Transcripts For CNBC Squawk Box 20240712

Looking at the biggest weekly loss since late june the s p both with interday trading. The nasdaq is on track the fourth week in a row on higher prices dow futures indicated down at this poirchlnt looking at yields for the 10year. New this morning, china and the u. S. Have agreed to review the progress of the phase one part of the trade deal well do that in the coming days talks are scheduled from last saturday the review comes as u. S. china ties have deteriorated just summarizing you know that. Thats one of the reasons why. We knew that yes we have seen a series of things that show the relationship has deteriorated if you were to try to put the different segments of the rift, you are up at almost double digits how many Different Things have become bones of contention and the second largest, largest some days economy in the world. A global nightmare we need them, they need us on a certain way it is official taking advantage on what the administration would argue from the markets perspective on this note from china, remember what happened in 2018 where you saw the market had gone up and significantly pulled back on the concerns of the trade talks and the poorer relationship to this point, the market hasnt seemed to care they look past it on the differences of the trade talks that would continue to go forward. We think that would be a big issue for the markets. Watching the slightest body language for some markets. We are at alltime highs in the s p. Despite what we talked about despite of so many things and why people think it is not real and maybe it has to do with all the stimulus we have been having trouble making head way moving higher even though we have opportunities. I cant help but come back to that one chart that shows how things really had changed in the last month or so in terms of bullishness and how people were more accepting of the levels where the market was in contrast always helps the market go higher now im wondering. We are nowhere near 5 or 10 saying when she was on, i can think of a lot of fundamental back drop reasons, the market would go down 5 or 10 at this point. Take your pick the laundry list is long. I was surprised by the reaction yesterday and to the minutes why do you think the fed is doing what they are doing right now. They are worried and not because they think everything is cheery. Everyone but brian who is like, what is everyone talking about, this is awesome he tempered things. Reading again in the journal that was the best quarter ever it is just very strange. 58 years theyve been around for that have and have notes in the meantime, we are worried about the economy and what comes next. A new round of checks may be sent out in the next week or two. Calling for stimulus negotiations to resume soon. He defending the administration for failing to strike a deal with lawmakers we are providing assistance weve been trying to negotiate with the other side for several weeks. Many weeks we are in mid to late august we started this midjuly we are not going to give up 3. 5 trillion more the economy is better shape than it was last winter kudlow also addressed the push for tiktok to sell its u. S. Business the president would like to deny china some of the proceeds of the sales. Something that hasnt been done in the past but is being done now. Apple closed just under a market cap of 2 trillion yesterday. Meantime, Morgan Stanley says apple has significant iphone upgrade potential in china along the same veins weve been talking about ahead of the launch of the next version of the phone. Saying 68 of installed inphoip in china are over two years old. What time is it . 6 06 6 07. Well have more of that give some of that time to our guests what a concept coming up, airbnbs ipo plans were derailed by the pandemic but a here to be back on track we head to break, check out the shares of nvidia reporting better than expected sek Second Quarter results forecasts came in better than estimates. Reporting to some investors. Those shares are under pressure. We are coming right back [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. [ beeping ] you say that customers make thelets talk data. 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. Welcome back airbnb has confidentially filed paperwork. Obviously not that confidential. Not determined the number of shares it is listing on the nasdaq. They were prepared to debut via direct listing but plans to raise cash through the ipo taurking timing on cnbc back in june at this time, we are not ruling outgoing public this year we are not committing. We want the world to be ready. That means travel needs to see more recovery. Airbnb raced to raise funds and secured 2 billion in loans at steep Interest Rates. Airbnbs current valuation is around 18 billion half of what it was in 2017. Futures now anywhere on the dow between triple digits. Market rally pushed the s p to a new record Federal Reserve released minutes. Now to the principal strategist for edward jones. Nila, you have not been pushing back against this rebound as a strategist you explained it fairly well it is what we talk about all the time markets are forward looking and there has been a lot of stimulus that kind of explains it weve been talking about the possibility that bullishness got a little overdone. Do you expect some bumps along the road how big is this bump you are looking at in near term . Good morning. You know, a bull back would not be expected at this appointment. Looking at historically at other early stage, well call it a bull market for now. You can expect to see a pull back this year this market could get rattled by the paean. We are not out of the woods in terms of the economy right now you have to believe two things the recovery will be short and quick and two, Interest Rates will stay very low for a long time we can buy into that last one easily the fed is committed to it the former may be under stress at times as we have seen the economy play out in an unscripted way because of the pandemic we talk about inflation as a eminent threat how far do you see that . Is it something to be concerned with today this is the number one question we get from clients how big a threat is the inflation. The covid19 has been deflationary its true weve seen inflation rebound and well continue to see it rebound Interest Rates are going higher but the question is to what degree we are not seeing the spike in prices we are seeing something very different play out we think that stays contained and stays well below that target where the fed has been trying to reach the past 30 years. It is funny because we hear the market would discount on the future i saw the comments and politics and wonder what nel and thinks about what is happening. It is so right in front of your face, we are not even talking november you think near term, the politics we need to woreyoi about are the stalled negotiations. When do you start worrying about november or do you not worry about november markets are going to reability to november. We dont need to hang our hats on the kneejerk reaction whether divided gornlt governments and the white house. The policy, the shortterm measures that the markets and houses are hoping will pull out by the end of the month are so crucial. Eventually, it will have to stand on its own two feet. That handoff to the Government Support and recovery are really in the early stages. We think another stimulus relief package is required at this point. How many offices now i always admired it. It seems like a smalltown firm where you know your guy. How many offices and where is it mostly concentrated . We have over 19,000 advisors and over 18,000 branches located all over the country over 70 of the country has an edward jones office. I just passed a new one near my home in new jersey those branches are part of the community. We hear what clients feel and what they are concerned about. They are concerned about the economy and the level of debt. They are also concerned that the stock market really is reflective of the longer term fundamentals thats what we are trying to connect for them ive seen a lot come and go i dont know, theres edward jones, still edward jones. Almost 100 years now. Weve seen it all. This is another chapter. The story is always different. The advice is the same think long term, diversify, dont get overrisky. Thats what we are telling our clients. Thank you well check back with you soon appreciate your time good to see you take care. Thank you, joe. When we come back, shutdown of uber and lift Ride Services in california could come as soon as to night we have the details after the break. Check out shares of intel rising after the Company Announced it is accelerating the plan to buy back millions of stock it was announced in october but suspended in march intel said its stock is trading well below valuation that stock is up 3. 9 . 50. 21 was the last trade. Well be right back. Welcome back, everybody. Now it is time for our socially distanced version of chairs. Im in my chair here and joe is there. Lets get you up to date for the first stories of the day uber and lyft warning they will shut down tonight unless an Appeals Court steps in to intervene. The company says it is impossible to classify hundreds of thousands of drivers as employees. The classification of driver saves the company. They are relying on the fact that uber and lyft are so popular, youll hear californians complain about it the argument theyve not had time to prepare for this is a little specious. To say you dont have time to do all of this, theyve known this was out there and a threat more than six months. There is no answer to the threat this next story i think it is more of a california story i do youve heard elon talk about, im out of here. Another one, a really sexy one Data Software company palantir relocating from palo alto to denver, colorado they didnt say for the climate or air or mountains. The Company Announced it filed for public stock offering. In an interview with axios, ceo said, hes against the increasing intolerance and mono culture of the Silicon Valley and is considering the move. Fur a state and you provide services if you are a state and you want to help the people that live there, you need tax revenues it has to happen it comes from the companies domiciled there or that work for the companies there. Can you be as woke as you want to be. If you cant figure that out new york and new jersey, you drive those people out you dont get the million you are taxing them for because they are gone connect the dots i get it with elon musk saying hes going to move a fact a factory to texas uber and lyft cant just move. The idea that they cannot operate in those states, i think this is a huge deal. Something weve been watching a long time to figure out how they work with us and around it they would like to get on the ballot to see how voters support this again this is a huge game of chicken thats been going on for a long time you need it in california a lot. Not the greatest Mass Transit System too many cars, too many vehicles, too many one drivers with google maps or waze i lived out there for seven years and i was trapped on the freeway thinking id like to get off. Im afraid ill just stay now you get off and going through neighborhoods. People are mad because their quiet neighborhood has people coming through california is too many cars. It almost cancels the nice weather. Great weather i see krispy kreme. This is for you and really andrew krispy kreme announced it will be opening the new flagship times square location on september 15 right around the corner from you. Offering a glazed water fall and stree streetside pickup saying theyll dish out 380 dozen an hour. They are awesome. There on the banned list i cant do it. You can do the math on minutes on the treadmill what would you rather do i dont want to be on the treadmill 11 hours a day i choose not to partake thats why i say this story is for andrew he can eat like 11 or 12 im not sure how it works with him i didnt realize what a great line this was. The one vice he admitted for the sorkin family was sparkling water. I saw that. Not the white fanning sparkling water. White claw, white fang that was a good book. I have two german sheppards i love those animals white fang was the wolf german sheppards are as close to wolves. Believe me if i start howling, within two seconds, well do it together. I dare you. I may do that we are a pack. Kamala harris making history becoming the first black woman to become a major partys Vice President ial nominee well show you the highlights and potential impact on your money. Futures are town 69 points we like to say batten down the hatches. As we head to break, looking at yesterdays s p 500 winners and losers experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 rx 350 for 419 a month for 36 months. Experience amazing. At your lexus dealer. Eits the simple joy of washing your hands,. Without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. Good morning u. S. Equity futures continuing to pair their losses the s p indicated down just under seven points the nasdaq headed the other way as it has so many times. Indicating up 16 or 17 points this morning senator Kamala Harris giving the biggest speech of her political career she made history accepting her nomination as Vice President ial candidate. With us is frank luntz he is polster and strategist if joe starts howling, im calling the aspca. If we can take a tour of your virtual oval office, adding the dogs might be good why dont we start this morning with what the senator had to say about President Trump and the economy. Listen in. Right now, we have a president who turns our tragedies into political weapons. Joe will be a president who turns our challenges into purpose. Joe will bring us together to build an economy that doesnt leave anyone behind where a good paying job is the floor, not th ceiling. What do you think about that, frank. The idea of laying out this case how did she do with it trying to offer some things inspiring versus trying to attack the Current Administration how are they shaping up on this front . This convention reminds me of the 2004 john kerry nomination in this corn vennvention, she dt herself. She talked a lot about the trump failures and did communicate and have communicated significant amount of why joe biden has a good character but theyve laid off the policy and thats really what people tune in to at a convention i want to correct one interpretation they claim viewership is down. On cable tv it is down on streaming, online a Record Number of people are tuning in people are watching even though you dont have the live drama most conventions have. In particular, Kamala Harris gave a good reputation of why joe bidens character should be trusted but she did not get into tax policy and regulatory policy which viewers want to see. The business as secretarpect i did something consultants did, which is turn off the sound. Just to watch her. She had a very engaging presentation voters want to be informed tonight, joe biden has to give more specifics about what hes going to do. That is going to challenge viewers and maybe thats why they are not doing it and not being specific frank, lets go back to this. You said this reminds you of the john kerry 2004 Democratic Convention that wasnt a Successful Campaign do you think this one will be . I think it is more likely to be theyve also learned from mondale, talk of the policy will upset more they are not going to be specific about that. The key in any political commercial thats all this really is, is to get people to watch and listen to get people to feel comfortable about the candidate and the campaign and one one of the speeches delivered was laid out. I know if donald trump was watching, hed be really upset obama delivered a blow by blow why he should not be reelected in the end, it is not just why the open own nebt is wrong but also because the candidate is right. Getting into what joe biden will do on day 1 and day 100. They have successfully criticized trump they have not yet successfully built up joe biden yet tweeting this, no former president has ever attacked his incumbent successor like barack obama. Lets listen to a clip here. Donald trump hasnt grown into the job because he cant. The consequences of that failure are severe 170,000 americans dead millions of jobs, gone those at the top take in more than ever. Taking in a calculated risk here this is a referendum of donald trump he cant talk about where jobs were in march, where the economy was. Nobody remembers you talk about how good things have gotten, will be lot of on people who dont have work or are nervous about losing their jobs two things are remarkable. One is the focus on Small Business it may not please wall street, it may please main street democrats have talked more about supporting Small Business. Second, the focus on pennsylvania obamas piece, he delivered it from philadelphia. There has been more pennsylvania attention. More speakers in pennsylvania. They clearly realize that thats the key state. Even though this is supposed to be in milwaukee, they are paying close attention to the language they use tonight, joe biden has got to be specific about how hes going to bring back millions of jobs obama says theyve lost they would have missed this golden opportunity it would be 30 million to say this is not what im against this is what im for certain enough to raise taxes but he is. Thats what hes challenged on five days from now, six days from now, the republicans will get their shot this is the last time until the debates where you get 30 millio people watching you like saying you are hungry five or 10 minutes later. Production values. It shows you this is something real, which voters do want but they want something substantial. That is something tonight will be all about something substantial. Frank, thank you. Well talk to you soon probably next week to talk about what to expect from the republicans. Can i show you one thing. This is the original poster. The actual original chalk drawings every time we talk, ill show you Something Else you might only see in the smithsonian actually in my home. Where did you get it . At an auction it was such a hit. You can now find it in millions of places. The original poster and chalk drawing. You can see hes a lot more menacing with the Kamala Harris historic event, i thought id bring you some history thank you good to see you, frank thanks. Joe thanks, beck take a look at the Vaneck Semiconductors thanks to increased use of deck during the pandemic. Well talk about why this is working. As we head to break, here are the biggest winners of the s p led by target. Happened at the big upside surprise yesterday announcer todays big number, 350 million. Thats how many iphone users are due for an upgrade the next 12 to 18 months apple sold 195 million iphones in 2019 generating 260 billion in revenue at massmutual, we know that traditions matter more if theyre celebrated with the ones you love. Thats why were proud to partner with the kentucky derby. China e commerce giant releasing quarterly numbers. Introducing the profit line. You look at mobil monthly active users. A key metric they totalled 478 million. That was up from the quarter it did see covid19related disruptions. That stock is down by 1. 5 time for the executive edge. Salesforce extending the option for employees to work from home until at least july of next year next year wow. Tough for this year matches similar moves like facebook, slack and uber and giving each employee 250 to buy equipment to work from home and giving parents an option to take six extra paid weeks off i dont know what it means for us id go back. Ill be back on monday, if you didnt know. Im feeling really new yorkish with my background ill be back at the nasdaq for four days. Then i dont know. If i leave again and go somewhere, im stuck again the delay is killer. We do what we have got to do. I used to have a personal trainer. He goes hey, we are opening next week can i count on you to come in . Are you out of your i just cant. The machine. Maybe it is safe i cant think that way would you . Would you go back to using a machine someone just used . Like you needed an excuse to not go back to the gym, right . Or if i even needed to work out. I do i will say being outside in the summer has been great. Im wondering whats it is going to mean for all of us, the kids especially with the colder weather. Summer time has been great outside and sittups. Ive been doing them doing pushups and sit ups far away from the crowd. It is sad. Bike riding walking. I feel bad for them me too. When we come back, chip makers like nvidia help empower the rally over the coming months it is down in the premarket trading this morning we have that story next. 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. 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. Tools, cattle, grain, traded goods. Weve just been finding a way to keep on pushing. Even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Nvidia reports Strong Demand for its data and chips the stock came under pressure after a more than 170 run over the past year. Semiconductor stocks have been a big part of the rally outperforming the Broader Market joining us is Senior Semiconductor analyst at bank of America Securities vivek, this does not dampen your enthusiasm for the sector or for nvidia are you raising your price target thanks for having me. Nvidia is the topic in the sector we think its on its way to become the first half a trillion market cap we are going to go through these variations and noise where the stock runs up a lot into earnings but the key is they reported very solid results. 30 organic sales growth including 80 in the Data Center Business think about the 80 . That compares to cloud spending. They are clearly executing extremely well gaining market share and position of where technology is going. We focus on top line growth. Its over twice what we see from a lot of other software and Internet Companies its not just growing extremely well its extremely profitable. You go to 600 you were at 520 for the stock. Thats right. What ive seen with nvidia, we have followed it for almost a decade now, is its less about the price target, per se i think its more about the megatrends what is important in technology and how the company is exposed to it. When i look at some of the largest and fastest growing, artificial intelligence, gaming, robotic, awe tutonomous more ro areas. They have gone from under 5 billion market cap to 3 billion market cap its not selling chips, its selling complete systems for 200,000 we think of it as a chip company but its providing integrated systems. That really reduces the time to market for a lot of its customers. A lot of advantages. We think its still in the early stages of its growth. I wanted to talk about intel. This next cycle. Im not going to a cocktail party. If i were i would love to talk about 7 nanometer next pier chips. Smallers better, right . I dont know how you can play a game with eight, right is it any fun with eight we need to talks about intel next time you come on. Its not about the cloud a lot of it is about gaming. Its next generation is coming more viv individual . More fun whats it going to do . Sure. Absolutely more life like gaming. More technology and hollywood. Its bringing that into the hands of the consumer. Cool. Vivek, want to have you back that was not nearly long enough. I its cool to talk about it people have been making so much among long nvidia. Well talk about it. Becky. Thank you. Thanks, joe. When we return, Washington Football Team president jason wright is with us. He made history as the first black Team President and he is taking over a team on top of a virus impacted season. In the meantime, check out the futures. We are under pshrel our. S p futures down by 3 1 2. When it comes to parenting, youre a pro. You know reflexes are key. You know your kid doesnt step around puddles. And wet shoes, not cool. You know what else isnt cool . Those cheap leaky diapers. Because with luvs, you get the prolevel leak protection youre looking for. Luvs, parent like a pro. Tools, cattle, grain, traded goods. Even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Futures under pressure as investors digest comments from the fed and word from beijing on u. S. china trade talks historic night at the dnc as senator Kamala Harris becomes the Major Party Nominee and the 2 trillion mark apple breaking through that threshold. What it means for investors is straight ahead the second hour of squawk box begins right now. Good morning and welcome back to squawk box here on cnbc im joe kernen with becky quick. Andrew is off. They have paird their earnings to less than 50 points on the dow. The nasdaq is gaining ground up about 16 points tonight former Vice President joe biden will accept the nomination joining us is Libby Cantrell head of u. S. Public policy whats the most likely and what does it mean good morning. I think youre absolutely right. Everyone was humbled in 2016 when people were pounding the table about the election outcome and it never materialized. I think with some humility you can prognosticate some of the most possible election scenarios. Our minds are too. One would be a democratic sweep and another would be more of a status quo election. Donald trump in the white house and divided Congress Like we have now if theres a democratic sweep, that clearly would have market implications if that were the case, were still looking at a narrowly divided minority senate. Theyll still have to work across the aisle the market would have one reaction if that were the outcome. The nuance and the subtlety is that it will still be, again, a narrowly divided senate. I would be loathe myself to make any predictions about the reaction in the stock market, even if it was a clean sweep i think of policies and i think the knee jerk would be that this is not great for Corporate Taxation not great for regulation and a lot of things. I still cant theres something flying around. I still cant with any degree of absolute certainty think that would mean a stock market selloff, can you thats exactly right. For the sectors more sensitive to Corporate Taxes, there will likely be some pressure in those sectors. I do think we would anticipate Corporate Taxes would go up. Joe biden has put out a 28 Corporate Tax rate after all of the machinations in congress, that will be lower, 24, 25 . Your point is exactly right. There will be some sectors that will likely face some weakness from a macro perspective, its difficult to draw any resolute conclusions because at the same time you are likely to get regulation, higher taxes at the margin, there will likely be a lot of fiscal stimulus we know from democrats and Vice President biden, they want big bills. If they can get through congress, which is a big if, that can help provide a tailwind i think its difficult to project the election outcome, its even more difficult to project how the market will react. Yeah. The last time around, plenty of people had egg on their faces about just how far the market was going to fall if trump was elected. Theyre on other networks still but it was so embarrassing that i would be very loathe to end up looking as ridiculous as they did. Where are we on the filibuster what if that changed what do you think of the possibility of that being dealt with will they not do that . It will haunt them the next time theres clearly diversity of views outside of pimlico and the future of the filibuster my own view is former Vice President biden if he were in the white house, he has said he is open to reforming the legislative filibuster which requires 60 votes for most pieces of legislation, hes going to try to avoid doing that he is a legislator at heart. He is one of the most prolific bill passengers in congress ever i think he will really try to use regular order, so to peek, work on a bipartisan basis and try to avoid whats viewed in washington as the Nuclear Option it takes 50 votes to change the senate rules, change the filibuster if democrats are narrowly divided and only had 51 or 52 seats, that would mean mere unanimity. Its a difficult thing to get in the best of times. Its certainly a risk but not necessarily my base case because i think if bidens in the white house, he will try to keep it. The markets and sectors that have been adversely affected, people say we have to wait until after labor day. Thats crazy the market discounts way ahead of that. It does seem like were definitely not ready to have the election tomorrow. There will be more of a reckoning after september 1st. Do you believe the polls right now . Are polls ever any good, libby there are other Macro Economic things going on now that are understandably in some ways distracting the market, whether its the trajectory or various tools so i think youre right. It will likely, you know, start to focus on this in september. In terms of the polls, joe, again, i mean, we saw what happened in 2016 i think a lot of people were humbled. There were a couple of differences though in terms of the polling we saw then and theres not as credible of a Third Party Candidate as there was in 2016. We knew the election that took away our 6 of the National Vote from Hillary Clinton and for donald trump, the fact that there isnt a third party juan date thats credible, the election outcome wont be as unpredictable. There are other third party voters who didnt make up their mind until the last day. I think everybody has to have a lot of humble pie when they talk about polls. Not only in 2016, but 1988, 2004, the candidate who was leading did not necessarily go on to win. Its directionally important to note but clearly they are not perfect in terms of their prediction power. Not a lot of money and volume in the predict it sites, future. 59 43, biden versus trump, i mean, it was like 90 for hillary. 59 43. A spacex ship has a r59 chance of surviving 59 . Im going to die are you kidding . 59 does not make me feel great about whats going to happen, does it . That leaves so much room for a 40 outcome. 66 33 i wouldnt feel that great. I dont know what to say, libby. I dont know where we are. Nothing would surprise me in this world well see. I will just say what were telling our clients to look at instead of the national polling, look at the states that are going to matter. Theyre the usual suspects, florida, michigan, wisconsin, pennsylvania, north carolina, arizona. Florida is honestly probably the most important state for the president s reelection. If you are going to look at one state, look at florida look at the direction of the country. Its quite negative right now. Again, that could certainly snap back by november if you look at those two things, the direction of the country and florida on the eve of the election youll have a good flavor about what the outcome will look like thank you how long have you had this job at pimlico was there someone different in your job four years ago or were you there . I was there i was there, joe it was me. We had somebody else on that i cant remember who it was. It wasnt you. They didnt even they told me exactly what was going to happen because it was done and heres what hillarys going to do i remember that. It wasnt you though anyway, libby, maybe it wasnt even pimlico anyway, thank you. We appreciate your time. I didnt get really i didnt feel one way i didnt feel one way or the other where you stood on this. I think its pretty objective. We appreciate it thanks, libby. See you later. I remember it vividly it wasnt you and it may not have been your firm but somebody said it. Anyway, when we come back i think it was pimlico. I dont remember who it was. Someone might remember, beck i do have a pretty good memory. You have a better memory than i do ill give you that. When we come back, cash is not always cash on the Balance Sheets of some of the nations largest companies. Theres a new study thats out that shows how some of these companies are moonlighting as hedge funds. That story is next the pandemic is still hurting main street. Many Small Businesses may never return were going to take a look at the divergence between the haves and the have nots in business. Things have turned around for the nasdaq its in positive territory the dow has carved the gains in half down 51 points p futures down 4. 5 squawk box will be right back. ] 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. Our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. You say that customers make thelets talk data. 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. It turns out cash isnt always what it seems a new study found some surprises when it examined the Balance Sheets of some of the nations Biggest Companies. Leslie picker joins us right now. She has more of an explanation on this story. Good morning. Reporter good morning, becky. That study found some of the Biggest Companies here, apple, alphabet, microsoft are each running many bond funds that appear as carbon their Balance Sheets they poured through the footnotes and found other Company Corporate bonds amounted to 390 billion by 2017 or about 25 of corporate Financial Assets now theres little transparency about the risk levels of these bonds and through the pandemic earlier this year many corporations which appear to be cash rich on paper could not sell their bonds to free up actual cash. The fact that the market was so distressed prevented markets from wanting to sell we like to call them kryptonite. This is supposed to be a safe amount of cash for rainy day in bad times they turn into kryptonite that you cannot use at all reporter the researchers are urging policy makers to take a closer look at the larger systemic risks as a result of the holdings, becky. I would think some of the risks to the bond markets, leslie, would be if all of these companies were told they had to sell all of those holdings at the same time. Exactly he said even just one company, even if apple which is the largest holder of corporate bonds, even if apple had to sell the bonds would be akin to the Largest Bond Fund blowing up we know what would happen if the Largest Bond Fund had to blow up we should Pay Attention to this and look at it as something that at least just to be transparent about the risks that are out there. I would also think if you have a cash board of 170 billion, it wouldnt be a bad idea youre probably not going to need all of that cash at once. It seems like anything, as long as youre prudent about the way that it goes and the percenta s percentages, its the right thing to be doing. Thats why companies have been doing it. They look for yield. They earn a lot of income overseas they were doing it for tax purposes its easier to keep it overseas and earn yields and bring it back, pay taxes and by the way its just in cash which is earning nothing. Companies were doing it as a prudent cash management. He points to it in the example of ford which isnt on the same level as apple and when they needed to free up some cash during the pandemic, they werent able to. Yeah. Strategies depending on how you use it, how much cash you have on hand, how much you need leslie, thank you. Good to see you. Thank you coming up, the president of the Washington Football Team jason wright joins us to discuss the upcoming nfl season and then allianz chief Economic Advisor Mohamed El Erian talks markets, the divergence between main street and wall street and much more quack box is coming right back. Time now for aflacs trivia question in what year did google acquire youtube . The answer when cnbcs squawk box continues and this is the 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. Some Companies Still have hr stuck between employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Now the answer to todays aflac trivia question. In what year did google acquire youtube . The answer, 2006 the 1. 65 billion deal was finalized on november 13th of that year. Jason wright is the new president of the Washington Football Team. Obviously thats a team thats going through a significant rebranding as a former nfl player and former partner at mckenzie with an mba degree, he happens to be the first black Team President in the nfl he joins us right now. Jason, first of all, congratulations. The last time i saw you you were still at mckenzie. It was a year ago. I want to say congratulations on the job. Its great to psee you. Great thanks its great to be back. You enjoy a challenge boy, did you get one here. Where do you start well, i mean, theres a few places to start. Obviously youve laid out one, that were and a half have i garretting a covid season. While theres a really good plan in place at the team level and the league has given good guidance i think every business has learned that covid is incredibly unpredictable. Have to be data driven, be agile. We have to shift our operating model. Things will change the health and safety of our players and staff is most important. We have to get our culture right. Address the allegations of Sexual Harassment. Theres so much going on not to mention just coming up with a new name for the team as well and dealing with the idea that youre the Washington Football Team for now where do things stand on the naming front right at the beginning processes of thinking about not just a name. Ive been calling it more than that ive been calling it an identity from a business perspective, this is critical to how we think about expanding the value of the franchise over time. Its tied to whats really substantial about creating a new identity it informs the way we engage with fans, the way we redesign the fans and if you think of fan engagement, its a driver. This is an important decision. It can be done in an open and collaborative way so that we get it right it is really representative of the area and everybody who cares about the team. Ive heard a few good suggestions that have been brought up maybe the americans would be a great name or after the red tails after the Tuskegee Airmen out there. The worst name ive heard is the swamp hogs do you have a favorite name . No, i do not. Ive learned a couple of things over week zero on the job. We have a really creative fan base, they are passionate and super engaged and we have some really funny people. Jason, i think of your experience as a player, not just a player but i know back in 2011 for the lockouts you were one of the Labor Union Representatives for all of that. You obviously have a full experience of being able to bring this to the table. Where do you stand when it comes to covid and player concerns about safety how do you come down on that making sure you do whats best for the team and making sure youre taking care of the players. Thats a great question ill take a step back and share an experience i had as a rep as a player rep it was the first time i was exposed to the first time of the sport and thinking about all of the things that happen in the background that allow us to have this game that so many people in this nation love deeply and around the world love deeply. But what i learned in that process and i went through in my own mind was that its really about creating transparency of information and just like anything in the market, every individual, company, investor has to consider the risk and return calculation to them as an individual i think the thing that we as teams and at the league owes to players is to have a clear plan that lays out things with as much detail as possible in the environment where we know covid has returns. If were able to lay out a plan and players assess and have a ton of autonomy and make risk tradeoffs decide how they want to participate thats the best thing to do. Lay out the clear plan, follow best practice guidance and follow from there. Everybody is free to make the decisions they need to do and we make sure everything is tight. You mention the culture is going to be a big issue you are working on you also brought up the Sexual Harassment charges that have been made against the team what does that mean in terms of how you handle it, what you do, how you change culture thankfully this is something ive had a chance to helpmany complex, important organizations around the world do over the last few years in this case in particular i was excited to take this role because of what Dan Schneider did around these allegations they brought in an independent investigator to take a look into this in a season that was a smart one. That signals to me there is a shift. Bring somebody in and allow them to write a report that is completely independent it is a risky and bold thing to do irrespective of where the starting point is and find out when im enrolled. I know where we want to take it to a culture where people are empowered. Culture where all voices are included on the key decisions, Strategic Direction of the club, not just because its the right thing to do but because it is the prudent business thing to do im sure youve talked about this before. Diverse leaders on decisions make better decisions and generate more value over time and we need transparency in our culture. So depending on where we are i know the three to four paths that are likely to get us there. We have really talented people and i know we will be able to move there quickly. We really appreciate your time we love to get an update from you as you continue down the path its good to see you again well take care and see you bye. Joe thanks, beck. Still to come. Mohamed el erian, chief advisor from allianz apple crossing the 2 trillion mark but failing to close that historic level well discusthe mps coany rise and what could be next for the stock. Well be back. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. Tools, cattle, grain, traded goods. Even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. The stock market that sits near all time highs. Main street is struggling at large and a large percent of r of businesses may not surprise the pandemic Steve Liesman is here. Tens of thousands of businesses are shutting their doors, many permanently. The economic effects could be felt for months and years to come in data prepared for cnbc, the workship Management Company kronos found fewer than 500 companies are closing their doors. Theyve scheduled no shifts compared to 4 of larger clients. That gap is growing. Dave gilbert son tells cnbc were going to see a long, slow bleed out of Companies Going out of business along main street. It will take 18 months to play out. As most recessions do, this downturn has accelerated existing trends before the crisis concentration had seen Small Business formation on the decline. Bigger companies in the pandemic have taken market shares with the ability to use and adapt Technology Jacob walter, hes cofounder of blueprint that lends to small and medium sized businesses, he says all of our time now is being spent on forbearance agreements theres not a whole lot of new lending going on walthour thinks 20 to 30 could shutter. 20 to 30 that have shut down due to the pandemic are in jeopardy it could make the situation worse. Becky . Steve, thats what i was going to ask you about is the fed focusing on this . We know theyre worried about the economy, fallout on these. Are they focusing on any ways to specifically help Small Businesses versus the big businesses that do have the advantage . You can look at that a million different ways, whether it was the big retailers that were allowed to open versus the small guys that werent or as you mention, technology or getting access to lower cost loans is there any way the fed could do this now that the ppp money is on the vench of drying up yeah, its on the verge of drying out that is a huge issue, not to mention theres the kevin oleary camp of things which is how much should the government do here. What were going to talk about tomorrow, we can talk about it today, if you want, too, which is theres differentials in success of the programs. The success to the Big Companies has led to really low Interest Rates but the lack of success or Similar Program for Small Business means the existing differential in the cost of capital. I know it sounds wonky for 7 30 in the morning, but if you want to talk about outcomes, the differential in cost of capital are things that determine who lives and who dies if you cant do this, the fed main Street Program is a bit on its its not quite standing up as tall as it could be. Thats an excellent point kevin oleary has made the point hes going to be here to talk more about this. The point that businesses need to stand on their own two feet the programs that are out there have advantaged the Big Companies to a great extent. Absolutely. Thats one of the things that need to be looked at the ppp program was very successful getting money out the door not to uk is sesful in getting money where we need it most. Coronavirus and the lending found that the lending didnt get the places as much where the coronavirus hit hardest. It was one of the functions of having to do the program quickly. So another program could really help Small Businesses where theyve been hurt the hardest and hit the hardest. Thats one thing to think about. The feds programs and bond market have driven down Interest Rates. Google borrowed money at 0. 75 Business Loans for Small Businesses now are 8 to 12 right now. Jacob walthour who i spoke to said the capital infusions into the Small Business lending market are down 70 to 80 . Ill bet thats true of kevins portfolio right now. Im almost certain hes withdrawn the amount of new capital that hes putting into this field look, i get why banks are reluctant to make loans or making them at such high rates. Sure. Small business is much riskier. There was a federal program to back up some backstops on potential help you might see more of that Small Business versus big business in covid19 and wall street versus main street. Joining us is Mohamed El Erian he is the allianz chief Economic Advisor. Weigh in on this what has the government done to this point that has unintentionally helped big business over Small Business how can that be remedied good morning, becky look, the strong have been getting stronger and bigger. The weak, weaker and almost disappearing if you ask why, it has two elements to it one is whats happening in the economy, whos allowed to reopen, whos not allowed to reopen if you are an Investment Grade issuer, youve been able to issue 1. 4 trillion for a year the last time we saw that was in the whole of 2017. Weve seen it in 2020 in eight months at record low yields. If youre a Small Business, the fed numbers show the bank has tightened Lending Conditions on you. Here easy access, people are throwing money at you. Here, very difficult to get access so youve had a combination of things and im really worried. This may be good for the stock market but will have huge economic and social implications down the road. What needs to be done a few things. One is you need to focus assistance better. The view so far has been go through the marketplace, go through Financial Markets and its going to trickle down that doesnt work. If anything, youve heard me criticize that weve done too much for markets the feds shouldnt be buying high yield bonds that risks creating Zombie Companies that ironically take market share away from dynamic small companies. Youve got to do a little bit less here and here you have to do much more focused assistance. You heard steve say, hes going to talk about it tomorrow, the main Street Lending program isnt going well we need to fix that. We can fix that. We can fix that how by understanding better what it is were trying to achieve and by having the treasury underwrite the risk so that the fed doesnt feel its being dragged away from just lending you know, this stuff is fixable. The engineering is there its just a question of political will yeah. Steve, how important is this just in terms of the jobs picture . Small businesses make up a huge portion of jobs in america yeah, depends on how you count it, becky. Its 50 or 60 i think 3407mohamed i was shg my head putting thumbs up for almost everything mohamed said the interesting economic implications have to do with dynamism in the economy. Almost all gauges of dynamism in the economy have been on the decline. Small business formation, entrepreneurship has actually been declining for several years now. Not a Trump Administration thing. It began in the Bush Administration when the dynamism began to decline what does that mean . It means the factory of new ideas and new companies and new dynamism, thats going to be on the decline. If they go under, if capital is not available, i think we have a report coming up today or maybe it was yesterday that the same dynamic is at work in the Venture Capital business where the money for these new technologies are going to the bigger established companies and its harder for the smaller startups right now, becky, to get that money so theres a shortterm implication, i think mohamed talked about that, spoke well about that about social implications theres longer term implication when it comes to new development, productivity. Mohamed, how much of this concern is whats weighing on the outlook of the Federal Reserve . They have to see it coming i think they do see it coming theyre pointing the finger at congress saying, congress, you need to do something i think its an allin government approach thats needed, becky. Remember what Small Businesses do theyre not just large employers. They also are the main way to have Inclusive Capitalism and marketbased system. If you want capitalism to be sustained, we need buyin from a lot of people. You cannot get buyin if its all about large corporations and thats why this is a really important issue and im really glad you are paying attention to it it speaks to what makes this country special. Well see more and more concentration. Well see the supply side less responsive and then well have bigger issues economically, socially and politically. Mohamed, its great to see you. Thanks for your time steve, well see you back here tomorrow yes. Well see you for jobless claims in a little bit yeah. Yeah see you then. Joe . Its thursday. Its thursday, it is. Must be jobless day. Ground hogs day. We are on chip watch. Im hungry no, no, no a number of names in the sector on the move this morning that is after the break. Plus, apple becomes the First Publicly Traded Company to hit 2 trillion in market cap. Doubling in valuation just over two years. Were going to speak to an analyst about the companys stock price and product potential. Good old tim cook. Unbelievable well be right back. Traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value stock price and product potential. Good old tim cook. Unbelievable well be right back. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Welcome back to squawk box. A number of chip stocks on the move lets start with nvidia reporting better than expected Second Quarter results on continued demand the company also forecasting Third Quarter sales above estimates but results from nvidias Data Center Business disappointed some investors. That is pressuring the shares. Less than 3 4 of a percentage point. Shares of intel are on the rise this morning the Company Announced its embarking on an accelerated Share Purchase Program to buy back 10 billion of stock. This is part of a 20 billion buy back program that was first announced last october suspended in march intel said the stock is trading well below intrinsic valuation and xilinx will supply semiconductors for subarus new driver assistance system the socalled zynq chip. It will debut in the upcoming lavourge were running out of names, becky. Running out of names. I thought that was a typo i was looking at the prompter like what. You saw me. I was trying to figure out gravel its the jumble. Yes it certainly is. Its not even just its not even just a jumble its backwards is it really is someone messing with us, the levorg . Thats really what it is midsized hatch back its grovel. Change that remember the nova. Chevy nova yeah. There was another one that meant fart or something in some other language. You know what i will tell you . The toyota trucks, the ones, the toyota racing trucks, it says trd. People are driving around with terd on their truck. I never understand that. If i see trd i see turd, too. Any vowel sort of tird is turd right. Ter is turd tur is turd. Tyrd is turd andrews sorry hes missing this theres no fixing that there is no fixing that. When we come back, apples valuation doubling in two years. Reaching 2 trillion in market cap. It is the First American company to do so well talk about whats driving the stock higher and what it means for your portfolio futures at this hour have moderated some of their losses, at least last time we checked they had dow futures are back down by 80 points still not as bad as we had seen earlier. Triple digits down this morning. S p down by 7 or 8 points and the nasdaq up by 8. 5 well be right back. Hey, kids welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Welcome back, everybody. Airbnb sharing economy pioneer has confidentially filed to go public that move is a key step forward for the shortterm home rental company. It comes after a few bruising months for the company deidre, this is something a lot of people have been waiting for. Going to be very interesting to see how this plays out reporter yeah, certainly ive been waiting for it for years. Down but not out is how ceo brian chess canki put it. Bookings plunged and the company laid off 1 4 of the work force while it once had enough cash to consider a direct listing, airbnb had to raise more capital at an 18 billion valuation. That was far lower than the last round. It wasnt for long though. In may revenue actually began to rebound. By june and july, u. S. Bookings returned to prepandemic levels including that same staff email he said airbnb was back and moving forward with the long anticipated ipo. The question is will investors agree that its ready. Certainly it has the board to take it public take a look at airbnbs list of directors. It reads as a whos who of Corporate America with the titans of business like former amex ceo, angela aaron, former head of retail at apple and jeff doran who brought open table public perhaps just as crucial, investors will want to know just how badly the pandemic has been and whether post covid travel will favor that home sharing model. Deidre, as i think about it, just how we had been waiting for the all of the sharing pioneers, ipo, how weve watched what happened with uber, theyve had a little bit of trouble. Uber and lyft havent been so well received do you think this puts additional pressure on airbnb . Reporter well, they are facing additional pressure as soon as midnight tonight that is when ride share in california could be shut down entirely now this isnt a move that we have seen before but that california ruling from a few weeks ago that relates to the status of driver, their classification of that, could take effect tonight. The state forcing uber and lyft to treat drivers as employees. They say that they cant and shouldnt have to do it so the clock is ticking to midnight tonight. Both companies have appealed if there is no further stay, this issue really goes to the public as of tomorrow, guys, there could be no ride sharing at all in california. Will the public decide that uber and lyft didnt step up and make their drivers employees . Will they decide that lawmakers are doing the wrong thing here by forcing them to make their independent contractors drivers with all of the benefits and be protections that go along with that they will be able to vote on that in november and it will be sponsored as a Ballot Initiative back to you. Thanks, d good to see you. Apple became the First Company to ever cross the 2 trillion valuation mark. Joining us for a look at how we got there and where the stock could go from lear, chris kaso, managing director at raymond james. Got to say it, chris, when it was 6, 700 people said, look, its at 6, 700 billion people constantly pointed out that it was at nine times earnings and had all of this cash and deserved to be much, much higher the trillion dollar level seemed to represent overhead resistance once it got through there, here we are at 2 trillion is it expensive now . Well, it certainly moved a l lot. I remember being on the show having to justify the 2 trillion number. Its a good problem to have. The reason why the stock moved, the reason we upgraded it is the anticipation over the 5g cycle it hasnt been announced but its coming soon obviously whats happened with the market Interest Rates which has rerated equities in general. For apple itself, i think the reason why it had gotten that discounted valuation in the past is people remember what happened motorola, nokia, the handset space being in the lead is not forever. I think people are perceiving apple differently. The handset is the biggest driver its the ecosystem that keeps you in and keeps apple from being nokia and i think the rating on the stock creates that. I remember cisco, digital equipment, all of them i even remember microsoft. Microsoft somehow came back. Apple seems kind of different from all of them, chris. Thats a very scary thing to say obviously. But when you think of the power of an iphone and what it can do compared to when we had no phones, then we had flip phones, now youre carrying around a spare unit ten times more powerful than what you had in your pocket before they didnt have a car they havent done tvs to any extent and the stock is at 2 trillion they havent had to do anything but be great at what they do tim cook, its amazing, isnt it yeah, absolutely. You remember back when steve jobs handed over the reins, one of the things he said to tim, you know, be your own person be your own manager. I think hes actually really been the right person for apple as its grown to be a Large Company because that focus in operations and logistics yeah. Well see what happens with the new iphone well see how good it is. Weve got to go, chris. What if they really picked the right guy, where would it be tough to be better than where it is anyway, he was the right guy thanks, chris. We appreciate your time. Thank you. Great thank you. Thanks, joe. When we come back, senator bill casady wi cassidy will join us to talk stimulus squawk box will be right back. At massmutual, we know that traditions matter more if theyre celebrated with the ones you love. Thats why were proud to partner with the kentucky derby. What do markets want to see now. Calls growing louder if lawmakers left Small Businesses behind, what they need to survive as the world waits on a Coronavirus Vaccine apple briefly worth 2 trillion or was it just for a moment. Either way, the first u. S. Company to hit the milestone it comes two years after they cross the 1 trillion threshold. The final hour of squawk box begins right now. They have to become a Smaller Airline starting october 1st cities like greenville, north carolina, ross well, new mexico, excuse me. These will being part of the cuts that america is putting in place and when you take a look at shares of the major airlines, were talking about united, american, delta, southwest, theyre all under a little bit of a market period today the key question is whether congress guarantees jobs for the airlines if not, theyll have 75,000 if not more starting october 1st. Bottom line, the airline needs to lock in the schedules starting october 7th were droppings service to dubuque, lake charles, those are the types of cities were talking about. You know, you might not need a plane to get to roswell, new mexico think about it boeing just landed its first new order for the 737 max this year. What about that . Is that a sign were close to seeing the end of more cancellations now, phil, do you think . I dont know if you call it a bottom, joe. What you saw yesterday with enter air, Small Airline out of poland, yeah, were going to buy two 737 maxes. The important thing is this is the first firm order of the year for boeing theyve had between cancellations and order adjustments more than 800 of these max orders they essentially have been taken off the books. It depends how the Airline Recovery goes. Things start to improve dramatically over the next 9 months, 12 months, you could cierre lines planning on taking delivery of the max stick with their order. If were at the same levels right now in terms of passenger traffic a year from now, a year and a half from now, then you will continue to see cancellations. You know the guys over at, where is it, subaru. Have you talked to them . Did you see the name of that car, the grovel. No, not the grovel. No, its backwards. The levorg. It stands for legacy damn i got rid of the person who sent it to me legacy something and then they took two letters out of the last word phil, the levorg can you talk to them i love when the Auto Companies come up with these names, you know, and the funny thing is, joe, you and i both know they paid some kind of Consulting Firm several million to come up with this take a look at the name of psa peugot look at what the Holding Company name is, Something Like satellis or stirelis what does it mean . I thought youd know. They forgot that backwards its grovel legacy, le, revolution, the vo and touring, the r and g in touring. This is such a stretch im embarrassed for them you have to get toyota to drop the trd. Toyota racing development. Becky sees turd. Ill pass that along the next time i talk to them. Do you remember the other ones there was something i think maybe it was there was a car that was made in turkey or something, i dont remember, it was made in one of those countries, yugoslavia maybe and it had a horrible name that translated to something in another language it was bad i dont remember the grovel the grovel anyway, becky. See yeah, phil. See yeah, lihp. Those American Airline service cuts we just heard about, they reflect the still weakened state of business and u. S. Economy one roll back will come in lake charles, louisiana our next guest represents that state in congress. He is joining us to talk about that and additional stimulus measures that congress is considering. Joining us is louisiana senator bill cassidy hes a member of the joint finance companies. Its great to see you today. Thank you for being here i know this is breaking news but your thoughts on smaller and midsized markets getting cut out after the funding that some of these airlines have received and are still looking for . Well, obviously, their air traffic is low we have a Public Health crisis which is just turning into a ball of wax. The education and the business cycle, if you will weve got to take care of that Public Health crisis and Everything Else opens up lake charles can have a booming economy. 20 billion in announced Construction Projects being announced there. If folks are worried about travel, theyre not going to travel yeah. Your state is one of the ones thats been hit hard by covid. I think every state has. I think moodys has said louisiana is facing a 46 decline in revenue for fiscal 2020 to fiscal 2021. How do you handle that what needs to happen yeah. So if you look across the nation, moodys said there would be a 500 billion short fall nationwide between state and local government this year plus next fiscal year and although many states over the trump years tanked up their Rainy Day Funds, theyve exhausted those now. One thing i proposed, its a bipartisan bicameral piece of legislation is that 500 billion federal help to state and local government not free money youve got to show that youve actually been hurt in this process, but most have been, but if we do that, we allow them to continue to employ those essential workers, police officers, firefighters, sanitation workers, airport people, for example, we allow those to continue to be employed as we kind of try and get the economy through this rough patch. You mentioned that what youre talking about is bipartisan and bicameral and i know youve teemed up. Those are the types of things that used to pass. Nothing much seems to be passing bipartisan these days. Theres talk of a skinny bill that the republicans, your party is backing at this point i dont believe state and local governments are part of that plan how hopeful are you . How likely do you think it is that the state and local funds actually get passed . I think at some point that it does get passed. I just say that because we dont want republicans dont want to defund the police if a local government is dependent upon sales tax revenue, tourism or perhaps commodity pricing, my state gets a certain amount of royalty from oil and gas, youre getting slammed. Now think of other states that will be getting slammed as well. So i do think this is something they will gradually grow upon. On the other hand, its time to kind of put politics as usual to the side and focus upon that which is essential bipartisan and achievable i have several bills which are bipartisan and achievable. State and local aid. More money for testing a better strategy for testing. I go on and refocus on that. Putting politics aside, im hopeful we can pass something. We need to pass something. How likely do you think it is that politics as usual gets put aside 75 days before an election if i speak to a governor, if i speak to a secretary of health of the state im saying call your senator, call your representatives. We need to get something passed. Its going to take a little bit of an organic sort of kind of swellup to make this different if youre looking at the heroes act, whatever you think of it, lots of good things in there, a lot of it did not pertain to covid. A lot hadnt been hurt in Committee Hearings on the republican side, there needs to be a plus side. Frankly, the administration has signaled their willingness to plus up some things. If we focus on that which is essential and that which is bipartisan and that which pertains to covid, i actually think we can pass something. Its just the extraneous stuff which drags us down. You know, i would agree with you in theory on that, but we have heard from so Many Republican senators who think that its a slush fund that will be going to states and municipalities that didnt save up for a Rainy Day Fund or that are looking for this money as a way to pay off the issues they already have with pension problems what do you say to those colleagues when bob menendez and i drafted our legislation, we listened carefully to that we specifically prohibit the money to be able to be used for pension funds. Cant be used for that 1 3 of the money goes directly to state excuse me, to local, county, parish government. Bypassing the governor completely and because were concerned about some governors playing politics, the governor cannot cannot rescind money allocated it has to be in addition to. The money is allocated based on your Financial Impact from the covid crisis, the Health Impact and then the population of the state. So theres a formula that locks it up. And you have to show your books. If it turns out year over year youve made money, you dont get money. But if year over year youve lost money, you do weve heard those and weve incorporated those concerns. I think if the folks look at it critically theyll say this is the way we should address this problem. It sounds like its a very well thought through plan. Senator, thank you for your time and good luck with it. Thank you coming up, from macro to micro in the stimulus debate has Government Support for Small Businesses actually worked up has it worked up to this point were going to talk to two people who know a thing or two about entrepreneurship check out the shares of intel. Theyre saying the shares are creating well below our intrinsic valuation. He knows for sure whether thats true, i hope anyway, shares are still down ea this yr. Stay tuned youre watching squawk box. You say that customers make their own rules. Lets talk data. 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. Welcome back, everybody. Three big tech stories alibaba beating for the fiscal first order. It was helped by a pandemic Online Shopping boost. Also were keeping our eyes on shares of apple. The iphone Makers Market value briefly topping 2 trillion yesterday. Its the First Publicly Traded Company in the United States to hit that milestone it comes as apple stock has risen close to 60 this year apple went public in december of 1980 and it took about 38 years for the company to reach a market cap of 1 trillion. The journey from 1 trillion to 2 trillion, well, that took just two years. Highly anticipated Quarterly Results out from chip maker nvidia it Beat Estimates for profit and revenue. The outlook is strong. Some investors were disappointed with the Second Quarter performance of nvidias data center that business is one theyve been watching, too the stock down by. 8 of a percent. Joe . Historic night three of the Democratic National convention senator Kamala Harris officially accepting the Vice President ial nomination the first black woman in either party to do so harris laid out the case for joe biden presidency and the case against President Trump. Right now we have a president who turns our tragedies into political weapons. Joe will be a president who turns our challenges into purpose. Joe will bring us togetherto build an economy that doesnt leave anyone behind. Where a good paying job is the job, not the ceiling anyone, the first time it happens, oh, my god. One thing not explicitly mentioned, the role government should play in reviving Small Businesses here to talk about the response so far and what more might be needed, were joined by John Hope Bryant and kevin oleary, chairman at oshares ets and cohost of shark tank. Now i think Kamala Harris is talking to me subliminally i have some serious issues i think you two guys might not be exactly on the same page for what we need to do for Small Businesses let me describe kevin. He thinks all of these Companies Might be Zombie Companies. Anything that shouldnt survive on its own you ought to just let fall by the way side, small or large. Capitalism works, thats the way we should do it. John, i think and i know you and love you, i think Small Businesses and what can happen in minority communities, what it can do for income inequality, if we somehow cede Small Business is the way out of this in the future that may be the single biggest thing we can do is give people a hand up with Small Business. How do you two reconcile john, why dont you start . Well, i mean, i think the dichotomy today is you have apple that went from 1 trillion to 2trillion in two years, Largest Company that on that kind of a tear in history, i believe. At the same time youve got the largest drop in active Business Owners in history. 22 of all businesses in america went away since february largest rutt ever. 3. 3 million Small Businesses gone this is your active army, joe. This is your military. Were at war our army thats employing half of america, Small Businesses, just took a body blow, a hit if we just sort of said, well, you know, if youre not apple, just go away, i wouldnt exist because i was helped as a young entrepreneur in california by a banker, a white banker, and a lot of black entrepreneurs, too, to come up and give i was given support and help it wasnt a handout. I didnt deserve it. You know, kevins been helped. He didnt deserve it his companies have been helped we talked about that in the last session. He got stimulus. They didnt deserve it but and during and the way we all came back after world war ii was not because we were all great and because the market was great, it was because the government backed the Marshall Plan and the government stimulated even through the war spending to the private sector, as you know, joe that was what brought the economy back since the Great Depression it wasnt just it wasnt the markets from the Great Depression, it was the world war ii and it was Government Spending, smart Government Spending in the right places that stimulated the economy. By the way, it created the gi bill and individual enterprise. Kevin, youre an enigma, too, because youre this really hard core capitalist. I think youre a compassionate guy. I think you think thats the way to prosperity is through capitalism you have a bunch of Small Businesses that you own. Why dont you want some why dont you realize that theyre necessary, the pandemic was out of their control and maybe they need some help because i now have the knowledge, joe and john, of what occurred from the first ppp stimulus and all the months that have gone by, almost half a year now, and ive come to the realization, i think we should all understand this, that our economy is going through a rapid change, a digitization, the change of consumer behavior, a change of how people buy and purchase that has to be reflected in Small Business as well i am not against supporting the employees and Small Businesses that are going to be dislocated, but hear me on this. I think, and well know in the years ahead, that 25 of the capital being spent on these ppp programs is 100 wasted. Its going to two kinds of businesses that shouldnt be funded one are the walking dead because consumer purchase behavior has changed, the movie theaters, the restaurants that are never going to open again, all kinds of other businesses that have just gone through a change. They are no longer favored by consumers and they never will be this is the same as going back and looking what happened in netflix. It was reborn when people stopped buying video cassettes or renting them and it went online get over it. Thats happening i do not want to fund zombie businesses number one. Number two, i would like to support the employees that are being dislocated during this transitional period with 450. I do not want another ppp program. That is completely unnecessary and inefficient. Id like to keep some powder dry for infrastructure regardless who ends up as president so we can get Better Internet to the Rural Regions of america and all people because if anything was ever needed now, its really good Online Services because the economy is goings that way i really, really, really want to stop wasting money 25 of the program is too much for my friend john, i say, if you would like to join hands with me, we can sing coombaya to all of the businesses that are going to die anyway and get on my bulldozer and help me bulldoze down some strip mall we dont need so we can build an infrastructure center, data center, more Residential Services let the private sector do that, but lets scrape the betina off the economy. Stop letting the governor pick winners and losers theyre really bad at it im telling you, im on the ground living it 80 of my portfolio is going to make it, 20 is going to fail. Im over it. Ive dealt with it i dont want anymore money going to these businesses because theyve figured it out thats where im at. Look, am i a capitalist . 100 unabashed. Let our market do its thing. Theres so much cash around, joe and john let it be deployed by the private sector now so, joe, let me deal with this goahead. Go ahead, john. I agree with half of what he said and if it was a regular market environment, i probably would agree with 80 of what he said the last thing he said makes no sense. Theres a ton of money washing around and let the market do its thing. Hear me very clearly i think kevins brilliant. He would be out of business today, not his business, him if not for the government because it was a fed window that saved us all the Federal Reserve said everybody be cool. Yall chill. Whatevers going on, i got your back this crisis is not your fault. You didnt bring it upon you this wasnt because of malfeasance, fraud, or the ineptitude of subprime mortgages, it was a Natural Disaster the fed said dont worry about it ive got you banks didnt panic, wall street didnt panic market prices wealth has gone up in the investor economy. Weve all done better. While main street has taken it in the shorts. To say you dont need government is to say you dont need your parents. Its like saying that women dont count. Last time i checked without women there would be a lot less men. So were just having a false argument hey, john, we dont i wish we had more time always goes so quickly do both do you guys disagree on which administration has a better plan for Small Businesses john, do you think the Biden Harris Administration will be better . Kevin, do you agree with that or do you think the Trump Administration will be better . Kevin, you start and then well get to john. I havent i havent heard a plan i havent heard a plan yet from biden. I watched like everybody else did and i think its very difficult for either party to plan anything thats going to get attraction on Television Ratings are down 25 its brutal. I know its popular too bash trump and we watched that last night but im waiting for policy i really am. I think hopefully we might get some tonight i dont think biden is going to hurt the markets if he gets elected. His hands are tied all of these wonderful ideas of this, none of that is going to be implemented nor are Corporate Tax hikes. He has to keep things employed. We have a claims data coming. John, can you answer real quickly . You can stay, you dont need to take a side if you dont want to do you want to answer quickly on which would be better . Look, as i think you know, joe, my ideal politician has a republican head and democratic heart. I like that in six months, nonpartisan comment, i was firinspired by president obamas dignity. Where we can deliver confidence to stability wins. All right ten seconds i got, john, to hit this claims number thats one of the things we always have to worry about thank you both kevin, mr. Wonderful John Hope Bryant, thank you. Becky. N your life. We are six locations, about to be seven locations and 250 team members. Covid changed a lot of things. God willing, were gonna come out on the other side stronger as a company. But, it is not for the faint of heart. Its been a hell of a year. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Welcome back to squawk box. Breaking news. Of course its initial and continuing claims but also our august read on philly fed. Expecting the number in the vicinity of 20 17. 2 a slight disappointment. That follows 24. 2. On continuing claims and initial claims, initial claims moved higher and higher in this instance is not good back over 1. 1 million. To be exact, its 1. 106 million. So 1,106,000 and this follows 963,000. In case youre wondering, prior to covid outbreak, the high in the series was 695,000 we havent been anywhere near there yet. On continuing claims, 14. 844 million. 14,844,000 thats a sizeable drop from our last look, which was slightly revised and now stands at 15,480,000 and we see a subtle revision to initial last week at 963,000 moves to 971,000 so to summarize, a slight miss on fed on philly fed although its a positive number on initial claims, back over 1. 1 million. Thats a step back and of course just under 15 million on continuing claims is progress. How has the market reacted well, at least on the treasury side rates are moving down any type of anticipation that started last week with higher rates of course seems to be stymied a bit. On the preopening equities, we have to pay close attention to divergence between hot spots and effects on economies in this instance maybe in favor of the u. S joe, back to you that was awesome, rick. When it rains it pours a lot of highers in there. Steve liesman joins us now with more hi, steve. Good morning, joe im trying to look at where this happened you know, this is a disappointment, and i went to look at the not seasonally adjusted numbers which by the way they have been lower and they showed a better trend there is seasonals have expected more layoffs than have actually been occurring in part when the teachers were laid off, whether or not the auto factories shut down, that kind of stuff you did the not seasonally adjusted number is 891,000 that was also an increase from the prior week just looking at where it happened, a big number in new jersey, a big number in new york these are two places that have done well as far as covid goes texas also a big number there. Washington in prior weeks weve seen a large number of states with decreases and now it looks like a large number of states with increases. I dont know if theres any particular quirk in the week that would lead to it, but we had been expecting some fallout from the slowdown in the economy or slowdown in the gains the economy was making before it hit the skid woith the resurgence o the virus. Im not going to make a whole thing of the economy is getting worse because some of the High Frequency data weve seen and ill report that when we get it altogether has improved. This is definitely a draw back in that regard and some of the other data thats out there. The philly fed coming in a little lower could just be august doldrum stuff. Well let it sit not make too much of a conclusion. Steve, why dont you stay with us for this conversation, too. Well talk a little bit more about the latest claims data and the economy as a whole joining us is travon logan distinguished professor of economics at Ohio State University professor, thank you for being here thank you for having me first up, lets just talk about these initial jobless claims it does look like a worst number than anticipated for the new claims coming in those continuing claims coming down a little bit. Thats some progress steve said he wouldnt read too much into one number how about you . I wouldnt, but i think we really have to put this in perspective that none of these numbers are good anything approaching or close to 1 million new claims in any individual week is unprecedented for our economy and to see it persistently now over several months is a bit dispiriting for where our economy is going i think what id like to see is some sort of trajectory in these unemployment claims that would tell us something about recovery or the situation is getting worse. It seems as if were treading water around 1 million a week. It doesnt seem to have any sort of direction for the past several weeks of claims. What are you watching aside from the jobless claims . Obviously you need just a moment, steve. Obviously you need to look at a lot of different places. I think the things that im tracking, because theyre important for the macro economy, are consumer spending. Consumption. Number of consumers who are in well call it debt distress. In other words, theyre not sure theyre going to be able to make a rent payment, auto loan payment, people going into default. Those will be things to really watch. We still have a consumptionbased economy. We want to make sure that that consumption base continues, that households in general, even if theyre experiencing unemployment, are able to continue to consume and meet their basic needs. Thatsprobably the first thing that youre checking for financial distress and also for just the health of the economy overall. Hey, steve, sorry its hard to do this with the delay without stepping on each other. What was your point. Sorry about that. The professor made me think of a couple reasons we could be seeing again, early days, you dont want to draw too much from it, but you did have the rolloff of the ppp program. Thats something that kept people employed. Wonder if youre seeing some impact from that the second thing, again, the professor reminded me you had the end of that stimulus i think were now in the third week of that extra 600 federal benefit rolling off or not being present. And i wonder if theres an impact on that, on the businesses that survived in terms of laying off workers that were benefitting from the extra stimulus that was out there from the federal government i want to throw those two thoughts out there about the impact of the lack of stimulus thats an excellent point professor, we have been watching to see what happens at the end of this. The retailers havent seen it. Do you think the two stimulus plans coming to an end are starting to have an impact eventually theyre going to have a bite because of the size of the stimulus programs if you start looking and projecting ahead, were towards the second half of august. The airlines have announced theyre likely to have massive layoffs come october and that will also have an impact when we think of some of these programs, either industry specific or the ones broader like the ppp, eventually theyre going to have to show up into consumption because these households dont have other resources. We know disproportionately the households experiencing unemployment tend to have less of a cushion and theyre likely running out now that were three weeks behind even President Trumps revised stimulus and unemployment extension probably wont roll out for several weeks and will only have a few weeks of support. We cant bank on that in terms of having a stimulative effectpt steve, we had senator bill cassidy from louisiana on just in this last half hour he talked about how he would like to see states and local municipalities get some of this funding. As i said, hes a republican that goes against what a lot in his party have thought at this point. He is putting forth some Bipartisan Legislation that would try and extend up to 500 billion to those states and local governments. How important is that just in terms of what were looking at for the jobless picture if that money doesnt go through yeah. I dont know what the right number is. You know, the right number is some function of whats needed and the politics that provide whats needed, but what i do know is that if you look at what happened after the 20082009 recession, states that have almost all states have balance budget amendments. They are going to be laying off workers. They are going to be reducing their spending that will happen its a necessary adjustment process. The question is, when do you want that to happen . This will happen in all states, red states and blue states some states more than others because they have bigger governments and bigger spending. So you can have whatever economy you want on the back side of this you can have one that continues the downturn because states are laying off workers even while the private sector adjusts or you can cushion that blow and give some money to the states so you do not have a severe cliff when it comes to state and local Government Spending which, by the way, has already become a drag on gdp. Professor, youre at ohio state and i believe classes start there, is it next week next week, yes. This is a hybrid mix, i believe, that ohio states going ahead with how is that working . What are you anticipating . We are optimistic we have an aggressive Testing Program that our president elect johnson has rolled out for students, and certainly were also watching what is happening at other universities that have recently been in the news and their opening experiences are illuminative for us. There is some uncertainty opening a campus, particularly a large campus like ohio state in a large environment. To something that was mentioned by steve, we need Public Employment and public employees, particularly for pandemic assistance in the Public Health dimension. That is one of the last places that we can afford to have significant cuts right now with the pandemic and unfortunately some states will be making cuts in that area that would have drastic effects on reopening campuses, having schools back in session, et cetera, because we do need a robust Public Health response, in particular testing, in order for any of those activities to resume near what they were in march. Professor, thank you for your time steve, good to see you good to see you, becky. When we come back, what big economic changes would joe biden push for if he wins in november . Virginia senator mark warner will join us as biden prepares to accept the democratic nomination for president tonight. As we head to a break, check out the price of copper. Yesterday the commodity hit its highest level in more than two years. This morning its down by about 1. 3 stay tuned, youre watching quk xig he cnbc. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Welcome back news from wynn this morning. The Company Announcing it is taking the performancebased stock intended for matt maddox and redistributing it among 240 top performers it averages out to 800 shares per person which at current market value works out to about 64,000. The target employees have been working on creating and implementing the companys coronavirus policy and the stock grant distribution comes as wynn tries to keep up with come up with ways to keep these valuable workers and thats a creative way of rewarding these people. Its good to see, oe thank you good to see you good to see that not you. Good to see it no, good to see it, that hes doing this no, the ceo is taking his own stock grant and redistributing it to 240 top performers. That is good. I thought you were being really nice. I stepped out of the shot. I had stepped out of the shot. It is good to see you. You have a spy cam. I can live without you for two minutes. Thats good youve learned to. Its hard. Right whats mark warner going to say . I want you involved in this. Will you be involved with this with senator warner . With me . Not it. Hes coming up. No, i will. I love mark. Yeah good. All right. Coming up, what can americans expect in the next economic stimulus bill out of washington . Can they expect one at all well tell you about some potential movement on that front. Virginia senator mark warner joins us in a few minutes. Becky, i think Kamala Harris is talking to me, youre talking to me, im losing it. Check out another solid Quarterly Results. B. J. s wholesale club Beat Estimates and Comp Store Sales excluding fuel were up more than 24 , well ovabe the consensus. Stay tuned, youre watching squawk box on cnbc im pro athlete stylist Calyann Barnett and im here with nicole and miles and were out to find the top looks for day one back to school at Dicks Sporting Goods and so we want to find something thats going to grab everyones attention the variety and selection is crazy bucket hat bucket hat this would be a fire first day fit. Definitely making a statement with that. Go dicks. Whether youre going back to School Online or inperson, get the brands that make a statement. Day one starts here. We know that traditions matter more if theyre celebrated with the ones you love. Thats why were proud to partner with the kentucky derby. Coming up, virginia democrat and joe biden supporter senator mark warner will join us tonight his candidate officially accepts the nomination for president. Stay tuned youre watching squawk box on cnbc 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. Lets get to cnbc headquarters jim cramer joins us now. Im sure you were watching the initial jobless claims, continuing the initial was back above 1 million, thats concerning what do you take away from it . I think as Steve Liesman tacked about, this is the two economies, the vshaped recovery is not the vshaped recovery in the economy. These are not numbers strong are they worrisome yes, if you dont get a stimulus package and yes, if you dont get a vaccine. I dont know whats going to happen with schools, how that will affect things, either remember, theres a lot of businesses basically tied to all the schools around the country talking about ohio state, unc, notre dame, these are great businesses once again, theyre Small Businesses you may be joyous about target, and we got terrific numbers from lowes the real world is not so hot. One thing they said yesterday is backtoschool has been slow. I think he said Something Like 56 Million Students around the country and so far more than 60 are going back online, at least thats what hes heard in the early things they have and you have stuff from backpacks to School Uniforms theyre going to have to extend that season potentially to january. In history, theres a whole fluordevoted to school just the local i dont know does that stuff sell you dont have a backtoschool season this years. The may look at the fed minutes and think theyre worries, and why wouldnt they be woifrd . Were desperately in need of money for a lot of people who dont work at the salesforce. Comes and the facebook facebooks. As you said, a tale of two economies. Thank you. Absolutely. Lets get back to the debate over stimulus. There are a few glimmers of hope republicans have proposed a skinny version, and House Speaker pelosi has said that democrats are willing to cut more from their proposal to reach an agreement joining us now is senator mark warner, also a surrogate for the Joe Biden Campaign the senate needs to come back, or else were talking about september, right any body language that you sue from senator mcconnell that hes going to match what the house did and bring people back . We desperately need a plan. I think congress shouldnt have even gone on recess. I know people are watching the conventions, but i think most americans are concerned about, as jim just said theres a difference between the stock market and the real economy. I think we kind of went through ten days or so after the falling off of the unemployment benefits, as ppp is running out, as schools go through the do we reopen or not . Where we looked better than we actually were. I think theres more hardship out there. I think we desperately need to come back and get this wrong i think that mnuchin was barely willing to lean in i think mark meadows did not want an early deal so the president could go through his executive order songanddance routine, but as weve seen, nobody is seeing relief from the executive orders people are not getting unemployment businesses are not doing a payroll tax cut. No movement on eviction moratorium, so we need to go back and do our jobs i thought that the two sides were that could be reallocated. D a lot of that has not been spent out. So if there was a way to get back to a deal, i would love to get back in the room and get that deal done senator, just talking about beyond the stimulus and lets say after the election, to figure out how the Biden Administration win or whether trump is radio he elected. Either administration will face a higher debt load, obviously, and weighing to try to deal with that some think you need growth others think you need to raise risens if you combine the plans what does that do for prospects for growth of the economy to help service the debt youve got a lot of programs i know whenever we try to talk about whether its free college or much more expanded health care, or whether youre talking about any of these things, theyre expensive. None of it seems to work how is it going to work and grow the economy . First of all, as somebody who literally spent years coming on your program and being obsessed about the debt and deficit, i was the guy that put together the gang of six that fought for the socalled Simpson Bowles plan after a while, i got called a debt cassandra for many, many years, and frankly Neither Political Party has any credibility. The Business Community has no credibility at all anymore after they went for the 21 corporate rate, after they said for years they would be happy for 25 i do think one of to take on on the death for a longer term, 100 basis point interests address 200 billion in debt service i am one of the people, even as a debt hawk, believe over the short term, the next 6 to 12 months, we ought to be focused more on growth and stimulus i dont see any Movement Towards them going up, so lets get the economy humming again. The thats about the investments that biden has talked about, and it is a necessity, not a nice to have i do think the disconnect between the market, which i think is way overbought at this point and the level of Economic Uncertainty from the vast majority of americans is so greats if we dont make that infrastructure investment, if we dont figure out a way to bring down some of the college costs, that youre not going to see an across the board robust recovery senator, we only have about 30 seconds left, but the people who called you debt cassandra, did they ever study mythology . I want to be wrong on this one. As we saw debttogdp levels going up, and everybody predicted doom and gloom, weve blown through those, so i wouldnt mind being wrong for at least a year or so good to see you again becky, i love that, cassandra. People called cassandra realizing she was right about every prediction nobody has calling me right the last few years. Were going to get yelled at again, again thank you. Make sure you join us tomorrow squawk on the street is next, and were late good morning david faber has the morning out. Dows down three straight, longest streak since june. Futures are red while jobless claims are back above 1 million. The road map begins with concerns about the