovid normal. When it comes to the u. S. Versus europe, we had some colleges say they favor europe, and they also lately the notes have been having a creeping narrative for fiscal stimulus at home i think were in a few that there is a broader based recovery, right . Were positive on the u. S. , the idea that you have a dynamic economy, were also positive on europe and having greater live raj f leverage, and a refund for demand i dont know if it can be either in the context of a broader economic recovery story. That is a great way to start the hour our best to mike and please come back great to have you. Thank you for having me on. Still to come, is tiktok a threat to National Security . Robert herjavec will weigh in on the potential ban. Stay with us when you say what youre in the mood for, the xfinity voiceremote will find exactly that. Happy stuff. If the groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Circle of trust, greg. Relax the needles are jumping. You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say . To find more of what you love with the xfinity voice remote. Welcome back we are being joined now by sean john you mentioned jesuss parable of the lost sheep leaving the 99 to go after the one the support for essential worke workers. The reason i think it applies to dollars and sense is the thought of compassion. Appreciating that our fortunes are tied together. I think there is sometimes a perception that if were focused on the needs of people outside of our immediate community, outside of our immediate circle of influence the reality is if you look at the potential in our communities it is under chapped. That is one of the reasons for the focus and the encouragement. You mentioned the but today the markets have been dooring at a time when the experience of the people on mainstreet have been very different. There is a disconnect between what investors are experiencing and what people in the real economy is experiencing. One of the way it addresses it is a very simple term which is reflecting. One of the reasons we have a disconnect is so many of the people that we think about across society dont have true ownership equity we think about living in a wonderful land of opportunity. One of the realities is access to that opportunity is not equitable. Both of those that are disadvantaged or most impacted by this but also for the growth of the overall economy we have to make access to opportunity more equal and most importantly we have to move from a simple focus on charity, focus on charity many times when you have not put in place equity, to focus on equity. For me that means the focus on black communities, investing in those communities. To create the kind of equity that lists not only those communities but our economy and our communities as a whole im wondering if you can give me a sense of leaders right now that can do an exemplary job of this practices that you see being adopted that you think others should adopt one of the things i point to is more so a group of leaders, if you think back in 2019 there was a lot of conversation about the purpose of the company a lot of esteemed leaders redefine that. Moving on shareholder returns to thinking about all of the different stakeholders and how we ethically do business in our communities. I think of that as being very positive and then you can look at specific instances of that playing out. This pandemic being presented to us makes an opportunity to make, in a sense, the promise of what we say is found to focus on responsibility very much needed here, i would say. Are you thrown for a loop by the swings in the market the income these days that is not paying much, wondering where to find stability and a different opportunity in the markets. You have to think about investing over the longer term one if we look at the equity markets, they have certainly recovered well, but you continue to see a good deal of volatility that tells us about the behaviors of investors im paying attention to what is going on in the fixed income markets. In the most recent weeks stubbornly low interest rates. That tells you something about investors that look at macro issues i think the reality for long term investors is you want to be invested in the long haul. In recent weeks we have taken some of our risk exposure off of the table so were more neutral so that gives you a clear sense of how were seeing the immediate market environment including where valuations are at this particular point is that more of a call where valuations are right now and perhaps youre expecting an opportunity to get back more into equities . Or is that Something Else . Are you looking at putting that capital into emerging markets . Or some other area you want to stay away from we say it is important in all environments for investors to be compensated appropriately for the risk they take in portfolios were looking at lower volatility stocks and Higher Quality stocks. That is reflected in what we think is the risk and return in the environment. All right some valuable insight. Down about 2 . The s p down about o1. 66. You have to go back to last week the s p ldhoing, were back in just a moment. My name is christine payne, im an associate here at amazon. Step onto the blue line, sir. This device is giving us an Accurate Temperature check. Youre good to go. I have to take care of my coworkers. Thats how i am. I have a son, and he said, one day im gonna be like you, im gonna help people. Youre good to go, maam. I hope so. This is my passion. If i can take of everyone who is sick out there, i would do it in a heartbeat. If i can take of everyone who is sick out there, music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Anchoring a prime time show at 7 00 p. M. Eastern, he joined us to talk about that move we as journalist are so lucky to have the only job specified when were humans we will get it wrong and correct it i can promise you that our job and our goal and our Mission Every day is to find the truth and tell the truth without fear or favor if were making people upset by telling the truth, thats it shepherd prioritized empirical facts, something he made his name on over the fox and in addition to that, it is hard to imagine anyone on the air right now that is as good as breaking news which is one of his major responsibilities you can give him a run for his money, but he is one of the best we were talking about data and the facts. Normally at cnbc that is focused on markets and company performance. He is keeping it cool. It is so important to us to focus on the numbers he is shading things in she presenting the data and combining it is clear about what we know and what we dont know. It is a great point there the fact that he made the decision that it would be about news and facts and not about opinion, because that prime time line up is very crowded with other shows very heavily opinion based. I think this will really stand out. I think you look at the fact that business is at the center of so many general news stories right now and it will be really, really fascinating, carl yeah, you know what opinions are like, everyone has one we will not be trafficking in that in the 7 00 p. M. Hour seema mody has the story and they are reversing early gains. It is not a fraction of the day. Reporting better than expected Second Quarter results thanks to a rebound and europes most valuab valuable tech company. Adding to the guidance that stock is up about 4. 5 per day. Next week earnings in europe kick off in earnest. A more than 50 drop in profits. The First Edition since 2015 that would push the total number of countries in the euro zone to 21 it finance ministers are set to make a decision on this by the end of next week thank you we continue to watch as well the u. S. Markets and major averages. The s p down 1 and two thirds. The s p down about a percent walgreens boost after leading the dow lower. Well be right back. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Welcome wac, confirmed covid19 cases around the world have gone above 12 million, a kwu quarter of those are in the u. S. Cases fell just slightly on wednesday, but new infections were still close to the record set on tuesday you can go to cnbc. Com to see how new u. S. Cases outnumber those in all of asia Wisconsins Supreme Court has uphead the lame duck laws. Another ruling on the governors veto powers is expected to be ruled on tomorrow. A lake has been closed as search crews look for glee actress naya rivera. You are up to date, that is the news update this hour. Carl, i will send it back to you. As we said a tough start for stocks this morning. What is happening is the reopening story is being called into question, frankly how well the reopening is going. This is the primary move of the market it is looking like a w and a v we taken about this. Stocks have been acting materially, they had a very modest rally at the end of may and they have fallen back. Energy is the same situation, theyre falling back, industrials not doing well today. And there is tech, which is still out performing but still down today that has been the Thing Holding up the markets this is the weakness and it is telling you that the reopening story is going smoothly here these are names that we look at every day here, live nation, carnival you see the weakness in those. Mega cap stocks are on the up side the stocks have held up remarkably well and been the heart of the rally recently. We talked this morning about the big dispersion this is just since june 1st. Tech is up 10 but industrials are flat, banks are terrible, energy not there, but energy is down 7 . This is an unusually wide dispersion for essentially six weeks of performance that were talking about. You look at the tech sectors and you can see what the market is telling you will be the winners here the market leads technology and other groups internet software, cloud computing, remarkably all the same theyre buying the same things because the market believes these are the winners in the stay at home technology. These will continue to do well like industrials, energy, like material stocks, are not going to be. Who is winning and clolosing in this race here the winners are tech losers are small caps, and if you look at the s p, you see that is a clear w, not a v, and that is the market debating a reopening story. Back to you guys im curious on banks, they will launch earnings season next week and we will way loan loss provi provisions, but are you expecting clarity . More than 40 has provided no guidance at all. Here is the problem with the banks. There is only four or five of them, we know who they are beyond that there are fast joups of mid cap to slightly larger cap regional banks they have been acting terribly they have business lending, consumer lending, and Wealth Management operations. Wealth management is doing okay but that consumer business, particularly the Business Loan business has been really very difficult recently and what i expect to hear is comments from them about how that business is doing, not a lot in the way of numerical guidance and that is a problem for the markets. Bob, thank you. I will note the dow is now down 464 points off of the lows, but not far, thank you meanwhile, u. S. Secretary of state mike pompeo saying the u. S. Is looking at banning tiktok and other chinese as over security concerns. Robert herjavec is joining us with more on that, why doesnt the u. S. Just develop a data policy for how Companies Based in other countries need to treat data, i mean today it is a china issue. Tomorrow it could be a vietnam or venezuela issue i think that is probably not a fair statement i think the u. S. Has come a long way. Look at the privacy data laws we have in california theyre similar to what the uk has, a gdpr. I am talking about consumer data for Companies Based outside of the u. S. Which seems to be the issue here with tiktok why not have a policy that covers all such companies if theyre based in china or anywhere else. I think the challenge is that Companies Based outside of the u. S. Dont play by the same rules. I think a lot of people in the Security Community have a lot of concerns with their companies. The fundamental difference, for china and europe, for example, is in china you have to provide your crytography keys to things like this to the government. The government tried to get access to an iphone and they could not do it. They could not break in, apple would not give them the code, on and on and on. In china if you have an app in china you have to provide that to the government. I think what people often forget is china is a communist country dressed in the trappings of capitalism it is that simple. People are legitimately concerned what theyre going to do with that information now, do i think that the Chinese Government is going to create all kinds of special databases to track people on tiktok and watch their dance moves . No i dont. But the possibility is definitely there and i think that when applications come from countries like china they have to be held to a higher standard. That is my concern. It sounds like what bytedance might do is spin off tiktok, maybe base it in the u. S im not sure that solves the underlying problem from a security perspective you want the data to be secure to give consumers and the government assurances about how it will be moved and trafficked. If it is based in china or not to me being just china doesnt solve the issue. I think tiktok, if it spins out or not welcome it , it is bn china. Consumers want to talk about security as long as it doesnt cause any convenience. Cheap is hard to beat and fun is hard to beat tiktok is a worldwide phenomenon if it is secure or insecurity in what the government thinks about it, consumers are adopting it. That doesnt mean that governments should be adopting it my issue is im not sure i care as much if my neighbors are doing dances on tiktok i care if state and local governments use that application. Im a security guy and i care more than the average consumer robert, it seems like its not about video dance moves but the other data that could be collected, information about your phone, other things youre doing on your phone, that seems like the real risk tikt tiktok says theyre a u. S. Based company, if they take dramatic steps, do you think they can address the concerns and become an independent u. S. Based social network . I think they have a long way to go. I think it is a great move for them it is all window dressing. It is a fun happen, there is a security difference. Request quick question on real estate andurban areas the information is no good is that trend, that flight from cities, surprising you that is an interesting point. I was talking to my friend barbara from shark tank, and she was echoing that this is one of the greatest moves to the suburbs from urban areas since the 50s or the 60s i recently moved out of los angeles. I think this is a trend for awhile and i think urban real estate is going to hurt for a little kbit. Hopefully far different reason than the flight you saw earlier. Thank you, robert. Thank you, guys coming up, dont miss an exclusive with david ricks were getting testimony today from the likes of major pharma today. We have been tracking an Unemployment Rate that is higher than it is for men we have important work to do and we know. We know that working women will have a harder time getting back to the workplace they dont to cite childcare as a reason theyre not able to work so for them reopening the schools will be very important that was you gene kaly yus 22. 1 are unemployed that is a full percentage point more and the biggest set back could be felt by black or africanamerican women the rate of unemployment for black and africanamerican women is the highest theyre already struggling with a larger paycap earning 62 sends compared to wiet women that eastern 72 secents on that dollr theyre spending 15 more hours weekly according to bcz and women are twice as likely to be responsible for home schooling there could be real long term damage if officers open before child care and schools fully restart. So carl and john, this could really leads to growing Pay Attention promotion gaps for many years to come it is a catch 22. Schools reopen and that allows people to go back to work. There is talk of schools reopening and the workers in schools are women and are in populations that have proven to be part of it. So do you end up in the name of getting kids out of the home, women back to work also exposing vulnerable populations it is a difficult problem that hopefully the authorities are able to figure out through a combination of health moves and policy smarts . It seems like the issues are so intertwined you caulk talk about it but you have to weigh the health risks i know were seeing such a spike in cases right now that is really concerning. Yeah, it is a reminder of the tragedy of the pandemic and a reminder of the progress that we had been making prior to the onset of this disease. But it is just setting us back so much and well see well see if they revise they basically said that were not getting clarity for how to do this on the fall that is the same thing that im hearing and seeing meanwhile coming up, color of change president Rashad Robinson is back with us on what he says is a disappointing meeting with facebook executives discussing that social networks civil rights policies. Well ta autt,ex sy lkbo i nt,ta with us. There is not a lot working among the dow 30 walgrens our next guest is a Civil Rights Group meeting with facebook hes saying it was a disappointment joining us now, color of change president and executive director Rashad Robinson. So much has changed since you were on our air over a month ago. Specifically, not only have you gotten nearly a thousands advertisers to back your boycott of facebook but facebook just released its civil rights audit which many would say was very disappoi disappointing. Where do you see facebook taking action we have seen some minor steps. We have seen them announce a new Vice President of civil rights which is something that is similar to what we have been demanding. We have been pushing for something in the c suite it does have the potential to have some long term infrastructure as far as the other demands, we continue to get facebook pushing us on this idea they are working so hard. They are fixing these problems they are doing much better than the other social media platforms. Only to sort of see the results not actually pan out the fact that, as you said, about a thousands corporations have stood with this boycott many brands that no one could call social justice warriors every one recognizes the threat that facebook provides if they are not reined in. Corporations dont want their ads and brands showing up to White Nationalist content and hear Mark Zuckerberg talk about how hes not going to be held accountable or make any changes. We are going to continue to push Mark Zuckerberg has to testify july 27th in front of congress on antitrust. Theres going to be ongoing pushing and engagement the demands from the Civil Rights Community are out there now their own internal report, the audit, lists a whole set of things that they should be doing and the question will be, are they going to do that. Thats the question, they have said multiple times they do not want to fold to advertiser pressure do you think this audit was something they commissioned themselves, do you think that is likely to lead to change or pressure on the antitrust front . The fact i was meeting with this is the result of the advertiser boycott they asked for that meeting. We cant ask for that from them. We were going spoo thinto that with a real indication there would be no addition of a high civil rights person on the staffing only for them to tell us that was one of the things they were going to do. Sort of trying to do some things around the edges they are having to deal with some level of pressure everything we know is that staff is speaking out. The people on a the outside, consumers are speaking out at some point, the government is also going to have to lean in. Facebook likes to have global policies it operates in some countries where protest speech might be judged objectional by the governments of those countries have you thought about how facebook and maybe other social media platforms should thread that needle . Yeah. We have a coalition called change the terms which is thought about this a lot we have been in deep conversation with folks around the world. Facebook doesnt have a wall between their government and policy relations their global relations with government around the world and the u. S. And the sort of decisions that are made about objectional content especially when it involves political leaders. Thats what happens when donald trump puts that looters and shooters post up in relationship to the protest and the uprising after george floyd a post that does violate the four corners of the policies he picks Mark Zuckerberg picks up the phone and calls donald trump and tells him hes maybe crossing the line. Hes maybe in violation but never pulls down the post. Its the way that maybe if youre a father is the police chief. He calls you and tells you to not do something that youre doing or skirt something under the rug when the kid down the street ends up going to jail for the same thing part of the problem is that facebooks incentive structures are flawed at tend of the day, the people in charge of moderating this content are in charge of maintaining relationship with them and that means it cant be the type of platform that rises up voices and allows for all of us to be heard the removal of these pages associated with roger stone, with brazil, when do those stop being things at the edge and start being actual positive changes from your point of view . Total positive change this is about getting a policy in place that my nonprofit are not having to sit around and point out thinks fgs for years d decide it violates their policy. It was nothing new on roger stones page that should have forced people down that wasnt there years ago. This is the reason why this is around the edges is because this is not enforcement related to a policy this is enforcement related to pressure we actually need policies and rules of the road that are scaleable over the time so it doesnt rely on organizations like mine to be pressuring facebook theres so many sort of Racial Justice issues i can be dealing with every day i want facebook to have rules of the road we are out of time. We open you will come back to talk to us this will be a hot button to watch ahead of the election. Thank you for joining us thanks. Its been kwietsquite a morn news the dow is down 400 plus. Lets get to headquarters. Melissa lee with the half. Welcome. Im in today for scott wapner. Stocks are dropping. Now negative for the week. The nasdaq lower after hitting a new record high. Well debate the markets and your money with our investment committee. We got to go straight to these markets. We have tremendous weakness in banks as well as energy. The cyclical trades are not doing well the reopening trade