Blowouts record highs for apple and fable. Lets dig a little deeper. Amazon is built for a pandemic they typically pour money back into the business. They made a big bet on Online Grocery. Nay have been preparing for a shift in spending habits and it just so happens that occurred overnight. On the Earnings Call one analyst joked that does jeff bezos no how successful amazon is same store pick up, a number of whole food stores that can pick up deliveries on triple this quarter we are adapting and looking at something that changed and created things for the new vooirs, especially the entertainment area alphabet is more affected by the pandemic you can see the shares are under performing the other tech giants this morning you cant help but note that while amazon is known for groceries and advertising, they are smaller projects, they are still losing money lets bring a closer look at the quarters amazon getting a number of price targets at 4,000 that would apply a market yeah, it certainly has a chance what was surprising is the beat and relative to expectations amazon beat the consensus by 8 billion. Despite 4 billion in covid costs, results were led by the covid fuelled commerce acceleration they grew over 50 , that was versus 20 last year aws advertising subscription segments were strong the guide was better as well we did raise a long Term Forecast price target to 4,000. Demand signals are firing off across the board and were also getting the margins despite significant investments. I mean lets hope this is a problem we have to deal with, but assuming a breakthrough in Public Health technology, medical technology, something not as dramatic as a vaccine but some their prapeutics. How much of it sticks . One thing they called out is growing the fulfillme menment infrastructure by 50 . This is an incredible signal for future demand. To start the year amazon had 275 million of fulfillment space over the last 20 years how do they add 140 million square feet in a calendar year that is bigger than their entire footprint. They got lucky or they made their luck the move to prime one day last year as demand rose. But as we got into 2020 i think they were saying that they had expected to expand the fulfillment infrastructure just because of the prime one day demand this is precovid. And the Fulfillment Centers are adding more to prime one day and they called out the Online Grocery sales tripled. We have seen in our data a doubling of Online Grocery users in the United States so there is a lot some of these things are permanent and in really big markets like groceries. Food and beverage alone is a 750 billion u. S. Market a lot of competition in that space. I want your thoughts on the alphabet quarter as well what do you make of them what does it mean for the second half of the year we got the Digital Advertising score card with all of the Companies Reporting so Google Search was down high single digits. Management indicated it was flat in june. Improved in july it is really structural, right they are Google Search is very broad they have exposure to travel and auto some of the weaker sectors, it is structural, a function of scale, and as you look across the platforms, because amazons business was up 40 . That is all prujt surgoduct sur. Facebook was better, too growing outside, and that was driven by performance based advertising. So google was around where we thought it was going to be and we think it will improve as we go through the year. Given the structural nature of their search business it makes it atmosphere do able. Thank you, carl meantime lets go to apple that is adding about 150 points to the dow this morning. Josh lipton spoke to time cook last night it was a decent quarter, that is how tim cook described it to me, a fresh record high that has now climbed 40 the iphone returning to growth and blowing past the streets expectations tim cook telling me the iphone 11 is the most popular iphone. We had a great launch in the quarter. It was also very strong. We had a very nice uptick on a year over year basis on switchers that we were very, very happy to see. And the iphone se is clearly helping with that. That gives a boost to i pad saling we see them picking up share we saw the biggest pick up than we ever had if is the combination of those two things coming together that at the same time are producing those results. Demand from the Education Sector is so strong that he is supply constrained with macs and ipads. I asked him about Business Trends over there. They grew 2 in real dollars we saw china come back, a big increase, he said, from where it was in the quarter before. Apple remained open, they didnt have to close like they did here getting the stores open again was key. We have about 75 of our stores open in the world. Carl back to you josh, great summation of what we heard last night and continue to look at josh leadershipton on apple more on apple, good morning, good to have you thanks for having me, carl. Josh pointed out a strength in iphone, but a small delay no guide for the second contective quarter is enthusiasm tempered because of that . I dont think so, carl. For the September Quarter i think it was largely expected when we previewed. We taught that the delay of the iphone would lead to a situation like this. What were really seeing is a deferr deferral you might get the first 100 billion revenue quarter for happenle in its history i think the timing thof is less consequential. You get two benefits and next september, and the launch of another phone, you see them strike thatle both of those. And i dont think it changing the fundamental story here what it does is reinforce the fact that you have, in the last ten quarters apples overall revenues went up so the company can grow, they are doing extremely well we have a company now that is e decoupling from a iphone sen strike story to something broader. Hey, it is deirdre. I love that cook call itd a decent quarter ing cook mentioned the opportunities to josh, and where does it stand . For its education products. A huge opportunity that youre seeing. The Younger Generation is really way more apple centric than the older generation and this plays very strongly to apple. These are kids growing up with apple products all of these that are now being used as tools at home for driving Education Needs and apple is under penetrated. If you look at the market shares to apple, relative to the total addressable market, it is still ty ti tiny so there is just a lot of opportunity for share gain and the demographics are truly in their favor. Education is one big opportunity. I think enterprise is, you know, they made some smaller references, but enterprise is another opportunity for apple. You still have a company that is a massive product lineup they have a pricing umbrella that if they want to they could flexion to some degree and they could become even more competitive in the marketplace it is a tremendous opportunity for them yeah, we never even got to the integration. 6 , almost a 7 ingraduatitegra, hard to ignore pelosi and meadows bringing us up to speed on the progress on the hill. Yeah, dualing briefings now on the leaders of both ends of pennsylvania avenue. Bad news if youre someone that want as deal here in terms of stimulus spending. Both sides are accusing the other of not being serious here. Mark meadows just came out to the White House PressBriefing Room to talk to reporters about this nancy pelosi also speaking to reporters. They are trying to hold the line on the 600 additional bonus on spending meadows saying they have not made any offers in the last few days the good news is if you want to see a deal here they are saying they will continue to negotiate today and in person tomorrow negotiations will continue through the weekend and guys as you think about the incentives on both sides here, they both have an incentive to get a deal here the president said he wants that Unemployment Insurance to continue he wants an eviction resolution to be in place, and democrats have the additional incentive here of trying to get all of the other elements to this deal that they want in a larger package. So they are hoping to get a better deal for the aide to the states and the other things they inspect this deal. Back over to you guys. Thank you, we will certainly watch it carefully we are seeing two different tracks in the economy right now as those benefits are set to expire today we also turn back to the tech earnings going to more now. Julia . Well, facebook shrugging off the effects of the boycott that is also consistent with last quarter and a number that facebook expects to continue through this quarter Mark Zuckerberg reiterating that theyre not reliant on big businesses that is down from 20 of its revenue last year. Small businesses are the biggest part of the business, not the largest. We want them to be in our platform, too. But if you as investors or analysts are thinking about our business, the accurate way to think about what we do is that were in the business of serving Small Businesses and they will go towards enabling those folks to grow zuckerberg stressing e commerce saying theyre not going to take a cut of the e commerce sales, but they will use it to generate more ad revenue. If you think about what we have done for a long time we exist in many ways at the top of the funnel and we help drive people down, but were a great place for discovery and an increasingly were able to drive people down the funnel all of the way through the purchase shops help do that on thetizers side, but they also help Small Businesses with free online tools. As for concerns raised by the boycott about hate speech, sandberg saying they dont profit from hate speech and that theyre working every day on these issues i do think it is worth noting these earnings come on the heals of the boycot organizers calling to expand the beyond july and the u. S. Julia, thanks for that. Lets talk to john who raised his price target this morning. Help us explain, alphabet and goaling, both Digital Advertising, power players, why the different results . Thanks, google has exposure to travel and highly impacted verticals. And google advertising is in silos. But if the demand falls out, they could be more highly impacted with facebook everything flows through the news feed. It is like a virtual small so when travel falls out, a Gaming Company or an e Commerce Company is selling homegoods and they can step in so the impact to facebook can be lesser because of that dynamic so john, the tale of the ad boycott that we talked about, if it is not a story for the quarter just printed, to what degree was did bleed into this this quarter i think there is a lot of brand advertisers that are weary right now. And i think youll continue to see that maybe through the election as different conversations happen the good thing for facebook is so much of the business is driven by smb. If brands choose to make decisions like that facebook is not as impacted as someone like a twitter that just relies more on the brand tids iadvertising. That is why you saw a bigger gab between facebook and twitter an facebook and google. Hey, john we have been talking a lotabou all of these tech giants diverse if ii diversifying outside of their whole. What is behind that and do you see it being more important in the years ahead . Yeah, i think it is revenue that would have been bigger growth if they had more devices. They talked about a shortage because there is a sudden demand for a gaming system. Other consoles have been sold out as well. I think they sold out of some of the vr headsets. I think that is more of a two, three, five year and i think has a lot of eco system value. If they become a bigger part of peoples day to day lives, but for now i think it is a way to work with a really loyal group of gamers. It has been a good sign and the content is Getting Better and better facebook bought up a couple small studios with vr content. John, thank you for your insights carl, over to you. I think 15 minutes, how many trillions of dollars in market cap did we just cover . Yeah, well they added 200 billion last night we know how quickly the numbers can change nap was a good a block. When we come back can your smart watch help you manage the early symptoms of the coronavirus . How wearables play in all of this with joanna stern of the wall street journal. This has been. Its unexplainable. These last three months, i have been wondering about the future in many ways. Im not the only one going through this. Some of my dearest friends, their businesses are still closed. Theres always peaks and valleys. Even through this pandemic, were all in a valley at this moment. But the one thing you can always know is that theres a peak on the way. Fit bit and apple in the ring, people are seeing if theyre profiting more, their temperature is high. Tell us what you looked at i have all of the things on i have apple watch, fit bit, r garmin, aura i wanted to see if they could detect symptoms or warning signs of covid19. Theyre all working on that. They are doing research on if people who get covid can spot it early. Can they look back at their data and see changes in hart rate, changes in sleep, respiratory, and see those spikes, create algorithms, to warn people if they may be subject to getting covid. Have you been impressed well, the good news that i dont have covid in fact i wore these for three weeks. I gathered a ton of data i show itd to a doctor and he was very confident was a looking at all of the data that i didnt have covid i got a swab two weeks ago to make sure i dont have covid im impressed that they all told me i was pretty healthy. The big challenge for these now is going ahead is regulatory can they make the warning symptoms that they roll out. Theyre looking to create a Warning System that it would give you a green, orange, yellow, or red silgal for how youre looking, how susceptible you are are to being sick or having covid i wonder what happens when you wear them all at the same time do they implode. Do none of them work im being facetious there. Well know in a few years if the radiation has affected my brain. Yeah, the could wanter effect of keeping you healthy you just said that based on all of the data that it was tracking in terms of your health you were covid free, is there danger that people could rely too much on the devices and not get the proper testing absolutely. There is a lot of big risks. It could be incredible and incredibly scary one is putting too much trust in this the doctor that i spoke with from the Scripts Research institution said that this is all of this wearable info is only good when we have the at home testing kits. If your wearables are telling you something, something that you may be feeling, it could help with a symptomatic blae behaviors, then you would take a test it strikes me that they can track your health, give you indicators that you may have covid systems, but looking at Contact Tracing and technologies role in that which has not got off of the ground. Apple and google supposed to have an unprecedented partnership, how do you reconcile that that is a great yes i thoug great question. How can Technology Help in this situation. It was a lot of team, right . A lot of people promising things tells us that it will fix everything, and it just didnt, or it hasnt, and i dont have much faith that it is going to wearables i felt the same way. Everyone wants to do what they can to help. Are they just blowing steam. Are they getting more tech will save the world type of markets from them. But it is interesting when you talk to the academics, the medical researchers, how strongly they feel this could help in the future they had been working on a lot of this for detecting flu. The research had been there. I think it is something we all need to be skeptical of. I expect apple to make make more inroads. Talk about having a pulse oximeter i expect this to become a marketing line, being something bigger in the tech industry, but we have to be weary of what youre saying. But i guess you would tell consumers that even though it is powerful it is essentially another layer, right in addition to the other things that well have to do to take care of ourselves. Is that how you see it absolutely. And one of my biggest fears, too is will our health care be dependent only on people that can afford the next smart watch . And this will be another tool . The tool box yeah, it is a great look at it for something that is new and probably confusing for some, joanj joanna, but it is always helpful when you give your take on it. Good to see you guys. Carl in case you were wondering, i wearing zero wearables. I can never seem to stick with it for more than a few months. Time now for your update thank you, deidre in florida the daily covid death count has hid a record high. The fourth day in a row that has happened deaths have increased by 257 and it is bringing that states total to 250,000 in the u. K. Covid infection rates are increasing delaying Boris Johnson to push back the next stage of reopenings by two weeks. Reports say several cardinals have now tested positive for covid forcing the postponement of tonights game against the brewers. In italy proof that it is never too late to learn. A 96yearold got his diploma after finishing first in his class at the university of pa la larmo making him the oldest graduate at 96 years old congratulations to him llee yi sou in an hour, squawk alley returns after a quick break. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. We caught up with the president of g k vaccines to talk about that deal it is the largest deal yet we talked about the president of vaccines about the agreement. The particular vaccine is a stimulant that allows you to potentially use a smaller dose of the vaccine which in a pandemic is critical because it is all about capacity and how quickly you can get doses. So a smaller dose means more people will get treated. Also the history of this because it is a proven approach, it takes longer to get goo the clinic, it could probably have broader efficacy one thing were very interested in seeing is how the vaccine performs in the older population we know that some of the technologies may struggle to create a reaction there. Thats why we feel this particular approach is so important. We have a higher probability of success, but there is work to do some of the vaccines in development will fall over and fail and i think what we need it multiple vaccines to succeed and we think we have a good strong chance of doing that three human Clinical Trials this week. Astrazeneca planning to start in weeks. Johnson and johnson planning to start in late september. Guys mega, thanks for that a quick note as we go to break, wednesday, august 12th, join the cnbc virtual play book summit. Join our guests and it is all about Small Business owners being provided a path forward. We will be right back. Stay with us welcome back, joining us now is Michael Lippert also chris wretsler. Nice to talk to both of you. Let me start with you, michael the four companies that reported last night, they now make up some 18 of the s p. 40 of the nasdaq 100. What do you make of the risk of that and can they continue to carry markets higher for the remainder of the year given their also facing so much Economic Uncertainty i think the uncertainty is key, right investors are focused on the trends they can see, and project just one step forward and given the situation that were in with covid, things like dijdi digital media, things like e commerce, theyre driving growth right now. So i think that will keep those companies very healthy and when you really are seeing is trends that have been going on for a decade so to see amazon have 50 growth this far into their life is incredible because e commerce is needed until they can clearly see through the end of covid i think they will stay with the stocks that are working and the themes that are working chris, all in one week it was remarkable to me to see one day lawmakers ire against these, and wall streets love affair with them and they really blew a lot of the expectations out of the water that were already sky high what do you think the risks are for not just the second half of the year, but perhaps longer in the future when it comes to regulation were in an Election Year and i dont think there is much risk to the companies at this time. I dont think much will get done in dc. Well probably get more stimulus but with regard to those Larger Companies i dont think youre going to get any legislation against them at this point in time what is interesting is that our koeng is going after some of our really Top Performing companies in the country and the Chinese Government is supporting those that are competing against them. So quite frankly i think that, you know, there could be moderate regulation longer term. But we, as americans, should be supporting our Great Companies and so that is where, as michael mentioned, these are longterm Growth Trends at these companies. So for longTerm Investors be patient and i think they will continue to perform very well long term. Michael, it is easy for the dollar story to get lost, but it is set for the worst month in a decade they say it is a weird cycle top. It is a positive or a negative as i said before, we really focus on longer term secular trends we dont worry about the shorm term, the dollar, so we are looking at key trend thats are proving to be resilient today. Those are things like digital media, work from home trends, these are the trends that were foe focused on fair to see the results from last night, the long awaited rotation of value, is there any doubt in your mind that if it were to come it would have to come on news that is basically laying to rest any question about Economic Uncertainty i think you have to look at what are you considering value i think there are some area thats are clearly more value and value for reason an area for a longer Term Investor that we spend a lot of time is within the supply chains that are supporting these big names that reported last night so if you can dig in and figure out where theyre taking their businesses in the next couple years with regards to improved infrastructu infrastructure, data centers, new materials going into semiconducto semiconductors, those are all great areas for investors. And were still fine buying opportunities there, but you have to buy them right and earnings season tends to provide opportunities and we can be the buyer while others are forced to sell or are unhappy with the quarter. So that is the opportunity that we see here and how you can play off of what we heard last night. Hey, michael we heard from the giants in the coming weeks and we will hear from the incumbents, what do the four horsemen of tech tell you about what we will expect for them is there room for them to out perform as well . I think there is plenty of room we talked about the themes and themes that are invited in amazon, google, facebook, or apple that is where we place a lot of investments we have investments with work from home. Pinterest, snap, are also players in social media. You have seen they are very, very successful. So we need to think about the themes and the best places to invest, its easy to talk about the big four horseman but were investing, in a sense, all over the market cap against big powerful this theme thats are not knenew. I think they will continue, just at a faster pace because this crisis as accelerates. Michael and chris, thank you for your insights today, have a great weekend. Thank you very much michael mentions pinterest, up 32 this morning. Global maus up 49 lets get to julia on that pinterest shares soaring on better than expected spots the company is saying that ad revenue grew 50 in july and they anticipate seeing 30 growth in the third quarter. But seeing Significant Growth in july sounds like two main factors at play there, carl. One is the fact that user growth is faster than expected and that theyre benefitting from the ad boycott saying this is an opportunity to educate brands. Carl, back over to you wow, what a reaction to news that kind of got lost in the shuff shuffle. When we dock back here, well take a look at the month gainers. Micro, tesla, docusign, idexx, intuitive. Back in a moment when we started carvana, they told us that selling cars 100 online wouldnt work. But we went to work. Building an experience that lets you shop over 17,000 cars from home. Creating a coast to Coast Network to deliver your car as soon as tomorrow. Recruiting an army of customer advocates to make your experience incredible. And putting you in control of the whole thing with powerful technology. Thats why weve become the nations Fastest Growing retailer. Because our customers love it. See for yourself, at carvana. Com. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Welcome pack, the u. S. Has seen more than 15 of the ipos come from china. We have that story i love this story. Hey, i know, it is right near a sweet spot here, it is a pretty surprising fee nom nonhere against the backdrop of an ongoing trade spot. Chinese companies are coming in droves and represents 15 the highest proportion in a decade that is according to data. They have raised 4 billion. A jump up 60 from last year the latest of these is lee auto that generated a billion dollars from an ipo yesterday. That stock surged 43 in their debut. In some ways this defies logic the recent ipo a became embroiled in an accounting scandal. That has been enough to turn off american investors and scare Chinese Companies from enlisting in the u. S but sources say they seem to be ignoring the head winds. W why . The u. S. Market is seen as iddel because theyre willing to fork out for the capital right now. To be sure some of the larger proeshl listings in the pipeline are likely to take place closer to their home bases. Sources say there is ongoing dialogue about pursuing ipos in asia no final plans have been made yet. Certainly difficult to see tiktok list here speaking of ipos, vitale nasdaqs morning. Opening trades is surging 60 in its debut. Mp othspeak with the ceof at coany next stay with us when you walk into an amazon fulfillment center, its like walking into the Chocolate Factory and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. But when we first got these, we were like whoa [laughing] my threeyearold, when we get a box delivered, screams mommys work mommys work. With this pandemic, safety is even more important to make sure we go home safe every single day. 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With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, us money reserve is one of the most dependable gold distributors in america. Largest producer of pasture raised eggs in the u. S. , vital farms going public on the nasdaq ticker thats a 67 gain at the open p joining us is the ceo. Congratulations. Thanks for being with us thanks so much. Appreciate being here. I cant decide if the strong reaction is a function of the humane Business Model, the Sustainable FarmingBusiness Model or the fact that food inflation has given industry a ton of Pricing Power well, we have been on a mission to bring ethical food to table since 2007 we love to think of it as an endorsement of the practices we bring to the u. S. Food system. You got the number one branded whole foods and sprouts. Number two brand at kroger at target is it all retail is there any food Service Element in there, and if so, how has covid turned that up definitely heavily weighted toward retail and we certainly seen the tail winds in terms of order volume from our Retail Partners that will retails have. Our Food Service Partners are very high Quality Partners and their business has remained strong throughout this challenging time i was looking for your s1 and the first item listed under risk factors is the pandemic and how that might affect your supply chain. It points out youre depen dent on one facility and if that had to close or scale back, that would be a major problem for your business. How you mitigating that in todays age . People are at the heart of what we do before midmarch when things really started to escalate in tus, the u. S. , we were working hard to keep our people safe. It all starts there. Everything from ppe to social distancing to staggered lunches and breaks we have done everything question to help ensure our people are safe one of the results of those efforts has been relatively little disruption relative to some other companies we read about. We have one facility its in terrific part of the country. We love springfield, missouri. Russell, your shares having a nice debut up more than 60 give me a bit of color on what the road show waslike, the virtual one. What kind of things were investors asking you it was, first of all, i understand that i should be thankful for virtual road show being able to see so many Great Investors in such a short period of time and being able to go to sleep . My own bed was something to be thankful for they understand its a long game and were still in the early chapters of it i would love to consider the performance this morning as an i understand indica indicator o strong support were just starting to have an impact on the u. S. Food ystem. You dont own the farms, right, with which you partner but the farmers operate under specific guidelines. Can you help investors understand how that model works . Its an incredibly important part of our mission and what gets me out of bed every morning. To help ensure that small family farmers in this country dont have to lose at the end of the movie. We want small family farmers to have terrific economic opportunities. E love partnering with them. We have had no issues attracting and retaping some really high quality farmers. Sort of the original entrepreneurs in this country who are very happy to do the extra work required to meet our high standard. We combine that with internal resources. This yeerp has reminded people of the importance of the integrity of the food chain. Congratulations on a nice open hope youll come back. Thank you so much appreciate it. Have a good weekend thanks for the help today well watch for progress over the weekend. Lets get to the judge welcome to the halftime report. Front and center, the tech take off. Apple and facebook hitting fresh highs. Amazon also surging after its own blow out numbers we debate how high the stocks can fly with our investment committee. Lets go take a look first at stocks nasdaq in focus after those earnings today nasdaq higher by 52. Everything else noha