hello, where ever you are watching i'm frank holland in for brian sullivan and here's how your money and the global markets are setting up their day it's the best since the 1980s. >> it's best performance in 36 years. it's up more than 7% for august holding at new record levels two stocks you'll want to watch today, you know them pretty well apple and tesla. both companies carry out a stock split. let's go worldwide right now julianna has more. >> great to see you. a strong start we have the french market up 1.1% the german market up .8% you don't see the ftse 100 up here the u.k. market is closed for a summer bank holiday. it's been a strong one as well but europe has been underperforming the u.s. coming into today, up 3.5% for the month. the dax lead the way higher up 5.8% coming into today it's been up about 1%. let's get a closer look at the dax. you can see how the majority of stocks are trading just a few exceptions trading below the flat line today. and nestle, the company in focus this morning announced it will be looking to buyoutstanding shares they're looking to buy the remaining 74% of the california based company as it looks to expand it's health sciences portfolio. and trading a little bit firmer this morning up 0.8% the outbreak hits a new milestone. >> good morning. >> the total number around the world surpassed 25 million it's according today at a from johns hopkins university covid 19 cases first surpassed 10 million in late june and reached 20 million a little more than six weeks later on august 10th the virus killed 845,000 people worldwide since it emerged late last year. more than 6 million reported and coronavirus cases in the midwest are still climbing. it's required a roughly 5% stake in each of the five leading japanese trading companies over the last year that is valued at roughly $6.25 billion. berkshire says it intends to hold the investments for the long-term. >> we appreciate it. stocks look to put a cap on the heels of the jackson hole symposium and the august jobs report is out on friday. dan, thanks for joining us. >> good morning. >> let's get right into it a lot of times we talk about the s&p being the proxy for the market we heard people talk about maybe the nasdaq should be what we look at to represent the market but you believe it's the russell 2000 that represents the recovery. >> it's the reopening of our economy benchmark because it's a very, very broad indicator stock. and there are no major heavyweights the way there are in the s&p and nasdaq. so it's still down almost 5.5% right there. what do you expect as people go back to work and maybe in some cases go back to school. >> as the economy accelerates we're starting to see it pick up and also you can not minimize what the federal reserve chair said they're committed to keeping interest rates low and liquidity in place which bodes well for higher inflation down the road small cap stocks do extremely well in that environment but the seeds are in place for that to happen you know, we see much brighter in all the indexes and especially the russell 2,000 benchmark. >> you know, dan, the market got a lot of strength from tech, consumer discretionary a lot of those names are in the russell 2000 as well do you see them continuing to have the same strength as we go forward? >> i do. i see it broadening out as the industrial and material space as well consumer discretionary as we mentioned did extremely well in the more recent period and others require people to spend more money we're ready to reopen the economy as the technology gets better we're either going to put this thing through vaccines and other therapy or we'll be able to co-exist with it much better which will have much less of an economic impact than it's had over the last several months. >> so are you saying the consumer is ready to reopen it or businesses? well, that's an unfortunate buy product. hopefully as time goes on those businesses will begin rehiring people that they were forced to lay off more recently. the last quarter was the worst it's going to be a strong quarter in the third quarter and let's hope that that continues. >> so you mention that comments are an encouraging sign for small caps and mid caps but what about the rising bond yields is that a sign that people might be ready to go back to saving as opposed to putting their money in the markets >> at .7% it's hardly a terrific place to put your money away into i think that you'll see higher interest rates and as that approves too but the banks underperformed this year. industrials have underperformed and it really doesn't tell the whole story of what is going on. a lot that have not moved is flatter down considerably for the year there is a lot of catching up to do >> all right thank you, united airlines scrapping a fee. plus china implementing new rules that could complicate a sale of tiktok to a company. one big reorder in business for nearly 75 years that almost threw in the towel very busy hour still ahead when worldwide exchangeetns rur ♪ ♪ even though fans can't attend this year's us open,... garlic. they're closer than ever to the action... at home. ♪ ♪ ibm watson is serving up game insights from millions of data points. and ibm cloud is helping deliver flexibility and security to reimagine the tournament on and off the court. now tennis fans have the advantage. ♪ ♪ ♪ if i could, baby i'd ♪ how can i, when you won't take it from me ♪ ♪ you can go your own way ♪ ♪ go your own way your wireless. your rules. only with xfinity mobile. welcome back time now for stocks to watch nestle saying despite the therapudics it doesn't own it offers the california based bio pharma at 2.6 billion i. also watching shares of united the airline announcing yesterday it will permanently scrap change fees for domestic flights. the move is likely a big bet by united that more flexible pollys will win over customers as other airlines struggle due to the continued impact of covid-19 american is planning to drop it's flying compass fireworapac than half. it's trimming it's operations during the industry's slowest period it will end service to 15 cities in early october still on deck, a lot more coming up including getting back on campus the exclusive new study on the push by colleges and universities to try to get back to normal. stay with us ♪ ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow. welcome back to worldwide exchange still a holiday week so it will be quite anyway. let's get a check on this morning's other top headlines. live in new york with the latest hey there, phillip. >> hey, good to see you. good morning the office of the director of national intelligence says it will no longer brief congress in person on foreign election interference it will instead have written finished intelligence projects they accuse the administration of trying to down play russian interference in the 2020 election portland is on high alert after a man was shot and killed during a protest on saturday night. it happened after hundreds of trump supporters drove into the city and clashed with counter protestors the victim was reportedly wearing a hat with a patriot player logo but it's unclear if the shooting is connected to the protests he doubled down despite urging the president not to visit it follows a week of turmoil of athe arrest and shooting of jacob blake. frank, back to you. >> phillip, thank you very much. we appreciate it turning now to a story about the american dream or what would have been. it's an l.a. based shop that dates back to the 1940s opened by a family of jewish world war ii survivors a group of long time employees, they pulled their money together and bought this store. then very unexpectedly covid hit and now the bakery is running in the red and raising money via a go fund me offering a closer look at how the fate of many businesses could end up as they struggle to survive the economic brunt of this pandemic >> can you give us a sense of how your business is doing and how do you survive during the covid-19 pandemic? >> business is not doing great and that's kind of what is going on with a lot of small businesses and we're trying our best to keep the lights on and to keep everything as it is. >> so you're not keeping everything as it is. talk a little bit about innovation >> yes, so the previous owner didn't do much innovation. they liked the old school method liked the old school wallpaper and the old school paint so one of the very first things that i did when i came on board is, you know, credit card machine. doing a website. something that every business should have in this century. allowing people to place orders online basic normal thing but to us it was just brand new never thought of ideas. >> can you explain what your bakery bakes and why you think it's so important to keep this business open. >> this is 100% a jewish bakery with the exact same recipes so we have the new york style cheesecake and a lot of our recipes have not changed in over 74 years and our clientele is jewish of course and the reason is these recipes a lot of people don't appreciate this. a lot of people have it and a lot of the newer generation may not have heard about this and maybe they haven't tried our new creamy cheesecake so there's a lot of culture to preserve and keep alive there's a lot of legacy. we're showing a little bit of video making everybody that's watching hungry. it looks delicious can you talk about the fact that while your products aren't changing it a bit, you have a lot of similarities. it's an immigrant family starting this bakery and now it's immigrants keeping it going. >> that's right. the original owners are immigran immigrants she was a holocaust survivor and she passed it to her son her son said it's time to retire last year and my father that worked at the bakery for over 25 years. he's an immigrant that came from mexico over more than 20 years ago and he started as a janitor cleaning up dishes cleaning up anything he can. and fromthere to manager and from manager now to co-owner of the bakery so the employees haven't changed. and it's our dream to keep it alive because we recognize the importance of preserving a legacy and history we don't want to see it lost just because of the pandemic. >> dreams are important but we have to deal with reality too. where are sales at right now and where are you expecting to be the rest of the year >> sales are not great we have amazing forecasts, we have 74 years of history to go back on. we were expecting great numbers. and the rug got pulled out from under us it destroyed everything we had in mind. >> sales down meaning 25, 50% -- >> i wish it was only 25%. i wish it was only 50% i want to say it was close to down 80% foot traffic became non-existent we supply to many restaurants. all types of bread to restaurants and restaurants had to close down. they had to switch from an indoor dining model to a take out only and a lot of people don't do take out or maybe it's too unaffordable maybe it's too expensive to take out every single day so a lot of people decided to go grocery shopping and that's it so that did effect us really hard. >> we have to let you get baking in a second but quick is there a lesson that people can learn from your business if they had a small business. >> it's important to reach out to the community our community has come out with their full on support. we have clients saying how can i help they're offering many things and reaching out to other restaurants and some are owners of a restaurant. like i'd like to carry some of your bagels. we have a go fund me and a lot of our customers came out to support us and help us keep the lights on and our next step after that is to make sure that we don't lay off any employees and keep them employed because being an employee before an owner i can see that it's important not to lay off anyone. a lot of people count on the bakeries for their livelihood. so it's important. >> thank you we'll let you go and get to baking >> still on deck, he breaks down the broader market implications that these moves may have. worldwide exchange is back in just a moment. good morning futures reporting to a higher august on the best august for stocks in more than three decades. a developing story tik tok denying it's in talks to share it's u.s. business to triller and berkshire hathaway has stakes in trading companies. you're watching worldwide exchange on cnbc >> thanks for joining us let's get right to the markets the dow looking look it's going to pop 71 points and the s&p up a little bit less. it's about 10 points >> it's been a great august. the best since the 1980s it's best performance in 36 years. it's olding at new levels. good morning again. >> i'm so glad that you didn't refer to me as big momma c contessa thank you for that. >> it appears that a covid-19 vaccine could get special exemptions from the customary testing protocols. the fda commissioner says he would consider granting emergency authorization for a covid-19 vaccine before phase three trials end but in an interview he said it would not be due to political pressure to fast track a vaccine. tik tok parent company byte dance says it will follow newly tightened laws on exporting technology that could make the sale of tiktok's u.s. operations harder. the company tells cnbc it's not in talks to celebrate it's u.s. business to rival video sharing app triller but triller's executive chairman said the bid was submitted. >> the other big corporate story of the morning, berkshire hathaway acquired a stake in each of the five japanese trading companies. becky joins us with the full story. good morning. >> good morning, frank i don't want to be big momma either but brian is going to be excited you called him big pop poppa. it was a 90th birthday present he gave himself. he announced he built up that stake. on his birthday he announced this he's not locked down into any habit for how he invests or thinking plenty of people are probably surprised that he is making this move into japan especially at a time that we know he had been selling some of his stakes in the u.s. financial companies including wells fargo which he held for years but built up the stake in the trading companies over the last 12 months. in the second quarter he sol 85.6 million shares of wells fargo cutting the investment in that company by about 25%. as for the japanese trading companies they are itoch itochu marubeni, mitt ssubis, h and mitsui and sumitomo. these trading companies are intermediaries between the banks and clients in japan they're huge con glglomerants t import everything and provide services to manufacturers there. berkshire bought these stake over a 12 month period and the company says it's investing for the long haul. berkshire may actually increase it's holdings to a maximum 9.9% in any of the five companies depending on price in the market but he pledged he will not make any purchases beyond that point unless he is specifically given approval by the companies boards of directors, if he is invited in to do it as he has had with some companies in the past berkshire pointed to his long history of massive investments in companies like coca-cola and american express and each of which it's owned for at least two decades and in some cases actually three decades this investment is a big one for berkshire. if you look at the 5% stake in each company it would be valued at about $6.25 billion and if you look at that as one big bet on japan that puts the bet on japan at the 7th largest holding based on the recent regulatory filings that we saw that show berkshire's holdings as of june. the largest holding is apple valued at $90 billion and by the way, that was another example of buffet shaking things up and surprising people. he long said he wouldn't invest in technology companies because he didn't understand them. he bought apple four years ago first in may of 2016 and now it's his largest holding it goes to show, you can teach an old dog new tricks. >> so it's a pretty sizable investment berkshire has more than 130 billion in the bank but $6 billion is nothing to sneeze at in this investment how does this change as we look at berkshire as a company and then stock. >> you know, just looking at this investment as a whole a lot of people are going to be wondering is this a big bet on japan and buffet does make some comments he points out they have lots of joint ventures throughout the world and this was interesting too. i hope in the future there may be opportunities of much yule benefit. they faced some pressure in recent years and they brought additional growth to them but it also made them a lot more vulnerable to any global downturns particularly when you see a com.d.ties crash or the financial crash that we saw a decade ago that did put pressure on all of these stocks at that time so interesting to see if there's opportunities in the future but by making a bet on all five of these companies it does look like it's a bet on japan >> an interesting bet here nike still down for the year >> i guess i wasn't surprised to see stocks up by more than 9%. we'll see what happens in the market. >> thank you very much i appreciate it. >> i will not call you big momma, don't worry. >> investors are gearing up as stock splits by heavy weights. apple and tesla go into effect and nearly a quarter of the index's august gains meanwhile tesla shares rallied more than 60% since announcing it's 5 for 1 split joining me now is the managing director of equity research. good morning. >> great to be here, thanks. >> always good to have you so first let's get down to the stock splits do you think they have the potential to move even higher. >> i believe there's going to be more that follow and right now they're in a position of strength and if you see what is happening in terms of the market, and i view it as that and is there more room for tech to run have we hit the peak of the economy or do you see more money in these tech names. >> i believe it could move another 20% higher and even though i think the fundamentals continues to be there in tech stocks and not just large cap tech and everything we'll see fundamentally and stock continued to move higher >> so when we're talking about tech that definition has changed some what. and we're talking about amazon not necessarily being an e-commerce company it's a tech company. people go back and forth on that what do you see having more room to run >> well, i think microsoft, tik tok, that is the stock that has another 30 to 40% upside here and other names i think continue to run overall, i think it's back here. and that's why tech, large cap tech they continue to move higher of course you look at apple. and i believe that it's a once in a decade opportunity. well that's why. >> strong words there. or are there other fundamental reasons why people should invest >> of course but the big thing here is look at apple the service has been 950 billion. it's $60 billion next year and you have 350,000,950 million iphones worldwide. that's the key even institutionally speaking when you look at apple and in terms of tesla and the easy market right now. it's tesla's world and everyone else is paying rent. you see delivery ahead of expectations for 3 q and even though it's going to be the headline it speaks to a broader issue here that the strong are getting stronger and these are front and center >> how big of an impact did that have on tesla stock. where do you see that taking the stock? >> it's going to be a game changer for tesla. and announcing the third party supplier and i think there's a lot for that but ultimately you have competition across the board it comes down to technology and brand. that's the differentiation and that's why it's really been that model in this covid pandemic where you're seeing other auto makers continue to suffer. >> i have two words for you. iphone 12. what does that mean for apple or other retailers out there as this new phone hits the market >> yeah. i'll go back and say there's one more with 5-g. you put 5-g along with iphone 12 that equals the super cycle. it's not just demand this is something where i believe it's going to be the largest product cycle in their history. even when you go back the iphone 6 is really -- supercycle and this is with china. and that could go higher on 5175. >> haters are going to hate. what else are they going to do all right. thank you for joining us all right. still to come -- >> thank you. >> back on campus. new exclusive findings of a survey on colleges and universities and where the majority of students are going to be studying this fall first as we head to break here some of your other headlines this morning >> nestle will offer $34.50 a share. and reportedly the focus of companies investigation and it's a possible impropriety and after reporting making employees feel uncomfortable at multiple business events and in hollywood news, warner brothers tenant bringing in $53 million from 41 international markets in it's opening weekend. christopher nolan's spy movie this upcoming weekend. chgeig he ching worldwide exan rhteron cnbc. ♪ limu emu & doug you know limu, after all these years it's the ones that got away that haunt me the most. [ squawks ] 'cause you're not like everybody else. that's why liberty mutual customizes your car insurance, so you only pay for what you need. what? oh, i said... uh, this is my floor. nooo! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ these days, businesses are adapting to new ways of working. and innovation is at the heart of it. verizon 5g ultra wideband is the fastest 5g in the world, with speeds up to 25 times today's 4g networks. its massive capacity and ultra-low lag time is already available in parts of select cities around the country. which means businesses both large and small can innovate like never before. good morning more than three quarters of college students are back on campus 78% of colleges summoned students back to school. despite challenges to managing health services and the logistics of everything from moving in to dining, colleges with a clear commitment to getting students back on campus. it's a lot larger than any would have thought because it includes the many schools that have called students back but are teaching both virtually and the study of 950 of the nation's largest colleges and universities are being called back that's almost 1,000 cases at the university of alabama birmingham and 835 at unc capitol hill. now 27 of the 51 states plus the district of columbia, they called students back to campus this is way down in other words the 78 would be higher by the decisions at california to keep students home well, also 60% there's also controversial about should it be just as expensive as in person or cash? is there any data on that as well >> it doesn't but that's -- there's going to be no data because there's a lot of pedestrians digss from students to lower tuition costs university argued hey, our costs are the same or higher these are really businesses trying to really make a go of it the thing that we don't know is is the discounted present value of college educationthe same now or is it less would you rate that as less impressive if it happened while the student was studying virtually during the covid crisis if so, wish it come down if not, stay the same. >> it's a great question if students can still learn virtually why would people want to pay room and board and live on campus if you're not going to go into the classroom? >> ever. and you know, one of the dirty little secrets is i read a bunch of this, does it come from your ability to adapt overtime or a combination of that. if we had a better understanding of that you'll have a better understanding of what you're losing or not losing but it is a fact if you look at unemployment rates over economic cycles, you enjoy, i don't know, anywhere from 5 to 10% less chance of unemployme unemployment by the way, it doesn't help you as much if you have two or three years of college it's the degree that seems to provide protection against unemployment >> i think one thing that we can agree on is that not being on campus is 5 to 10% less fun at at least living on campus is a lot of fun. >> thanks for joining us still on deck here on worldwide exchange, futures suggesting stocks will keep the office momentum going to close out. what's ahead for traders heading into the election coming up next cnbc is back in a moment welcome back let's turn back to the markets futures up the dow posed to pop 85 points at the open. it's going to pop 45 points at the open >> hey courtney. >> hey,frank, how are you this morning? >> i'm great it's the last day of the month and the last month of the quarter. what should people expect as we talk about the historic highs being hit by a lot of the indexes? >> these historic highs are something that we should have actually expected right? so aside from the fact that we're seeing tremendous rallies in the tech sector we're also seeing companies really coming through the second quarter which we would have expected to not have performed as well coming through okay and they're creating things we'd like to see and record growth on the top line i'm really excited to see what the second half of the year brings forward. >> what sectors do you see performing and out performing in the second half? >> i don't think we see a trend divergence from what we saw the first half of the year tech is going to continue to rally in my opinion. you're going to see health care continue to rally. we're going to see i think industrials come back. and consumer staples are going to continue to rally into the second half of the year. oh, we're going to see a pull back i do believe that you'll see those names perform better as we move into the second half of the year and again, a broadening into the back half of the year. >> speaking of that broadening, we had a guest on earlier that said he sees the russell 2000 poised to pop with a lot of the small cap and mid cap names seeing a boost as people get back to work and get back to living their normal life for the recovery where do you see the russell 2000 and the small and mid cap names going forward. you're going to see that rally i think personally we had to recover a lot of small and mid cap names from a research perspective. from a protection perspective i think some of the small cap and mid cap names with some of the large cap names with some of the suppliers to some of the apples of the world to some of the larger tech names. assuming that we get some better news out of the virus. >> any thoughts on transports? they had four positive weeks out of the last five and as we all continue to buy things online, they should benefit. how do you see those benefitting or maybe not benefitting as we continue this recovery. >> 100%. i have been a fan for many, many months now it's been my final trade of a number of shows on the network ups, fedex so i think that you are going to continue to see those names rally as well. we'll see a move and a shift toward that. but think about the names that are going to benefit from that they have great management doing an incredible job. let's look at coupling the unfortunate and hopefully fortunate situation that we're going to have from a recovery perspective in the second half of the year was found management and sound financial controls and recruitments around operating margins with some of the companies. those are the names that you want to be in. i like the trends we have seen in financials particularly in payments i really do like the square of the world. i like paypal and i like not just the back half of the year as a short-term trade but from a fundamental shifting of the new normal that we are going to see. i think those companies are poised to do very, very well going forward. >> courtney gibson, thank you for joining us we really appreciate it. >> thanks. good to see you. >> good to see you as always rlid does it for us here on wodwe exchange squawk box is coming up next thanks for watching. ♪ i keep working my way back to you, babe ♪ ♪ with a burning love inside ♪ yeah i'm working my way back to you, babe ♪ ♪ and the happiness that died ♪ i let it get away servicenow. the smarter way to workflow. ♪ if i could, baby i'd ♪ how can i, when you won't take it from me ♪ ♪ you can go your own way ♪ ♪ go your own way your wireless. your rules. only with xfinity mobile. apple and tesla split and there's three new stocks for the dow. 8 straight days of gains that end a nearly record august warren buffet making news on his 90th birthday. and he is making big moves moving stocks there and the tik tok soap opera what china did that could make a sale difficult or even impossible it's monday, august 31st, squawk box begins right now hey, i don't know if you were up at 5:30 but frank holland referred to you as big poppa. first of all, was i up i am up at 3:30. i don't mind it. you name it.