Transcripts For CNBC Closing Bell 20240712

Consumer sentiment levels rising slightly there are some signs momentum is faltering. Corporate america making big layoffs. Underlying the wall street main street divide. 59 minutes left in the trading week s p 500 set for its sixth Straight Record closing high 7th day in a row of gains and 5th week in a row of gains coming up in a few minutes. Were going to speak with James Bullard about this weeks major fed policy shift the strength of this recovery, washington stimulus stalemate and much more. A bold call on energy, we will speak with a strategist who says now is the time to buy the sector continues to lag far behind the Broader Market, despite todays pop. Lets get straight to this resilient market, the s p 500 looking to close out its 7th straight day of gains, the dow turning positive for the year. Mike san tolly tracking all that action resilient, relentless, persistent, this uptrend, the s p 500 clicks the 3500. So essentially bumping up against that thats your High Water Mark into today for this move. Pretty hard to asail the trend itself the fact that youve had this persistence and through a lot of potential hurdles through the course of july and august, its continued higher one thing people are looking at is, if you wanted to draw a trend line for this rally that weve had, its pretty much running up against the upper rail, and were getting stretched to the point where just a routine type pull back, one that would come along as a matter of course at some point is going to seem like something jarring. If you went down 10 as a correction from here, youre not as low as we were july 1st july and august racked up the games. I wanted to take a look at some of the areas of most highest energy within the growth areas of the market. Theres clearly a bid for anything that seems new, disruptive, the next thing this is the s p 500 against the ipo etf which has been a big winner all year. This is the dow jones internet, kind of a fang type etf, and the crown software, theyre up, it looks like the same chart, more or less, you see this massive gap to the overall market. Thats where a lot of the pizzazz has been in this rally unclear if were going to start to have those cool off in favor of Something Else, look at apple and tesla, this is back tote date when apple announced its 4 for 1 stock split. 32 . Tesla, 38 they both go into effect on monday, to whatever degree its been about the split i understand theres a new Retail Energy in this market a lot of excitement around these areas, but this sort of shows you, its a different character of a market right now, where we have this emotional attachment to certain stocks and this selffulfilling prophecy on the upside historically, stock splits have been good for 5, 8, 10 if you look at the whole class of stocks that are split. Theyre ahead of the game, lets say that, guys im not going to be glass half empty im going to try to find something. If you look at volume, volatility, you look at narrow participation. Is there anything that raises flags about this market . You can definitely poke some holes in the breadth of the market, at least you have been able to. You have to make a distinction, though most of the gains mathematically, theyre already so big the majority of stocks are already going in the right direction. Volume, im not that concerned with mostly. On rallies, there have been less volume than on declines for years know i think its much more about whether we have win streaks and just because the luck runs out sometimes. And i do wonder if in fact you front loaded a lot of decent news, with the july august rallies and sentiment getting a little bit ahead of itself those are the things im watching right now its difficult to say today is the day when theyre going to matter. Mike, thank you see you in a bit stocks continue to climb here, we have seen major red flags for workers, in the form of a number of significant layoff announcements mgm and cocacola announcing thousands of employees will be laid off, brought out or separated from the company we saw Major Airlines warn of layoffs coming, even Digital Economy winners that have performed very well, like salesforce they will be laying off 1,000 people im going to dive deeper into coke, this announcement, this reorganization is not driven by the pandemic it sped up these changes that were in the works of cocacola to on leaner and to be more efficient. What is coke announcing . 17 Business Units will go down to 9 under four geographies. 4,000 people will be eligible for layoffs and packages if may not be that much, thats a significant chunk. It represents about 35 of the north american workforce, and does not include international staff, which will be affected likely as well remember, coke did see its biggest sales decline in decades last quarter alaska half the business comes away from home. Restaurants, bars, stadiums. Quincy told me this morning, i think covid will pass, this is about setting ourselves up for a long term future he maintains something hes been talking about throughout the quarter, april was the trough, and volumes do continue to steadily improve the intersection between the degree of lockdowns and the degree of stimulus will be the short term macro drivers for the company. The Company Overall he says is in great shape, and this announcement today is an effort to focus on the winning brands expect more innovation around the winners. Like atopochico for instance, and other brands to go away, like adwalla juice using covid and the pandemic as a chance to reset, it has a harsh way of showing these companies what really works and which one of their brands really resonate and which do not. Thats why its speeding up a lot of these structural changes at companies, its not a cyclical job cut, but something thats been in the works that happened quickly its got to be maddening for people who arent in the markets. Stocks moving higher, despite a pandemic, and companies laying off, despite their stocks doing really well, sara, youre alice watching coal gate today yeah, another stock thats been doing very well lately. Theres been a lot of interesting buzz and chatter around colgate in particular, speculation about around activist entering this space colgate has been a relative winner here of covid19, the 13 f filings came out last week and necessary ing peltz came out with three new positions that were unnamed he has an expertise in consumer packaged goods, especially household items. Remember, peltz is on the board of Procter Gamble, and the new proxy renominates him to the board, it would be unethical for him to take a position in colgate, a direct competitor, its not the way that nelson peltz or tryon operates. While the company isnt giving me any comment, hes not giving me any comment very unlikely that nelson peltz has built a position in a direct competitor to Procter Gamble colgate. Im going to do a deep dive into colgate and why its lagged some of its pigger competitors. At 6 00 p. M. Tonight, were going to dig into the high flying stocks of 2020 and figure out some of the bull bear case after the break, on closing bell, st. Louis fed president James Bullard telling us that unemployment could be as low as 7 by year end well see if hes going to stick by that call and get his thoughts on jobs and recovery youre watching closing bell here on cnbc right now, the worst place to be is stuck inbetween. Accelerate your investments or pull back . Change the plan or stay the course . Thats why Northern Trust is here. With specialized expertise. A history of success through every economic climate. And proven strategies rooted in data and analytics. Giving you more control. Clarity. And confidence. For now and whatevers next Northern Trust wealth management. 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. Welcome back the major average is moving higher today, dow and s p 500 at session highs, following yesterdays fed announcement that it would shift average inning nation targeting in an effort to support the labor market and broader economy lets send it over to Steve Liesman who joins us with st. Louis fed president James Bullard. Steve . John, thank you and welcome, jim, to the virtual jackson hole summit which is how were doing everything these days thanks for joining us. Happy to be here. Let me start off with the thing that john was talking about, you released the average inflation targeting change yesterday. Which we all expected in september. So im wondering, is that it for september . Or should we be sitting here bracing for Something Else an actual policy move for the fed come next month . Ill have to wait for the september meeting, and were in the middle of a crisis here, lots of data can come in and well play our cards at that point and make a decision there. I think the chair did a good thing here by using the jackson hole summit to announce the closing of the framework review. This has been going on for 18 months, we did intend to close it earlier this year, con the do it because of the pandemic makes a lot of sense, he was able toe give a fairly long speech explaining the complainings that had been made, i thought it came off pretty well let me get your sense of how that might work in practice. When we talk about letting inflation run above 2 , or averages out to 2 over time, whats your tolerance for inflation to run, 2, 2 1 2, 3 yeah, inflation is right below target, by a half a for quite a while, so it seems like you could run above a half a percent for quite a while. The idea is to cement Inflation Expectations at the 2 target. You really want that credibility all the time, thats a key aspect of central banking. I think that this lower bound or this zero lower bound is kind of dragging average inflation down over time. That certainly happened in japan, its happened in europe we dont want that to happen here, we want to be sure that we cement Inflation Expectations at 2 by actually hitting 2 on average over time. I want to return to the current state of the economy, lets talk about what youre seeing right now we had the resurgence of the virus. Are you seeing a knock on effect in terms of the effective return of the economy i think were continuing to expand here. This will be one of the best quarters ever for Economic Growth in the u. S. Makes perfect sense, youre coming off the very negative Second Quarter i think youre getting the disease under better and better control every day. Businesses are learning how to adapt and how to get their Revenue Streams back up to where they were. Some businesses are actually doing better obviously, some are hit very hard youd expect that kind of un even reaction to the crisis across the industrial sector soy think well grow rapidly here in the Third Quarter. Some tracking forecasts are 25 in an annual rate or higher. I think youll continue to grow in the Fourth Quarter and First Quarter, i think were in the recovery phase here. The recession was only two months, even though it was very sharp. How critical to your outlook and that very optimistic view, i dont know if its optimistic, but its a good one, a good view, how critical to the outlook is an additional fiscal package . Do you think thats needed and if if you dont get it, is that something the fed has to offset yeah, i dont know whats going to happen on that, but i will say this. Macro forecasts right now, a lot of wall street are projecting National Income will be down about 5 in 2020 compared to what it was in 2019. And if you look at the c. A. R. E. S. Act and the other bills that were passed earlier this year, they amount to at least 10 of gdp some people would say 14 of gdp. It depends a little bit on how you count these things there are quite a bit of resources in the pipeline already. A lot of that has been saved by households, because i think some households cant spend on the same kinds of things they would have spent on previously and then you have the executive order, whatever you think about the executive orders helping out on the Unemployment Insurance and elsewhere. Its not clear to me that the incentives are quite as strong as they appeared to be a couple weeks ago, for both sides to come to a deal may not see that, but on the other hand there are plenty of resources out there. Good to have you back on the show hi, sara. At what point do you need to slow down qe, including the purchases of Corporate Bonds how are you thinking about that . Yeah, i think you know, im with the chair here, were not even thinking about raising rates and i think weve got a good policy in place right now, i just continue this policy. I dont really think this is about Monetary Policy, this is about the virus and the economy adapting to the virus, the Risk Management around the virus. And the contagion that would otherwise occur. I think our Monetary Policy is just right for this situation. And were going to have a low policy rate, were going to stay low for a long time. Markets expect us to stay low for a long time. Were encouraging market functioning through the purchases through the 133 programs that we have, our liquidity measures are looking very good. Were staying out of financial crisis you dont want to be in a financial crisis on top of the pandemic so far, weve avoided is that. All of that is looking very good its steady as she goes. Quite the opposite. Record highs every day here. What about the permanent damage . We just reported on some of the layoff announcements, even from Strong Companies that are doing well, like a salesforce, nike, cocacola. Taking this opportunity to reset their businesses and announce more structural layoffs. How are you thinking about how much damage is going to be done permanently that will not come back when we have a vaccine and when the economy snaps back . Well, im worried about it like everyone else but i also think that, you know, you have a big disruption like this, you should expect businesses to be reexamining their models, positioning themselves for the future. And im not surprised that you get a big rethink in some of these industries, even Successful Companies want to rethink where they are and how theyre going to position themselves goingforward i wouldnt say all of that is bad news, necessarily, obviously, youre the person thats laid off, thats bad news if youre thinking about, how can you keep the firm competitive goingforward. That part could be good. Its john fort im thinking a lot about Small Business these days we talked about Small Business as the engine of the economy and as i look at the markets as i look at this recovery, it sure seems like large businesses, especially the larger Public Companies are performing better. Are you satisfied with the way Small Business has been participate i participating or left out of the recovery thus far. I think this is very hard on Small Businesses many of them are innovative, bigger companies, if they have hard driving sorts of managements, they can adopt simple measures, i think thats whats so impressive about the Second Quarter, you look at someone like walmart, able to adopt really simple personal protective equipment, mask wearing, other kinds of safety features and run their business and have a great quarter, if youre a very Small Business, you may not be able to adapt fast enough, your customers may be afraid of coming into your store. I think theyve born the brunt here they also have fiscal package through ppp and other programs that are trying to reach out and help them. And so hopefully they can copy the things that the essential industries did during the Second Quarter, and adopt those approaches to their business, and get their revenue straight to the point where they get past this crisis. Jim, just a final question here, if i know you, youre sitting there thinking, where is the bubble question . Well, look out, because here it comes. Youve said youre going to be easier on inflation or more tolerant of higher inflation youre not thinking about thinking about it, the chairman is not thinking about thinking about thinking about raising Interest Rates why is that not a massive green light for people to go out and not just buy good stocks, but buy any stocks and you create asset bubbles through this fed policy, that create danger and Systemic Risk to the economy well, one of the things we did in the framework review, if you read through the new document, it has more reference to Financial Stability and i think all members to some degree are concerned about this issue and want to be vigilant on this issue some more than others. But i think i was pretty happy with the way this came out, we were able to get a little stronger statement on the idea that we do worry about asset price bubbles. We are aware that the 2001 recession, and the 2007 to 2009 Global Financial crisis bursting asset bubbles, and we do want to guard against that goingforward. I would also say that, you know, look at somewhere like japan, which has had low Interest Rates for a long time, they havent had this same issue of creating a bubble this is something were going to have to watch carefully goingforward. Sounds like the weather, jim, everybody complains about it, but nobody ever does anything about it appreciate your time thanks a lot, have a good weekend. And thank you, Steve Liesman for bringing that to us as well. And now, with about 35 minutes before the bell, the dow is up around 220 points, its right about 100 points in the last hour s p 500 also near session highs up more than half a up next, its been a wild 48 hours of news surrounding the future of tiktok well bring you up to speed with tiktok on where that stands now. Plus, what tiktoks brand new interim chief says about the players in the running for a deal or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Tools, cattle, grain, traded goods. Even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Surprise entry into the deal talks, lets bring in Julia Boorstin who has been following this story pointing to the strength of oracles Data Infrastructure Business Security and privacy platform as well as the strength in the cloud, heres what she told me about potential singer byes with walmart on the heels that its joining microsofts bid. Walmart is certainly interesting. For us, weve been focused recently on rolling out some e commerce features, weve been providing that for our creative community. Its something this week alone, we actually launched live shopable e commerce links, so, you know, i think theres a lot of different synergies there pappas saying theyre confident tiktok will survive the governments threat to shut it down. Theyre preparing a contingency plan for their employees should a deal not happen. Sara. I feel like theres going to be a lot of behind the scenes deal talks this weekend, julia certainly i think the next step sara the next step would be to find out who theyre negotiating with exclusively, so well be listening for that got it. Julia boorstin, thank you. From abbotts new rapid test, we have a lot of ground to cover this week, with dr. Scott gottlieb his latest take on all the covid developments is ahead. A quick check on bonds for you. What we have seen amid all of this buying in stocks, bonds have been a little bit of pressure broadly, overall, for the week, on a better sentiment. Session highs up 232 the number of new reported coronavirus cases yesterday topping 40,000, rising for the fourth straight day. There are almost 5. 9 million coronavirus cases in the u. S. , while deaths have topped 182,000. Several u. S. States will not be following the revised testing plans after the agency said this week, people who have been exposed to the virus but arent showing symptoms may not need to get tested florida, new york, texas are among states that plan to continue testing asymptomatic people japan is hoping to line up vaccines hoping to still hold the olympics next august heres whats happening at this hour. Wisconsins Governor Tony Evers has called a special session of the state senate on monday to address a package of Police Reform measures. Meanwhile, blake is no longer handcuffed to his hospital bed according to his attorney. Blake had been restrained due to an arrest warrant from july, despite being paralyzed from the waste down in texas, three people have died and four are hospitalized for suspected Carbon Monoxide poisoning. They were seeking shelter from hurricane laura. And reportedly were using a generator indoors. And the big 10 may begin playing football as soon as thanksgiving weekend the Associated Press reporting teams and medical personnel are working on multiple plans. You are up to date, thats the news update this hour. With about 27 minutes before the bell, here is where we stand. The dow is up, around 233 points near session highs s p 500 same story up 2 3 of a . Thes th nasdaq is lagging them,t still up a half a the Energy Sector has sharply underperformed the Broader Market all year long we will speak to a strategist who says, now is the time to buy energy names hes going to explain why when closing bell comes right back. [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. When their growing family meant growing expenses, our agents helped make saving on insurance easy usaa. What youre made of, were made for. Usaa apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com japanese stocks weaker, the japanese yen much sharper on the news that shinzo abe his departure raises questions about the future of abenomics. Who will the successor be in his party. I would say one of the biggest highlights of abenomics has been that weaker yen. It lost a quarter of its value, which is humongous for its currency, since he took over in 2012 most people expect a continuation through his party energy, the worst performing sector this year still down 40 our next guest says, now that exxon has been booted out of the dow, maybe time to buy David Rosenberg is here from rosenberg research, he joins us by phone this caught my attention, i know youre always a contrarcontrarii have not seen anyone step out and say, buy Energy Stocks do you really think that exxon being booted from the dow is a buy signal youre just left with chev n chevron. Its really emfwlem attic of the lopsided nature of the stock market here you have energy with all the warts and pimples and scars, and talk about driving electric cars to perpendicular tuty and no one wants to touch fossil fuels, in the final analysis, i think you want to scale into an industry that accounts for 10 of the profit pie. That is thats a gap thats going to have to be bridged. I would say that its almost, if theres any sector right there, i would say outside of financials, almost like a preoption right now. Why financials, and would you be a buyer there even with your david moore pessimistic view in the recovery of this economy i think thats always a risk, if you are going to have your toes in the risk pool. Im concerned about the economy. In so far most of my clients are in the equity market, they want to know where they should be invested. Energy right now, the representation market capwise is ridiculous the financials, its a similar story. The financials in the past year, have accounted for call it 25 of the profit pie. And here they represent 10 of the market cap its really the antithesis of technolo technology, thats all people want to talk about is technology, and i get it, these are great companies, with great Balance Sheets and great products at the same time, technology companies, when youre looking at concentration risk, they account for 30 of the market cap, but only 20 of the profits. Ultimately, its the profits youre paying for as an asset manager, i say this, look, what the fed did yesterday, i think an overt attempt to steepen the yield curve now that the Growth Stocks are doing just great, lets try to promote the value proposition. And the financial stocks you steepen the yield curve, you generate this temporary period of higher bond yields. The financials are a place to be, and theyre cheap. Were talking about energy, im looking at this tweet of yours, you say if you want to sign a speculative fervor, look at tesla its up 4 x since then in a way, is this call on energy saying enough already on tesla saying its time to go back to basics i would say that if youre paying attention to the fundamentals youre really lost. Im not going to talk about specific companies, im not licensed to, you know the whole list of concept, stocks and the ones that surged the most. Theres a lot of assumptions behind those valuations, lets just say, that what is really benefiting the whole growth theme, you would say tesla is part of that, we are in the most pronounced liquidity bubble of all time we have basically nobodys talked about, when you interview the fed officials, what does it mean to have mt growth in the past year up 24 what does it mean to have m 1 growth do you know that in the 1970s, were always so critical of burns and miller, we never once ran money supply greater than 14 . Were at 24 right now its so far beyond the real economy, its going into the financial economy. Whats been absorbing it are these concept, very whippy great story Growth Stocks. My concern isnt just valuations, theres way too much counsel ing trace risk in the industry right now thats what i would say, i dont think youll be penalized for gravitating toward the things that have been ignored and are trading at historically relative speaking. Extremely attractive valuations right now. Its a bold call and a sharp criticism thats been bulletproof lately after the break, draft kings gets benched pc sales pop, details on those stories and more, when we take you inside the market zone and as a reminder, you can always watch or listen to us live on the go on the cnbc app. Hike 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. 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. We have 15 minutes left in the trading day. Commercial free coverage of all the action going into the close. Mike santoli to break down the crucial moments of the trading day. Today we have lindsay bell here as well. Welcome back, lindsay, well kick it off with the Broader Market stocks. S p 500 and the nasdaq both on track for record closes again today. The dow is on track to close higher year to date for the First Time Since february. With only one more trading day of the month closing low only four days this month, hitting an all time intraday high. Lindsay. Are you on board would you buy, is it too late . Have you missed out on some of these gains . Its been an unusual august, ill say, thats for certain august is one of the weaker months, september is usually the weakest month of the year for the s p 500, maybe its setting us up for a recalibration in the month of september we do have the rubber going to meet the road as we get into the month of september, of course we have the stimulus debate that is on going or maybe its a stalemate, i should call it right now. Waiting to see what happens, main street and the consumers really hanging on to hopes there. I think wall street is too were going to have the budget debate at the end of september its going to be conference season, were going to hear from a lot of companies about how business has continued to unfold through the month of august and september. We heard from some of the retailers that the consumer may have pulled back a little bit in the month of august, as we wait for an additional stimulus check. We just heard David Rosenberg kind of poke holes in this market, talking about now participation, maybe over emphasis on tech stocks. People are taking a look at their portfolios over the weekend and thinking about adjustments or protections, or worst Case Scenarios the market is always going to give you reasons to focus on the imperfections. There are plenty of them right now. I think most of them are the fact that the trend has been so strong and the market has basically not taken a breath, its not established any kind of sideways landing areas, where you may say in a bull back its going to settle around. Its a technical issue i think you can definitely question whether the market has pulled forward a lot of good news at this point but the things that really matter direction ali are going in the right direction, i would say earnings forecast have curled higher. They support the idea that were in a rapid recovery mode the Federal Reserve is not going to see any of these scares coming out of the fed the way we saw even in 2013 after that revival of the markets when they sort of hinted that they may change the Balance Sheet i think that you have to give the benefit of the doubt to the market right here while acknowledging its a little bit stretched by every measure you can call it a meltup, people are going to start to call it a meltup, it is it very low volume and you have definitely a little bit of pay back. I dont think of these conditions as being, okay, now, the market has to back off right away further well tend to get skinned away probably before all that long. Thats the way to think about an over bought market we also spoke to James Bullard just moments ago he said Interest Rates will stay low for a long time. And weighed in on the state of the u. S. Economy i think well grow rapidly in the Third Quarter. And then i think youll continue to grow in the Fourth Quarter or the First Quarter. I think were in the recovery phase, the recession was only two months, even though it was really sharp so mike, when you hear that, a lot of it is, what we took from what the fed had to say, what should investors be thinking about i think thats the math the math is, theres going to be this massive spring back higher in the current quarter, thats what all the tracking indicators will tell you. The big question is not going to be so much, do you have this rapid comeback, whats the ceiling level were settling at. You have massive pool of unemployed and underemployed workers. Consumer spending in travel. Those things are going to start to matter to the market as opposed to, were going to regain some of the shock losses that we had for a while. I think the brief portion of this session makes it that much more difficult to call i dont think you can expect the same kind of purge process you see in a lot of other recessions, thats why the stock market has been emboldened to look ahead to the better times the boom we see in the Third Quarter can be extended. Now that the market has risen so far, what does that mean for earnings estimates ive been keeping my eye on 2021 everyone knows 2021 is a year thats going to be terrible. By looking out to 2020 were looking at about 163 on the s p 500, that gets us back to about even, if not a little better than 2019 levels. That is a quick recovery, and it dove tails in nicely with what bullard had told you guys. I think thats what the market is focusing on the fact that we havent seen estimates come down. The reopening story is going to continue its going to get better with hopefully the expectation for a vaccine andstimulus to support the consumer near term by the way, the way i think about the consumer too, theyre actually being put into a better position the last couple months. Given the increase in income thanks mostly in part to the stimulus checks. Theyve paid down their debt Consumer Debt has decreased for the First Time Since 2014 in the Second Quarter theyre entering the second half of this year in a solid position guys, wanted to hit the gaming stocks. Theyre sinking today, were talking about draft kings. After some analyst action, turns out both of them got downgraded to equal weight from morgan stanley. Pointing to a number of upcoming risks, the upcoming nfl season, stimulus bill. Environmentaler, the draft kings ceo joined cnbc discussed the companys outlook amid the pandemic and recent nba players protests, listen. Its been a strange year. I won the have guessed there would be seasons in jeopardy, that would have nothing to do with covid in the end, it doesnt matter, were focuses on building for the long term. Draft kings has been one of the market darlings, lately, but also on a day like today, you can see so volatile, so sensitive to headline risk, when sports are going to be opening where does that leave the stock right now . Thats not made next week, dont get made up down the road. Draft kings has benefited in terms of its valuation, which is very rich from this excitement over this entire category. Tesla was one. They get run up because people love what they represent i think you have to, at some point ask exactly how ripe that opportunity is for draft kings, their average revenue peruser is 50 a month or better. How many people really are we looking at that can pull into that pull. Thats draft kings tape, thats not how much they bet, right there are questions about how great this Business Model is going to be down the road. Even if Sports Betting becomes a much bigger deal i look at this and think, societal risk. Upheaval risk. One of the many risks that the market has largely been shoving off, and were seeing it impact these stocks related to sports is there a broader story here. Should investors not be shrugging off the societal risk of the people . Its a really good question, i think it is something that indevelopers should take into consideration. Especially when you see stocks like this that have run as fast and furious as they have its something to take into consideration. There doesnt seem to be much left in the tank perhaps for these stocks goingforward a lot of what mike said has been priced into the stocks about what the future holds for them the opportunity really lies within m a really having strong Balance Sheets and expanding into other opportunities like for instance Penn National finally opening their bar stool Sports Betting app. There are opportunities but there are less available now yeah, and meanwhile, on the other side of the coin, shares of dell and hp up today the companies see a continued shift to work from home and learn from home trends rbc raising its price target to a street high of 80 a share with high demand comes shortages. We did have more backlog than we would have liked. Both in the First Quarter and the Second Quarter, you know, i suspect there will still be some supply challenges, there is a lot of learn from home and work from home demand and were still ramping up to deal with it, lead times are in pretty good shape with some exceptions should we be thinking about pull forward in demand for q 4, when people buy some of these things not just pcs, but thats an example. Or is this around entirely new world where these things are impossible to forecast its a valid concern, but i also think what you have to think about that may offset it not only the delay and deliveries for a lot of these products because of some of the components theyre having a hard time getting, but also people are more and more companies are having their work forces stay at home, work from home the end of the year. The closer we get through september, you may hear more of that happening too thats going to benefit a lot of folks i worked with, hadnt ordered that extra monitor or laptop they need at home to help them with their work from home situation. I think these companies at least in the near term could still benefit. Weve got a little bit more than two minutes left of trade dows up 200 off the highs what are you seeing in the market internals theyre strong, con 23ir78ing the story, the headline index is Near Stock Exchange volume is pretty solidly on the advancing side, you see there its about 4 to 1. Positive to negative voel youll at this point. Its been that way all day not overwhelming a lot of concern as weve been discussing about the narrowness of the market. This is the s p 500, in the white. And orange is the s p 500 equal weighted, theyre both going in the right direction. The headline s p is outperforming by a half a percentage point if you look on the year to date, its a pretty good distance from a record high. Unlike the headline index. Now its given way, as you can see, back under 23 still consistent with a markets that moving higher theres still a bid for protection in the months ahead now as the clock ticks down to the market close. And 4ks 00, keeping our eye on the major averages, the dow losing a little bit of steam into the close might not close up 200 points. It was up 230 some the s p 500 also off a little bit from the highs, but not significantly up almost a the nasdaq almost neck and neck percentagewise as we look at various sectors, Consumer Services has been a strong performer today with that, we have the closing bell, the end of a week. What a week it has been. Markets keep moving higher, sara theyve gone up every day this week, if youre looking at the s p 500, its been a tremendous week for the bulls. Welcome back if you are just joining us, im sara eisen, here with john fort whos here today. Take a look at how we finished up the day on wall street. New record highs for the s p and nasdaq the dow, going positive on the year, finishing up a half a a little steam into the close. Higher by 161 points there on the dow. The dow closing out another record high. All groups are high for the week, except for utilities the nasdaq closing up 6 10 of 1 at a new all time high, it was technology that powered this rally today. You did see strength in groups like financials which were the third best performing group this week playing a little catchup here, and joining in on the party. Still negative on the year, now we have the dow, the s p 500 and the nasdaq all in positive territory for the year lindsay bell is here from allied invest we have a. J. Oden joining the conversation were going to talk to dr. Scott gottlieb later in the hour about that new abbott test first, mike, ill turn to you on another very strong week for stocks to round out, coming up on the best august for the dow since 1984, which raises the question, what does september bring. It brings up those questions, sara when a market is strong in a month like august, is typically weak when it does not conform to what the seasonal or almanac expectations were, tells you there is some kind of an underlying strength to it. When you have these long streaks like weve had, yes, theres give back in the short term, youre looking further out, it usually happens in the midst of a broader uptrend. Its not necessarily that these runs culminate with these moves. Ive been saying it all week, all the indicators are, youre getting a little bit stretched, seeing a little bit of over confidence the problem is, the big investors have been felt underutilized, that seems to be why theres a steady reallocation bid would not be surprised if you have some give back, and maybe its going to be turbulent in september. Nothing the market has told us this week, would necessarily say that its overly vulnerable to Something Real nasty on the down side a. J. , im hearing that from mike san tolly, were a couple months away from an election, and theres all kinds of risk tied up with that. What should investors do looking ahead to those things . I think, you know, the it sector right now, was obviously had a lot of large gains over the last few months. Its here to stay. Im a little concerned about airlines as well as restaurants, and some of the hotels you know, i think as we move into the next few months with the election theres a lot of volatility ahead of us, even with the it sector as well theres uncertainty with Foreign Policy and taxes its a good thing, to hold tight a little bit, and find a new entry point try to figure out what will happen on november third. What is the risk around the election specifically for investors, is it is it not having an immediate result is it a biden democrat sweep what do you think of that . What are you telling your clients . It has a lot to do with Foreign Policy, right . We just got news back from jackson hole and the fed equities are the is the asset class to be in right now, a lot of it has to do with some of the risk, not necessarily knowing what sectors are going to be affected by depending on which candidate is in office, so im not a political commentator, but what i can say is, were going to have to let the market dictate what the sentiment is as we get closer to election day. Youre going to see a lot of volatility, thats what happens when we come into an Election Year i think the best thing to do is sit tight, stay to your strategic levels and wait to see how things pan out as we get closer to election day lindsay, youre still with us were thinking about a change of seasons as we get out of august, into september, not just in terms of kids going back to school, at least on a computer, if not physically, but also weather changes, which means Something Different in this pandemic is that something youre looking at with particular classes of stocks, in particular sectors, something investors should be thinking about as well . I do think its something for me that i look at from a Broader Market perspective, you want to continue to watch the coronavirus case numbers that come out and hopefully we dont see a major spike going into the fall with children returning to school and colleges reopening. Weve already seen some headlines there. Any time you get a news head lining about a vac seen or treatment, the market is going to react positively to that. Thats been able to supersede a spike in coronavirus cases its something we need to keep an eye on goingforward. That and stimulus are probably the two largest threats to the market and the economy goingforward. When it starts getting cold and you cant do as many things outside, i wonder what impact that will ave. The dows price weighted what matters here is how much prices are going up, and how much they contribute to the point gains in the dow thats how you figure out whats going on since we went positive, theres the dow industrials, the porn thing is apple is the big contributor, theyve contributed 1400 points to the dow gains that weve seen so far this year far away, second place, home depot followed by micro soviet and visa this is how much these stocks have contributed to points gains in the dow boeing has lost almost as many points for the do you have as apple has gained 1,000 points lower, due to the fact that j pmorgan is in there. As for the apple stock split, we all know on a fundamental level, none of this really matters. Theres a lot of option activity around this, the bottom line, people seem to feel like the 80s and 90s, this is a vote of confidence in the Company Overall, even though fundamentally, it doesnt matter guys, back to you. Bob, thank you. Its been an amazing journ nerks so the dow is now up a half a percent year to date the s p 500 is up 8 1 2 small caps are down 5 or 6 for the year does that mean you should be going there to play catchup . It all depends on what you think about the reopening story. The problem with the small caps has been their debt burden theyre much more highly levered than the large cap companies, and may not have as much access to the debt markets as the Larger Companies have. I think its one thing to take into consideration i think some exposure could make sense because when we do get that Game Changing catalyst of a vaccine or massive stimulus. This could be the sector that does pop very quickly, and you dont want to miss it. I think i remember you saying something about waiting for a better entry point when do you expect is that are you talking about seeing Election Results when does some of the volatility ease up and make these markets, these stocks worth another look. I think its going to be a couple things, right if we think about the Election Results as well as a potential for a second wave of coronavirus. Weve seen cases increase in europe, france, italy, them looking at potential lockdowns, i think theyre going to be a couple things that come into play with the election, as well as increased potential for a second wave of coronavirus i think as we get closer to the election well have an idea of the differentials between the two candidates youll see a little less voel untilty in the fall, and that may make for a good entry point. Anywhere from 30 days out. Its a little too soon i think to make that entry point right now. Thanks for joining us lindsay bell, thanks to you as well were going to leave the conversation there earlier on cnbc. Abbott speaking out about their new Game Changing coronavirus test were going to talk about the impact that could have trying to reopen this economy. Next on closing bell now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Continued momentum on testing, treatment and vaccines. Feeling the optimism, earlier abbott labs ceo talked to cnbc about a new rabid test we are working on developing data for asymptomatic claims, were running our clinical trial, and well eventually have data to support that, in the meantime, we see it, being able to be deployed, because it doesnt require an instrument like you stated. To be able to deploy whether its through the federal government, the state governments, through schools, through employers, or even through retail clinics we think thats a great opportunity to be able to line up this volume, through retail, retail drive through, retail clinics, and to be able to deploy the tests that way. Joining us now, dr. Scott gottlieb on the boards of pfizer and alumina. This was encouraging news. I know youve been calling for these fast cheap antigen tests for a while. Why can they only be use d in certain circumstances. They can be used more widely, they dont require a lot of Sophisticated Technology you can deploy them into a setting. You need a medical technician to deploy the test. But you can push it into a school and have a school nurse administer it, or have a nurse administer it in a workplace i think its going to get more wide use its not proved for routine screening of an asymptomatic population, i suspect its going to be used that way right out of the gate the sensitivity will go down as a screening tool but given the High Sensitivity of the test in asymptomatic population, you would expect it to be a good tool for those purposes especially given the price point and ease of use. You have to give abbott credit for manufacturing and coming to market with substantial manufacturing. I think the only question is, how much of the existing runs of this product have the federal government cornered. We know that stepped in with a big contract to purchase 150 million of these its not clear to me how much is going to be available for the private supply chains. And how much is going to be cornered by the federal government, which is obviously an important use theres going to be other people who want to get their hands on this you mentioned the sensitivity and we showed the specificity numbers as well. I guess that points to the accuracy level the concern with these cheap fast tests that dont require labs was always the accuracy levels and whether we could trust the data coming out of them. How does this abbott test look to you and how Much Development have we seen on this front with these fast tests the sensitivity points to how likely is it to identify infection the specificity is high as well that speaks to, how likely is it to read out an appropriate result if you dont have coronavirus. How likely is it to say that you do, that relates to the specificity of the test. Thats high as well. Some of the other tests in the market have sensitivity of around 80 for a simple device and inexpensive device, this is pretty good. I would expect to see other approvals happening in short order. What happens in these kinds of approve ats typically, they come in waves, you saw the agency initially back in february start to approve in march, the pcr based platforms, that was one of the first waves they used in large labs then they approved the ones they use in doctors offices. Now they seem to be moving on to the point of care lateral flow tests. Knees paper based tests, i would expect to see other manufacturers who have had these tests in development to start to get their tests authorized as well obviously, abbott was the first. Theres going to be more supply coming into the market from other manufacturers stay with us, breaking news on at t from Julia Boorstin. At t is evaluating alternatives for direct tv at t shares up on this news now, about 2. 8 in after hours trading, we reached out to at t. This report says that while talks are in the early stages, that at t and goldman saks have been in discussions with buy outfirms for a potential deal. And apollo and Platinum Equity are potential bidders. This combs when theyre struggling with declined pay tv subscrib subscribers. At t has been under pressure from elliott to divest some of its investments. It looks like once again at t is looking for a deal with direct tv back over to you tough time to sell, but a good time to finance it. Thank you. I want to talk about tests, how far are we from a situation where we have tests in enough volume at a low enough price, and a quick enough turnaround with a result to really be able to give enough of them to get on planes, to go to school, with a sense of keeping this virus in check . I think were getting there, maybe another couple months you have to see a couple other manufacturers come on the market abbott will expand the label for this product there will be supply in the market after the federal government gets into the procurement. Youre going to see tests marketed directly to corn assumers, where consumers can test themselves at home, they seem to have been worked out from a regulatory standpoint the agency was concerned about testing themselves at home and not reporting results to a Public Health authority. They seem to have resolved that, i think youre going to see more tests available to consumers that they can use to test themselves at home youve seen the saliva based test where you can spit in a cup, send it back, and get a result in 24 48 hours. Were going to see testing being used as much more of a screening tool to be used as a gating factor for the kinds of things youre talking about in the workplace, in schools, getting on an airplane, i think thats a little bit of a longer way off. Having someone testing there as they get on airplanes. Maybe theyre going to do that for certain kinds of flights i think the significant applications are, i think were just about there, we have the technology to do that now. Thats really good news dr. Gottlieb, i wanted to ask you about vaccines theres a lot of political noise around the timing of the vaccine. Were also in in a pandemic, so we need one fast, obviously. The emergency use authorization, thats what weve seen for a lot of these treatments and these tests, where the fda fast tracks it to get it out there, if we see a vaccine approved in that fashion, where its an emergency use versus a full on fda approval is that a big difference in so far as Safety Standards . And would you take it if it was approved under emergency use and not fda approved at this point yes, the emergency use gives the agency a lot of flexibility. You can approve it on the basis that it may be effective if they use that with the vaccine. Im confident its going to be a high bar the reality is, theyre going to approve the vaccine or authorize it, initially. Its without a doubt that the initial availability of the vaccine will be under an emergency use authorization. It will be for very select populations. Health care workers or maybe patients in nursing homes, theyre going to require information to continue to be collected. Almost like a registry even in clinical development, we might have a randomized portion of a vaccine trial and we may have a very large registry under way, where youre vaccinating a lot of people. The initial authorization under emergency usme be that second part of the trial, if you will, where you give it to a lot of people, but you continue to protect Safety Information licensing, i think thats not until 2021 the initial application is going to be under an emergency use quite frankly, if the fda authorized it that way, i would feel confident using it personally, i dont think its going to be indicated for me, i think it will likely be indicated in higher risk settings thats a valuable distinction. Dr. Gottlieb, thank you. Thanks a lot. Up next, mike santoli takes a look at why the coronavirus fueled recession hasnt hurt wall street profits as badly as previous recessions. Tvs are great, but theyre heavy. If youre on the go, you can always watch or list ing to us live on the cnbc app with a happiness that died i let it get away servicenow. The smarter way to workflow. 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. Just wrapping up the best week for stocks in early july, it was record close after record close. Take a look at how corporate profits are faring during this recession, mike . Much better than at any other recession over the last 30 years. This is a chart from jim paulson. Shows the operating profit margin for s p 500 companies over the course of 30 years and circles the bottom in that measure. Heres where we ended up now, presuming the bottom was earlier this year, who knows how far, how long it will take to get back up to those highs it shows you theres a more resilient market base in this company. You have more of the indexes covered by these defensive names. That could be why the market was actually able to spring higher and did not ever get cheap the market is still aggressively valued right now, based on forward earnings, if you get back to last years earnings levels, by 2021, into 2022 it doesnt look quite so rich, guys thanks. Meanwhile, some news from facebook, Julia Boorstin has that julia . Mark zuckerberg facing criticism from facebook employees over the companys failure to pull down facebook posts ahead of the murders in wisconsin. Zuckerberg addressed why those posts werent removed sooner take a listen. There have been a bunch of media reports asking why this wasnt removed sooner, in this case, a bunch of people did report the page. The reason for this, it was largely an operational mistake facebook and zuckerberg have had on going struggles with the balance between the importance of free speech and the importance of pulling down incendiary content guys, back over to you its not the first time, obviously thats facebooks been criticized for Something Like this, is it having any meaningful impact on moral or an exodus from the company in any kind of noticeable way in terms of employees it doesnt seem to be you remember, we did have the whole advertising boycott, which was prompted around stop hate for profit, this idea of hate speech on facebook. This could fall into that category that advertising boycott did cause a lot of serious sayings to be had between facebook and the boycott organizers in terms of an excess of employees, there were a number that posted about their decision 20 leave in terms of whats happening right now, it seems like zuckerberg is trying to address those concerns the heat is on, this is a complicated issue, and facebook has to use a combination of people and algorithms to identify this hate speech. For sure. Julia, thank you congress meantime is dead looked on talks for more coronavirus stimulus up next, we will get the latest on how far apart the two sides are at this point. Whheitiletr wl take another month to reach a deal if at all. Some Companies Still have hr stuck between employees and their data. Entering data. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. The ipo rush looks to be continuing goodrx has filed for an ipo. They offer price comparisons and coupons for prescription drugs the filing showing that revenue grew 50 the companys biggest shareholder is silver lake with a 37 stake ipo. It will be listed under gdrx the time is right for these type of companies, with everything happens digital around our health. The race for the white house appears to be tightening but a lot of cfos believe joe biden will be winging. 75 of cfos, believe that joe biden will win the president ial election, really a drastic change from last quarter when the cfos were split down the middle they remain split on the congressional races, saying republicans will retain control of the senate and democrats retain the house the tenyear yield stands around. 72 . 35 of cfos so see those yields staying in the same range. 20 believe theyre going to go lower. The dow is now about 3 away from its all time high, more than a quarter say it will continue to rise until it hits 30,000 several say it will fall below 25,000 first back to you. Very true, frank. While we got you, i understand youre Teaching Summer School tonight. Were looking forward to that, its the kind of Summer School that people want to attend great lineup, frank, and others will be taking your questions on high flying stocks, financial planning, that is tonight, 6 00 p. M. Eastern i never went to Summer School, thankfully, this one i will go to the latest dated from predicted. Summer camp thats better except this year the gap between President Trump and joe biden at its narrowest level since june 8th for more, lets bring in ed mills. Good afternoon good to see you this seems like qualified good news for the president. As you do your own surveys of what to expect and whats going toe matter in this election, what do you see . Yeah, no, i think that we expect that this race is to tighten. We are a divided country we just came off of a a Republican National convention, kind of predicted is a good tool to tell you where things are and a snapshot in time but its not been a very good predictor of the future. And so what we saw this week was the president tried to make this election about a choice between his policies in in the potential policies of a biden administration, that is his best chance of changing the polling data here, if it continues to be a referendum on trump. I would expect polling data to show biden with a continued lead. What is your top question or concern that youre getting right now from your investor clients at Raymond James about the election it is all about what would happen in a potential biden administration, what would happen in a second term for a trump administration, what happens with fiscal support for the economy, and a real debate as to whether or not that knee jerk policy analysis of this is good or this is bad, is appropriate for this election and how you need to have a much more new answered conversation about d. C. s impact on the market lets talk about fiscal policy, ed, stay right there, we want to get to our own kayla tauci whos been looking at stimulus talks yesterday, negotiators spoke for the first time in two weeks, they made no progress. Nancy pelosi issued a terse statement after a brief 25 minute call with mark meadows. The statement said the administrations continued failure to help with funding levels that we know our nation needs. The president s willing to sign that today, and she said no, she said, its 2. 2 and when i ask her what made up the 2. 2 trillion figure, she says im not going to tell you thats not how a negotiation happens, thats certainly not how a compromise happens meadows suggested the president would sign is the 1. 3 trillion senate heals act. The house has passed a bill of its own. Now the two sides are moving even further apart pelosi has demanded a compromise of 2. 2 trillion, just to resume talks. Democrats say this is probably the last opportunity to get any soert of aide package before january. Wereth to fight for all or close to all orring in sara and john . Where does that leave us, kayla . Are there talks set to resume next week or everyones sticking to their positions which are trillions of dollars apart congress in its eng tirety, wont be back in session until mid september, anything can change before now and then there is the likelihood that talks for a future funding will dove tale with a september 30th deadline and there are a few things that could change the calculus here, if the economy significantly worsens. If unemployment ticks up, that could change the calculus, if the coronavirus worsens, if case counts, hospitalizations and deaths move up opinion that would change the calculus. If trumps poll numbers weaken in each of those scenarios, that would likely cause republicans to buckle and move their price tag up, because the white house is very aware they need voters to feel flush and financially stable going into the election, so they cast another vote for President Trump. What is in that extra 800, 900 billion . Its a grab bag, john, theres a lot of room to move some money around here, because there is so much room between what the democrats have already passes and what the republicans are now proposing in this slimmed down bill, or are considering month posing in this slimmed down bill. Some of the things they all agree on, expanded unemployment, a new ppp program, money for schools, testing and vaccines. Thats why the gop is saying, well put that in our skinny bill where they dont agree are things for funding for state and local government theres a lot in between, money for schools for food, for rental assistance, and for another round of stimulus checks which currently republicans are not backing. Ed, theres no pressure coming from the markets here in terms of that urgency that sometimes pushes congress into action, which happened last time when markets were in free fall as long as the Economic Data continues to show a healing, and the market continues to hit record highs are we going to get a stimulus bill here youre absolutely right what weve seen in the past, ive always told clients to watch how congress will react to the markets. But weve learned that game here in the markets, a lot of the normal catalysts out there are just not available in this, so we do look to that next deadline of the september 30th, were either headed toward a deal or a government shutdown. Juan h one thing that i think is interesting to note, september 29th is the date of the first president ial debate. Were headed toward a lot of volatility at the end of september, and kayla is spot on in a lot of her analysis there in terms of what is at play, what needs to get done, and how far each of these sides are apart right now. Mark, it seems to be playing chicken with all of that, not taking a lot of it into account. Thanks for joining us, ed and our own kayla tauschi. Wall streets going to look a bit different when you wake up monday were going to explain why and how it could impact your investments later. A firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from td ameritrade. Visit tdameritrade. Com learn welcome back time to get a cnbc news update request sue herera californias governor gavin newsom has Just Announced a new reopening plan that is slower than what the state tried earlier this summer. The new process also shifts more power back to the state and away from counties. In connecticut, a state of emergency has been declared following significant storm damage winds hit 92 Miles Per Hour in north haven, nearly 20,000 customers are without power. In louisiana, the Chemical Plant fire that spewed toxic smoke and road closures has been brought under control. Youre up to date, thats the news updates at this hour. Coming up, Impact Investing, our next guest is making a big push to helped under served communities with healthy food, dental services and more some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. The nation is once again royaled by protests and social unrest our next guests efforts have led to affordable housing, jobs and loans in lower income communities. Ron, good to see you so tell us how this works exactly, fixed income is a big part of this, fixed income isnt what it used to be no, its not, but a good portion of the barclays ag are in government guaranteed Mortgage Backed securities, agencies, treasuries, and what we try to do at rbc is to use a variety of government loan programs to serve as a proxy as that part of the ad, you not only provide a social benefit in supporting the capital into areas needed desperately. Youre making a better spread than you would be held generic nbs. You say that Institutional Investors are the bulk of who youre working with, are their ways for others to get involved. Sure. You know, the bulk of our investments have come from foundations, banks public funds, all of whom are trying to align investments, to get a good return but also, build their community. Individuals could do the same thing, we observe our product in two mutual funds, both of which have retail share classes. Whats the difference between Impact Investing and esg investing, which was all the rage before this pandemic hit. Esg focuses on how a company operates, and the processes that it uses whether it uses, whether its environmentally clean or good governance, et cetera impact focuses more on the output, the product of the company, and does that product actually contribute to society in some meaningful way, and so thats an Impact Investment is a more active process, its around finding excess returns because of companies solving an inefficiency or imbalance in society. And we think that those type of companies have survived better, better sustainability over the long term. How do you measure quality and performance. On the one hands, making money is the goal. On the other, you want to make sure you end up having the impact that youve been sold in the beginning, right. I agree, i think the sweet spot is when the social benefit helps create the excess return in that case, you definitely know youre having an impact in your benefit, because youre making a returning from it one example is, 30 of barclays zag is made in Mortgage Backed securities we found over time, this is a 20 year period including the meltdown, that loans to certain types of loans to low and moderate income borrowers, actually outperform generic nbs. Theres a case where supporting homeownership additional homeownership needed in their neighborhoods. And at the same time, if they direct their investments in that way, theyre likely to receive a better retirement if they bought generic nbs. Theres obviously a pretty sharp focus right now on race and racial inequalities in this country right now. Social unrest, is that a big theme for your investors, have you seen interest driven by that in particular . If so, what do you do to address that corporations, ones that are flush with cash, and cash is now close to zero. And secondly, they also have a growing interest to see how they can use their Balance Sheets, not only to produce product but also that excess liquidity were seeing a lot of interest on the part of corporations who are interests in finding ways that they can invest in communities that have been traditionally underserved as part of their diversity and inclusion. Also, its a way to help support those essential workers that are essential for those companies to continue to operate. Continue te an investment we recently made to foundations to issue bonds as a way to take advantage of a low Interest Rate environment but at the same time be able to increase their grand making to help communities most impacted by the covid19 pandemic you can combine both the environment and the use at the same time. Exactly, yeah, a different take on how to do exactly that thank you, ron homer rbc chief impact strategist. We are getting a news alert now on the apple epic fight. Josh lipton has it josh apple has now officially terminated epics App Store Account as it said it would. This means if you previously downloaded fortnite, then you can still access that game, but you will not be able to access new content from epic. We have a statement here from apple. They say, the Court Recommended that epic comply with the App Store Guidelines while their case moves forward guidelines theyve followed for the past decade until they created this situation epic has refused instead they repeatedly submit fortnite updates designed to violate the guidelines of the app store. Remember, a judge ruled this week in apples favor, saying apple did not have to restore fortnite to the app store. But in a reprieve to epic, that judge also said apple could not block its developer access, which epic says would have really hit and impacted its unreal engine business the first hearing in this case scheduled to take place in late september. Youve got to wonder how much of this epic can take. Unreal is saved for now, but epic has more going on than just fortnite and not a lot of other companies do i dont know if others can follow them in this battle with apple. Epic is in an interesting spot epics ceo tim sweeney, a billionaire himself, of course that is a company that recently raised a war chest of money, i think, now valued at Something Like 17 billion but this case is going to go on, listen, perhaps for years. I think whats interesting is how many also companies clearly feel at ease criticizing the app store, facebook, epic or match group. I think really the ultimate risk here, do lawmakers propose and pass new rules designed for our digital age that really force apple and others to rethink some of their business. Josh lipton, thank you. Still ahead, some major market shifts for nextee wk. I had saved up some money and then found the home of my dreams. But my home of my dreams needed some work sofi was the first lender that even offered a personal loan. I didnt even know that was an option. The personal loan let us renovate our Single Family house into a multiunit home. And i get to live in this Beautiful House with this beautiful kitchen and its all thanks to sofi. Its made for him a veteran who honorably served and its made for her shes serving now we also made usaa for military spouses and their kids become a member. Get an insurance quote today. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. 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Looking ahead to next week, the markets are going to look pretty different comemonthold mo monday morning salesforce replaces exxonmobil amgen will replace pfizer and honeywell replaces ratheon apple and tesla split perhaps making them more attainable to the average investor these are stocks that have really powered this coronavirus rally weve seen in the overall markets which is widening a bit. We saw really strong weeks for the stocks overall with the dow going positive ill be watching the jobs report on friday for august weve still got about a 13 million job hole that needs to be filled. There are some signs that hiring cooled off a bit in august with some of the flareups in covid19 and some of those hot spots. Jobless claims have remained persistently high. August is a month thats frequently hard to forecast because of these kind of big seasonal adjustments by the way, apple, the stock split is going to mean its exactly the same weight in the dow as ibm or thereabouts, basically middle of the pack salesforce and amgen will both be top five contributors to the dow. Right after salesforce had a week where it ran up 30 . Doing it in style. Thanks for having me. That does it for us. Fast money begins right now. I am Brian Sullivan in for melissa once again this is fast money. Your trader lineup tonight brian kelly, steve grasso, jeff mills and bonawyn eison. You might want to pump the brakes on two red hot gambling stocks plus, it is the end of an era with apple and tesla what to expect