Alley were seeing more push and pull this morning in this case the dow and the s p are green. Were getting decent bounces in names related to travel. Of course the covid cases out of florida at 11,000 plus is not good, but it has been off set by the data out of gilead lets talk about where were going in the coming weeks. You have been riding names like facebook and alphabet and is any of that betting tired the nasdaq 100 has bet the s p for ten straight months. At this point i think the s p this year is down 1 and the value index was down we started our careers at the same time. We saw the tech bubble we saw how bifurcated it can get. We saw how they still have value. Other companies doing exceptionally well it is not available compared to what we see in other sectors what is an example of that . Lets take leer if your family owned the business, you would say we made a billion and a half dollars a couple years ago and a few years from now we will again, but the market is offering to buy that company right now for 8 billion. You would not sell for similar 8 billion with that type of cash throw potential, but that is what the market is currently aur offering it for. Same with big bangs. Bank of america has more capital today than it did in the financial crisis trading for a single digit multiple earnings those are pretty cool values good morning, it is john fort im looking at as you mentioned the nasdaq 100 and how tech stocks in general have out performed, is there a real core nuf justification for this maybe there has been limited downside to not being really aggressive in Technology Adoption yes there is an advantage to being aggressive if you have the right strategy you can sell online, et cetera some companies manage, they were on amazons cross hairs, they survive, but now there is a downside you have to do this to survive, is that an argument for why technology is out performing and might continue to . I mean there is a couple arguments. That is clearly a good one we value growth. Growth is an important component to what a company is worth the nasdaq 100 is trading at 31 times forward earnings and the components to it dont make mathematical sense but youre right they there is certainly a tail wind towards them that the market is aware of another aspect is theyre producing more certain results right now than cyclical businesses in a pandemic you know i came here today with my oakmark mask. Im not wearing it, but you know it is really an environment right now that the market wants to reward certainty. You look at netflix or am zon and you feel like theyre going to learn we feel like things will come back to normal in three to five years and youre seeing some of the best values there in the market right now would you say on the flip side, and maybe i will pick on bed, bath, and beyond a little bit, but businesses that have not been aggressive enough in this area, and you could argue dont have the resources to get aggressive all of a sudden is there a similar downside to those that investors should be paying attention to . Absolutely, they you definitely dont want to pay too high of a price for a business that will not exist in three to five years we value growth but we will factor the potential for our business to have secular change impacted into our valuations a lot of brick and mortal retailers which we dont own look like theyre more or less permanently impaired i want to dig in a little on facebook shares are up about 18 year to said and now there is a boycott of nearly 1,000 advertisers. The results of that civil rights audit that many would say were pretty devastating a lot of questions about what they will do to assauaguage the concerns of the investors. Facebook has an inincredible messaging app. Whats app has four times the users than they had before youre buying facebook today for less than a market multiple. So you say okay, how bad will it be in terms of the eadvertiser boycott. There could be increased regulation if you look at it as an entity and the assets that you present, and how can they monetize it in advertising and subscription and some sort of e commerce, that is a pretty good multiple to pay for an asset like that and finally looking at some of the things that you have let go of in part, master card and hilton sort of remind me of what air bnb said i hate to draw large conclusions from individual trades, but what do you make of that . So we still hilton. Master card we sold. It reached a price that in a con sen tralted portfolio it did not warrant inclusion. If you put someone into a time machine in 2024, i think they would say people are not shaking hands a lot and the president is sure old, but i think youre going to say things are pretty normal some of these travel names like booking and hilton we think are pretty attractive here that is really great and really specific advice that is great, thank you were getting a market flash on cruise stocks kacarnival is up about 8. 5 . Theyre looking at different ways to manage the flow on its ships to make sure they dont have a congregation of people to compromise social distancing requirement. He said it can be cash flow break even at an occupancy of 30 to 50 this would depend on the ticket price that people pay, but this is the first indication of how ruiz lines are thinking about addressing capacity. And theyre talking about covid for isolating passengers and he says theyre going to start with lower occupancy and then ramp up theyre also expected to resume sailing in germany and europe and you disney world reopening in florida. Well discuss thchlees ae alngnd the opportunities. Were back in two. Dear fellow Business Leaders and technologists, i see all the Amazing Things you have been doing. You are transforming Business Models, and virtualizing workforces overnight. Because so much of that relies on financing, we have committed two billion dollars to relieve the pressure on your business. As you adapt and transform, were here with the people, financing, and technology, ready to help. Save without even wereleaving your house. Le, financing, and technology, just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Disney is reopening in florida tomorrow as they report 11,000 new covid cases today yesterday they started to reopen Downtown Disney with masks and social distancing, of course this is an important moment for disneys parks division. They estimate that disney lost more than one billion between april and june it comes as their shares are at a cross roads. They are two week high and 52 week low the stock down about 18 in the last year. And the we heard absent of a vaccine the most important thing is to focus on safety and making sure that asen dance continues to climb higher. They wont say how much theyre limiting capacity but at disney shanghai it started at 20 capacity so were waiting to see how the weekend goes i have been watching the sneak peek, some of the theme park press, and it is clear that capacity is really constrained theyre shots of main street, i know you know the Magic Kingdom pretty well. They are limiting the number of people i read that 4,000 sanitizing stations which is harge to imagine, but you can imagine them making that work. Absolutely, people are taking temperatures, they will have hand washing stations, sanitizingati sanitizing stations. It will look different and feel different. I wonder what you think. Can you imagine bringing your family to a park any time soon i can, julia, because places like disney and there are very few places, theyre so highly controlled, this really needs to go right were going to watch this closely. Disney is also saying that masks are required in all public areas for everyone age 2 and up. How strict will they be with that this is not, you know, your neighborhood corner. Youre not arguing hey, its a free country, liberties, ill do what i want. This is disney land. This is disney world you do what they say i think they will be strict they will be very district. Its all about disney in there, put your house ears on hows ears and mask im sure selling a lot of masks. I know my kids wants to order some disney branded masks as well yes, and that is how we continue a number of new coronavirus cases. More people are turning to telemedicine in this age of social distancing. Good to see you again. Good morning. You have very interesting and broad data on who is calling in and what theyre calling in about. What have you seen in areas outside of the beginning of the first wave hot spots we have seen areas where are the cases spiking now and how is that translating into calls. The biggest increases we have seen come from florida, texas, and arizona. We still see broad engagement across a number of conditions beyond just covid19 at the peek it was around 20 . It has since subsided down and it has crept back up are you able to, on a macroscale, track things like are the ages of people calling in about covid19 getting younger . Are doctors recommending that you need to go in and be hospitalized more or less often than they were earlier in the pandemic were seeing more normalization, but we also brought on 35 Million Medicare and part b recipients. That lifted the average age up now they can use or service for a very small ko pacopay. We are seeing an incident of younger patients in the last couple months. Tell me a little about how youre integrating with the lab tests. There is a question of how do you actually get the results how are you seeing the deployment of the tests and how are your patients dealing with figuring out whether or not they need an actual test . We built a number of tools on our site we were the first to launch a Free Health Assessment and we have spoken about that brokely 30 times they can see if they need a test or to come home. If they see a doctor and a doctor believes they need to take a test, we hand them over to our care team and our care team works with this patient to identify their geographies, what their Health Insurance benefits looks like, and direct them to a local testing facility or a mail order testing service. We keep hearing that the lag of turning a test around, it is exacting some of the practices that professional sports teams have been trying to hold do you see that tightening up any time soon and what do you think is causing it . Well, i think we continue to under estimate the number of tests we need to manage this pandemic as we ramp up so has the viral spread, so were just seemingly playing catch up across all dimensions of of this. So the testing lags are concerning it is just two steps forward, one step back. There is a lot of controversy out there right now about the difference between testing and cases versus hospitalizations and depths i think hospitalizations are perhaps the most important number to track because we dont know the demographics of the people being tested, how high risk they are, and other factors that can make them money what do you think is the most important number they are looking at hospitalizations and deaths. Im not a doctor or a Public Health expert. I should not have called you dr. Ferguson then. As much as i would like the credit, i cannot hospitalizations is important. The over all case count Social Security a mix of all of them, and most importantly we need to make sure that if were communicating consistent messaging to all of our people in this country and Wearing Masks and practicing social distancing the death rates and the hospitalizations will flux wait. A lot of local determine determine krafices, but i would defer to what the single best metric would be. Im hearing a lot about the risks if i dont get them their routine doctors visits. What are you seeing in terms of the uptake of telehealth for other things other than covid and how do you think that will continue or change once were out of the crisis here and people can go back to their doctors in a more regular way . So were seeing a massive increase in Mental Health cases coming, julia. So these are people experiencing higher levels of stress and anxiety from the Economic Impacts of it and that is ranging from a 20yearolds to teenagers to seniors it is all over the board so we have were seeing a lot of that and were seeing a lot of standard chronic disease management cases people with diabetes needing to get lab tests. So it is across the board. When we come out of the pandemic, whatever that is, as we get a vaccine and people start to engage more i think we will have strong continued use of telemedicine because the experience is so much more convenient for the patient they can save a lot of time and money, and we will continue to see a lot of utilization and determine demographics so hhs and congress low pressure need to act to make these reimbursement and policy changing permanent, but there is a lot of support from the private industry and Public Health experts to make that happen all right, phil ferguson, thank you. Thank you when we come back why early facebook investor is telling joe biden not to lten isto what Silicon Valley says. Well be back in just a moment. The only way to build the economy is to create good jobs for black and brown chicagoans we need to create the kind of equity that lifts our community as a whole welcome back, everybody. Im sue herera here is your cnbc news update at this hour. Tropical storm fay has strengthenned. Sustained wined are nds are now0 Miles Per Hour landfall predicted in new jersey this afternoon the search for naya rivera is now a recovery mission. They believe she is dead and likely a victim of drowning. International condemnation is pouring in as turkeys president changes the status of istanbuls sofia from museum to mosque the u. S. Also criticized the move it was a christian cathedral for centuries. I will see you again in an hour. Squawk alley back after a quick break. 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. Our next guest is saying that Silicon Valley reflects many of the best aspects of Silicon Valley it is called dear joe biden dont listen to Silicon Valley. Happy friday, roger, good to see you. Happy friday. The point youre making is not just dont listen to Silicon Valley as an institution or to companies, but dont take advice from specific Leaders Within the valley what ill really suggesting here is that the country is going through a moment of self reflection the pandemic, the Economic Contraction that accompanied it, the murder of george floyd are all causediing the country to reconsider values. There are issues in our society that are structural. And Silicon Valley plays a huge role in many of those issues if you think about the issues of facial recognition and thousand is used to discriminate in policing and how Artificial Intelligence is being used in job applications, Mortgage Applications and policing with discrimination built in. And that idea, the idea that you dont have to be responsible for safety, that is really deeply baked into the Silicon Valley. Its nots because theyre bad people, and not because it didnt work in the past, its august technology is so powerful now that Anyone Running for officer is that Silicon Valley is so important to our growth and the countrys future it needs safety nets and it needs to have essentially guard rails to keep it from losing touch with the countrys highest priorities go ahead. It sounds like youre delineating between tech policy within an administration and the difference between that and using technology to be elected in the first place, is that right . That is, carl, that is a very important point. I very explicitly make the point in here that i think it is fantastic that so many people in Silicon Valley are engaging in politics, and there is so much good and it can be very good in the political prosesdcess i dont like that it is krused to suppress votes, but i like thousand is used to raise money and engagement and the nose that theyre helping leaders do that i think that is a good thing im talking about the technology and the policy that follows someone getting elected. Roger, it is john, good morning. Respect to you as always for your voice and your perspective. Im going to push back hard on you on this one. How can you say dont listen to Silicon Valley when you are Silicon Valley youre part of Silicon Valley, you call out reid hoffman and eric schmidt i get it, but reid hoffman has a very different business model. Papal also a different business model. He is on the board of microsoft that took a different tact, i think you could argue, from the likes of facebook, of google, even amazon, et cetera and then apple is part of silicon value lain it had a very different voice about encryption and the use of customer data, youre saying, really, arent you part of Silicon Valley, not all. I didnt write the headline, john the point that im making is, i believe that both eric schmidt and reid hoffman are brilliant people and incredibly successful and engage deeply in politics. And he has been a spokes man for blitzskin. Growing companies as fast as possible caring more about speed and scale than efficiency or any other value. That has been the secret to building enormous wealth for many, many people if is also producing Business Models that are predatory and very destructive. Reid was one of the First Investors in facebook. Deeply involved in those things, and Eric Greylock has funded many several companies i think Silicon Valley these days is like what the banks were in the financial crisis. People have a tendency to paint things with a broad brush and not see the nuance i talked to reid at some length about this but i want to make sure youre not painting yourself and other very experienced and thoughtful people in Silicon Valley with too broad of a brush here. I appreciate you drawing that distincti distinction. The two people that i recommended as alternatives are the scholars that are involved in writing orlando protocols for the internet one of the first women to start a company that went public a long time focus on Technology Strategy and political strategy. And these are people whose experience and incentives are different. Many people in Silicon Valley fit that including people of color like, you know, the people that run the Justice League at mit. They are great examples of people who really contribute to this that is really the philosophy that concerns me it is the culture that has lead to the massive Wealth Creation for the last 20 years. That was a great thing everybody should celebrate it but Going Forward if were going to have something reflective of the culture today, that recognizes the murder of george floyd is causing the country to reassess its approach to race and to reassess its approach to civil rights generally speaking, that that is a moment in time and the next administration should be amazingly productive and productive with Business Models that that are not destructive. That is my hope. The fact that were talking about it and debating is a good thing. I think is interesting for you to give spperspective to the Vice President and people outside of the business themselves you mentioned m. I. T. Looking at algorithms and how racism can be programmed in. But youre writing this letter to joe biden, what is your advice to him in terms of the most important regulatory change that you want to see him make or for him to push for . So julia there are, i think there are four categories to look at. First safety and i want to look at two things there. One i would really like to have something that looks like a food and drug administration. You have to demonstrate safety and freedom from bias. If you will it is not a tenyea approval process it is done with other things and then you have legal liability if you fall short i want to make a change to section 230 to remove the safe harbor if they treat some content definitely using algorithm amplification. I want to look at privacy, that is the second gathering doir, and i want to shift us away from the consumer being a victim and having all of burden if we cannot make it a human right i would at least like to make it so the companies have to come to consumers every time for their permission to use their data third is honesty the industry maintains total o pass pacity you cant see data that means that the numbers, the industry believes literally that 65 of the ads are never viewed and people pay for them. There is a real issue of the number of users, ad use, duration, and go to revenue. That is a securities and exchances commission this has been going on for decades. It is potentially very serious the last one is competition. I would like to see a return of the clayton act, the sherman act, and the Tech Industry is like chemicals were in the 50s they could pour waste products anywhere without a cost. And i think that the Tech Industry, if it operated with guard rails, they would continue to be the engine of growth in our economy but we would not have so many negative side educates with all of the things that are good. Finally, roger, when you look back at the week, i wonder what struck you most the week that facebook has had, or the speculation about a sub model on twitter or if tiktok should be bans this was almost an unprecedented bad week for facebook they have been able to get out of every issue that has come along with an apoll zi and a promise to do better the only time that wasnt true was cambridge analyanalytica. They showing that if stop pay for profit is not pushing hard enough i think their bad week comfortably takes the cake here. I think speculation on twitter is always important because twitters role in our political and cultural conversation is so important. I dont know what will happen there, i dont have a good view. Tictok are a football right now. I know that globalization is being unwound. That is not good for the economy or investors i think tick took ktok is a sig look for if we stop doing business with china how does that work the whole economy is linked to theirs one of the key questions of the year and probably the decade, roger. Well kick that around in the days to come have a great weekend you, too. Lets take a break and look at the biggest gainers on the slsdaq 100 for the week. Tea, netflix and more. Some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. To turning your new inspiration 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. Taking a look at shares of square and papal today they are pairing their gains, continuing that slide today. Square still on a tear for the year, though, it has doubled were going toake quk ta ic commercial break stay with us carl, we have talked with people familiar with discussions between American Airlines and boeing about delivery of 17737 Max Airplanes scheduled to be delivered by the end of this year the max has been grounded by the faa since march of last year but that is expected to change by early summer and fall that is when it is expected to be ungrounded which is allowing boeing to deliver the 17 maxes that have been built but not turned over. Fie nantsing for those planes for some of those planes has expired. And without vie fansing amerifiy we need financing before we take delivery this might get worked out that boeing and its Financing Division may have to buy them from the company and lease them to american or they will set up a Third Party Financing in some fashion. But the people i have talked with said american wants the planes, its not just going to pay the full payment there they dont have it set up, it was there before the covid19 grounding of airplanes and they want it to be reestablished. You make that point, not a question other over quality concern. They have championed the develop of the plane, right . Absolutely. They have 50 on order. 59 that are scheduled to be delivered next year. 40 by 2025 they want the max, and they have 24 of them theyre itching to see fixed and fly immediately in addition to these 17 but for these new aircraft im told they want financing lined up before they will take delivery all right, phil, ill watch that with your help. Travel related names are having a pretty good day and carnival up almost 9 later this afternoon an exclusive with Arnold Donald on closing bell. Were back in a moment polo marco. polo si . Marco. polo scusa . Marco. polo ma io sono marco polo, ma playing marco polo with marco polo . Surprising. Ragazzini, io sono marco polo. Si, sono qui whats not surprising . Geico helping you save even more on car and motorcycle insurance. Ahhh. Polo. Marco. polo now get an extra 15 credit when you switch before october 7th. Our next guest is the first black woman to cofound a Unicorn Company with start up zoom pizza which raised 375 million from softbank. To put that in context, black women draw just. 2 of Venture Capital funding annually joining us to talk about her next venture is julia collins. Now the ceo of Planet Forward. Thanks for joining us. Always have a pleasure to have another julia on the stohow. Thanks so much. Its great to be here. I want to hear about Planet Forward and your move into this food business. First, i want to talk about the work youre doing to fight racism and help Companies Fight racism i know youve been working with entrepreneurs, working with executive teams and you spoke to Stanford Business school about this how are you advising companies to build antiracism into their businesses fwl the p f the power the United States has in the world comes not just from our economic and military mite but we have built a democracy founded upon liberty, justice, freedom and equality. Its still very much just an idea i think thats what Many Americans are waking up to right now. Although its been the case for centuries, racism and White Supremacy are really threatening the fabric of our democracy and our legitimacy as a world super power. The structures are not just bad for black people like me, theyre bad for all americans who want to live in a free and equal society. The question is what are we going to do about it the work im doing with founders and organizations is to move from intent to action. I think its very interesting the way you took action and the way youre raising money for your new company your last company you raised money from softbank, this time you had a very different approach and raising a smaller ame amount of money from investor who are women and people of color. Tell us how that helps address the cycle a inestment and innovation in Silicon Valley the question is what power does each of us have to yield more equality. One of the things founders have power over is the way we capitalize our company if any job is to create a Successful Company and return value to my shareholders and why dont i make an attempt to create more equality amongst those shareholders thats the question i asked myself and thats why i committed to raising a seed round where women and people of color were highly represented on my cap table i was successful in doing that hi, good morning. Its john ford great to have you. As we are going through this period of civil unrest and asking a lot of questions, very often, i hear people conflating racism with capitalism suggesting they are necessarily joined as someone who has innovated, as you have, and built wealth in capitalist system. How would you frame this issue i understand the question and i fundamentally dont believe that justice, freedom and equality are at odds with capitalism those ideas are completely separate i think the question is how do we work within the frame work of capitalism to redistribute wealth and create better economic, social and Health Outcomes for folks that have been systemically left out of the picture. Thats really what were talking about when were talking about addressing Structural Racism when you say redistribute wealth do you mean redistribute wealth or opportunity is issue as i see it in capitalist, democratic system thats working well, everybody is view and as having Great Potential within the economy and their full potential ought to be realized the opportunity through education, through the right social foundations to be able to do that. Yes very much the case that in our country wealth is tied to opportunity. Theres a great myth we have been operating under which is the myth of scarcity more for someone else means less for me in fact, its just the opposite. When were talk about freedom, more freedom for another person creating more freedom for me and the same is true for equality. When im talking about radical wealth redistribution, some of the thing s im talking about is investing in founders, investing in black and nonwhite led organizations and putting our capital to work to support the kinds of organizations and structures that lead to more equality, not less i want to hear about your new company and why you decided to focus on this food space tell us a bit about the two Business Models that will be operating here it probably comes as no surprise to do you or the viewers that 23 of Greenhouse Gas emissions are coming from our food system. I will tell you theres no Silver Bullet for the Climate Crisis but addressing our food system is great place to start what were doing at Planet Forward is really tackling Climate Change by making it easier for anyone to bring a Climate Friendly food and beverage product to market when doing that through our own brands called moon shot snacks its Climate Friendly crackers were also building a Software Tool that allows brands to identify suppliers and ingredients based on a vieariety of sustainable criteria including measures of climate. Fascinating stuff an interesting time to be building out these businesses. Thank yous so much for joining us thank you guys, as youve been talking the president tweeting about schools but not necessarily Elementary School education. He writes too many universities and School Systems are about radical left indoctrination. Im telling the Treasury Department to reexamine their tax exempt status. Our children must be educated. We just talked to scott cohen this morning about how reopening in the fall clouds the picture for college bonds. The president is upping the ante using the power of federal funding to accomplish what are political goals. This, in context where the president has said that International Students will have to return home unless they are having inperson classes harvard and m. I. T. Joining in suing the government and this tweet trying to point out what he believes is a political direction from universities kind of makes Higher Education a target in general of the president , which is going to shift this political debate even beyond the financial implications julia, thanks to you. Get ready for next week as we get goldman, Morgan Stanley and a lot more lets get to the half. Thank you. Welcome to the Halftime Report im wilfred frost. Companies will start to report quarterly result next week and investors will be watching for clarity on the path forward. Well debate the markets and your money with the Investment Committee today. Lets check on the major averages before we begin the discussion stocks mixed but tech and discretionary hitting new record highs