42yearold record what is that speaking with one band taking Live Performances out of the clubs into your living rooms it is friday, july 24. This is Worldwide Exchange on cnbc good friday morning, afternoon or evening welcome from wherever in the world you may be watching. I am brian sullivan. Thanks for ending your week here let us start with how your money is shaping up. Futures are lower right now. It looks like a continuation of steep declines the s p 500 snapping the fourday win streak. 85 or 85 of the nasdaq 100 dropping yesterday the socalled work from home trade getting hit hard citrix systems, zoom all falling back in the premarket with stocks down, what has been working . Gold gold just keeps running higher in fact, the highest trade up again today. 1,894. Well dive into the gold rise later in the hour. Lets see how the rest of the world is doing on this friday. For details, here is juliana in london good morning, brian we have a lot of red on the board here in europe as stocks opened up sharply lower. Stoxx 600 currently trading 1. 8 down we have bounced off the lows a bit of stabilization coming through. Certainly a weak start to trade. This comes after a weak hand over from asia where stocks took a very sharp move lower. U. S. , china tensions weighed on sentiment. Offsetting data. Uk retail sales accelerating more than expected pmi suggesting that the european economy has begun a recovery and has accelerated in july. Not enough to get stocks going wall street sector down 4 a combination of concerns around u. S. china relations and guidance from intel within this basket the semiconductors are taking the hardest hit. Brian, well head it back to you. Thank you getting to your top story. The growing standoff between u. S. And china dominic chu has that and more. Good morning to you china has ordered the United States to close its consulate in the city of chengdu. The city announcing it is revoking the license for the u. S. Consulate general at that facility cites the Current Situation between china and the u. S. For the particular move calling it something it does not want to see. This comes after the u. S. Ordered china to close its consulate in houston this week citing efforts to protect american intellect ubl property and private information from u. S. Citizens. In washington, d. C. , republicans are delaying the Coronavirus Relief mans. The agreement with the white house will be unveiled this next week that Means Congress will miss a deadline to extend the key unemployment benefit which expires this weekend with the formal policy ending next week President Trump is looking to cancel the florida portion of next months Republican National convention making that announcement yesterday citing rising virus cases in the state the move sparks a major kurn around for the president who pushed for the convention to be move from North Carolina with a fight over the governor over the state precautions there. A lot of movement over the virus. Ill send it back to you everything is going virtual thank you, buddy right now to your markets and your money we usually focus on stocks Pay Attention to bonds yields continue to fall. If you factor in an inflation, we have negative real yields meaning, you lose money by owning debt. How does this impact the markets and what is it telling us . Let us dive in we are showing tips which are not what you get at a restaurant these are treasury inflated securities what are negative real yields telling you about the state of the Global Financial markets right now . Good morning, brian telling us two things. One, negative yields are associated with the stimulus that will continue to push through the system it is anticipating more stimulus is coming. Not by the Federal Reserve and other central banks. In the end, this opening we are having now, theyll get inflation back to target and will bring rates down and take it low taking Inflation Higher thats the real reason the other part can signify that it is weaker you see the real yield is moving on that is a dynamic that is happening. Changing that and the real yields in china are up thats a picture of a mix of weak growth here and stronger growth in china. Yields go down when people buy bonds. You raise yields when you want people to buy bonds. We dont need that why are there so many buyers of u. S. Government bonds when they are effectively getting a negative real yield. You are right you do not get paid hear the coupon interest is low i think investors looking in it from one show i want to own that against the back drop. Two of these banks they want to buy bonds. Lastly in the inflation, that would emerge such that it would threaten for that region i think all of those play a role why people want to have a bond the economic deal in the United States shown uncertain we had this sort of at the start of 2012. Are negative real yields a warning sign or an opportunity i thinkthey are more an opportunity. It is about getting negative yields at a time of uncertainty. Those incentive advise people to look elsewhere whether china. But it is a i time to reallocate your savings to better yielding opportunities. I think thats where we are going from here. We hopefully get out of the virus situation. You mention international. Do you think foreign markets are a better bet than u. S. Markets stock markets. Do we buy brazilian or asian markets over the u. S. Market i think you should own both weve learned now that the only way to get it under control is to keep activity really slow on the ground we are seeing developing in europe and asia and the pmi developing you want to keep 60 in the morning markets and in the u. S. Market the u. S. Market has a lot of value from Technology Point of view there is more on the weak side ben, thank you. Appreciate your time as always something fascinating to watch on the bond side appreciate it. When we come back, intel may be your disaster dujour and well highlight the Company Executives buying up their own shares can you guess who the top insider buying stock is . ll tell you the as Worldwide Exchange rolls on you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading iredefined the wordng thschool this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Delays, delays and more delays do you see any team there . That is the delay behind the stocks on the move today dom is here now. Without delay now then, i will give you those delayed news pieces intel Second Quarter earnings did beat the forecast as economy bids on work from home computing power. Warning of further delay of the super fast chip. Watch those shares moderna is down after falling 10 . The company losing a patent challenge from a Vaccine Technology the company could overrule the ruling disney is postponing or delaying the release of mulan indefinitely they were hoping on the release of the fill to draw in crowds. And also delaying the next release of avatar paramount is pushing back the release of top gun from december to next july. Delays, delays we got to wait another six months to see the youthful tom cruise he doesnt age. Hes looked the same for years i need to eat whatever hes eating nothing hes going to be flying a camel by the time this comes out thank you. On deck, secretary of state targeting china in a fiery speech we are live with the latest. Dow futures are down 101 right now. We are back with more. Announcer todays big number, 555 billion thats the projected short fall nd state guj budgets due to the paemic states have already furloughed or laid off 1. 5 million workers over the last four months. Now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Welcome back there maybe in the midlevels live look at hong kong as they are closing out their week as well well show you that for a reason more to the developing story out of china the country ordering the u. S. To close its consulate in the city of chengdu after the secretary of state slams the Chinese Government saying the United States will no longer tolerate beijings playbook joining us live from beijing with more. Eunice, tough speech there from the secretary of state how is it being reacted to the reaction hasnt been very good the Foreign Ministry moments ago dismissed secretary pompeos speech saying it disregards reality and is full of ideological bias this comes after china ordered the shut down of the consulate in the city of chengdu and accused staff there of interfering with Chinese State tv theyve now set up a live cam outside that consulate 28 Million People are watching what is happening there with some asking, has the fire brigade arrived. Referencing the video widely circulated appearing to show chinese staff at the consulate in houston burning papers in open trash bins. State media now says the u. S. Consulate must close in 72 hours. A lot of speculation appearing on stad media as to why chengdu was chosen it looks the logic is that it is one of the smaller consulates but still relatively important from the Chinese State media perspective, they believe or say that consulate gathers information on tibet and strategic weapons in the area but has less impact on u. S. Business so the signal china is sending is that it wants to show the u. S. That it is going to meet it and go tit for tat it wants to manage the possible escalation in this relationship. If they were escalating, i suppose they would have closed the main embassy in beijing. Yes it could be in beijing or the consulate in hong kong, which was rumored quite a bit. Chengdu is a bit out of the way in the southwestern part of the country and seen as not as big of a move. Lets completely switch gears, we are going to flip it completely outside of the world of diplomatic disputes and heightened political tension, it is also a big day for china because Movie Theaters are opening their doors for the first time in six months you can go to the movies tonight, eunice. Will you actually, i already went this morning because the screenings started at 10 30 we went to a Movie Theater here to see what was going on first, you have to put your mask on to enter. After that, they do a lot of protocols we see regularly, which is a Temperature Check a lot of social distancing the regulations are at the cinemas that there needs to be mandated social distancing where people are in alternate seats. Tickets are no longer sold at the box office you have to buy them on line and pick them up at a machine. One of the most disappointing changes is no food or drink, so i could not get Caramel Popcorn, which is a bummer because i always do. Talking to people, they said they are just happy to be there. They really missed the experience the manager said he believes things are going to get better and he believes theyll be opened by october in full and could drag out into january or so he said it really depends on which movies will be playing right now, it is pursuit of happiness. We are going to be watching Empire Strikes back. Caramel popcorn . Mine is sour patch kids. You like Caramel Popcorn at the movies and dots. The dots will leave the gummy. And you can enjoy that for four days you wash it down with a milk dud. There you go. Movie snack premier. You dont brush your teeth, you can enjoy that snack for like a week take care. When we come back, a highprofile hearing on capitol hill featuring some of technologys biggest leaders stopping before it even gets started. Well tell you what ppedhaen the dow is down 107. We are back after this its pretty inspiring the way families redefined the word school this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. China forcing an american consulate to close futures are lower. If something happens, the nasdaq will end a record streak well call this the trade. Metals may be the best moneymake bet right now this is Worldwide Exchange here on cnbc good friday morning. Welcome back i am brian sullivan. Not quite half way through the 5k hour. 5 27 in the morning. Futures are down look at the nasdaq, they are down more than the dow on a lesser price looking like it could be a rough day for Technology Following steep declines from yesterday. Snapping the fourday win streak the nasdaq down 8 the nasdaq 100 stocks did fall in the socalled work from home trade getting hit hard in names like citrix, zoom and microsoft. Zoom down 6. 6 now nasdaq futures pointing to what could be a rough day for Big Technology outside of stocks, what has been working. Gold gold keeps running higher. More on gold but it is up another 3 and change right now. As big as amazon and Online Retail is. Did you know that a tiny percentage of retail sales online spending is oneeighth of what we are spending in retail we note amazons, it is their world. We are just living in it names like etsy and others may continue to run . It feels like we buy everything on line and we are so comfortable. Groceries. Automobiles happen on line these are huge categories that havent changed yet. Beyond a more Broad Electronics and Clothing Store people are familiar with buying on line. The big debate we dont know. We know americans love to shop whether online or in person. Whether this shift will continue when things are completely reopen and the pandemic is gone or is this a permanent shift because we realize we dont need to go to the store we realize we are desperate for something to do. What is your take on the longer term play here a lot of these habits have changed permanently. Going back to groceries and ordering online. A lot of people want to see their food and pick it out they are not sure what would show up if they order on line. The stayathome economy, people dont have a choice. They set up a cart and order it and when their food arrives, they see it is a pretty good service. Youve broken that line. Set up your carton line. That opens the door for a longer term shift of just hitting that reorder button particularly among the older generation, they are more vulnerable to covid19 and a little less tech savvy once youve set up that cart and had the experience, it is so much easier to repeat that before you had that initial experience yes in computing, ive said on the air for years, i dont like the term cloud because it implies there is nothing native. Hot mail was Cloud Computing we should just drop the cloud and call it computing. Nobody cares what i think. You think there are companies that are in that cloud shall hybrid mix twilio, shopify. Those that dont get the name like amazon and should these are companies powering and able to work from home we can Video Conference and message remotely we can download and process. It is a team transitioning to the industry when people realize how Many Companies are in this space. Theyve become Consumer Staples at this point. The it is very hard for a business to look at a Cloud Computing service and say we are no longer going to use this service. When it is the work from home economy and in this business environment. These are Growth Companies and have characteristics which makes them very valuable right now a pleasure to have you on well see you soon lets step out of stocks, to another part of the market that has been flying under the radar. That is gold if you are not paying attention, you should be. Gold is nearing the high and should break out up 24 this year not just gold. Silver is up and keeps running this week, silver is on pace for the best week since 1987 when the First Top Gun movie came out. Lets bring in the executive director of Precious Metals research what is behind gold and silvers runs it is a tremendous safe haven buying supporting gold and silver prices. Really seeing negative yield turning boosted by the fact that we continue to have a weaker dollar Inflation Expectations with continued status and unprecedented amounts have all created almost a perfect storm for both gold and silver prices. That investment demand has more than offset the physical weak market does gold technically or others look like to you going to break out. Ive been looking at a lot of research ive got smart people saying gold will go to 2,500 or 2,800 what do you think . This is mostly skewed to the upside we may see some temporary profit taken. If we look at that macro environment, we can see gold prices and the alltime highs set off the Global Financial crisis given the unprecedented stimulus and the fact that we have Interest Rates to remain low or negative on a global basis, it creates an environment where we could see prices remain at an elevated level for a long period of time. On this show, we talked about the Exchange Products and how theyve altered the market for good or bad. We buy these passive investments. You have the same thing in Precious Metals. How has the demand for those been do you think outside of backing up a brinks truck, how the ease of buying and selling these Paper Products if you will on line, how that has impacted or scewed the Precious Metals market the price in the market weve already surpassed and the previous record was in 2009 where we had influx of 246 tons. The growth is really strong and interesting that investors prefer to hold physical gold in the current environment rather than the initial exposure. Investors this time prefer to hold the physical metal. Both india and china have been weak in the past quarter as we compare this to last year, demand from india and china was around 400 tons. In q 2 alone, it is 430 tons it is more than offset that weak physical market. Are you still advising clients to keep buying silver and gold this has caused a round of optimism always a bounce back in real yields that could see gold prices correcting. We would see these depths as buying opportunities we expect those to surpass alltime highs. Standard charter. Silver and gold. Thank you. Take care. Time now for something you are only going to see here on wex. Weekly insider segment we highlight insiders with the most of the stock three names. Insider buying does tend to slow around earnings season often for regulatory reasons stock three, a board member of Charles Schwab buying just over 100,000 of that stock. Next up, fedex board member buying 360,000 shares mr. Ellison is the ceo of lowes. This is his first insider buy as a board member of fedex. Can you guess the top insider buyer . Guess group. Snapping up just over 100 billion worth of ges those are your top three insider buyers noting they are not seeing a lot of buys from retailers watch that guess buy that stuck out to them. Theyve tied it perfect. Insider buying stocks have returned more than double the overall market in three months one of the reasons we bring it to you exclusively reinventing your concert experience one living room at a time the way one band is shifting other top stories on this friday the house expected to postpone a highly anticipated technology antitrust hearing with ceos of facebook, amazon and apple delayed due to the service of late civil rights congressman john lewis according to documents, litigation is expected the nba has appointed a new chief people and inclusion officer. Boris stewart will be overlooking interaction. One of 31 black people employed by the league in a position of Vice President or higher we are back after this welcome back Action Figures and airlines. Something else in common back with more stocks to watch shares of mattel surging. Q 2 results better than expected net toy sales decline 15 . The overall success of toy industry has seen. Shares up about 8 shares of sketchers up big also this morning foot wear company topping with a loss of 41 cents a share on revenue of 31 million sketchers saw a more than 425 surge in e commerce. Shares up 3. 5 premarket. Not feeling the love today, Airline Stocks specifically american and southwest. On word the two are further trimming their travels southwest says things are picking up and demand for travel are weaker shares are up premarket southwest down marginally. Can dont travel if there is nowhere to go and nothing to do. Thats kind of the bottom line there. Raise your hand if you are missing live music sadly the live music and concert industry is on pause it will come back but right now this business is on hold. Musicians are going to play and they are adapting. Grammy nominated band under oath are bringing performances to fans in their home we are joined by the bands guitarist and coowner of the coffee roastry king state in tampa. Thank you for joining us under oath, what are you doing to get people to tune in to your live concerts . Are you charging are they watching for free and is there a way to gauge . Thanks for having me, brian getting me up early. Feels like im on tour trying to catch a flight right now, we are doing a live ticketed Concert Series called the obser serve torry we are playing our top three albums we came up with the concept of trying to not replicate a live show but bring a new experience where it is in the round you you are seeing back stage, on stage and different angels to try to add and replace we wanted to give a completely different experience it has worked out well it has been a really cool way to engage and stay busy a lot of people say we are setting the bar and in a way we are. I think a lot of bands bigger and smaller will get creative really taking off and going crazy here im excited to see one thing about crises, there are people that figure it out youll never mirror the experience of going to a live concert. 100 . The people, the vibe. But a lot of people of a certain age with kids and jobs cant make it out. Have you talked as a band that down the road maybe down the road that there is a new model here for folks like me that cant get out and maybe youll continue to do this along with going out . I think thats the concept we are seeing a global audience people watching or hitting us up people and their kids. This is something we are doing in this crazy time that has proven to be an added source of revenue and Business Model it will never replace touring but there are a lot of regions like south america, europe and asia to realize we can integrate the live stream, when we go back to touring and allow everyone to look at the best version of ourselves. Thats a whole new Business Model. Sorry to jump in. I want to ask you about king state. Often called one of the best breweries in the United States it is a cool spot. I suppose you are still takeout only as a Small Business owner, how are you doing on that side florida has been weird. We had a lot of cool accolades last year. Right in time for all of this to hit. We are at about 30 capacity indine in. No bar seats but it has been good same with the underoath thing. Chaos breeds creativity. Thats where we are at good use of an old gas station, if i am not mistaken. Yes on 520 east towards nebraska if anybody wants to come by i hope so thanks forgetting up early thank you, sir. Appreciate you glad we could help him out getting up early like old times. A record streak for the nasdaq could end the day futures are down big after yesterdays big losses we are back after this the nasdaq is on a record streak went 49th straight day without back to back losses that broke the prior records from may 1978 it has not closed lower two days in a row they could extend that record to an even 50 the record will lower today by 49 nasdaq futures are down a lot more than 1 the nasdaq has been the power maker in the market for years now. More on a number basis than the dow futures. Are you getting nervous about tech i am. One of the reasons you see the Market Selling off right now there is some escalating tensions we could see flair ups in big tech, some of the names in market, they all report next week so far, the big track record has not been that great. They havent done well look at netflix, they had a decent quarter, stock tanked microsoft dragged things down. It seems like a lot of these highmomentum beloved tech stocks are running on fumes right now. The end of the techs big run has been called and failed many times in the past. Anything right now that implies to you or what you are looking at that maybe it is it is time to take some profits . Is. I wouldnt say this is the end of big tech. It has just come so far the market is up they have been crushing the market all of a sudden, things are changed. Im not saying you need to bail on big tech. Looking at all of those portfolios quite a bit smart to look to trim the burden on these positions for tha the portfolio take a look at a company like twitter every other week there is bad news about twitter the Companies Getting hacked or the tweets that pauses a pull back weve been out of the stock for a while. Back in about a month, month and a half ago it has been very well for the users, faster than ever. You look for the Companies Like that and buy them on the pull back looking for an opportunity friday leaving for the name and names a real pleasure. Have a great day good weekend that does it for us here on Worldwide Exchange. Dont go anywhere. Squawk box is next futures are big. Will be a good friday. Well see you next week. Have a great weekend take care, everybody its pretty inspiring the way families redefined the word school this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Good morning, pay back for houston. Beijing retaliating overnight and ordering the u. S. Consulate in china well take you there live. The tech pull back this morning after that staggering runup since march. In the dow, big movers come up baseball is back well take a closer look at sports. In 2020, squawk box begins right now. Good morning, welcome to squawk box. Im Andrew Ross Sorkin along with joe kernen. We should be playing just the two of us. Well both carry this whole show somehow. I think it is getting tougher and tougher for someone to sit in with us toda