Transcripts For CNBC Squawk On The Street 20240712

Rips into Silicon Valley and defends the companys government work and no symptoms, no test. Why the cdc is quietly updating its coronavirus testing guidelines normally, jim, i wouldnt start there, but you were just tweeting a moment ago about how important testing is as the number the sevenday average of new tests in this country is the lowest since early july. I just think that the main gap in the system is you hear people say, well, my daughter just got it from college and weve been all trying to test in the family, its five days, we dont know what to do. I think that that halting nature of what to do has gripped this country and has changed it from a country where you go places to a country where you stay at home its a country where you do not travel overseas, its a country where youre frightened over a five and sevenday period endlessly and we live with the tyranny of it. Testing would end it, but its got to be instant. Cant be a lab a lab is a big, big obstacle. Yeah. We will talk more about that later. Certainly the way covid has turned the world upside down has done nothing to dampen salesforce projects. Citi likely taking hardware share from cisco its an amazing print. Sometimes you look at a print and say when did you expect to get that one when did you expect to see that quarter . It would have been sometime maybe toward the end of last year, theyve got 20 billion rev. The thing that i find that is most exciting about this is were seeing companies saying i have to digitize you look at nordstrom, they didnt digitize correctly. Anybody who digitized correctly, dicks which we are going to talk about, the world is their oyster most companies they are not Technology Companies so you bring in salesforce, they tell you how to do t david, you know that marc benioff has a vision which i think you share about how to change the world. Yes, so many things that benioff and i share other than friendship which we do not share. No fault of mine no fault of mine i mean, i have never actually had a guy on set when i ask him a question completely ignore it the way that marc did. I got that clarified. What marc has done is made it so that whether its at t, whether its the veterans, under armour, vf corp. Or vans, they figure out a strategy to be able to lift sales its done by knowing your customer, by being the true arbiter of the customer and it works. I think a lot of people think its smoke and mirrors until they bring it in and get a gigantic lift on their e mers. This quarter retail has been all about ecommerce if you had it youre good, if you didnt, byebye. Were going to get to some of the ecommerce numbers out of dicks and others today, jim you did talk to benioff last night, he talked to you about the growth rate, but also talked about some of the challenging times that we are in lets take a listen. This has been such a challenging time for so many of us and, you know, we realized with 54,000 employees working at home, with a raging pandemic, with this economic crisis, social justice crisis, with this environmental crisis, we had two changes, we could stay and do what we were doing or we could change, we could evolve, we could shift and we did jim, wasnt long ago we were questioning the strategy of letting some customers go without paying some of their subscription fees. Now all the commentary revolves around how you raids margins even amid explosive growth. Im glad you mentioned that because that was the theme last quarter was a disappointment and why was it . Well, when marc came on he said we had to let people have it for free for a while, we were not going to try to squeeze our clients, prospective clients do you know what, it worked. They had a run of new clients, the likes of which i have not seen, this was the best quarter, i believe, as a Public Company and a lot of it is Just Companies and States University of kentucky, university of kentucky figured out its online strategy with mark when you bring in an outfit like at t and, david, i know you can speak to this, i dont think at t was necessarily known as a customercentric company and what marc benioff talked b he wanted to talk about it first, was the number of people who are feeling basically good about at t and their Cable Service because of this identification issue that marc gives you. Know your customer and, david, i think a lot of companies that dont know their customer have no choice but to it your honor to sales force they dont even know how to do it. Youre right. Youre right listen, jim, and you have made this point already, but its worth mentioning again, i mean, we have talked so often the three of us about the acceleration of trends that were already in place and the digitization certainly of so Many Companies when it comes to their customerfacing opportunities has been accelerated. They have had to its the only way you could survive at this point and obviously sales force has greatly benefited from that. Not as much oracle or sap, by the way, as salesforce has been able to during this period. No, and thats the Customer Relations management marc puts up charts, shows that marc has been taking very big share. I think its true. I think what you talk about with the ecommerce, you look at a stock like dicks, its going to be up maybe the most this morning and theyve got some numbers for ecommerce that are, again, staggering numbers that you get where first of all when you see the earnings increasing 148 , 155 for nongaap you realize how did they do it because ecommerce sales increased 194 the theory im propounding for tonights show is your home has become everything. Its become your mall and its also become your office and, therefore, if you are going to shop at dicks youre shopping from your home and you take a look at the incredibly poor numbers by nordstrom today and the whole goal was to get you into their store so that you would do shopping, both their rack off price and also the main one in the mall and people dont want to do that. Its just its done its just not going to happen. They were nonessential because they didnt sell food. This was the same kohls dilemma. They have no raise on deck, there is no reason why you need to go to nordstrom the Better Service is on amazon. Its true, jim. You would be the first to say when the government says you cant open you are talking about huge policy ramifications, but it was interesting, you know, best buy was able to overcome some of that closure in the quarter but just not so for jwn. Best buy has a pretty good curb strategy. The number of price dumps today, i thought best buy was unfairly punished by the fact that the stock ran up i think the best buy story is simple, they survived. They few in their category can survive. This whole issue of who survives versus who goes was decided by the government and i dont think we are ever going to understand how we let that happen, it was so arbitrary and capricious but when you are a nordstrom and you were closed for 50 of the days what happens what happens is people say theyre closed im not going there. David, childrens place, terrible numbers i start thinking in the mall, what are they going to do. Everybody thats in the mall that was nonessential, people dont come back. Stores arent that great. I know. But what youre arguing and many are is that there are Behavioral Changes now in terms of, well, behavioral societal changes that have taken place during the pandemic that will continue forever. We talk about shopping, there are others who will say, listen, people like to go to a store, especially a nice store, a nordstr nordstrom, Something Like that, there is something they enjoy about that and thats not going to change when theyre able to do that and feel safe again. Similarly there are those who fight back or challenge the idea that we are all going to be working from home forever. I know Antonio Neary yesterday from hewlettpackard which also had pretty Strong Quarter offer quarter growth, year over year still not great, but quarter over quarter and that stock will be up. Jim and carl, talking about his belief that as many as 50 of the workforce is going to be working from home at some point. I find that a bit hard to imagine, but we can ask him or at least you guys will be asking will be able to ask him about it, carl, on squawk alley when i believe he will be your guest the question is are these Behavioral Changes that have taken place over the last six months here to stay forever or are we making too much of them david, i think that some of this is frankly will we feel safe do you feel safe going to the store . I mean, obviously if you had Rapid Testing and you knew that there was a vaccine you might want to go as Richard Haines said and this is the incredible quarter that Urban Outfitters delivered, thats not all mall based but heavy mall, said, look, clearly some customers prefer shopping in stores. If you had heard that statement two years ago would you say, yeah, no kidding no kidding but what we wiped out and, again, he is such an articulate man, with he wiped out weddings, we wiped out graduations, we wiped out dining out, we wiped out the reason to get dressed nicely so whats happened is, and, again, he is such a smart man im going to steal this for the moment, he is talk being that we are now fashion is function its function. And its also impossible conditions and bringing supplies carl, i think that things are here to stay until we have to hurry up whoever is trying to get us a vaccine and test has to realize there are a lot of jobs on the line even though i do see obviously from durable goods there is a come back theres no doubt a come back no one disagrees with that. Durables durables up 11. 2. We were looking for 4. 7 and the prior 7. 6. Decent numbers on durables and thats a big reason why yields are up close to twoweek highs jim, to your point about fashion being function, i mean, ces, conventions, now on the wires just now, davos rescheduled until early next summer, the olympics we will find out if the super bowl happens, but, you are rig right. Whats the upgrade today keurig, dr. Pepper, Morgan Stanley overweight on inhouse coffee consumption. Yesterday smucker you had duncan, cafe bustello, these are putting up 20 numbers, follow injurigers. 20 growth for a coffee. What does that mean for stars bucks and kevin johnson. The foods that people really love, coffee, thats been a major come back, and, get this, Peanut Butter. Jiff had amazing numbers and skippy had amazing numbers you can say, wait a second, is that a recession or some sort of craving . I dont know those are the two those are the two food stuffs that people went nuts for in a pandemic. David, i dont know. I know you never leave your house. How are you stocked for Peanut Butter how are you stocked for coffee were good on both. Good. We are good on both. I will tell marc benioff youre fine on that. Thank you thank you. I appreciate that. Because i know he cares a great deal about my thats all he talks about guys, we will take a break here theres a lot to get to. Got another street high on apple for the third day in a row, 2,500 target on tesla and david will walk us through that palantir s1 which as he said was imminent 24 hours ago and is truly a remarkable read. Back in a minute 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. 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 buy the new Samsung Galaxy note20 ultra 5g. Well, we did get that s1 from pa land tear as carl said did prove to be an interesting need to the so much from the numbers but as well from comments from long time ceo alex carp remember, palantir will be doing a direct listing so its not going to be raising any new equity for the company, which has been able to raise money for many years in the private market and has about 1. 5 billion already in cash on its Balance Sheet. There is a look at some of the numbers as well in terms of the net loss last year, revenues and you can see overall the first half of this year 49 was the top line growth rate, guys, 481 million, you can see that number right there, and they are saying as well in the first half of 2020 the net loss decreased to 164 million they also say they made money when you exclude stockbased compensation but we prefer not to exclude that given its something theyve been doing for quite some time and probably will continue to there is going to be a lock up of some sort on a certain percentage of these shares, i dont have a lot more detail on that, but it is worth keeping an eye on because it would make it somewhat unique in that sense. Then there is the question of exactly what the float is going to be. Im hearing it could be as much as a 4 billion float, 15 to 20 billion dollar value, you are talking about almost a billion dollars in revenues. Guys, what got peoples attention is, again, alex carps comments in a letter about Silicon Valley where they have been for a long time, but where they are moving from here is what he had to say, the engineering elite of Silicon Valley may know more than most about building software, but they do not know more about how society should be organized or what justice requires. Our company was founded in Silicon Valley, but we seem to share fewer and fewer of the Technology Sectors values and commitments. From the start we have repeatedly turned down opportunities to sell, collect or mine data, other Technology Companiesincluding some of the largest in the world have built their entirebusinesses on doin just that. Reminding us that their software is used to target terrorists and keep soldiers safe he went on to say if were going to ask someone to put themselves in harms way we believe we have a duty to give them what they need to do their job government work, jim, has been an important component of this companys business for quite some time, but they are trying to make a larger and larger commitment to the commercial sector with their foundry works product to help Companies Use data as well but, again, not in the way that he says didnt name names, but i think we know who he is talking about. They dont like the advertising model which i think is correct i dont know what is in their new product. Look, i think that there is something to be said and a lot of these Companies Keep saying it about the idea that your personal data should be your personal data, but i also say that everybody comes to the nuisance i never understood the idea that you came to facebook in order to blast out your personality or instagram you want to be able to tell things but you want privacy. It should come with the territory. I have shopify on tonight, we should talk about that i appreciate any contrary this is a very good call about the idea that there is just a concentration of power in one area and i think for those who want, lets just say, more democracy of tech, it isnt good that there is just a small group of people who control so much. But i also think that palantir is fighting they are fighting an uphill battle theyre smart guys. May be. Interesting to know peter thiel a founding, he is a billionaire but im told fairly liquid, this is an important direct lister for him as well. He is, of course, carl, on the board of facebook which while not named certainly seemed to be the focus in part of what mr. Karp was writing about. Yeah, if people look into that letter from karp spitting on the traditional mindset of Silicon Valley but then, david, class f common sort of tying right into what Silicon Valley has done long term in terms of ownership structure. Correct they will have voting control of the company to your point. Thats right and that is something that weve seen happen of course the likes of facebook as well and a number of other companies so, yeah, its not as though they are on the governance front at least that they are necessarily adapting best in class at this point, carl, but hes an interesting guy, karp, and i hope that we get more exposure to him. He doesnt make himself widely available but hes worth lipping to ive gotten to know him through the years and has a unique perspective. Isnt it sanctimonious to say our looerdship believes working with the Chinese Communist party is inconsistent with our culture and mission. No kidding if your culture and mission is to target terrorists and keep soldiers safe, why would you be i mean, yeah no, i dont want you to work with the chinese i mean, honestly not only that but we are not working with north korea thats it. Were putting our foot come on theres no place for sank moany. All right good yeah you thought he was sanctimonious. Yes. I get it. I get it jim, stay tuned because were going to have an interview with bhp committee mi pchlp committey its his first interview in the u. S. A lot to talk to him about including of course the storm that is coming to the gulf and what theyre going to do to prepare given bhp does he erations down there. Back right after this. 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. Now tmobile has thousands more. Locations across the country. More towers and more coverage than ever before. Tmobile is americas largest 5g network. With more 5g coverage than verizon and at t combined. Experience it now with our best deal ever. Unlimited for 25 dollars a line for four lines with 5g access included. Its time to join tmobile. That upside surprise on revenue for salesforce, the biggest in at least ten years, its a big reason why the stock it up almost 15 premarket hewlettpackard enterprise, we will talk to antonio neri later on today when squawk on the street continues. Dont go anywhere. Its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile 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. Announcer the opening bell is brought to you by nuveen. A leader in income, alternatives and responsible investing. All right. Lets get to a mad dash now. Jim, you are going to take a look at lowes. Yeah, there is a couple notes today, jefferies comes out and says they have a new tool rental plan but it hasnt been laid out yet, but i mention lowes because in the old days, david, when there were somewhat obvious trades like a hurricane people would buy home depot and they would buy lowes i think that these new younger traders they think that theyve never you know, no one has ever seen anything i actually think theyre going to buy lowes and home depot off this terrible hurricane thats potentially catastrophic and i think youve got to get ahead of them because i do believe that lowes is a fantastic company, home depot is great and they are always first to help in these terrible, terrible weather conditions be aware i think that they will plow into it tomorrow morning around 4 00 a. M. , maybe want to get into it ahead of them. Wow so youre just giving youre giving a trading recommendation based on what you think is this sort of new cohort thats entered our market. Yeah. Which will be thinking about things for the first time in a way that obviously weve been watching forever. Its extraordinary, david, they wake up and they say, do you know what, salesforce added to the dow, well, do you know what, salesforce will buy and then, david, the next day they have a report and the stock it up 30. I mean, because this mantra of these people is stocks only go up, my friend David Portnoy has been the principal proponent of that, but they will do this. They will buy lowes and they will buy home depot and theyve got it right, salesforce, 34 points. Right so they were not looking deeply into the salesforce numbers, making sure they understood what Free Cash Flow was and what the prospects are for its opportunity to continue to grow at a significant rate . They may have had interested in the tab low software feel, meal soft worked very well maybe they were scrutinizing, david, the market share versus sap in oracle, or maybe they just said, hey, this one is going higher, lets buy it which is the new way, david. I doubt they even they didnt even know there were earnings yesterday you know that. Salesforce, maybe they think its like armed forces i dont know no, they did know there were earnings david, what did they do . They bought it and picked up 35 points who are we to criticize. Who are we gray beards, suits. I know. We put suits on, we know . Is it 98 . Is it 99 is it 2000 where are we david, i have to tell you at law school we called used the term sui generous, it aint like anything we have ever seen silence. Carl, Interesting Times yeah, because, you know, so often, carl, with he hear these comparisons to the late 90s but it is worth reminding people we were talking about excess speculation in 98 and it went on for quite some time after that. Right, and i think that, carl, we have to respect t i think a lot of people including many big hedge funds dont respect it and theyve been left behind by the people who are optimistic yeah, jim although yesterday i think we were going back and forth with portnoy about why people continue to insist its a bubble and i think your implication was those who repeated about i say, oh, we are in a bubble, we are in a bubble, are not wellinformed. No. I mean, i think that well, theres two things i would say there is a really interesting piece today jefferies on tesla and its called the permanent revolution continues permanent revolution, carl, that is actually a phrase that comes from leon trotsky, meaning you constantly have to reinvent and attack and crush your enemies. Portnoy is a bit trotsyite when it comes to these people i would say trotsy trotsy would look at these people and say they are really rich people who are sitting on their laurels and do not have to account for anybody. Portnoy of course comes from the sports world where these people would have been fired nine times over can you imagine an nfl coach who was very good in 1987 and has been coaching ever since and thats the world that portnoy is from he is a world of rigger and the world of rigger in the nfl is far more rigorous than the world that we have people can be wrong all the time a lot of these hedge funds come on and maybe they say they are on some private island, maybe they say this is the most dangerous market ever and nothing theyre wrong and they still have their job, their job is to be rich. So thats why i thought that the tro trots keyimplication was interesting it was interesting. Their job is to stay rich and keep you poor. The Hedge Fund World was created to enrich a small group of people beyond all measure despite the fact that when you look at the performance over a long period of time it is nothing short of maybe average. Yeah. And yet they have all been compensated until recently where fees really have started to struggle they have all been compensated as though they are the greatest invest of all time and they are not. No. They are not. Its much more of a marketing scheme in many ways has been my experience having followed the industry now for a quarter century from really its earliest day to where it is right now. David, we hang on those filings of what theyre doing, we have people come on and say, listen, the world is about to end and then they buy into the world is about to end. I dont know who does that, but, David Portnoy is not one who does that. Yeah. I mean, remember, he got in right at the bottom. Its remarkable and it goes to the current conversation about wealth in this country, carl, because there has been an incredible amount of wealth created as a result of this industry that you could argue didnt make sense and didnt actually operate in the way wed like it to in a free market because in a free market it would seem assets would actually accrue to those who were best positioned to get performance and yet that didnt always seem to be the case. Never fired. Not to mention the Federal Reserve just this week with data showing that top 10 of earners in the country own 87 of u. S. Stocks highly concentrated and unequal distribution of gains from the stock market which we dont talk about enough jim, back to what we do talk about and that is names like apple, you see weve got we had bu wed bush today going to 600. Iphone 12 super cycle they say as i also notice reports apple may be planning augmented reality content for apple tv plus. Theyve always been saying that i want to caution you only hear the term super cycle when you are wrong. I say own apple dont trade it we had a fracking sands super cycle, we had a coal super cycle, we had an oil super cycle. You never want to hear that term because no one can live up to a super cycle. I think they should temper their enthusiasm i am the biggest apple bull on the street i dont like to hear super cycle because thats the kiss of death. You know, jim, and carl, we dont mention often enough berkshire, still one of the Largest Companies in this company, i think sixth largest market cap, its 250 million plus shares of apple are worth 126 billion. A lot of cocacola. Doesnt add up to anywhere near that number, not even close. I mean, bank of america i think is berkshires next Largest Holding at around 26. 5 billion value even though they own 11. 9 of the company, jim, that 126 billion and then you add the cash that berkshire has as well you get to an enormous number. There are some people that have been doing analysis on this idea of the stub value of berkshire given that. Wow. Im not sure its completely worthwhile, but it is worth mentioning what a position thats been for warren buffett, you know, and you can criticize and we have and certainly theres plenty of names including kraft heinz and wells fargo, but the apple purchase not bad. Not bad at all. Went to dairy queen, saw everybody using an apple you never wanted to own technology stocks. He always regarded it as a consumer packaged goods play i know tim cook doesnt appreciate that is correct the ceo of apple, but better to be lucky than good. If you see a lot of people Walking Around with apple phones and decide to buy it, it does make up for some very underperforming wells fargo. Wow. Im still waiting for wells fargo i dont even know what im waiting for there. A stage coach. John ford. Its a john ford movie. By the way, speaking of Great Investors who have had long track records, carl icahn, if he held on to that apple and netflix stake he would be worth 50 billion or 60. The numbers are staggering he did very well, remember, when he was taking tim cook to task and they were having dinner and things there were things like that that was years and then they sold same thing on netflix. Sometimes it pays to hang in there. Look, this whole idea of being in and out of apple has been a disaster and yet these analysts they upgrade, this he downgrade, its really repugnant. We criticize hedge fund managers, how about analysts who are just trying to make a name, come on tv, say apples best times are behind them, the stock was at 200 i dont know i think if you have conviction and the story stays the same, just stay with it. You can say, look, there might be shortterm craziness, this split has really created a belief among, i think, again, david, some of those newer traders that somehow a split occurs, you buy it before the split and suddenly you get a lot more no, not really you still get the same amount, but i do find, david, what i like about these people, what i like about these people is they believe in stocks not just etfs and you cannot tell a single robin hood trader theyre 13 million strong that there is such a thing as single stock risk because theyve seen the fortunes made in facebook and amazon and apple, seen them made in microsoft and google and they dont want to be left out by being in some sort of s p fund and i dont blame them. Certainly today is the day, jim, that completely ratifies that point of view as we see all of mega cap tech really supporting sectors that are otherwise in the red, including banks and we havent really discussed what to expect out of jackson hole tomorrow, jim, but alan blinder in bloomberg today suggesting rates could be near zero for the next five years i disagree with that. There is such a thing called science and if science solves first testing, gets that gap down, no more labs, then solves therapeutics so that if you get it you can take a pill or a needle and you get cured, then we will be thinking what was blinder thinking why didnt he stick to why didnt he think about science instead of sticking to commissi economics. This is a giant science economy. Im tired of hearing from strategists who dont lead off saying its a science economy. Its a science downturn for heavens sake it is. Thats what it is. Its not a downturn on consumer spend. You heard larry kudlow last night, carl and david, carl, larry is bullish he is bullish talked about the pandemic in the past tense, said it was awful. New polling today who say those who would take a vaccine if it were available today 40 now, up from 33 know as we talk about the fraying of confidence in things like science and the cdc. American laying off 19,000 yesterday as we know and, by the way, am he had dose on the tape saying that they are considering some executive orders to help out the airlines. I think that they, too, should wait for some science southwest is saying they dont have a problem, american already in hock a lot. Im a believer that we will have developments when you see i watch dr. Gottlieb and theres so many smart people involved. All the kids that you did not want to compete against remember when you would walk into one of those College Classes and see all those people saying this is a d coming. They are all working on this they are smart people. We thought that smart people go to a small area of Silicon Valley, keep to themselves and determine the world. I am saying there is another group of people who are very smart, except for theyre scientists and they intend to try to cure something and stop den grading them or saying they dont know what theyre doing, i wish the fda had more backbone, youre putting up a list of stocks that look like they are has beens but i think were going to get results we start by knowing whether we have it and then we can do something. Not five days later, not we send it and 77 nfl guys are listed imagine if that bio reference piece where there were 77 tested positive that came out game day what would Adam Schefter say you have 77 names who cant play david, he is espn analyst. Im aware of who he is. Okay. Ive been watching a lot of basketball i dont know about you guys, ive been very much enjoying the return of at least some sports the mets was a little tough to take. There is a bubble basketball is a bubble okay basketball is a bubble. You have hedge funds come on say its a bubble and they are worthless. Basketball is a bubble. Basketball is a bubble, they get tested a lot and, listen, i share your concern still at this point given that i have two very social teens and we have had them tested a lot and, man, you cannot get a result as quickly as you need to. You cant. Unless youre willing to pay. There are places you can go and pay a lot of money for it and so the question still becomes, well, why hasnt the government then found a way to make those places ubiquitous where you dont have to pay so we can all get tested when we want to and get results very quickly i dont get it. We do people to be in these trials when i heard that vacs number, ive been trying to get into the j j trial, i think its everybodys duty to get in these trials there arent enough arms regeneron needs more people. If we dont have people from hot spots who take these vaccines we are not going to have any answers. It is everybodys american duty to try to take a vaccine we need testing. We dont have enough people who are willing to try thats going to be the death of the vaccine candidates. Lets hope people listen to that in the meantime all time highs again for the s p this morning and the nasdaq lets get to bob pisani. Hey, bob good morning, guys. Happy wednesday. All time highs on the s p and nasdaq but not a lot of new high breakouts. Where are they i count 13 on the s p 500, thats it. With the s p at a new high this shows you how important these mega cap tech stocks are lets take a look at the sectors. Whats happening today is this little mini rotation into value stocks weve been seeing recently in banks and industrials, thats kind of stopped today. I think largely thanks to salesforce, thank you, that is moving the Software Sector up rather dramatically, helping techs out, Consumer Discretionary. Banks, industrial, energy all modestly underperforming, the rest of the market here. If you take a look at software stuff, a lot said about whats going on crm, but it was a blow out number overall here, guidance also very good. Intuit delaying knows tax filings helped intuit, this he do the turbo tax and Everything Else the company said they had the strongest Customer Growth in four years people needed a lot of help with their taxes. You see Software Stocks that are doing data dog, splunk, service now, smaller companies, but they have had terrific quarters all the time throughout the last few months. The numbers just keep going up speaking of Customer Growth, online sales among the retailers, boy, they just keep getting just terrific numbers, dicks was up 194, thats not a typo Urban Outfitters didnt give a number they just said it was up double digits and they had a great quarter overall. Surprisingly nordstrom down 5 but that partly is because the anniversary sale was moved there should be an asterisk there. I believe it would have been up if you would have had the normal anniversary sale there, but still rather poor showing for nordstrom. If you take a look at the numbers today the market is telling you here obviously they love dicks numbers and Urban Outfitters was surprisingly strong, pleasantly so, you see the 25 jump and nordstrom no real response but disappointing numbers. Nothing disappointing about the home builders. Home builders, another home run in the new order we just had a vehicle of tremendously great numbers from pulti, horton and toll brothers. The key metric is whats the future like and you watch for new orders that is the key metric for the home builders, another good number here up 26 for toll brothers, d. R. Hortons numbers were up 38 when they reported, they reported a few weeks ago. Pulte as i recall was flat everybody had tremendous things to say, the numbers kept getting stronger month over month here the request he i think here, you saw they were all down the question is how much more cuff these stocks are up all 30 , 35 for the quarter. If you plot the Home Building etf the hxb against the s p for the year you see the hxb in the white line dropped a lot more in march than the overall market, but you can see its recovered a lot quicker. We recovered more than 100 of the losses that they had by the march bottom so theres the huge turn around and i think a lot of people have been pleasantly surprised including home depot and lowes and everybody benefitting from the diy ethic sweeping the country. Carl, back to you. Bob, thanks. Rick santelli brought under the circumstances those durable numbers at 8 30. Lets get back to him. Hey, rick. Yes, carl, those numbers were definitely on the hot, hot, hot side, you can tell look at intraday of ten year notes they made their high yield pretty much right at the moment those figures were released a little bit above 72 basis points which by the way is the intraday high there about the 13th of august, call it a couple weeks ago, and its the high close from the 13th as you look at a month to date chart you can see it there right in the middle and if you open that chart up to june you can see that should we trade a little lower in price, a little higher in yield we would immediately pop up to the best levels since midjune. So weve really been compressed and i think thats an important feature because we could argue about do you believe the stock market is giving us representation of the economy, but in the end there are no buts, we are at all time highs in the s p and nasdaq and Interest Rates really seem very much to be ignoring that dynamic, one could say its because theyre giving you a test of the real economy i dont think so theyre giving you a test of the breadth of the Federal Reserve to keep Interest Rates low thats really in my opinion whats going on. Finally lets look at the dollar index. Since june 1st you could see this big rounding bottom that we have where we are coming from 92 plus all the way up to 93, weve been doing some work and the Euro Currency of course has been turning at that 11 , 11 , 118. 5 number obviously emerging markets much of the world has seen a relief from the dollar funding issues just a couple months ago and everybody has written off the dollar index, many think its going to be much lower but at least at this point in time it certainly seems to be getting its land leg back. Carl, jim, david, back to you. All right. Thank you, Rick Santelli dont miss coming up our interview with bhp group Ceo Mike Henry they provide commodities around the world. What is he seeing in terms of a rebound . We will talk to him about that stay with us pnc bank believes that if you can get a pair of goggles that helps you master your backhand. Then you should be able to get a bank account that helps you master your budget. Virtual wallet® for Digital Banking from pnc. Its time to get more from your bank. Etsy ceo Josh Silverman jos for a bill which seeks to hold electric retail marketplaces to the same liability standards applied to brick and mortar retrailers he says, amazon is taking bold steps to wipe out competitors by promoting hard to comply with legislation that only they can afford to absorb their goal is to be the only place to buy things online since covid through marketplaces like etsy Small Businesses struggling now more than ever will bear the brunt of the overbearing burdens of ab 3262 that seeks to hold retail marketplaces to the same liability standards applied to brick and mortar retailers something you imagine is not good for etty. No. And i think josh raises a lot of good points. Basically that this was an antiamazon bill they didnt want obviously california didnt want amazon dumping cheap stuff. It could be difficult for amazon to make the rules too hard so etsy wouldnt be able to vet all the items sold tonight i have to bring this in. I thought josh understands the wolf in sheeps clothing is no protection bill. Amazon better distance itself from it if they want to be a good actor what a great thing if they did that they are you cant do this to the Small Business person. Thats who is on etsy and shop if i and theyre struggling the most in this country, not amazon it would be the first law to hold online retailers liable for defective products it would be forging a new area which california often does. Yeah. Uber and lyft can tell you about the California Law theyve been very important to a very big business. We continue to see Consumer Discretionary and Information Technology continue to support the market at large with most of the other sectors down s p is up almost five points ckft arecord today ba aer bak what happens when 2 Million People switch to Xfinity Mobile . Well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile. Call, click or visit a store today. Dow is down 50 breadth is mostly negative today. You can see what facebook, tfare, amazon and nelix e all up back in a moment lets get to jim and stop trading. A company hasnt done as well as others. Dra day you can do it virtual. You do it that way and youre the right place to be during a pandemic stock is up 7. I think it goes higher a few names off of their Early Morning highs along with shopify and 3 m. I cannot wait for tonights shows. All those stocks are potential movers all of them. Wow thats a lineup right there. Thank you, guys and then. Very nice do you think we mentioned earlier jackson hole and we heard frommester george this morning saying she sees more deflation aspects than inflation. I dont suppose you think that conversation is going to flip in 24 hours no, but i look for science to help us. Not the fed. Theyve done their job lets get science in science how about congress we dont seem to hear about much of them. I gave up on them i gave up on congress. I need science because secretary mnuchin, theyre trying to do something too late they failed. Now we have to rely on science there are a lot of people not doing well a lot of Small Businesses that rely on congress for some sort of relief. I gave up on them we need something but were not getting it from washington were not. Im sorry. Yeah. Meadows, his chief of staff is talking to politico think and said he had his staff reach out to the speaker to try to resume talks on stimulus but does not have high hopes. Maybe that sentiment is more widespread than we think i think thats true i dont have any high hopes either not anymore. Not anymore. Jim, well see you tonight. Thank you very much mad money, great show tonight coming up at 6 00 eastern time good wednesday morning welcome to squawk on the street. Im Carl Quintanilla with david faber and leslie picker. Alltime highs at the open as we anticipate what the chairman may say tomorrow at jackson hole hurricane laura in focus a lot of megacap lift doing the heavy lifting. Ulta, lowes, urban up almost 20 . Thats even off the Early Morning highs. Bright spots in retail. S p shares of sales force surging on earnings. Plus as hurricane laura bears down on the gulf coast, well talk with the ceo of bhp about the impact on the region and the oil sector and the College Opening and covid whats being done to keep the students, professors and staff safe all right we mentioned some of the retail movers today a lot of that is being driven not surprisingly by how much theyve been able to leverage ecommerce growth in the case of ticks, comps up 20. Thats more than double the estimate ecommerce nearly tripling so investors once again Rewarding Companies who found a way to do that ecommerce is interesting its accelerated for companies that may not have seen as much ecommerce interest previously now in the pandemic thats come into focus its also a picture of investors looking at numbers and saying it could have been worse. Urban outfitters, every analyst expected the company to lose money. They posted a surprise profit. Thats something that people were not expecting it wasnt priced into the stock. That said, net sales were still down 16. 5 for that company. Its not like theyre not struggling its just that the market had priced in worse numbers than they were seeing yeah. Its funny this leads me, though, to sales force which has benefitted enormously from the need for so many of these kinds of companies to fully digitize their operations when it comes to their communications and dealings with their customer i mean, if you are somehow not there, as a retailer, for example, then you suffer and nordstrom is a case in point, but look at the move in sales force today. Thats staggering. Adding, i dont know what it is at this point. 40 plus billion in market value just this morning. It is now a almost 240 million market Value Company this is on top of modest gains yesterday when we learned it was going to be added to the dow but the numbers, 29 top line growth which outpaced most of the analysts who followed the company and right on down from there. And the outlook all just sending that stock skyward in a way i dont recall ever having seen. No, david people are retweeting a report you gave in may of 2015. Is this going to ring a bell that microsoft and sales force had talks in the spring about a purchase of salesforce by microsoft and the graphic has salesforce at 73. Yeah. Amazing. I do recall that thats funny you saw that. I have not, but i do recall. And they had the talks then there was a period, of course, you may recall when salesforce was interested in buying twitter its one reason why benioff, i think wont talk to me, but they decided not to and they got a significant pushback from their own Shareholder Base listen, they had keith block in there as coceo. He departed the company. Theres always been questions as to whether to a certain extent they were going to have to digest acquisitions. Like a number of companies that we continue to focus on during this period j they have benefitted enormously from this acceleration of digitizing thats taken place across the board in Corporate America and that skael the big six retailers have seen record growth youve got walmart, amazon, home depot, target, lowes and costco you look at the picture of what you can do with scale during a pandemic and juxtapose that during a company thats smaller and trying to figure it out and theres a clear gap of have and have notes in the retail space yeah. Speaking of which, its a great topic to bring in our next guest on chairman and ceo of Charter Holdings ray washburn is with us. Also the former ceo of the overseas private investment corporation. Ray, its good to see you. Thank you for the time today thank you for having me its an interesting time with the ppp money running out the end of the day what the destruction is going on in the Restaurant Business. And youve been consistent saying august would be a month of reckoning what are you seeing now that were getting into months end well, the original ppp program is set up as an eightweek program the government shuts down beginning march 14th landlords which im also a landlord with many Shopping Centers and restaurants as ten na na tenants. We deferred rent and abated rent now we got to the end of the ppp money, really it served as the Unemployment Office for the government to pay rent, utilities, but they didnt give us any money to pay for i. T. Or bolding the you see the restaurants in streets and things all that capital cost had to come out of the owners pocket Balance Sheets of the small restaurant are toasted youll see in the next 60 to 90 days another 10 to 20,000 restaurants shut in the country. Is there anything that looser restrictions of the state can change or is this a function of consumers choosing not to go in this case government policy forced Creative Destruction in a rapid rate on us i was listening to your piece on ecommerce no one really speaks what its done to the Restaurant Business and whats coming. Right now you heard of ghost kitchens the next big term thats come out is called the host kitchen you go to a chiles or applebees and come up with a new brand. Chiles came out with a wings concept. For the small guy that doesnt have the ability to have i. T. Or seating where its limited, a 40seat restaurant, if you seat outside, its fine, but as soon as the cold weather comes, this rolls over this fall when the cold weather hits, the small guy, especially in the northeast and colder areas, how do they survive . So ray, what needs to happen then if you say 10,000 to 20,000 restaurants shut their days in the next 60 to 90 days, thats not much time to turn things around is there anything you recommend that either the government do or the restaurants do to try and kind of buck that trend . Well, look, 16,000 restaurants have shut during so far during the pandemic and thats with them getting ppp money. The money when it came in as accountants will tell you, it came in as revenue to a restaurant bounced up against your expenses. We looked at it when we got it, and i think a lot of members of congress intended it to be a grant or forgivable loan, not a taxable event. If you have your restaurant above break even, youve gotten back to about 70 3k9 of sales. If youre not there by the first of august, i dont know how youll get there at all. Congress could address taking the ppp money and turning it into a nontaxable event for recipients ill speak for the Restaurant Industry thats one thats some stimulus that will immediately come in to the survivor restaurants to t to the ones that have shut down, i dont know what to say this is a classic case of wall street versus main street. The small main street restaurant, how do you survive in the new economy youre going to see big chains like kroger hooking up with facebook and doing delivery out of their kroger kitchen and amazon buying the grub hubs of the world and taking over that were getting rolled and what can we do about it . I dont know we need to get open. I know that. Im not going to speak to the health and medical aspects of all of it. But that 50 occupancy with outdoor seating, everyone is able to crawl through this as soon as the weather changes and were inside, its came up but you as the landlord, how lenient can you be with your tenants during a time like this . Its now six months into the pandemic how much can you withstand in terms of leniency for the people who pay you rent lets look at the small mom and pop restaurant we went to them in march, april, may, and gave them half rent or rent abated into 2021. How is their Balance Sheet going to look next year . They have 15 or 16 months of rent to pay in a 12month period this is going to drag for several years. As a landlord, im taking on the liabilities of things like utilities, property taxes, snuns. Theyre not paying those things. If we get into later this year and people continue to ask for rent abatements, and then they fail, then ive eaten months and months of utility costs. As a landlord, its tough. If a landlord if a tenant will work and do things like outdoor seating and delivery and be creative, ive had some stick their head in the sand and say i wish it was march 1st. The world has changed. Youve had six months to try to ie just to it. And what do you do for a tenant with limited seating and you no longer have the seating . One thing that happened across the country is liquor sales to go, being able to make margaritas and sell them off premise. Thats helped. There are Little Things but i dont know i dont have an answer for it. Ray, its david correct me if im long youre levered as well, arent you . Youve got debt. Id assume its not that big a margin youve got to give to your tenants how does this play out if it continues . Are wegoing to see more bankruptcies across the board . Oh, yeah, especially in the triple net space, being if you own a one off California Pizza Kitchen Free Standing building in a parking lot of a mall and they take bankruptcy, that keys back to the lender restaurants make up to 10 or 20 of your space, some of them will survive and youll get through. Your margin is gone. And the ppp money, it came in your Balance Sheet as revenue, but you had no profit margin in it all the expenses from january and february people are going to pay in march and april through the spring, that wasnt covered by the ppp from a landlord standpoint, we didnt get any ppp money as a landlord were having to fight the fight every day. Interest rates would help if the tide goes out and rates pop up, 100 or 200 basis points, i dont see survival are you able to cover your lenders . Are you able to cover your Interest Payments at this point . Oh, yeah. Were not heavily leveraged as all. One thing coming out of this last since 2008, it was in the old days of 120 type loans. Lenders are sticky on 60 to 65 max ltv on loans you have a long way to go before we get triggered the big public routes, i cant seek to them the run of the Mill Shopping Center owner is not heavily leveraged typically. The banks didnt allow that this time not that we didnt try one last question airbnb today dwaif workers the option to work remotely until august of next year. And i wonder if the picture on apparel is going to change any time either. On apparel . Oh, yeah we have stores like lululemon and things their sales are off the charts our high end retailers are doing extremely well the middle part of the gaps of the world like in dallas where i live, i mean, gap is closing every store in our market is what the real estate people are telling us except for one store for returns. Apparel, the high end i think is going to do okay and the bottom. The middle rung, brooks brothers, thats a goner, all that but as we go through this fall, if we continue this conversation true and in 30 days when we get to september 1st rent payments youre going to see a huge falloff in restaurants landlords cant take it much longer because of the additional risk we take ray, we appreciate it nice dose of clarity ray washburn on retail and restaurants. We mentioned earlier the chief of staff mentioned this morning some potential eos to help airlines. For that we turn to phil this morning. Carl, look at the Airline Stocks you might have taken this news and said well, is this good news for Airline Investors . Is it good news for the airlines i just talked with sara nelson who is the president of the association of flight attenda s attendants they will take the biggest hit when the job cuts come on october 1st. And theyre not terribly crazy about the idea of the Trump Administration using an executive order in order to prevent airline layoffs. Why not . Because the idea is that perhaps the executive order would be requiring treasury to make some amount of money, say 25 billion available to the airlines to borrow in order to pay employees and keep them on the payroll well, thats not a terribly appealing idea here. What the flight attendants would like and many of the Airline Unions would like is a clean cares act extension. An all new one that would prevent any cutoffs in jobs until the end of march so thats why youre not seeing much of a reaction here from the Airline Stocks the democrats, the republicans and the white house, they all agree they want to do something to help the flight attendants, the pilots, everybody. The question is can they do it in the cares act which would require a stimulus package an executive order may not be much of an incentive for the unions to be crazy about the idea interesting phil, thank you for that color appreciate it. When we come back, were going to get a sense as to commodity demand around the world, mike henry will join us with that. [narrator] at Southern New Hampshire university, were committed to making college more accessible by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. 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. Expect anything different . The big events are back and xfinity is your home for the return of live sports. The dpufl of mexico is bracing for impact from hurricane laura forcing some of the producers in that region to shut down. Joining me now is mike henry, the ceo of bhp, one of the Worlds Largest Resource Companies. Were going to talk Business Impact from the storm, covid and outlook from him on the Global Economic recovery underway by the way, mike, appreciate you joining us for what is your first u. S. Interview since you became ceo at the beginning of the year thank you for being with us . Thanks for having me. Lets start with the storm. Its front and center right now. No you have a couple of i believe neptune platforms in the gulf whats the plan there . We have operations in the gulf of mexico first focus in a situation like this is safety production is shut down. Weve been focussed on getting people off the platform, everyone is safe at this point well ride out the storms and then get people remobilized and production back up and running and the barrels flowing. Whats your expectation in terms of i mean, obviously its weather its hard to predict do you have an expectation given previous events as to how long it will take for you to get back up and running . Currently looking toward the back end of this week, but it does depend on the path of the storms, how long you last for. This is unfortunately a regular a regular feature of operating in the gulf of mexico. Its not unusual were well practiced in it well keep an eye on the weather systems. All right lets take it from the weather to the Global Economy. Obviously as one of the Worlds Largest Resource Companies you have a view in terms of demand around the world china a very important market for you. Is china coming back and the rest of the world lagging . So china has been well and truly coming back. Were seeing a solid vshaped recovery we see that in the demand for our products but we see through for demand to our customers products and its looking solid. Lots of momentum we look at the rest of the world and were seeing a pick up starting to see a pick up in demand in some of the worlds other economies. Youre starting to see demand in some of the other worlds economies. I think you previously said it was going to be not just even bumpy but perhaps things are going to be down year over year. Is that still your prediction . Still the prediction. Were expecting theres going to be a sharp contraction in the Global Economy over this calendar year. We then expect there to be a sharp up tick again next year. We foresee it taking about a year for the world to get back to the levels of Economic Activity that exited precovid and maybe two or three years for the world to get back to the track it would have been on if not for covid19 so two or three years before we get back to what we would have seen from 2019 to 2020 without covid i think well be back to 2019 levels within a year but to get back to the point that the Global Economy would have been at or would have grown to if not for covid, we expect it will take two or three years. And what about china . It is rebounding more of a vshape. Is it going to lead in that way in terms of that recovery youre talking about so get back to where it might have been sooner than the rest of the world probably, yes so we see there being real momentum there the government has stepped in with some stimulus that we expect is going to create further momentum through to next calendar year. So things are looking pretty positive and pretty resilient there. Mike, prior to the pandemic we spent a lot of time on our network starting to talk about the impact of esg. Given the assets that were continuing to move into this overlay of strategy when it came to asset allocation. A company like yours would seemingly be in the cross hairs of some investors given how much stuff youre taking out of the ground what are you doing at this Company Since you took over to try to change its power, so to speak, that you could become more, perhaps, appealing to those who look for companies that are doing well when it comes to the environment obviously social and governance an important issue here. This is front and center for bhp. And we are building on strong foundations. So weve shown real leadership in this space over time. Now, specifically on the matter of Climate Change this is something that we have multiple decades of action and leadership around just in the past year alone weve announced a pretty major shift in the operations in chile, thats where we have a couple or a few big copper mines. Well move to fully Renewable Power there. And well be taking further actions in australia ill have an announcement around some new commitments in terms of reducing our operational mission, scope one pane two. Weve said as a company were targeting being net zero but we have to make that tangible ill come out with a target for where well get to by 2030 on path to the outcome. Ill announce tangible actions related to scope 3 emissions to enable the value chain and ill also talk about an updated assessment of how bhp portfolio fares in align with the paris agreement. And overall, one of the things that ive been explaining to investors and other stake holders is that action on Climate Change is a good thing for bhp. At the end of the day, bhp depends on a growing world economy. That will be made more resilient through action on Climate Change and, in fact, bhp provides many of the products that are needed to help decarbonize the world. What are some of the when you say that, i mean, youre talking about a wholesale change in the complexion of the company, obviously taking place over 30 years. Nonetheless, mike, i mean, how do you transform a company like yours . Its not just as simple as shutting down coal operations, is it . It isnt. Probably a couple of things to say on this. One, bhp is 135 years old. Over that time, one of the things that weve done remarkably well as a company is reinvent ourselves on the back of the things playing around us. Today bhp is one of the biggest providers of nickel. Thats used in batteries for electric vehicles. Were one of the biggest world producers of copper which goes into supporting the electrify kags trend theres parts of bhps portfolio which are resilient to longterm trends and other commodities, we think theres solid demand for some time and were a great steward of the assets. Were committed to doing this better than anybody else, and then over time well build up more options in the commodities the world is going to need more of in the future finally, mike, just back to the current pandemic, unfortunately, which continues around the world certainly here in the u. S how are you dealing with it when it comes to things like a mine, enforcing social distancing. Has it had an impact on your aenlt to produce it could have had a much larger impact if not for the way our people have stepped up some of the measures we put in place are increased social distancing, of course, and that includes in the transport to and from the mine. We have strict hygiene policies in place weve taken steps to protect at risk workers and weve sought to protect our communities and support our suppliers in the bhp business. All of that coming together allowed us to record a strong year in our last Financial Year operationally. So production records, in fact, in a number of our operations, and well be seeking to continue those safe, reliable operations this year. Does it stay the same i mean after the pandemic, after theres a vaccine, do continue with the current work conditions the challenge is through to that point where theres a vaccine, making sure we do that and all signs are positive on that front right now but, of course, we want to take the learnings weve had through covid once were through the pandemic, make sure we embed the earnings to accelerate on our improvement drive. Appreciate you taking time with us. Thank you. Thank you very much mike henry, the ceo of bhp. Back to you guys time now for our etf spotlight. Looking at the ticker igv currently trading over 4 higher salesforce is the top component with the 9 weighting. Surging on better than expected Quarterly Results ahead of salesforce being added to the dow effective monday were going to take a quick mmci bak stay with us 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 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 listing prospect us, palantir says some companies throw people at the problem. Others build dashboards. We build Software Platforms that become part of the institutions we serve the word customer appeared a whopping 836 times the ceo minced no words in his opening letter saying that despite being founded in silicone velocialley, they dony on advertising he knows the projects with National Defense and intelligence agencies have been controversial while other companies that engage in what he believes to be invasion of privacy are common place they are moving their Head Quarters to denver and doing a direct listing meaning the price skroefr process will take place during the debut investors commended the top line growth, nearly 50 higher during the First Six Months esg is a headline risk palantir is issuing a class f stock to three founders, giving them a variable number of votes to control as much as 49. 9999 of the voting power even if they sell some of their holdings. Just shy of that 50 control but theyre also issuing Class B Shares which command ten votes per share for other venture backers. Class a shares the general public can buy command one vote per share. Thats a lot of nines six nines yeah. A lot of nines its also going to be a lockup on a certain percentage of shares thats going to be an interesting part of this deal as well yeah. Thats something weve seen with the two other prominent direct listings weve had so far. Shopify and excuse me spotify and slack. I misspoke yes youre right the lockup aspect is interesting. I dont know if thats a reflection on palantirs concern about too many insiders selling on day one or if they looked at previous iterations of direct listings and said we can do it better this time by locking up more insiders on day one to prevent them from selling. So far they dont disclose how many shares are subject to that lockup at this time. But its certainly an interesting iteration for the direct listing model for something thats criticized as a key risk that too many insiders will offload the shares on day one and that could cause the stock to maybe not perform over the long run as they may have otherwise liked it to do so. I think its interesting, especially as you read this investor letter, the letter at the top of the prospectus, its surprising especially as you look at the performance of other Technology Companies as you look at the performance of software companies, normally youd go on a road show and market to investors and say were doing what theyre doing and look at the market multiple youve prescribed to them and theyre doing the opposite its going to be an interesting discussion when the issue happens how the valuation works. Does it center around a Software Type model or a consulting type model which is obviously much different . Great piece in the times looking at that. And also something i didnt realize. The name palantir is a nod to qualify the lord of the rings and the sphere objects use to see middle earth thats their pitch, were going to allow you to see the world in its complexity in simpler ways not a lord of the rings fan, carl absolutely. I love it. I just was not aware of the world. No, i actually have not read the books, but no, its an interesting and very thoughtful title for or name of the company and kind of gets to this ethos of the founders and effectively what they set out with this company. Lets get a news update with sue. Good morning, carl. Good morning, everybody. Heres whats happening at this hour in Wisconsin Police and the fbi are investigating shootings overnight that killed two people and injured another. They happened during the third night of protests against the Police Shooting of jacob blake in new jersey gyms will be allowed to reopen next tuesday safety requirements include a 25 capacity limit, and the logging of names and phone numbers of workers and clients to assist in tracing efforts next years big summit in davos has now been postponed the World Economic forum says the major gathering of business and political leaders will happen early next summer and flash floods have killed at least 72 people in afghanistan. Rescuers are looking for survivors amidst the remains of 300 destroyed homes. You are up to date llees the news update i s you next hour squawk on the street is back in a minute. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. 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 were all awaiting the chairs speech tomorrow at jackson hole steve caught up with us. Lets get to steve good morning. Yeah the jackson hole summit will take place virtually this year let me try to make it real yesterday. The host from kansas city, she was asked about the concern for a double dip recession i think thats an important risk to that outlook is thinking about what happens as we come into the fall, whether we see any resurgence in the virus that would cause additional pullback in the economy so well monitor that carefully to see whether that plays out. What it requires of the fed in terms of adjustments to policy, i think we really have to wait and see. Open to doing more if they need to. They are hometown to Agricultural Companies shes looking for how much damage remains after the virus passes i think even at the point we resolve the health issue affecting the economy today, what we cant yet know until the dust settles is what has been the impact of the economy longer term i think theres a lot yet for us to learn in terms of how we think about calibrating policy in the months ahead. George added shes not a fan as some have suggested about letting inflation run hot. Thats something chair powell may talk about at 9 00 a. M well bring you live coverage of the speak providing details about the longterm strategy including whether to move to an average inflation targeting regime and thats just a bit of what we have for you full coverage where we make the Virtual Summit real with interviews of phillip lane, the bank of ireland, now the ecb governing council, Patrick Harker from philadelphia and leslie i cant really see that screen youre looking at right now. Im impressed you recited that since its a busy week for you. We appreciate you bringing us the rare comments frommest ester george before we go to break, take a look at the top performers on the s p. Salesforce and hpe leading the way. Stay witush pnc bank believes that if you can check on henry when youre miles from home. Your bank should help you check on your account to see whats free to spend. Henry. Virtual wallet® is so much more than a checking account. Easily see whats free to spend. And put money aside for your next big purchase. Like a trainer for henry. Stop it. Carl, do you have those figures . Yeah. Henry sit . Its carl. Virtual wallet® for Digital Banking from pnc. Its time to get more from your bank. The dow is changing the stripes. Our traders share which stocks should be included and the names to cut loose find out an trading nation more squawk on the street is coming up. So youre a Small Business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Mo der know is out with results of a small trial of older patients for that well get to meg. Hey, carl moderna giving an update at the cdcs meeting focussed on covid19 vaccines. Moderna and pfizer presenting data this morning there. The update included new information on older adults phase one vaccine trial. This is important. There have been questions about whether these will work as well for older people who dont always have as strong an immune response the data showed theres about 20 patients over the age of 56. They found that the immune response was similar in older participants as in the younger ones that wed already seen, those ages 18 to 55. They say the vaccine appeared to be generally safe and well toll tra rated including in the older pop yuttle the stock already moving higher this morning on this update as investors in the vaccine space were closely listening to this and minutes ago the new data came out moderna is in the middle of enrolling the 30,000 phase three trial. Thats the one that gives us information on how well this vaccine works against covid19 some promising early results in that older population that is so important because theyre so vulnerable to severity of cc yeah, meg conceivably the first population that would receive a vaccine as you indicate although, again, its 20 people. Only ten of them really considered older i mean, very, very small when is moderna expected to actually complete enrollment of the 30,000 its looking for for the phase three trial . Thats a great question they provided an update on friday saying theyd enrolled more than 13,000 of the 30,000 they began it july 27th. Its not expected to be a linear pace of enrollment because theyre bringing on more trial sites. It could pick up within the next few weeks to month we should see that trial getting fully enrolled, and then it will depend on the places where the people are, how quickly we see the data. About how well this vaccine protects them. We should get updates from moderna every friday thats nice on learning how fast the trial enrolls. Meg, quick, people asking this morning why would the cdc revise the guidelines on those getting tested but not expressing symptoms . Yeah. There is a lot of concern about that that im seeing from experts in the field because we know that theres so much asymptomatic infection with covid19 so people dont feel sick, but they can still be contagious some folks saying 40 of covid19 infections are asymptomatic not clear exactly that most experts agree that is a good change in terms of testing guidelines and weve been hearing the pushback from an admiral overseeing testing for the Trump Administration saying we need strategic testing called shotgun testing of everybody but theres a lot of disagreement about that in the health care community. Meg, thank you for that nice summation of what moderna told us. As we watch the s p hang an to modest gains powerful 5g experience for america. Its 5g ultra wideband, and its already available in parts of select cities. Like los angeles and in new york city. And its rolling out in cities around the country. With massive capacity, its like an eight lane highway compared to a two lane dirt road. 25x faster than todays 4g networks. In fact, its the fastest 5g in the world. From the network more people rely on. This is 5g built right. Only on verizon. 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. Welcome back to squawk on the street. A quiet start for markets today with the exception of a few big tech outperformers as you can see were helping the s p hold onto gains. Were at session highs new records. Taking a look across the sectors behind me, we find that utilities and real estate are among the laggards down about a percent Interest Rates have risen and some of the rotation out of more Interest Rate sensitive sectors among the only three negative for the month of august. Keep an eye on you announcer realtime Exchange Sector is sponsored by voters in key battleground states are starting to feel more optimistic about the u. S. Economy. Eamon javers explains in our latest states of play survey yeah, david, thats right were starting to see a bump here in President Trump in terms of his Approval Rating all related to economy and covid take a look at the swing state views on the economy and job market what you see on the right hand side of this chart is a little tickup late summer tickup here 41 and 40 respectively in terms of optimism on the economy and jobs that is an encouraging sign if youre running for president of the United States in a reelection effort as for the president s handling of the economy, 51 approve, 49 disapprove whether the president is helping your own individual pocketbook, similar picture there, 51 approve, 49 disapprove. So the president is above water on those issues. But, on who would do a better job handling covids economic impact, 49 say joe biden and the democrats, 51 say the trump and the republicans would do a better job there so, the president having an edge here across the board, carl, but what we see when we look at the swing states themselves, joe biden still has an edge in each of the swing states that were looking at, six different states, which could control the fate of this election. Biden is ahead narrowly in all six of those at this point so the question is, can the president capture this little bump, maybe translate that through the convention and start to take a lead in some of those swing states as well back over to you thats a good curtain raiser for our next discussion. Thank you. Connecticut state treasurer is responsible for overseeing 60 billion in investments and joins us this morning. Mr. Treasurer, also good to talk to you good morning. Good morning. Great to be back with you. Yeah. You heard eamon talk about that poll bump for the president. You got markets at all time highs. Housing is on fire durable goods are coming in double the estimates is the case for further stimulus in Congress Starting to fray no, no. I dont believe the case is starting to fray by any means. I think you know as well as anyone that the Financial Markets and the real economy are two very different things. And so when we look at the ups and downs of the stock market, were not really seeing, you know, in my state we still have significant unemployment, we still have Small Businesses suffering. So very much so we need an additional stimulus to keep this going. And the markets themselves, even if were going to talk about the Financial Markets, have relied so heavily on the federal stimulus thats already been provided and i believe its baked into kind of future outlook in the market, continued support by the federal government and if that breaks down, i think were going to see a corresponding breakdown in our Financial Markets again. How are legislatures and the public supposed to prioritize between u. S. P. S. And enhanced unemployment, city aid, state aid, school aid, all of these pipelines of need . Which comes first . Well, i think its a false choice we have to do multiple things simultaneously if were going to were in the midst of the a pandemic that is a health pandemic, which led us into an economic recession and we have to address multiple things at once and so, yes, financial package through congress, yes, we need to address the postal service. That impacts our health care, that impacts our economy, that impacts our upcoming election and democracy itself. And youve also been focussed on the issue of social justice and racial inequality in particular, writing recently an op ed in the hartford current, state treasurer overseeing more than 60 billion, youre well aware of capital in america, we want to live and we need you to get off the sidelines. So what are you calling on Corporate America to do . Im calling on Corporate America, you know, in my role i have a front seat to wall street and Corporate America. And were in the midst of a National Reckoning once again around race. And Corporate America holds a unique place in our society and position of influence. Im calling on ceos to use that influence in a constructive way to impact both i call it the mirror and the window. Looking inward on how to do things differently within their own organizations as well as how they can deploy the intellectual and Financial Resources towards addressing racial economic disparities in society importantly, i would note on that, theres a study by mckenzie consulting that says if we close racial economic disparities by 2028, we could increase Gross Domestic Product in this country by 4 to 6 percentage points. I think thats pretty compelling evidence that not only is this the right thing to do but if youre interested, like i am, in growing our economy and our country, we should all jump in and do it. And youve, on that front, youve dedicated more focus to allocating more funds to diverse managers what have you found in terms of why historically diverse managers havent had the same kind of access to capital that nondiverse managers have had and do you believe that setting kind of a guide post for increasing exposure to diverse managers is the best way to kind of narrow that gap for access to capital . Yeah. I think access to capital has been one of the major issues, whether its in the investment Money Management area, or if youre a Business Owner trying to Access Capital for diverse owners its been a challenge. And i think we have a history of systemic and Structural Racism in our country that we have to contend with when i say that, im not focussed on the individualized acts of racism or prejudice, but its how the systems have worked to disadvantage certain groups so, what were doing here at the treasury in connecticut is saying, you know, when i look at investment opportunities, i want a diverse portfolio generally. Types of asset classes, types of managers, sectors of the economy, thats how you build a strong robust portfolio thats built for all weather conditions, so to speak. With respect to managers of color and emerging managers, we have had a program in place thats had some success. What im doing is enhancing that, learning from the best practices across the country, including our own experiences, increasing the amount of capital thats allocated, and looking at a greater range of investment opportunities. In doing so, i will increase the ability to maximize risk adjusted returns for connecticut beneficiaries. Thats my goal as a fiduciary. Always good to touch base with you, mr. Treasurer. Look forward to next time. Appreciate it very much, shawn woond, the connecticut state treasurer joining us this morning. Good morning its 9 00 a. M. At headquarters in denver, colorado. 11 00 a. M. On wall street and squawk alley is live