Transcripts For CNBC Squawk Box 20240712

Territory in a single trading session. For some, it was even worse than that check out shares of apple down it lost 180 billion in market cap. That is the largest oneday lost for a u. S. Listed company on record if that isnt enough to get your attention. Apple lost more in market cap yesterday than the individual market capitalizations of 470 of the companies in the s p 500 it wasnt just apple microsoft, alphabet, microsoft and even tesla saw their market caps shrink. Microsoft down by 115 billion amazon off by 93 billion. This morning, things look a little better. You still have the dow down 150 points right now, it is reverse that up 300 points the nasdaq saw the biggest declines, up 27 points right now. We have to keep that in context a few things in here as well talking to people all day yesterday, here is the list. Youll want to know exactly what happened it was the nasdaqs largest drop you dont go up 400 and down that will be highspeed trading. That would matter until they do. Valuations at some point may have mattered because the highest valuation stocks and work from home trade, they fell 9 and 10 . The closer we went to a vaccine, the more likely it is to sell off. On the idea that you buy ahead of it and then the idea that real work began. Priced in multiple times, we finally got to 2017 one more month of vertical gains that was a melt up. You did fall swiftly from that time to another volatility storm that came out of nowhere all you really described here going up in the markets are not just pure crowd psychology in the process, you dchblt disturb much you look at the s p, it didnt breakthrough in pull back. We are seeing a little bit of a test and flush of money in the markets that did too well. We did see a lot of stress in the market really reversal of what we had been seeing same thing with the nasdaq 100 the tesla Equity Offering and the fact that the biggest outside share holder was probably a psychologicaltype pressure maybe the numbers were not as good as the stocks had priced for. Unspuling what we spuled up in the coming month just felt like the laws of physics were applied to this if you are looking at the moving average levels for the nasdaq to hit the moving average, it would have to fall another six points and to go back and touch that 200Day Moving Average, thats a 2,000 point drop from here roughly 9,500. Maybe how far away we got from any sort of semblance on range found testing as well. To get a little more granular, the nasdaq has bounced off the 21day average really a minimal pull back we are kind of bouncing back around that level. Looking at how quickly some of these things have changed since monday, elon musk has lost 19 million. And yesterday, Mark Zuckerberg lost 9 billion. Everyone lost money. Bezos, zuckerberg, anybody who has a lot of money did come back down a little bit. I was thinking in this proposal from Bernie Sanders out there that says billionaires should be paying taxes on 35i7paper gains theyve made when you see a bounce like this, you understand the difficulty with that. Elon musk lost 103,000 teslas yesterday. Lets be honest, it is really an abstract number thats why taxing those numbers are important. Somebody appraises the value on our house, my house doesnt go up or down by 5 or 8 or 10 a day. The market is not supposed to go up or down several points a day. To have on thursday one of the biggest percentage losses on nasdaq there was no news, no real change, no this or that or a stimulus it is a reminder to our viewers who are out there playing the markets on robinhood or day traders or who knows what bets lay ahead. The market has been incredibly wild swings. Im talking a matter of swings of direction happening before our eyes what happened is, unusual calm and trending moves, punctuated by those outside sharp sudden moves whether the Fourth Quarter of last year, all of 2017, all of 2013, this market grinds higher and then something breaks and gets to some kind of extreme the rhythm is different. The market was always every single day overshooting the implications because it is basically crowd psychology with money. You said it best yesterday, this stuff works until it doesnt yes was the day it didnt i do think it is probably better for a lot of that activity to be checked like this and bleed away the confidence over time to let it build up today will be a tell. The futures right now are up if the jobs number comes in wildly off the estimate of a gain of 4. 4 million, well tell we are stuck in this weird technical trade. The estimates we are using is 1. 32 remember, the estimates are all over the place thats the median estimate they are a couple of million down to a couple thousand. We used to talk about the number itself within the margin of error talking about bigger numbers like this and expectations, that is something to watch for. That number is coming up at 8 30 we have a lot to talk about before we get to that number lets give you an update on two trials johnson and johnson said its Covid Vaccine candidate prevented severe illness in hamsters great news for hamsters everywhere and pfizer announcing it could have results from the late stage testing as soon as october dr. Scott gottlieb is on that board and hell be here with us to talk about those. Well be right back. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. Welcome back time for the latest in the race for a covid19 vaccine for that, well go to dr. Scott gottlieb, hes a cnbc contributor and serves on the boards of illumina and pfizer. We talked a little about the progress weve seen for johnson and johnson and pfizer with their new news they have it sounds promising. The idea that you could get a vaccine before we get to november i know you are a pfizer board member and there is only so much you can say, where do you think we stand right now the other news yesterday was that glacksco smith is enteringa trial in the uk. I think it is possible well have data in the october, november time frame. The two lead candidates are pfizer and im on the board of pfizer and the moderna candidate. You could get a read out in november, possibly in october. Everything has to go right for that to happen results from the top line read out assuming the vaccines are effective. In order to get a read out, those need to be really effective. If your base case is that those will be 50 to 60 effective and we can do better than that and assume that it is more like 50 to 60 base case that pushes out probably to November World Health Organization said earlier, they dont anticipate the broad base until mid2021 is that counter or just nuance that we could have a vaccine but it might not be available until middle of next year . I think it will be a staged approval it doesnt mean it is a lower standard that eua allows them to stage the authorization and access to different highrisk groups while they continue to collect data. The emergency use allows the fda to collect a lot of data around the use of the product and stand up with a regular industry that will allow them to collect data as they get vaccinated health care workers, higher risk higher risk of having a bad outcome. People who are older those are groups who will likely get access earlier and youll see additional groups brought on in terms of having a vaccine available for broad use where you could go to a Doctors Office and get the vaccine clearly, i think thats a 2021 event. Maybe more like the first half it is possible well see a vaccine broadly available but it will clearly slip into 2021. I do not think well see a vaccine get licensed for broad distribution fwl through 2020. Well get a staged release of vaccine through the year assuming they work and are proven to be effective also big news on e cigarettemaker juul who said it will be cutting more than half of the workforce and considering pulling out in sales you looked at this very early on and said there was a big reason for the spike of teen vaping what do you think of this latest news if you remember where we were two or three years ago, we tried to regulate nicotine for some adults who still wanted to get access to satisfying levels of nicotine, we saw e grets as a less harmfu alternative. Juul stepped into the market and ruined that vision by addicting a whole generation of kids through e cigarettes they were slow to react to it. A lot of the overhang and impact to let adults process that was impacted by juul theyve been slow to respond in terms of the youth use of their product. Im not surprised to see them at the federal level and state level. And impacting their business and the company having to skinny down and focus on the core target market. They should have been doing at the outset and not trying to grow it into new addicts or users. Because they were marketing specifically to kids, to teens they were marketing in a way to appeal to children. Using very young people in marketing early on there is no way to say we are Just Marketing to 20yearolds targeting 20yearolds will bleed into a younger demographic. Juul was targeting a younger demographic. They got a lot of bleed to children and teenagers making that product fashion able to a younger set. Where do we stand now in terms of the number of teens who are vaping had has gone down we wont know for sure the numbers in the field will get held up because of covid there is evidence that vaping generally has gone down because of peoples concerns around the health and the pathogen and pandemic you have seen youth vaping rates come down. We have seen kids pull back from using those products i think thats accelerated in the last year. Thats great news scott, thank you for what you did, leading up to that. That was huge in terms of trying to bring that up under control great to see you well talk to you soon we are just Getting Started here more in yesterdays big selloff and what you need to know before the jobs moving number futures are mixed. Look at the nasdaq, thats the one to watch maybe we are seeing the split between tech and the rest of the market here is what mohammad told cnbc yesterday about the selloffs caller my own gut feeling is that the Liquidity Position is still strong if it is not, this market comes down by a lot more we could have another fall if, if people start thinking fundamentals introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. [mother giving birth] from the firstloving touch. Everything that touches your baby should be this comforting. Thats why pampers, the 1 pediatrician recommended brand, wraps your baby in breathable softness to help keep their skin dry healthy. So every touch is as comforting as the first. Pampers. The 1 pediatrician recommended brand. Docusign shares have been volatile it looks to expand into other areas of contract management sell offs falling 8. 7 it had seen a sharp run off in recent weeks the docusign ceo will join us in a first on cnbc interview. Now time for the executive edge the Kentucky Derby taking place tomorrow after being postponed due to the pandemic. Shares of churchilldowns are down now more with derby. No hat i was hoping you would be in a hat. I thought about it. But it was so early. I do have a most fascinating fascinator the most exciting two minutes in sports will be a little quieter. It announced it changed plans and now wont be any spectators in the stands for the first time in history they originally said they would allow 14 of crowds. They changed that. The race still expected to be a big betting event. Last year, 165 million was bet. They expect to see a major surge as legalization surges and betting at the track is no longer an option they are prepared for an increase of up to 300 of wagers per minute on deber derby day. The stock is up 30 at churchill downs. Weve seen a lot of pentup demand for sports and sports betting. Headlines are pushing that forward. Michael jordan, bar stool sports hear hearing about those valuations if you want to get in on the action, you can bet on the stocks or bet on the horses. Tomorrows favor to win is tis the law. I had no idea the hats are called the fascinators thats just a tiny hat. And 1,000 words 12 to 1 the number of people betting on horses from what i understand has gone up. Are these younger people do people expect them sto stick around the new York Racing Association says theyve seen triple digit increases in the handle and increased usage because of the lack of sports generally that horse racing got a boost and they think these people are going to stay the organizers of pink pyeongchang say the same thing they are not the only ones fox says theyve seen rating for these events go up 300 this summer it is an incredible boost for this sport for tomorrows race, you are looking at scratches king guimaro is out because of a fever. And finir the fierce, the one eyed horse im going with 1,000 words. Well see your fascinator at some point by the way, nbcs big derby coverage starts tomorrow 2 30 pm eastern. Will look different but still fun and exciting yes coming up, dow futures pointing to a nasdaq still the weak point. Well talk predictions to the big lossness number. Look at yesterdays biggest 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Good morning watching u. S. Equity futures because of a big selloff indicated up by 236 points s p down by 3 dat 5 now indicated up by 20 points. The story is the nasdaq. Down 5 yesterday. Now indicated down once again only by about 10 points but that was a huge move. Not the case at this moment. Chevron up by 1 or 6 . Youll see docusign. Out with better than anticipated results. However, what you get, you have to give back in some of these. Had had been up sharply. Give back yesterday of 9 and again today of 8 . Well talk to the ceo later today about what it feels like to get caught in these momentum trades. Thats an 8 drop so 17 really in a matter of 24 hours. The road back to the economy will come into focus in two hours with the release of the jobless number that hiring slowed down. And professor at jon jay college. Michelle, ill start with you. We are going for 1. 3 million your estimate is 1. 9 you show be careful to focus on that Consensus Forecast because it really doesnt reflect where everything will land how wide do you think the dispersion will be especially at these times, we talk about the forecast being off 500,000 or a million in terms of the range of estimates. We take these for granted with a huge grain of salt you have to step back and look at what the numbers are telling us about the progress we are making back to where we were pre covid. Whether the number was 1. 3, 1. 6. 1. 9. The bottom line is that those would be consistent of regaining in august at half the time we are trying to gauge. How far have we come and how much further do we have to go. To some extent, markets are forward looking. Weve seen announcements of furloughs turning into permanent job losses going into the fall concerned about what the return to school will look like the markets will also be looking forward as well. Michelle holder, we talked about how important the school issue is to the jobs number what are you expecting today and to you, what is the most important thing to take out of this report . Good morning. Thank you for having me on im going to echo what michelle just said. I anticipate the rate will stay steady or tick down. Again, whether or not the job creation numbers between a million or closer to 2 million,ing the important point is that the economy is still gaining jobs although with 20 Million People unemployed, so a monthly gain isnt really going to get us very far, very quickly. Two of the most important things to think about is how long is it going to take to get back to some level of normalcy and not even pre covid recession levels. Ill talk about certain demographics even though the Unemployment Rate has slowed down, the black Unemployment Rate is down. That has been surpassed by the black Unemployment Rate, which i believe is between 14 to 15 do how do we fix it, michelle holder we fix the problem wither in the economy. Get the virus under control. There are people who want to go back to work but are afraid to go back to work. In order to fix the problem of black unemployment and latinx unemployment, we have to fix the whole picture. Really. We look at the hours worked, if you will how risky is it . When we have no idea what is coming in two months how hard is it to forecast right now okay. So first of all, the data themselves are very difficult to forecast those are very much impacted we are seeing a greater number of people coming back to leisure and restaurant sector. The composition change can pull down the Hourly Earnings numbers even though apples to apples, it wouldnt have shown the change i do want to say one thing about looking at the demographic data, i do think Going Forward, that will be increasingly important the fed has changed its approach to how it would implement the Monetary Policy. Focusing the shift showing that mandate needs to be brought. Getting the rate down isnt going to be enough looking at the demographics will be important and focusing on those will be extremely important. The fed can throw trillions at the world, raise stock prices, make the rich even richer but if the skoent skoel need to reopen thank you for joining us have a good weekend. Coming up, tesla with a smarp pull back. Now down 18 from the recent highs. We well talk to one an lieft alys coming up on the threeday weekend, where should you be looking for investment safety. Welcome back to squawk box. Lets look at three stories front and center to the road to reopening. Several colleges adjusting return plans Temple University returning to online after reporting 380 cases in the last two weeks. San diego state is pausing inperson education for a month. Governor cuomo is allowing new york city malls with proper vent lags to open Indoor Dining is still prohibited multiple media reports say the Actor Robert Pattinson has tested positive for covid19 Warner Brothers confirms that the new filming of the movie batman had been halted Robert Pattinson plays the batman that would affect production if the star could not appear on set. All the best that he could be on their feet we saw dwayne the rock johnson and his family tested positive as well. Google made a with onetime paid holiday for, quote, collective well being in light of covid19 applies to fulltime employees and interns. A coveted fourday weekend those who had to work today for critical need could take the next available day off, so tuesday. I cant believes it labor day. Good for google and the fourday weekend. Pretty nice. What happen fz you already have the day off today, you get the day back it is a good experiment everyone should search obscure things to make sure the algorythm still works. Im going to bing that and get the answer google it duck duck go. When we come back, tesla shares down more than 10 this week the worst performer and we are digging in to what is behind the slide. If youve been watching that the last several weeks or months, that is a huge outside performer. Look at some of the stayathome stocks that took atelodoc. Peloton down by 10 along with zoom well be right back. Apps are used everywhere. Except work. 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 the fall for tesla shares has been sharp and swift its lost 85 billion in market share roughly since then elon musk, his wealth has shrunk by 15. 5 billion the stockstill up 800 over the last year, guys. Tesla really has been the whip end of this whole momentum move, this new era thinking that you can have unending growth it has the save the World Environmental growth and it became a plain old momentum chase and a bit of an unwind right now. Whats amazing, mike, they were telling bob pisani yesterday that tesla could still lose another 60 of its value and be above where it was in february it could lose another 25 from here and still be above where it was just one month ago think about that tesla could fall 35 in a couple of days and still be above where it was a couple of weeks ago. The amazing thing about them, its almost reached escape velocity the dollar volume of trading in tesla shares is routinely the largest in the market. Even though the market cap is 1 4, 1 5 of apple, it trades sometimes the dollar value and its a fevered activity. Did an Equity Offering and one of the largest outside shareholders or the largest did trim back the position unclear if this is a trend change or just a little bit of a shakeup. That was going to be my point with it, too the idea of offering that big new equity position and saying that they would kind of roll that in to the market from time to time. We dont know now but is that going to be something that was ringing the bell at the top . Good for them for being smart enough to realize people are willing to pay this amount, lets get more shares out there in the market at this point. But because of the way its being structured with many banks being able to offer it, you may not see a lot of those new shares depending on what happens. Again, its a huge run. 5 billion could have been done in half a day depending how much of the market they want it to be. Im not sure if its an overhang or a tell which said they department need to raise anymore capital to say, fine, the market is begging us to do this. People are willing to throw money at you, you take it, right . Yeah. I think this could be one of the most politically important stocks out there in terms of the polls, guys. The federal tax credit is so important to tesla the tesla bears will say if you pull out that tax credit the company is bleeding money. If you think youre going to get a democratic sweep, i would imagine it makes it much more likely that tax credits on evs are going to last. If you think that maybe trump rewins and the senate stays where it is and you worry about the future of the federal tax credit, this could be a stock that moves wildly on the political polls. Thats a really interesting take it may be one factor in the recent selling. Yeah. Thats a really interesting take though, brian. Because if youve been listening to elon musk hes been so frustrated with being shut down and not able to get his workers back into the factory during the height of covid. Hes more of a libertarian kind of hard to guess where he would come down. I dont know that he would necessarily side with a lot of the democrats who are in favor of giving those tax credits that are helping his giving his company so much help yeah, thanks, becky you have a huge amount of competition. Im going to tell you omething the polestar 2, the volvo owned by gili of china, thats getting great revuiewsreviews. That polestar as a car guy, im telling you, could be a viable competitor. Coming up, we are counting down to the august jobs number coming up in 90 minutes time that hopefully will give you some idea on how the economic recovery is going. Programming note, Vice President mike pence will be on squawk on the street later on this morning in the 9 a. M. Hour. 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Zeke emanuel joins us to talk about finding an answer to covid19 and how drugs should be distributed. And still no deal on the stimulus Front Operation hope founder and ceo John Hope Bryant will join us to talk about the stalemate and the impact on Small Business the second hour of squawk box begins right now all right. Good friday morning and welcome. I am Brian Sullivan along with becky quick and mike santoli i believe joe and andrew should be back next week, tuesday of course monday is a labor day holiday. You have green on your screen as far as the dow goes. Dow futures up 210 points right now. Again, guys, it is the nasdaq that has to be in focus. Nasdaq futures, they are off once again not to the level that we saw yesterday. At this time they were down 150 points implied open on the nasdaq and it got worse from there. Nasdaq futures down 44 dow up 193 the dow is what the general media looks at, that we all know on cnbc. The nasdaq is where the action is that will be the index to watch today. Work from home stocks like zoom and docusign, take a look at this. The stay at home stocks like apple and salesforce, they led the market higher and the ones Retail Investors lachtched on t. Yesterday they got slammed dom chu is here. Dom, good morning. Slammed and damaged may be putting it mildly given the action that we saw yesterday, but to brians point, the nasdaq will be the key focus for many of these what were going to do is show you some of those stay at home and work at home names and the big falls that they had in the context of a year to date chart because it will explain why in many cases the stocks that lead to the up side fall the hardest when things turn zoom video, docusign and salesforce, three names weve closely associated with surging stocks tied to the kind of work from home trade. You can see here massive moves here lower for all of these but in context, zoom video is still up just in 2020 420 sails for 62 . The biggest out of all of them thats the work from home trade. On the stay at homicide of things, those names as well, some of the megacap technology, names like apple, amazon, netflix. Theyve all seen, you can see there, that move lower just in yesterdays trade shedding billions, perhaps even hundreds of billions if you put them all together apple still up 62 year to date. Amazon up 81 . Netflix up 61 that trade is playing out as well now watch this because these three sectors were the ones that got hit the hardest. We are talking about technology, Communications Services and Consumer Discretionary why are these important . Because these three are by far the best performing sectors in the s p 500 so far in 2020 leading on the way up and then again on the way down in yesterdays trade. One more thing to keep an eye on, mike i know youve been watching this, the momentum stocks. There are etfs that track them like etfs that track low volatility or low beta situations the momentum etf ticker mtu is up 17 the low volatility tracks more value oriented is down that gap has narrowed a little bit. Still pretty wide out there, mike i know a lot of traders are out there watching that as well. Ill send it back to you. A little bit of a sharp recoil, dom, in the last couple of days. The market selloff putting a brighter spotlight on the august employment report due out in less than 90 minutes Steve Liesman joins us on what to expect. Steve . Good morning, mike. A big gain expected in the jobs report if businesses continue to open from the shutdown the consensus would represent a sharp slowing in the pace. Here are the numbers wall street is looking for up 1. 3 million it would be down from the gain of up 1. 7 million. Unemployment falling to 9. 8 to 10. 2 average Hourly Earnings flat and heres the adp coming in weaker than expected at 428,000 Economic Data has been to the up side consensus until last month seriously underestimated the strength of the jobs recovery. That said the High Frequency indicators that are used to forecast the jobs report have shown a slowing of the expected slowdown, can be seen in the forecast for the Unemployment Rate it fell more than 2 full points between may and june expected to drop 0. 4 points later this month some of the commentary, citi economists say a strong increase as we expect should help encounter a stalling u. S. Economy. Theyre looking for stalling u. S. Jobs. Theres a slow grinding improvement is a worrisome number if the consensus is accurate, the u. S. Will have gained back half of the 22 million lost jobs from the pandemic leading literally or figuratively to whether the glass is half full or half empty. Joining us is anett anetta markowska shes from jeffries. The labor market is a challenge for anybody trying to forecast it month to month given the volume of claims, 1 million a month plus on changes. Where are you coming down on todays number and where might you look to get a better sense of the ongoing trend forecasting payrolls has been a humbling exercise in the past few months were pretty close to consensus looking for 1. 2 million with the Unemployment Rate dropping to 9. 8. A milestone. Back into Single Digits. If we get anything north of 1 million, we should all breathe a sigh of relief thats a pretty good outcome in the context of fading fiscal support. I was looking for the economy to stall this summer and so far that has not materialized. I think what were going to see in todays report is a reacceleration of the goods hiring that sector is on fire weve got a lot of demand. Supply hasnt kept up. You have no inventory. A lot of pressure to build product and that bodes well for hiring in those sectors. Services clearly a different story. There youll see continued slowdowns. Very respectable gains but none slower than what weve seen in the early days of the reopening. Government is a mixed bag. You have consensus being supportive theres still a lot of census work that hasnt happened. They have a lot of catching up to do. You could see a couple of hundred jobs there state and local governments, seasonals are looking for pretty significant increase in august 300,000 teachers are supposed to come back and thats a little bit challenging. Thats a very high husrdle in th context of state and local governments facing clearly budget challenges. We might see some down side there. Net neutral. Better manufacturing, Lower Services and no job growth from government is what im looking for. Steve, how confusing is this report going to be because prepandemic you had a range of estimates you maybe beat it in the median and the consensus estimate mattered a lot you and i were emailing back and forth. It ranges from 0 job growth to 2. 3. The consensus is 1. 32 million. How do we read the number if it comes off way off either way so youre absolutely right. I got it here. I was doing the math here this morning, brian, actually, to see how good the consensus has been, all right . Its like minus 10 million in the month of it was off by 10 million in the month of may. Off by 1. 7 million in the month of june but it hit it pretty good, off by 135,000 last month. Theyre using all kinds of new data economics is forever changed by the virus in terms of figuring out how to estimate the economy and forecast the economy in real time theyre not perfect. Theyre trying to figure out which ones work on a seasonal basis. Brian, i want to take your question, turn it around and throw it to make because whats been happening right now, what used to happen is it was the Second Derivative that mattered. The change in the change it seems like stocks have more been trading on the level more than they have on the change at what point, mike, does the pace of recovery become the thing that stocks trade on, no longer this idea that anetta was talking about, hey, if we get a million, its fantastic. This 1. 3 million were expecting is below the 1. 7 million from the prior month . I imagine when that starts to matter is when it seems as if the monthly gains are petering out. If theres anything in the numbers that suggest were getting close to a domestically focused cyclical, then i would turn that to you what pace do you think this economys going to be able to cut into this big surplus of unemployed workers so i think we still have a few months ahead of us on pretty strong job gains in the order of 1 million as the economy continues to reopen. I think school reopening, even if its 30 of students going back, thats another important catalyst it allows parents to go back to work we have a couple of months of 1 million per month gains. Were going to be down 11. 5 million jobs after today hopefully. I think once we get down to 7, 6 million youre going to start to see a pretty significant slowdown and thats because that last 6 to 7 million jobs are probably associated with businesses that have closed permanently. Right . Those jobs are just not going to come back immediately even if we have a vaccine theyre going to have to be recreated organically or expansion by existing businesses and that just is going to take time so i think, you know, were probably okay through the end of the year, but at some point were definitely going to see a pretty significant slowdown. And, steve, that would imply a long, long way and a slow road to anything like what the fed would consider full employment. Yeah, but i really like anettas answer. Its a good way to think of it you have this gravy period where any change is good change. We get down to this area, then weve got to think about, well, whats the permanent scarring of the economy. We had evans yesterday say hes looking for 9 unemployment by year end 5 to 5. 5 the end of next year and we dont get back to the 2019 gdp until late 2022 thats been a little bit more cautious than the data has suggested. We get to that point the question is answered whats going to happen the last 6 or 7 million. All right a bit over an hour we will get some of those numbers. Anetta, thank you very much. Thank you we will see steve back here before those numbers come, too when we return, as Companies Race to produce a vaccine for covid19, the next big question is how to distribute those vaccines were going to speak with dr. Zeke emanuel after this break. He has a proposal how distribution should work before we head to the break, check on the futures the dow bouncing back after losing more than 800 points yesterday. Up by 148. The s p down even more it was down by 3. 5 . Indicated up by 8. 5 points the nasdaq was the big loser down by 5 halfway to a correction. This morning those futures indicated down once again. Right now down by 77 we do have the big jobs number coming up. Stick around, squawk box will be right back. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. Welcome back, everybody. Our next guest is proposing a model for Global Distribution of the vaccines lets welcome dr. Zeke emanuel hes vice provost of global initiatives at the university of pennsylvania dr. Emmanuels plan has detained a new piece for Science Magazine thanks for being here today. Great to be with you. Before we jump into the specifics on your plan, id like to ask you just a broader question about where you think we are in that race for a vac seen we had dr. Scott gottleib with us earlier this morning, the former head of the fda both he and Anthony Fauci think we could see some sort of early vaccines being brought out to the american public, getting some sort of approval by the fda based on information the end of october into the beginning of november we heard from the w. H. O. This morning that they dont think vaccines will be broadly available until the middle of 2021 i realize theres some nuance there between when something is approved and when something is broadly available. Where do you come down on this and what that might mean in terms of when we see them . Im a little confused maybe Scott Gottleib has information because hes on the board of pfizer, but these are double blind studies and its hard to know how many where we are in the study because only a few privileged statisticians in the data safety monitoring board are supposed to know Francis Collins said he thought it was extremely unlikely to have something before the end of october. Im of that view you have to be sure. Have you to look at the number of conversions to covid and then you have to see which groups they fall into, the placebo or the Covid Vaccine, and see whether its statistically significant. Thats consistent with what dr. Gottleib told us he said it depends on how things went in a lot of ways. You could see something by the end of october, early november just like the other gentleman quoted. Well, it does depend on the number of exposures and the number of conversions and thats a as you might think a random event. I would say one of the worrisome things i actually think from a Public Health standpoint, were doing these studies in the United States. That means we have enough cases, enough spread to do the studies. You cant do these studies in germany, norway, they dont have enough cases thats worrisome for the United States we have so many cases we can do the study. In terms of how you think this needs to be distributed, thats going to be a huge issue. Obviously every nation is going to want to have it but we have already seen governments trying to lock up supplies for drugs vaccines that are going to be manufactured in their confines what do you think about what is likely to happen but what you think should happen . Look, vaccine nationalism its called, keeping the vaccine for my country, is a natural response governments are responsible for the freedom and wellbeing of their citizens theres a limit to what they should do and theres some obligation to the world. If the whole world is suffering, your country is not going to get better, as new zealand has shown us, if they have a lot of covid. Beyond our borders what we have proposed is countries can have enough vaccine to get it under control and then they have to lee lease it into the world and then the question is how do you distribute it. Vaccine members like astrazeneca, eli lilly said there should be fair and equitable distribution among countries. The w. H. O. Has said there should be a Fair Distribution and then leaders of many countries like Justin Trudeau of canada said there should be fair and equitable distribution what weve said is what does fair and equitable mean in this country . You should distribute it based on how severe the illness is and how much death and premature death its causing i like to make the analogy an emergency room doctor doesnt go to everyone saying, all right, im giving everyone five minutes equally. No, they look at whos got the heart attack and they focus the attention there. That should be the same approach with the vaccine where can the vaccine do the most in terms of saving lives initially. Then once youve saved the lives and reduces the mortality rate, where does it do the most impact those are the two primary distribution methods. Where are the countries having the worst impact on both those counts well, theyre not new zee lapped and taiwan that have done a remarkably good job. Theyre places now like the United States, brazil, youve got a lot of latin america which has a real rapid and high spread but as you know, this has moved around and predicting where the next hot spot is could be a little dangerous it was initially italy but then it moved to the United States and to other countries so we have to keep monitoring this and being focused if it were today it would be the United States, brazil, mexico, lots of latin american countries. India would also be high up on that list but as i mentioned, places like taiwan, italy, france wouldnt be high on the list india would be high as i mentioned because they dont seem to have their arms around the problem. Were not working with the w. H. O. Right now who would be responsible for coming up with some sort of a guideline to lay out how you determine where the vaccines go . Thats a very good question the best approximation is the w. H. O. And the covax administration we did say that were not going to participate in that covax facility i think thats shortsighted. The United States traditionally has been a leader and a leader in the world in terms of showing the right course, showing whats fair and equitable but President Trump doesnt seem to think that participating with other countries, being collaborative is the right mode. As you know, hes talked about pulling out of a lot of arrangements with other countries. That is not a sign of leadership, and i think that is not the way for the United States to demonstrate that its really a world power, and not only a world power but a moral world power that leads by doing the right thing and setting an example for other countries. Plus, he assumes that somehow the United States is going to have the vaccine maybe were not the country that gets it. Then we might be out of the running if we dont have arrangements dr. Emanuel, good to see you. Thank you for your time today. Thank you. Coming up, weve got some new numbers on the nations mortgage Bailout Program they are coming out. Were going to bring them to you next. Plus, the tech names that carried this market higher you know them. They got absolutely crushed in yesterdays session. Look at this these are market cap losses. Yesterday apple lost 178 billion. Apple lost more market value than most companies are worth. Microsoft 115. Amazon, google look at tesla, 39 billion in lost wealth. The list goes on lets take a look at your market setup. We have the jobs number coming out in one hours time this weird mix heres something to watch, folks. Dow futures up 192 look at that, the nasdaq futures, starting to show down a couple of points and now down 101. We talked about the gamma squeeze. Options. Today could be another wreck the dow wasnt serious enough. Lets have a little fun. Time for the aflac trivia question of the day. What year did spotify, sonos, docusign and dropbook all debut as publicly traded stocks . The answer when squawk box continues. These are all the cab rides to my physical therapy. And aflac paid me directly to help. Aflac. What he said. And this unexpected bill is from. The twothousanddollar specialist. Thanks. Aflac. When youre sick or injured, aflac is there. We can help with Expenses Health insurance doesnt cover. Get to know us at aflac dot com. We know that traditions matter more if theyre celebrated with the ones you love. Thats why were proud to partner with the Kentucky Derby. You should be mad they gave this guy a promotion. With the Kentucky Derby. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Welcome back to squawk box, everybody. The answer to todays aflac trivia question. What year did spotify, sonos, docusign and dropbook all debut as publicly traded companies, 2018 you have great questions. That seemed a little bit easy, didnt it . 2018 was 17 years ago as we know new numbers on the mortgage Bailout Program. Diana olick . Brian, after holding flat for the last couple of weeks, the total number of mortgages in government Bailout Programs got better it dropped by 147,000 or 4 . This is the biggest drop since the first week in july when far more borrowers were finishing up their initial three month plans. They are down by 21 or 1 million. 3. 8 million mortgages are still mortgage holders are still delaying their Monthly Payments representing 7. 1 of these, 3 4 of them had their terms extended from the initial threemonth program to six months the biggest decline was in portfolio and fannie and freddie. The bright spot here is that even with the extended Unemployment Benefits expiring, fewer borrowers are in need of help on their monthly mortgage payments back to you guys. Little bit of good news there this morning still to come on squawk box, apple, microsoft, amazon among some of the big tech names taking a tumble in yesterdays selloff. Well discuss that move after the break. With a stimulus stalemate in washington, can the markets force washington to get a deal done. Later, docusign, one of the many work from home stocks hit hard yesterday ceo dan springer joins us to diusscs quarterly results. That and much more when we return all right. Some breaking market news. Looked Like Technology could get slammed again today. Dow futures up im going to ask you something ignore the dow futures focus squarely on the nasdaq futures. We talked about it yesterday a little bit we explained this gamma squeeze idea let me explain whats going on in technology in a very clear way because it could happen again today. A lot of investors have been buying out of the money or long dated options. Theyve been playing the Options Market when you do that, if you sell the call, the banks that do that will often have to buy the underlying stock as a hedge. That might explain why weve seen the market running up so violently the last couple of weeks. Data out of the cboe shows that call buying has been 68 of the volume versus just 32 for puts. So people have been very aggressive on the bullish side in the Options Market. When that starts to unwind, you can have these violent down moves which is exactly what happened yesterday we talked about it with the gamma squeeze. Today a lot of options expire. Think about that this idea the Options Market, i dont know if mike santoli is there to chime in or not, the Options Market is controlling the equity market now. Based on rapidity of the nasdaq markets falling they were flat today could be another day where that Options Market controls equities and not in a good way for big tech thats where the majority of the options action has been on particul technology, mike what were seeing is a further kind of unwind of those options trade what the Market Makers are doing who knows. I think the bigger point is all of this got them to extreme ways of being over bought did have tremendous amount of very short term speculative action going on. That needs to be flushed out the question is whether a one day 5 pull back is enough to pull that back the indication is probably not i think thats it. Well, you know, again, the journal did a good job of explaining this. Their data shows that the gap between call option buying and put buying is the widest its been since 2010 when the markets, again, made kind of a stimulus filled gap. That gap between the aggressive bulls and the meek bears has never been greater its great when it works to the up side. Today it could get ugly. Over paying for that up side exposure there was a lot of money placed in that direction and spilling away. High flying tech stocks taking a tumble. The big tech names losing 500 billion in market cap as the nasdaq saw a drop. Joining us now for a look at what to do in the pull back, steve miller, tech strategist and managing director and tim musco, partner at granite investment advisers. Good to see you both steve, just give us your broad take on the landscape here obviously tactically, tech got overlooked and crowded we backed off a little bit is there anything more than that going on and do you think this process is going to continue it probably will continue a bit in the short term as you were eluding to. 80 of the stocks in the tech index are above the 200 Day Moving Average the relative strength indicator is above 80 in the index weve called 5 out of the last 2 corrections in technology. Things have become overbought. As we came into the year, the average stocks are up 80 this year zoom has the same market cap as ibm. I would say two things one is theres likely to be at some point a severe correction in tech. Second, tech is secularly advantag advantaged were disrupting every company that creates very large markets. Tim, you know, as a money manager, what have you done, if anything, with this discount first of all, did you feel like things have gotten out of hand, too crowded, and what about now . Well, i think weve been seeing this crowded trade and tech being a bit over bought and maybe over valued since right before earnings season people were expecting a pull back as these Companies Reported earnings in july and they all absolutely killed it so the market had another leg to go and drew more investors in. Looking forward, wed love to see room in the chip space steve, you mentioned the secular advantages that tech has right now. And the big question obviously is whether the market has kind of just paid for them already in a lot of these different areas are there parts of the market that you do think that might have more of a reckoning im thinking the software as a service area were calling them the cloud stay at home stocks. Theres some indications that maybe numbers werent as great from things like pager duty. Maybe a little bit of miss steps where people have to realize the stocks have come too far to accommodate how well they can perform in the short term. Yeah. Theres been some narrowness in tech performance that narrowness used to be large versus small cap the large were dramatically outperforming. Its broadened out the new narrowness has been by sector its been in the internet and Software Names thats where youve had substantial expansion e. Commerce has been a huge outperformer in some cases stocks start reacting the way they did a few months ago i still feel like things are Getting Better as long as theyre Getting Better than worse from a momentum standpoint, youre okay its premature to give up growth the comps will get tough i would think the first half of next year would be pretty difficult. Tim, have to get your take on apple. Been the lead horse on the way up and was early and maybe rolling over in the last few days on the way up people seem to kind of give in to the idea. Okay, i guess, apple is now a 30 pe stock it was always at a discount to the market it came up with reason why is it could continue to do that. Great Free Cash Flow and all the rest of it the stock split seemed to create the final split. Well hear lots of news out of apple in the next month or two right i think you hit the nail on the head with the valuation. For a long time it traded at a discount to the market earnings in july show that they had the opportunity to grow. We dont expect apple to be a double digit gainer looking forward. We see part of that secular tailwind that steve talked about. Its certainly trading at a premium valuation. Steve, is apple i mean, is it almost like a subsector to itself how do you view it in terms of whats driving it . Is it a hardware sales is it a longer term story with more predictable cash flow or what theres been a lot of talk in the last 18 months about the services business. Its still fairly iphone dependent. People are getting a little too optimistic about what the 5g iphone is going to look like this fall. When i covered apple, people tend to have a negative bias it was very hard to be over weight apple theres a lot of chasing apple as it continues to do well they had a great quarter and they have a fantastic ecosystem and they monetize when things go well 30 times earnings. My colleague has an under perform. The platform companies, faang companies, are in a good position i dont see any new technologies to disrupt them. Anything drawing your attention as an opportunity . I think if you look at the chip space there are things getting knocked pretty hard. Probably broad com is the most fairly valued of them versus, perhaps, nvidia and amd. Well continue to look to see if that comes down because they participate in almost all areas of the 5g revolution. Tim, steve, thanks a lot, guys well talk to you soon still to come this morning, john bryant, the ceo of Bryant Group Ventures and chairman of operation hope well talk about the stimulus albuneate and the impact on squawk box will be right back. But inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Docusign shares have been volatile the Company Provided up beat guidance as it looks to expand beyond esignatures and other areas of contract management it was part of the selloff falling 8. 7 in the session. Dan springer will join us in a first on cnbc interview in just a bit. Meantime, check out shares of broadcom. Reported better than expected earnings of revenue on Strong Demand for the products in the cloud and telecom divisions. The market may not care about fundamentals the shares fell and tech could have another tough day the ticker was still down. It was up a few percent earlier. With the rollover in the nasdaq futures, broad com were with it. S p futures now negative, too. There you go i just wonder, is the market not paying attention to fundamentals now or was it not paying attention to fundamentals three days ago its kind of the question of, yeah, these companies are doing well they are doing much better than so many of the stocks that have gotten hit by covid. Where is the point where its based on fundamentals . And where is the point its being based on your money . Thats the question . Where you can come down on that and say neither in the two weeks before this or yesterday was fundamentals the main thing driving it it was the perception of very longterm opportunity and a momentum chase argument. And it also comes down to what youre willing to pay for it, becky. If youre willing to pay 60 times earnings, you darn well better hope they come in great the up side of the down side of what we might see today, by the way, today is a mirror image of what we had yesterday with a steep drop in nasdaq futures the up side of the down side, if you are going to come in, you are willing to pay 40 times earnings, maybe 55 times earnings you might see some buyers come in late today. Today will be a big, big tell. They are at the moment. Coming up, the stimulus stalemate and what it means for Small Businesses and entrepreneurs. Were watching shares of tesla that stock is plunging more than 20 since mondays close indicated lower still. Elon musk losing about 19 billion on paper in net worth since tuesday. He is not alone. The top four billionaires, they lost 25 billion collectively from their net worth just yesterday. Iue come easy go, gss squawk box will be right back. R and motorcycle policies . Wow. Ok thats 15 on top of what geico could already save you. So what are you waiting for . Idina menzel to sing your own theme song . Tara, tara, look at her go with a fresh cup of joe. Gettin down to work early following her dreams into taxidermy oh, its. Tax attorney. I read that wrong, oh yeeaaaah geico. Save an extra 15 percent when you switch by october 7th. Give it up for tara welcome back with washington still at a stalemate, many of the working class communities are beginning to grow more nervous about their finances joining us with his take on the support that Many Americans need is operation hope chairman and ceo John Hope Bryant weve been talking about schools and taking heat. Im not advocating for the opening of schools and putting teachers at risk, but do we not have to remember that this is not just a onesided story, that when we look at the education gap that is going to be created by kids who are learning virtually, who maybe dont have high speed internet, they share a bedroom, their parents leave them home alone at 9 years old, the economic gap and inequality that we already see in america is only going to soar over the next decade unless we can find some way to fix it now yeah, i agree with you obviously, but theres a larger issue. Weve got to be careful we dont win the battle and lose the war. Were at risk of rearranging the deck chairs of the titanic meaning the ship is sinking and were picking grapes this is no normal crisis as ive said before. Were at war were at war with a virus. We need a war plan, okay we need to knock it off with the partisan differences we need the empathy of president clinton feel your pain and the vision of president ragan, bring everybody together, no republicans, no democrats, no big business, no small ones and the kids in school need teachers who are not infected and the teachers that are trying to teach need to know theyre not putting their life at risk or their elderly parents if they dont have symptoms because they want to teach our children we need a stimulus, a care package thats a bridge to a larger plan and a vision for america. Thats the piece thats missing. At the operation hope counseling is up with corporate clients, their employees, people from main street. And everybodys nervous, man thats the big thing they dont feel theres a vision they can grab ahold of the confidence piece is everything. And thats listen, thats it, john how do you do that nobody wants to put anybody at risk, especially if its a dangerous situation where you like you said, maybe youve got multigenerational households, grandmas at home, shes vulnerable think about it this way. If you have kids going to class, kindergarten, first, second, third grade, they will read and learn to count while kids are doing that virtually, especially if they dont have resources at home they may not learn to read or count. Theres no way to make that gap up over the next number of years or at least if they do, its going to be very difficult i dont know where the middle ground is, john, of balancing the two out. Do you have any idea well, i think this conversation is sort of fascinating to me. Ppp in some way was affirmative action for white people. They got all the benefits really of this and now understand the value of government. For 250 years black folks did not get the chance to even have an education, slavery on forward and jim crow laws, so now that my friends are feeling this pain, its relevant. I think its wonderful we are all in this conversation together we are a resilient country we will find a way 2020 is basically on pause we need to find a cocktail or something that gets us through this we need to have a plan for 2021. We need to figure out a way to educate our children without putting the rest of society at risk in 2020 2020s a wrap, man this is on pause what Everybody Needs to understand and our legislatures need to understand, this isnt anybody being lazy or screwing up we are at war with a virus it attacked us we need the government to give us a bridge over troubled waters, thats the stimulus package, so that we have the confidence and that Small Business has a confidence and people that work there to come back in 2021 the same thing applies for education. Look, black folks have been doing so much with so little for so long we can almost do something without nothing. Basically the country is feeling like what it feels like to be black, and i say that jokingly but im serious. By the way, we have excelled in spite of and so has the country. Thats well said. You said we need to find a cocktail i have found many cocktails, by the way, this year in 2020 you know, is there any example of a state or an area thats doing it right i think youre in atlanta, right . You talk about first off, which is the new new jersey. Everybody is moving from new jersey to either atlanta, nashville, houston it feels like are there any states or cities that youve looked at and you can say, theyre doing it better than them . They should learn from that . We are a federalist republic and im wondering if theres models that other governors should be looking at. The city of atlanta, mayor bottoms here is doing it right keep in mind, were the only International City in the south. We decided to argue over who got the money, not whether you were black or white the stupid argument versions the division argument or vice versa. I think atlanta continues to set the standard in the city which drives the economy for the state. Rhode island, the governor there and i just partnered on an initiative to create businesses, jobs from big and Small Businesses there through internships, apprenticeships and other stimulus using part of the c. A. R. E. Act money in a creative way. What shes doing is giving people confidence that the government has their hands around not just their safety but their economics and the education too. The education gap is everything. I dont want to downplay that. Weve got to be careful not to wip the battle and lose the war because the black businesses, which we havent covered yet, have a triple hit. Almost half of them are out of business, half since february. Thats a blow to confidence. They had less capital, more covid and less ppp go ahead im sorry. No, no, no, i was just saying, i think its tough because especially working class communities, you cant work remotely if youre working whatever job you may do, if it requires a physical presence, then its hard to do by the way, your note on rhode island is well taken Rhode Islands open table dining is up 42 from last year one of the only states thats up because theyve controlled the virus pretty well. John hope bryant, operation hope have a good lock weekend speak again soon appreciate it. Be hopeful. Still to come this morning, less than half an hours time well be getting the august jobs data analysts are expecting the unemployment data to drop to 9. 8 well bring you those numbers as soon as they cross right now as we head to a break, take a look at the futures this morning. Again, the dow up by 78 points after losing more than 800 points yesterday the s p down by 3. 5 and the nasdaq down by 5 down 136 this morning. Well be right back. Check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Im a sustainability science researcher at amazon. Climate change is the fight of our generation. The biggest obstacle right now is that were running out of time. Amazon now has a goal to be net zero carbon by 2040. We dont really know exactly how we are going to get there. Its going to be pretty hard. But one way or another were going to reduce our Carbon Footprint to net zero. I want my son to know that i tried my hardest to make things better for his generation. High line tech. The dow has arisen the third hour of squawk box begins right now. Good morning, everybody Brian Sullivan will be there yesterday the dow was down by 800 points the technology shares. The nasdaq down 5 this morning out two days. Super high flyer right now the s p is down by 2 points dow futures. The ten year yielding at 0. 64 coming up in less than half an hours time. The Unemployment Rate. Those numbers coming up. Over the last year, one had a drop after you set an alltime high a little bit also, we got above the previous record high here just under 3400 were under 340 for the spdr that wouldnt be unusual to revisit. The real action is in the qqq. This is another one where weve had multiple times over the last few months where its kind of just had these pull backs to roughly that line. Again, 21day average. Youre basically right there its not so much make or break it would tell you if you crossed below that and stayed there for a bit. This is a different complexion of the market. Getting into september maybe its a little more volatility maybe we got extended on the up side that theres a little more giveback before you get more solid support or equilibrium there. Were talking about positioning, sentiment and technicals thats been the nature of the last little thrust higher in the markets. It was a followon momentum chase on top of pretty good earnings and they have been benefitting technology for so long well, investors better hope its not the technicals, mike. The 50 Day Moving Average is 600 points lower than the current price. The 200 Day Moving Average, 2,000 points lower than the current price. We did a test on those a lot more pain to come in technology its not just momentum we talked about the idea of the gama squeeze and what exactly is going on what happened yesterday from wednesday . Wednesday seems like a year ago but it was a nice up day from the markets. Yesterday, trivia question, random but interesting, nasdaq had its largest drop from an alltime high ever yesterday according to Bespoke Investment group. Number one, the algos flipped. We talked about the gamma squeeze, Options Market and people buying call options you have to hedge those by buying the underlying equity when it flips you have to sell by the way, if you hedge those options or equity positions like delta 1, et cetera, which is fancy stuff the hedge fund uses, then you have to sell to make sure your hedge position remains the same selling begets selling why has the market gone up because call option volume bullish bets have been more than double put volume this year according to cboe data in the wall street journal this morning, he said you think about it, guys 68 of options activity has been calls. 32 puts last years valuations the equity market trade. The last couple of weeks in particular, that may get them wound. The monthly options expire today to continue to see that unwind im not saying were going 500 on the nasdaq. It can be another ugly day yeah, a lot can depend on what happens again with that number coming up in 24 minutes the jobs report. By the way, a little context around this. While many investors felt that pain yesterday, the numbers were obviously bigger for some of the worlds wealthiest we watched all of them go up and their numbers climbed as the stocks climbed the top four billionaires lost 25 billion collectively from their net worths jeff bezos was down 9 billion elon musk down 9 billion hes down 19 billion since tuesday. Tuesday to today, thats equal to rupert mourdocks total net worth. Mark zuckerberg down 4 billion. Bill gates down 3 billion yesterday and it changes up whos at the top of the list we told you earlier this week that elon musk became the third wealthiest person based on the stock, his net worth in tesla, that changed yesterday because hes lost so much over the last few days hes back in fourth position he had edged out Mark Zuckerberg this week but now the position has reversed once again. Kind of crazy to watch. Zuckerberg will have to layoff a Security Guard with that drop. We noted becky, earlier in the 6 a. M. Hour, tongue in cheek way to look at it. Elon musk losing 180,000 teslas of net worth thats a lot. Thats almost 40 of what theyre going to sell this year. Wow all right, guys, when we come back were going to talk about a lot of things i was going to say whats that nothing okay. Stay at home stocks were hit pretty hard in yesterdays selloff. Take a look at this. They are down once again this morning. Yesterday you saw slack off by 8 zoom and others, peloton, i think, were down by 10 . A huge run up weve seen earlier this year. Right now peloton down by another 4. 8 again, the stocks have been on a run. We have seen huge momentum to the up side. Well be talking to dan springer, the ceo of docusign coming up next the stock came in with earnings that were much better than expected yesterday the stay at home stocks getting whacked yesterday and today. First a programming note for you. Tuesday night on cnbc you can tune in for a special program, the path forward race and opportunity in america. Jon fortt and Andrew Ross Sorkin will look at black leaders in corporate america. Well hear from ceos, investors and entrepreneurs. Thats tuesday at 7 p. M. Eastern time stay tedun, youre watching squawk box right here on cnbc. Born to be wild moves like these need pampers cruisers 360 fit with an ultrastretchy waistband and 360 fit that adapts to every wild move plus up to 12 hours of pampers protection so anything your wild child does cruisers can too our best ever fit is pampers cruisers 360 fit looks like a Beautiful Day in d. C the nations capitol good morning, everybody. 8 11 dow futures up nasdaq futures down. The ceo of dock cuisine stay at home stocks got hit the last few days the moment, the interview of the day coming up with the ceo of dock cuisine the moment of the morning, the august jobs number coming out here in just about 18 minutes time si synchronize your watches back with more on squawk right after this its easy to get lost in the economic uncertainty. The volatility. The ambiguity. The moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Did you know Liberty Mutual customizes your Car Insurance norttada rust. So you only pay for what you need . Given my unique lifestyle, thatd be perfect let me grab a pen and some paper. Know what . Im gonna switch now. Just need my desk. My chair. And my phone. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. We know that traditions matter more if theyre celebrated with the ones you love. Thats why were proud to partner with the Kentucky Derby. Welcome back, everybody. A Strong Quarter for dock cuisine which is riding the remote work boom the shares are falling ahead of the opening bell as the big run up in all of the work from home stocks cools dan springer is joining us dan, its great to see you today. Thank for having me. It has to be a little weird to see your stock down more than 8 down yesterday. Down 8 this morning when you put out a quarter that blew the doors off. It was a very Strong Quarter i didnt see any weakness. You raised your guidance for the full year. Scratching your head over some of these moves this morning . If i were, i would be scratching my head every time i was confused by the stock market, it would be a scratchy head we focus on what we can control, delivering Great Customer success, putting up great financial numbers and i have a feeling in the long run the stock market will take care of itself for us. Its been a bit of a wild ride if you are looking back how much the stock is up, its up 227 before yesterdays decline what was it like riding it on the up side . I mean, again, we try to keep the focus for the up side and down side with all of our employees. Keep it on as level keel as we can be we see the phenomenon that people get excited about the success weve had and how the market reflects that if we keep people thinking about the stock market, thats something we cant control we smile when we see those kind of successes with the stock and it feels good. Our big focus is trying to get everyone to focus on Customer Success because we know if we drive Great Customer success, our economics will. All right lets talk about the numbers that you put out yesterday in terms of the revenue, it was better than the street anticipated but it was up by a little less than 10 for the estimates. In terms of the earnings per share, that was a blowout number 17 cents a share versus the 8 cents the street was expecting thats more than double the expectations that says the margins were much greater than the street was anticipating what happened . As we scaled the business, were continuing to focus on growth this is a Growth Company and we will shoot for that apex but with that scale does come some pro duct tifts and efficiency then our longterm model tracking 20, 25 operating margin we are feeling on track. Slightly ahead so it wasnt a big surprise for me to see that extra growth drop to the bottom line as you just articulated. Lets try and dig down a little deeper on that because i think thats interesting for people who dont know what docusign does, its an esignature thats way more important in times of covid era when you dont have documents going back and forth, you dont have people face to face where have been some of your big growth areas what are you talking about when you talk about companies or clients thar extend being where and how theyre using docusign i think theres a couple different ways to think about the advantage growth we have received while we, like all businesses, see negativity to the pandemic of course and were particularly concerned with our Small Business customers, where weve seen the up side growth is a lot of companies trying to drive a Digital Transformation and then with the pandemic they needed to get certain of their workflows online and over the last couple of quarters weve seen that dramatic growth. We look at billings as another indicator, 59 last quarter, 61 this quarter our business is doing well the pandemic has increased that. Where weve seen it accelerate more than previously for us with this need to be in a workfromhome setting that you described. Yeah. Ive seen it even with some of our doctors appointments, having to sign off on things because if youre doing telemedicine, if youre not in person in the office you have to sign off on a bunch of stuff ahead of time. Telemedicine is a great example of that. Whats interesting to me, when you think of telemedicine, a lot of people are saying, i need to do that today because for Health Reasons i cannot be in a Doctors Office. Its more dangerous to go into a doctor or hospital because of their concerns about covid19. What i actually think is interesting, whats going to happen post pandemic a lot of people will see this is a better way to do things. If youre in a medical situation, someone might say if i could have a positive experience with my physician without having to spend the time and effort to go to the office, thats going to make busy people a lot better off we see it on the commercial side where people are saying i used to have to faction contracts, fedex them in order to get my sales contract signed. Isnt this a much better process, much faster, lower cost and better end experience. We dont think people will be going back to paper and manuel processes once we get back to normal. I agree with you. Think about it, issues of signing for a mortgage, all the ways can you simplify that, not have to be in person, not have to be sending stuff back and forth. Dan, congratulations on the numbers. Sorry to see the selloff i think youre getting lumped in with everybody want to thank you for your time today. Thank you for having me good to see you. Coming up, the final countdown to the august jobs report just minutes to go. Well talk expectations and get the number of the morning. Predictions and analysis from our jobs pam stay tuned, youre watching squawk box on cnbc our Retirement Plan with voya gives us confidence. So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. You know your kid doesnt step around puddles. And you know cheap leaky diapers are an amateur move. You need luvs prolevel protection. Luvs. Parent like a pro. We are just a few minutes away from the august jobs numbers. We have a panel here this morning. We have the Georgetown University associate professor and Deputy Assistant treasury secretary for Economic Policy and Steve Liesman and Rick Santelli are here. Let me go through and ask each of you for a little bit of a number ahead of what weve been waiting for, what youre anticipating with this jason, well start with you. Its so hard to tell. We know lots of jobs were gained, lots of jobs were lost but ill go with a net of 1. 1 million jobs gained. The Unemployment Rate moving down to the very high Single Digits 9. 8 range around the consensus . Yeah. Yeah all right kate, how about you . Whats your number just in terms of jobs gained potentially and unemployment i was going to say, round number, 1 million, but most important, becky, what im focused on is the mix between private and government if more of the job gains is coming from government and we see a meaningful slowdown in private, that might send a signal i think in terms of the overall Unemployment Rate, im around 9. 9, 10 . Thats a fair point ill make sure i write that down as well. Nada, how about you . So i agree well see some modest increase in the number of jobs i think it is incredibly hard at this time to talk about the job market in broad terms since youve seen the pandemic hit different types of workers, different industries, even different local labor markets in such different ways. Having said that, i do expect the number closer to the market expectation of about 1. 4 million jobs and Unemployment Rate into the high Single Digits rick, you want to weigh in on this i think its going to be 2. 2 million on jobs and a 9 Unemployment Rate. All right youre at the high end of expectations. The reason im on the high side, i just think i understand hot spots have had some backtracking but i think theres new spots opening up and i think manufacturing is going to definitely kick in a good chunk of jobs today as well. Steve, we were talking earlier this morning about how when we used to look at this number and maybe anticipate a gain of 150,000 jobs, we knew that the margin of error was sometimes bigger than the expectations you could have a margin of error bigger than 150 k. Whats the margin of ear rohr or do you have a way of figuring that out when the numbers are this big i dont know. The 95 confidence rate for the jobs report was plus or minus 100,000 in the old days. Ive seen what the consensus has done, one month a first big drop, they were off by 10 million. Theyve come back and gotten better they were off by just 135,000 last time. But a couple quick things that im looking for, becky, in this report the labor force is something im watching down by 4. 7 million. Coming back strongly and that return kind of stopped last month. I want to see if people are counting themselves as part of the job market as rick is interested in the manufacturing sector, the numbers are very good for manufacturing but the job numbers have not been, at least the components we look at have not been how much return we get in the leisure, hospitality and retail sectors are fun to watch another big thing, this idea of temporary layoffs. 9. 2 Million People on temporary layoffs. People increasingly consider themselves permanent or do they think theyre temporary . All of that will give us an idea of not just where things are going in the past but where theyre going. Sorry, becky. Okay. 1. 73 million from sully over here, not that anybody cares, but heres my fear lets say they get a hugely strong number today. Next month could it go down another million . Were only going to grow the jobs if people can go to work. If we get this fear of second wave in the colder climates, we could lose another 1 or 2 million of the 9 million jobs steve just mentioned if we have to relock down. Its not just that, with Unemployment Insurance ending at the end of july, some people were still getting checks at the beginning of august. So it didnt really hurt the ee koc economy as far as this jobs report is concerned. Youll start to see negative effects of that if we dont get any legislation out of congress in the next jobs report and this one. You wont see the lapse of aid. I think public pressure will have ramping up. I know you directed that at me i think this fall notion that its going to get confusing with the fall flu, you know what, theres been a lot of things that have changed in terms of describing the covid effects and thats one area that we just dont have enough information on. Kate, quickly, market implications on a reflex, whether its the dollar or yields i think in general the equity market is going to, unless this is a hugely outsized number, are going to sort of shrug it off. The bigger focus is what are Companies Going to do longer term, not just in the month of august about the labor board we can talk more about that after we get the number, but were seeing structural shifts in how companies are thinking about work force in this prolonged work from home Remote Working environment and i think thats much more impactful. Kate, weve got that number hitting. Weve got to jump to steve for that number. Steve has the number for us. Take it away its just out right now 1. 4 million. Unemployment rate falls to 8. 4 . Thats a big decline here. Lets see what the numbers say rising by 1. 4 million. Unemployment rate falling by 8. 4 reading the release. Household survey down 1. 8 percentage points. Unemployment we knew that. Among the major groups declined for adult men, for adult women, teenagers, also declined for africanamericans which was stagnant, hispanics and for asians 10. 7 . Im going directly now to the table on industries to take a look at what that is showing us in terms of which industries did well a couple of the markers that ive been looking for, retail and manufacturing here private sector was 1. 02 million. That tells you right away that government was Something Like 350. Ill go to the bottom here and tell you what happened to government in just a second here retail trade hang on a second steve while youre looking at that retail trade, 248,000 retail trade and we have Education Health services up 147. Finally, Leisure Hospitality 174. Government up 344,000. The federal side of that was 251, state down minus 2, local government up 2. Big chunk from government and private sector just about a million, becky. Lets jump off on that number kate said that was a number she was waiting for. If the number was more from government, that would be concerning how do you match that up when a million of it came from the private sector 350,000 came from the government, mostly federal government yeah, i think this is the poor rid porridge is the right temperature, becky maybe a little additional boost from census hiring and government hiring but youre not getting something thats so over heated that people will worry about the snap back when the weather is cooler especially if people have to hunker down inside nothing that suggested that private enterprise was struggling in a way that it wasnt in some of the High Frequency data in august this number is going to be satisfying the point i was making before, we really need to think about how companies are going to right size their labor force theyre thinking about the efficiency of their current work force right now and whether or not they have the right skill set for an evolving economy. Overcoming quarters i expect were going to see more companies be opportunistic about shifting both their work force and perhaps downsizing in order to protect margins i wanted to point that out. When you say right sizing, you mean downsizing, right yeah. Right its also around specific parts of their business, like you may see increases in one part of their business in terms of hiring and reductions and others as they get a sense for their their longer term demand and activity will be. Jason, lets look at some of these numbers. Becky. Yeah, go ahead, steve real quickly, and im sure jasons going to want these numbers before he talks. The number of unemployed fell by 2. 78 million thats a big decline meanwhile, the civilian labor force actually increased so thats up by almost 1 million. More people came into the work force. Many of the unploiemployed found jobs looking at the household side of the survey, it looks a lot stronger than the establishment side establishment side just a million. The household shows a lot more people came back to the work force and more found jobs. Thats a good news story in this report. Jason, how would you kinds of characterize that . How would you tackle that . Let me throw one more number into the mix the number of people on temporary layoff, which is also on the Household Survey, fell by 3. 1 million. Theres now i think about 6 Million People still on temporary layoff that had peeked at 18. Rough terms 3 million jobs created this month according to the Household Survey all of those jobs were people returning from temporary layoff. Thats good news thats the healing thats the reopening 8. 4 is certainly a lot lower than i thought we would get the Unemployment Rate by the summer, lower even than i thought it would be at the end of the year, but were still not seeing a lot of job creation for people outside of those being called back to their jobs still 6 Million People on temporary layoff and still several Million People who have withdrawn from the labor force theres a lot, a lot more work that this economy and that work is occurring. Yeah. Now to jasons point to follow up, whats interesting digging through, steve knows this, theyve added new dimensions to the bls. 24 of the work force is teleworking. I thought it would be more that means 75 is not able to. 5. 2 Million People not in the labor force were prevented from looking for work due to the pandemic thats something we dont talk about a lot, which is if you can interview remotely, thats one thing. If you have to physically be present for a Job Interview or whatever it might be and youre nervous about getting it or the business is closed, that could be a barrier to job growth. Absolutely. I think thats exactly right we have to worry about whos not working now and how we get them back into the labor force. I think one thing i would say is that if you look at the job postings moving forward, there are some things you need to watch out for. For example, were seeing trend declines in dow postings for high wage jobs, in tech, for example. That tells us what employers are thinking about whats going to happen towards the end of the year i would also note one other thing which is there is going to be an adjustment in terms of how people think about a new normal of living with the pandemic. Were still seeing those changes come forward how consumers and aggregate demand is affecting the economy and then this spillover effect into the jobs market i think is still an open question as well so theres still some issues i think that we have to watch out for. This is a good report. I think this is i am surprised by the unemployment numbers. I was watching out for the Labor Force Participation as well worrying that that would be masking discouraged workers from looking for work and dropping out of the labor market. Were not seeing that. This is a good report. This is a good news report with some things to watch out for towards the rest of the year kate, we saw the treasury yields twitch a little higher. It seems even though the overall equity indexes, looks like things like banks and the cyclical areas might be aible to catch a bid on this. Do you think theres going to be any lasting effect on that one its hard to separate out the market reactions to the labor Market Report versus a snap back weve been having from this huge amount of activity and, you know, outperformance of the megacap tech and secular winners in the beginning parts of this week looking at the numbers its difficult to say how many value stocks are attributed to the labor reports this morning which is largely in line with labor expectations the bigger thing continuing to move the market is a bit of over sold and discussed earlier this morning, over sold conditions across some of the high quality, high Revenue Growth companies that you know, Like Technology, consumer, parts of health care, et cetera yesterday it shook the market but i dont think were at the start of a value rotation. We need to see a very different labor market and activity market in order to be convinced that we were out of the woods. Guys, its probably worth pointing out to kates point on that if you want to take another look at the nasdaq futures this morning. We did see improvement in the dow and s p 500 futures. Nasdaq is still where it was before things started. Before the number hit it was down by 114 points look at it now, the nasdaq 100 is down by 150 nasdaq itself was off by 118 rick, from your perspective kind of watching this from the treasury market becky becky yeah, steve i wanted to throw to rick he didnt get his 2. 2 million on the household side on the establishment. He did get the 9. Thats where i was you were going there. Sorry. You take it. No, no. Rick, if we were playing by this looking at the 9 number, you were closest with this it was even less than you were anticipating from the unemployment number. What do you think of that . What does that tell you . What are you hearing how does this play out in the bond markets reaction since, as kate pointed out, stock market reactions hard to gauge given Everything Else going on obviously we want the Unemployment Rate to be much lower, but i think whether its the under employment dropped from 16. 5 to 8. 4 i think this is wonderful news and we have to keep a perspective. Theres a lot of people that want to come back to work but their governors dont see its the correct time and some are changing their mind. I think when it comes to manufacturing, steve was correct that we are doing more with less people and keeping up with new demand for many of the same reasons whether its a nervousness or inability to attract workers. I do see lots of signs in my anecdotal area for manufacturing and some of the Service Sector areas allowed to open. I think the most important aspect in my opinion is the notion that we are seeing these trends at a time where, like new jersey, there are states that are starting to really open up in bigger ways so i think this report will lead to even more strength in future reports i think the markets correct with the uber dovish statements by chicago fed president evans, to see Interest Rates kick up and steenen the yield curve its rather expensive but they see it as the correct policy. To see Interest Rates move up on some reports after the fed official comments in the last couple of days is impressive. Jason, as an Old Washington hand, weve been talking about the stimulus package the talks have stalled when you see stronger than anticipated numbers than this, my guess is this would make any sort of resolution between the two sides a little tougher it will be hard to convince look, these are awful numbers. Still talking about 8. 4 unemployment and millions of people, as you mentioned, 6 Million People still on temporary unemployment a report like this doesnt necessarily make it easier to try and get some additional stimulus passed quickly. Report like this should we should understand that part of why we saw this good number in august was the extraordinary amount of stimulus in the months leading up to it still coarsing through the economy in early august will not be there in september and october. I think this is evidenceof wha were doing is working 8. 4 Unemployment Rate, the case for compromising on the 600 a week Unemployment Insurance is much stronger. That might have made sense when the Unemployment Rate was 15 coming down to Something Like President Trumps number of 400 a week, i think now, you know, id like to see democrats say at 8 point be point 4 unemployment we can do that finally, the economy still needs a lot of help as you said. All of that being said, rational person would look at this report and say stimulus is working. We still have a problem. We need more of it we can compromise. Not sure that everyone in washington is rational and in particular i think the republicans have not fell to a big name Congressional Republicans have not felt a need to do something. I dont think this is going to motivate them anymore. Sounds like somebody playing a toy train. Whos blowing the toy train . My kids would love one. Hold on kate, is there any time where wall street and main street are more disconnected . Look, its a little uncomfortable, im not going to lie, with the disconnect and the market and whats going on in the economy. I say that around the small and mediumsized businesses and what were hearing from a lot of smaller operators. Yet at the same time the companies that are leading the market higher are printing cash. Its not completely irrational i would say two other things number one, the policy environment that were in where we know were keeping rates exceptionally low forex tended period of time, where theres going to continue to be Monetary Policy at least even if the fiscal support looks different Going Forward and at a time when analysts turned out to be too negative and we have a huge rash of 12 months forward expectation. The market moving higher is supported by those two facts, higher multiples and higher earnings at the same time, you know, i am a little bit more worried around the medium turn, especially since we may see some slowdown in consumer activity given whats going on in main street theres like an emotional tug of war here steve, what was your point . I wanted to follow up its funny were having two conversations here, both of which are really germane. The one about stocks and main street and wall street really important. The other one about government i agree with what jason was saying about coming down on the unemployment ask in terms of the weekly numbers i actually like this number that was out there, which was to tie the unemployment benefit to a states Unemployment Rate. That being said, looks like theres also an argument for compromise on the state and local government piece of this the data show that we have very weak state and local government hiring right now we cant count on 300,000 more jobs or whatever it was on the federal side those census workers are going to roll off so this number, if you adjust it for just the private sector, just a million and what were on the cusp of from what i hear from all of the state and local no matter what color, red or blue the state is, youre going to have a way with layoffs thats going to hit the economy and that should have some effect on the private sector. Washington may not do anything until its in their face but its coming, pretty clear its something they can get out in front of now. Jason, just to go back and put a finer point on the numbers. You said youd like to see the democrats agree to lower their ask on what they are getting for those additional unemployment numbers. Instead of 600 you suggested President Trumps number of 400 President Trumps number of 400 is 300 from the federal government and 100 from the state. I dont know any state thats laying that out. Would you be okay with 300. President trumps 400 is basically phony. Its delayed it only lasts a few weeks and as you pointed out, the states arent going to be able to chip in the hundred the principle, that was a reasonable amount to get per week, 400 i was talking about that actually legislating it, having all of it come from the federal government could it be 300 . I think 300 would be okay as well ive always thought they should be a function of what the Unemployment Rate is as the Unemployment Rates should be scaled down because of the balance of worrying about work incentives and worrying about supporting people is changing as the Unemployment Rate falls. I certainly think that were not in the incredible emergency were in in april and may, were in a bad recession now and a bad recession calls for different policy response than the complete shutdown of the economy did back in april. I mean, thats really the heart of things, trying to, you know, kind of a moving target and figure out where and how bad the economy is, where the stimulus is most needed and, nada, thats a tricky issue when were all kind of trying to figure out whats happening on a regular basis. You have states reopening their economies and i think its really hard to pin this down and hard for policy makers to get a hand bel on that, too . We could argue should states get 300 billion or 600 billion, the current number is zero thats clearly wrong can argue should it be 200 a week or 600 a week and the current number is zero thats effectively wrong this is difficult. The argument shouldnt be doing nothing. Nada, what do you think i agree with that i think we need to do something. I think we shouldnt ignore the fact that we got here in no small part because of the initial stimulus and influx of federal dollars. On the state and local issue, they are bound by balanced budget requirements so what theyre going to do in response is cut spending, raise jobs and cut taxes. I dont think that should be a point of contention for policy makers how much and what form we can have a reasonable discussion you can have a reasonable discussion about fiscal discipline at the state local level. This is not the time to have that conversation. I think we need to act and at some point the effects of not dealing with this are going to affect us all. I would also add one other point which is as states are reopening we have kind of gotten used to this new normal of somewhere around 40,000 to 50,000 cases a day and if there is a second wave that could prove catastrophic so i dont think we should forget that still dealing with the virus and controlling the virus is really the best thing that we could do for the economy right now. Rick, do you want to jump in on that . At the same time, guys, tomorrow yeah, listen, i hate to bring up politics, but, jason, i agree with jason completely that compromise is possible we are all missing a point here. Lets look to cable tv and look for a small bundle i bet mitch would agree to 400 a month if nancy would agree to 400 a month and for sure trump would sign 400 a month, but theres so much more small bundle, lets move in small steps and do what we can, i agree with you, jason, but i disagree to you as to why its not getting done at least we agree, rick thats the most important part. And thats a good place to stop it is it is. Steve, very quick last point we have to run yeah, i was just going to say that tomorrows wall street journal oped will have an article, i read it every day, i dont always agree with it, about how the jobless claims ended, the extra federal benefit and the Participation Rate increased. Thats something to think and talk about, the effect of of the end of that extra benefit and bringing people back into the workforce. You did have increases before that, the prior month you had a decrease, so 968,000 to a Million People came back n economists debate a lot about the impact of benefits on job search and attaining jobs. I think theres a good argument that maybe at least easing that off somewhat might have helped bring some people back into the workforce. Dow futures were up by 133 before the number, they are up by 237 now, s p futures up by 1, they are now up by 15 and the nasdaq which was down by 114 before the numbers now looking down by about 55 points. Want to thank our panel, steve, rick, jason, kate, and nada. Mike, over to you. The equity features did firm up a little bit onthat report and also the cyclical parts of the market seemed to have gotten a little bit of a bid. Take a look at the ten year treasury yield, also picked up right at the print there and kind of regained some of the yield declines we have had recently, ten year at just about twothirds of 1 , brian. But nasdaq futures, again, you have to watch. Some people on twitter got on me and said options expire every month. Lets keep in mind there is a whole host of new options that are weekly expirees on individual equities, theyve gained a lot of steam in the last couple months that could be one reason were seeing this volatility, it certainly could be another volatile day on wall street tech looking weak at least right now. Lets get more guidance and insight with two of our favorite people on the network, Carrie Firestone and jenny harrington, Gilman Hill Asset management ceo and portfolio manager, both are cnbc contributors. Jenny, i will start with you, obviously what do you make of the recent weakness and are you using it to pick up any stocks that, you know, at a cheaper i shouldnt say cheaper a less dollar amount than they might have been two fadays ago so were fully invested right now, so, no, im not buying more as the markets come back, but what i saw in the jobs report this morning was very reassuring and your earlier guest used an excellent word, she said satisfying i think it was satisfying both from an investor perspective where we look what the longer term might look like and a short term percent with the unemployment number coming down. We are not adding but we have greater confidence in some of the companies that benefit from this like unum and American Express and ross stores. It was a good report for us and were happy with the numbers carrie, what about you . Well, i would agree that a number around 1. 4 was excellent f it was below a million i think the market could be disappointed and we all should have been disappointed this feeding frenzy we have had over the last few weeks at some point would lead to a tipping point. Were not surprised that the market is coming down, particularly the hard hit nasdaq names, big momentum names, they are up 100 , 200 , so far above their 200 Day Moving Average remember, there is no cost to trade. No commissions you know, years ago, five years ago, ten years ago not only would you have a limit how many trades you could make a month, but once you hit that limit or tried to exceed it the cost would double or even triple. Plus already 50 less names, less Public Companies to buy that puts a lot of buying pressure on the names that hit the news all the time, people are at home, they are remotely working, theyre watching cnbc so they like to buy stocks so what we think is if the market comes in a little bit more i mean, today would be a time we might or next week buy charter financial, facebook, simi group, waste connection, American Tower is a name we like there are a number of names in a low Interest Rate environment that we think really have a lot of growth. Its not, you know, all the names, but certainly some of the names. We also think at 19 times forward earnings on the s p if we are around that 3,200 level i think thats a stable support level and we would be comfortable there. Yeah, karen, just a quick followup. I may have heard this shrunken market theory somewhere in the past how much do you think the Options Market is now for lack of a better term screwing with the stock market yeah, i think its a very valid point. Weve been hearing about that more in the last few weeks huge amounts of option trading, big, big volumes and, you know, of course, you know, when you think about how stock splits may have affected the market, i mean, some people mathematically think they shouldnt, but if they had, buying options is sort of a cheap way of taking a position in the names that you see on the news all the time and are driving the market higher. So definitely both on the upside and the down side it can accelerate moves yeah, jenny, i mean, listen, we havent had a lot of volatility except to the up i mean, with he did in march, obviously, im talking about in the last couple of months here again, people got their fingers on that sell button because theyre jumpy from march how do you navigate, how do you be a therapist to your clients because they have battle scars from what happened earlier this year right its funny i started writing a letter to my clients last week and i said, hey, im writing you this even though theres nothing really going on in the market and its quiet and then i had to correct it last night as im getting ready to send it out today saying, well, the volatility has turned. Remember that the s p is still up 12 and a lot of the rest of the market isnt even close, a lot of the rest of the market is still down on the year take a step back, take a pause, understand that we are in an actually really wonderful spot right now given what weve been through to be basically up a little, down a little, flat. So you just need to take that big step back, look at it with historical perspective, take a deep breath, know the companies in your portfolio. Know that it doesnt matter if the jobs report came in at 1. 4 or 1. 2, you know, or 1. 5 if you own Companies Like cisco or at t or verizon those are going to do well no matter what. If you own advi or bristolmyers, they will do well no matter what you need to reassess your time verizon and remember youre in it for the long run. Doc harrington medicine woman we appreciate it jenny harrington, good call making advice, Carrie Firestone as well. A long Holiday Weekend as well mike, the nasdaq futures still down, but they have come off their lows now down just double digits. In it for the long run unless youve been flipping the weekly all options, the two different camps in this market a number of things on the move post jobs report dom chu joins us with some charts investors might want to see. Mike, you mentioned the move higher, the slight tick higher in Government Bond yields, especially on the ten year side of things. We did tick slightly higher, 66 basis points,. 66 also keep an eye on the ripple effects across the yield curve, the difference between two year and ten year note yields that spread is widening ever so slightly take a look at some of these financial names, the big banks in america right now are catching a bit of a bid in the premarket session, starting to see positivity with Jpmorgan Chase up 2. 5 , bank of america up 2 and citi group as well watch the banks, always a big trade for financial days when it comes to data and or Interest Rates. One other place to keep an eye on whats happening with gold prices we did see a decently down move in gold prices on an intraday basis on the heels of those numbers, still, though, co mention gold down on the day 1934 the last day on that intraday move. Watch, gold, Interest Rates and financials i will send things back to you. Thank you so much folks, again, checking this out, the numbers coming in better than had been anticipated. 1. 4 million jobs added in august, that was about in line, the Unemployment Rate falling to 8. 4 dow futures went from down 133 to at this point up about 215, s p futures turned, too. The nasdaq still weaker. Brian, mike, i want to thank you guys for being with us this week, its been great having you here meantime, everybody, make sure you join us back here on tuesday. Squawk on the street starts right now. Good friday morning, welcome too squawk on the street, im Carl Quintanilla with sara eisen and kayla tausche. Coming off that biggest drop for stocks since june, futures are mixed as the dow and s p look to stabilize, we will see about the nasdaq the august jobs number up 1. 37 million in line with consensus, that Unemployment Rate much better than expected down to 8. 4 and we will talk to Vice President mike pence later on this hour about that data. Sara, as we dig into it ourselves with pretty good numbers on government hiring, workweek is up