Transcripts For CNBC Closing Bell 20240712

Now were well off those worst levels as tyler and kelly were discussing financials and industrials are in the green tech though does continue to lag even though it is bouncing back. Sara, were well off the lows but in the red just about. And in the red for the week which breaks the five week win streak plus, turning the page well speak with Mark Thompson whose tenure comes to a close as of tuesday that stock climbed more than 400 under his leadership. And the ceo of Hawaiian Airlines will join us after his company scrapped change fees and hawaii struggles with increasing covid19 cases mike santoli tracking the selloff and the come back in the market josh lipton has details on a volatile day for apple and joining us to break down the moves in technology, dan niles from april hl one capital. Start us off here on the Broader Market and what you think is important. Yeah. Sara, a pretty good little day and a half rinse that we got from the highs on wednesday. Look at the s p 500 in the shape of this chart might be a little bit familiar what happened back in june was about a 7 threeday pullback. Then the market found the footing. Got to about 8 high to low on the nasdaq a couple things with he did as we revisited that old high, actually undercut it a little bit. A lot of people also focused on this area right here around 3300 where we had that liftoff move higher led by the tech stocks that seemed like it was getting just a little bit overheated and thats where we started. So people were looking at those down side targets. Then we found our footing before we even got anywhere near there. Look at the nasdaq 100 its a more exaggerated version of what we said before now ive been pointing out this sort of trend line 20 day, 21 day. Its above it now. We did break below it during the course of this day so again, this is another one of these things can you look at it and say, nothing really was too disturbed in it terms of the trend, even if you did see a lot of pent up selling getting done in a very short period of time also fun note to say that once that story this morning came out about from the ft that soft bank was a huge buyer of tech call options and this whole runup, that is the bottom of the intraday trade the i dont know if that is a causal thing about ut wh but when you get the back story of the stress, its who got free then maybe that suggests it wasnt some kind of an on going stress event also, take a look at the equal weighted s p 500 against the nasdaq 100 this is a big complaint, right wow, its just a handful of bid growth stocks. Now on a one month basis, youre almost even. Look at the same thing on a year to date. You see there is a very, very widespread the kit can narrow or not in a couple ways. Coming back a little bit not a lot of upside. Today it is outperforming again. We have a comeback for the average stock against the huge winners of last couple of months, guys dollar also reversed earlier gains. I want to talk about the reaction to the jobs report, mike, and what we learned this morning. Because obviously 1. 4 million jobs added that is a good story 8. 4 unemployment. That is certainly progress were down for double digits it does feel like a short term long term story short term, things are good and moving in the right direction. Longer term, more permanent job losses, more people out of work for longer what does the market make of it . Had. It was a relief the bond market suggested that i think that Household Survey is strong thats where the Unemployment Rate comes from. They go up a little bit. Were a lull bit ittle bit in tt spot were getting the ones that are more likely to come back to your point, i think it could solidify around the idea that you saw the uptick in permanent layoffs. That means probably a slow road back to full employment after we get into the end of this year or early next year. That didnt really capture the head Monica Lewinsky today i think it was something that is in the back of everybodys mind. Of course, what we also know is thats what the fed is very mindful of and why theyre going to stay accommodative. Mike, thank you for that the s p 500 down a third of 1 with 55 minutes left. Lets dive deep near apple which has been all over the place this weekend and today. Another volatile session turning in its worst day since march josh lipton has more on apple for us, josh thats right. It has been a volatile day for apple. It was down 8 but then bounced sharply off the lows here despite that recovery though apple still lost about 200 billion in market cap since wednesdays open bigger than the market cap by the way of pepsi, nike, oracle, costco, mcdonald and exxon apple is looking to avoid a Third Straight down day here the stock up is over 120 for the past year and 50 over the past three months alone. And some bulls remain big believers that the team at web bush saying that apple is the top 5g play back to you. Josh will you pleaseton, thank you. For more on this wild week, lets fwli dan niles dan, good afternoon you to great to see you thanks for joining us. What do you think the trigger was for the selling that really took off yesterday yeah. Its like a recipe you have the market really ripped through august, driven by stock splits at apple will and tesla which drove both of the stocks up 30 and close to 70 and, you know, you cut the pie into eight pieces instead of four doesnt do that if you go back in history and look at stocks, the stocks to end have problems a couple weeks after that, also, you know, getting a vaccine on november 1st which we heard about on september 2nd, that was a big positive then hearing the fed at jackson hole on august 27th saying theyll let inflation overshoot, those are positives. It just drove the market to an overvalue level. And then yesterday you actually had see yaa come out and they we expected to beat and raise they cut the forecast by 17 for the upcoming october quarter and they have, remember, july quarter end. So they had an extra month in there. What they said was business, you know, really slowed down in the month of july. The it was across all geographies. The it was across all customers including the big Internet Service providers. And that made people say, okay, well, you know, maybe we got a little too optimistic. Honestly, could have been anything that triggered that but that was to some extent the trigger that helped along with the dollar having bottomed, et cetera should just mention the dow went positive there as you were talking, dan to that point, in fact, how big a difference does it make in your mind as to where we go next that today we were down as much as 5 on the nasdaq and a bounce quite significantly off those lows do you feel this moment is a major bursting of a bubble and we have a long way to p pull back or this is brief and people are going to buy this dip . Its hard to tell we have an hour left to go, right . Weve seen the market down 3 and now up who knows where its going to close. People have a long weekend to think about how much exposure they have. And so i think it really comes down to stock picking. If i think about what we did in the First Quarter of the year when the market was down 20 , we said okay, these are the name we think will benefit the bounce has been the fastest in history as well so what were trying to do is stay out of that and focus on, well, where do we think the names that have catalysts at the end of the year there were naumz that were up what do you we think can be up in the Fourth Quarter . We dont really care if the market is up or down valuations, you know, they dont matter until they do we had an interview a few weeks ago. I said, you know, valuation is a terrible timing tool when the market sells off, people go and actually start looking at how expensive are things and so were trying to stick with stuff that we think is a lot cheaper relative to the growth rate and thats where we get more excited the were actually buying more than were selling today unfortunately, the market ripped up a lot the prices are not as good as they were. I think is not the end of this, at least in my opinion but, you know, well see what happens. What are you buying which sort of names do you think offer some relative value here, dan . Yeah. No, its a really good question. For me, its always about risk reward. I put out a tweet on that saying, look, what we buy is based on fundamentals. So what do we like we like 5 g. What we like is qualcomm, for example. Thats a name that we, you know, would like to add more to. There is a memory name that supplies into apple. This memory name is down over 10 year to date and memory pricing after going down from april just started to turn and so i go, okay. We can buy it down 10, 15 year to date relative to an april that will is still up 60 . Thats way better for us qual co qualcomm, similar situation. We think it will grow three times as april this will year. The final space that were looking at is the Gaming Companies because weve got new consoles coming for the Holiday Season lets face it. We dont have a lot to do right now and were stuck at home. People are playing video games to keep themselves engaged no, you like that for a while. The stocks have done really well dan, you mentioned apple a bunch of times are you actually trading around apple and tesla which are really the two stocks at the center of all the action yeah. We are the thing we did is when we saw the stock split, we went back and did an analysis and we looked at a lot of the faang stocks you had netflix with a split before amazon, apple and the older names like oracle, ibm, nvidia, et cetera. We looked at them. And on general from the day they announced the split to the day they split the stocks were up 13 . Obviously in, the case of apple and tesla, closer to 30 and 70 . The so for us, we shorted those on august 31st we covered tesla already were deeping apple. That is a hedge against the long we like. Just because you cut a pie in eight pieces, its not more valuable when you cut it into two pieces we use that to hedge our other positions. We think about it as a for the folio and not one offs dan, quickly, to round things off, if we were to have a vaccine tomorrow and life went back to normal, would apple rise or fall . You know, its a really fascinating question because, you know, one thing that i guess shouldnt be that surprising given i had to buy a mac for my kids and ipad for them doing remote learning, apple is really benefiting in the hardware business from remote learning, right we all had had to go out and figure out how to do this stuff from home and for our kids as well so, you know, i look at apple will and i go for the growth that im getting, theyre growing 5 revenues this year. The 4 compounded over the last five years but im paying the higher multiple than i am for microsoft, google or facebook that are growing 2 to 5 times faster over a five year period of time. Im thats not a name i want to be in id rather be in one of those other names where i think there is a lot more runway for growth and can outgrow the market for a long period of time. So april sl not one of my favorites. I think theyre having a good quarter, et cetera i think its too expensive and thats kind of how i view it anticipate has completely turned around today. Is now up. 5 after being down earlier. Dan iles, thank you for joinin us my pleasure on the big tech trade. After the break, turning the page shares of the New York Times company up more than 400 under Mark Thompsons tenure as ceo. As of next week, there will be a new person in the c suite. Will well discuss his departure and thoughts on future of the media and advertising next welcome back the dow is now positive two points were all over the map today. Shares of the New York Times up more than 400 under Mark Thompsons tenure at ceo he been at the helm eight years. Thank you for talking to us as you step down as ceo no doubt you ushered in the digital era at the New York Times when so many other newspapers around the country died where is the next growth going to come from i think at the New York Times we built kind of like an engine of growth which is going to go on growing i am will one of those that believe its going to be a really big paid market for journalism in the u. S. And across the world there used to be many, many tens of millions of americans pay for news they will again i think in the future i think this pivot in music and digital and online subscription for great content will begin to tell same story and use it as it has in music and entertainment i know you get this question all the time and the trump factor and this boom in terms of News Consumption what happens if he doesnt get reelected a lively news cycle has always sold newspapers will more people watch cable news and all the rest of it. The Harvey Weinstein investigation had nothing to do with donald trump. And both of those also led to very significant spurts in subscribers. Were living in a very noisy, uncertain world. I believe thats going to continue whoever works in the white house in 2021. Just going back to the overall tenure, when you joined 640,000 readership, its know over 5 million, extraordinary and congratulations on that. Did you expect that percentage shift from hard copies to digital would be as profound as it was i certainly thought hit potential. I took the job they ask you to become a ceo of a company. You become an investor the stock was about 8 you think, you know, i do know better than the market can i see something there which the market isnt seeing . In this case, hobbestly thought this is a good brand the they havent destroyed the newsroom in it the way that so many others have we have to fix the way of getting the great journalism in if front of people and build a big business i didnt see why we couldnt do this i couldnt have put a number on it i really did walk in thinking if we can only figure out a way of unlocking it, there is real potential. I hope some of the payback is in in equity rather than just cash impartial alt is not something you cared about but dictated to you by the government and regulators did you find it hard to pivot to running a company that in print in the u. S. Print in the uk is the same, didnt have that regulator over the top enforcing impartial al impartiality my job at the times was chief executive. For the first time in my life i didnt have editorial responsibility it feels rather not having editorial responsibility but, of course im a passionate supporter of the time. T times doesnt have the formal obligation in the newspapers it still has a very deep commitment to being objective in the news pages. Its different in that the editorials for many years have on balance lent left and it has a slight preponderance but there is a real commitment to objectist and in very polarized times, you know, many people when they talk about wanting impartial journalism, they mean journalism which agrees with the world view i he think what were seeing and the noise around impartiality has to do more with the growing splits and the political discourse much more to do with that than it has to do with the New York Times as such. And that brings us to facebook we really want to ask you about this move yesterday. Facebook announced that its going to ban political ads and the week before the election which has obvious loopholes and reminder that there is a big misinformation problem on facebook when it comes to people reading conspiracies and fake news and fake political ads, frankly. I dont think this particular issue is a threat to the New York Times. I think in some ways the New York Times stands there alongside the wall street journal and the fda and many others we stand there as a, you know, if you come to us and to our destination, were accountable for what we do well stand up behind everything that we do were reliable in some ways, i think were not part of this having said that, i think facebook and i talked to Mark Zuckerberg and others at facebook on the issue of how they deal with the many, many issues i think theyre trying to deal with it. I think its a real testimony to the difficult place weve all come to including facebook its just so hard to do anything without everyone becoming worried about the potential unintended consequences of what theyre doing. Clearly the platforms have chosen well, they developed into really quite merky environments where real journalism and facts bump into and get blurred with nonsense and hostile propaganda and some paid for by foreign governments. Its a real mess i think one of the to dos for the world, you know in, 2021 and on wards is we really ought to try to make sure somehow or other we unpick this and get back to a point where the public get really clear and direct access to news they can trust. Mark, what is next . You are going back to the uk and take over a newspaper or broadcaster there . Im expecting to spend most of my time in the united states. I mean, i think i see, you know, kind of both jfk and heathrow in my crystal ball of a future. So maybe a bit of both im not going to be taking over another newspaper. Ive spend four decades in media. Im not going to sit back. Im looking for new challenges no doubt will be beginning to make decisions about those in the coming weeks and months. Mark thompson, thank you so much for joining us. Congratulations on a very successful tenure at the New York Times. Thank you both very much. 35 minutes left of the session. Sara mentioned briefly positive on the dow now briefly negative again the nasdaq remains the lagger. But only down 0. 6 it was down 5 two hours into the session today. After the break, blackrocks analyst will give us his opinion. Stock slices. 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. Schwab. Riaccelerate your investments to be is or pull back . Een. Change the plan or stay the course . Thats why Northern Trust is here. With specialized expertise. A history of success through every economic climate. And proven strategies rooted in data and analytics. Giving you more control. Clarity. And confidence. For now and whatevers next Northern Trust wealth management. Stocks with a massive come back the dow was down more than 600 points at the lows joining us via phone is the manager of black rock Allocation Fund great to you have with us. Thank you for joining us i start the same question i did with dan niles, what do you think triggered this pullback . The short answer is i have absolutely no idea its always easy to invent the causes we can talk about season alt and stock splits the simple reality is the market had an enormous run. That run accelerated in august you had a lot of crowding in the position a lot of that was in option form Retail Investors piled into the momentum names that caused dislocation. So the short answer is i think the market was likely to pull back off the overbought condition. The fact it happened yesterday rather than tuesday or next week is not obvious this was bound to happen im looking at your top holdings do you feel a little overexposed giving the nasty correction we saw that was possible in the last week . Some of the names were overweight but they represent very Large Holdings within the index. As we spoke about i think in past broadcasts, weve been trimming back a little bit long term i still think that many of the names in technology communications, software, these names have tremendous profitability. They have earnings consistency the market likes that. Having said that, we have been trimming back on many of the positions in favor of some of the ones that have not run up as much somewhere in tech like temperatures, others are in some of the old economies we like some of the transport names. There is nothing wrong with keeping overweight in tech, but its prudent to trim that back given the extent of the run. Interesting moves youre making my only other question is what do you do to hedge yourself against the risks and uncertainty whether theyre on the economy, the virus, on the political situation and the election if youre feeling a little nervous, are treasuries still a good hedge i think thats an excellent question some ways more important than why the correction happened yesterday. Treasuries are still a hedge i think to the wording of your question, theyre noes as good a hedge. The simple reason as you eluded to is at 70 basis points in the fed committed to not going negative on yields, there is a limit to how much treasuries are likely to drop even when the market goes down a lot as we saw yesterday. Gold, we think there is an argument for gold. If you look at gold, its been trading risk on. So this is a bit of a boring answer its the only one left one thing you look to is to raise a little bit of cash to dampen the equity volatility particularly coming into an election russ, thank you very much black rocks global Allocation Fund time to get a news update with 28 minutes left of trade sue herrera . Hello, everybody. Heres whats happening at this hour h joe biden countering president trumps comments on the strength of the economy saying you cant have a comeback with 1,000 americans dying every day covid19 biden also saying the recovery is passing many by talk to a lot of real working people i ask them, do they feel like theyre being left behind. Ask them, how do they feel about the economy coming back . Youll find they dont feel it and in south dakota, one of the few state fairs taking place this year is now under way even as new vcovid19 infection surge to the highest per capita in the nation. Attendees are encouraged but not required to wear face coverings. And in southern india, seven people are dead after an explosion at a fireworks factory. Distraught family members are looking for survivors. Thats the news update this hour back to you, sara. Sue, thank you. Still ahead, Hawaiian Airlines joining manufacture the peers and cancelling most change fees this week. Were going to talk to the companys ceo about that move and the outlook for jobs and cuts straight ahead. Of as we head to break, here is a check on bonds for you our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. 25 minutes left in the session. Heres how we stand. The dow climbed positive earlier in this hour we were sharply negative earlier in the session today the nasdaq was down 5 only down. 6 . After the break, shares of moderna falling ach slowing enrollment in the vaccine. Well discuss that and this weeks covid19 news with dr. Scott gottlieb [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Im a delivery Operations Manager in san diego, california. We were one of the first stations to pilot a fleet of electric vehicles. Were striving to deliver a package with zero emissions into the air. I feel really proud of the impact that has on the environment. We have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. Dow is heading south again with a half hour left of trading. Moderna stock taking a hit after the ceo told cnbc the Company Plans to slow the enrollment of the clinical vaccine trial to make sure it has sufficient representation of minorities most at risk for covid19. Acarding to the data, of those enrolled so far, twothirds are white, 20 hispanic or latino and 7 black joining us now is dr. Scott gottlieb, former fda commissioner he is a cnbc contributor doctor, always good to check in with you on a friday i think my biggest vaccine question of the week has to do with all the politics and the cdc telling states to prepare for vaccine by november 1st. Do you think as someone who has led the fda, the fda would ever prove even for emergency use a vaccine for political consideration . Can you clear this up for us i really dont. Im also on the board of pfizer pt of pfizer is developing one of the vaccines. I think there is integrity in the process inside fda i think if the career staff, the professional scientists felt they were pressured to make a decision they didnt fully believe in, especially on something as important as this, i think you would see a lot of turnover in that agency. It would become very apparent to the American People that the process was pressured. The i just dont think anybody is going to do that. There is a lot of guidance and regulation that governs that staff by career scientists that have been doing this for a very long time. At the end of the day, these decisions are probably going to go before public Advisory Board meetings as well there is a lot of public transparency as far as how this decision gets made. Thats good to hear the other question and this comes up a lot, i hear from people is that i dont want to take the first vaccine i want to wait until its fully fda approved, until we have more data, more results what are the potential side effects that you might worry about from a vaccine without being able to see the long term impact and having it rushed through like this . What sort of concerns . And what did you see were there vaccine thats got to this phase and not able to go through because there were side effects or safety considerations there were vaccines that were put into very large Clinical Trials and ultimately didnt get approved because there were certain side effects that made the risk benefit profile unfavorable. I think this is likely to be a very staged authorization or approval its going to be an authorization to initial access under emergency use authorization where initially the people who have access to this vaccine are going to be people who are higher risk of contracting the virus or having a bad outcome from the virus based on the Clinical Data if the Clinical Data shows, for example, this vaccine is effective in older individuals, you could see a process where the initial people who get access to this are going to be older individuals, maybe people in Nursing Homes also Health Care Workers who are at higher risk of contracting infection. Then you see a lot of Data Collection around that initial availability so its almost going to be like a large registry where theyre going to be collecting additional data. Theyre getting access to the vaccine, that is a 2021 event. This is going to be a staged process with different increments of people that get access the risks you worry about, there is a theoretical risk that the vaccine can get the virus. That is a theoretical risk there is not a lot of evidence that could happen here but its one of the risks you want to discharge. The other theoretical risks you worry about is weve seen certain post viral syndromes associated with coronavirus. We dont fully understand. And if the epitope, the protein causing the immune system to respond badly to the virus is the same protein that is in this vaccine, the spike protein, there is at least a potential that giving people the spike protein as a way to create immunity can unmask the side effects. We see that with flu flu causes certain side effects. We know the vaccine has some of those same side effects associated with it and so thats another kind of theoretical risk you want to discharge. You should be able to follow that up. You shouldnt have to wait years and years to discharge that kind of risk. But do you want, you know, a couple months of follow up on a very large data set of people. And thats why were looking at i think getting into november time frame, maybe even a little later until we have that level of data on a sufficient must be of people from these trials. Dr. Gottlieb, you are concerned as we head into an extended Holiday Weekend about possible spikes . Do you think people in general have learned their lessons from the early summer sunbelt time second waves im very concerned about the fall i think were taking a lot of infection into the fall. There is this setup for greater spread not just because people are potentially going to be more complaisant. I think the American Public is exhausted from what weve been going through with this virus. But it is also the fall and winter season. The respiratory path agains spread more. Were going back to school and College Campuses see recreation alpha silts reopening, people moving indoors as the weather cools solt there is a lot of setup in the fall that create conditions for the spread of normal respiratory pathigens like the flu and certainly this coronavirus. Much. When do you expect to get data on antibodies and when can we expect that to be put into practice everything youve seen and what i red and what i heard is that could actually really help bridge us to the vaccine by protecting the elderly both preventatively and also in case they get sick. Unfortunately, not going to have enough supply of the antibodies to be able to use them as a bridge to a vaccine. We can certainly have enough supply to help rescue people who become very sick from covid19 i think these are one of the opportunities to really cut mortality even further heading into the fall and winter we substantially cut nor talt from covid19. This is one of the disappointing features of the development process, the trials have enrolled much more slowly than we anticipated base ond some of the public reporting the time line to get these to the market is pushed out many were hoping it would be available for the fall part of the problem is there are so many Clinical Trials running. And so many trials that are potentially more attractive for people to enroll in. That is harder for the manufacturers of the antibodies to enroll in the Clinical Trials thats been really disappointing. The vaccine trials have gone more quickly, i think, than some of us anticipated. The andy body trials are going more slowly. Great to see you. Thank you for joining us thanks a lot. The dow down more 100 points. Nasdaq down more than 1 we have breaking news from the fed chair. Steve liesman has it for us. Thank you very much Jerome Powell in an interview with public radio saying that jobs report is better than he expected it to be. Making a second fed official to comment. But he says it could take years before the economy is fully recovered. He says low Interest Rates are here for an extended period of time he says that there are Enormous Economic gains from people wearing masks. Ill give you one quote here from the article that npr wrote about. We think the economy is going to need low Interest Rates which supports low Economic Activity for an extended period of time it will be measured in years as you know, we have a bit of a split going on between fed officials that are signalling that something is going to april in terms of qe and outcome based guide anz in september others say it is not needed. He said he wasnt in a particularury to provide any additional assistance. The governor and one other person has also suggested maybe we want it as soon as september. He jind of joined him. Powell doesnt seem to be saying i dont know if he was asked well be reading the full transcripts, as to whether or not he thinks something ought to happen relatively soon in terms of additional fed support for the economy. Sore you. We havent heard the full interview obviously. St in terms of what is written up here on the npr website, it definitely leads with him saying i thought the jobs number is a good one we have quite a few people back to work. I dont know whether that spooked the market a little bit. Clearly no one expects that but that was the lead from the npr writer yeah. I mean, i think what they did is they led with the most the newsiest thing its the policy thing that i think is interesting here and whether or not powell wants the markets to believe going into the meeting which i believe is the week after next to expect more from the fed and youre right, woo envelope to read the transcript well have to read the entire interview. I was going to say, steve, and he decides to talk they need to explain the new inflation policy the change they made it is intuitive to target higher inflation can be bad for the economy to have too low inflation. Either way than just the fact he is talking it is interesting ahead of the september meeting. The market started to come up here a little bit. You nailedit. Its interesting the fed chair only gives interviews to the public never sat down for, i guess greenspan did after he left. Bernanke did after they left they dont sit down with the Business Press because we do what were doing now they have no problem communicating with markets what they want to do and youre right about. This the reason why powell is giving this interview is to communicate and explain why theyve gone to this new regime. There is inflation nr is an outlet they spoke to. Dont get me wrong. Lets address this to both of you. What would each of you give to get that next interview with the fed chair . I think steve is right. You go ahe had had, sara. It is too technical no. I think there is a lot of value in powell sitting down i wouldnt give a thing. Im just doing my job. When powell understands the importance of coming to cnbc, id interview him. Thank you exactly after the break, the final minutes of trade of a wild week were going to take you inside the market it will break the five week win streak the dow is lower by 50 points. L al also, we went positive at some point this hour. I keep working my way back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start trading Commission Free today. Weve got just about seven minutes left in the trading day. Were now in the closing bell market zone. Cnbc senior markets commentator mike santoli here as always. Today we have capital usas keith bliss here as well welcome back, keith. Taking a look at the Broader Markets. Stocks bouncing back off the lows still under some selling pressure here. S p 500 and nasdaq on track for first negative week in the last six. And it is Technology Leading us lower today. It led the rebound earlier in the session. But, mike, what sort of damage has been done so far to the high flying tech names that led this market i say if you look at the market, its given back half of the gains it built up in august. Coming into this week. So it really is not necessarily cutting into muscle yet. The it is swift. Its a pretty vigorous shakeout, i would say. The two things that reallywere i guess, nagging this market is overextended sentiment and overextended positioning a lot of overaggressive activity leading through august high momentum stocks concentrated in those areas. Thats been to some degree alleviated with this pullback. And its been led by, as you say, the winners of july and august which means its not so much about stress over economic ma macro issues theyre still going up which is rare at this point mostly, its about positioning and sentiment getting corrected. Whats unclear is if its enough to clean things up on that front. Do you think it was enough to clean things up or do you think there is going to be a little more short term weakness i think were going to have a little bit of a churn in here now. Weve been vacillating between overbought and oversold signals if you look at the s p 500 got overbought in that index friday, monday, and we actually hit an oversold signal this morning intraday so that talks to sloppiness thats going on. One of the things i point to is that when you have narrow rallies or narrow selloffs like weve had, then the snap back in either direction can be swift and severe thats what we have with the big tech names, trend names. Theyre 24 of the s p 500 index at one point when they started selling, thats what took the whole index down im not convinced were in the midst of a larger, broader selloff. I think were going to have churn. Typically volatile month which is september its down more than anyone would think. We were looking at a stock that was going to be down 19 for the week tesla, moving higher towards the end of the session in fact, its up 3 . Still it is on pace for the worst week since july 24th really, weve had had five consecutive weeks of tesla shares moving higher this will be the first time in five weeks that the shares do not move higher over a week. It is down 16 , however, since the tuesday high and thats really when they hit that 500, 501 intraday on tuesday. Now you see it trading at 420. Take a look at the ev stocks a mixed bag for these guys to day. You see nikola is lower as well as i believe work horse is also lower. These are the stocks that people are watching closely and saying okay, whats going to happen with these guys . How much do they move in relationship to tesla . But again, a day where tesla many thought was going to be trading and ending well under 400 a share, now up about 3 . Guys phil, thank you mike, clearly with apple as well, only down 2. 5 for the week, the last 24 hours i guess has been easy to forget they started the week positively. Yeah. And they actually cracked first before the overall market did. The so they had a little bit of a lead in terms of, you know, the concentrated investor attention behind these stocks and tesla in particular. So, yes, it was above 502 tuesday at the high and now 419 the tesla code is not going to just go away on one big pullback from a huge all time high. We are approaching the close. We have two minutes left in the trading day. Time to look inside the internals. What do you see today . Reasonably i had given the selloff. You look at 50 50 right now. It was even when we were further towards the lows of the morning. Much this is a real mixed picture. Same thing as yesterday. It was not comprehensive everything going down. So as much as the big cap stocks are taking the s p 500 down, the average stock is holding up a little better. Take a look at a week today basis. This is an Economic Indicator as well the Consumer Finance sector of the s p 500 up 3. 5 . Up real strongly today after the jobs numbers compare that to something more of a new age play. Mobile payments up huge, you know, going into this week down almost 5 and then the volatility index is giving back some of that inflated gains that we got going into today it still seems elevated. But really exaggerated pop yesterday. Theyre trying to hedge through index puts and things like that. That is easing back a little bit. Just under one minute left of the session. Were down 0. 8 on the s p 500. The banks index up is 2 the yields are higher. The ten year is back above 0. 71 . Oil is soft all sessions industrials, materials joined financials in positive territory. The underperformers are tech and Consumer Discretionary and communications services. Of course, as we said around 11 00 a. M. We were down 5 so well off the lows the dow is down 150 points or. 5 the s p 500 down 0. 8 . It could have been worse. Still lower. Welcome back, everyone im sara eisen with wilfred frost and mike santoli take a look at how we finished up the day on wall street. Down 160 points on the dow goldman sachs, positive contribution on the dow. But you had names like salesforce, crm which is a huge winner lately. Dragging on the average. Take a look at the s p 500 down. 8 which does leave us lower. More than 2 for the week. So just if youre talleying it up, were up 6 on the year. Only 4. 5 away from a record hichlt you did see weakness in the tech names, Communication Services names, Consumer Discretionary names. All the winners in the market with financials, industrials, and materials closing up nasdaq up 1. 2 it got hit hardest in the overall selloff. It was the biggest winner and still up on the year 26 on the week, its down more than 3 russell 2,000 index of small caps faired better than the rest of certainly the tech markets down. 6 sort of what we saw yesterday. The selling of technology and some of the mega cap growth names was met by some buying coming up, well check the pulsz of the Airline Industry when we speak exclusively with the sew ceo of Hawaiian Airlines they furloughed about a third of the workforce. First up, joining us to talk about the market is keith bliss. Jeff paulsen and mark smith from ubs. Welcome to everyone. First we send it to you, mike. On a week ahead of a long weekend that was met with selling. You wornd us about september a lot of people are warning about september. What is interesting is august had tended to be a little rocky sometimes in the market just blew higher right through that after strong august, yes, september there is some kind of a give back. Right now i think you can characterize it as a shakeout. It was so far extended that im not sure that we can say that two days of the switch back is alleviated that. If you need the equal open sut reaction if, you need to get the stocks to be oversold, its not like theyre near valuation support. That is the question otherwise, i dont think the market is doing anything all that unusual as i said earlier, its not really predicated on m rachltaco stress its mostly about the equity market reacting to some excess thats have built up in the equity market. Like mike says, i dont know if its enough or not i think theres going to be a pretty big buy in the dip out there. Coming up in the big rally off the lows in march, there is a lot of portfolios out there that are underweighted and have been underweighted and waiting for an opportunity maybe to reduce the various bets so i think if we get a pullback at all, we might see, you know, some buy on the dip. They have a huge amount of the portfolio they have to redeploy. And that might be why were seeing the rest of the market both yesterday and today the Broader Market doing much better as well as the concentrated techcoms doing worse. Were selling really large cap positions and spreading it over much bigger part of the market i could certainly go lower st i think theres going to be a bigger buy the dip fit comes next week or the week after. I think its going to be fairly solid. Mark, what you are telling your clients to do well, the election is in november youll continue to see the volatility over and over again until the election youre seeing that we almost lost a million jobs. We gained a million. But if you look at the numbers, almost a quarter of those jobs that we gained are government jobs that are temporary due to the u. S. Census program. All 200,000 jobs and then the other 100,000 just local municipalities hiring folks. The were pretty much flat with the good news and bad news and i think everyone is waiting to see who is going to be, you know, in the white house come january 2021 and thats going to determine a lot. Keith, rates particularly, theyre all over the place ten days or so after the fed announcement is that i agood thing. The steepening curve is good for financial companies. I think you saw that reflected a little bit in the russell 2000 on todays trade outperforming the others they have such a large constituent group of Financial Institutions inside that index but listen, rates, the equity markets hate rising rates. Its one of the big risks, the four risks i see that can derail what i consider a bullish sentiment, a bullish theme inside the equity markets. Its something we have to look at but heres the thing, the bond market, i think, tried to do battle, wage battle with the fed over the last few years. Every time it seems to lose. And the fed has an objective where they want the yield curve to be. Im not too concerned about rates rising theyll come back out. I think well still see money flow into equities thats despite the trade we had the last couple days well catch a bid in this. We saw today there is a buy the dip bid that came into the market i think people just wanted to get out of positions i didnt like the sloppy trade there is headline risk that is coming back into the market as we get closer to the election. So there is the politics and the fed, jim but what about congress . Senate comes back from vacation, what is the expectation right now in the market that we are going to get some sort of extra relief the stock market coming off a record high. Right i think, sara, to me, i think the expectation is tough to know for sure i think the expectation is it will be there if we need it. If the data goes south on the economy, the reports or the market sells off in a bigger way, then i think well have a coming together of boenl sides to bring together another stimulus package of some form out. Were in a corner that could be growing at almost 30 in real gdp terms. Anticipate were talking about the need for stimulus. Its a disconnect in my mind so its very possible if the data keeps heading northward, there wont be any new policy jim, are you saying we dont need it . There are 29 million Americans Still collecting federal and state Unemployment Benefits. Well, i think if you look at the data, remember, were growing, like i said, 30 of real terms this quarter. How much faster do you think we can make that go, sara we created a huge divot. What about Fourth Quarterer were not going to recover that all in a couple months. If we grow at accelerated rates that weve been growing and continue to create decent jobs every month, well get there there are negatives of continuing to run bigger deficits i wouldnt be shocked if the data stays good. St if the two sides wont agree until after the election clearly weve known somebody has been buying call options which were getting increasingly inefficient ways to get exposure to the upside. We knew the activity was there. There was buying of specifically call options so very short term bets on further upside people overpaying statistically for some of the exposure i dont think anyone should pretend we should know where the buying is coming from. A lot of the orders are studied and they were very small orders. They seem like they were coming more from retail im sure its all of the above but what it did tell me interestingly and the mark as i said earlier hit a low when we got that news and rallied from there. T its more comforting to have somebody you can point to to say we know what is going on soft bank is not getting margin called, okay theyre okay i dont know if its going to be an on going thread of speculation in terms of who is doing this this buying or not. Interesting to me. Once you start getting people very convinced that theres this whatever it might be, you start to reveal it people start to feel better about things lets put it to bed new long Time Companies or do you entrust them to do short term well, it was supposed to be more for public securities is my understanding. And who knows, maybe if you think that, you know, technology is going to be transforming the world in wonderful ways, thats how you park your cash there is not any fundamental pictures changing, mark. Well give you the funl worinal. You raised the election. Youre worried about the trade war as well and the economy. So where are you going where are you telling clients to go to protect themselves yeah, ubs came out with a theme that should work out whether a democrat or a republican wins the white house in november and thats telecommunications 5g rollout and investing in all infrastructure that goes with making 5g a reality in the u. S. So thats what were bullish on. Possib possib possibly another 2 trillion deal you have to get gold in your portfolio. Great discussion. Thank you all very much. Lets get to bob pisani now for a summary of what has been a roller coaster ride both today and this week. Hey, bob yeah. 130 point swing in the s p 500 today. You dont see that often were only down 28 at the end. Perspective is what i keep emphasizing today. So you look at the big mega cap names and considering the big runup weve had, it looks a little odd here. Theyre down, you know, 4 , 5 , 6 , 7 for the week. There is the weekly declines again, perspective idea, look at the year to date okay so remember, theyre down 3 , 5 , 6 for the week. The year to date, microsoft is up 37 facebook, 39 . Amazon, 78 . So the declines are small compared to the moves weve had. And its even worse for the, you know, thebigger names in tech and work from home that have had bigger runups than the mega cap names. So nvidia is down 7 and paypal and salesforce is down and tesla is down 6 but when you look at what they did on a yearly date this makes the mega caps look like nothing over here. Nvidia still up 115. Paypal, sales force and tesla. Dont even go there. All this is trivial when you look at it in a longer term perspective. People said oh, my gosh, the market is crashing this week get a grip and have a perspective. The cyclicals have done very well mart unmarietta, eastman chemical, some of the very, very deep cyclicals out there did very well, up 3 , 4 , 6 as you see and ended the day fine meantime, the s p 500 closing 3426 i believe were back to where we were on august 25th. Again, perspective, everybody. Have a good weekend. Back to you. Bob, you too. Have a wonderful extended weekend. Still to come, chief Market Strategist tony dwyer will will weigh in on this wild week of training were back here in 90 seconds. Im searching for info on options trading, and look, it feels likejust. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn. S p 500 and nasdaq closing lower for the week nappisnappine five week winning streak the recent stock rally off the lows compares to hist rich the nasdaq had the worst week since march. The nasdaq definitely had the biggest surrender he here of the gains. This is a look at the rally currently since march, march 23rd against two of the best early new or new bull market rallies in history the blue shriline is where you right here see, weve been outperforming the path of the prior ones and this, of course, is all benchmark right to the very low that preceded the bull markets the so not surprising if youre going by this in terms of how these things tend to go in terms of cadence that you might give some back and shop around. Nothing says we have to follow this path. Im a little bit, you know, hesitant to say that the low in march is perfectly comparable to the prior ones it spent years in the wilderness it was a quick five week shock and a quick recession and stimulus move. However, it does tell you that there is plenty of backing and filling that the market might have to do even if it were going match the path of some of these great rallies of history this one has been faster and more severe. Exactly the economy and the markets yep thanks, mike. Up next, tony dwyer, equity strategist, recently withdrew the target on the s p 500 for the year well ask him why and where he thinks stocks are headed next. You can always watch or listen to us live on the go on the cnbc app. Before money, people traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. If i could, baby id 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. Stocks closed lower today. Well off the worst levels. The dow, s p 500 and nasdaq finished the week in the red at one point the dow is down more than 600 points closed down 159 points joining us no you is tony dwyer, chief Market Strategist at canacor genuity. Youre supposed to have s p 500 targets for the year y did you do that . Is that a bullish call or a bearish call thats not what were supposed to do hopefully what gets me the clients is methodology that goes behind the target. Not the target itself. It could be misleading let me give you history yfof whi did it in june, they were having the two big pull backs in june we increased our target to 3300 plus and we emphasized the plus because you had a fed in the background that was telling us that they were looking at how they were going to reevaluate inflation targeting and what that might mean. I wasnt sure what the upside multiple should be now i have a fed that is telling us that were going to have really zero Interest Rates for years, maybe for a very, very long time, and theyre going to use the balance sheet. I dont know what kind of multiples to put on it in infinity fed i believe its at least 20 so i dont want it to come across that i pulled my target because im necessarytigative should it be 22 . 25, 125 . We never had a fed that told us theyre not raising rates for the foreseeable future and theyre going to pin to trim prime the pump is that how can you justify these price targets going up and the levels at which youre seeing tesla trade or apple trade or other, you know, new ipos some of the competitors to tesla that dont have revenues theres an excess liquidity the reason im so bullish, i think were in a new market in economic psych that will is going to last a long, long time, years. So ive also, you know, as you know, from the notes, weve been looking for stair step higher like the fall of 2009 where you had had four temporary corrections ranging from 3 to 7 what market are we discussing . The second reason that i went through the target is its being so influenced by the mega cap stocks that im not so sure its representative of the economy anymore. Clearly it is because of a large shutdown if there is a criticism, to me, its that i havent recommended one sector with the mega cap stocks in only be in that area so i just think that were set up with this historic excess liquidity just by the way how 2009 saw historic excess liquidity. I think it really benefits the economic areas that have seen such an underinvestment. Sounds like you pulled the target because of uncertainty as to where we could end up to the upside what would make you reinstate a target because you wanted to have one that had some level of down side from where we are . What would make you bearish . Honestly, if anybody wants to know what my position is, im not doing a good enough job. If i think its going to pull back, ill full stop tell you. And we august 17th put out a note looking for three or four of these kind of 3 to 7 sharp, two, three day pullbacks followed by a move back up to the highs. So its typically what happens remember guys, what really creates that significant and sustainable down side is when you have Monetary Policy that creates a potential credit crisis or sets the stage for a credit crisis. Last august, we inverted the yield curve. Credit conditions were not getting a lot better thats why we downgraded the market view in january of this year they just told us the Unemployment Rate is not something that is making them think about raising rates or changing their qe. They told us can you get to full employment, you can have inflation running hot above what you this new and theyre still not going to raise rates i dont know how you guess what the upside multiple should be. Again, i dont i think were going higher it is truly remarkable i wonder though if the market turns its is tension at some point, tony, to the fundamentals of what is actually happening in the economy. And the bankruptcies and Small Business closures and the millions of people out of work and collecting Unemployment Benefits the haves and have nots and its a different growth picture no matter what the fed is doing. I mean zshgs th, does that not into focus even though the fed is zero and letting it run hot forever . Well, remember, the fed could be there to backstop along with the fiscal policy. The fed backstop Corporate Credit, the last thing i read, they bought 44 bouillon. There is almost two krilon Corporate Credit new issuance this year. Of they havent had to do much p once they backstop it. Again, those issues are real and they can create corrections. But the question becomes what do you do with those corrections . Do you buy or sell of course, weve got the election coming up its not an election that will end on election day. I think everybody is pretty well aware that there might be it may be contested in a way or two. That creates volatility. So the answer isnt do we get volatility we had had volatility for the 12 years of the bull market but that is an opportunity again as long as that monetary and growth backdrop are proper tony dwyer, great to catch up as always. Thank you for joining us thank you guys. The head of an Airline Lobbying group predicting the industry may not fully recover from the coronavirus pandemic until 2024 up next, well ask the ceo of Hawaiian Airlines whether his company will need to furlough moreorrs wke amid that gloomy outlook. Hawaiian holdings finishing the day higher by 2 hawaiian announcing theyll eliminate most change fees following in the steps of other Major Airlines this week the stock has taken off since the march lows, rallying by nearly 58 joining us now, peter ingraham, president and sew ceo of Hawaii Holdings so lets talk about the scrapping of change fees we had deltas ed bastian on recently i asked the same question to him. Not only are you facing weak demand, but is there a price war sweeping across the industry as well change fees is something we looked at for a number of years. We know its something that our guests really struggle to understand why change fees needed to be there at the magnitude they were. Its a smaller source of revenue than it has been for the big Network Carriers so with the moves earlier this week, it really accelerated some things that weve been thinking about and we think its going to be something that makes our Product Offering generally more understandable and more guest friendly Going Forward you mentioned there are more tilted towards Leisure Travel, of course. What is your outlook for Leisure Travel and how quickly it can get back to 2019 levels as compared to Business Travel in the industry i feel like a lot of your rival suggest Business Travel will bounce back fully. Maybe youre freer to be more skeptical. I think on the leisure side, with he do expect that there is a lot of pent up demand that people do want to travel maybe not right now as people are obviously very concerned about the spread of the disease. In the short term for us, what is really affecting our business is we have a 14day quarantine thats been in place since the end of march for any arrival into the islands and thats really stifled us from realizing what demand is out there right now. The first thing for us is getting beyond that quarantine and there is a proposal that has been out there for a while for a free travel testing regime ut was originally scheduled to go in place in august. And then september it is now been rolled back to at least october 1st. We think its important for the policymakers here in hawaii to firm that up and get the pretravel testing regime open. Longer term, i think demand for Hawaii Travel is still going to be there people really do value the experience they get of a vacation this is not something that you can experience over zoom or teams or any other video conferencingplatform but you have to fly there, peter z that mean your business and hawaii Tourism Market is getting disproportionately affected worse than the rest of the country because in the country there some pickup as a result of road trips thats hard to do in hawaii. Well, yeah. You do have to ni here you know, the flying part of the equation, we have every confidence is incredibly safe right now. One of the things that has been quite revealing through the pandemic is airplanes have not been a place where the disease has been spreading and theres a lot of things that make flying safe the hepa filters on the airplanes, the fact that fresh air is introduced into the cabin. So were very confident about the safety of it and weve got to do a better job and continue to make sure were getting that message out to our guests and restore their confidence in traveling. We believe it is safe and we look forward to people making the does igs to travel more as hawaii opens up and becomes more receptive again by eliminating the need for quarantine. Peter, obviously, youre relatively unique compared to some of the usair lines in getting some business from the other side of the pacific as well what is demand like . What is the economy pickup like for from that side yeah. Right now there is almost no International Travel into Hawaii Japan Airlines is flying just a couple of flights per month in it here. Philippine airlines is flying, i think, one or maybe two flights. Weve suspended our International Service for now. Again, because of the not only the quarantine restrictions in hawaii but also quarantine restrictions in some of those countries. We do believe that japan is going to come back strongly. All of the Customer Survey indications we have from japan show that hawaii remains the number one aspirational destination for the japanese we think that they are going to be eager to come here as they have been coming for decades i think korea is going to bounce back and we look forward to getting beyond quarantines in those markets. The it may take longer for us to get australia and new zealand which have really, you know, among the International Locations have been as so i think it may be well into 2021 before with he see any meaningful demand from australia and new zealand. We think people in those parts of the world that are travelers, they really do like getting out and exploring the world and we dont think that that will change long term as we move into a post virus world i think right now were still suffering the effects of being in the midst of the pandemic peter, thank you for talking us through it. Thank you guys very much. Have a good labor day weekend. You too you have Hawaiian Airlines were getting news out of retail in terms of Neiman Marcus bankruptcy kate rogers has the details. Hi, sara. They received Court Approval of the reorganization plan. The company says it expects it will emerge from chapter 11 by september 30th theyll emerge with a substantially reduced debt load in new funding adding this will legality about 4 billion in debt the company adding in a statement, even in a continually evolving retail environment, we continue to succeed and exceed our budget and theyre positioned to win thanks to our different shated and deep customer relationships and mutual trust of our lenders and Brand Partners and 5 00 sell accelerated Research Group theyre receiving that award back to you. Yeah. Has been closing some stores in the process. Kate, thanks kate rogers. Getting athletes back on the field. Well ask the ceo of quidell how the Rapid Testing could help return the sports. Thats next. Welcome back lets get a cnbc update with sue herrera. Hello, sara hello, verybody. Heres whats happening. We have a followup on a story that we reported on earlier. President trump tweeting that funding will not be cut for the stars and stripes. Though did he call it a magazine and not a newspaper. The pentagon had told the news organizations leadership to cease publishing by the end of the month. Much nnch in texas, a huge monthly food give away has expanded 1500 families lined up, some waiting hours to get 100 pounds of meat, produce and groceries beirut holding a moment of silence to mark the one month anniversary of the devastating blast that killed nearly 200 and injured thousands more and lets go out on that cute note look at that guy even polar bears can use some help from their parents. Young herta wants to play with that ball. But it was stuck behind a rock thankfully, mommy, tanya, comes to the rescue. Sports fans will know that the younger bear is named after berlins soccer team what was the name the younger one . Herta herta berlin. Sounds so much better when you say it. I dont think im saying it right. Fit was english, i would get it right. German, im not so sure. Somewhere in between what we said the producer said herta. Its probably that sue, thank you very much. Have a wonderful long weekend. You too sue squeezing in some soccer for me there she did the messi story earlier on the exchange. That upset me. I mgsed out on it. We must manufacture on coming up, well talk to the ceo of diagnostic Testing Company and the commissioner of the pac 12 conference about how a new coronavirus test can get College Athletes back on the field a new Research Initiative could put us closer to the return of College Sports the pac 12 conference is working with a chp to implement daily covid19 testing with rapid results for athletes, coaches and staff. As of right now, the pac 12 postponed all sports competitions through the end of the year joining us no you to talk about this is the ceo drug bryant and the pac 12 commissioner larry scott. Good to have you both here first, doug, just tell us how this partnership will work and what happens its great to be here again and very proud of chris and my organization for getting to where we are from a supply chain spesh perspective and being able to meet the capacity that is going to be required the but weve been working with researchers at universities within the pac 12 for at least a few months now some as many as four months. And were sincerely interested in a large asymptomatic test. We had the first of its kind were going to be engaged in research thats going to allow us to understand a lot more about what asymptomatic testing looks like in a Large Population a few weeks ago, we began to engage with the pac 12 and again were super proud of being engaged in an organization that was able to react so quickly and i think the timing is great. Larry, could this mean, if we do get the rapid tests, to your various schools, could we see a return for the pac 12 before the end of the year . Yeah. This is a big breakthrough for us by working with them and being able the testing that gives us near immediate results. It allows us to test daily to give us a high degree of confidence that through the contact in sports were not promoting spread of the virus. We still have a few states and counties that have not given permission for contact practice or competition i think todays development will help us persuade that we can do so safely for our student athletes gives us a high degree of confidence that well start competition in january and now maybe even before with this big breakthrough each of these tests, i guess behind the question is how widely could this be spread out to allowing fans to attend matches as well . Or is that really not economically viable . Only for the players well, were starting with the student athletes obviously, the tests are in limited supply we feel for the into the have struck the Strategic Partnership with them. And based on what we learned and as the capacity ramps, i know there are others in colleges sports and fans that will be interested its our hope that were contributing to societys return to work, to be able to return to school safely, to return to Mass Gatherings i think thats where this research could be very important. Doug, isnt the real question here whether its prudent for schools to be prioritizing athletics in first place when there are still questions whether they can even come to college . So many schools already have sent kids home and there are all sorts of economic problems so is athletics really the focus . Well, this is really just the next step, you know, we started by addressing people with the greatest need, health care providers, first responders. We then engaged in testing in Nursing Homes. Doing our best to play our part to get grandmas and grandpas reunited with their families and this is just the next step so i do believe that the data that were going to generate from these this study is going to be very helpful in creating a testing algorithm that will get everybody back to where they want to be. What will be the threshold, larry, for conducting a game if you do get a positive test before the game . Well, were hoping with these test thats any student athletes that tests positive will not be sick during practice or a game and theyll be quarantined and contact tracing. Theres a concern for basketball and football if you actually enter a practice or a game, you know, with the disease, there are many, many p fellow teammates that could have come in contact and you have to quarantine a whole team. If you can stop the student athletes from starting the practice in the first place, entering the game in the first place, by having this pointed care and immediate result, then the likelihood you have to quarantine a whole team goes way down on. Disneys mulan is being released while the biggest movie since covid started hits theaters this weekend. Its being called a watershed moment for the box office. Julia boorstin has the details. This weekend is a test for consumer demand for pricey athome entertainment and the question of whether audiences want to return to theaters in the u. S. Disney subscribers can pay an additional 30 to buy mulan. Credit suisse saying mulan should elevate disney plus meanwhile Warner Brothers tenet is launching in roughly 60 of u. S. Theaters that are now open. Imax getting a price target hike on tenets better than expected International Box office of 54 million for its opening weekend. Theater chains amc and cinemark could also see their stocks move on the box office over the weekend. Not open in new york, though. Thats really about the local rules. Theres nothing that the theater chains can do about that here in los angeles, i also cannot see tenet in theaters. I dont quite want to see it enough to drive back here to inglewood cliffs at the weekend. Ill wait. I dont want to be sitting indoors with a bunch of strangers for a few years, for a few hours. You dont want to be sitting with people for a few years. Definitely not a few years, but probably not for a few hours. Up next, we round out this crazy week on wall street and look ahead to next week. Tune in for a special Program Tuesday on cnbc. Race and opportunity in america. Well take a closer look at the underrepresentation of black workers and leaders in corporate america. And heres some ideas and potential solutions from ceos, investors and entrepreneurs. 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. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com Berkshire Hathaway showing their stake in wells fargo is down to 3. 3 started the year closer to 10. The most recent filing in august showed it at about 6 . The good news is it could explain some of the weakness in the share price. Were out of time. Thanks for watching. Have a great long weekend. Fast money starts now. Im melissa lee and this is fast money. Tonight banking on gains financial stocks leading the market today after months of struggling to rebound off their lows where the sector goes from here. Plus it was downward facing dog for shares of lululemon today. Later, its been a wild week for th