Transcripts For CNBC Closing Bell 20240712

Up pressure. A big thing the marked is watching into the weekend, stimulus negotiations in washington they appear to be stalled with no breakthrough yet. But that could change. We have 59 minutes left of trade. We do sara, as i know you were equally with me on this, we also happy birthday wishes to closing bell and power legend bill grijive who shargri griffith who shares our birthday and mrs. Carl quintanilla. It goes on and on this great seventh of august. Popular day great day it is because of them, not us. Coming up on todays show, tensions ramp up between the u. S. And china, well speak with i ian bremmer and why a worldwide depression is coming plus, the weeks storm driven Power Outages have been a major headache for people working at home. But they gave a boost to a generator company. Well speak with the companys ceo in a few minutes lets focus on the big stories that were walking mike santoli is tracking a volatile market session. We have the latest developments on the stimulus stalemate and we are looking at the fallout from the president s executive order on chinese tech companies. Mike, lets kick things off with you. Interesting dynamics in terms of what is driving it. The jobs number was Strong Enough to reassure investors that more or less this recovery fitful as it is remains on track. However, it did cause we talked about this 22 hours ago a strong number causes the u. S. Dollar to bounce and reversal of all the trades benefiting from the u. S. Dollar. That includes gold, silver which are down that includes treasury yields lifting a little bit today and big Growth Stocks. The nasdaq underperforming. Thats whats causing the slippage as you can see, its really not to any net detriment to the overall trend. Its okay. The market settling back on the s p 500. The equal weighted s p 500 outperforming. Value stocks outperforming the big Growth Stocks. I looked at the top of the nasdaq of the biggest dozen stocks in the nasdaq, only facebook is up and just marginally just really massive flow out of the big winners that have benefitted from this kind of low dollar deflationary feel low and negative yields as well. Take a look at this breakdown of the market just talk about the winners and losers and the different ways can you look at whether theres been a broader or narrow rally this is from a Data Research firm the s p 500 stocks on a cumulative basis that have outperformed the s p 500, this is a rolling daily tally how many are outperforming you see this is going straight down basically, the mega cap stocks are boosting the s p 500 so much that the average stock is not really able to keep pace on an average basis. However, if you look at just the straight up or more stocks up or down on a given day, thats actually looking up. So the trend is up in terms of stocks being relatively strong in terms of the numbers of stocks that are up but not so much how much they are up just a quick side note here. July, according to b of e is the worst month for actively managed equity funds in two years. This is why, guys. Mike, just quickly in terms of the underlying factors in the market today value versus growth and significant outperformance relative to what weve seen late but also, were seeing the dollar roll over as a bounceback to the upside having been very weak and gold rollover to the down side having been strong for a long time. Yeah. Its basically been a reversal of that carousel of asset market moves that weve been talking about that is mostly been initiated through the movements in the dollar. And i think for the other markets for gold and silver, its just an occasion to say lets not assume this is going to be the way it goes. You know, in a Straight Line you look down, you see what the altitude is and take some off the table. It seems to me thats whats happening. That Balance Sheet is strengthening. Yeah. Its been shrinking actually, its not grown on a net basis since mid may. And stocks are up real big all that stuff has been going on the whole time by the way, as somebody informed me, its the dollar swap line thats are the reason the fed Balance Sheet is down. You need to shout that at him, sara thats what he is used to. Right all caps he hates that. That is true im going to just like concede that point to you. You have to do that from now on every time in the show mike, thank you. Now to the big question mark the moving stimulus stalemate. We have the latest developments. Sayer yashgs democratic leadership has been meeting with the white house for about an hour and a half. It looks like there is a little activity outside the Speakers Office so well see if that meeting is ending any time soon but i will say that heading into it, both sides remain pretty dug into their positions House Speaker nancy pelosi said earlier she had offered to come down to 2 trillion for the pricetag of the package. But that the white house rejected that deal yesterday i offered to them well take down a trillion if you add a trillion in. They said absolutely not if we could do that, if we take down a trillion and they add a trillion, well be within range. Democrats said the opposition from the white house is vehement and indeed walking into the meeting treasury secretary said that offer was a nonstarter. The white house chief of staff said that it was not plausible that democrats would just change the time line not really changing the numbers still, even the fact that they are talking is a small step. It was unclear yesterday whether they would even return for another round of negotiations or if President Trump would make good in his threat to move forward with executive actions of his own so, guys, the last minute haggling is not over just yet. Thank you we also want to ask you about a new warning from u. S. Intelligence about election interference what can you tell us there yeah. The director of the National Counter intelligence and Security Center just said that there are foreign adversaries looking to undermine u. S. Elections but that it is unlikely and difficult that they will be able to interfere or manipulate the results specifically, they point to china, russia, iran. They say that china does not appear to want President Trump to win because he seems unpredictable. Russia, however, seems to be targeting Vice President joe biden. And iran is indeed trying to just undermine confidence in the democratic process overall so this is something that is also coming up in the stimulus negotiations democrats looking for money to safeguard elections. Republicans saying thats not related to the virus at all. Thanks so much for that down. 25 on the s p 500 as things stand the other big news out of washington, President Trump issuing executive orders that would ban transactions to tech firms. We have a look at one of the companies, ten cent, and what the fallout could be for them. Hey, d hey, wilf, happy birthday to you both they have flown under the radar until now. But in many ways, a ban would have wider reaching implications than a tiktok ban. Wechat is a super app. Which he this he can spend their entire digital day inside of it from messaging to shopping to streaming, even booking doctors appointments american businesses operating in china such as mcdonalds, disney, starbucks, they rely on it to reach customers. St so if a ban affects their ability to work within that app, it could really set them back in important market apple and google too if chinese users decide to switch devices altogether because they cant accent ten cent apps the Investment Empire is massive. Spanning 450 Companies Globally according to pitch book. American household names like snap, tesla and a number of big gaming players are part of that portfolio. Now we dont yet know if the order would affect those transactions but it is safe to say that the fallout could also be fli applicanted and significant. Turning off the wechat messaging app would cut off a lot of chineseamericans if family, friends, and just back to you. Thank you lets get to julia now for more on the other company that is included in that ban, bite dance. It is a parent of tiktok julia . Thats right. The executive order would ban bitedance from doing business with u. S. Firms effectively banning the google and Apple App Stores from offering the app and essentially setting a 45day deadline for tiktok to sell the u. S. Operations. The executive order saying they capture information from the users and this dat collection threatens to allow the communist party access to americans personal and pro pry takery information saying the United States must take aggressive action against the owners of tiktok to protect our National Security. Tiktok responding that there has been no due process or adherence to the law saying, we will pursue all remedies available to us in order to ensure that the rule of law is not zbarddiscardn that our users are treated fairly facebook which Just Launched reels on instagram and snap both of their Companies Shares moving higher on this news of the growing threat to tiktok sara and wilf, happy birthday and back to you. Thank you very much for that. Sara, i was going to bring up the other point, even if you put aside the National Security fears which may or may not in the end prove to be warranted or not, if this was just a level Playing Field argument, some of the moves would be totally legitimate lets not forget the only reason the likes of ten cent and we chat and tiktok are as big as they are is because from day one facebook, amazon, google and the other u. S. Platforms were banned and d makes absolutely legitimate point the likes of Chinese People in the u. S. That use wechat to stay in touch with people back home that they might then be cut off via that platform. That wouldnt have been the case if facebook existed from day one in china everyone just used that as the global platform. As it happens, because of chinese protectionism, these Big Companies in china were able to grow to the size that they are and there is a couple of alternatives for people who live in both america and in china but again, even without National Security, lets level the Playing Field and do to the chinese firm what was done to the u. S. Firms this is warranted in that sense. For sure. It could be potentially coming late as she laid out it could be very tricky to untangle some of the business relationships in particular that u. S. Firms have been doing with these companies. The economies are reliant on each other at this point whether its fair or not and National Security. So there is going to be a fallout. I would just say as far as the market is concerned and how much fear there is around this issue, i watch the dollar versus the chinese currency it hasnt broken above seven once it does, that could be the red light this is really getting to be nerveracking, intense, and potential for economic fallout. Were watching that closely. Its no the there yet clearly, tensions are only rushing higher. For sure. If were criticizing if, the west is criticizing them for steeling i. P. Is the right response for some tit for tat response its no the steeling ip baaling. There are lots of levels to this and is he escalating were lower by. 3 on the s p 500 with 48 minutes left of the session. After the break, the prince of darkness, thats what bank of america labelled generac in a note today in what could be a rough Hurricane Season well speak with the companys ceo next he is not the prince of darkness were back in a couple minutes ive always been fascinated by about whats next. And still going for my best. Even though i live with a higher risk of stroke due to afib. Not caused by a heart valve problem. So if theres a better treatment than warfarin, i want that too. Eliquis. Eliquis is proven to reduce stroke risk better than warfarin. Plus has significantly less major bleeding than warfarin. Eliquis is fdaapproved and has both. Whats next . Reeling in a nice one. Dont stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. While taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Ask your doctor about eliquis. And if your ability to afford. Your medication has changed, we want to help. Welcome back dow down 50 points four million homes on the eastern seaboard left without power from the hurricane earlier this week. Forecast for the 2020 Hurricane Season are even more dire. Updated to extremely active just yesterday. Scientists predict up to 25 named storms one name that could seemore business as a result is generac. Accord fwoofrpg according to bank of america, the prince of darkness is also seeing business from the stay at home pandemic. Joining me is the ceo. Thank you for joining us still many people across new york, new jersey, connecticut without power. What is demand for the pryour pt like at this moment . Thanks for having me on happy birthday st there is over a million homes and businesses still without power today. So this is four days after the event. And the storm just hit a very populous region. An area where you have a lot of above ground Power Distribution and a lot of trees and thats just a really bad combination. Or a good combination for us you know, the demand for our products has been very robust going all the way back to last fall with the shutoffs in california for fire safety reasons and its really accelerated here with the pandemic people working at home, shopping at home, entertaining at home, educating their kids at home you know, the idea of having a power outage now more than any other time i think is just completely untenable for people. Is having a generator safe, aaron . I read stories all the time of people getting Carbon Monoxide poisoning or, you know, handling their product unsafely what are the actual statistics on that . Yeah. I mean its actually for the millions and millions of products that go out there, its a relatively small number. Obviously, the products have to be used in accordance with all the safety literature that is provided with them but the permanently installed units, the units that sit outside your home hard wired into the homes electrical system run off natural gas at the home those are the safest version of those products theyre fully automatic. They stand in for the utility when the power goes out. Can you go on living your life uninterrupt philadelphia y uninterrupted if you have one of those products. How often do people come out to buy these after they would have needed one and then perhaps never end up using the generator that they buy . Yeah. Its a little bit like an insurance policy you know, i think obviously people dont know when the power is going to go out youre not sure. For us, were not sure where its going to happen in terms of making sure we got product in the right area of the country to satisfy demand, thats always a challenge. But for people who, you know, they look at this product as a way to protect their home and the way to protect their family and in particular again, with the pandemic creating a shelter in place situation for so many people, we really believe that people are investing in their homes in a completely different way. Theyre going to be spending a lot more time at home and having a constant source of power for everything you do in your home you really sit there and think about it everything from, you know, the food in your home to Internet Connections to all of your communications again, its you become things get really primitive really quickly i have a separate and longer term question. One thing that held become electric vehicles is the quality of Battery Technology which has come on leaps and bounds as it relates to the electric vehicle. Are we any closer to homes being Energy Independent from the grids and being able to whether it is wind or solar and store it so the battery in a home can provide them power when they need it . We think there is a massive change coming in the grid. The energy grid as we know it, the idea of centralized power being produced by nuclear or gas or coal and distributed hundreds of miles away to your home or business that, model is going to be flipped around in the next ten years. Youll see a lot of on site Power Generation from solar and wind and a key component of that and deploy it different times during the day solar cost comes down. The combination of that technology shift and then obviously the shift thats have been on going with regulation incentives that are out there around the new technologies we now have storage devices were selling the devices in california and other parts around the u. S theyre coupled to solar and theyre popular. Yeah. Aaron, quickly, generators are expensive. What percentage of american households actually have one so for the permanently installed units, its really only about 4 of homes actually have one of the products for the small portable generators, less than 15 . So we see that as a penetration opportunity. The cost of the products continue to come down. Again, the need for power continues to rise. Outages is on the rise heart to dispute the fact that you look at this hurricane forecast, you look at the California Wildfires and all these other triggers for Power Outages and all we see are more Power Outages, more frequent Power Outages in the future. Thats part of the story. Stocks amazing climb this year. After the break, good news for ups investors, maybe bad news for your wallet well explain next and as we head to break, check out biogen shares. They have an expedited review of the alzheimers drug. The stock is up 10. 25 stock sli. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. 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. We have breaking news on the stimulus tusk. Will frfred no deal the meeting broke up a little bit ago without reaching a compromise nancy pelosi and senator Chuck Schumer spoke to reporters and framed this as the white house walking away from what they said was a fair offer to meet in the middle it was a disappointing meeting. We reiterated in very strong terms our offer. We come down a trillion from our top number which is 3. 4 they go up a trillion from the top number which is 1. And that way we could begin to meet in the middle unfortunately, they rejected it. Democrats saying that they cannot even pass in the house any deal that is lower than 2 trillion the ball is now in the president s court. Back to you. Thank you with that said, we are get something comments from treasury secretary Stephen Mnuchin talking to reporters lets listen we have asked them for a specific compromise on state and local and a specific compromise on unemployment. We have not received proposals on that. Let me just say as i said before, i think there is other areas we have made a lot of progress on. We know we need broadband for kids to be able to access who cant get in and then we can reach an agreement on that. The speaker just mentioned food. We want to make sure that kids have food. Were not going to agree to long term policy changes. But the things that they wanted for through next year, through january, weve agreed to so i think there is a lot of areas of compromise. I think if we can reach an agreement on state and local and unemployment, we will reach an overall deal and if we cant, we cant. I think its interesting just to hear the comments from senator schumer and Speaker Pelosi saying that they want a deal when behind closed doors their actions do not indicate the same thing and as we look at this particular issue, the secretary is right weve offered 105 billion for children to attend school. The democrats said thats no the enough at 915 billion for state and local, thats where they were two weeks ago. Today, theyre at 915 billion now if youre talking about compromise, even with their trillion dollar washington, d. C. Magical way of saying theyre going to come down a trillion, they cant come up with any significant cuts in their bill what they want is a 2. 5 trillion blank check. The president has encouraged us to negotiate and come back and negotiate in good faith. But at this point i am extremely disappointed that we came up here today just to hear the same thing repeated over and over again which is the same thing that we heard repeated for the last two weeks so the chief and i will recommend to the president based upon our lack of activity today to move forward with some executive orders again, we agree with the speaker. This is not the first choice but people have run out of the enhanced unemployment. So that is something we will recommend in executive order on. And it relates to rental foreclosures we will recommend an executive order on that. And also Student Loans its going to take a little bit of time to finalize these and process them well do them as quickly as we can. The president wants action he realizes, again, despite what was a big pickup in jobs, there is still too many people that are impacted by this youre talking 2 trillion they said come back with a different offer. Theyre not at 2 trillion she is talking about you coming up a trillion the. Let me just say are you willing at any point to compromise again, what i say is there is a top line issue and there are also policy issues i think, again, let me emphasize, i think there are areas where there is broad bipartisan agreement it doesnt mean that we finished all those areas. But whether its the ppp, whether its other areas, again, on the school issue, we have a broad understanding of what we want to accomplish were still going back and forth on numbers were going to be fact based were reaching out to states to make sure we have good numbers but at this point, were going to recommend to the president that over the weekend we would forego some executive actions. Is the number 600 or what can people expect . Again, i think as you no he know we made a compromised offer as part of the legislation i think its a very fair proposal o i would be willing to compromise on state and local. I understand there are workers in state and local governments. There is firefighters, police, First Responders theres people who have in hospitals that have been working around the clock because of the virus. And we understand. We need to pick up those costs again, its something were addressing. Thank you i think the other thing that is fair to point out is when we hear this compassionate talk, the enhanced unemployment has expired. The democrats have had an opportunity multiple times to extend even what were doing right now. And they have consistently said no where is the compromise in any of that . You know, its important that as we look at this the secretary is right they made no offers as it relates to enhanced unemployment and they made no offers as it relates to state and local funding. Both of those are still where they were two weeks ago. And were very flexible if there is areas of agreement that we can agree on, pass legislation and come back to the areas outside of that, well do. That we want to move forward for the american people. Just what you said last two weeks and saying right now, saying the same thing respe respectfully negotiations have been in the same place there the is not going to be a bill at this point you concede were not going to i dont want to jump to conclusions. Let me say in all fairness, we have cataloged a lot of issues we understand the area they understand us im very confident that we can compromise and reach an agreement. She is not willing to be a partial deal in the meantime, were going to take executive orders to try to alleviate some of the pain that people are experiencing the this is not a perfect answer it is all we can do and all the president can do within the confines of the executive power and were going to encourage him to do that i dont want to anticipate anything were open to listen to new offers again, if they have compromises on ui and state and local, were ready to be here to negotiate. Thank you. Just hearing there from the administration on the talks with democrats. It appears there is no deal. Theyre in no agreement. No Common Ground to move ahead with the stimulus bill there you heard from at the white house chief of staff along with the treasury secretary mnuchin. Slamming the democrats for demanding a 2. 5 million blar2. Check. The disagreement is how much goes to state and local governments and the unemployment benefit bump the most newsworthy is they both said theyre going to recommend to the president to take executive orders executive action the question is what can that do congress has power over the purse. Thats right. There is some power that the president does have. You know, they mention the rental evictions they mention Student Loans those are areas where the president does have a little more authority i thought it was interesting that i didnt hear him mention taking action on the payroll taxes. I dont know if that was unintentional omission or not. That is a real area of contention im clear if the president can actually forgive that. Or if they can delay collection of the action. They said they would recommend taking that action over the weekend. So perhaps providing a little wiggle room for some sort of negotiation. The top line number is not the only problem but also significant policy disagreements. And that i think is going to be the biggest hill to climb as they try to come to some sort of agreement. But it is very clear that the democrats are not going to accept a skinny or as pelosi called it, an anorexic deal and the white house is adamant not going over that 1 trillion benchmark. Fascinating both sides willing to play more political games at the moment than they were back in march and april and the earlier rounds of of this stimulus, whether that is because the stock market recovered or we had three months in a row better than expected jobs numbers who knows . I wonder if it is worse if we had a deal already eerng way, we dont want to have to see it worsen but to your point about the possible executive orders, even if there is a narrow number of areas where they would be legal and the president can sign them, would that not put the pressure back on the democrats either way to get to a deal quickly or do they risk losing the political argument i think the democrats field they made a mistake when they agreed to topping up the ppp program without getting additional political wins there. So they feel like they already went down that road and didnt work for them. So they want to try to hold the line this time i also think this time you have a different negotiating team, right . We see a little bit of a different political persuasion from treasury secretary mnuchin and mark meadows the he is focusing on the areas of agreement like broadband access, snap, food, nutrition. You heard a little stronger rhetoric from mark meadows holding that line as a staunch fiscal conservative, member of the Freedom Caucus so that could also be playing into their ability to get a deal with democrats thanks so much. Let us know if there is any more developments in in the next couple hours it has not spooked the market any further. There is the dow still ahead, under the radar, blackline son a terror all year despite todays post earnings drop still up 50 this year well speak with the companys founder and ceo, a woman that broke through an a male dominated industry here is a check on bonds yields moving higher today come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. 20 minutes left of trade u. P. S. Shares hitting all time highs. They add new fees for the Holiday Season we have the story. Frank . U. P. S. Trading 7 higher after announcing holiday surge charges for retailers. The fees could be as much as 3 for ground and 3 for air shipments. They apply mid november to mid january. They will be charged based on how much more that volume is than february levels according to the journal, internal document said fees are used to offset at decisional cost of hiring and adding capacity fedex also trading higher. Getting a boost from stephens raising the price target back to you. Thank you so much for that. You can watch more with frank tonight. A cnn special Summer School report theyll answer your questions live on air tonight 6 00 p. M. Eastern time on cnbc dont want to miss that. Airlines rallying this week on hopes of receiving another 25 billion in bailout money they continue to weather the coronavirus pandemic joining us now for more information, the former president and ceo of Spirit Airlines very good afternoon to you, ben. Thank you for joining us do you think the airlines deserve a second round of bailout when so many other sectors havent received any at all in the first place zblr its great to. Its great to be with you thank you. I think transportation broadly is a fundamental to the recovery of the economy goods and people need to move for the economy to recover so i think stimulus directed in ways to help people move more safely, move more regularly is good use of the money because it will help bring the economy back in that sense, airlines are in the category of things that make sense for stimulus you could argue that though, ben, for so many Different Industries a what i say about airlines, why cant they go to the bond market the credit market is wide open why do we need to use taxpayer money to go to the airlines and save it for industries that dont have as much access to the Capital Markets . Thats a fair point and i think that the airlines have done a good job of attracting liquidity from the private markets from the bond market you see very creative collateral used like frequent flyer programs and gates at slots and gates and slots at airports as collateral i think thats all true. But the reality is with the uncertainty of air travel in the future, you just cant have an airline cant have enough cash right now the other things that important is airline employees have to be recurrently trained in their job. What you dont want is airlines to be in a position maybe a few months down the road when things might be looking better and then theyre still yet months away from being able to have flights. This he have to bring people back, retrain them and such. So keeping people current on payroll is important to keep the basically the engine idling so when the economy is ready to come back, so is the transportation system. I totally get that, ben and we definitely want to make sure that the companies and the services are ready to take off again literally as soon as the demand is there and that all the staff have their jobs and theyre ready to provide those services about ut why but why do they deserve a second bailout . Im not sure they deserved a first bailout. The starting point with airlines is they failed to prepare for a rainy day number one could have predicted the severity of this rainy day. This is a sector which had excess levels of debt to start with increased the levels of debt in order to prioritize buybacks to push up the stock price. It wasnt even a failure to prepare for a rainy day. It was like they went out looking for a rainy day having cast aside their umbrella. Surely the equity holders dont deserve a second round of bailouts i actually think thats aly bit unfair youre directionally correct the fact is that airlines have invested enormous over 90 of the Free Cash Flow back into the product. Lots of new airplanes, fuel efficient airplanes. Changes at airports, increases in labor costs this is all precovid19 im saying and share buybacks were relatively small piece of what airlines did with their cash now admit lid in hindsight, it would have been better if they didnt do that but the fact is when airlines enter this world when covid19 hit and we saw this precipitous drop in demand, airlines have the strongest Balance Sheets they had in their history. And they were actually kind of well positioned to deal with it. The issue was with the uncertainty of when demand is coming back, you can just never have enough cash because you dont know how much cash youre going to need until things are back so we can all look at hindsight and say if they sh had done thir that but you would rather have old airplanes . Thats where most of the money went, actually yeah. You make a good case, ben. Thank you very much for joining us to talk about it. I think the biggest question mark is even if they do get the money, theres no telling when demand is going to come back maybe have to wait all the way until a vaccine. Ben, thank you thank you very much after the break, ubers ceo weighs in on the future and why apple could get caught up in the u. S. Hu u. S. China trade tensions. 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. 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Senior markets commentator is here to break down the crucial moments of trading day the today we got Barbara Duran back as well and were seeing the dow go positive were looking at the highs of the day. Were up 55 points started off the hour negative. Lets kick it off with the Broader Market were stillgoing to get gains for the week today was a soft day apple is lagging along with microsoft. S p 500 lower for the first time in six days. Nasdaq is down also. Mike santoli, go figure. We just got out of a News Conference where there was no agreement. It looks like he were going into the weekend with no common agreement on stimulus. And, yet, the market is able to rally here into the close. The market is falling back on the sense that they drive in at the direction of something getting done if the executive orders may not be really worth that much relative to what an ultimate bill might have been but its not necessarily about panic just now the jobs number i guess reassured you a few weeks ago labor market was still in repair mode the market is feeding off the interesting reversals. Dollar bounces treasury yields higher gold and silver down and then the nasdaq down the market is asked to absorb the pullback in the very big Growth Stocks. Can you look at this market and say when a rally gets to a mature phase, the trend looks great. Hard to really bet against it. But its getting a little bit stretched. Based on, you know, just how far its come in a short period of time mike, just quickly on this negotiation with the political negotiations would the market be lower if we have the stimulus . Its hard to say. I think patience runs out. If it seems like a walk away from the table situation and i know we have deadlines in terms of when congress is out of session and all the rest of it i think you have to let the market what it did in the leadup to know if it was going to panic i dont think the market is priced for rip roaring growth in terms of the kind of stocks that have gotten us to this point bar sh, whb, what is your expectation here this is the second fwheekweek io that 13 million unemployed americans are not going to get that extra 600 a week in benefits i think the market is clearly expecting something will be done i certainly am simply because we must get something done. I mean the consequences and terms of individuals and what happens if we dont is dire. I think the executives orders will bridge. So i think as mike said, if it there is clear clear signals that they were going to walk away, i think the market will react. Because that would not be good because we already the numbers this morning were good but they also did not capture, you know, i think, the slow down that was happening from having to close gagain. We need that fiscal package in order to keep this market at the higher end of the trading range. Either way, we are off the session lows as can you see by the charts shares of uber taking a hit. Down 5 . Revenue declined 29 the ceo on squawk on the street earlier today with his outlook for the company. We cant predict the future we dont know how long this crisis is going to go. Actually, the recovery that were seeing all around the world and one of the benefits that we see in our business is we are global. Its different from country to country. Europe is now down, france, germany, spain are down 35 or less theyre still down but its a considerable bounceback. The even during this period of crisis, what were seeing is the eats business is growing at unprecedented rates. It is clear and impressive. Theyre articulated by the ceo there is a lot of questions still whether it is just the recovery of covid19 and we bring up the fact and they are pulling away the way its talked about. But also the credibility question if both parts of the business are as strong as theyve been at the best points, you are still probably not profitable. Right improvement in terms of how Much Negative cash flow there was but there was a really big increase in volume and a modest decline in how much cash went out the door its unclear if they both truly scale in a way that, you know, investors in app enabled businesses are used to the stock has been in this kind of struggling phase for a long time it never got caught up in the huge come back of the market spent the vast majority of the business as a Public Company so it is still very much a wait and see even though everyone sees the massive potential market over the long term. Lets hit the movie theaters. s get lets get to julia the decrees, these are the decades old rules preventing vertical integration and limiting how studios negotiate their releases with theater chains a studio can buy a theater chain and bans them from working together to set release dates. Notable to say the amc shares skyrocketing in particular back to you. Its been a rough go lately julia, thank you last night the Trump Administration announced an order banning tiktok and popular chinese messaging april wechat in the u. S. In 45 days its a sharp escalation in recent tensions. Joining via phone to discuss how this ban might impact u. S. Companies is will power. Do you think april sl in the cross hairs . Happy birthday to you and wilf thanks. Youre welcome. At this point apple will is s k speculative. We have several Software Companies that, you know, help optimize and deliver video content and count tiktok as customers. And theyre kleely impacted if the ban is enacted in the case of apple, look, there is never a dull moment our hope is cooler heads prevail here if he they want to respond, apple is a logical target for them will, what is the share price impact if china came out and said were considering banning all apple products across all of china . Thats a very important question china accounts for greater accounts for 16 of apples total revenue. If you put that in context, obviously not chump change that is almost 40 billion, you know, type of annual number. It would be meaningful to speculate how impact it would be it would be meaningful keep in mind, you know, apple is also important to china. It contributes a lot to that economy. Employs a lot of people there. A lot of the iphone assemblies, of course, still take place there. So theyve had a nice relationship my suspicion is that china will, you know, want to evaluate that piece as well. Clearly there is a risk is in any of the share prices at this point do you think it weighed on multiples at all . I think it had a limited impact, you know, to date. Apple is near the all time highs. Much as you know, many of the others have less exposure to china than apple does. Theyre on the back of printing the most impressive quarters really in a long time. In the midst of a pandemic, it grew in every geography and product line which speaks to the strength of their portfolio, ecosystem, et cetera so i think the markets become numb to this a little bit given weve seen tit for tat and concerns with china for multiple years. Apple is weaker today but coming off a seven day win streak its longest since april 2019. Thank you for joining us thanks for having me. We appreciate it. We have two minutes left here in the trading day. Mike santoli is what do you see in the market internals . Upbeat, actually. In this is a day where the average stock is beating the big cap indices. We have this back and forth lots of days. Take a look at this die ynamic that is software, igv today against transports having a big move to the upside so it is an old economy move it is a value. A cyclical move as the dollar has bounced and all the other trends we talked about, the macro level. Volatility index, you know, we mention a big known catalyst got out of the way with that jobs number mike, thank you over one minute left in the session. The dollar bounced today up 0. 6 making it flat on the week and gold fell today relatively meaningfully, down 1. 4 still for gold, up close to 3 for the week as a whole. Equity markets have improved in the final hour of trade as can you see perfectly there on the s p 500. It is now flat having been down notably about two hours ago. The dow is higher about i 30 points the nasdaq lags significantly having had a decent week and a decent couple of days. St the comp down 0. 9 . Ishares val you is ewe is up 1 . Ishares s p 500 growth is down 0. 7 a clear rotation there happening today. Of course, just reversal of a trend that is moving in the opposite direction for most of this year. Utilities, financials, industrials, real estate are the sectors up more than 1 . Again, speaking to that rotation and reversal of recent trends. At the bell, the s p 500 is just higher the dow is higher by 0. 15 the nasdaq down by 0. 9 . Looks like a positive close there for the s p 500. It will make it six days in a row. Welcome back, everyone im sara eisen with will wilfred frost. Big gains for the week the dow closed up 47 points. Apple was the biggest loser. But for the week, the dow had had a really strong week theyre closing up 3 . S p 500 got a gain in the close. It was brought higher by as mike said, old economy stocks, not technology but technology ruled the week. The s p 500 closing up 2. 4 overall. The nasdaq after reaching an earlier intraday record high did close lower by. 9 taking a step back after what was another banner week for the nasdaq as well closed up 2. 5 on the week russell 2000 index of small caps up 1. 5 . Strength today from financials, utilities, industrials, that all helped the small caps as well. First huawei and then tiktok and ten cent were in the midst of a tech war. Were going to talk about the growing tensions with china and the corporations caught in the storm. First to join us to talk about the market, Barbara Duran is here jay on trener joins the conversation and Michael Ferolli is here. Mike, first to you the strength we saw in the session, despite the fact there is no deal between the white house and democrats on stimulus. And better than expected jobs report and then a solid week. Yeah. It has been a solid week over the course of the week, the leadership and story line did shift. Today it is what happens when almost all the largest stocks in the s p 500 are having to pull back everyones talking about it. It happened in intermittent and jagged fashion but, yes, banks up 3 today and value has its moment in the sun. Sometimes, you know, the scrubs come off the bench and they play well value having the moment in the sun. But any time that this happened in the last three, four months or three, four years, it has been temporary what is your take this time . Wilf, you know, im pretty cautious on that cyclical move or at least cautious on deriving too much information from it im confident that a v shape recovery is unlikely i think when growth is scarce, youre going to continue to pay up for Growth Stocks i know thats been happening for a good part of the last 11 years. So, you know, at a certain point the valuation should not matter. I think my im somewhat fearful that the better jobs numbers today may allow policymakers to take their foot off the gas. I think that would make it more problematic to get a stronger economy and therefore make the value cyclical stocks somewhat more challenged as we move forward. Which brings us to you, mike. How badly does this economy need this stimulus . We got a better than expected jobs report today. Got the Unemployment Rate down to the 10 range the what are we looking at here if we dont get a stimulus so we dont get stimulus, i think the economy season is in e serious trouble. Right now the unemployment benefits, 600 weekly bonus payments account for about 5 of Household Income and without that, if that evaporates, i think we see Consumer Spending fall pretty sharply. In august and september. I think that will put at risk some of the recovery weve seen since may. So i understand folks who want to get away from the fiscal support that we have been on i think if we go cold turkey, all at once i think that could present some real problems for what has otherwise been a pretty good run here on the economy so its definitely a big risk. If we continue to believe that there will be a deal if, there is not, that will be trouble mike, even if there is a deal, how worried are you about worsening whether later in the year given that so much of the hospitality economy that has rebounded has been based on eating outdoors, gatherings outdoors so first of all, were seeing signs that, you know, the number was very good. But it was slower than number we saw over the last two months i would expect that to continue going into august and september. So were still about 30 million jobs shy of where we were in february so, you know, even before we Start Talking about a resurgence of the virus, you know, were slowing into a period where we still need a lot of jobs now we have back to School Coming that could either lead to a resurgence in virus counts at the very least it may be a head wind to Labor Force Participation as more adults are challenged to keep two income households going with a lot of students at home so we are after labor day going to face a pretty challenging situation even if we get the stimulus were hoping for. If we dont get that, then i think were really going to face challenges i think we should note that this week brought some better news, more encouraging news on the virus itself, barb if you look at nationwide, it looks like the cases really peaked two weeks ago were back down to 7. 7 in terms of positive rate positive cases versus the amount tested a lot of the hot spots have started to show improvement. Looks like the deaths are plateauing i bring up the numbers because theyve been really important for the market i wonder as an investor, what it says to you, whether its a reason to jump into some of the reopening plays which have lagged lately versus the stay at Home Technology plays . Whether there is something to do about it well, i think a lot of people are looking at that. The i know, you know, thomas slate is recommending rotating now into the cyclicals and value stocks because of that but i want to point out the number is still very high. We also do not have inn. Pla pll the things we need to contain the pandemic that is masking everywhere that is Contact Tracing and rapid and fast testing we dont have that given moments in time we will control it and certain locations. But we are not beating this. Im not convinced were heading into the fall where the flu season typically starts in october. Were not even done the first, you know, the first round of this virus we strilill have a battle on our hands. Thats going to keep people from going to bars and all the things that are holding back the economy. I think the recovery is going it continue to be slow. I do not see a sustainable rotation into the cyclical names. I think growth is crowded and expensive. But that is where the growth is. And so there may be a slow rotation, some nibbling into the cyclicals and uber or disney which is not much down side, but you may have to wait a while to see the growth there so im still very cautious jason, a year or so ago the slightest headline of tensions escalating with china would have spooked the market where we stand right now, it feels like tensions are higher than they have ever been and, yet, were near or at all time highs do you think stocks like apple which have a run up aggressively anyway and, b, have significant exposure to china should be pricing in a bit more of that ris snk. Risk . I think under normal circumstances they would, they should and they would. But i think from my perspective, if m2 is growing at 27 year over year and the fed Balance Sheet has gone from 4 trillion to 7 trillion, ten year treasury yields 56 basis points, im not sure anything i hate to say this im not sure there is a lot else you need to know. So i think those stocks are expensive. I think our relationship with china is changed i dont think were going to go back to the status quo having said that, youre fighting really this tsunami of liquidity that makes it tough to be short with anything barbara said that has any growth to it whatsoever guys, thanks so much all for joining us michael, jason, barbara. Great conversation up next, the tiktok and wechat ban is setting up a major showdown with china over Technology Investment and corporate powers we were justisssg. Well discuss next youve got a onesixty i. Q. , a masters in Chemical Engineering and youre technically a genius. And it appears youre quite the investor. I like to trade. Well, Td Ameritrade has pros ready if you need help, say talking through a new strategy. Just in case things, you know, get a little rocky . Im sorry on the upside i think thats waterproof. Maybe not. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. In a highly capable lexus suv at the golden opportunity sales event. Gets zero percent financing and make no payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. Welcome back tensions escalating between the u. S. And china after President Trump signed an executive order banning tiktok and wechat. The apps owned by chinese Parent Companies bite dance and ten cent this comes after the state department announced new measures to combat Chinese Internet Companies as part of the Clean Network program. Joining us now to talk about the applicati implications is ian bremmer. Is this marking a new peak in terms of the tensions between the u. S. And china over the last three or four years . I think it really is. Its an unprecedented move from the u. S. Government in the Consumer Technology sector we have never seen the u. S. Do this before. These are against indecrecrediby important tech firms a lot of people have connections here with people in china and probably will lead to significant retaliation from the Chinese Government which they had not done before. For example, putting american corporations on the unreliable entities ist, big american tec companies as well. You clearly can say that we have a Technology Cold war right now between the two largest economies in the world and given the importance of that sector and the growing importance of that sector through the global economy, that is a pretty critical move. The biggest things that happened in terms of globalization, biggest single step that i have seen in decades. Do you think, ian, that the chinese will be willing to pause until after the election to consider what retaliation that they might wish to enact is that a factor that market is perhaps allowing itself to rest easy on . I dont think so. Especially because, you know, we still have 90 days before the election and the steps that you have seen, the additional sanctions taking against hong kong, for example, the most important state enterprise, i mean this was all happening in the last week not just tiktok and wechat and the idea that trump is going to stop at this over the next three months when hes fighting an election, hes behind in it right now and sees china going as a core play for his electoral his reelection bid, theyre not going to sit on their hands. I dont believe it if you look at what the Chinese State media is saying over the last few days, the level of propaganda and the animosity coming from the headlines is much greater than anything weve seen in the course of the Trump Administration to date im trying to im trying to read between your comments. So in your opinion, President Trump banning tiktok and wechat, does it have to do with politics or National Security oh, i mean its clearly both. The fact is that china does have access by virtue of being a state capitalist and authoritarian government with these Big Tech Companies they have the ability to grab data we stop the chinese from buying grinder, you know, that popular dating app because people were concerned that the u. S. Government could be used to blackmail americans in government, politicians. So in this this is a continuation of that policy. But sar yashgs t but sara, the escalation youre seeing now is not a coincidence right before the election. The reason youre parsing between the comments is because both things are going on here. It reminds me when president xi first took office and he had this staggering anticorruption campaign, people were asking me well, is this really about anticorruption or is it about consolidating power . My answer, of course, was, yes the answer here is yes, sara weve seen headline grabbing deals over the last month. China announcing an energy deal with iran which laughs in the face of the u. S. Sanctions on iran at the same time u. S. Selling military equipment to taiwan which no doubt angers the chinese, much more than just political game playing this is seriously antagonistic behavior i mean what is the risk of this going more than just economic, more than just tech . The decision to send even secretary azar to taiwan that, is the highest ranking visit youve seen in 40 years to taiwan that was gratuitous escalation, unnecessary from the United States that is mostly about politics. Thats not really about National Security so the willingness of the Trump Administration to really take gloves off and escalate against china, i think that is much greater than most people have anticipated a few months ago when you add to that things like the South China Sea where the americans have the white house in the renalgion and say they accept International Court at the hagues ruling that a formerly that chinas line, they do not apply, the likelihood that we could see a military dustup that escalates is real. Its a tail risk chinese, of course, are nowhere near the military power the americans are and they dont want to get into a shooting war with the americans i want to be very clear about that but we also saw in the case of iran that President Trump felt like he could escalate significantly precisely because the iranians wouldnt be able to respond meaningfully against the americans. I worry, i do worry that in the next three months if trump thinks theres a meaningful shot hell lose the election, willingness to be risk acceptant with the chinese is miles greater than that of any president in our lifetime. A lot of attention on your piece for time the next global depression is coming and optimism wont slow it down. Why are you using such doomsday language here . And are you referring largely to the geopolitics as just laid out are getting worse or the economics . The fact is that this crisis which is the largest economic crisis of my lifetime is happening in a g0 world against this geopolitical backdrop that is so misaligned and so that is going to make it much worse. I dont think about the Great Depression being the only type depression i think of the depression, i think of something that is long lasting, its deeper, and also changes peoples lives permanently. And that is the piece of the Coronavirus Crisis that i think is so meaningful or the disruptions that come from technology. I think that all of those things are not going to come back to normal n. Two, three, five years time i think the peoples lives are going to be changed permanently by this. And that level of disruption that comes from coronavirus where i think this becomes a depression and all of the leaders that are saying i mean even larry kudlow just still saying its a vshaped recovery. No the way we get out of this is not to cheer lead. It is not to pretend and tell everybody that everything is fine and coronavirus is going to magically disappear. Its to act the way that Angela Merkel akd in president and others acted in south korea where were honest with our people and we let the experts take the lead. That, of course, has been but, ian, its not going to last forever there is a lot of hope were going to get a vaccine and Game Changing treatments in the meantime on antibodies there is so much ingenuity happening at the pharmaceutical companies. All these things can surely reverse what is happening. Theyre making a difference, of course. Treatment there say reason why were seeing much less mortality now than we did coming out of new york city that is the hospitalizations have been reduced. And mortality is reduced simply by learning more about how to treat people that have coronavirus. But the vaccine is not a Silver Bullet its going to be like a flu vaccine. It will work in 50 and 60 of the population but you dont know if its working in you or not. So even once you get a vaccine that works, and its produced and distributed around the world and were, you know, a year and a half away from all of that, true distribution, right good news. But youre still going to have people having taken the vaccine that wont know if theyre immune they need to behave differently than they behaved before with their kids, jobs, Consumption Habits i think absolutely there is more human ingenuity being thrown at this virus than we have ever seen before. It is staggering and impressive. But thats very different from letting p people believe that once we have a vaccine we can go back to our lives the way they we were. The vaccine is one harrow in our footwork and its a really important one. I cant wait to visit. We need to do a lot of things. Thats going to mean social distancing and masks its going to continue to mean and economy that looks a little different than what we had before less globalized. Ian bremmer, a lot of things that were all thinking and talking about. Thank you very much for joining us great to be here. A lot of fans of the color of your porch as well breaking news on warner media. Julia . Sara, jason kyler announcing a reorganization of at ts media assets and shaking up the leadership of two of the key divisions. He announced departure of Robert Greenblatt he had overseen the launch of hbo max. And kevin riley, he ran tnt and tbs and the direct to consumer for warner media tyler saying in a letter to employees, a note to employees this reorganization aims to elevate the hbo max brand and expand it globally now these changes could partially reflect the fact that hbo maxs launch was relatively slow compared to disney plus which drew ten million subscribers the first day n contrast, after one month, hbo max had some three million retail subscribers and four million hbo subscribers who had activated their max account. So sara and wilf, this is a plan to enhance the Consumer Experience across the brands and particularly hbo max back to you. Interesting moves thank you. Up next, mikes connecting to days jobs number to one specific sector in the market. And then new York Governor Andrew Cuomo announcing to day that schools will reopen next month in new york. Will it work will it allow people to get back to work . That discussion coming up. 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. Stocks closed with nice gains for the week 2 for the s p 500 mike, lets have a look at the Market Reaction to todays unemployment numbers yeah. Lets look at the trajectory of jobs in this country this year or in the last year or so. This is from charles schwab. Private sector and Public Sector payrolls from the high you see the shape of the rebound and the magnitude of the rebound. It its different scales but it shows you essentially we regained a third of the jobs lost maybe 42 i think overall. But not nearly all of them and certainly doesnt look like a v in it employment now take a look at this chart and see if the shape looks familiar its the equal weighted consume airy structure this is showing you a broad based consumer basket. Its got the winners in there like home depot and amazon but it is all equal waeighted. It looks similar you regained a similar percentage it seems to me the market is not out ahead had of the domestic consumer recovery. Its confident that theyre going to get better. It is paying high valuations for almost all stocks. But this sort of shows you its still contingent on labor market coming back more and obviously, for consumer and business spending to be supported potentially through another round of Fiscal Health mike, thank you so much for that one still to come, schools will reopen in new york this fall allowing the state to further open the economy that comes with the own risks. So well discuss on closing bell after the short break. 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New York Governor Andrew Cuomo announcing schools will reopen for in Person Learning this fall in new york. Cuomo noting that schools can decide to open as long as the regions maintain a rate of positive coronavirus tests of below 5 as recommended by the world health organization. Meanwhile, other states like mississippi are scaling back their school plans following a spike in cases during their first week of school lets bring in craig spencer, director of Global Health and emergency medicine at new york press betearian Colombia University medical center. Always good to have you back thank you for joining us as an e. R. Doctor who fought during the worst of this, are you comfortable with governor cuomos decision to reopen new york schools i certainly think and really want our kids to be able to go back to school we know its so important for their mental and Emotional Health there are places like new york that can do this safely right now. Were in a very different place than we were in march and april. We have less than 1 of test donz in new york that are coming back positive. That means there is very little virus in our community that being said, its going to be pretty easy to open up schools. Its going to be really hard to keep them open its contingent on all schools to have really good protocols and really good plans for what happens when a kid or teacher n ininevitably shows up and tests positive or multiple kids or a class tests positive or faculty ends up hospitalized this will happen in different schools, not just in new york. But all around the country we need to be thinking about that in advance and making sure we have safe protocols in it place that are focused on the safety of student and staff and the families im still waiting to hear from a lot of places to see how that is going to work here in new york and other places what is your latest thinking and what are the studies showing as far as how transmissible it is between kids and Elementary School and how severe the symptoms are we learned so much about coronavirus the last couple months the most of it has been in adults, especially sick adult, those most likely to die from this we dont know a lot about kids were learning a lot more. We know that kid can get the virus. They can transmit the virus. They harbor it in their bodies and can pass it along. We know there is a big cdc report that came out today showing that kids can get very sick kids get hospitalized likely that theyre hospitalized is one in three which is very similar to what it is for adults going into intensive care. Kids can get it and can get sick most important i think that i think were learning about kids is just like in adults with the disproportionately impacted communities of color, black and spanish americans, we see a lot of infections are happening in the same communities because of the same modes of transmission and so anyone that is sending their kids back to school and anyone that is overseeing this process needs to be thinking about the fact that this is disproportionately impacting those certain communities and we need to have plans to make sure that we keep them safe because the populations have already been marginalized. Dr. Spencer, as you said, less than 1 of tests in new york are am coulding bacoming be what level does it have to be below for you to think that its worth opening schools in another state . Is 10 too high . 2 too high . We dont know weve been saying 5 i think honestly even 5 is probably too high. Ideally you want it as low as possible 1 is probably right now as good as were going to get in most places there is a lot of other places like mississippi and texas, florida, alabama where the Positivity Rate is over 5 , over 10 , over 15 and some places 20 n those places it is absolutely crazy to try to think that we can safely send kids back to school they will show up with the virus. Theyll trans mimit the virus a they will pass this along to teachers and family. Weve been saying for so long, we all want the schools to open. Everyone wants schools to open Public Health experts, im a parent as well but with he need to make sure that were doing it safely sending kids back into the class is a recipe for disaster and its bound to fail how much longer can new york stay at 1 were reopen were in phase four. Thats been going relatively well but as this continues and as schools open and as cases grow in many other states in this country, what is your expectation for what happens to new york into the fall all of this really depends on how well we continue to do the same things weve been doing over the last few months, masks, social distancing, washing our hands. I have a lot of concerns, of course, once with he do open schools there will be some more transmission im more concerned about what happens this fall and winter if we have a really bad flu season and people dont get their flu shots and we have this mix of coronavirus and flu and then this could potentially cause some really big issues in our communities and in our hospitals. As of right now, i think we can. I encourage every time i walk to work or go on the streets, the majority of new yorkers are wearing a mask and doing the really important things that slow down transmission we have to worry about complicity people are getting fatigued with all of this. As long as we keep this up, we can keep the virus down. As soon as we let up, thats what were learning from other countries, the virus will come roaring back dr. Craig spencer, thank you for joining us thanks for having me. Still ahead on closing bell, black line had been a big work from home winner this year. They delivered strong numbers this morning shares though fell slightly after the ceo announced a transition plan that of course had been up sharply year to date fell 13 today well discuss that coming up and on wednesday, august 12th, join cnbc Small Business playbook virtual summit. Providing Small Business owners with resources to survive todays crisis and how to thrive tomorrow go. To cnbcevents. Com smallbusinessplay book to register welcome back time to get a update from sue herrera. Heres whats happening at this hour. Of a former employee of the Los Angeles Angels has been charged with supplying the drugs that killed pitcher tyler scags last year a former director of communications for the team is charged with illegal possession with intent to distribute. The team calls scags death a tragedy. A Louisiana School district delayed the start of the school year at 19 teachers tested positive or were exposed to the coronavirus. School Board Members voted unanimously to push back the start of classes by a week after educators and parents said teachers are not ready to go back to school and a searing heat wave in london has the zoo keepers there getting kind of creative to keep their big cats cool. Meaty icicles, yum, are hung from custom built seesaws that also let them practice hunting skills youre up to date. That is the news update this hour its like the hottest its been in like 17 years i know. I have seen the headlines and also been texting with various people it got up to 35, 36 or 95 to 100. Its not a good place to be when it ghaets hot. We dont have as much ac its not the norm. It can be pretty uncomfortable yeah but very rare days we get up there. Im sure it will be pouring rain and cold tomorrow. Sue, thank you ncht ha have a great weekend. Inside a stealth rally the Software Stock is climbing pretty steadily throughout the course of the year pulled back today. Well discuss and explain coming up i had saved up some money and then found the home of my dreams. But my home of my dreams needed some work sofi was the first lender that even offered a personal loan. I didnt even know that was an option. The personal loan let us renovate our Single Family house into a multiunit home. And i get to live in this Beautiful House with this beautiful kitchen and its all thanks to sofi. You should be mad they gave this guy a promotion. And i get to live in this Beautiful House 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. Shares of black line falling today down 13. 6 after reporting q2 earnings and executive shakeup at the top. But for the year, this stock has been an under the radar winner climbing more than 50 as more Companies Accelerate the Digital Strategies joining us no you is black line founder and Ceo Therese Tucker good afternoon i wonder if. Stock moved down so much because you announced youre stepping down as ceo. Why did you make that call well, you know, sara, i dont think so this has been a multiyear Succession Plan where weve brought in just some incredible executive talent i really think that its just a combination of market factors and unsescertainty about the future but overall, were very long term focused im not worried about that st. So lets talk about your focus which has driven this enormous run in the stock and business lately. What do you do for Companies Like under armour and other companies that have adopted your software especially during this time during the pandemic unless you work in the field of accounting and finance, you dont realize how manual and paper based many of their processes are. We provide software that automates and centralizes so that accountants can be liberated and focus on the things that they actually enjoying doing we have more than 3,000 customers. And by automating Companies Get better Financial Results as well as higher employee satisfaction. Who do you consider your biggest rivals is it traditional Accounting Companies or do you think the likes of salesforce, ssp, oracle, et cetera, will pivot and start to offer these type of accounting specific services as part of the entire package of subscriptions that they offer and that can be quite a back door threat to you actually, we partner with all of the large vendors, some of the ones you listed are partners and customers. The reality is most companies have multiple systems. Its difficult for them to actually do what we do and so, no, we like to partner with them instead. So what kind of growth are you projecting at this point and how different is it now that these companies are all spending so much on their Digital Services like what you offer we certainly see both Digital Transformation and also, frankly this pandemic we believe covid19 is a great long term accelerator because companies are recognizing that manual processes are simply not sustainable. But in the near term, were being pragmatic about our growth we dont know whats going to happen to corporate budgets or, you know, some of the larger transformation projects maybe put on hold. Over the long term, i think we have the potential to continue very robust growth were still in a very untapped market and actually to wilfs point, our biggest competitor right now is spread sheets i had a wild card question given that as im sure you were aware one of the stories grabbed headlines in 2020 is the fraud at wire card and whether if a company subscribes to a company like yours whether it is harder for fraud to take place. You know, weve had some customers who have utilized blackline and discovered fraud in exactly that fashion. Because when you got everything centralized instead of in thousands of spread sheets spread all over, you get much more transparency into what is happening. There we go wire card should have hired you or maybe not then they would have been found out earlier. Thank you so much for joining us much appreciated thank you still to come, could President Trumps tiktok fight to end up benefiting other platforms in a big way n h data reveals the apps g gezsay migrate to. And were heading into a Fresh Trading week when closing bell returns. At cdw, we get that employees working from the road are a major security concern. Cdw can assess your needs, then design and implement 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] try natures bounty hair, skin and nails gummies. The number one brand to support silky hair, glowing skin, and healthy nails. Beauty comes naturally, only from natures bounty. 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Transactions with tiktok may not sit too well with Gen Z Millennials the latest survey shows that 69 of people ages 1635 are most likely to use tiktok compared to other apps most of these results are kind of what you would expect and not as pronounced or stark as would be possible that 51 a are upse about the potential ban. Could be a lot higher. Could be a lot higher i think the story here is instagram reels. On a previous show you talked about how instagram took the story idea from snapchat so effectively. 24 of Young Americans say they prefer this over tiktok. That number really surprised us. The question is a short Video Service like tiktok and its competitors, it has a winnertakeall feel to it the question is going to be, i think, really where do the young stars from tiktok go what were seeing in the data beyond the survey, these young stars who become celebrities over tiktok, they go to instagram reels or triler. That could change the entire equation what is triler . How hard is it for tiktok to do what it does with this algorithm that makes it the biggest and faster growing than some of these others the technology is not that hard to copy what we notice in our research is when something becomes a product that takes on a life of its own, everyone feels like theyre missing out if they dont get on can triller or byte use this to take over. Like in life, there is a political divide even this this issue. Were noticing young republicans are much more likely to want to leave tiktok than young democrats. This privacy issue, how we think about it a lot is like privacy is really important, but look at the data with Young Americans today. A lot of them are concerned about the privacy issues from china but not enough to delete tiktok 88 have said im aware of the privacy issue but im not willing to delete the app. Theyre kind of living in a world, i would argue, where a lack of privacy is more the assumption than privacy being the assumption more for like people of the gen x and baby boom generations. Do we know how many loyal fans have tried the new facebook version and do we think the results of the survey could change once theyve given the new one a go people can be very tribal in what ty use. A lot of these young users have such a high trust with instagram, theyre going to move to it right away and at least give it a shot the big question is they have tried copy cat products in the past on this product the question is, is it actually better to be separated . Instagram does what they do really well, photo sharing millions of people love that product. Tiktok has a great business and its exploding in growth do those products exist on the same platform, or are they better existing separately i think thats where triller and byte, these new upstarts, theyre really carbon copies in many ways. Theyre very similar in functionality. What were noticing is if the stars go there and the numbers go there, these platforms are built on everyone being in one place. I think another data point id like to give you is microsoft has been the big name were talking about. In fact, microsoft could help in this way 33 of Young Americans are saying if microsoft buys tiktok, theyll actually feel safer using it now, most of them dont care about the safety of the issue but it is a meaningful number. If microsoft purchases tiktok the whole conversation with byte and triller could be out the window. Thank you for joining us. As we wrap up the week, mike an to santoli turned out to be a strong one we did see a strong pormerformae by the industrials were wondering if that is going to be a new phenomenon or just a one week sort of move. I think you have to be cautious about some kind of definitive reversal going on there is a sense when the big Growth Stocks have inevitable pullbacks, yesterday nasdaq was up 1 and gave almost all of it back today, will other groups be there to kind of recycle the catch and support the market it seems like the culmination of a rally as opposed to the start of something new but well have to see today i want to be the first to wish you guys a happy birthday it is both of your birthdays the team put a something together there thats so nice. Im looking at the various sort of favorites and emblems there. They got it right. Do you know what . I feel like we both like ice cream, taylor swift. Why did you guys pick the most serious faces it looks like were so angry those are great. We have seen phantom of the opera together. We have it was wonderful i think the seriousness is its really fitting for your age now. Youre getting to that point where its time to be a little less frivolous were actually not the same age. I know that i know that. Thank you, mike we appreciate it as we said before to all the other folks who share the birthdays, happy birthday to them were out of time. Have a great weekend. Fast money starts now i am disappointed there are no cakes with faces on them this year, guys happy birthday coronavirus talks grinding to a halt will the d. C. Dysfunction derail this rally plus, another big week of earnings and names that need to be on your watch list. Later, meet the caddy of electr