Transcripts For CNBC Squawk On The Street 20240712

U. S. Cases do continue to decline. The fda gives the go ahead for plasma use in hospitalized patients and a potential vaccine fast track and tech on a tear. Shares of apple up nearly 75 this year ahead of its four for one stock split today. Jim, we have all that to handle and jackson hole this week, the rnc and couple tropical storms in and not a sleepy august it should be a sleepy august, and its not august supposed to be a down month and its not people say, wait a second. 70 of the market didnt do well last week. I always find those kind of things because 70 of the market does well this week. You dont have a bunch of anything to hang your hat on when you look at a big apple price target increase basically to where the stock is you realize, wait a second shes the first. But will everyone have to follow every price target is below where the stock is a lot of people feel enthusiasm for the stock split. Of course, that is part of it. I know stocks mean nothing but they excite people she thinks its a consumer package good tech company. If thats the case, why shouldnt it sell 28 times earnings better growth than Procter Gamble i like the piece good to see david here david, animal spirits all last week in a few stocks and you come back. Do you just say, wait a second this has now gotten absurd the future of the market that we have been discussing for many months at this point is the entrance of what we call the new robinhood trader for lack of a better term. Speculative nature of a participation broadening which is a good thing from Retail Investors. I bring it up, jim, because on friday a lot of these robinhood traders buying sameday options. I know that happens sometimes. A lot cheaper to buy an option for whatever it may have been to buy a 500 plus stock or lets call it 490 or whatever it may have been on that volume is enormous, jim, in those options. And it just makes you wonder, i mean, why was apple up 5. 5 , 6 on friday . There were no fundamental reasons behind that. Getting closer to the split no fundamental reasons this new argument coming about that if biden wins as president , then china will no longer be our sworn enemy and then another one which just says if it explodes in china, it wont explode in china. Katie picks up on that i am saying a level of enthusiasm for a couple stocks that is hard to maintain, but weve never had anything like robinhood even during the etrade explosion in the late 90s very underplayed theyre silent and, carl, robin hood is something were not used to 13 million strong of young people who are using whatever money they have to speculate ive never seen it before. Most of the people who do nonrobinhood are index players so, it is something that none of us has ever seen and lets not deny it. Lets not deny that they have no clout, which is what i keep hearing. Theyre just wrong well, theres also, jim, the more fundamental story of how covid changed our alliance on tech again, like throwing a huge rock into a pond. Seeing ripple effects all sorts of Different Directions and it makes it hard for you and all of us to separate legitimate enthusiasm from froth, right apple has never been part of the enterprise but if you take it home, you are going to use apple why . Theres always been an undercurrent of rebellion against hp and dell. I have an hp, i happen to like it very much touch screen and my kid said, dad, you got to upgrade. What is that computer . 1999, 2000 it is about five days old. A tremendous belief that apple is a huge winner and also, of course, the app store which katie praises has been terrific. Yes, one of the core winners and i think that there are many, many losers and a few winners and the money is going to them david, what is wrong with that you want to go buy american sim or marriott. Ill give you marriott so when you take your kid to college oh, thats right that doesnt happen any more no, you dont stay. They go off and get tested and hopefully theyre not coming back for a little while. For many colleges, that has not been the case. For apple, i continue to worry about the risk of china. We talk about it all the time the escalating tensions between the two countries. But take Something Like the app store where theyre getting push back in the United States. A lot of chinese app makers that are also paying the 30 toll to a u. S. Company you do wonder, jim, at what point the Chinese Government may try to crack down on that. Against that, youre getting this new theme that huawei is hobbled by what President Trump has done making it so apple is doing better in china than it should now, that is something that thats a new, but aggressive someone who says own apple, dont trade it indicated by the stock prices, obviously. I always have to worry about china because the communist party is very , shut this one down or nike and yet nike and apple are two of the greatest performers in part because this shorten cover by people in the Hedge Fund Community who have been overrun by robinhood. Robinhood is take from the rich hedge funds and redistribute to the poor carl, an app name to call it robinhood because certainly not lennon more robinhood yep i dont think the name was a coincidence by any means meantime, you guys mentioned tiktok a company did give a statement to cnn saying theyre going to sue. We have the journal today talking about Mark Zuckerberg reportedly warning the administration about tiktok and then Peter Novarro and basically zero influence on Decision Making in the white house. Heres what he said. What the president is doing is not really about tiktok its about tiktok and we chat and all the Chinese Software companies that are able to collect data on american citizens and ship it over to chinese servers and share it with the communist party and Peoples Liberation army im always amazed how some of these stories pop up, but that one, for me, has zero credibility because i know he had nothing to do with anything that happened here in the white house. Jim, he did say it was encouraging to have oracle step in yes, i do think that larryla ellison very close to the president and kushner. Unfortunate story that there has been consistent, consistent position taking by zuckerberg that this company, tiktok, has to be separated from its connection to bytedance in china and if microsoft runs the operations, its good. Those close to him asked about other companies and hes concerned that they dont have the code capabilities. I think having the cocapabilities really only a handful of companies can do it one is oracle. Oracle is business to business what would oracle do with this i disagree with this oracle is sick and tired of being business to business oracle has been saying over and over again, just try us. We have the best we know what were doing david, you know oracle is feisty and they would like this they are. Listen, i was chasing prior to my week off last week and i want to get back to it because i think its going to be important to see if we can update people in terms of the bytedance negotiations to sell tiktok. Microsoft by everything i had heard, including the possibility of a company such as oracle entering the fray was still in the lead simply had more time on due diligence. And, again, you know, i made this point many times, guys, but it is worth emphasizing. Oracle is one of those companies. One of the very few in any position to take the code over to meet that year timeline that is out there in terms of their ability to actually move it to the u. S. Move it to all their engineers and separate it completely from byte dance from all those engineers that they have in china. 10,000 or so so many of them. 15 million lines remember, this is the key to tiktoks success getting back to the product itself is its ability to reiterate itself, change quickly and get kids typically, but a lot of people so focused on it because it takes all sorts of different data, including data that is not necessarily front and center and constantly iterates the app for you to give you what you potentially want or it thinks. It will be key for either one of these companies to pour over that they get one year to sort of keep making the changes that the chinese are going to be making and then it has to be all theirs and then inoperability around the world because the isisis is global product and i understand that is less of a challenge than that simple challenge. We have to update everybody. If youre bytedance, great news. You have to have another potential bidder in there to get anywhere near what you think is the actual value for the asset we broke this story last week other pipal attribute it to New York Times. So, im going to do another attempt. There is a 20 80 gain being played right now oracle puts up 20 and a series of private Equity Companies that were all familiar put up 80 and that is the deal that is not just, but real david, what happened when that times breaks that story were all going to be talking about that i love that. I love that because im jimmy chill and i share. Always drove me insane when i broke a story it didnt happen as often back in the day. But, yeah, im just reading through some of the notes that i have taken here in terms of migrating the code base during a period of time when you need to and Everything Else that is of importance i heard there were 2. 5, jim. Thats the way it was said to me maybe thats half is twitter but i can assume based again on what youre saying and what ive been hearing, as well. Microsoft, oracle, perhaps twitter there no others showed up then the question also becomes one of timing, carl. We have different executive orders one issued august 6th, which would have indicated 45 days after the order for a sale and that would get you to basically september 20th although microsoft said they were looking at september 15th. But then you had the august 14th executive order, the one that also dealt with chat that said it was a 90day deadline that would take you to november 12th you may have to little longer here than previously had been the case in terms of, in terms of the timeline for them to actually figure this thing out and try to find a buyer for that david, you know white house favors it. In part, remember, i think its convinced them i also think its important to point out as the times will that its a republican bid, so to speak so, i want to give the times that heads up so they can qualify it as that if that is the case, though, im not sure that has more hair on it that bid. I want a pure bid that is all cash and one buyer and no private equity firms involved and no other relationships i can vet them theyve already been vetted. When you add more potential buyers in a group, it increases the level of capacity. The president saying he wants do we have any feel what he wants there . Any negotiations that have taken place since he mentioned that that one time never included any conversations whatsoever of any compensation to the u. S. And treasury carl, i can tell you without a doubt that the people who are doing that 20 80 bid that i mentioned. They would be thrilled with microsoft paying more and microsoft, by the way, i dont know whether Peter Navarro focused on it, as much leverage over microsoft, but if you can separate out everything from bytedance and get away from their algorithm, then so what . If theyre somehow rolling in, jim. A different story. Its, obviously, General Atlantic and if they are able to somehow take their interest out of bytedance and roll it into a new tiktok, u. S. , new zealand, australia. It gets complicated. But its a big story. Were following it, again meanwhile, facebook is trying to do their thing as jeffrey goes to 310 and citi goes to 315 on facebook. Estee lauder and deere today and new case on tesla. And nominee biden on taxes, when we come back you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. I will raise taxes for anybody making over 400,000 let me tell you why i am going to do it time they start paying a fair share of the economic responsibility we have the very wealthy should have a fair share corporations should pay a fair share. The fact is corporations making close to a trillion dollars pay no tax at all. Im not punishing anybody. This is about everybody paying their fair share no new taxes 400,000 no need for any is it smart to tax businesses while youre trying to recover its smart to tax businesses and, in fact, are making excessive amounts of money paying no taxes. Where is the cutoff will you be raising taxes on Small Businesses youre talking about look, you have 90 of the businesses out there are mom and pop businesses out there that can employ less than 50 people no raising taxes to them we have to provide them with the ability to reopen. We have to provide more help for them, not less help. Thats democratic president ial nominee joe biden on abc last night talking about taxes. Jim, also commenting on the degree to which he would be willing to shut down the economy, again, if his science adviser said to do so. Yeah. I think that that was a surprise because weve seen tremendous dropoff in business when weve done that. Unless we use masks and social distanci distancing i was surprised there wasnt more of an endorsement of that the candidate seems to be very promask from what i can tell. As far as the taxes, i dont think anyone expects anything different. Take Capital Gains up big and i think there are huge profits being made by corporations but the idea was that they would be hiring and its funny the Big Companies that make huge profits are hiring thats part of the conundrum of this Community Jobs being created by amazon david, we know the amazon jobs may not be the single best jobs in the world if a company like amwithdraazon making a lot of money. They always manage to minimize their tax bill as youd expect them potentially to do. And they are in the crosshairs as a result. Apple ireland moving intellectual property there. They always have by far the smartest tax attorneys and the ability to figure out ways completely legally, of course, to minimize what they pay. Amazon has been very good at that for a long period of time no doubt the number of jobs theyre adding to your point, jim, is incredible we remarked on that since the last quarter ive never seen a number like that they are warehouse jobs and continuing to expand in terms of their corporate level. In new york city, imagine that, carl actually adding some jobs in new york city. Not nearly the 25,000 conceivably that would come with an actual headquarter theres. But new york will take what it can get, right i was just making a list, david, of amazon adding the 2,000 corporate jobs in new york facebook leasing the additional 700,000 square feet. Tiffany today is going to be renovating its fifth Avenue Flagship and, jim, im sure you read the Jerry Seinfeld oped in New York Times basically tearing apart and any argument that new york is somehow dead. Help me start the street and devastating piece on how with zoom it cant come back. The epidemic of the early 1800s. But jerry, jerrys rebuttal is, i think, true. It always comes back, why, because where people want to congregate and be. Vaccine, i know its overdone, but even an antibody well be able to solve this situation and have bars and restaurants. Thats the last frontier that will happen eventually. Not if it goes airborne this fall all right you never, jerry never mentioned. No, never said the name well talk abouts astrazeneca ad dont go away on this monday rsw rsw so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Pampers the 1 pediatrician recommended brand, helps keep baby skin dry healthy so every touch is as comforting as the first pampers. The 1 pediatrician recommended brand futures are green amid optimism on covid treatments apple set to open at 512 and tesla at 2523 as we keep our eyes on those two names. Back in a minute this selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. Right now, switch to tmobile and get four lines of unlimited for just 25 bucks a line. With access to americas largest 5g included. Thats right. Unlimited and nationwide 5g for the whole family for just 25 bucks a line. Only at tmobile. Lets get to it. Mad dash and i dont have to throw it far, just about 30 feet or so. I know you have a good arm, david. Your boy has a better one. Is there a day we dont talk about tesla . When you get together with people who are seasoned traders theyre saying, all right. Come on, it was 200 and now 2,000. You have to get rid of the stock. Dont you have to sell it . This morning lays out the case for 3,500, which is based on battery day september 22nd the Million Dollar battery which questions whether you want a new tesla if you have a battery you never have to change china. Linchpin of success. I dont know 300 billion, 400 billion i dont know, 500 billion maybe its a technology company. Maybe it should be valued more than invidia we talked about that many times, jim the market believes that if you want to say any reflection of fundamental value over time here what do you do with the stock . I know youre a believer in a broader sense you are, but, you know, 382 billion market value at the beginning of trading today. By far, i mean, not even close in terms of the largest market cap for any automaker on the planet times two at this point maybe you just strategically decide to sell some ahead of the september 22nd battery day just in case the million mile battery doesnt come out i also think that, look, i recommend the stock at 260 if youre following. You have to take 260 off the table. At the same time, this is the greatest momentum story ever told so, im sure that the people in it even hate the idea of taking out their basis and, yet, there isnt any book or study i ever read that says you shouldnt take out your basis because you want to play with the houses money. More houses money riding here than anything. Is it substantive. If you believe a 20 million car company is, indeed, worth this price. But, david, i dont know 20 million cars requires a lot of factory space and building a lot of places and that requires, lets just Say Something that is going to take a long time. Carl, when i hear that and, you know, jim saying momentum. What did you just say about momentum you said it was the greatest momentum story of all time i think it is carl, it is reminiscent of the late 90s in some ways in some of these names as we watch a lot of the green on the realtime exchange. First to be a trillion. Nothing like this one yep well, qualcomm at 1,000. Look, yeah, youre right. There are people buying carl, theyre going nuts. Theyre going nuts yeah. At the open. By the way, on tesla, theres a headline on the wire right now that ford, jim, is going to build a new michigan facility to produce the electric f150 so, were going to be hearing this running theme of the encroaching competition. Distance, though it may be look, i think ultimately one of the exciting things i heard is that there is competition i had a company and the stock is exploding today. Lin. Hydrogen hydrogen the cleanest gas, gas product. Dave, i dont know if you follow, hydrogen we have a cold based system, natural gas system when you plug in but this Hydrogen Versus ev is something that robinhood debates forever. That brings up nicola which we brought up is hydrogen based and at some point theyre bringing out going to be real competition, although when it comes to the major auto manufacturers we had all our lives whenever they seem to introduce something, market doesnt care no, rbc, i know, im seeing notes. Lets look at it this way. The ford 150 is selling out. The bronco is coming back. Theyre actually with the new ceo whom i think is just a huge amount of fun. Farley i say fun. He loves cars. The other guy loved office furniture. More cabinets he liked Office Cabinets the cabinets well, cabinet. I mean, maybe you put your, i dont know, your registration and some, i dont know, but i do think that no one cares. The reason remember all last week they were floating that story about gm spinning off the tv. I mean, give me a break. I mean, just keep pumping that one. I think what matters is that people just dont think they have what people want. And i think that unless you see amazon with its order of 100,000 ev saying, you know what, were switching over to ford what happens is people say, look, it is going to be tesla. Tesla. Bmw tried. Mercedes tried, gm tried tesla doesnt need any advertising. What does that say i mean, when i say that i like tesla, i get a lot of hate mail. I do this thing with rob moore that im doing the tesla podcast guy and doing one today and what im shocked is that people dont, 3,500 is not anywhere near what a lot of people are using. You know theyre using substantially higher, david. Higher, really, okay. Its worth carl just mentioning. The stock is up 403 this year and it is quickly approaching a 400 billion market value, which will take it right up there. I mean, only below the top five six that i can think of in terms of market value. Bigger than, just around j j which is a 400 billion company. By the way, we talked about momentum and apple also seeing that up almost another 3 ahead of that four for one stock split, carl momentum is extraordinary in this name. 2. 13 trillion market value. And the pieces as joe was talking about this morning the piece price target is here but i do think that this is the first time ive heard point blank its a Great Technology company that is Consumer Product story that has renewable theme ive been after tim cook endlessly to say, listen, cant we say its Procter Gamble on steroids it is a great product and eco system and people love it. The short hand of what shes doing. Eco system worth a considerable amount another one we should be talking about. Price target boosts for facebook here we go, again. Facebook has new products and facebook is, i think, oh, look at this thing. Reels is the next big thing. Jeffries and, once again, Mark Zuckerberg totally consistent saying he wants tiktok separated by the party i dont know why this isnt a story. He knows microsoft will be able to do it without a problem kind of a narrative that is another one of those signifying nothing shakespearean narratives the incredible rebound of the stock market colliding with now were in week four of those enhanced Unemployment Benefits being gone is that less urgent because of any of this . Goldman had a piece today saying unemployment is coming down quickly 10 at the end of the year 10 is still very high i calculated 10 million jobs at stake if you decide that youre not going to be able to open restaurants and bars and air bnb big winner here. Those 10 million jobs are not being addressed. Those people have nothing but to do but talking about, look, there was unemployment before and these people are going to come back and be something else. I think those are the people most at risk and somebody should be doing something but the democrats and republicans, obviously, are not capable of reaching any conclusion david, you missed what i thought was the beginning of the republicans no longer seemingly unified party to try to do something to help the worker and what was the outcome . Well, mnuchin came in high and dry and i thought the secretary mnuchin would be able to do a deal with nancy pelosi, Speaker Pelosi but i think theres just a lot of belief that theres no deal. They are very stuck on that huge gap in aid to state and municipalities i mean, the democrats are at 1 trillion, maybe a little over a trillion and the administration at 150 billion but the states are broke, but then the states are supposed to pony up the 100 to match the feds 300 the additional unemployment benefit, yeah. Which Municipal Bonds you have to tell people not to buy and i dont think that Speaker Pelosi is dead wrong but something in between 1 trillion and 3 trillion. I took that class. I remember that class. Would seem to be closer to 2 trillion the states and municipalities are suffering and its across the board. Not necessarily a red or blue issue. They have made it out to be one about shoring up Pension Funds but plenty of Pension Funds in republicancontrolled states as some of the big democratic states illinois and new jersey. But its interesting that we have no where, jim yet the market continues to chug ahead. Up 6 for the year on the s p and the nasdaq comp is just incredible one of its best years up 27. 5 what are you going to do . These are companies that when mark says youre not going to come back to the office until july 31st of next year and he has work. Com for how to bring back people. What does that mean . It means that anybody who doesnt have zoom is going to have to have zoom . Youre going to have to redo that office at home . One of the things helping the Home Builders is that they are putting offices in homes i mean, theyre not dummies. Theyre not like the old days where they keep making the same house over and over again. They have houses that make it so you cant stay in new york i was reading a magazine this weekend, a bunch of architects on a round table saying that people are asking for even on open plans, open floor plans places you can close off to have an office or meeting and space for the storage of dry food and space for additional freezers. Its changing the way we live. By the way, jim, you mentioned zoom they are on the tape saying they received reports of users unable to visit the website unable to start and join meetings today they are investigating that issue. Well watch zm today thats unfortunate. Look, this systemist system is t built for this a company that got a very nice push today i like fsly. A stock that is very controversial because it has such a high multiple saying it goes to 100 and you need to have somebody with a better content Delivery System the favorite of the people, the activists and theyre saying, look, were ready. Were able to move all that you want, including all the new ancillary things that people are just, oh, my god theyre just mad to have video games which i guess there is no heres a good question little poll. Are people playing video games while theyre working at their firm because nobody can tell what the hell youre doing. Youre on a zoom 30person call. Youre playing grand theft auto. Arent you playing i dont know. Not having been a video game unfortunately, im probably just looking at twitter, which is probably even more a waste of time im reading carls tweets. Hes always informing me about something. My wife, carl, says all you have to do is watch you so you have popular knowledge because you always criticize me that the only thing i know is the stock market why dont you follow carl. Ive been following carl forever. How many gershwin or shakespeare references do we each have . Jim, youre in the lead on that. I dont know, youre the top, carl jim, lets get your take on astrazeneca today. The ft over the weekend saying that the u. S. Is considering fast tracking that vaccine candidate out of the uk in coordination with oxford fortune says astrazeneca says we had no conversations but how significant is it, jim look, i think that theres a surprise that the president just went to do that one and not others i mean, certainly two American Companies that are ready, i think. Pfizer is very close very good article today about pfizer please, dont send me a bad email the one im surprised about is regeneron. They are in trials right now i am surprised, for instance, if the nfl which is having a little problem should just go and everyone should get this antibody i think if you dont want to do that but i want the Antibody Test theyre not offering it to people who are not at risk but, david, anybody and something you have spoken about endlessly, that is the frontier, not the vaccine. It can be i have spoken about the antiviral specifically and the merck drug is the one im most aware of more slowly. Difficulty enrolling people for these trials and regeneron and lily. And the journal devoted a lot of time about these antibodies and the souped up version of this plasma thing that youre going to potentially get 70,000 people have been at least treated to a certain extent by the convalescent plasma. Its helping but already out there. We still have a problem. We still have 1,000 people dying every day. But the antibody trials are important. Dont forget, jim, some question in terms of manufacturing. You can manufacturer perhaps tens of thousands of doses a month. Thats not enough. Thats not going to be enough and it has to be, youve got to be infused its a needle. Regeneron tells me they can do a million a month a year. A million a year. For people already sick what you just want to give it to random people. Youre not going to do it prophylactically youre not going to do it for people a little bit sick. One of those things, you want to have it heaven forbid you get the disease, i think you say, hey, listen, doc, how about some of those regeneron. If you know you have been exposed to someone who has the virus. Thats the holy grail thats what we have to focus on to some extent beyond vaccines where there are a lot of questions you know that. Is it safe is it effective . How effective will it be the antivaxers wont take it how many people will actually when do we get to herd immunity and how do we get enough doses out there . Carl, you know right now when david said that. Exactly exactly. And its not just the antivaxers this time. On saturday when the president accuses the deep state at the fda that creates whether you like vaccines or not i dont know what you do with that youre going to get it from both sides now. Youll get it from those who believe the process has been changed to come up with a candidate and a vaccine more quickly than should be the case in terms of the safety protocols that would typically be in place, carl. Then youre going to have those opposed to them, as well yeah, weve got a lot of questions there. At the same time, we want them to move as fast as humanly possible and, you know, the trials, jim, are something of an issue. Getting everybody enrolled youve got to do very large trials its very hard to get 30,000. J j needs 30 by the way, we want them in hot spots. How good is it in new york you have to find a hot spot. Now declining hot spots. It is a very difficult situation. Guys, we continue to watch the melt up in tech and all sectors doing pretty well. Lets get to bob pisani. Good morning, guys. Happy monday 31 advancing to declining stocks thats excellent that disparity between tech, discretionary by amazon and Everything Else. Take a look at how we opened here today yes, new high on apple and technology is leading overall. Consumer discretionary, as well. Energy is a little more flat banks flattish and health care kind of flattish, as well. Pretty big outperformance on Technology Treatment and vaccine is treatitrealeadin the headlines. Any time you get good news on treatment or vaccine and travel and leisure move on the upside you see these moves up carnival, united, hyatt. In terms of what is moving the markets pretty clear today that emergency use authorization that would allow the use of blood plasma from patients who have recovered from covid as a treatment is helping here. Fast tracking astrazeneca and lower rates of infection in the u. S. And good news on treatment on vaccine the market believes that wholesale lockdowns are unlikely even if there are flare ups out there. Not a good news on stimulus. Were into september on the talks there. Over the weekend, a lot of discussion about what the economic recovery looks like not a u or v but k shape and white collar in the tech workers continue to work and blue collars are facing more displacement and goes away towards explaining that wall street, main street disparity we have been talking about for so long in terms of where we are in the markets, the internal of the market were at new highs but i wasnt terribly impressed with what was going on the advanced decline line was actually negative on a number of days the volume, well, seasonably on the low side here. Valuations we have been talking about 2021 estimates, 20 and 21 times 2021 estimates those are really stretched valuations new highs. I struggled to see 5 at the s p with the s p at a new high you want a better new high list in terms of market strength overall here so, a quarter of the index within 10 of a 52week high and well see if we get that in the next couple days how is it possible that you had this with the markets at new highs unimpressive internals here and you get it because the dominance of technology. There is the equal weighted s p 500. That white line in the last week and you see how its moving down thats equal weight is all 500 stocks in the s p and that orange line is the s p 500 which is market cap weighted you see how underperforming that s p has been compared to the market weighted s p and that means that Technology Stock and that small group of mega cap names are continuing to dominate the market here and it is happening again here today a new high on apple and not only apple but all the big mega cap names here microsoft and amazon and all the big tech names and semiconductors, as well. So, unless you find some way to sort of break out of that disparity, you have this weird scenario of overall a greatlooking market and yet underneath the hood, a lot of stuff is continuing to underperform carl, back to you. All right, bob, thanks. See you in a little while. Bob pisani take a quick break and the names leading the dow. Dont need to tell you the top one. Apple, dow, boeing and disney. Were back in just a moment. After my dvt blood clot. I wondered. Could another come around the corner . Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 percent of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. I would be prepared to do whatever it takes to save lives because we cannot get the country moving until we control the virus. That is the fundamental flaw of this administrations thinking to begin with. In order to keep the country running and moving and the economy growing, and people employed, you have to fix the virus. You have to deal with the virus. So if the Scientists Say shut it down . I would shut it down. I would listen to the scientists thats the democratic president ial nominee on abc last night. On a related note two airlines making headlines american reportedly receiving epa approval to use a new surface coating that kills the virus within two hours and is effective for up to seven days delta set to reinstate International States this winter including seattle tokyo, beijing shanghai these are important you cant really go anywhere in europe because the quarantine. These are interesting because shanghai is apparently open for business bars and restaurants like nothing has happened the Vice President bidens comments about letting the scientists have such sway j think the scientists would shut down the economy for a long time why . Because we really dont know much about this virus even after all this time. I do believe that we know endlessly that social distance and masks can make a big difference and shutting down the economy would be a disaster. This is not a republican or democratic view. I think its a view that says when we shut down the economy, we risk a depression which is why i would have liked it so we had a uniform thing sometimes i feel like the war is like hey, they bombed pearl harbor, nebraska, what are you going to do about it they took out whole areas of the southeast, the japanese, and what do we do . Hold it, lets go to the state of washington. Theres a craziness about it but carl, i do believe that everyone realizes that masks and social distance have been the main reason why the numbers have been coming down i thought bidens comments were out of sync with whats happening in the country hopefully it doesnt come to that, jim, and lowest new daily case count since mid july or so. Take a break here. More of squawk on the street as we have a few more minutes with jim in a moment 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. You say that customers make thelets talk data. Rby. 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 buy the new Samsung Galaxy note20 ultra 5g. Take a look at the s p heat map. Every sector is green if you include utilities just above the flat line. 3419 a fresh record high after four weeks of gains for the s p and nasdaq were back in a moment zbljtsds tlrz being stogss th sk that wont quit. Theyre essential and inexpensive. Raymond james reaffirms strong buy. I expect Dollar General goes up again today. The chart is chart of companies that do better in a pandemic than dont, and i think Dollar General is one i think the pandemic means buy Dollar General and its going to work what can i say its the way of the world. Well, fascinating whats on mad tonight . I have palo alto. And the big get, i cant believe i got it, dr. Jonathan cohen you know the nfl is saying theres been a lot of tests done that perhaps were not correct. Because they have a lot of people who were found to be positive for covid. And i think bioreference did the nba. Lets find out this is the big story for both espn and for cnbc. Yeah. Im looking at the dolphins now announcing fan capacity 13,000 for their home opener. Were going to see how they work logistics . The cowboys, when the eagles play the cowboys is it fair . Im not throwing any batteries thats the old days. Were away from that you guys were legendary its nice to have all three of us back. Ill tell you that its fantastic. Great to see everybody yep well see you tonight, jim mad money at 6 00 p. M. Eastern time in the meantime, welcome to squawk on the street im Carl Quintanilla with leslie picker and david faber coming to you live after another day of record highs not just for the s p and nasdaq but also tesla, apple, nvidia, alphabet. Its going to be one of those kinds of days. And winners keep on winning, carl our road map starts with tech on a tear shares of apple now up more than 70 this year ahead of its four for one stock split today. Plus recovery risks as stocks build on the record setting rally. New concerns about the potential for a double dip recession and the gulf coast is brace bracing for two storms shutting half the regions Oil Production down a number of economists are beginning to worry about the possibility of a double dip recession. Steve liesman joins us with the details for us steve . Good morning, david yeah while they are on the mystic the recession will end this year, theres growing concern there will be another recession that follows. The National Association for business economics out with their survey you can see the chart there. About 37 see 25 or less chance of that double dip 26 see a 33 chance, and if you put it together, 32 see a 50 chance or greater. Put it all together and about 80 of the can economists surveyed see a 25 chance or greater for a double dip recession that could be caused by a second wave of the virus. Looking at some of the other findings, one of the issues is how much fiscal policy relief they get, and 40 currently see the amount as insufficient 37 say its adequate 11 say the amount of aid from congress so far is excessive other findings, the recession will end in the second hatch of this year, but the economy wont recover the q42019 level until the Second Quarter of 2022 or possibly later theyd like to see 1. 5 trillion package or higher and wboiz closures, 40 of them will be permanent. The incoming data for the Third Quarter is up substantially. It had been at 20 where we started the quarter. Its now at 26 the Current Quarter is strengthening according to the data, but theres concern about scarring, about not enough Fiscal Relief and the potential for a second wave of recession that i think underlies that concern about a double dip recession. All right steve, thank you for staying on top of that for us and apple shares moving higher up about 1. 5 right now as today is the day of record for apple shareholders that stock undergoing a four for one stock split. Shares will begin trading on a split adjustment on august 31st. Joining us to discuss this and everything going on with apple is jim suva and will power jim j lets start with you do stock splits matter in an era where you can have fractional trading . Whats going on with this stock right now academically you would way and for the value of the company it does not. But for Retail Investors and for stocks that are commonly talked about while you have breakfast, lunch, or dinner as a family, and you talk about Family Planning of wealth and things like that and Retail Investors own the stocks, it does matter and it adds a better ability for people to buy whole shares now, fractional trading as you mentioned is available and so versus a decade or two ago its less important on that fraction versus whole share basis for the average Consumer Retailer out there, it matters a little bit the total value of the company would say no, but we know the real world doesnt always function in academics. We believe it helps but it attracts more College Children and people like that and mom and pops who want to buy a couple shares, maybe a couple full shares for each child to give to them does it matter if apple as more Retail Investors . This company is valued at more than 2 trillion 30 times estimated earnings. Is apple fully valued here does it need additional retail support at these levels . I dont know that it needs additional retail support, but at the end of the day its incremental buyers and sellers that move stock. Anything that can move the stock in a positive direction is going to be helpful, but i think the bigger drivers right now the fundamentals of the company. This is a company that put up an epic quarter look at fiscal q 3 in the midst of the a pandemic, grew year over and in every product line and the 5g cycle is on tap we think those are the bigger drivers. Weve been longterm believers in the eco systems and the benefits they drive from that, and we think much of it is in front of them. But let me follow up on that. I mean, anybody has been negative on apple has been wrong. No doubt about that. But dan niles tweeted over 2 trillion market tap, stock up 70 this year. It has the worst Revenue Growth of its period at 24 when you compound the last five years which is Revenue Growth of 6 , he questions whether a 38 multiple is deserved for this name or whether its going to back off at all given there are other companies with higher Revenue Growth rates its a fair question. And its possible the stocks overheated to a degree nearterm, i think as you look at the longterm opportunities we think theres eco system benefits ahead of them this is a stock you want to own in front of the next big product cycle. The 5g is in front of us the other thing to keep in mind here is i think investors are increasingly in this environment putting a premium on visibility which is benefitting a large part from the work from home world, the school from home world that were in. And apple has been a big beneficiary of that. I think those strings right now are trumping what were seeing on the valuation concern front yeah. Jim, i wonder as well what your thoughts are in terms of and not even apple other companies you cover were seeing sou much momentum, whethe its apple or amazon or tesla. The moves have been extraordinary over a short amount of time the it concerns or is it all deserved in terms of the fundamentals broadly speaking for the companies you follow your observation is spot on correct. I would note also that keep in mind, during this downturn, this recession in the u. S. And during coronavirus, many Tech Companies were actively hiring, hiring talent in Silicon Valley where i live theyre hiring left right and center compared to other industries with layoffs and furloughs. Tech has been investing which tells you coming out of this recession, things are going to be stronger. Theres going to be more innovation and more new products coming out apple going into things like health care. Additional products theyre having coming out in addition to the 5g upgrade cycle could potentially be meaningful. You can no longer put the apple in the cheap bucket. Its expanded because we think theyre going to be coming out of this recession and pandemic even stronger, hiring more talent and coming out with more products while other companies have been back tracing during this tech is coming out of this coronavirus stronger than when it went in a big piece of this Morgan Stanley street target is not substantial to the app store how do you explain that to consumers or investors who thought apple met its match in terms of influence going up against epic thats a good question. I think it would be tough to say theres no risk. You look at services, its now more than 20 of revenue its been growing double digits. Its now a 50 billion the app store plays a Critical Role i think investors are playing the long game here, and while there is some risk there, this is something apple navigated with past negotiations whether its netflix whether its trying to push away from people signing up through ios and through apple and pushing to their own website. There are alternatives out there. I made comments on another cnbc program a week or so ago if you look back at history you went back preiphone, typically the app store rates were higher and it was the carriers that were the gate keepers. Apple labeled a lot of this and developers signed on with apple because they provide the critical Building Blocks well have to see with respect to negotiating rates over time thats possible, but by and large, we think consumers will stick with the app stores because it delivers. Consumers seem to stick with it and investors as well the shares keep turning higher jim j will, thank you for joining us thank you thanks for having me. Meantime, the gulf coast is bracing for two storms, tropical storms marco and laura which is threatening a lot of Energy Production in the gulf Brian Sullivan joins out on the phone with details hi. Thank you very much. Im not a weather man, but i am going to play one on tv right now. This is a serious scary situation, for Energy Infrastructure its the first time weve had two tropical storms in the gulf coast at the same time since 1933 and 1959. If they hit as hurricanes which hopefully they wont, it would be the closest back to back hurricane hit in over 100 years as well. From the energy side of the story, youve got to track the storms path that impacts a lot of what might be at risk houston has about 2. 6 to 2. 8 Million Barrels a day. Capacity just to the east in port arthur texas, louisiana 2. 6 in the baton rouge, new orleans area and less in lake charles. Wherever the storms end up coming in, marco hitting today, laura later on in the week, really decides what is at risk 16 of u. S. Oil refining Production Capacity is offshore. Only about 15 to 20 right now is offline about 300,000 barrels a day. Thats only about 2. 3 to 3 of total Oil Production thats why oil prices arent moving that much right now if the refineries are flooded or shut down, that could change the game and who are the players at risk . Of course the biggest motiva in houston. Port arthur. Marathon, exxon moebile, big names with refineries in that region oil not moving that much because number one we dont have in shutdowns. The refineries are operating or in the process of being temporarily shuttered. And its a different year. Demand due to covid is down anyway jet fuel demand has been horrible so because its a bizarre year, the natural demand is not there to create the supply concerns which might spike prices if this were anything other than a year thats been i think one to forget right you got a right. I see the governor of louisiana said were going to basically get a right hook from marco and a left hook from laura if you had to choose it sounds like maybe laura is the more menacing of the two . Laura is. Its a bigger storm right now. Its probably going to hit as a hurricane. Marco getting downgraded overnight. And also youre going to have to deal with an area. I know youve been down there. You were down for katrina in new orleans. You know that theyre already going to have a lot of rain and more trarain coming. This is a double slam thats going to make it worse it does risk some flooding at refineries most of them are right along the Mississippi River or in lowlying areas. Yep if its not the wind, its the water. I think the katrina anniversary is this week on the 29th well watch all this, brian. Thanks Brian Sullivan on the gulf coast threat when we come back, the pandemics impact on the Auto Industry the ceo of volvo will tell us about his strategy for reviving sales. Dont go anywhere. Volvo number one in j. D. Powers Tech Experience index. The president and ceo of Volvo Car Group joins us to talk about the study. Good to have you thank you nice to be with you again. The power study measures the experience within vehicle technologies during the first 90 days of ownership. What kinds of features are we talking about . Were talking about really, of course, the whole Entertainment System in the car but everything we have built into facilitate the driving for customers. I mean, the safety features, also appreciating this new camera where you sort of see the car from the top when youre going to park it, for example. Its something that was one of the top things appreciated by our customers. Yeah. The extra set of eyes as they say which drivers have come to rely on. I wonder if you think overall the Auto Industry is finally starting to get some rewards for years of maybe where investment and tech wasnt where it should have been. Maybe getting influenced by high profile players. Is that now coming home to roost . I think so. And we are also spending more time now trying to understand what customers really want and not just relying on buying and sort of assistance i think we hear from our customers. I mean, really what they are interested in is a super infotainment, and we avoid overcomplication input methods with gestures. I think thats nothing that customers appreciate so we spend more time really defining what customers need id love to get your take on where you think the industry is. There was a period where we wondered whether anybody would have enough money to buy a car when we realized they would have to find new ways to get around to work or school. Supply chains were fractured a bit. Whats your grade right now in terms of how much the industry has recovered . Saw are 40 above last year we have been very successful we started to normalize early and also experience or tried a lot of online ways of reaching our customers, and that has worked so i think there is an appetite now for cars again, but i think our industry has needs to take some big steps toward online sales or direct communication with our customers i think that will be a staying effect of the corona crisis for our industry volvo is a swedish company, but its owned by a chinese company. The u. S. And china are your two biggest markets in terms of revenue. Im curious if youre concerned about the rising tensions between the countries especially as we see the back and forth over certain Chinese Companies that seem to get caught in the cross hairs. Are you worried given the Technology Investment youve been making in cars that volvo could get caught in the cross hairs . If there is increased tension between the big economies in china and u. S. , of course, that is not good for our company. I think we need to have and create a Global Company with also including chinas ownership. So everything that disturbs that business is bad for us so i think free trade, of course, is important, but i would say the Free Exchange of ideas and technology, that is something probably even more important for the whole economy, but frankly for our company. You know, its hard to have a conversation about cars now without mentioning tesla they didnt qualify for this study because they didnt meet the criteria at least thats what ive read can you talk about how theyre influencing other players specifically in vehicle tech i think they have been very healthy stimulation for all of us i think. I mean, our industry, is rather conservative they have pioneer electrify kags, and i think thats given us a healthy signal that this is a way to move to create sustainable mobility, but of course i was fortunate to start from scratch if we could start from scratch, we could probably also move faster in going into software development, but i think we should they have been successful, and we should respect and i think they have given impulses to the whole industry which is valuable whats it going to take to convince the marginal buyer that even though tesla started from scratch and had a big head start that theyre better off going with some of the more legacy names . Yeah. I mean, that really is what we are doing, of course i mean, electrifying, everybody with go for that, but you need a get infotainment it has to be quality and also quality in the hardware, and the body and suspension and everything like that is something that is as important in an electric car as in a conventional car that is where we can make a difference well, its obviously hugely influential study. Congratulations on basically winning. Look forward to talking to you next time. Thanks thank you thanks its time now for our etf spotlight. Looking at the Communications Services ticker xlc. Up 1 for year facebook, the journal reporting Mark Zuckerberg raised a red flag about tiktok in meetings last fall making a an argument it threatens American Business and should be a bigger concern than reigning in facebook. A Company Spokesperson denied the report, telling cnbc, quote, mark has never advocated for a ban on tiktok. Its ludicrous to suggest that long Standing National concerns raised by policy makers on both sides of the aisle have been raised by mark alone more on squawk alley stay with us welcome back researchers in hong kong say a man has been diagnosed with covid19 for a second time it is believed to be the first confirmed case of reinfection. They say he contracted two different strains but suffered no symptoms from his second infection. Lokellyanne conway is leavi the white house. She will be spending more time with her family. Her husband says he is leaving the lincoln project. Their 14yearold daughter says she is still seeking emancipation as her mother prepares to speak at the Republican National convention this week. Go to cnbc. Com to see if conway is still expected to give the speech in california the second largest wildfire in state history continues to burn near san francisco. A series of wildfires scorched more than a million acres. In santa cruz looting is a concern with eight people arrested already carl, back to you. Sue, thank you. Well take a break here and get an update on where the markets stand. Apple and tesla doing a lot of heavy lifting this morning dow is up 255. Markets are extending whats been a record setting rally. New highs. Joining us to break down the rally and also to talk specifically about esg investing is Jonathan Bailey nice to have you prior to the pandemic, i spent a lot of time talking about esg. It had become a prominent part of certainly new capital allegations into this market and just in general investing. Lets get paback to it a bit we often think about carbon footprint. A lot of people, well, how much pollution or are they Carbon Neutral . Theres more to it on your daily rounds, so to speak, and what youre doing, what are you really looking at to try to measure the success of a company in meeting its goals not just environmental, but social and governance as well and can you rely on the data thats out there first, its really nice to be here to talk about this topic today. And youre right its more than just environmental topics that matter social and governance issues have been at the fore. Just think about how many boards have been to have emergency meetings during this volatile environment. That means that overboarded Board Members, Board Members on seven or eight boards dont have the time to fulfill their responsibilities thats a classic governance issue we looked at before the crisis and we think has helped companies with appropriately boarded boards but on the social sides, we see the challenge of keeping a work force engaged, safe, healthy, and to create a diverse and inclusive environment for people of all backgrounds its been important. It is as you say environmental, but there are important social and governance topics we look at day in and day out were really interested in the things we think are financially material and so thats going to be different sector by sector so you apple today continuing to show Strong Performance in the market and obviously Environmental Issues for a company like apple are important. Thinking about the products. But also its governance and how it thinks about the way in which it engages in Competitive Dynamics with other Market Participants is just as important. It wasnt that many years ago a firm like newburgher berman would not have a position like yours but now you do i would assume a good amount of the money coming in is attached with some sort of tag that says this has got to be under an esg strategy what do the percentages look like and whats your day like . In terms of what are you looking at to try to determine what companies fit your investment criteria and also hit the metrics properly in terms of esg . Youre right. About half of our north american clients last year specifically asked about esg when we were deciding to work with us if you think globally, that seems significant year over year it was less than a third three or four years ago. What was a european phenomenon is a global phenomenon what do i do or my team . We work with our investment ablists data and day out to look at the material topics company by company so when a name is added we have done the diligence as to what the material issues are that might effect fair valuati valuation. This isnt a political thing thats not why our clients choose to partner with us. They choose because they understand these issues matter to the customers at the businesses, these issues effect the cost of capital for the companies, and these issues ultimately were seeing affected in multiples are at higher rated from an esg Perspective Companies capturing higher multiples at the moment because of the flows into sustain shl funds. Just like quarter a 10 billion according to morning star of new flows into Sustainable Investment strategies. Investing in esg, how are yo looking at diligence in advance of the president ial election if theres a change in control in the white house and the senate and so forth obviously Climate Change and Environmental Issues have been a key of the democratic party. Social justice do you see a win fall if they take over and how have you investing in advance of that its interesting the Way Companies have chosen to take many of the longterm commitments around Environmental Issues regardless of the federal governments actions microsoft and apple and amazon, its a net zero carbon footprint. Look at the agreement by the auto manufacturers to reduce tail pipe emissions in california a lot of those issues are already being taken action on by companies. But youre right clearly if there is the biden plan for additional stimulus for the green economy, that would be positive for a number of the companies and others that look like they would be advantaged by that but i would say this momentum is a secular trend thats not really depending on federal action because of the demand from customers and the actions at the state level jonathan, i know newburgher pretty well through the years and a number of the groups they had their own plan. I wonder when you come into their office if you even get invited in, whats the reaction to you in terms of are they looking for advice on what to do and how to change their portfolios conceivably to have a more of an esg power to them do you get the stiff arm from anybody who says hey, you know what i like oil and Gas Companies, i think theyre cheap and im not interested the first thing is that there are oil and Gas Companies that are part of the transition to a low Carbon Company doing important things to shift their capital allegations in this isnt about saying no to oil and gas. Youre right this is a partnership between me and our Portfolio Managers and i think whats been great is the way in which as we unpicked how this can add value to the performance of the strategies its been widely embraced across the firm mainly as you say a decade ago there might have been a few more skeptives. But weve seen a consistent momentum behind companies that have done well and ultimately if you look at the way that sustainable funds have outperformed during the first half of this year, not only our own strategies but also morning stars analysis of strategies more generally, it demonstrates this adds value for clients and at the end of the day, thats what my colleagues are here for. We appreciate you taking time with us. Its an important issue, one we are going to continue to cover throughout this year thank you Jonathan Bailey. After the break Movie Theaters reopening for the first time in months but is it still too early . Well take a closer look at the industrys path forward after a break. 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. One Portfolio Manager believe find out more on trading nioatn. More squawk on the street coming up. Stock slices. 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Sin mark regal and amc reopening doors over the weekend for the first new hollywood film since the beginning of the pandemic all three joining the National Association of theater owners in their new campaign a set of protocols aimed at bringing theater goers back safely joining us to discuss is the National Association of theater owners ceo john, good morning good to see you. Good morning. Glad to be with you. Yeah. We finally have a box office to talk about its been too long it has been a long time you know, we had a record breaking year in 2019 with 42 billion globally and mid march we had to shut down entirely across the world its been five months of not operating. So were very excited that this past weekend we had our first new movie. And safety protocols in place to welcome back our patrons so where do you think the term came from is it about just states loosening regulars is it about having protocols ready to go . Is it about something further in the channel regarding studios . Why now, do you think . Its about three things and you hit them the first is that we have to have new movies. People go out to the cinemas to see a movie theyve never seen before and its a magical, shared experience theyve been in their houses for five months and theyre ready to see something new. First we need a new movies and the first title came out this past weekend secondly we had to make sure that our consumers knew when they came to the cinema it would be a safe experience and so we worked for over two months now with leading ep deem yo ologists to put together base protocols we announceed this past friday so movie fans know what matter which cinema they go to in the country, theyre going to have a safe experience. And third, its the opening up of the markets consistent with health and safety guidelines working with all the states, all the health departments, showing them protocols and demonstrating we can open up safely. Were not done with that yet theres still states that are closed to us, but we think theyre going to open up soon. Were excited about the first step we took this weekend with unhinged yeah. Wheres your head on pricing what should theater goers expect to see in the way of ticket costs . And the way in which the window has changed since covid began, how much of that sticks . So generally as a trade Association Leader its not my role to talk about pricing those are individual company decisions, but i will say going to the cinemas remains the most affordable form of entertainment. Its cheaper than almost anything else you can do, and people need a break outside the home thats affordable typically the Movie Theater business does well during recessions, and even though the stock markets are roaring right now, theres a lot of people hurting in the United States and across the world so we think having been couped in their houses for five months, maybe having strain on their disposable income, the chance to go out and see a new movie in a safe environment at an affordable ticket price means the people will come back strongly to cinemas. As for competition with streaming and movies moving off the calendar to go to the home, i would say those are unique decisions to a pandemic. Right . I mean, we went operational for five months in order for some movies to make some money, they got pulled from the Theatrical Release calendar because we werent open and had to go to the home i point out the vast majority of movies scheduled over the past five months have been delayed for the release later. And thats what were seeing now with unhinged this past weekend, new mutants this coming weekend and tenant on labor day weekend. Im curious if youve heard back from any movie goers about their experience with the new health and Safety Measures masks are required throughout the duration of the movie. There are modified concessions are people still gung ho about seeing movies al bee it in the safer environment, or do they have greater complaints about Different Health and safety requirements that youve put in place . No. Its a really good question. And i am so encouraged by the response of americans as theyre starting to come back to cinemas. Some of our company has been open for a month or more showing catalog movies and old movies and just now this past weekend a bunch of our cinemas opened up for the first time to show the new movie. Weve done a lot of research and surveyed patrons across the country. At two companies, sin maone basn texas and one in wisconsin, 0 of the people who came to the cinemas said they were pleased and supportive of the health and Safety Measures the companies were taking. We think this will help to grow the resurgence of the Box Office Opening weekends wont be what they were a year ago were operating under reduced capacity social distancing measures a lot is going onto making the environment safe and also makes it harder to have the same kind of box office returns. But what happens when people come back to the cinema for the first time, they see a good movie and have a safe experience they go on social media and tell their friends. The word gets out, i made it back for the first time. I felt safe. I had a fun time at the cinema you should check it out. Were going to see the numbers grow from movies in the marketplace instead of decline like they have in the past one example unhinged that opened this weekend did more business on saturday than it did on friday that rarely happens in a movie grows through the weekend. Its growing because the word is getting out. There are new movies back in cinemas and its a safe environment. On, i wonder if you can give us a snapshot of the Financial Condition of many of your members and whether you think theres going to be consolidation of screens over time here or even more so just i would think because of the added cost and not to mention the fact you cant go to full capacity if people were able to meet the demand thats a good question. Theres no doubt there have been strains on the liquidity of the operators of Motion Pictures over the past five months. We went from a 42 billion Global Business in 2019 to making virtually zero revenues in mid march n. Its stretched five months. We wont instantly bounce back well grow gradually over the course of the year with more new movies and more people with a safe experience. It will continue to grow there has been a dramatic strain on the liquidity of our companies. Weve worked with the congress and fed on loan programs and the Unemployment Compensation to make sure our 150,000 furloughed employees have something to fall back on during lahard times but now were taking steps to making revenues and rehiring employees. There will be changes in the Corporate Structure of the Motion Picture business in the short and longterm and how that plays out is anybodys guess but certainly there will be changes in the structure finally, john, is it too glib to argue the kinds of movies that are going to do well, even more so than before are the top gun mavericks and the tenants that you cant replicate on your home screen, no matter how good your home system is . I think the opposite. I think people have been watching so much content stuck at home that they want to see everything on the big screen, and unhinged is a good example. Its a movie from a brand new studio out of the gate its done well in australia and is growing across europe and now its opening in the United States i think what people were taught during this peend is how much they misseds going out of their houses to have a shared collective experience with family and friends in front of a big screen munching on popcorn as much as it strained the liquidity, the pandemic taught people what they missed and they missed getting out of their homes and having a good time at the movies were hoping that the momentum continues youre right about the initial box office pretty encouraging we look forward to having you back thanks thank you good to be on your show. As we head to break, take a look at the biggest gainers on the dow. Boeing leading the way followed by dow inc exxon mobile stay with us well be right back. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Welcome back to squawk on the street. The nasdaq and the s p notching near record highs at the bell. Energy and tech are the top performers today pretty much a sea of green except for a handful of sectors here at the end. One notable lagger is real estate we look at some of those individual names leading that sector to the downside youre not seeing some of the badly battered retail names, but it is the data centers and the cell tower leads you have names Like Digital Realty trust American Tower Corporation Keep an eye on the technology alste investment trusts. Squawk on the street is back just after this. This selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. 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. College students across the u. S. Making their way back for the fall semester. Joining us now is Christopher Merrill of harrison street you have universities in 19 states that have reported outbreaks. Of course universities have Stricter Health protocols in light of all of this what does it mean for all of your investments the largest owner of prize housing. Are you seeing a drop in demand for students reemerging in the fall semester . Thank you for having me, it is great to be here. Even has we have seen children go to Online Education, we are able to offer them guaranteed housing. A place to take their Classes Online for us as the universities dedense if i, were seeing an increase in demand so for us what is rewarding to us ask providing safe, great communities for these students to continue with their College Experience what are you doing to snur that the communities that you own are safe for the students moving in. When you look at the opportunity and the choice for the student, much of it is the things that we provide, one of them is bed bath parity. Multiple students sharing a bathroom, or a shadow market where there is off Campus Housing where it can be four to five per bathroom. It offers a good, safe, clean environment. I would be remiss if i didnt megs th mention that we have great local partners we have great partners taking care of these kids for a long time and it has been so rewarting to see how well they have done for them to continue their College Experience. Student housing was a sub sector of concern due to declining opportunity enrollment how has the pandemic reshaped the sector in your view . Sure, and again what is when you look at the asset class, we were able to see which markets and what classices performed well in good times and in very difficult times. When you think of the asset class, it is very popular. People see how resilient it is the fact that we can get a better return than traditional multifamily investing. But you cant paint it with a broad brush. Every school and market is different. What is the cost of education at the school are they investing in small private colleges or larger Public Schools we tend to focus on larger Public Schools the cost of education is the right premium for what the opportunity is for the children. I think it got very it was a lot of interest in it. So you saw a lot of newcomers coming into the space the experience of the individual markets. There is a little opaqueness it requires you to really dive deep and understand the micro fundamentals in a given market for us we have seen 95 or 98 rent collection. We have been very pleased with the selections that we have chosen over the years. There is a number of schools that are remote only but the students want to be near campus. I assume that is to your benefit. Is this an opportunity to consider expanding buying more communities as well given what you just said absolutely were long term players in this the tech sor our focus is on education and health care. This year we will probably complete five to six bill in Educational Health care. And now we continue to expand, and this is a great time to go to work with the universities and work on our public to private points this is a challenging time, and many schools will be hurt, and for some it will not be reparable. For us we want to be part of the solution here. We want to go sit with universities and say how can we be a long term partner to help you with jr. Real assets on campus for us this highlights as we saw on the global final crisis, there was consistent planned for these assets kids continue to go to school. Kids want to be part of that experience Online Education doesnt work on its own were go to keep investing throughout this period of time it looks long term and youre putting to work five to six billion dollars, as you said thank you for joining us thank you for having me over to you, carl leslie, david, thank you. It is 8 00 a. M. At apple headquarters, and squsquawk al is live