At one point, they were convenience not absolute indicated up about 300 points on necessity as in the activity that positive news out of moderna. The s p is indicated up about 13 couldnt be performed, so even if youre working out of your points and the nasdaq would open home in new jersey, new jersey says wait a minute were not by about two points after a giving you a credit because you performed the work here. Strong dayyesterday. We get to tax you too. So both sets of taxes. All of those states are facing severe crunches at this point so i would imagine all of those states will be pretty aggressive about it. When you say you could do the work some where else, new york city was closed down, offices the nasdaq was up by 1 . Have been closed down. Employers didnt want people back in the building lets look at the treasury seems like a little extraordinary during these times. Do you think eventually what happens the states gettogether you will see the 10year now and work something out where somebody takes part it and sitting at 0. 62 somebody else takes the other part they havent yet. Thank you nice to see you back only six states have the hope you had a great time off. Convenience rule and you would think yes this is in the meantime, the dow clearly not convenient youre not working from home component down with united because you felt like it Health Adjusted earnings 7. 12 the way they have historically define convenience is the work could not be performed in this state. So if you work for your company beating estimates. The company attributing the but the midwestern sales person, you cant do that in new york youre selling in kansas temporary refer to the risk on the other hand if youre working out of connecticut or based businesses new jersey because you dont like the commute or easier for you or the company to be there, coming in below consensus. Thats convenience and theoretically in a crisis actually has been relatively you could have chosen to live in flat new york maybe year over year it has if you were working from home gained on todays squawk planner, a lot you could be in new york going on Goldman Sachs reporting in the it seems inequitable 7 00 hour. As you said right now with at 8 30, we get june import and revenues as they are none of these six states have indicated they are providing that flexibility. Releasing the beige book report jared, very practical question, i heard from lots of and it is tax day. People on wall street who are filing deadline was extended dealing with this very issue trying to figure out whether they should pay new york city because of the pandemic. Tax, whether they should pay be sure you get those in unless taxes either in the suburbs or in other states. You do them electronically one of the calculations that looking at United Health seems to be going into this care that is such a interesting debate is the cost of being audited. So when you add the full cost of reason why they see higher numbers on this. How youre going make these decisions and im not suggesting that people should be trying to scam the system, if you will, but there is the sort of risk we hadnt really thought about analysis to do i pay the city, that this is a little different do i pay the suburb, how do i do situation. They expect all of that health care will eventually get picked it can you walk through how you up and all of that stuff will think you would do it . Well eventually get there this is not asking for a i dont know why that had not friend, im asking for me. Occurred to me before. I happily pay new york city nobody was going to the doctor taxes as somebody who loves new for a long time. York city even though im not offices were shut and dnt there. Im in connecticut as well see anybody except for emergency well do both. Yeah. Im going to encourage everyone to pay in both jurisdictions and maybe this gets sorted out legally. Talk to your tax adviser i would encourage you not to try to test this however, i would say that new york is an anomaly where this often comes up purposes. You are right in addition to this rule new cars and things are not on the york is one of a handful states road there is not a catch up for of doing business in the state that we are all healthy and young. Literally for one day, even checking email in a hotel room i can think of a lot of things where you have to file in the you wouldnt want to take a state. You live and work in new jersey but go to new york for a day for threemonth break from caring a conference, theoretically you for. A lot of conditions. Have to file in new york on monday, my daughter had to new york doesnt want you to if youre a typical employee have surgery because of a tube its not time to process a being stuck. Return that has no liability one that hasnt come out interest not absolutely urgent care but you get this all the time. Thats a bad design in tax it was bleeding out of the ear codes. You dont want something where 90 of people are not complying. It had to get taken care of. New york has created that just so they can go after the high mammograms and a million income people. The person who makes a ton of things one of the arguments you hear a income in one day thats not good tax policy. A lot of states have a 30 day threshold or something more lot there are other health reasonable new york has always been the concerns being neglected most aggressive state in the country on taxing income from people who work or live in new york right jared, i get the feeling well see this tested again and again. Tim cook is like, remember when well have you back. Thank you for your time. That ireland was trying to get robert, great to see you coming up, blackrocks rick 14 or 15 billion from you in rieder gives his take on this taxes. They are not going to take it. Weeks trading what is 14 billion to apple well look at the fixed income side of things European Court is backing the later chief medical officer of company in the eu landmark case. Moderna joins us breaking down results from a vaccine study at issue, a 2016 ruling that that weve been talking about ireland had granted illegal tax all morning. That stock getting a major pop benefits to apple and were looking to recover 15 billion youre watching squawk box on cnbc some Companies Still have hr stuck between employees and their data. In unpaid taxes. I dont know what apple has in cash right now do you know andrew or becky . He was like, maybe well put in a new food court 15 billion. Something over 200 billion so 15 is nice id be happy but not what it would mean to a lot of entering data. Companies. I think theyll take it. Changing data. It makes a difference. More and more sensitive, personal data. Apple is so amazing. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. That stock indicated up maybe on this news or other news. Its ridiculous. To a developing story so ridiculous. Between the United States and with paycom, employees enter and manage their own data in a single, china. President trump announcing yesterday, he has signed easy to use software. Legislation to impose sanctions visit paycom. Com, and schedule your demo today. On china in response to interference with hong kongs autonomy he signed an executive order ending the treatment hong kong has long enjoyed today, i signed an executive order ending u. S. Preferential treatment of hong kong this morning, china is responding eunice yoon is joining us now. I guess we anticipated some sort of response. I guess this came as a bit of a surprise thats right. Like you said, we were expecting a response china was vowing to retaliate. Saying they would sanction individuals in response to this act under which the u. S. Will be sanctioning potentially chinese officials as well as banks there werent any specifics but on a similar move, they had demanded fierce critics. American companies in hong kong are feeling a squeeze by all of the politics saying three quarters are worried. 42 are pessimistic of the prospects. The u. S. Stripg the city of special status doesnt help. 64 dont plan to leave. It really depends on your industry the New York Times today announced it is relocating the digital journalists out of hong futures pointing to a higher kong to seoul. Open as investors cheer upbeat this is about a third of its hong kong staff. Vaccine news from moderna. The paper said it was being, well talk to a Top Executive from that Company Straight quote, prudent to commit con ahead. Another day another round of quarrel results from the nations biggest banks he we already heard from jpmorgan, citi and wells fargo up next, Goldman Sachs continue en contingency plans. Breaking news on the housing industry and the ban on huawei from we have data on the mortgage taking part on the 5g network. Market crossing the tape. Well get it to as the second hour of squawk box begins President Trump seemed pleased right now. With that decision the Foreign Ministry saying this just proves this is about political man up u lags and not National Security good morning welcome back to that is about an argument eve squawk box right here on cnbc. Im Andrew Ross Sorkin along with becky quick and joe kernen. Heard quite a bit. Take a look at u. S. Equity what weve heard as they try to futures. They are higher. Get the cfos out of the case youre looking at the dow up 334 points s p 500 up 30 points if you werent on, i was going to bring it up with my friend andrew who talked about nasdaq about 53 points huawei being a political were in Percentage Points increases up for the morning football for a long time also have that United Health a year ago when the uk said we news coming out on the dow are not going along with the United States, it seemed like joe . Todays top story, moderna they were intimating it is not a security problem says its potential Covid Vaccine so it took this hong kong produced a robust, in their situation to get them to decide words, immune robust in all 45 now we are mad at china and now it looks punitive. Patients in its early stage human trial. Remember the news preliminarily we heard was about eight patients neutralizing antibodies, he et cetera also some additional news was that there was overall immunity, now there on board cell based immune egypt not just i dont know there are genuine security antibodies also that they are going to begin a much larger final stage issues given what they dont trial on july 27th know on the back end. So near term as many as 30,000 patients to see if it works and thats a new all time high for the question is is it a clear moderna. And, you know, i dont know how and present danger today being much money they expect to make on the vaccine, but somehow they used in this way and being a got to get up to about 30 plus billion dollar market cap. Push pull on this. The United States clearly told the uk they want the uk so interesting just the bigger news maybe that if you could actually make support on this ban. It work on this platform, that they said, what you would say, it would be something you could talk to the hand rule out now there on board suddenly. The stock trading, obviously, on the coronavirus potential for a vaccine, but i think the broader becky. Issue is this is a new way of i see your hand. Coming at doing vaccines i want to weigh in. Thats exciting too. Never been done and they are i think this is a problem a lot not the only ones working on the of Chinese Companies face. Whether or not you are directly technique. Be nice not to use it in an linked or have investors from the government or not. If you are completely private, you face similar reaction from atte attenuated whole virus the u. S. There has been so much distrust you know, still a lot of in the western world and chinese questions on would it be a party that this looks seasonal vaccine a lot we still dont know. Obviously, its taken. Inevitable at the end of the day. Positive drives you crazy i find it difficult in my same people that were lucky reporting here to see and have a enough to short tesla at 100 are chinese executive who has family all up in arms about moderna here in china to be able to say, too. I dont know if they look at the data no to the communist party to, i just think they think grifter. They need to see an insider say president xi jinping to look selling. Without lookingat any of the like i say, its the same savvy at the data that a lot of Chinese Companies are phasing. Market perspective that got them into tesla short at 100. Eunice, thank you right the one thing ill say about the it is good to see you. Data is this is on 45 patients andrew. And they are 18 to 55 years old okay thanks, guys and there have been questions whether you can come up with a more on squawk box ahead vaccine that works for older well talk about the moderna people and thats the group, the news sending stocks higher hopes for a vaccine. Cohort thats most at risk for well talk about it next the coronavirus. Well take a look at other big theres some relevant questions to ask about whether this will work in older people too movers airlines and other big stocks first it was on eight all headed sharply higher. We are back after this patients if its 45 out of 45 this is decision tech. Right 18 to 55 its an extension of what already moved the stock. Remember the stock got up to similar levels and as you can see actually pulled back came back down with a lot of the weird nay sayers dont want a vaccine or moderna to have the vaccine i cant really i dont understand a lot of im not going to base my life on twitter mobs either, which someone find a stock based on your interests or whats trending. Mentioned. Well talk to companys chief get realtime insights in your customized view of the market. Medical officer in just a few minute its smarter Trading Technology elsewhere United Health posting for smarter trading decisions. Quarterly results. Earnings handedly Beat Estimates fidelity. As its medical costs decline our Retirement Plan with voya gives us confidence. After Many Americans delayed. We can spend a bit now, surgeries and procedures amid knowing were prepared for the future. Surprise the coronavirus pandemic we renovated the guest room, so you can live with us. Im good at my condo. Well planned, the company is namaintaining thi well invested, well protected. Voya. Be confident to and through retirement. Full year out look it would be up more if it werent for the three points off there. Apple winning a court ruling overseas early this morning. Europes Second Highest Court rejected an eu order to make the tech giant pay nearly 15 billion in irish backed taxes. It can still be appealed to the highest eu court this is a commentary about how the whole system works there eu is ireland. Are they allowed to have their save without even leaving your house. Own tax laws its a bizarre way to try to run just keep your phone and switch to xfinity mobile. A country. You can get it by ordering a free sim card online. Or a union in this case i guess they can go once you activate, you only have to pay for the up one more court to see what data you need, starting at just 15 a month. Happens. But siding with apple in this there are no term contracts, no activation fees, case i just wanted to mention i do have some comment from apple on and no credit check on the first two lines. Get a 50 prepaid card when you switch. This too they thank the General Court for 5g is now included with all new data options. The consideration of the facts they go on to say its not about switch and save hundreds. Xfinity mobile. How much they pay in taxes but where they are required to pay it they are proud to be the largest taxpayer in the world. Tax payment plan provides society. They pay tens of billions more in other taxes just pointing out that they are not fighting paying taxes but they want to know where to pay it and they do pay a large amount in taxes too. Largest in the world did they say . Thats what it says yeah they say were proud to be the largest taxpayer in the world as we know the Important Role tax payments play in society fitting day, july 15th, which is normally april 15th welcome back promising news now im still not going to make it you guys is going to make it oh, yeah, im done. The moderna test reducing done, done, done in fact, theres also deadlines i think for estimated taxes if youre paying for the current year, because they put that deadline off normally that would have been production of the virus. Sent the stock higher and the app 15th but thats july 15. Stock of many of the companies now lets get to the latest that have been hit so hard by headlines on the coronavirus the pandemic higher. Joining us now is dr. Scott and. Gottlieb, former fda natio nations economy commissioner, cnbc contributor, Steve Liesman is here and joins us with his road back barometer. Serves on the board of illumina steve, how are we doing . And pfizer you saw that news. Reporter taking a step back, walk us through the pros and becky. What we see is that theres been an impact of this resurgence of the virus on employment and on cons of what you read. Spending around the country. It is encouraging lets get right to the road back barometer. What were looking at is the all of the incremental news. Home base data they Service Small businesses and scheduling and other things moderna, pfizer, im on the for about a million employees board of pfizer. And we and others on wall street the novavax looks very good as have been following this data. What we did here is sort of a well based on early data special run of the data. We looked at states other than the thing we could take away florida, texas and arizona from this experience is we are took them out. Going to develop a vaccine what we see is a 23 decline against coronavirus it looks relative to the january baseline in employment. Like nothing is a sure bet at this but then you look at florida, texas and arizona thats a 30 point but everything is suggesting we should be able to decline. As ill show you in just a develop a vaccine. Second those states were leading now lagging. Whether we have it in 2020 is a new index, the kbw restoreation index they put together 13 high the likely question. Frequent indicators with a one the selected use under emergency week lag, you will recall, youll see in a second whats use authorization. Happening to the improvement one of the big stumbling blocks that slowed down is the ability to enroll the the home base data the blue line here represents trial and enough cases of the the three statesthat had the resurgence, arizona, florida and texas. Coronavirus. If you enroll 10, 20, 30,000 you can see up until about the middle of june they were leading the country. Now they are lagging the patients, you need enough to get country. Just so you know those two dips in the chart one of those is covid in the control arm unfortunately, one of the consequences of the epidemic we had under way is not only are july 4th weekend theres an effect on employment these trials to unload quickly that could show up in the jobs report now lets look at the kbw but the events to turnover the card that we saw sooner whether restoration index. That improvement pace has slowed as of a week ago it was still improving. These are unloading quickly. 1 improvement and improving much more strongly before that talking about the ethical thats the result. Questions that will come into credit card spending, jpmorgan play whether or not these arrive saying its flattened out. Improvements they have there in and how they are distributed hair High Frequency credit card there are early situations in the early stage and hopefully spend. They say we continue to see that the pull back in spending since folks who will have access to late june has been widespread it how do you see that playing out across states. In the population in the time if theres some correlation between the spread of the virus over the this is a 2021 event and last two weeks and the pull back specifically if there is a in spending. Timing element of it we find states with higher levels of spending especially in 2021, there may not be when the card was present in the restaurant have seen more rapid enough supply to inoculate the growth of the virus in subsequent weeks becky, what they are seeing here whole population is that when more people went to there is only a portion that the restaurant and spent, it was will want to get vaccinated. A lag of several weeks they would see the virus creep frankly, only a portion we need up thats something i wonder if the to vaccinate to get some level people and Public Health experts are looking at that kind of data of immunity. Theyve started to manufacture as well. Steve, that new kbw toward the end of the summer, theyve said that publicly it is not like a flu vaccine restoration model that youre looking at, what does that where it is rolling off the measure . Reporter index theres 13 different high factory floor as the season gets frequency indicators in there under way. Including home base, jobless youll have to wait for more claims, the dallas fed mobility supply to come on to the market. Index, some other indicators when you are doing vaccine we have a whole lot of these manufacturing, you dont just things i like the idea of putting one get one day of the entire lot of forward here that has all of the vaccine available. Them including and showing its it comes off in increments and running about 27 below its baseline which is probably about do lot release hold onto the lot and test it where the economy is running right now. And maybe it stable. The only problem is its not quite as High Frequency as the other stuff. They update every friday that will be the case here i thought i would introduce it we are doing the manufacturing today. Just to be clear on that, at risk. That index itself didnt take a companies are starting to make step back ward its not continuing to move it even before we know whether forward at the same pace but looked like it was up a little or not it will work in the phase bit. Reporter precisely three trials i read several stories about it is up if you look at the bar chart the how health and Human Services will be taking over the states pace of it has come down over reporting of what is happening the past couple of weeks now this is as of the end with coronavirus cases it wont be doing through cdc this is july 3rd and well see what happens july 10th with the anymore. Reading the stories about next indicator if, in fact, it whether you could trust it at goes flat. A lot of indicators inside of it this point wonder what you know about this have gone flat already and whether you could trust the steve, thank you. Data about health and human we appreciate these updates and well see you again very soon. Services at this point the data will be shared with as the u. S. Continues its the cdc. Road to recovery our next guest there is frustration about the is setting his sights overseas systems being old and not being specifically in europe to try to able to collect the data and bolster his portfolio. Joining us right now is rick rieder, chief Investment Officer report in a sufficient way of Global Fixed Income and hes the path would be to build out the head of Global Allocation Team at blackrock and rick, its the systems great to see you this morning. There is a creation if something you too, becky. Thanks for having me is not working well, theyll before we talk about some of the issues that we definitely rebuild some wear else want to get to, i want to point out that the Global Allocation Fund that you run has been given they would try to replace the a shout out for being 10 ahead system in what they are doing. Of its peer group in terms of they had the scientific returns for this year. Expertise to call this data in thats important we do like to listen to people no other way than any other who have been right. Congratulations on that. Agency does. Some studies have shown even lets talk a little bit about what steve was just mentioning people that have recovered, like this idea that the recovery is six months later, they dont still moving forward at this nearly have the antibody point but certainly slowing strength they had when fighting down that probably doesnt come as a the disease. What is the difference between a huge surprise given what we know about the states that have vaccine we think of lasting a pulled back on their lifetime or maybe you need a reopenings. Becky, completely right booster and this i know we get a new flu vaccine its incredible watching these markets. By the way, i forgot to mention every year, thats because the we sold some risk yesterday in the markets when you had some of this frothy price action that was pretty incredible flu mutates. Theres a balance today in the circulating antibodies markets. Markets are trying to interpret some of the data which is wont stay around forever. They are going to decline over leveling off that data from jpmorgan was time and start declining rather really good. We see that in credit card data quickly. You have other forms of immunity in the data that moderna put thats leveling off. You talk about todays price out, they designated the other action or yesterdays price action relative to the vaccine, immunity including a t cell markets are doing a couple of things one were improving whether its immunity it is possible after six months, this vaccine, domestically or you dont have circulating antibodies anymore from covid internationally. The other thing the market is after you get the infection or reacting to is this get vaccinated but youll still extraordinary liquidity and the fact theres nothing else to do have residual immunity when the fed is keeping rates down youll still have memory b cells part of what steve is describing and so important unemployment will stay high for a period of and t cell immunity. Time so we need to keep the just because we dont see discount rate low. Circulating antibodies, we you have this perverse effect on shouldnt defer you dont have markets. Immunity rick, you have been positive one other point here, people who had the infection in march, if on stocks for quite a while. They go now and get antibody youve basically been of the opinion thathats hard to tested, they might not test negative fight those massive trends but doesnt mean they cant get we did hear from jpmorgan and a couple of other big banks, the infected again massive numbers of loss that was my second question provisions that they are taking to you answered. At this point. Do they see something the rest that was that you have mentioned of the investment world doesnt see . Are they being overly maybe some other vaccine conservative what you heard from them did techniques that might elicit the that change your perspective on c based immunity, the t cell anything youre watching out there . Not really. When you provision youre being immunity are you surprised the mrna would conservative about what potential losses are so, i always look i tend to look at charge offs, measure there and was it robust . Nonperformers, past dues et cetera is there a way to measure or but you have to respect incredibly impressive quantify the immunity, the t institutions when they do that we watch the data really carefully and when you take a cell immunity . It is more difficult to savings rate in a country thats gone up as dramatically as it quantify the t cell immunity has, a savings rate up a third it is probably going to be the because of the stimulus thats gone in and the spending power case that the vaccines are going thats gone in, listen theres to be more effective at going to be you can see this in credit, youll see this in enlisting the t cell immunity. Parts of the privatesector. There will be more defaults and we dont know for sure more stresses but then you look that is at least a presumption at the aggregate the aggregate is still moving in and running theory that could the right direction. You have to parse part of produce an antibody response what the equity market is doing we dont know for sure with winners and losers. I havent seen anything like this where separation by who is generating real cash flow, those were you surprised . Valuations are moving to almost extreme levels your best call you know no. It will produce a sort of full what your best call has been i dont know. Some days i wonder spectrum response. Tesla the question is what is the i must say we sold it, it was imagi in our portfolio magnitude of it . These valuations are the bottom line is that these unbelievable its a Great Company are likely to work better or you sold it you mean you like it because you have one here you are trying to pretend worse i think well have a youre interested in like basis choice in 2021 and be able to point returns across a yield taylor for different populations curve. 22 basis points, 62. Much like we do now. Get out of that business get into the high flying story there are different vaccines on the market for shingles, knew stuff. You were right about it, though. No. I think no, i still have personally no its a valuation. You look at other electric vehicles in the first four mown months the world has realized pneumonia, the flu well see pretty rapid the transformation as a bond guy as a bone innovation come into this space. Guy when you said tesla, dont be that afraid of it at 300 or dr. Scott gottlieb, always 400, that was saying something you were looking at balance appreciate your time and insight on all of these complicated sheets people at 300 said it was going zero you didnt have that opinion issues dont miss next hour no. Well have a lot more with but at 1,000 modernas chief medical officer but now who will join us here. Its 50 billion thanks, when we come back, well tell you how much one you pulled your bond rating i dont do that texas county is willing to pay to seal the deal for the next sounds like it. Sound like a pretty aggressive buy right now tesla giga factory okay. Rick, real quickly where did you sell it . Looking at the biggest market so i think with 1,000, not gainers. Exceedia is adleing the way up 4. 9 personally but i think that was squawk box will be right back. About their level. By the way, i think the barometer, the speculation youre seeing in some of these high flyers, some of this retail trading activity youre seeing in some of these names is extraordinary. I mean its extraordinary. So much valuation becomes secondary to momentum. That part of why you got to take some chips off the table in some im still discovering whats next. Of these sectors where you and still going for my best. Preach any form of reasonable even though i live with a higher risk of stroke valuation at some of these due to afib. The broad equity market is not. Not caused by a heart valve problem. Priced too high on a free cash so if theres a better treatment than warfarin, flow basis im reaching for that. Eliquis. There are parts that seems to get a bit frothy eliquis is proven to reduce stroke risk rick, we never have enough better than warfarin. Plus has significantly less major bleeding than warfarin. Time we didnt even get to the euro call but well have you back very eliquis is fdaapproved and has both. Soon we always appreciate you whats next . Im on board. Thanks becky. Thank you, guys. Dont stop taking eliquis thanks, rick. Unless your doctor tells you to, a lot more on squawk as stopping increases your risk of having a stroke. Eliquis can cause serious and in rare cases fatal bleeding. Ahead. Moderna shares jumping this morning as well as so many dont take eliquis if you have an artificial heart valve others on the back of this upbeat news about the companys or abnormal bleeding. While taking eliquis, you may bruise more easily Covid Vaccine. Well talk to modernas chief and it may take longer than usual medical officer right after the for any bleeding to stop. Break. Schwstock slices. Seek immediate medical care for sudden signs of bleeding, for as little as 5, like unusual bruising. Eliquis may increase your bleeding risk now anyone can own companies in the s p 500, if you take certain medicines. Tell your doctor about all planned medical even if their shares cost more. Or dental procedures. At 5 a slice, you could own Ten Companies for 50 ask your doctor about eliquis. And if your ability to afford. Instead of paying thousands. Your medication has changed, we want to help. 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. Schwab. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Welcome back to squawk box. Travis county in texas voting to theyre off. In the kentucky derby. Give tesla tax breaks worth at rory mcllroy is a two time champion at east lake. Least 14. 7 million to build a new plant near the austin touchdown only mahomes. Airport. The big events are back the site tesla proposed to build and xfinity is your home for the return of live sports. A new giga factory they still need to purchase the land which would cost an estimated 5 million and cost an estimated several billion to build the factory. Two states where we had the big fight in new york over amazon but texas looking to get tesla there and guarantee it pretty interesting we should find out how many jobs it would create because another thing elon musk has done so well weve been talking all is use robots to build his morning moderna. Shares are higher. Up 17 on positive news about vehicles stick with the things that its potential coronavirus move uber and lyft have been vaccine. Mode volatile Massachusetts Attorney general modernas chief medical officer. Meg. Announced that it is suing reporter dr. Tal zaks joins us this morning. Massachusetts is, the ride tell bus this full data set, we sharing companies over saw data on about 45 patients in classification of drivers as terms of neutralizing antibodies contractors rather than up to this point employees. 45 out of 45 a similar lawsuit made in how does it affect how you look california the companies will contest that in court coming up, companies at the fact we may have an effective vaccine. Pointing to a solid open yes, indeed we saw data that this vaccine well talk about the catalyst can indues neutralizing next from modernas positive antibodies in everybody who got vaccine news to another round of vaccinated this is reassuring to us and puts us on a positive path quarterly results. A look at yesterdays s p 500 towards a large trial which we hope to demonstrate the safety winners and losers and efficacy let me tell you what we saw. This study was run by the National Institutes of health. I give them credit for stepping into the fray very early in the study. What they demonstrated now is youre first. With our vaccine, with this rna first to respond. Vaccine were able at a dose first to put others lives before your own. Thats pretty well tolerated to and in an emergency, you need a network that puts you first. Demonstrate neutralizing antibodies and these are that connects you to technology to each other and to other agencies. Antibodies that can block the virus ability to get in the cell thats why everybody is solacer built with and for first responders. Focused on it. At that dose when we give our firstnet. Vaccine with a primary dose and the only officially authorized Wireless Network for first responders. Another month you get a booster shot we can achieve a level of because putting you first is our job. Neutralizing antibodies in every participant who got the vaccine. Not only that if you look at the average levels at which we can achieve these antibodies, it is at or above levels that you can see in people who actually have been sick with coronavirus and the reason thats important is that to the best of our knowledge today if you have been sick with covid19, youre unlikely to get sick again at least not in the near term future based on the data we have to date. If we can get your immune response to recognize that part of the virus that allows your immuno response to prevent it from replications at levels that are there or higher it bodes well we believe for the potential of this vaccine to ultimately prevent covid19 disease. Of course, this is a brandnew virus. Understanding of the protection one gets after infection is still evolving how would you say, you know, your data really stacks up against our understanding both in terms of neutralizing antibodies and tcell response you saw in participants as well as to how protective this vaccine could be thats a great question we dont yet know. Were trying to look at the strains of science what it will teach us what you can see here is sort of three different strands converging to give us this the first is that we under this virus well enough both from experiments done with this virus as well as its close cousin sars and mers this fight protein is the critical piece of the virus that you need to block with your immune system. You have shown that in preclinical models we and others as well thats first point the second point is that we know from other studies of traps inferioring plasma from people who have been sick and recovered to people who are now sick that it is these neutralizing antibodies that are what you measure to say that, indeed that good morning, futures plasma should help somebody get better this is not preventing disease indicated up higher after a gain but try to help somebody who is yesterday. Right now sick from getting the nasdaq yesterday didnto worse. So thats another line of evidence to point at this. I think the final part for us is outperform as it has the fact that we have an understanding of our platform. 27, s p indicated up 25. This is not our first phase one. First of the big banks reported its the ninth positive virus mixed results but the dow closed that we can show neutralizing higher up more than 2 activity against so weve seen with this platform time and again were able to Goldman Sachs set to report news neutralizing antibodies and later it this morning. The fact that we can do so at a amy with us from rbc dose thats safe and well getting to what Goldman Sachs is tolerated and do it at a level saying first thing i want to talk about of that plasma is so promising is one of your points. That is the historic in the news today. Relationship and certain options to the faang stocks. Reporter go ahead. Then i realized, my word, what question for you about the those calls have done for, what practicality of the way the was it, foresight, gambling, booster works. Youre doing a second, second shot, if you will, four weeks robin hood types so many of those have moved so later and my question swhats the efficacy for the first four far. Theyve gone through 10, 20 weeks and then you have to get strike prices. Just up, up, they must have the patient, if you will, back incredible returns for a second dose. They must have used that to make a lot of money typically boosters oftentimes are a year later, multiyears yeah. All of the above for people who are in options later. How that going to work in terms of practicality of making this world, it is difficult to work if people have to go back understand how these historic twice in the course of a month relations have been up ended its a great question for me it starts with basic normally call option prices are not supposed to be higher than immunology we know that the more you put option prices particularly activate the immune system the in a market. More likely it is to recognize the fact that weve seen this in high quality antibodies the amazon, netflix and tesla across the board during the pandemic is antigen. In this case the spike protein a pretty big deal. When you show the vaccine once robin hood is a big impact to the immune system can recognize it and indeed if you look at the that doses we got at the highest people have a push back to me. Dose, at the 260 micrograms, just the sheer lot size we are just that first dose already is seeing starting to get you that we are seeing 100,000 contracts neutralizing activity. It is possible that with high trade. When you dig down, it is 9,900 enough dose a single dose would work however its Crystal Clear from the data if you come in and not a year later, just a few weeks individual trades. Later, if you come in for a these are small investors conshot youre waking up for bringing in the stimulus trade your immune system that thing i thought i cleared didnt so it revs up the immune system and so part of the reason you are boost the levels by 10, 12 and seeing the faang mow metropolitan yum, tech growth thats very meaningful when we talk about the lechl of protection and how long that where you are siege relative to protection will last in the context of the unmet medical need we see around us, what we all under about the severity of getting infected and potentially getting sick with 50 do they go out on 10 or 20 covid19, i think asking people to come in a few weeks after the or do they buy are they seeing first shot and this is merely four weeks later for a booster returns like that . Shot in order to boost the immune response ten fold higher i think you said the premiums thats a reasonable estimate i think people will agree that its a good thing to do. Are not where they should be i wanted to ask about your we think about the world in terms of delta and in terms of idea in terms of how effective how much out of the money it is, this might be for older people at this point. Call it 15 part of that is that this study youre referring, to the results were look at 45 people ages 18 to 55 obviously covid19 really has a bigger impact on people the older they get it is choosing you dont use the and there always has been questions about how effective vaccines are for older people just because their immune system doesnt respond the same way a younger persons does to a vaccination. Do you have any thoughts on that leverage because of what they or when you might be able to have an idea how effective it is had. I read that the tesla weekly on people who are 65, 75, 80 years old . Options went up 17 . Its a great question i can tell you that we have had experience with one other vaccine in our platform that demonstrated the same kind of immunity against older adults. In this particular one the trial it is was amended to include older i cant do. It it kills me. I spent a little too much adults, both age 55 or 56 to 70 time on my account on expire and above 71 operation day to buy for an those have bern fully enrolled and were looking at that data eighth and then go up. As they emerge phase three trial is geared getting to Goldman Sachs towards testing this vaccine in the point you make though, the those who need at any time most. Were going to have people who are at both highrisk of Growth Stocks in the market, infection as well as older there is no action in the value adults, people with comorbid conditions who are more likely and that might be lower option to get sick. When we step back and look at the toldity of our understanding of the emerging data with this vaccine and our platform i feel confident indeed we should be able to reach the right levels of immune response also in the in this value, we also mean older and more vulnerable population dr. Zaks, you mentioned the recovery names in the vaccine that looks promising youll see the airlines and cellular response or tcell response how do you measure how robust consumer names that have been that is. Number two, you said that the hammered during the pandemic antibodies prevent the virus from replicating because it cant attach to the host cell we call faang as the new because of the spike protein whats the tcell response stability. You are better making an amazon what does that do . Does it attack and kill the call if you want an hedge. Virus or what does it do to the coronavirus and then my final question is, could you ever indues a negative immune response like the virus does that factor will see a pretty that causes the immune system to big shift. Can you look across the board overreact . At financial Stock Options to is that a possible side effect see who will cut the dividend of a vaccine where you end up, and who will not you know, where people have that so no cut is implied in storm which is why people die. Goldman. It is about 4. 5 move for today. That being induced by the vaccine . Thats a great question rich but common. Cutting bullish for goldman it is a theoretical concern and today, which is not too much of leads me back to tcells a surprise given what other in the 60s we had an example or Companies Announced in the two of that. Business this vaccine the way it works it it was interesting because wells teaches our own body cells to make that part of the virus site fargo would not imply the cut uses our own bodys machinery to but not nearly the severity what we saw prevent the virus and it closely it mikes me flag what else it mimics what the body would could be underpricing going otherwise see. Therefore its highly unlikely in fact weve done preclinical studies to assure us that risk forward. Looking to see whether you are a mathmatic or something which is theoretical and hasnt been seen is indeed very low if i give you details, could you thats where tcells come in give me a valuation for me it is the orchestrater of a could you do that . I would need a calculator or immune response. This tcell is called helper something but yeah tcells. The options world, it takes they help the cells make antibodies if you look at the kind of an interesting response we have and thats in to get this deep into it is pretty cool. The new england journal data you i love it. Can see indeed our vaccine the leverage, the stuff. Elicits the right kind of help you know what else is great it northeastward, if you think of is selling options so many people are ready to rent your in mun immuno response ito your stock and you can just take the wrong way like allergies in every three months just take this is not that kind. It in. It boosts the right kind of options are always fascinating antibodies youre looking to get and the ability of this vaccine one last thought or insight that to both demonstrate the antigen and antibodies and elicit the we havent talked about about right kind of tcell help which is underpinning the fact we can derivatives . The Options Market has been achieve neutralizer fighters at pricing elections as a risk. A level that i think is as good this is outside covid in or better than anybody has shown general. With any vaccine with a one point that is interesting is tolerable safety protocol. That normally people just own is that all the tcells do, november options this time they are going as far helper tcells help the cells as january 2021. People are worried about the make antibodies or are there actual process of voting this other white blood cells, tcells time around. If we have a delay of counting that attack the virus itself not ballots because of how we are by helping dcells voting during the pandemic it is taking people out further. The answer is its a complex system this time around, who is being the tcells work in a provide chosen for the cabinet matters a variety of responses lot. We are seeing a lot of investors take that later health i would think of it as sort of a the Senate Matters too. Yes holistic immune response we saw that 2 trillion i think that data from what yesterday in 10 years. Something green. People expect from antibodies as we get closer, well have you will do and convalescent palace back and talk about what the na and study from animals options are saying about this demonstrate these neutralizing election the senate, a toss up right now. Antibodies are the end game here they are what we expect thank you. Andrew. Okay scientifically to mediate thanks, joe. Protection and what were when we come back, today is tax measuring as a way to gauge day and the pandemic causing so do you think the tcell many to work from home, cities response that youre getting is as good as some of the other, are seeing a drop off in tax with an antigen, as strong or revenue as workers flee urban areas. And more as futures climb higher not as strong as a competing vaccine. I dont think its possible on the Moderna Vaccine news. To look across trials and make that measurement take a look at numbers led by these are not essays as else american airlines. Watch us live any time on the understood reporter meg terrell cnbc app i want to ask you more about we are back in a moment. Safety joe was talking about that extreme potential reaction but tolerability you saw in the trial. After the second dose of the 100 microgram dose which is the one youre take into phase three you saw high rates facilitate tying, headache, muscle pain. I know that in phase two you are looking at two different dose levels how does the world reopen for business . Do you have the right dose for the phase three . Could you gave lower dose for to return to the workplace, safely, that second shot companies will need the right tools. And finally, i also want to combine with that question, a thats why salesforce created work. Com question about mercks ceos its an allnew suite of apps, expertise, and services. Comment that vaccine providers are doing a great disservice by to manage this crisis today, and thrive tomorrow. Everything Companies Need to return to the workplace. Saying well have a vaccine by the end of this year by creating lets reopen. Safely. False hopes. Is that a responsible statement . So, let me start maybe with that you know, i cant comment to his statement except to say i believe we have an ethical obligation to advance this vaccine as fast as possible. I think it is incumbent upon un responsible, judicious and accounts for the understanding of the emergency protocol and we do that by understanding our phase three is a large phase three. We have independent observers by the National Institutes of health actually as the data safety monitoring board looking at events as they emerge i feel were doing it, it in the right way. We expect to see enough events that the trial should read out soon when that will happen i dont have a crystal ball i cant comment. You asked me about the safety protocol its found what were talking about. When you talk about vaccine these are all expected events. Okay they are collected in a manner that fda had years ago put guidance to say this is what you should expect to see in a vaccine and should measure what weve done is looked at that guidance and asked people who were vaccinated, do you see any symptoms and how bad it is and what do you feel the answer is pretty much as we expect with one interesting twist. What i do hasnt the Adverse Reactions are either local injection site it hurts a little bit or you get flulike symptoms like with the common cold and the important thing here is that these events are expected and they are transient selfresolved. You have a day maximum two of feeling headache, fatigue. Im not making light of they symptoms im trying to put that in context ever what we hope these symptoms are indicative of which is activating your immune system so if you get exposed to sars ii you wont get sick and thats a much worse illness than these expected flulike symptoms for a day. The adverse event profile is worse after the second dose. That tells you that youre actually teaching the immune system to recognize something specific reporter thank you so much for being here this morning. We look hearing the next update from you guys. Back to you. Easy to say wow look at what this interview is doing to the welcome back dow. This Goldman Sachs u. S. Equity futures are higher Goldman Sachs reported initially the sock was 220 up six and then the dow was up more than 550 went to 218. Now its 224 points up almost 10. A lot of this coming because of add that into the dow. That news out of moderna thats why the dow has moved from 350 or so just adding in theyve seen early results starting more the next hour. The contribution by Goldman Sachs. In the old days you would see gold mapp a lot of time if we saw 6. 25 a share versus the telling you how fast the news consensus of 3. 78 we start cycle rolls. Looking for extraordinary items Trump Administration has agreed or gains in the old days goldman you to rescind rules that it would couldnt do that they are trading revenue and the have barred International Way they operate they can students from being in the generate outside beats and i United States if they were taking classes only on line. Dont see anything necessarily in here that isnt that that has been challenged doesnt, shouldnt be counted as the rules will now revert to this quarters earnings and as a previous guidance in the spring that would allow students to result big gain were seeing in the stock. Come to or be in the united much better expected results states even if schools have revenue 13. 3 billion shifted to online instruction analysts were looking for 8 this fall. When we come back, how much billion. We are looking to call to a new york city stands to lose from people who normally work in goldman shareholder when squawk box comes back. The city but are working from becky, you have something on home now goldman . Yeah. Watch out, rules are not set in this is what we saw with jpmorgan yesterday it was the equities business and stone and workers are at risk to Investment Banking business that did so well and offset some of paying two municipalities or the issues at the retail bank. States gold mapp, obviously a big player had their erratics revenue announcer dont forget to global revenue subscribe to our podcast Investment Bank revenue 2. 66 youll get interviews and billion and fixed income 4. 2 behindthescenes content. Look for us on your favorite billion. Huge markets very important we saw it yesterday with podcast app and subscribe to jpmorgan squaurk pod today. The other thing important Goldman Sachs is saying for 2020 flus they do expect u. S. Gdp to be down 3021 they are saying u. S. Gdp could be up 5. 8 thats their guess considering the outlook. Again, this is something that was hinted to yesterday with jpmorgan we will talk more about this and also they are setting aside for wholesale loans. Well talk about that when squawk box comes back. Announcer time now for todays aflac trivia question. Approximately how many grapes does it take to produce one bottle of wine the answer when bcsqwkcn ua box continues aflac. These are all the cab rides to my physical therapy. And aflac paid me directly to help. Aflac. What he said. And this unexpected bill is from. The twothousanddollar specialist. Thanks. Aflac. When youre sick or injured, aflac is there. We can help with Expenses Health insurance doesnt cover. Get to know us at aflac. Com. Welcome back, everybody. It is tax day. There is a secret strategy to some highen income workers that live or work in new york because they are now working from home and it could cost the big apple some money good morning. New york city expected to loose announcer now the answer to about 300 million in revenue todays aflac industry a from workers working outside the question approximately how many grapes does it take to produce one city during covid. Bottle of wine the company that helps track the the answer, 700, or about 2. 6 wealthy for those taxes. Pounds monaeo, they have an app that tracks your location to use for audits they say business has more tha doubled in may and june. Big growth has been hedge funds you should be mad they gave this guy a promotion. And private industry in new you should be mad at forced camaraderie. York that has been a 4 tax on and you should be mad at tech that makes things worse. Partnerships partners when they work out side the city dont have to pay this tax. But youre not mad, with one Hedge Fund Partner because you have e trade, whos tech makes life easier by automatically adding working outside the city could technical patterns on charts save millions more on the and helping you understand what they mean. Personal income tax side dont get mad. Get e trades simplified technical analysis. Seeing a more permanent flight from high tech states. 70 are going to florida, 10 to puerto rico and 5 to texas. Accountants tell me the number one question they are getting right now dont have to go to nk city asking do i have to pay personal income tax in new york city and for most people the answer is, yes but for partnerships the answer is no. Its going to be costly. Robert, i would imagine new york city is not going quietly along with this. They got to be taking some steps to bring that money back in. Reporter yeah. Its never been tested and certainly not at this scale and new york has said look, were only going see a decline of 17 . They are not expecting a lot much challenges though but everyone i talked to said that number will be at least double so we could be looking at up to 600, 700 million in loss revenue. They wont let that go quietly every dollar counts right now for new york lets continue this wfrgs with our ne with our next guest. Jared, what do you think about this this is setting up to be a pretty epic battle not just with new york city but i imagine cities every where it is a lot of cities are going to be dealing with this. A lot of states will grapple with this issue. Under a normal circumstance only Goldman Sachs shares up 4 two jurisdictions can on the results just posted potentially tax you. The place where you work or the joining us now Jeremy Bryant place where you live, where you are domiciled. A lot of people are no longer working in a big city or maybe so jeremy, you have part of your working even in a different state. Portfolio in goldman under ordinary rules the place less than 1 of your assets. Where youre no longer working do you wish you had more can tax you. New york is a bit of an outlier i think you said the numbers will here their unincorporated tax Works Trading will be line was it in line or much better the way most state codes work. They are taxes are unusual in than expected . Much better which they have a he convenience we got a hint yesterday trading rule not convenient for the employee of going to be better than or company which basically says expected but goldmans numbers certainly that on the surface looked even better than that thats pretty positive any time you can get trading that much. Given the market we had a whipsaw market and high volatility we felt the environment was going to be good for them but these numbers are even better. The number itself which is so far above expectations and expectations had come up recently to three and change and this was six and change. Theres no extraordinary items there . Thats a clean beat based on trading and other things that people didnt realize goldman would be this, perform this well yeah. We havent had a chance to scrub through the numbers fully yet. Just what you said before when you see this size of beat thats the first thing you look for, right . Are there one time items, extraordinary items. We didnt see anything at the surface here still have to go through the numbers more on the surface it looks good hard to do with revenue exactly hard to manage those, shall we say and revenue is well above expectations how about weve seen banks preparing for some loan losses or some detdeteration yeah. Yeah goldman has less, you know, traditional banking, as some of the others i think their reserves, exactly. Their reserves dont need to be quite as high. They have an advantage there especially traditional banks if you think about it right now that dont have the Capital Market side. They are going to have a little bit more difficulty and have to build higher reserves. Gold mapp has a little bit of an advantage that trading is the strength right now jeremy, thanks for the quick rundown right after the results come out we appreciate it thanks andrew thank, joe coming up breaking news on the mortgage market. What it might tell us about the broader economy. Well be right back with that after this no matter what challenges life throws at you, were always here to help with Fast Response and Great Service and it doesnt stop there were also here to help look ahead thats why were helping members catch up by spreading any missed usaa insurance payments over the next twelve months so you can keep more cash in your pockets for when it matters most and thats just one of the many ways were here to help the military Community Find out more at usaa. Com hey, our workers comp insurance is expiring. Should i just renew it . Yeah, sure. Hey there, Small Business owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Sure get a quote in 3 minutes at easyaspie. Com. That is easy. So, need another reminder . No, im good. Reminder for what . Oh. Ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. New data this morning on the Housing Market diana oleck has the latest report mortgage application. Reporter i probably sound like a broken record but Mortgage Rates set another low it is 63 basis points lower. Thats just refinance demand up 12 for the week and up 107 from the same week one year ago. Refi volume has overwhelmed lenders so much so they are not offering the best rates on refis but consumers are still seeing the benefit. Demand from home buyers fell back 6 for the week it was still 16 higher than a year ago but that annual comparison was half of what it was the week before. It may be that buyers are hitting that wall of theres nothing affordable out there to buy. We know builders are benefiting from that. Mortgage applications for a newly built home were up over 50 annually in june the big question is will another potential covid shutdown throw cold water on one bright spot in the economy which sof course, housing. Andrew that was going to be my question in terms of the housing picture. If the number is down 6 for the week stat related at all to some of the outbreaks and the continued spread in arizona, florida and california is that regional or can you get granular with that data . Reporter they dont break it down by the region and do you see these fluctuate week to week what im looking at is that specific annual growth rate. We were seeing it up 33 annually last week in the 20 range the week before seeing that annual comparison shrink says to us yes were getting into the slower part of the summer market. Weve seen demand there must be something pulling people back. Could be people not going to open houses, getting nervous about that or theres just so little for sale and prices continue to get higher okay. Diana, thank you becky, over to you andrew, thank. When we come back the ceo of mp material, his mine is the only source for Rare Earth Materials in the country well talk about the companys plan to merge. Stay tuned youre watching squawk box on cnbc. Hey lily from at t here. With some helpful tips. Tip 1 you can currently get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Save without even leaving your house. 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. Welcome back to squawk box the owner of americas only domestic source of rare earth announcing an agreement to merge with fortress acquisition corporati corporation. Upon completion the Company Mp Materials will remain listed on the New York Stock Exchange under the ticker mp. Joining us right now is the chairman and ceo of that company. Good morning to you, jim nice to see you. Congratulations on your transaction. Thank you theres two components of this deal i want to talk about one is the geopolitical one and the other is just the number of specks weve seen which rays the following he question. Why couldnt you have sought to go public through the normal channels rather than go this route given most typically in spacs the cost of what you have to give up, give over to the sforn of the spac is high. Sure. So good morning. Obviously at mp materials is very excited today i think everybody in the country should also be excited because today is, you know, a great day for all of us. Given everything weve learned from coronavirus, supplychain resiliency is critical for all of us and i hope this is the first we hope were the first of many for Capital Formation around the idea of bringing home some of our critical supply chain and as much of our supply chain as we can. You know, we really sit at the crossroads of both that movement as well as the Electrification Movement to answer your question on the spac we considered a lot of options particularly in the ipo. What i would tell you first and foremost i have to give a strong thank you to the team at fortress they were outstanding partners this was a case i went into it skeptical as well. Theres a sordid history of spacs going back a decade. They were committed long term partners from the beginning and the process was obvious as it unfolded that they were the right partner for us for a number of reasons. I also think the spac landscape has changed. Its not a great analogy, but if you think about high yield bonds they were once junk bonds in the 1970s. That was a sordid space. In spacs although they can be expensive they arent in todays Capital Market, a way to efficiently and quickly form capital with Institutional Investors on one hand, actually getting a lot of transparency to understand the nature of what they are investing in and really kind of properly doing these deals and giving management teams in growth spaces certainty as far as valuation and some of the dynamics of the transaction. So i actually think that this is i think spacs will continue to grow, take over the landscape quite a bit more and in particular in the electr electtrifica the ion space youll see some that are successful and some that arent. But it makes sense jim, speak to the geopolitical issue of require earth and trying the resiliency of the United States in a postcovid world and how this transaction plays into that. Sure. The require supply chain the critical thing is our materials go into the magnets that Power Electric vehicles, wind turbines, drones, robots, anything that you think of as the green future our materials go into the magnets that move them the key thing about require earth you often hear a lot of discussion of Battery Technology i dont know if tesla or any of these companies, what type of battery chemistry it is, whether its solid state, whether it, it be a capacitior or hydrogen but however the power gets to the motor the magnets need to move the motor. So rare earths are critical because we know well be part of the solution for the future as this boom happen this is really just guesting started. I know theres been some sort of feeling of speculative penetration is 2 . It will go to 90 in the coming few decades. We think were part of that solution as this grows we want to thank you. We want to continue this conversation with you. Come on back in the tufure tell us about your progress. Congratulations on the deal. Talk to you very soon. We have a big hour. Good morning Bank Earnings lifting the markets. Goldman sachs posting a big beat, dow now indicated 450 points higher. Moderna shares soaring on positive vaccine news. Well show you other stocks getting a boost. Plus Critical Survey data from swing states how voters feel about another potential round of stimulus georgia senator david perdue will join us final hour of squawk box begins right now. Good morning dont adjust your set. 500point day at least premarket welcome back to squawk box on cnbc im joe kernen along with becky quick and Andrew Ross Sorkin 550 yesterday, 491 today the 39 points youre seeing the s p gets that close back up to for the year if you go back to january. Not the highest but in positive territory for the year heres a percentage move youre seeing on the futures this morning. The dow not always like that but Goldman Sachs going pretty well this morning i think its offsetting as u and h still down those gains youre seeing actually United Health is now up a point. I think youre going to talk about that, becky, along with Goldman Sachs. Lets give you little more detail two dow components out with earnings Goldman Sachs earnings came in at 6. 26 a share the street is only looking for 3. 78. Revenue blew things out of the water. Breaking that 13 billion beat the 9 billion that analysts were expecting this was big news. Yesterday we talked a little bit how strong theyve been in Investment Banking and what was happening with texts and debt markets. That was the strength of Goldman Sachs too. Their Global Markets revenue 7. 2 billion Investment Bank 7. 2 billion equities revenue 2. 9 billion. A lot of that money coming in and they dont have the offset of the retail bank that some of those traditional banks have too, so very strong numbers all the way across the board and that stock is up 1. 4 . United health reported adjusted earnings of 12. 25 a share the company said this big beat because of what called an unprecedented temporary deferral in risk business they expect all of that care to get picked back up in later quarters im guessing most of it would but, guys, some doctors visits that didnt happen or just never going to happen. Something to be looking or that stock up by 63 cents. Andrew okay. Meantime another big Market Driver positive news from moderna. The company saying its potential Coronavirus Vaccine produced antibodies in all patients, had a 8 patients tested. Early stage human trial. Modernas chief medical officer joirnd us in the last hour with this rna vaccine were able at a dose thats principle well tolerated to demonstrate neutralizing antibodies and these are the antibodies that can actually block the virus ability to get in the cell thats why everybody is solacer focused on this. Heres a look at some other stocks getting a pop on that positive vaccine news. A lot of travel Companies Given if we are to get a vaccine hopefully folks will be more likely to jump on planes and get on cruises joe . Yep becky, i was thinking if everybody young got vaccinated you wouldnt have to worry about the old people even if it doesnt work quite as well would they aldo it. So many people push back whether they would take a vaccine at this point too gottlieb has said he doesnt think well get anywhere near universal vaccinations to get us to that point. We never do it works pretty well you dont need to get everybody. Im seeing the cartoon, saw in the daily news two people said hey we have aggravate news about a vaccine were not going to get. I dont know had a trump tshirt on or something. Deplore scrabble Congress Debates another round of fiscal stimulus, a new cnbc change Research Survey shows an overwhelming majority of likely swing state voters support additional aid eamon javers has had gray hair for a longtime now matching the president s hair which people are talking about quite a bit too as well. Tell us about the states at play reporter yeah, joe look a striking finding here when we look at whether or not those swing state voters in the six battleground states want additional stimulus. Look at this number. 81 of the people we surveyed here likely voters say they would like additional stimulus that is a monster number its not too much of an exaggeration to say the only thing that poll in 80s are mom and apple pie in this country. Thats a striking finding and across the board here. Overwhelming majorities of both parties want to see that stimulus, you talked about 81 in the Battle Ground states. Among democrats in those Battle Ground states, 95 that want to see additional stimulus. 68 of republicans, those you wouldnt expect republicans to want a lot more Government Spending 68 of them in our survey here are saying they do want that additional stimulus. Part of the reason is the really fear were seeing about the future of the u. S. Economy, the millions of layoffs weve seen having an impact on the way people think about this. 43 in the Battle Ground states saying they are confident or optimistic about the u. S. Economy. 57, though, 57 say that they are worried or uncertain about the Economic Outlook all of that adds up to bad news politically for the president heading into november. Still early here, guys but the trump slump does continue and the Battle Ground states were tracking the president is under water in all of them. Hes down six in arizona, down six in wisconsin, down six in michigan pennsylvania down eight. North carolina is a squeaker but the president is down one in our poll in North Carolina of these likely voters in florida down seven. I should explain group polling these Battle Ground states this time around because were trying to avoid the problem we saw in 2016 where people relied on the National Polls to get a sense of where the election was going and really missed the Electoral College victory opportunity that the president had. Were also looking here at likely voters as opposed to just registered voters. Thats an important one. That tells you who more likely is actually to turn out. We think the methodology here gives us a better picture of whats likely to happen in swing states and thats where the whole ball game is in these swing states we think where new york and california are going to end up and whose column but these swing states are where the battle will be fought. These voters are actually likely to turn out and vote in november bad picture right now for the president but as i say its still early. It is 5050 republicans, democrats, usually some of those polls reporter yes trying to balance out all of the factors here just quick question how were they asked about whether they wanted more stimulus i just wonder because it doesnt surprise me at all people would like to see more stimulus when so many of them saw 1,200 that came directly into their Bank Accounts reporter thats a good question i dont have the actual wording of the survey here in front of me its a strike finding you see, 81 of americans supporting anything in a country as divided as we are. Break out by party, you eoverwhelming number of republicans also supported 68 is a pretty high figure as well. Thank you for more on the recovery lets bring in georgia senator david perdue, former ceo of both reebok athletic brand and dollar general. First lets talk about your home state of georgia and you remember governor kemp, he did not follow a lot of the consensus thinking and for a longtime, i mean it was controversial, he set himself up for a lot of risk, i think, the way he handled thing in georgia and looked like it was going really well and looked like he had confounded the nay sayers. Is it still like that or are you starting to see things in georgia that are troubling in terms of the virus taking hold at this point . Good morning, joe were opening georgia. We were one of the first states to do it i applaud the governor for doing that hes following the president s three phase plan we had an uptick in infection but skewing much, much younger i think were on track we shut the economy down we talked about this before. Thats nerve been done before. We talked about reopening is rocky. Number one challenge in georgia is reopening schools. That puts more pressure on ppe and hospitals but we got from text our kids. Now that we know who the most vulnerable are we have to protect their parents an grandparents is it possible to have a National Plan at this point . I mean i would think arizona or texas versus even georgia or you look at florida, how do you do that how do you give parameters that will work one size fits all . Well i think what we have are targets. It has to come to the individual states just like countries we were two months later getting into the cycle than south korea, japan or even china. We have states like new york, new jersey that have much higher death rates per hundred thousand than we do in georgia. Went into the cycle earlier should be coming out earlier states like texas that went in late will have longer to go because they didnt get in the cycle. The cycle was pretty predictable. Thats whats happening. Georgia right now by reopening the economy is following the model of our essential workers and also the military. Weve had those people have been working all throughout our military has been functional their infection rates have been manageable they followed the protocol thats what im calling for now. If we continue to follow the protocol, follow the guidelines, we can continue to reopen the economy. I suspect that youre going see some movement in washington next week on this next phase of relief so that we continue to get optimism, rebuilding, continue to build jobs 7 million new jobs in six weeks in may and june is remarkable. Were on track in georgia. Other states may be later. Some states are well into it andrew . Senator, im baffled and i hate to say it, im baffled by the contention that georgia has followed the plan. It cant be part of the plan for the Atlanta School board to have to delay school opening. This is so far from a plan your governor has been asked for the National Guard to come to the state. I just cant understand the positive spin youre putting on this i recognize that were all trying to do the best we possibly can, but to suggest this is going as expected, it doesnt have the ring of truth well, andrew, first of all, youre talk about two separate issues the National Guard didnt have anything to do with covid19 we mobilized behind this virus we put 200 new bed in a new facility in atlanta in anticipation of a surge that never came i can just tell you that our military is operational in georgia. Our business is operational. Were giving parents the decision about whether their kid will go back to a Public School or not or will they continue to home cool them the idea that youre going to look at the down side ofthis thing is, i think, you know, im skeptical of that outcome. Ive been in the state ive seen people helping other people the governor is following the protocol the mayor of atlanta is turning this into a political issue as is happening in several other states were trying to protect people the number one goal in georgia is to protect people from this virus. Second objective is to get our economy going again. Look we just put 2. 9 trillion to work. Only half has been allocated so far. Weve appropriated 2. 9 trillion we added 3 trillion to our federal debt in the last few months thing in georgia now are going as well as they could be expected and i think we have to continue on that trend the thing we got to do, andrew, is continue to follow the protocol and follow things that we know work look at other countries that didnt shunned look at their death rate for 100,000, the infection rate for 100,000. Theyve followed the protocols and we have to continue to do that here. Do you think what weve seen in the western states where it is troubling, florida and others, do you think that rebound that we saw in the job picture, is that going to decelerate a little . Is that why you think we need this infuriate round fourth round . Joe, its different in every state. Georgia being a good state, best state in the country in which to do business ras rebounded very consistently, frankly. Whats happened we got 130 billion left in the ppe program. That thing has been pretty successful because we got it out there so quickly thanks to our Community Banks who had been devastated by the doddfrank bill in 2018 we pass ad law here bipartisan bill that reversed some of the most onerous restrictions on the Community Banks what were the back bone of the ppe program. So we still have 130 billion there. Half of the main Street Program that is still to be allocated and i think we got to see what that impact is going to be now, there are places that we know we need to look seriously at Liability Protection is one more aid for small towns i think is something and i would love to talk about sort of reprogramming some of the money thats already been allocated that may not be used particularly in the main Street Program senator, either the stock market is just being, you know, just out of whack from all of the cheap money or something good is happening somewhere. So, you know, you can try to figure it out. But someone will be right. Someone will be wrong on whats happening. Joe, becky had it right free stuff and how am i going to poll about giving free stuff we have a lot of people concerned about this economy the opportunity is there this economy wants to start again. Im not sure that we wont see that well see a continuation at the rate of new jobs but were heading in the right direction. I think the president is leading us out of this thing correctly thanks, senator joe, i want to follow up i got the wording for this poll. This is what 81 of the people said yes to. In april there was a cash payment of 1,200 to individuals making less than 99,000 less a year or 2400 for married couples. Addition enamel 500 per child for parents. Do you support or oppose an additional round yes, thats what the question was. Only 80 . Why not 100 . Thanks becky senator perdue, thank you. Hope to see you again soon okay well see you. Bye. When we come back our Parent Company jumping into the streaming wars with todays launch of Nbc Universals peacock well tell oc ithat it means for the other stksn e sector thats next. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Welcome back to squawk box, everybody. Check out futures this morning they are indicated up 500 points for the dow even after the 556 point that the dow gained yesterday this is largely because of two dow components Goldman Sachs is the primary reason here. It was out with a better than anticipated numbers and thats why the dow is outperforming both the s p 500 and nasdaq this morning. S p 500 and the nasdaq arent doing so badly all of this has been helped initially by some good news out of moderna on a vaccine they are working on we talked about that earlier this morning all of this adding up to a big day for the markets. Peacock streaming service from cnbcs Parent Company Nbc Universal launches for everyone today. Peacock intends to stand out from the crowd by offering free ad supported version of its platform the chairman spoke to cnbc about how the service will fit into the streaming wars when you look at the next several years we see a path to gain 30 to 35 million active accounts advertising is the primary revenuestream for peacock but as you mentioned there is also a subscription version for peacock. So we believe that having a frictionless way for somebody to access the app, gate really robust experience of content for free is going to really tap into the pulse of what a lot of people are looking for joining us now is is the senior media and entertainment analyst at bank of america and tom rogers executive chairman of engine immediate area first president of nbc cable and cnbc contributor folks welcome to both of you this is pretty crowded field however, a lot of people are at home and watching things right now because of the pandemic. Jessica, what do you think about peacocks entry . It is a Different Service i think, first of all, the timing is great. People are home. They plowed through a lot of disney plus and netflix plus and hbo. It is free the ads are not an intrusion in watching or viewing. Theres a lot of content nbc has tons of brands the fact that its free is great. It will expand as they make their agreements with various cable operators, most of us will get access to the premium or paid subscribers will get it tom, you have been around the cable industry and the broadcasting industry for a longtime obviously, this is a big change. But you have maneuvered a lot of changes in the past. How do you think this one measures up to cnbcs launch which you helped to shepherd in . Theres some real irony here. The cable industry taught the broadcast industry the good model for media was to have two revenue streams, advertising and subscription broadcasting learned that lesson and developed advertising but fees as well from only being in advertising only supported medium then cable comes in and acquired broadcast, comcast acquires nbc and now the future service of the company is basically a one revenue stream company, back to advertising only which has some irony to it. Another irony is the fact that cable was a great gate keeper when we launched cnbc. You couldnt get into homes unless you got through the cable operator well the tables have turned now and cable has lost control of the tv eco system. And its now roku and amazon who have 70 of connected tvs, and peacock is not yet struck deals with roku or amazon prior tv that another great irony here. Having said that, i think this is pretty smart to leverage the Comcast Cable distribution as jessica said they will leverage the entire cable industry relationship they have which theyve begun to do with cox. We have matt straws in charge of it who knows more about on demand programming than anybody else in the cable industry very smart to put things like late night tv on earlier for people who arent up at 11 30 at night like you guys. I think it was done just for the squawk box crew so you guys could see late night television. So some smart things here. Tom, your first point just the idea that this is going to be single revenue stream i want sounds like peacock will be advertising primarily but subscribers too, it sounds like. Well, i think they hope to develop that i think the guts of that is going to be where they allocate the originals. Theres some fuzziness here. The real currency in these creaming wars original Television Netflix is so far ahead of everybody else from the number of original episodes, Something Like four times as many as amazon introduces in a quarter about seven time what hulu introduces in a quarter. There will be some originals here if the originals are on the premium side and thats able to drive some subscription revenue thats great what we might be seeing here is one big free promotion platform to get people in front of peacock and then upsell them to a premium brand that does have most of the high currency original content on it so thats yet to play out. Also i think that having sorry. Go ahead. Having direct to consumer offering enables the company to sell premium, their premiums because you know who youre selling to their head of advertising, head of revenue does an amazing job for new sponsors this will be a robust service. Comcast is leading where everybody else is lagging. Theres tons of subscription offers because its free, its questionable what will happen in the next few months. Its perfect timing. Step back and think what the Traditional Media Companies have tom is right, netflix has a ton of content but not branded these companies especially nbc has a very deep library and its content that people are familiar with whether its snl or the office is coming in january parkes he and recreation these are branded ip that is comforting and known and they have a deep library and thats hard to beat and comcast need or nbc are where consumers are which is mobile. Consumers want to watch when they want and this is a great offer. I want to thank you both for being with us. Were out of time. Well talk to boston you soon. Coming up breaking Economic Data june import prices straight ahead. Later much more on the Goldman Sachs results and lifting that dow component, other bank stocks this morning were coming right back. Just over a year ago, i was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Welcome back to squawk box on cnbc. Were second away from june import prices, dow up about 500 points Rick Santelli standing by at the cme in chicago rick, the numbers, please . Reporter yes our june read on import prices expected up 1 is up 1. 4 thats month over month. If you up. 3 of 1 which versus expectation is a couple of tenths better than expected. The you look at yearoveryear import prices we expect down 3. 7. Give economists tip of the hat its down 3. 1 lets switch lanes month over month import prices up 1. 4 yearoveryear down 4. 4. This reminds me of the cpi and ppi data when you take that yearoveryear perspective theres more deflationary to whats going on near term not as much and really its a comp story as much as anything else empire for the move july up 17. 2 up 17. 2. We were expecting 10 thats really a good number. Thats the best number going all the way back to, boy we have to go back a ways November November of 2018 remember two months ago we were. At minus 78. 2. Worst number going back to july of 2001 when they started creating empire. Joe and the gang i want to draw your attention to a chart. This is a euro versus dollar going back to early 2017 not quite there radiate but the euro is surging. If it takes out that little nub in march it will be at the best levels in virtually three years. Dollar index will represent the mirror image of that andrew, back to you. Okay, rick thanks for that interesting news this morning before we go to break, one quick stock to watch right now, thats astrazeneca. Shares are rising. Uk reported a Covid Vaccine backed by the company producing positive results vaccine being developed at oxford university. Vaccine is producing the antibiotic and tcell response that researchers want. This also is good news on the back of moderna news we just got. A lot going on in vaccine land and going to be pressing astrazeneca higher as well as so many other stocks that are so dependent on a vaccine coming. When we come back closer look at bank stocks after todays blockbuster report from Goldman Sachs. Well lkta to an analyst about it next. Squawk returns right after this the ambiguity. This moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Welcome back to squawk box this morning bank stocks are soaring after Goldman Sachs blowout Quarterly Report wilbur frost joins us with the latest Goldman Sachs has proven a theme that was emerging yesterday. Q2 is better for Investment Banks than commercial banks. Revenues well ahead of expectations most pronounced on the trading front. Revenue was 4. 2 billion up a massive 250 yearoveryear. Jpmorgan yesterday was up 120 citi was 70 higher. That increase looking soft 2. 9 billion revenue up 46 very strong jpmorgan up 38 . Citi was down slightly Investment Banking revenue up also worth pointing out their ce t1 capital ratio improved by 1. 1 to 13. 6 i want needs to hit 13. 7 by first of october they did see some of the commercial banking pressures emerge they grew that new part of that business from the relatively small base provisions rose from 940 million in q1 to 1. 6 billion in q2. Gold mapp shares up 4. 4 in the premarket pnc and usb have their numbers this morning they are moving higher usb numbers strong beats on both lines and less of an increase in provisions than forecast pnc is less positive on that provision front but nonetheless the stock higher the question for Investment Banks now, andrew, is can that trading performance be repeated in the second half of the year the theme even though usb is better than pnc neither as bad as wells fargo if the regionals can split the difference then perhaps some positive news to come out of that particularly relative to the declines we saw yesterday. All right great. Will, thank you for that report. Well continue this conversation and get some reaction to Goldman Sachs result well bring in managing director at piper sandler. The sustainability of these numbers coming out of the Investment Banks and the trading world were living in right now. Yeah. Theres really not much to not like in Goldman Sachs number the only thing is the Investment Banking which gets to your question we expect that have a record quarter. I dont think anybody is expecting these Capital Market revenues to continue weve got trading down, you know, 50 plus in the third quarter. We got things normalizing. Even with the normalizing earnings stayed pretty good going forward. The important thing for goldman they answered that question of dividend sustainability. The only one who established the feds expectations they virtually eliminated that gap today and thats just with one quarter. Give them another quarter they will clearly be over it. Good news for goldman dividend looks safe so Goldman Sachs cleared that bar. Jeff, Goldman Sachs 12 months out, what kind of price target do you put on it you know, a lot of it is going to depend on how the operating environment is Capital Market and credit matters. To some extent that will control. But assuming the economy keeps chugging along we dont have to get back to gang buster things hard to not be thinking of Goldman Sachs well see where it opens up this morning i want has a nice gain this morning. They have hat much of a gain coming as long as coming in to next year as long as we dont have an economic kind of catastrophe or bad situation develop. What is your level of concern come august, come september when some of the ppp and other stimulus efforts roll off and who knows what the next stimulus efforts will look like, what that does to the economy and specifically the banks thats the 64,000 question thats why most banks, whenever credit comes up, were not sure for management teams its unusual to get that kind of lack of certainty especially from somebody like jamie dimon thats the environment were in. I think as you look forward, yeah, i mean eventually the stimulus falls away but the stimulus isnt there to keep the economy supported long term. Its to get us through a crisis so lets step back up again. I would think we can come through this with credit losses and some problems but not anything worse than what were currently expecting. We saw some headlines about the vane this morning. If we get a vaccine that works that could open the door for these guys to be off to the erases i do like specifically Companies Like Goldman Sachs, where they are not as dependent on traditional spread lending your Traditional Commercial Bank i can see more Revenue Growth there. For traditional banks, tough environment. Loans arent growing that environment stays tough so, are we having a roll reversal here . All of a sudden for so long everybody wanted to be a commercial bank, build up their assets Goldman Sachs was building markets. Everybody wanted a big bank. Is now not the time to be a big bank, is that what youre saying if youre going to be a bank its time to be a big bank because scale matters more than ever if youre going a bank be a big one. For gold mapp its their traditional business their billed out of market was not so much to be a commercial bank it was a recognition as a Bank Holding Company they have a lot of deposits. They betterer and ratified return certainly, people are going to with results like this more banks will be thinking why are we not Capital Markets right is there a bank that you think is unloved that should be right now . You know a number of them i do think today will help Goldman Sachs a lot. I dont think Goldman Sachs gets the credit it deserves citigroup is another one valuation is too cheap versus what they put up for those that want to play it safer, jpmorgan is a Strong Player that would be a place to go to i would be looking Goldman Sachs primarily and then citi and jpmorgan after that. Are you running away from wells fargo at this point . Is there an argument to be made that its such a mess that maybe theres value there if they can turn it around i think theres value there its a matter of how long does it take to realize we havent known charlie sharp specifically hell get the ship righted there. So for a patient investor, thats a great franchise they are going to get it to work just whether you look out six months or even 12 months just really hard to see with much certainty how things will play out. In the banking environment in general theres not a lot of certainty right now. Its just even more so with the wells fargo. I think longer term, charlie will get something to work there. Great to see you. Appreciate it. Look forward to talk towing soon sound good. Coming up, were going to get jim cramers take on whats going on in the markets today. Goldman sachs. Moderna news, perhaps. That stock up now almost 12 points 16 . As we head to breaklook at the biggest free market garns in the s p 500 and that play has cruise lines and airlines well be right back. Welcome back to squawk box, everybody. If you are just waking up this morning check this out futures are indicated sharply high they are morning. The dow right now indicated by 500 points even after the 556 point gain i want saw yesterday. S p up 39. Nasdaq up by 46. Obviously a lot of that coming from Goldman Sachs this morning and then just some positive thoughts what may be happening in the Vaccine Market because of moderna news and other news we heard too. Facebook and sony are reportedly planning to increase output of gaming devices by as much at 50 . Sony plans 9 Million Units facebook is increasing orders for its oculus Virtual Reality head sets. To a total of about 2 million. In retail news pvh is shutting down 160 stores and cutting 1250 jobs in north america. The company citing impact of covid on apparel sales this company is behind Tommy Hilfiger and it affects 12 of its resource and save 80 million annually wow. Joe, thank you when we come back well get jim cramers take on Goldman Sachs earnings and modernas news. Investment in american stocks have been a great play that could mean some opportunity in areas that had success containing the pandemic. Investment ideas straight ahead. Squawk box will be right back. Welcome back to squawk box, everybody. Lets get to cnbc headquarters where jim cramer is standing by. Jim, i havent seen you in about a week and a half and, boy, do we have a lot of news thats come out today you have Goldman Sachs, yesterday you had jpmorgan, wells fargo, all of these things adding up, plus then you have the moderna news this morning and the market is on fire. What do you take away . I think this market has become vaccine no vaccine. The reason is because theres a core group of stocks that jump as soon as you get t you saw it last night, disney, norweigian cruise, carnival cruise, northwest, delta, its tiresome but those stocks jump to get the animal spirits going the main thing that happened today was that goldman was clean, wells fargo had total issues jpmorgan was terrific, nobody cared, citi was pretty good, they hated it, but goldman is clean. They make a lot of money, they have huge leverage, the book value keeps going up they didnt even bother to mention about apple but i think its doing well and the market isnt hurting them they have almost no loan losses soeven though they took a nice provision, you have a real good stock there and its been the one that has the lowest multiple, it could end up having the highest multiple in the next couple of quart sneers wow what do you think this tells us potentially about Morgan Stanley tomorrow Morgan Stanley has a great new model, especially with etrade. They are a transactionsoriented company, they have have few loan losses, personal finance for very wealthy people and they start with people who may not be healthy and they graduate up doing a lot in terms of people who work at companies and have a lot of stock, thats something that we all see every day when we see these ipos, theyre capturing that business. Goreman has a fantastic model. Will people give them credit this time . I think after goldman they probably will. The Loan Loss Provisions have been really big, goldman excluded from that, but if you look at jpmorgan yesterday, they took on 10. 5 billion in loan loss preventions which is more than they took on after the beginning of 2009. Does that give you pause at all about what might be coming does it just mean theyre being incredibly conservative . What do you think . Incredibly conservative take citi there was a big prediction they would have a lot of people who would take forbearance and then when we got to forbearance only half of them took t we saw the same thing happen people thought that there might be a need for forbearance at goldman, no, they dont take t i have to tell you that the economy is doing better than people think and i know its hard to get rid of to asterisk travel, asterisk entertain, asterisk sports, but as jamie dimon said, this is some kind of wild recession where incomes are up, obviously thats because of the gain in unemployment benefits, the extra money, but its just not as bad as people think. I know when i say that joe might be saying, hey, thats what ive been saying, no one has been paying any attention, but if you read the bank quarters, the bank ceo,are more negative than the people who use their banks. Although all of those measures that you were talking about, like the extra money coming in unemployment, that ends at the end of this month. You could very well see another stimulus check for 1200 that gets handed out to people. True. If those measures come to an end i guess the question is what do we see then thats what you have so much trouble stripping out from whats going on with the real economy versus whats going on from all the money thats been pumped into the system i dont know if you can separate the two. Its a bridge we have to hope that that bridge gets us to the vaccine, moderna gets us to pfizer because if we get to there then were going to see why this market is where it is and it goes much higher but we have the chasm cannot be so great and so wide. So if we got another 1200 and we started feeling that we have a vaccine that is definitely going to work. I know theres a lot critics out there, naysayers, but if you got then then you would say ahha, i understand why some of those crazy stocks funneled up and now lets take up united airlines, lets take up american, looks like norweigian is going to be saved. Is it a bridge too far or is it an okay bridge thats what were looking for. Excellent jim, its really good to see you. Missed you. Great to see you. I really missed you, becky thank you. Okay. Great to see you and we will see you in just a few minutes. Joe . Thanks, beck. Our next guest says u. S. Equities and particularly the nasdaq were the surprise of the year, but still favors countries that are seem to be dealing more effectively with the coronavirus outbreak for more portfolio strategies were joined now by fabian fabiana fidelli, a Portfolio Manager of emerging Market Equities at robico i think coming to us it doesnt matter where its from, we are all remote now youre global to say the least at this point lets just start with the United States equal weight, but within that you have some overweight and underweight groups and then we will move on, but could you go into that quickly for us sure. Look, we have been overweight in the u. S. In i. T. , in Communication Services and in health care. One of the criterias that we are looking at, however, is how close are we to a juncture point in the market where its going to be a good time to start rotating in more high quality cyclicals. Thats what we started doing we started moving to some financials, Higher Quality financials, a little bit more into some of the industrials and thats where we are at at the moment i think what we are seeing in the market in the u. S. Is that this has really been a bear market rally investors have filed into stocks that gave them the comfort of other resilient earnings or earnings that actually benefited from covid we are closer to the end of that, we are close to the end of that bridge, as jim was defining t and we are at the beginning and this also means that at some point you will have to have the rotation we still keep some powder dry and we also are really limiting ourselves to the Higher Quality cyclicals where we see some structural stories we have seen the bank results. But were definitely at that point where we need to start following the signs of a recovery. Its semantics but i assume youre talking its not a secular bull obviously its a cyclical bull because we have regained 42 or something, so just in terms of semantics, but you dont think its going to continue into a secular bull i think part of that has to do with you think at best its a ushaped recovery. And maybe even a w, although you think the chances are not great for that is that in the United States or thats global . Well, thats going to be global and some regions are going to do better than others clearly right now thats the reason for our call on north asia since actually last quarter where we said north asia, china, taiwan, korea is actually coming out better than other regions from covid and their economies are starting now better and so thats actually where we have an overweight, but the key here is not we dont expect the market even in the u. S. To collapse we dont think that there is going to be a wshaped recovery, its probably going to be a ushaped recovery. The key is, however, when youre starting to see an improvement in the market data you will most likely have a rotation some of the some of the reasons underpinning the large, mega large cap outperformance are clear. If you look at ecommerce penetration in the u. S. , it went from 5 to 11 in the ten years to march 2020 and then it went up to 27 in just two months so clearly something is underpinning those earnings. There is no reason for some of those mega caps to collapse, but we do see the potential for rotation also because the companies that would benefit from that improvement in macro are also the companies and regions that have been if you want left behind and valuations are more demanding. Im talking about north asia, im talking about europe, im talking about some industrial names, specialty material names, those are the areas we are liking. It was your forecast that you would see some emerging markets like north asian nations would outpace Global Growth and thats been correct and you think that outperformance continues and people should move om money there if they have the ability to do that. I absolutely believe thats the case i mean, if you look at particularly china, youve seen a significant rally like the market has gone up by 17 in the last two weeks, youve had a little bit of a softening in the last couple of days, but still very strong. Thats underpinned by a micro recovery and exceptional ability to deal with covid and the fact that the government there is really opening the access to the markets. So investors have a lot of Foreign Investors have a lot of ways to access the market, you know, there is a stock which allows you to invest openly on mainland shares starting from hong kong. Great. And you dont have any more quotas. Very good fabiana, thank you very much i just need about 30 seconds to tell people dont forget their taxes. Its tax day, fabiana. Thank you. Final check on the markets, get it postmarked at least or get an extension. Lets say it quickly here are the futures before we hand it over to squawk on the street. Up about 527 points. Becky, andrew, tax day tax day. Do your beauty do your patriotic duty. Done. Make sure you join us tomorrow. Already done, proudly. Squawk on the street is up next good wednesday morning, welcome to squawk on the street, im Carl Quintanilla with jim cramer, david faber live from separate locations futures are soaring after tuesdays rally as vaccine hopes return, this time its moderna, full phase one data, astrazeneca chatter in the mix as well then theres goldman, the biggest earnings beat in nearly a decade oil hits 41, looking past some of the dire fed commentary of the past 48 hours. Were going to make another ru