Storm here now insurers bracing for damage claim as millions remain without power along eastern United States it is thursday august 5 on cnbc. Good morning, good afternoon, good evening and welcome from wherever you may be watching thank you for joining us good morning there are so many big stories to get to everything updated it is looking like this one could be too look at that futures could be higher across the board. The nasdaq making a record fifth straight positive day and 30th for the year. Nasdaq up 32 year to date not just technology. Retail surging the sector etf xrt hitting a high since back before the pandemic stocks and bonds go up yields hit a record low. Closing at a record low 0. 5 we are at 0. 525. Truly amazing. Mortgage rates could tick lower again. Gold stays red hot closing above 2,000 for the first time in history. The new nominal record in the past 13 for gold we have a good market stat in the rbi that you can wow your friends with at virtual cocktail parties. Two stocks that can be on your radar. Disney reporting results after the close. They missed on expectations. They took a 3. 5 billion charge as florida and california parks remain closed. But they announce they have 60. 5 million paid disney plus subscribers. This could be our rbi but it is not. We are watching shares of apple. Just a few Percentage Points away from hitting a true trillion dollar valuation. Apple has now done something no other s p 500 stock has done in the past 35 years if ever. According to data compiled by the dow jones, the current market cap, apple now accounts for 6. 5 of the entire s p 500 that surpasses the record of 6. 4 set by ibm, big blue, thats why they call it that back in 1985 apple, the biggest stock the s p has ever seen or at least in the last 40 years. Lets check overnight action in asia and early trading. Most major markets are higher. The any knikkei in japan is lowr the german dax is up nearly 1 wild ride for shares of novavax as it looks for a leg up in the run for the vaccine. Thats right. Bhip saw action for novavax as they grow in the experimental vaccine for covid19 up with shares and bouncing back when media reports said recent trial participants had to be hospitalized for reactions the company said those reactions were sporadic and mostly mild with a fever President Trump distancing himself from an sec investigation into kodak saying he was not personally involved into the 750 million loan to make drugs at its factory. The early stage may not produce wrong doings by codkodak. And likely airing mutual grievances in the mutual tense relationship all of this expected in an august 15 Video Conference under the phase one trade deal signed in january, china said it would increase purchases of u. S. Goods over some 200 trillion. Agriculture, consumer products, energy and services. Many of those promises fell far behind schedule once the pandemic took hold walmart delaying the launch of walmart plus, a service meant to compete with amazon prime and its 150 million members. Back over to you back to the markets and your money. Stocks look to build on gains being fuelled by what else, big tech, your next guest keeping an eye on something else. The dollar good morning. Why are you watching the dollar so closely weve had this decline on the dollar it is very big for foreign markets. The europe and pmi Services Data drives up the euro and weakens the dollar it affects our markets the stock markets. That macro variable. Seeing these lows we havent seen since 2018. The lack of certainty we have seen with the middle east and china. We are looking forward to the data that will strengthen the u. S. Economy that is pretty important for the dollar at these moments. Does it matter the Big Technology stocks . To the extend it matters. People are in the demand for the stocks you want to buy the stocks, you want to buy the dollar it is two ways the dollar weakness shows Something Like strength elsewhere. Strength in europe also about the tensions we have with china but also about our own economy. As we know, the Technology Sector has been really strong regardless of the weakness of the economy. I dont think you can tie the technology and the dollar so directly but it does all reflect our economy. That does display the direction for the dollar here. Are you shocked by the continued juggernaut that is the u. S. Stock it doesnt matter what the u. S. Pandemic numbers are, the relockdown numbers are, investors treat it as an excuse to buy because im assuming they assume the Federal Reserve and the unlimited Printing Press always has our backs that is a clear market in the least. You can take risks there is uncertainty out there every day, we are confronted with the uncertainty for example. It is not a catalyst for people willing to take risk but i would also say it is about the effective economy. Highlighting with disney out of the change in the game for cinema but now disney shares are up and people are seeing a new type of future ahead of us the economy has changed and could get stronger again the nova story is not an end to the crisis there is a lugsolution and that supports the market. Futures are up 173 right now. Ben, always good to have you on. Have a great day with err just getting started. More details on the horrific explosion in beirut. The blast that could be felt more than 100 miles away and the likely winner of the pandemic and why these shares are surging and it is not touching anything. The mystery chart shall be revealed in minutes. The dow futures up 176 we are back after this you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Welcome back lebanon. A developing story there after an explosion rocking beirut. The blast felt from miles around destroying important buildings more than 4,000 injured and more likely still in the rubble our own hadley gamble has been following. She joins us now on the line i know beirut is a city youve been to several times. What do you know so far . Caller absolutely. This is a city very close to my heart and many across the middle east one of the things we are watching even now is more and more people being pulled from the rubble expect those numbers to go up. The Lebanese Red Cross have said over 100 people have died and over 4,000 were injured. We saw two twin explosions the second explosion you saw there, at least 7,500 tons of amonium nitrate was stored at that second facility there is so much speculation on what happened yesterday. We are waiting on the government to come out and explain the details. They say the cause could have been gross negatiligence. And more on what the president said that it could have been an attack this country as you know has bhn in economic crisis for many months their currency has lost value of up to 80 since the start of the year since the port has been destroyed. Theyll have to open a second port in tripoli. They were already importing 80 of their food. I saw one story it may have been a toxic and fatal combination of the toxic amonium nitrate which you use as fertilizer unbelievably a fireworks Storage Depot next to that amonium nitrate. Right all i say to that is it is lebanon and things have been happening. Youll see how difficult it will be in this country in the mist of the crisis to pull itself out from the deep crisis it is in and countries in the surrounding region have pledged support but are they going to pony up dollars. In the past, they are existed on the lebanese money sent back to beirut as a result of covid hitting all of the economies of the region, particularly of the donor states like saudi arabia. Truly the pictures we are seeing are terrifying. Videos on social media showing the actual blast thank you for joining us on deck, the decline of American Dairy well speak with a member of a multigenerational farm that has left the business and the changing landscape dow futures are up 190 we are back after this an estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Online shopping, dieting and to infinity and beyond starting with square as shares are surging analyst expected sales to decline as the crisis hift the customer base. They jumped 64 the use of the cash app mobil wallet. Square results came out early due to what it calls early external a external axe ses shares of Ww International misses estimates ended with a record 5 million subscribers but hit by locations being closed due to the pandemic beyond meat dropping shares also an increase of demand by retail customers as they are eating at home and shares triple in that quarter. Back to you. Truly incredible what will happen when restaurants are closed thank you. Speaking of going to the grocery store, how much are you willing to pay for a gallon of milk for many, that number has been on the decline forcing milk and dairy farmers. Welcome our guest, who is sixth generation dairy farmer. Good morning and welcome i wish it was under better circumstances. How dire is it right now in the dairy business the last couple of years has been difficult hard working every day taking care of their anaimals, land an resources and the weight and the supply on the market has been weighing challenges and really knocked us out to having an access point to even sell the milk we produced and propertied our exist out of the dairy industry you used to go to the store and you know your brand of milk, now you go in and there is the store brand. Not just milk. Every product has gone the way of store demand. How much has that changed the way for formers . The store brand has been around for some time in some cases, it is a private label and underlying name brand you are familiar with that just puts it in the store brand package. Thats been a way to find ways to take care of the bottom line. We see that not only in dairy but in vegetables and meats nonetheless. Really accommodating the differing interests of the consumer we saw the graphic, joe, that your family farm was on land you got or bought from president Martin Van Buren the current president , by the way, got into a trade spat regarding dairy, maybe thank you to wisconsin for differing the election to him. If you could have a word with the president , what would you ask him . What does the industry need now . As we look at business, at agriculture, the trade is incredibly important, as the president knows, certainly, the production and ability of American Farmers to take care of the land, manage the resources and farms that have been in the family for generations or just for one to access the market and utilize resources weve been blessed with to provide the fuel and food and fiber for the world. Incredibly important i think everyone is award of that it is a mart of trying to matchup of our farms to produce and the weight that we have access both here and around the world. It is a challenging time when we throw in the pandemic and other issues for the American Farmer despite changes that happen on my farm and others as we go through this time. Im hopeful for the too tur. Id like to end it there. Joe kelsey, kelsey farms best to you. Thank you for being on the show. We appreciate it thank you what disney is now doing that could change the Movie Theater game forever take a look. What happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. New hopes over potential stimulus deal. The dow up over 170 right now. Disney deals with loss as parks are closed down but looking to do something that will help change going to the movies forever and customers caught in the path of hurricane or Tropical Storm isaias to file claims. It is wednesday august 5 you are watching Worldwide Exchange on cnbc. Welcome back good wednesday morning thank you for joining us on Worldwide Exchange. Here is how money and investments are looking. Stock futures are solidly in the green. The dow futures are up solidly in the green following an everything is update the nasdaq hitting a new record. The fifth straight update, if you are counting, it is 22 year to date. Even if stocks go up, so do bonds and treasury yields. They move in the 10year yield is one half of 1 0. 52 truly amazing. Mortgage rates could tick lower again and gold staying red hot closing above 2,000 for the first time that new record adjusted for inflation. Golds 12th positive day in the last 13. B by the way, we have cool stats coming up for the rbi youll be able to wow your friends with. This could have been the rbi watch shares of apple today. Just a few Percentage Points away from hitting a 2 trillion market cap valuation now doing something no other s p 500 has done in years, if ever cording to data in the 1. 87 trillion market cap, apple accounts for 6. 5 of the entire s p 500. Surfacing 6. 4 set by ibm in 1985 apple maybe the Biggest Company that ever was or at least in the last three or four decades now to capitol hill where there appears to be some progress on a new round of virus relief the two sides looking to have a deal in place by the end of the week important for the summer recess. More with eamon about negotiations if they are going at all they are going, brian we cant tell you the specifics but when negotiators come out of the room, the rhetoric is getting a little more positive there is talk of progress and concessions. Here is senator Chuck Schumer talking about some of those. They made some concessions, which we appreciated we made some concessions which they appreciated we are still far away on some important issues we continue to go at it. My view, the fundamental disagreement is the scope and depth of the problem and its solution back at the white house, the president continuing to slam democrats as unwilling to negotiate and give up on some core values. Here is what he said we are talking with the democrats. They seem to be much more interested in solving the problems of some of the democratrun states and cities that have suffered greatly through bad management. Brian, the president has been openly ro openly ruminating to use executive orders to accomplish what he hasnt been able to like extending that uninsurance employment of 600 a week that has run out and leaves a lot of americans in the hole here it is not clear whether the president can do that. Appropriating money in the u. S. Constitution comes from the not just the president and discussing payroll taxes and not clear he has the authority to do that that could provoke a ferocious legal challenge and maybe get tied up in the courts. It is unclear what the options are. This is the first show in the u. S. I like to be first im going to jump past this round. I saw in the news that Maryland High School sports in the fall your kids will be virtual all year is there any chatter about a possible third round when this is done. The previous one lasted a couple of months. Nobody is suggesting well be out of this by november and december there is talk of a few more trillion at some point thats an excellent question. You are right. There is no indication well have a vaccine and a cure for this anytime soon that mobilizes hundreds of millions of people back to work the question in washington is what is the time horizon washington is not the city that looks back the election. That time here is november we have a massive election we could have a change in the house or senate or not all of that is entirely up in the air what could happen in november and in particular, january. It is possible you have a new administration in january and the president beginning the second term. Washington just cant plan for that there is no real discussion of what would be in the next phase. Just thinking, april, may, june, july so august, september, october, november gets us half way through december christmas, new year, if things dont get better, just whatever, stop caring or vaccine or whatever another couple trillion bucks. We appreciate you coming here with us. Take care. Back now to earnings and what is a rough quarter for disney sales missing expectations disney taking a 3. 5 billion hit to theme parks being closed this quarter. One bright spot is people sitting at home watching tv. Growi growing. Disney will release mulan on the small screen for 30 they will release a new general streaming service next year under the name star brand and what it acquired from fox. What do you make of the quarter . A lot of new subscribers but the parks remain closed . Good morning. Thank you for having us on the quarter is a tough quarter a miss in the parks business some what irrelevant because that was due to basically timing and accounting they are going to hit in the september quarter. The interesting points are the topics you were discussing disney plus opening mulan on a premium video on demand and starting a new international dtc service. Disney is going all in on dtc. Does that make up in any way to the loss of a theme park . It is a lot but i got to image i millions of people going through the gates at the parks is a lot more in the past recessions, it has taken four or five years before you got back to peak attendance which was 2019. Once we get a vaccine, there has been some damage to the economy. The trip to disney world is not inexpensive. There are a lot of families that will think twice before they book a year out 5,000, 10,000 vacation i want to look ahead kind of like my stimulus question. Looking at the third round of stimulus, which is this fall monday night football. We all hope the nfl goes off we are trying. If it does not football is as a sport, a industry of itself i have got to image inn if we do not have nfl football in the fall, what happens we dont have nfl football, youve got an issue for disney and monday night football and a huge issue for sunday for other networks if we dont have football, that would be a huge issue. Disney was very smart and raised a boat load of cash. Theyve got over 20 billion of cash on the Balance Sheet now. Theyve got the liquidity to stick this out and wait this out. It would devistate earnings, i would think. Ive got to imagine that is priced into the stock. We have a hold rating and 120 price target. What they are going direct to the consumer is great. We do have a concern of how long it takes for parks to get back to normal. Covid is affecting other Media Business and accelerating trends that were already occurring. You saw disney took a 5 trillion write down to International Travel business. It is an indication of the value decreasing in international value. You will see that decrease in domestic channel as well look at netflix. Maybe well all be sitting around in the fall watching something on netflix as opposed to football. Thank you, alan. Thank you, brian. Coming up, stocks you need to watch one down 10 right now some other top stories on wednesday. The Justice Department seeking up to 18 million from purdue pharmaceuticals. They did reach a settlement for fuelling the Opioid Crisis and according to reuters, a move will beginnerly octob earla exxon reports the first back to back loss. Virgin atlantic making a move after receiving a 1 billion bailout just last month. Futures up 170 we are back after this derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Welcome back call of duty and electric cars and trucks to watch. Act Vision Gaming Second Quarter really beat estimates. The next release of the call of duty franchise later this year engaging in june across the platforms. Shares of nikola that went public in june the hydrogen powers longhaul truck is scheduled to begin production beginning of next year and twilio falling eps guidance did project the loss that stock up nearly 200 this year back to you. Frank, thank you, buddy the cleanup is under way along the east coast after the Tropical Storm rocking us yesterday causing millions to lose power for insurers this could be a multibillion event this was a brutal storm. As far as Tropical Storms go, yes. The eastern seaboard is waking up under clear skies you can bet there are homeowners and Business Owners jumping on video calls with their insurance providers. Isaias as a Tropical Storm with rough roughly roughly over a Million People in the track of the form. The geographic track of the storm is one of the worst scenarios. Private Insurance Companies mostly comes from the National Flood insurance program. This was as much a wind event as flooding event at least six states had tornadoes. Parts of new york felt the strongest storm it has since sandy in 2012. Six people were killed here. It is too early to have damage estimates. Insurers will brace from the impact that swept over much of the country. There is a bright side here. A fast moving storm without the extensive damage we often see when storms just sit and spin. I think i saw reports of 40mileanhour wind gusts things i thought was impossible. Trees bending and almost breaking over. Dealing with the pandemic. Youve been doing great reporting on Insurance Industry as well. The reInsurance Industry will be hit. I hate to use the term double whammy but thats what this is and unexpected for early august. What we saw in the earnings reports coming in from the Second Quarter is that much of the catastrophe had to do with coronavirus. Now theyll be adding up things like other hurricanes, the fires in california and isaias and double whammy from the coronavirus. Weve been talking about lawsuits filed across the nation for Business Owners who are really frustrated that their claims for business disruption related to the Coronavirus Closures have been denied. They inexist, it has to do with property damage. If there is no damaged property, there is no business disruption. If you have a tree on top of your business, go ahead and file that keeps people from coming into your business looking at the scene. Just gutting contessa, thank you. Well see you soon still on deck, stocks keeping early momentum the dow jones up 190 coming up, the rbi you will wow and amaze your friends with the historical record thats coming up a secure Mobility Solution using the hp elitebook powered by intel 8th generation core processors. The hp elitebook features groundbreaking builtin security, like sure view to thwart visual hacking and cdw configures them to your companys specs. For mobile security, you need hp and it orchestration by cdw. [intel jingle] i appreciate what makes each person unique. And it orchestration by cdw. Thats why i like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. Almost done. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. The rbi for today. You may have heard the advantage, sell in august and go away not really summer but august that is the problem. Since 2010 on average, august has been the worst month on average and second worst month for the dow. Averaging a decline. You should note may is the only other month we have averaged a drop no other index has averaged a drop in any other month. Maybe we can coin a new wall street phrase here and now on the show sell in may then buy sell in august then buy. Maybe not. Doesnt really roll off the tongue random but interesting august, not your favorite month as an investor well look at some markets blowing up that trend. Early riser out there in the central time zone. You just heard the stat. I dont know if this will be a new one. On many, many levels are you at allshocked . I am the market will do whatever it needs to do to prove as many people wrong if you had said, whats your opinion, i would never say, wed see highs right now. The market rose colored bin binoculars i am sure in midmarch, you were talking clients off the length the gain of loss greater than the joy of gains how many clients were able to hang on and hold their nose and stay vested . The reality is we spent so much time getting the risk budget right, it was really and truly a nonevent we still have people coming to carson today that went to cash during the financial crisis and still sitting in cash. If i were in the financial market, i still wouldnt believe it everything looking good, markets going up and wham. Weve got covid. Once you sat out in the market that long, you start to put your cash to work they are the ones that panic thats why buffett said it our markets are relocation centers. Those that have a plan from those that dont have a plan more than ever, it has been important. Today, more than ever, having a budget understanding a plan and if you were to outguess the market, youll get the proverbial you know what handed to you. You get my point, if you exactly called the bottom. Im worried about the future congress debating stimulus here. No indication anything is going to change heading into the fall unless we just stop caring, i guess. Another round of stimulus. What do you foresee the next 6 to 9to 12 months there is a lot going on out there. I didnt profess to be a bull or bare but a real is here are the facts the fed would applaud inflation. We are figuring out how to do things much more productive. Ten stimulus this money, with a high. Go try to buy a boat or rv we have an election coming up. Put a health on it put a base. If that market shoots higher, it could. Put some production on the down side many talked about housing and how poorly it was. Good real world advice. The midwest sensibility. We appreciate you coming on. Have a great day best to you and yours. Just like that, we are done on Worldwide Exchange. Squawk box will pick up the coverage of the dow futures another big day. Have a great day take care. What happens when a wireless carrier puts its customers in charge . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. The road ahead first on cnbc. Market reaction. Watch and listen live on the cnbc app looking to push to another high futures are pointing to gains. Disney looking at profit after months of theme park closures. Picking up the pieces after the storm. Insurers bracing for damage claims as millions remain without power across eastern United States. It is wednesday, august 5, 2020 as squawk box begins right now. Good morning, everybody. Welcome to squawk box on cnbc. Im becky quic
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