Transcripts For CNBC Squawk Box 20240712

I got some sleep you didnt miss much this last week. Kind of Nothing Happened not really actually. What week so much happened. What week are we in its going to be 52 for 52 at the end of 2020 in terms of crazy weeks. Thats true. S p was almost closing at a high im faking now like you. Im not in new york city do you like my backdrop . What do you think of it . Thats what im saying. You look great you look great you look fabulous. Okay. Is this are you old enough to remember huntly and brinkley what are we . What are we trying to pass our self off as here what do you think . Chancellor and tv people were probably trying all right who knows who knows. Let me tell everybody about the craziness of what happened in yesterdays market because the swings were wild stocks were up, as joe was mentioni mentioning, we flirted with the height of it most of the day but then turned late lower late we closed lower later in the day. At one point we should tell you the s p 500 was within 1 2 a percent from the interday high and ended lower by. 8 of a percent. The other wild swings, tesla announces the fiveforone stock split and the value of the company goes up by 16 billion in the matter of minutes do people not understand that when theres a stock split it doesnt do anything to the underlying business at all anyway, u. S. Equity futures, take a look at where we stand today. Does look like were going to open up higher and well see where we end the day dow up 266 points higher nasdaq up 133 and s p up 23 points higher. Treasury yields, lets show you where it stands right now. On the 10year note, its at. 673. We did back up a little bit but not much joe . Its always been that way, it seems like, andrew, in terms of splits i mean, it does allow smaller investors to get in. Used to be important if you bought 100 shares, round lot. Totally tough now even for berkshire hathaway. In this day and age of robinhood where theyre selling you shares of shares right right. I would have thought the whole idea of stock splits didnt matter. I can understand why it would go up a little bit. 16 billion worth of market value. In this market its 6 or 7 it briefly went up. Where is it now . Up 5. 5 . Then the other reverse splits, you see the same thing happen every time you watch a reverse split happen, they always go down afterwards. People get a chance to go in and sell it. If its a 3 stock, you get to go in and sell it. Reverse 10 to 1. Then its 16 before you look around you know what, andrew, this delay is just a killer, you know what i mean . Were going to be talking over each other, more than we normally do. I guess we just need to should i say out, stop, or something . How do you think we should handle this . What do you think we should do supposedly howard stern had a way that they never talk over each other do you have any ideas for this what are we going to do . Come up with a safe word. Whats our safe word lets make it a clean one just you know look at you. Whats your term . Is that syncoro this morning . What was that what was that other stuff you had . This is coffey. Oh, okay. Thats the other one thats what its called. This happened yesterday, i was watching political story of the morning democratic president ial hopeful joe biden picking Kamala Harris as his running mate fulfilling his pledge to select a female vp candidate and making her the first black woman ever to appear on a major party ticket. In the announcement biden said he was proud of harriss record as californias attorney general when she, in his words, took on the big banks, lifted up working people and protected women and kids from abuse. Biden and harris will make a speaking appearance in delaware this afternoon joes going to be out and about. So that will be something to tune in for. And the moment that sports fans feared arrived yesterday. I can tell you this. I kind of get a sick feeling because you look forward to things like this two of the power five College Athletic conferences announce that theyve postponed fall sports the big ten and the pac12 said they would consider playing fall sports in the spring thats like an obvious jie moron. It is. Them ohio state, michigan. Beckys not here im going to throw in rutgers kind of as tongue in cheek, powerhouse teams and oregon. As of yesterday. The other three Major Conferences were moving forward with plans to play a reduced slate of football games. This means the College Basketball season will be pushed back ive seen cases made, im sure we disagree on this, ive seen cases made the lsu coach and lou holtz and others, they tested a lot of notre dame players, they got 1 3 of 1 or something there are people that say in the program they can these kids will be, you know, around. Not in the program, theyre going to be out and about. Right. We know what kids like to do in college. Yeah. I dont know if it really and then theres so much money involved that goes to good use at a lot of colleges, not just for the Football Program but for other programs then my own selfish, you know, reasons for just i mean, we miss it. I dont know how its going to work i think the sec is still going to play, the acc, theres still going to be its so weird right. The cardinals when do the cardinals finish playing all these games . Seven inning games yeah we may not be on the other side of this im not sure im not actually sure what the answer is. We had the president of cornell on and a couple other University Presence allowing them to test might be better. I dont know either its going to work or its going to be the marlins, right . I dont know right i loved her. I loved her when she was on. She was the best thing to come out of cornell ever. I mean, you know, in terms of the management types and stuff. Yeah. Not just in terms of graduates. No, but i thought she was great. I thought she was great. A kids got to go to school, andrew im telling ya, if theyre stuck at home left to their own devices, i mean, they need to socialize. Im feeling ive got grogan here hes no mack his haircut is even funkier i cant get anyone to take a shot at you. Hold on hold on. You have a whole you have a whole staff, is that what youre saying, today . You have a whole team . Just today. All the acoutrements . Just today. Makeup, hair, catering right no, just today. Security . I hope you have security all the paparazzi. You know gunther and freddy if you want to see security they dont like when the camera guys come. They take their you know, take their life into their hands. Anyway, maybe we all can get this russian vaccine are you ready to sign up for that, sorkin lets try it. The market moved on it. Lets try it. Well talk about that. I know. I know well talk about all of this in just a moment. The vp pick, whats happening with covid Everything Else. Dr. Scott gottleib is going to join us right after the break to continue that conversation he had with becky about russias claims of a vaccine. The latest case numbers in the u. S. The plans for opening schools in the fall as joe and i were just talking about. As we head to a break, check out price of gold. Gold plunging yesterday pulling back from fridays highs rising yields over the pandemic and the strengthening dollar well be back right after this 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. An update now on the pandemic in florida officials reporting the deadliest day yet. Seven day average dropped by the 30 . Some Testing Centers were disrupted by hurricane isaias. Did you ever get that, sorkin, isaias looks like isaiah. I made a mess of it every time the current hurricane you know what, we need to call hurricanes something or else you say, the one from february no, it wouldnt be february. No, the one from august of 2011. You really do need to its like i figured its like a band almost like a rock band. If you dont have a what if you just named the four people in the band . Youd never get anything i dont know branding its branding. Like Andrew Ross Sorkin. I hated this one. This one, we had our electricity out for a week, joe, because of this this storm. I know. A week. It moved past i got it back yesterday it moved past where i was we were worried. You never know with these things then it moved right up and then i think it was headed for North Carolina and then i heard what happened here right. And the cleanup that had to be done it was headed right for this part of the east coast new jersey and Everything Else new zealand, andrew, has delayed its general election process after the country reported an outbreak yesterday after 102 days without any local transmission the Prime Minister said she was hoping parliamentary steps that would have led to an election said its single digits. Under 10 officials are investigating the possibility that the cases were imported by freight. Weve had this discussion before about whether salmon or weve had weird i dont know what to believe anymore, andrew i dont know i dont know what i know that social distancing and people that seem to be you know, i have no problem with masks, social distancing i dont know about wiping down the supermarket stuff anymore. Im still doing it, but could it be on there . Do you know . I dont know. This whole freight idea doesnt make sense the idea after a couple hours its supposed to dissipate off of actually a tactile thing makes no sense to me, that thats the reason. I always had wondered the entire time that new zealand had these great numbers whether was that a function that they had missed a couple tests are people not hiding in the shadows but how does this really happen then for it to emerge again given that they have been on this lockdown, how does it happen could it really be imported that way . Thats what china said with the salmon youre right we have a doctor in the house who may be able to shed some light on it. We should also tell you before we talk to him, moderna shares are soaring this morning after President Trump announced this at a News Conference yesterday this evening im pleased to announce that we have reached an agreement with moderna to manufacture and deliver 100 million doses of their Coronavirus Vaccine candidate. The federal government will own these vaccine doses. Were buying them. Recently we also secured partnerships with jonssh Johnso Johnson as well as sanofi and gsx to support the large scale manufacturing of their vaccines. Doing very well on those vaccines tremendous promise in every single one of them, and we have many of them theyre years ahead of schedule. Moderna said the deal is worth 1. 53 billion. Will give the government the option to purchase up to 400 million additional doses joining us to talk about that and so much more, dr. Scott gottleib a cnbc contributor its great to see you, doctor. Thanks for joining us. Joe and i have not had the opportunity to talk to you since we heard about president putins vaccine. Give us the latest on that and the market, as you saw, moved at least in the morning on that news do you have any more confidence than you did yesterday morning about it well, look, i think the vaccines in the equivalent of what we would call a phase 1 study. It looks like its less than format there is some complexity to this vaccine. There are two different adeno complexes. This is the platform being used by johnson johnson, as stra zen anything ka and merck. And theres a lot of complexity to it. If you use a viral vector that isnt attenuated enough that the body recognizes its a virus that its seen before, the body can literally attack the vaccine and render it largely ineffective. Thats whats happening with the chinese vaccine. They use a common virus that a lot of people have been infected with it before a lot of people who have seen that have whether its effective, safe. I dont think its ready for primetime. Its not ready to be put in thousands of patients outside of a carefully controlled Clinical Trial. Were a lot further ahead. We have vaccines in phase 3 studies that have probably already been dosed in thousands of patients. This vaccine is basically leading the equivalent of a phase 1 study right now and what theyre calling the approval we would call a big phase 3 study one of the things were hearing is some of the people that are getting access to this vaccine are not just people who either have it or need it in this in the moment but senior officials, if you will, and other elites in the country are taking this. By the way, also told that there may be a booster involved in it. How do you think about that . Well, we wouldnt that wouldnt fly here. There are strict regulations around who can get access to an experimental product the adeno viral products require a second dose. It doesnt surprise me this might also require a second dose part of the reporting was they were going to make this available under what theyre calling the approval to certain higher risk individuals like front line responders. Thats something that you could potentially see the United States do once we have more data around large phase 3 trials. There might be early authorization if theres an indication that theyre safe and effective for certain Higher Risk Groups. If we did that and issue an emergency use authorization, that would, again, be in the context of some kind of Data Collection probably a large registry where you would make it available to a Higher Risk Group to provide some benefit you would still be collecting information. Typically when you have a vaccine trial in the United States, what you do is you have a component of the trial thats a randomized placebo control trial where you have an active control. Thats whats underway with the 30,000 patient trials. Alongside that you might have an open registry where you give the vaccine to tens of thousands more people not in an oversized data sense get more safety data we didnt do that here were just doing the ram come toized portion if they were made available earlier, its possible they could be made available under an emergency use authorization. We have more data showing theyre safe and effective in a large registry to hopefully provide a treatment benefit. Scott, i dont want to get too in the weeds here. Adeno virus is a dna virus, is it not no, its a viral vector being used to deliver the gene sequence that codes i understand that but the adeno virus itself, are they putting a little stretch of the coronavirus spike protein nucleic acids into the adeno virus and then its expressed once it goes in and is that how its working yes the dna virus is like injecting the naked dna similar to an rna virus. Theres a couple of dna viruses in development but theyre early stage. No, i know. You would have to somehow since coronavirus is a is an mrna virus, im wondering they must have had to reverse engineer it. It just sounds dangerous to me that you dont know exactly what you youve spliced into it whats the big down side to what could happen if the vaccine itself is attacked by the immune system, thats one thing could it be could you have a hyper immune system from this if it and cause your own si cytokine storm or could it somehow go into the actual dna of a patient and, you know, cause some kind of problem there . Because id rather just have a little stretch messenger rna like the moderna. Here you could have gotten the epitope wrong. That will elicit some of the things were seeing with coronavirus. You have to make the viral vector nonreplicating if you got that wrong, you have a replicating viral vector its possible you could actually make people sick with the viral vector now presumably theyre using adeno virus that wouldnt make people very sick, but anything if you give it in a high enough dose. Talk about russia here. I figure, you know, it just you know, dont watch that will smith movie, i am legend. Should we be are Football Players safer to be in the program . Are they safer not being do you agree with the pac12 and the big ten at this point or its just a gray area . Oh, i think its a gray i think its hard to say whether people are safer there because we conduct other tests clejts are getting people on campus and creating a bubble i think there was an opportunity to do that here. Obviously a sports team and the locker room, theres an environment where you could have large outbreaks, people are in close proximity. You can test people regularly and you try to get compliance around choels on them. I think it was possible it restart the teams. In doing that, youre going to be diverting a lot of resources, testing resources away from a lot of uses into football and thats where you have to make a judgment and say i think its an appropriate thing to do. From a society standpoint its necessary to start these games you could make that argument i wouldnt second guess the decision they made i think there was a chance to do this reasonably safely. Doctor, two other real quick questions. One, new zealand, joe and i were just talking about it. Their numbers have been so good for what seemed like so long and then all of a sudden now it appears that theres a hot spot of a family. The country making some kind of claim that it might have come from freight as opposed to, you know, Community Transmission maybe its Community Transmission thats an argument china made around salmon being imported does that make sense to you . I find it hard to believe with an Infectious Disease like this, its not hard to get it imported into a country. Its possible it was circulating at a very low level and now its being manifest but you could have a change of propagation that are mild, asymptomatic before you start to discover symptomatic cases. I find it hard to believe that it came in on some inanimate object or some kind of food source final question for you. Youve seen debates around the country with teachers unions right now about whether they should go back or whether they shouldnt. Theres been a lot of push back. If you were negotiating with teachers unions, what would you be telling snem even if you were advising them. Well, i think the teachers have reasonable concerns about their own safety and they have reasonable concerns around their students safety id be trying to provide things that have safety in the classroom. Make sure teachers have proper protective equipment give some optionality. If you are with a school that has distance learning. If teachers feel theyre high jer risk we need to try to open the schools, but we can do it by retrofitting hvac systems in the schools, having masking yiermts, trying to move classes outdoors when we can when the weather is still conducive to that. Dedense si fi dedensifying it and dont allow the entire School Population to mix. Theres a lot we can do. We have to run. If youre a betting man, there are some schools hoping to be in person this fall do they make it through the whole year not with just a day or two out, i can see that happening do you see long stretches where schools are going to have to close down again i would i would guess that they will. I think they could get pretty far into the school year, but i think as we get into the winter well have more challenges before we get onto the other side of it we have another four, five, six months to go this is going to be a 2020 event. Hopefully once we get into 2021 we start to get it behind us. I was worried you were going to say that. Dr. Scott gottleib, always a privilege to spend time with you. Coming up, fallout from the pandemic on the high end auto market robert frank, one of those guys with two first names joins us with a special report. And were watching the shares of boeing this morning. The company logged 43 order cancellations for 737 max planes net orders, 836 planes dow futures up nearly 300 points right now. We will be right back. 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. Weve just been finding a way to keep on pushing. Pampers the 1 pediatrician recommended brand, helps keep baby skin dry healthy so every touch is as comforting as the first pampers. The 1 pediatrician recommended brand its the biggest week of the year for classic cars. This year the monterey auction will be virtual. I dont remember i think, robert, did you used to go out there this hits home this hits home probably for you. A nicejunket to monterey is what the doctor ordered occasionally, right . Reporter yeah. You and i both love pebble beach. This year its he not going to happen classic car sales topping 700 million so far thats down only 8 from last year prices also holding up well. This usually as you said is the biggest week for collectible cars usually held in monterey but this year it will be entirely online. Gooding and company just sold this 1966 ferrari for just over 3 million that became the most expensive car ever sold online now they also sold five cars for over a million they proved that collectors will pay seven figures for cars that they havent seen in person or driven or inspected. Sothebys could set a new record with the pro drive race car estimated at between 3. 8 and 4. 8 million. Also headed to the virtual Auction Block is a 2014 pagani estimated at nearly 2 million classic cars like a lot of other hard assets have benefitted from low Interest Rates and all of this liquidity were seeing in the system right now plus, they are a good socially distanced hobby. Online sales have also brought in a new wave of younger millennial collectors. Rm saying the average buyer age has fallen by over a decade just in the past few months millennials are driving up costs of 1990s cars, old broncos and they love vans, the van life back to you. Oh, boy preowned, these things. Reporter preowned. Youd at least get a new one. How are other collectible markets . Art. Moneys got to go somewhere. Got to be doing well reporter youre absolutely right. Money has to go somewhere. You look at the art market they wrapped up an incredible first half sothebys could be equal to or even above last year in terms of revenues everyone was surprised that people are willing to pay seven figures whether its a 30 or 30 million for a painting, 3 million for a car. People thought you wouldnt do this online without seeing the stuff in person especially for cars where condition is so important. Most of the buyers buying the cars havent ever seen them before and thats the big surprise thats whats going to change this industry permanently after covid where its a lot less costly to sell this stuff online having to hold a big event and a big physical auction i think theres going to be lasting changes from all of this, even once we get a vaccine. I mean, robert, weve got to go youre not telling me that one of those one of those like hippie vw if its a mint vw van 200,000. 200,000 for the top vw vans right now. Youre kidding me im not kidding you. With the bong i thought you were kidding thanks, robert frank well thats crazy. Andrew okay. When we come back, a lot more on squawk box. Stock futures are sharply higher this morning well talk strategy next, and as we head to a break, a look at yesterdays s p 500 winners and losers 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. Good morning u. S. Equity futures at this hour, looks like a carbon copy of what we were looking at yesterday until the end of the session when we lost all the gains. And, actually, broke a winning streak but this has been the default trade for quite a while. I forget how many days in a row the s p had traded higher before yesterday. Up 290 now on the dow. The nasdaq sharply higher and the s p up 29 points tech stocks extending their slide in yesterdays session joining us to discuss the move lower and the rotation that appears to be a nascent rotation taking place in the market joanne feeney, partner and Portfolio Manager at Advisors Capital management and greg Branch Partner at 1847 financial. Joanne, i said nascent what have we seen recently in the markets . Is it broadened . Does that make it more sound and feel a little bit less stretched if we see some rotation in some of the laggards . Are we seeing that yeah, good morning, joe good to be with you. You know, we saw this rotation once before in early june after covid cases declined the market really took off and we saw that spread to other sectors beyond the big tech names. You know, were seeing some of this here. I think investors are encouraged by the stimulus talks, by the decline in covid cases but as you can see, theres still a lot of noise in the market the selloff at the end of the day yesterday, particularly in tech names, i think, reflects that broader concern dont forget the whole market has not really gone up as much as that headline number would suggest. High dividend stocks, for example, are down 25 . And when we talked to advisers their clients are looking for not just growth but some of them want to lock in some yields so they can live off that in their retirement we like to look for stock vector can reverse very quickly broadcon gives us a yield. It may reverse like we had in june what we want to do instead is find the names that will deliver both secular growth, exposed to a lot of big trends going on like the move to online, like the streaming and potentially lock in yield at the same time from a company like broadcom. All right so, greg, just overall where is the market the state of the market at this point if we do see some of the laggards, i dont know, the most worrisome sectors that havent participated instead of the stayathome sectors if they start catching up does that mean its broadening and this is a real advance that were seeing or do we still worry about this being fed orchestrated and a huge air pocket under the averages . Right so to some extent weve actually seen this movie before in 2010 to 2012 you saw tech under perform as other sectors in the economy started to recover and bounce off the bottom and demonstrate hyper Earnings Growth. And i think were setting up for the same thing again we talked about this four or five weeks ago when we were noting the overall disparate of value and growth at near historic levels. Joannes right there have been squiglegles in between. So the unique things that youll have as we get past the election is youll have sectors poised for triple Earnings Growth so when we look at 2021 and overall the whole investmentcommunity will start to do that after the election, you have consumer discretionaries expected to grow at 100 . You have financials expected to grow at 50 trading at half their normal average 1. 1 times price to book. Youll have utilities growing at 100 and utilities growing at 600 i think were setting up for something we saw similar to 2010, 2012, the s p 500 is going to grow at 35 versus the tech names growing at 15 investors have started to wonder will those names have the growth to support the outsized multiples. Weve got to go, but i just so i guess we really cant get into this so im not even going to go there, but i was just trying to figure out whether the market is comfortable with a biden harris possible presidency or whether were still going to know whats going to happen after labor day . I see both premises posited. We cant talk. Weve got to go. Throw that out there nor nefor t time thank you both andrew we will continue that conversation, i imagine, maybe every day and every minute and every hour from now until november. Coming up though in the meantime, the latest on President Trumps potential wechat ban and how restricting the popular chinese app could affect business. Well talk autt ghafr e eak. Irit te at leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Coming up, whats next for the executive orders on tiktok and wechat or wechat were going to talk to a state department oicl ouwhffiaabt at you need to know but inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. vo for a prospectus because we know you want to get back to going your speed. Steering life at 10 and 2. Youre prepared for this. And so are we. Soon youll get back to skipping the counter without missing a beat. Back to choosing any car in the aisle. Back to being the boss of you. Go national. Go like a pro. Welcome back to squawk box last week the president signed the executive order that would ban wechat from the United States the app is extremely popular in china and for American Companies that do business in china. We have a closer look. Reporter thanks so much, andrew Chinese Media has been running poll asking if the ban is imposed would you choose your apple iphone or wechat so far 94 said they would choose wechat because its so essential to their daily lives one Business Executive compared to it me saying that it was like water or electricity if youre living in china its almost impossible to survive without wechat its a super app people use it to pay for their taxi tried work and their morning cup of coffee. I can also sort all my utility bills, and text my friend about my purchase. I can use wechat to help during the pandemic he says i cant going. Wechat has an estimated 700 million users in china so its important for any business here too. American fast food chain shake shack opened up their franchise. Not only do companies advertise directly to customers on the app they open stores Marketing Firm ogleby estimate 40 of sales go through wechat big reason why u. S. Companies fear a wechat ban could put them at a serious disadvantage in china against their competitors despite privacy concerns and, of course, there are privacy concerns politically sensitive content is monitored on the platform as well as all platforms in china when i speak to businesses here, andrew, most people say theres a certain assumption that whatever they write is not private. And they say thats not necessarily loin for wechat but for pretty much every platform that they use. At the same time its something that they would do watch but not something that they think should be a hindrance to their businesses here. Okay. Thank you for that report. We will continue this conversation right now keith crock, state department under secretary for Economic Growth and former ceo at docusign trying to find out is there a middle ground here is there a way to allow effectively a wechat on the platform and by the way is there a way to allow to it continue on iphones in china but not necessarily iphones in the United States . Is there a way to lead tthread e needle thats up to the china government as you know, chinese has a National Intelligence act that requires any company stateowned or otherwise or any chinese citizen to turn over information proprietary property or data upon request to the Chinese Communist party or the government or actually the pla or suffer the consequences so this is really a big issue. And its been out there for a longtime and its about more than just two companies. Secretary pompeo announced the expansion of the Clean Network last wednesday, a day later you saw the president write the executive order for tik tok and wechat and what this really is, its comprehensive approach to address the issues with the long term threats in terms of data privacy, security, human rights and trust worthy collaboration in terms of economic, the Economic Impact some might say economic damage im thinking of the apples and the like. As i talk to Business People in the u. P. S. That do business with people in china look wechat is water. We need it without it we cant communicate with them. Is the view that china will effectively change the app its using, use cleaner versions to communicate with american. Does it put American Business at a disadvantage and is that a worthy is that a worthy impact well, you know, i think one of the big things, as you know ive spent 30 years in silicone valley Building Companies and one of the things that i say to my fellow ceos out there, you know, we always say corporate responsibility, social responsibility its also National Security too. And, you know, what china has done is they created a surveillance state in the country of china huawei is the back bone. Its appendages are these apps thats why secretary pompeo announced the clean app, clean store with this, clean cable, underwater cable, clean cloud and clean carrier. So, you know, these are the issues that were facing and now what china is doing with that surveillance state is they are extending the china one way fire wall where all the data can come in but none can come out and all the propaganda can come out but the truth cant come in. So this is a comprehensive enduring strategy thats backed by a coalition of partners all the Clean Network theres over 30 countries right now, 40 telcos, oracle and so this is a big effort and its long overdue. You know, i see the intellectual property theft out in silicone valley but im a businessman running economic diplomacy for the United States and ill tell you what what ive seen with the Chinese Communist party has done is beyond my imagination. Keith, its a longer conversation we would love to have you back to continue it i would understand long term what you think will happen with the relationship with china and the moves that the u. S. Are making right now will for the hand of china or will china force our hand when we do that conversation when you come back we appreciate you joining us this morning, keith very, very much. Thanks thanks so much, joe and andrew appreciate it. Joe youre very welcome thank you for including me coming up check out the stock futures update this morning after yesterdays late slide andrew, did you hear me say like joking i said what app because i said wechat. You understood i caught it everybody is i know you. I know you they are all looking for a ron burgundy they want a ron burgundy so badly. Ill stop doing it everybody else will not get it, anyway anyway, were on record watch for the s p. Check out the levels the recent momentum. Futures pointing right now to a higher open. President ial candidate joe biden tapping senator Kamala Harris as his running mate well break down what it means for economicpolicy and your money. Plus president of university of miami on reopening americas schools and the future of College Sports as the second hour of squawk box begins right now. Good morning and welce back to box here on cnbc im joe kernen along with Andrew Ross Sorkin. Becky is off until august. You were off a couple of days, sorkin probably going to be off again at some point. Meanwhile u. S. Equity futures getting back what we lost towards the close yesterday and were on record watch again this morning for the s p 500. Easy to say, just hard to believe, isnt it . Were about 52 points away from the record close, which was on february 19th. You dont feel guilty, sorkin, i mean taking time off when you basically have the day off anyway, you come in we sit here for a couple of hours and then its like 9 00 and were home should we feel bad like that its kind of like a vacation, is it not you know what, joe, this job has never felt like a job. Right . So what am i supposed to say i feel we never worked a day in our lives, joe, its that much fun. By the way, i actually believe that its so much fun i never worked a day in my life heres what ill say. After years and years of getting up at quarter to 4 00 i count that first like between quarter to 4 00 when the show starts at 6 00 i actually count that as four hours because its so its just hard to go im with you. Hard to get up. You know its dark and cold and raining sometimes and its like, so, you know, its a great situation and i love it, but i count that as, i dont think its like were mailing it in. Anyway breaking news, i understand we do have some breaking news on the housing market. Want to get over to diana oleck who has the latest report on Mortgage Applications this morning. Diana . Reporter a possible turn in the story here Mortgage Applications jumped nearly 7 last week as Interest Rates dropped again but rates may now be creeping up again the average on the 30 year fixed, loans fell to 3. 06 last week from 3. 14 the previous week both of those were record loss with loans for 20 down. Every type set a record. 30 year, 15 year, even jumbos and that caused refi applications to jump 9 for week approximately while they were 47 higher than a year ago thats the smallest annual gain weve seen in a longtime Mortgage Applications to buy a home rose 2 for the week. Still a strong 22 higher than the same week one year ago by the beginning of this week rates began to rise and yesterday they rose sharply hitting the highest level in two weeks because of a sell off in the bond market that then leveled off. Still there has been a lot of pressure for rates to move higher and given how hot home prices are right now due to tight supply higher rates could hurt the one sector of the economy thats doing so well right now, joe yep interesting, diana well see. Nothing lasts forever, right its crazy as far as just overall, diana, what will eventually decide where we go, supply or demand because is anything isnt there a shortage right now and people want to move out of cities supply. Its a huge supply issue as soon as we get more supply in the market whether Home Builders or sellers that when youll see prices ease up right now theres so little supply, so much demand, prices going higher and if you see Mortgage Rates go higher that will be a problem. Okay. All right, diana, thank you. We appreciate it lets take a look what else is moving this morning. Were joined by dom chu. Hot weather doesnt keep you off the links. It doesnt. But what does is a 3yearold and 1monthold keeping you off the links. I want to say one thing to you and andrew i never worked a day in my life either tesla. Speaking of headliners stock is up 6 premarket. 90,000 shares of volume after the electric carmaker announced a five for one stock split the move will increase the number of shares outstanding but make each of those shares worth unfifth what they are now. Cheaper stock make it more easily tradeable by Retail Investors. Thats the bullish tone. That split will be effective august 31st. Also big headliner, shares of moderna which are up nearly 10 premarket, 230,000 shares of volume President Trump announcing that the u. S. Government has reached a deal to buy 100 million doses of moderna experimental covid19 vaccine. The deal is worth around 1. 5 billion and the government has the option to buy another up to 400 million more doses so those shares up 11. 5 right now. Shares of deere which are down on thinner volume prematter biggest maker of Farm Equipment gets downgraded from a hold to buy citing the big upside move in the shares and the stretch valuation. By the way just for context those shares are now up 82 , andrew just since the pandemic lows reached back in march record highs for the market just in sight and deere shares massively higher ill send things back to you getting so close. We have to get out our rally caps some news just out from drugmaker bristolmyers. Investing 300 million to address health inequity. One of the primary uses is to train Clinical Trial researchers from diverse background and plaejing to reach gender parity at the executive level plans to do that by 2022 and to double executive representation from black and latino employees, joe. Yep all right. Andrew, big reversal for big tech yesterday after being on a tear yesterday apple, facebook and microsoft are among the tech names losing ground as rotation trade seems to be gaining some momentum. We talked about this earlier joining us now is director of portfolio strategy and ceo and managing partner of Blueprint Capital advisors its great to see you, meghan. I think we referenced some of your comments earlier in the last market discussion and were they are noteworthy but what can they tell us about the underlying strength of the move that weve seen. Is this a positive when we see it broaden out a little bit or shift to different areas, or is it sort of the last thing that happens before theres a dave reckoning . I think if you look historically at how we come out of bear markets or recessions you tend to see some of those small caps, industrial type names that rally out of the recession. But what weve seen here because this has been such a unique recession is that were getting those high flying tech names and those high flying tech names have benefitted from the fact that we have been in this stayathome, work at home and now learn at home mentality so technology is what weve been using. Now that were seeing some reopenings, much better news from the coronavirus front, from the health element, were starting to see some shift youre really seeing that if you just look at those high flying tech names that weve mentioned, you know, the top five names in the s p 500 are up over 30 yeartodate but the bottom five names in the s p 500 are down more than 50 which is look at the last week alone, just the last week alone youre seeing those bottom five companies theyve rallied significantly. They are up over 8 but actually those top five names now are down for the week. So this is more a breath in the market this is what you tend to see as we move beyond the recession and we get into that economic recovery jacob, we always hear the stock market can look out into the future, discount nine months in advance but then we hear its not going focus on the election until after labor day. Then we hear well its trading on whether we get another stimulus package, whether we dont get another stimulus package. Whats really the key drivers right now, in your view, of the Daily Movement were seeing in the s p . Typically this time of the year, you know, earnings would be driving the market higher or lower. And typically in this point in the election cycle, you know, we would typically see the markets trading range bound. We have no idea where this election is going to go and which candidate is considered at this stage to be the odds on favorite or which one will be more palatable from a market perspective. But i think what were seeing here is a continued effort on the part of the markets to try and hit, you know, its historical highs its been nothing short of a vshaped recovery and whats been driving that recovery, i think, will continue to drive these markets for the foreseeable future one, its the coronavirus. What do the numbers look like. I think that more he recently, of course, over the last two weeks weve seen a 16 decrease in the number of case and 6 decrease in the number of deaths and so thats been very positive news the second factor thats driving the market is the stimulus package and the market seems to be pricing in endless fiscal stimulus the real question here is not whether well get a second stimulus package its what will be in the package or as we always say the devil is in the details. So, you know, we dont think that the election is really a factor at this stage and probably may not be even after the last vote is cast. Meghan, can you give us your thoughts on that i look at it i know more simplistically to me it seems if it becomes clear that were going, the republicans would lose the senate and the white house i dont know whether all the, everything is aligned for the stars aligned for the market to keep going higher. Am i wrong no. I agree. I think the market can accept a biden presidency i think that can be factored in i think right now into the market what i dont think the market is factoring in is a full sweep that would entail some changes, some roll backs of what weve had that have helped the economic recovery prior to the pandemic these would, i think, be a detriment i think to some corporate taxes and i dont think that market is pricing that in at all right and, you know, we hear were not sure what to expect necessarily. We hear all moderate pragmatic moderate for both the president ial and Vice President ial candidate but then we hear other things as well being pushed one way or another. I mean its hard to even make the case nowadays without push back that maybe there are negative things you can do to the economy and i still think that maybe there are. Well see. Meghan, thank you. Jacob, thank you, well have you back and talk more about this. Its going to be after labor day, supposedly. Ill toss it over to you andrew. Thats when we start to worry. Still august we dont have to make any decisions yet, sorkin, i guess no decisions yet. Well see where this goes and i know well talk a lot about it but on the other side of this break, an inside look at facilities where regeneron is running two separate antibody trials one to treat the disease the other to see if drugs can be used to prevent it then tesla announcing that five for one stock split after the bell opened the door for smaller investors to be able to afford the stock which is up over 527 just over the past 52 weeks. That stock up 6 this morning. Thats lose to 16 billion just in an afternoon. Well diuss atscth move and so much more when stock returns good morning, blair. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. And im gonna eh, eh, eh. You say the customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. Covid19 vaccines get a lot of attention but Drug Companies including eli lily and regeneron are racing to provide an earlier option in vaccines or one in addition to them, meg terrell has this story reporter 44yearold jason barton just returned to jaez from a family trip when he got a pounding headache. Testing revealed he and his whole family had the coronavirus. It was mostly just headaches, 24 hours a day for two weeks straight reporter he entered a Clinical Trial of a new kind of drug to treat covid19 this is a class of drugs that works by giving people antibodies that will help fight the virus. Reporter the antibodies are derived from people who recovered from covid19 and regeneron combined one ofs on antibodies it developed in its labs while the drugs are being tested to treat the disease a different kind of trial has started as well designed to see if they can prevent it in people who might have been exposed. Theres a lot of reason, a lot of evidence to suggest that if you treat before infection for most of these diseases but include cog individual you can entirely prevent the infection reporter April Stewart enrolled in one of those trials after her son was diagnosed with covid19 the whole thing is scary. I was thankful that nobody else in my household had come down with covid reporter the prevention trials are being run in Partnership National institute of allergy and Infectious Diseases regeneron is enrolling house mates of people with covid19 while eli lily will go to news homes that had outbreaks guys, jason the patient at the beginning said he felt party few days after enrolling in the trial and april told us she has not been diagnosed with covid19 but, of course, neither knows they got the drug or placebo results are expected within months weve had wi weve seen it used for arthritis and things like that. Has it been used to neutralize a pathogen has it worked to do that reporter regeneron use this approach in ebola and its application with the fda for that drug is pending it was successful in trials in the field in saving lives of people with ebola. So this has worked before. And the hope is that, obviously, it will work again for covid it should i mean we got the technology as you know so well the problems we were using mice so there was an immune reaction to the part of the antibody that was derived from mice but now we got fully humanized and i dont know why it wouldnt work what do they target . Do they target the same spike protein or the whole virus reporter they target the sanctify protein but do it in different ways regeneron is interesting because its a cocktail of two different antibodies to try to keep it, you know, from any sort of viral mutants. These trials are desperately trying to enroll patients quickly so they get answers quickly. Anybody who is eligible for either of these should critic. The other is that manufacturing these is going to be the next big question we havent seen investment from the u. S. Government as much as for vaccines for antibodies and theres a big worry that we wont have enough. Yep then you worry about, you know, whether you need a cellular response to knock it out clean instead of an antibody response which is what youre looking for with a lot of vaccines meg, thank you keep us informed like you do a lot more coming up on squawk in just a moment. Elon musk, we got to talk about this guy the Company Announcing five for one stock split. Doesnt change anything fundamentally about the Business Company is worth Something Like 15 billion more than it was just yesterday well see whether it means more volatility more people have a chance to own the stock. Does that idea make sense any more in a robin hood era take a look at the futures at this hour. The dow up 277 points. Nasdaq up 106 points s p 500 up 26 points as we flirt with that new all time high. Well be right back after this announcer time now for todays aflac trivia question. How many streaming hours did roku report during the second arr . The answer when cnbc squawk box continues aflac duck who helped me cover it. Aflac. These are all the cab rides to my physical therapy. And aflac paid me directly to help. Aflac. What he said. And this unexpected bill is from. The twothousanddollar specialist. Thanks. Aflac. When youre sick or injured, aflac is there. We can help with Expenses Health insurance doesnt cover. Get to know us at aflac dot com. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Announcer now the answer to todays aflac trivia question. How many streaming hours did roku report during the Second Quarter . The answer, 14. 6 billion that was a 65 increase yearoveryear welcome back to squawk box tesla announcing that five for one stock split took place after the bell on a big run up in those shares take a look what were talking about. The move can open the doork at least the idea is to open the door for more Retail Investors if you believe that to get into stock. Joining us now is tim higgins of the wall street journal. Tim, im baffled by the stock move i know these stocks move when theres a stock split. This is worth 15 billion more than yesterday which is crazy because nothing actually happened in the actual business between yesterday afternoon and this morning but the fundamentals are still the same but this is not a Company Based on fundamentals at this point. Ate narrative story, a growth story and elon musk is selling this idea of the future of transportation, the future of the world and if youre a Retail Investor thats pretty exciting. Is this just the hand of robin hood and by the way, does it make sense any more in the day and age of robin hood because the whole part of the idea was to democraticize this so in. Certain ways it doesnt matter whether the stock splits you bring up a good point some ways with the robin hood effect has signaled theres huge pent up appetite for tesla shares for people who couldnt afford that higher price it gets back to the foungd ever tesla. This was part of elon musks vision when he took it public a decade ago he wanted the little guy in the company. In fact, set aside shares for early roadster customers because he believed they helped make the company to the point and he wanted them to have some of the upside Going Forward his interest in small guy investors. Tim, youve written to critical pieces in the past over the years about tesla. Can you make the case, the bull case for tesla right now well, longtime auto observers, analyst, investors, they have to do very ambitious math to try to justify what the valuation is at this point im not going to weigh in either way but i will say at this point if youre trying to justify it its not an auto company its an Energy Company its a company that will have robot taxis. It will have more than just revenue from selling cars. When you talk to professional investors, whats the distinction between the professional investor today and the Retail Investor . I under the Retail Investor, the professional investor believes ten years out this is the next amazon do they believe they are riding a momentum wave being pushed by retail is it Something Else yeah. In some ways you almost you hear similar things here that fact that elon musk has gotten though point that four quarters of profitability as messy as they may have been suggest he can execute and if he can execute on this what can he do Going Forward, right . They look at a traditional auto maker and say well they havent really done much, you know, in returns in the last few years, a generation, if you will. So why not bet on tesla at this point especially when you look at a market and say where else will you put money okay. Tim higgs againins great to seeu when we return, were going talking to about joe bidens vp pick and what it means for your money. Well discuss that right after the break. Check out this mornings winners and losers on the s p 500. Well be right back after this ticket is set. Joe biden picking Kamala Harris as his running mate. Eamon javers joins us now with more on that and the results of a new cnbc change Research Survey on the politics of voting in 2020. I look forward to talking to you about the way it played out yesterday. I was watching the betting sites and Everything Else. Tell us what you know and then well talk if you have some time reporter Kamala Harris 55. Democratic senator from california certainly expected pick but an interesting pick here because for joe biden Kamala Harris does not represent sort of the traditional Progressive Left she says shes not a democratic socialist making an explicit division between herself and the Bernie Sanders wing of the Democratic Party her signature economic proposals is a 6,000 tax credit for families making less than 100,000 a year. She says that will go a long way to addressing income in equality in this country and proposing eliminating tax cuts for corporations and top 1 . A lot to look for. As with all Vice President ial picks their policies very quickly morph to be the president s policy Kamala Harris echoing joe biden very much on the campaign trail. Now to this states of play poll looking at what to expect in november look, nobody has ever conduct ad general election in a pandemic before but thats whats going to happen. What were picking up is real softness in terms of the expectations about the mechanics of all this. Confidence in mail in voting only 50 are confident their ballot will be counted and secure in a nation hostage system of governance depends on confidence in election tumultuohat 5050 sn very confident most say they are more likely to vote by mail but 20 will vote in person before election day. That leaves 36 who say they will vote in person on election day. That gives you a sense of how complicated the vote count will be and how long it will take to get the results. Finally will election day itself be safe . 63 of voters say yes it will but a large number 37 say they are not confident it will be safe so a large number of americans, joe, dont have confidence election day will be safe. A large number plan on voting by mail and that gives you a sense of how complicated this can be on Election Night which people are thinking of as maybe election week this year, joe i remember election month with the hanging chads or longer reporter yep i also saw it and my son who follows this so closely i always thought Kamala Harris i thought it was going to be her i have to tell you, i saw this predicted susan rice odds jump and i went and shes a pretty unbelievable resume and a record of working with joe biden in Obama Administration for a longtime and i thought, wow that would be a formidable pair. Now shes never run for anything so i dont know, as far as campaigning goes but stanford and rhodes scholar, pht, u. N. Ambassador i looked at the background and thought its going tougher, it would be tough for republicans to really question her capabilities i guess it would be difficult. Ive told people, Kamala Harris has that it that charsma and a great campaigner i met her. Very strange how i met her and she just really has that, i dont know shes just a very impressive person when you meet her this will be interesting obviously a long background as well but theres that San Francisco politician too that she has to deal with. Were calling her a moderate pragmatist she moved left at times during the debates. Reporter theres some interesting waffles there particularly on the question of medicare for all which Kamala Harris initially signaled that she did support but then said well maybe she doesnt support the taxes that underlie it she raised her hand on the debate stage if she favored the elimination of private United States and then later said she didnt understand the question so shes done some straddling on he some of these issues. Shes somebody who has signaled, joe, she doesnt like these proposals that seek to reshape society broadly. Shes looking she says for more practical, Pragmatic Solutions and that leads her towards sort of more narrow policy choices than some of the other candidate. You look at Elizabeth Warren or Bernie Sanders who have much more sweeping economic proposals out there and much more to the liking of the Progressive Left this is not somebody who is in that camp necessarily but look if youre looking for a contrast between what youre going to see from the Trump Campaign and from the biden campaign, Kamala Harris will talk about removing the trump tax cuts thats going a question for business and economic minded voters yeah. The colbert thing i didnt under why that could be in play. I get it now when that moment with biden about the bussing and i was that little girl, that was a powerful moment, i thought, and now shes saying well it was just debate which makes me did you see the colbert piece. That was a debate. I under in debate and after debates everybody gets together but that was such a personal memory for her and Everything Else to just call it that was a debate tool im wondering if that becomes an issue. Reporter it does you look at what Kamala Harris said there and she was criticizing joe biden for saying he worked so well in the past effectively with segregationist senators although he wasnt a segregationist himself and talked about bussing early in his career she said that was hurtful for her. The biden camp is spinning that this morning is by saying look he picked somebody who was very critical of him but he picked her because he knows shes going to be good for the ticket and good as Vice President thats a sharp contrast they are saying between joe biden and donald trump who just isnt able to get over any insults or grievances and move on with thing. Right youre right holds them forever thanks we got to go andrew were going to continue that conversation and really try to under what it means for the market a senior fellow at the manhattan institute. Curious what you think of the move and how you think it changes the outcome of the election one way or the other and the big issue, of course, is we focus on this network is therefore what it means to the economy and in the immediate term for the market. I think it was definitely a predictable move i think joe biden is running on the, you know, predictability, more of the same and she definitely, wasnt a shocking move pretty much a centrist it seems markets are comfortable with it based on their implied opening right now. I dont think its a surprise by any stretch. Do you think i mean one of the things weve been trying to figure out whether markets are moving on any of this news whether investors dont really start focusing on the election or postlabor day moment in terms of how they are thinking about the economy. We have the overlay of covid and either a potential vaccine or not and what the future of all that looks like against the backdrop of this election and what the future of our democracy looks like in the next year or two and that has implications for tax policy and so much else. I mean markets are forward looking. So i think to some degree they already priced in a possible biden presidency because they are thinking years out. I think markets would be moving very differently if it was a Bernie Sanders candidate already by now but i dont think theyve already priced in a possible biden presidency and we wont see a big change if we see a lot of noise in the fall it wont be from election it will be development from the virus or any treatments or any vaccines or how infection rates go in the south and west one of the things that Kamala Harris suggested back when she was running against biden was she was an advocate for a trading tax. She wanted to tax all trades both stock trades and bond trades do you think thats something that would carry over in a Biden Administration i am not sure definitely has some interest of finance. Its a pragmatic ticket. Thats a major structural change to markets which i cant imagine they will make well expect higher corporate tax, perhaps higher income tax i think they will go more in that direction because they are pretty safe lets not rock the boat kind of ticket. Lets ask you about that. Do you think youre right it looks like that it looks like flat the outside but the democrats are clearly pulling more and more to the left and the question is whether you think this vp pick pulls you more in that direction or not or you think because shes been shes frankly been willing to be on lots of different sides on a lot of different issues maybe it doesnt move that way. I dont think so. When people say shes a pragmatist thats fair we saw even within the primary her coming out medicare for all. So i think these arent particularly risk takers as candidates or risk takers as leaders but a lot of it will depend how the senate does big democratic sweep they will feel okay theres more of a mandate to remake this economy but if the republicans hold on to the senate i dont think we can expect a lot of dramatic changes. Okay. Allison, appreciate your time and perspective this morning thanks thank you joe . Thanks. Coming up a check on whats moving this morning in the premarket and bad News College Football fans. The season at least for these two conferences moving closer to a near total shutdown after the big ten and pac12 postpone play well speak to the president of university of miami about the future of College Sports and reopening of americas voters shares of boeing super the company logged 43 order cancelations for 737 max planes in july and no new orders for the year through july boeing has a t ne negati negative squawk box will come right back right now, switch to tmobile and get four lines of unlimited for just 25 bucks a line. With access to americas largest 5g included. Thats right. Unlimited and nationwide 5g for the whole family for just 25 bucks a line. Only at tmobile. That selling carsarvana, 100 online wouldnt work. But we went to work. Building an experience that lets you shop over 17,000 cars from home. Creating a coast to Coast Network to deliver your car as soon as tomorrow. Recruiting an army of customer advocates to make your experience incredible. And putting you in control of the whole thing with powerful technology. Thats why weve become the nations Fastest Growing retailer. Because our customers love it. See for yourself, at carvana. Com. Welcome back to box. Take a look at futures dow up 253 point right now, nasdaq looking to open up higher s p 500 up 25 points were get sewing very close to all time highs want to take a quick look at specific sectors airlines this morning all moving higher cruise lines on hopes of service returning. Bank stocks. Well flip the board around and show you whats going on there. Virtually everything is up, up and up well talk about why that is and whether it should be after the break. Coming up on the other side, the big ten and pac12 postponing football season. How athletes at the university of miami have been on campus and training teams on sec and acc forging ahead with plans to play a reminder you dont want to miss cnbc Small Business Virtual Summit takes place at 1 00 p. M. Eastern today. Provide Small Business owners resources to survive in todays crisis and also a path forward to thrive. Youll hear from Sheryl Sandberg and so many others to cnbcevents. Com smallbusinessplay book were back right after this. 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. Big ten and pac12 announcing postponement of fall football first of the power five conferences to make that decision and could have enormous financial consequences joining us now to talk about that and the return of school to this fall, dr. Julio frank, president of the university of miami. Dr. Frank, great to see you. Do you think that this is the beginning of a broader move, doctor, or do you think that the conferences that have stated their intention to move forward and play, do you think that that is going to actually happen . You know, were in the middle of a pandemic. All of these decisions are very difficult. What weve been doing at the Atlantic Coast conference to which the university of miami belongs is take a very, very thoughtful and analytical approach not just when it comes to athletics but on the tough decision whether to open the campus for in Person Instruction or go fully remote what i got to do, im trained in Public Health. Thats my professional field what we tried to do is stay away from the false dichotomy that going to campus is all risk and keeping students off campus is no risk. That is actually not the case. And what were trying to do is estimate the risks of those two decisions. For a lot of our students campus is actually the safest place where they can be. The risky behaviors of not wearing face coverings, of gathering in large parties and all of those association we have, dont just disappear because you dont bring students to campus. In fact, i believe, which is why were proceeding with our plans to hold classes in person, in a hybrid model i do believe we can provide a safe environment on campus we can wear face coverings which we are making mandatory. We can test our students i am encouraged by fact looking at the data weve had student athletes on campus in all of our universities since june for two months weve been testing them frequently i can think the last two tests we had exactly zero positive cases, which demonstrates that young people can actually be trusted to follow rules, contrary again to the stereotype they can be trusted to follow the rules when theres a very clear reward which in this case is to play so i cannot tell you what the acc will do because obviously im not authorized were meeting and consulting, but were mostly driven by a very thorough approach and analyzing all the options and were contingent the question what is best for our students. And it is not obvious that keeping them off campus, sometimes leaving their apartments across the treat from the university and stopping them from coming on campus isnt simple theres reason to believe it would encourage more risky behavior than having them there in an educational setting where we can supervisor try to inspire them to do not just the right thing but the smart thing for them and for all their classmates and the community doctor, the one issue is, obviously, the students are lower risk if something does happen and there is an outbreak. But then you have faculty and staff and everybody else at the cool is it possible to make sure that a lot of students or the athletes arent carriers that give to it more vulnerable population and is it worth the risk i do believe we can do that you know, wear properly face conversation weve gone to great lents to instruct our students and faculty how to do that having robust system of selfreporting symptoms, tracing contacts, have enough space for quarantining there will be outbreaks. But our goal is to keep those very small there will be transmission of the virus. We have a robust system of testing, of mandatory in the environment, wastewater where we know the virus is shed, but doing random sampling of Antibody Testing so we can see what part of the campus is a hot spot and quickly isolate that part we have installed barriers we invested millions of dollars literally in equipment so that faculty members can conduct their lectures behind a barrier all the time wearing face conversation weve introduced a low idea which we Call Public Health ambassadors. Using positive peer pressure which this age group is known to respond very well. So we train, we have 75 Public Health ambassadors which are there to make sure that their classmates comply with those behaviors both on and off campus we have instituted or reinforced because we already had it an outline when students see something that they deem is not is risky behavior can quickly notify and an environment thats safe and not oppressive or coercive we can do that on the other hand, we have told students there will be zero tolerance for violations doctor, what do you say to critics and there are critics of president cornell and so many other universities that this is a money grab that if you didnt do this that the amount of money that you would lose is so great that its worth taking a rifre aing a risk what do you tell those people . Thats not true i think in general we have a duty to actually assure the continuation of our institutions and we have a board that has a racetrack to ensure that were mindful of the financial implications i can tell you, it might be the easier option because there are ways to mitigate the financial loss, but that has to come in to the equation youre going to layoff more people or people who lose their income so you have all those effects. We are mindful of those. We are very thoughtful about that but, that is not the driver of the decision not in our case. What im take is a look at relative risks, not this idea that being on campus is all where the risk is and being off campus is not at all young people leave their homes, many of them, they move out and whether they come to campus or not they will move out and actually if we do the right thing we can assure they will have our safer environment now it does require young people to be inspired to do something that is exactly what were motivated to do. But we got try all right, doctor we may have lost a little bit of audio. Very difficult to hear with all these different delays dr. Frank, thank you we wish you well i hope this turns out well we all want to see football. We want to do it right as well andrew okay coming up on the other side of the break. Mike novogratz will talk to us about recent swings in bitcoin and more Presumptive Democratic nominee joe biden names his vp candidate. Well talk about what it means for the markets, the impact on business and so much more. Squawk returns after this. Good morning stock futures are bouncing back after the late weakness yesterday. Green across the board in a premarket after that late day sell off s p 500 is less than 2 from an all time high. Joe biden taps Kamala Harris as his vp pick. Now the 2020 democratic is all but locked in, what is next . What will a Bidenharris Administration mean for American Business dick durbin will join us tesla said its splitting its stock and where do shares go where else up why the company is making the move and what it means for your portfolio as the final hour of squawk box begins right now. Good morning welcome back to squawk box right here on cnbc im Andrew Ross Sorkin along with joe kernen. Becky is off today were back on record watch this morning. Take a look at u. S. Equity futures because directionally at least if we stay on this pace we will hit that new level. The s p 500 had that late day sell off yesterday but still less than 2 from februarys all time highs you can see right now things are pointing up every where. Treasury yields, those we should show you as we speak, looking to looking at about, on the ten year. 673, joe lets get right into whats driving this mornings stock rally, dom chu joins us with the highlights reporter some role reversals. Technology and second is financials well start with technology. Take a look at three of the etfs that track the Technology Sector overa overin the last week weve seen some moves technology down 1. 5 big internet and communication surfaces related stocks down 3. 5 and technology and software specifically off about 5 . Thats a recent versal these had been very much the Leadership Groups in the course of therecent rally watch what happens with technology if theres a bounce some traders want to see that lead the way higher now that downward move is in contrast with whats happened in the last week for financials which has been a huge laggard. Regional banks up by 11 Jpmorgan Chase is up 9 . And then the spider s p 500 bank super7. 5 . Technology over the last week has been declining financials are on the rise. Interest rates are helping that out. Ten year benchmark, u. S. Treasury note yields are near a one month high one macro trade to watch as well the gold and silver trades have been huge to the upside over the course of the past several weeks. Justin last three or four trading days weve seen sharp moves lower in both silver and gold thats something to keep an eye on watch the , gold and silver, banks and financials keys to this moanings trade well send things back to you. Give us a bit of an in depth perspective on what were seeing in the markets and what it all means. Were joined in an interview with Mike Novogratz. I want to understand equities right this moment. Does this make sense to you . Yeah. Weve had amazing run, right, with the tech stocks, the Growth Stocks way out performing everything were starting to see a little reversal of that were seeing that reversal because covid cases are starting to come down a lot of vaccine talk and everything is correlated to that story. We get an end to covid or visibility for the end of covid youll see these industrials and banks that have lagged, rally a lot and people take profits on their zooms and their telecons should you be making that move now Goldman Sachs put out a report last week making the point that sat some point the cyclicals will outperform. You have to watch the tea leaves watching the 30 year bond is important. It traded heavily. Its already down. Positions got so stretched growth versus value. Bond yields will have that much more to go at one point this is a profit taking exercise. People had great years hedge funds have had great years. Asset management had great years. Were supposed to have 30 falling in gdp but people have had great years. So some of this is locked in so, mike, in your recent appearances, i mean how many s p points would you say that you have been surprised at and i dont remember you ever getting bullish at all you missed this entire 50 move. Are you better now at digital stuff . How do you account for that . Listen, its funny. You know our stock price is up triple about 2800 i started picking s p was overdone and thats 500, 600 points that i sat and watched. I look at a company that has done nothing and we own bojangles privately. When youre a wealthy guy your portfolio does well. Im not worried about you im not worried about you. I know how much money you got. Im worried about people watching you and you gave the advice the last few times youve been on. This is one of the strangest rallies. Theres as much uncertainty weve ever seen with an election with a high probability we get a democratic president who already has said hell raise the Capital Gains taxes and personal taxes theres a tremendous amount of risk that doesnt want to place in the market solely because weve had a treasury and a fed that keeps jamming liquidity when we talk about this fiscal practice, 1 trillion versus 2 trillion, remember a trillion thats 5 of gdp that was priced in now thats the spread of what these two packages are so were in kind of unprecedented times. Thats why you saw a guy buy 250 in bitcoin. Were iran really interesting times. Mike, let me pivot, if you will, to gold and bitcoin. I dont know if we should talk about them in the same sentence or not thats a topic you spent a lot of time fwhig these past, well years, really but especially in the past couple of months. Are you surprised at whats happening here and do you believe its correlated or uncorrelated remember weve gone back and forth on this together they are correlated in times and the thesis of why people are buying them are very correlated. Whats uncorrelated is bitcoin is early in the adoption cycle yesterday we had a 1. 3 billion Market Cap Company put 250 million in their treasury. They will not be the First Company to do that were slowly having people come to the bitcoin realization where gold everyone has known about gold for 3,000 years i think gold, havent seen their highs for a year this sacretion pretty swift correction because it got overdone. It was a much bigger correction in gold. Bitcoin is off 4 , 5 from the highs. Its already back wane couple of percent. So im not worried at all my bitcoin position the trader, sometimes you go to sleep and cant sleep but you know your position is worrying you. Ive been sleeping like a baby mike, real quick. You look at tesla and that five for one stock split and you look at the valuation just go on a tear i know there are advocates for splitting up the stocks. Jaime incriminator ad e eoe eoor advocated that the company is worth more. Does that make any sense zero sense. Theres an irrational exuberance around the story stores tech stocks amazon is an Amazing Company which is trading 100 times earnings so tesla, you know, it allows more small guys to get in and now we have psychology for a day or two i would be surprised if it doesnt close much lower than where it opens today or at least lower than where it is today you get the original excitement oh, its a split the math makes no sense. So day traders feel shorting tesla is a decent bet. Finally before i let you go, election does this biden vp pick change anything i think whats the wall street take i think, you know, kamala is the most prepared for this spot of any of the people he was considering. No training she needs go through. Shes ready to put on the gloves and start sparring in lots of way shes a great pick democrats i talked to about are expected vp in the long run doesnt make a big difference this is an election between biden and trump. Kamala is a net positive it will be be fun to watch herget in the ring with mike pence. I predict a knock out. The democrats will win i dont think the market has digested that at this point. Okay. Thats a good place to end this conversation and to come back to continue it in the very near future Mike Novogratz thank you so much more joining us. We do have some breaking news. Joe has that news for us joe. Thanks. Viacom, cbs issuing a statement mourning the passing of sumner and chairman emeritus ever National Amusement and shareholder of viacom cbs. He was 97. Avenues brilliant visionary. Transformed a company into a media portfolio and force majeure. Fierce competitor for 30 years led viacom as executive chairman of the board following National Amusement. Mr. Redstone served as executive board of cbs and viacom in february of 2016 he assumed the role of chairman emeritus. They go on to mourn the passing and extend as we do the deepest sympathies to the Redstone Family Sumner Redstone dead at 97 andrew, i guess we all he was he 97. Hes been around as long we all have a long history with him made such a profound impact on the world of media overall. I had an opportunity to cover his world and watch it like you and all of us. And he was a force majeure in so many ways and a true deal maker. Someone who was looking at that stock price on the hour every hour if not in between and he would jump on the phone and tell you what he liked and didnt like, depending on what you wrote about him. And its a sad day for everybody and we do send our condolences to sherri and the family and all the dynamics have changed over the years both putting those companies together, splitting them apart and a lot of the soap opera and family drama that weve all seen and went with over these years yep the stories, just the things that he lived through and went through as well. Pretty amazing and when he was in his early 90s i remember he was not ready to turn over control and people said sumner thinks hell live forever. He almost did, actually. 97 is a life well lived. But, you know, some of his earlier, you know, some of the things that that was at the sheridan, was it not, am i thinking about that right . Yeah. Youre right a fire at the sheridan. And just in boston, i believe. And just yep he was hanging off a third story ledge. Well talk more, andrew as w. Coming up Kamala Harris joins joe bidens ticket for president. What does she bring to the table politically and what would a bidenharris win, what would that mean for Business Issues from tech regulation to taxes. Specifics. Well talk a lot about it but rbso democratic senator dick duin, pollster frank luntz will join us as well squawk box is coming right back time. Much like these majestic rocky mountains. Which must be named after the. That would be rocky the flying squirrel, mr. Gecko sir. Obviously ahh come on bullwinkle, theyre named after. Our first president george rockington that doesnt even make any sense. Mr. Uhh. Winkle. Geico. Over 75 years of savings and service. 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 to box this morning. Take a quick look at futures right now. Were headed potentially towards another record high if things stay in the direction they are today. Dow up by 226 points s p 500 by 25 points and nasdaq up about 95 points right now lets talk about this election joe biden picking california senator Kamala Harris as his running mate in 2020 were turning our attention now to her position on key Economic Issues and joining us is illinois senator dick durbin, the democratic whip. Good morning to you, senator we do want to understand how you think this changes the dynamic not just of the election, if you think it does, but in terms of her positions on the economy you know, you go back and look back when she was running against biden, she had a number of different views, one of which was to tax trading on wall street, for example. What do you think her impact is going to be in terms of policy well first things first a heart beat away from the presidency is she ready attorney general for the largest state in the United States of america. Member of the senate as well as the judiciary committee, the Intelligence Committee ive been working with kamala for years. Shes not high in seniority she is high in Mutual Respect we have for her in terms of her political views lets be honest. Joe biden will be the leader of that effort and leader of that decisionmaking. Shes going to be an integral part of it in terms of the campaign we couldnt ask for more. A proven National Candidate who has been around and worked in my state as well as others. She has marched for friends who are now as excited as could be to join in this effort senator, what do you make, those of some of the personal or interpersonal dynamics, intermural squabbling at play. Joe biden wanted a partner in the same which he had with obama and some skepticism whether hell have that same kind of relationship given southeast public shouts that they have taken frankly at each other or that she has taken at him and a view that she may be she might have greater aspirations and whether that creates a trust issue . First let me say a border about biden and obama. I was involved in the early stages of the obama president ial campaign sitting in an rv with him in the florida with a legal pad checking off names potential running mates. So i kind of knew the process from the beginning he made the final decision for sure and the relationship between biden and obama started off very good it turned out to being a great i think that the relationship between joe biden and Kamala Harris is going to mature and evolve in that same way. Normal people dont understand sometimes this world of politicians. We can fight like cats and dogs when it comes to primaries in particular and the day after the primary decision decide that that person we just had the heated words with is going to be an ally and someone very important in the future. Thats the nature of this business you can disagree with someone. You just dont want to be disagreeable what do you make of the idea and its a critique from the left even more left if you will that this, that this ticket isnt is almost too moderate. I can just tell enthusiast. There is a level of commitment, energy and enthusiasm to bring a new president to the United States of america the likes of which ive never seen. In terms of the left and Democratic Party Bernie Sanders has been a trooper since hes withdrawn. Hes met with biden. Working to move us forward to make sure we have a victory on november 3rd were trying to tell everybody here whatever your minor differences may be, we have a major responsibility to bring new leadership to this country to move this country forward to rebuild this economy. And first and foremost to deal with this coronavirus in an effective way. All right you know, this audience, senator, is oftentimes a business audience. Business interests trying to understand what it means to the economy what it means to business. What it may mean to the markets. Speak to her views about wall street and banks you know, one of the first things that biden put out about her was that she took on the big banks. Clearly theres questions about taxes. Then as you just said, you know, Bernie Sanders getting behind biden, how much does biden get behind Bernie Sanders. He put out a plan just last week to tax billionaires who made money during the pandemic. Im not making a judgment on whether any of those things are good or bad. I wonder whether you think the biden ticket will ultimately come out on these issues to my friend in the Business Community, the biggest single devastating statistic which you should remember is this. The United States has between 4 and 5 of the worlds population we have 25 of the covid infections the rest of the world is looking to the United States and saying what have you been doing for six months a lot of us have been doing things which have reduced the rate of infection and death and our economy is starting to recover. The United States still on trope in many respects so for my friends in the Business Community please dont overlook the obvious we need a leader who can mobilize and unify the American People and strike an to end this coronavirus. Then as we move forward we need to build jobs. Good paying jobs in america. I know joe biden and Kamala Harris are committed to that i hope my friend in the Business Community realize thats a key for our democracy to be strong for generations to come. Talking about our economy, justtell us where you think th stimulus measures really stand right now after President Trump put those executive orders into effect i know theres a big fight about that but whats the betting diagnostics whats your betting line on where this goes . We made it clear and with our leadership pelosi and schumer were willing to go halfway. Thats the nature of compromise. Were prepared to do that. We cant talk to an empty chair and an empty table Mitch Mcconnell and the republican leader of the house Kevin Mccarthy refuse to attend negotiation sieges what do they have to do that was more important than that negotiation . When it failed and the white house said were walking away we said the door is open. When youre ready to come back in to talk about a solution well move forward ill tell you this i hope to executive order bring some relief to some families but i dont believe thats the approach that should be used ben sasse the republican senator called it unconstitution aal sl that the president was bending on this. It would address key issues testing, money for our schools and things thats essential. There will come a time when theres another negotiation. I hope this time republicans will show up senator durbin, we appreciate your time this morning thats a longer debate and we should have it and hope to have you back to continue it. Frankly i hope there wont be a debate i hope there would be some form of agreement and well get money to those who need it so very much during these challenging times. Thank you, senator thank you all right. On the democratic debate stage last summer Kamala Harris put a few tough questions to joe biden on the issues of race. I do not believe you after racist and i agree with you when you commit yourself to the importance of finding Common Ground but i also believe and its personal and it was hurtful to hear you talk about the reputations of two United States senators who built their reputations and career on segregation of race in this country. Its a mischaracterization. I did not praise racists that is not true Vice President biden, do you agree today, do you agree today that you were wrong to oppose bussing in america then . Do you agree joining us now for an analysis on what bidens vp pick means, frank luntz joins us. Was Kamala Harris the most likely, i think it was but i actually got swayed yesterday by the predictive numbers that susan rice might be the choice all along i thought probably senator harris was going to be it where were you well, i brought with me a couple of examples of where they have absolutely got it wrong thats when Ronald Reagan was going to choose gerald ford or the example of when john kerry chose dick gephart i want to remind viewers of this headline, Dewey Defeats Truman this is one of the most difficult elections to survey. One of the most difficult electorates to under they are angry, frustrated, nervous about the future, afraid for their kids theres a group im looking at right now that will determine this election and that is women with children of schoolage. That when you get to be of that age and of that family status, you start to move from democratic to republican and these women have moved away from Donald Trumpin the last six to eight weeks because they found this pressure to send their kids into the school and very nervous about this. This is a business issue this is an economic issue because how can the economy resume how can we bring people back and return life to normal if they have to stay whom their kids or arguing and fighting over child care i think that harris was a safe choice but i would also remind people that theres a video of her with Steven Colbert and you guys have it in the control room where she laughs off that criticism of joe biden and i dont think that video is going to do her well. In fact, i think it will be the most watched video of the next three months t it was a little bit too honest i think or cynical or something. We dont have the video but i referenced it earlier because we all thought about i remember when she said it to joe biden and it did seem like she was going say that it had been wish deknabout we would bring it up. It was very effective and very seemed like sincere person to talk about those issues and now i understand the debates after they are over everybody eventually hugs and supports the candidate but to go back and say, you know, yeah that was just a debate that was a tool i was using to win the debate i think that sort of adds to the phoney persona that they are going try to use on the republican side. Weve done this a dozen times over the last year and often disagr disagreed. I think it takes the cynicism. Im very careful about my analysis her because if you looked at the last 12 hours of coverage, shes being protected. Shes being celebrated and in this era of cancel culture if youre critical of her in any way youre called a racist chris dobb learned this. So i urge people be very careful about what you say that doesnt change the fact that its a level of cynicism and a level of dismissal when you simply blame a really tough Harsh Criticism on the fact that its a debate. Should we not believe her when she debates mike pence in the fall should we not believe things she says simply because its a political moment for her i would like to think that we can reach a higher standard in this remaining 85 days i would like to think that we can do better than the campaigns of the past. So, frank, what am i looking at you seem very president ial today. Where are you . It was very kind of donald trump to give me his office and im very fortunate this is real this is a chair. This is not a photograph this is actually my home in california this is a 78 replica of the oval office and over here ace turn this around this is the lincoln bedroom. So im the only person who has an oval office that you can actually sleep in and you dont have to be a president ial intern youre waiting for me we wanted to clear that up frank go ahead. This is not a green screen. Like if you got out of chair, i dont want you to because you have a mic you can walk back there. Theres depth. Smile show you oh, my goodness this is a genuine resolute desk ill put it there behind me. So you can see including the buck stops here. Wow we have the humidor from bill clinton. These are couches from bill clinton. This is the whole thing. And that is the, behind me is the painting of George Washington that was in the Richard Nixon white house and, yes, this is real. So im going to the sit behind the desk and im going show you guys something theyve never seen before which is, this is put it back down, this is the red phone. This is the famous phone that was used to contact the kremlin in the 1970s and 1980s wow thats something wow thats something, frank you have now made this a tax deduction. It cost almost a million to build and now i can take it off my taxes because i can say i used it for a cnbc shot. Were going to need you again and again. Im still trying to get my head around the bill clinton humidor. Thank you, frank were getting some andrew were getting july cpi data. Rick, the numbers please reporter joe, hot, hot is all i can see. July read on cpi number, up. 6 matching actually unrevised pop last month after we went negative for three months. Feign look at energy, also a hot number up. 6 if we go yearoveryear up over 1 we were looking for. 75. Up a whopping 1. 6. Now obviously on these year to year numbers they are big in terms of expectations not necessarily big in terms of history, but the two month over month numbers are very large and, indeed, point to this dynamic that many have been being looking at trying to handicap not only where inflation or disinflation will be but what it looks like in 2021, 2022 especially considering if we get ahead of the covid19, if we get a vaccine, theres an awful lot of stimulus in the storm and look at ten year note yields. They are around 69 basis points so they have really moved up basically 5 1 2 week highs along with 30 weak bond yields thats approaching 138. Joe, back to you all right, thank you, rick Steve Liesman joins us now with more hey, steve reporter hey, joe, welcome back yeah theres quite an inflation debate going on right now. Just some of the details out here futon fell energy up 2. 5 on the month. Vehicle sales up 0. 8 and used vehicle sales up 2. 3 . These are on the month and i think phil lebeau has been talking about the scramble for cars out there having recently been in the market things are firm apparel up 1. 1 . Some areas you have driving up inflation. Let me show you what exists are talking about. Not many economists, more market folks are talk about when they make this case that indeed theres an inflation concern the massive fiscal monetary stimulus out there potential supply side constraints. Maybe you see on apparel and vehicle side market indicate jobs got and silver gold sold off a little bit then the rise in Inflation Expectations imbedded in the tips spread and university of michigan Inflation Expectations. Okay lets make the case for why the fed and others are not worried about inflation. Comes down to one single chart called the output gap and that output gap tells you what could have been for the economy if we run it faster or hot as we think we could and actually. Theres the projection running below potential for many years to come and in economic theory at least its hard to generate inflation under those circumstances. Overall the Federal Reserve is buying this output gap story much more than its buying the information in the other chart and thats why what you have, andrew, is a fed that is really moving to be more what do you want to say lenient or otherwise accommodating to inflation running above its 2 target and youre probably going to get a change in the Long Term Strategy reflecting that in September Andrew okay. Well see what happens in september. Steve, we appreciate it. We should tell you well come back on the other side of this break. As you know, some breaking news. Well talk about the life and legacy of Sumner Redstone, 97 years old. Well talk about his accomplishments and how he changed the world of media join the cnbc Small Business playbook Virtual Summit taking place today at 1 00 eastern. You can hear from Sheryl Sandberg and so many others and important voice. Go to cnbcevents. Com smallbusiness playbook youre watching cnbc42424. Its easy to get lost in the economic uncertainty. The volatility. The ambiguity. This moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Welcome back to squawk box sad news this morning. Media mogul summer redstone has died at the and of 79. David faber joins to talk to us about Sumner Redstone. David youve covered Sumner Redstone for so long you spent so much time interviewing him, talking to him. What are your thoughts this morning . Reporter you know, its funny. As you say i spent a lot of time with sumner during a period of 15, 20 years as he was building his empire and so many Different Things of a corporate nature but able to spend time with him away from sort of the daytoday Business Life as well. I mean, he was a force majeure, i think, as you probably have pointed out, andrew. Like so many successful people he was relentless in so many ways i always enjoyed spending time with him and was lucky enough to have done that many times including that interview there at his house in Beverly Hills where i was visited with him through the years a number of times where he spent a lot of his most recent years as well. He had this great aquarium with these fish there we would go out. Sometimes we would eat at some of his favorite restaurants. I remember dinners at an italian place he liked when i think about his life and his career theres a couple of things i come back to the world didnt know about Sumner Redstone until he made that bid for viacom. It was viacom. They changed the name. He was 59 years old. I think its something to keep in mind, young man that you are, andrew, that life can really begin sometimes for some people at least in a significant way in terms of building your career very late and that goes i think to the tenacity of mr. Redstone. Not that he wasnt successful prior to that but whats the he emerged on the global stage as a titan building the company from there. It strikes me he really didnt get going in the public imagination until he was roughly 60 years of age and then of course has been somebody weve talked about for the last 37 years. Right you know, he put these two famed companies together split them apart and then put them together again. How do you think in retrospect he thinks about all that well, you know, listen he and i would argue about that in fact theres a famous clip we were arguing about it and he kept telling me to shut up you know, he cared a great deal about the stock price. He was focused on the stock price. He used to remember famously run the buy backs, bear stearns would help him with that i always made the argument he moved too quickly because he was disappoint touched in the performance of the company at that point that he split them and that he wasnt quite sure who the leader should be, so he gave them both their separate companies at the time. But, you know, then his daughter, sherri, of course put them back together recently. They would have been better served had they stayed together during that pertd of time but thats way sumner moved. He moved fast. So many different milestones the fight for paramount which was one of the first m and a stories i covered for cnbc in 93, 94 that put him on the map. He brought in blockbuster he used the cash flow to help pay for paramount. So many battles. He battled everybody all the time but he was real, i always enjoyed a great deal being around him it was fun some stories you can share, andrew and some you cant share. Well, well let you hold your tongue for now we appreciate the remembrance of him and of course we scene our condolences to sherri and family well continue the conversation right now, david thank you for offering those memories joe, i know you got richard now. Yep we got lets bring in media analyst rich greenfield. Hanging from the ledge during a fire can you confirm that and you heard a lot of things that david was talking about. What are your thoughts on mr. Redstones passing im sitting in front of the paramount gates and when i think of the words Sumner Redstone i think of contend is king the film studio, which became a tv studio in a bigger and bigger way, sumner really believed great content is what was required in the Media Business and i think even if you look today its hard to argue that that still not true. Certainly the platforms earnings you know, when you think about the Netflix Technology and all that theres certainly been a change to the eco system but none of this works disney plus doesnt work netflix done work. If you dont have great content nothing else really matters. Its natural. Yep. Well andrew and david what about the legacy of i dont know. I blame it on the investment bankers, you know. Lets merge. Demerge merge again. Take a fee every time. Was the environment that the he coffees operating in, did those moves, were they warranted in your view . Theres maybe too much focus from a lot of Media Companies on trying, to you know, focus far too much on their stock price versus just making great content and sort of leaning into the future but theres no doubt in my mind, i think to what david faber just said to andrew a few minutes ago these Companies Need to be together scale matter when you look at the size. Just apples closing in on 2 trillion market gap. Viacom in the teens billions all of legacy media, we like to call it is small so scale really matters. Does viacom and cbs together make it does it give it the scale that disney has now . Of course not. But greater scale will be necessary. I would be surprised, you know, i think from the moment we started talk about viacom and cbs remerging we said sherri very much thought of this as one of many steps and i think it was very important to sumner to reunite these companies. Sherri was on a mission to get this done while sumner was still alive. Its incredible she was able to bring them back together last december but this is just step one. Moonves slowed down the pace of this combination viacom would have been much further along in its m and a activity if it wasnt for those few years of fighting with sherri and family. The reality is now as you look forward i have to believe that viacom has got several more deals to come because they are still small. Are they bigger than, you know, lio li lions gate, sure they are small they will need to get bigger and bigger and m and a will be a critical part of that. David faber will dont talk about viacom well after sumners passing. All right well end it, rich appreciate you rich greenfield. Coming up well have much more on the markets futures are way up again this morning. Stay tune. Squawk box coming right back coming up on box, jim cramers first take on the gr e trading day ahead. And the hottest corner of the market its all straight ahead. Squawk box will return after squawk box will return after this well invested, well protected. Voya. Be confident to and through retirement. Some big news on tesla this morning, the Company Announcing five for one stock split and earlier this morning jim cramer this is what he tweeted, he says ive urged everyone of the ceos with the big dollar amount stocks to split. Someone listening. Lets get cnbcs headquarters to get jim cramers take on that right now. Jim, you have been encouraging ceos to do it, the stock looks like its up 15 billion in market cap just on that stock split news when ive made the argument that nothing actually really changed, it does make it easier obviously for some investors to get access to the stock, but how should investors think about these splits youre so right this is without a doubt that it creates any wealth, i just think that something has changed am america we have a lot of younger people who want to buy, this fractional share thing really hasnt taken off. To get a chance to own tesla psychologically they feel like it would be better to have a smaller amount any value in the stock thats created by this is false, but i think the idea of getting newer younger people involved in the stock market who arent just brainwashed to put money into index funds is terrific, andrew. Enough time has passed, 20 years has passed since the dotcom, you could say that the dotcom people once again new generation are in and theyre very uninformed i think its up to us to inform them we can be a critical voice for them. Right. But, no, it shouldnt create wealth but it can create new people coming in and, boy, do we ever need that, andrew you know that this business has been os a if i had and we were becoming dinosaurs and young people want to be in because they think they can pick stocks and many of them can. No, its very true. Its very true. Isnt it encouraging . Dont you meet young people who want to be in now and isnt it great . They do no, its very exciting its very exciting that they want to be in and i think, you know, this is what weve been waiting for for a long time. Yes. A lot of people unfortunately missed out the last ten years during this period, of course, we also have to hope that they get educated on this stuff and get educated because of people like you, jim, who educate them. And you. About making the right decisions. And you come on. They listen to you, maybe they buy before the opening they say i hear that there is not a lot of wealth created tesla, maybe we should wait like mike said in a great interview to let it come down, but how about this idea that young people, millions of people are looking at our show and making decisions that perhaps they should buy tesla when it was 270, a lot of them did we are far too critical. Too many people come on the shows and dismiss these younger people and say they dont know what to do and then you look at the records and the records are pulse reverse for some of these younger people. I didnt mean, whats your two cents or more take on bidens vp pick and what it means for the markets . I think that when you look at how middle of the road she is youre surprised she mirrors biden on everything. Im going over her facebook comments, i think she probably walked them back she is not someone who would get rid of the united healths of the world. I dont want to say she has all the democrats want to raise taxes and i wish of course that we didnt have to have a tax raise but obviously when you get offline with people, andrew, almost everybody says what is going to happen to our kids and our grandkids . I think thats a perfectly realistic thing to say after the pandemic okay. Jim, we will see you on squawk on the street. Great show this morning you dont want to be paid because you like it so much. Its not that i dont want to be paid. Good. Because you brings us all down. I said ive never worked a day in my life im happy to be paid for what we do but it is such a joy and a pleasure even on the hardest days in the world to do what we do and i think, jim, it shows in you and what you love in this job and what joe loves in this job, what becky loves in this job and david and carl and everybody. I totally agree we call it a job but it doesnt feel that way most days. I totally agree and we work really hard. I want people to know that we are trying to educate and teach people to be critical. Critical thinking did not occur in 2000 but it can occur now jim cramer, we will see you in just a couple minutes joe . Thanks andrew, we have a little time left for our next guest. Chris varone who says technical indicators are pointing to a notable and encouraging shift in the markets. Joining us to explain that, chris ferone at strages Research Partners where has the broadening been that makes this more positive in your view, chris joe, i think a couple places, i think notably down the cap scale the fact that small caps continue to lead, you are at small verse high new recovery over the last several days, i think thats encouraging, discretionary has continued to improve as well and maybe most importantly for us industrials continue to act better, particularly the transports, particularly air freight i know tech gets a lot of attention, but when you look at this market believe it or not x tech is about to make new highs as well. This is broader under the surface than many people think yesterday, for example, 50 of the s p made a new onemonth high, thats a sign that momentum is returning back to the tape, its a sign participation is broadening out and we welcome that. Chris, lets say that you just take the bear case that we are flush with liquidity and theres no yield anywhere to speak of you know, the spigot are open globally, especially we have the fed and congress, we have executive orders so the money goes where its going to go, it goes in and finally the favorite parts of the market get totally overbought and then finally theres still more money around so it even goes to the laggards and the dogs why isnt this just an example of, you know, maybe the waning stages of a mania rather than showing that we have further to go as it broadens . Do you know what i think is really interesting, joe, is that the expectation was that if tech stumbled the market would be in a lot of trouble thats in the expectation among many for the next several months tech has paused over the last month. Amazon hasnt make an new high and that money has found other areas. I look at a healthybull market in which in which participation is getting broader, more stocks are getting involved and thats been the lesson over the last several weeks. One of the important developments is this resurgence in the transportation stocks, particularly relative to some of the stay at home names so when youve seen stocks like ups and fedex and expediters and then you look at some of the broader industrials, deere, caterpillar all getting involved in this move to me thats a reflection that participation is broadening out and that the markets are on pretty good ground here. What would the technical indicators tell you about the upcoming election, chris or does it tell you anything at this point i think this is where watching the specific groups is going to be notable. I think over the next couple weeks watching health care how that responds is going to give us a pretty good clue, but i think maybe more importantly the person who does our d. C. Work has always talked about the idea in the 90 days leading up to the date if the s p is up the incumbent party tends to win how the market responds broadly here as well over the next number of weeks will be a really important tell on who will win this november. And, you know, we worry about the senate, we dont know. Im going to talk to andrew a little so im going to let you go, chris. Weve got maybe a minute or so left and i want to do a final check on the markets which are going to be sharply higher today. The s p at some point is going to hit possibly a new high which no one probably would have thought of take a quick look at europe and then a quick look at oil andrew, i will tell you that the point i was going to try to make, you are a worrywart, i know that, so i know that you see these polls and theres no way that youre saying that its over at this point and then i was thinking if the predicted is 57 43 what if someone said go over there and you have a 43 chance of surviving if you go over there, its like, whoa, hold on, i mean, 57 43, that doesnt say anything to me, does it . I mean, i dont are you a 57 chance of surviving im not worried about it one way or the other yes, im 100 in agreement with you that it aint over until its over. I know you are not worried. You know what i meant. Anyway, lets go to squawk on the street. Absolutely. See you tomorrow. And this is squawk on the street im david faber along with jim cramer, carl has the morning off. Of course, the markets in focus as they always are at this time given we count down from a half hour from now for the opening of the markets themselves