Transcripts For CNBC Closing Bell 20240712

59 minutes left to trade, kayla. And that green screen is not something we have seen in a while. We have a big show ahead today on closing bell. A big deal for big steel well talk to the ceo from Cleveland Cliffs and his outlook on the economy later, sneaker startup all birds scoring 100 million in fresh funding. Valuing the company at 1. 7 billion the coceo will join us to tell us how his Company Plans to spend that cash and well have that later on in the show. Lets focus in on the big show were tracking to days rally. Theyre covering the latest tensions in the tech cold war with china start us off on the Broader Market and what youre seeing behind the scenes today. Yeah. Market making the case that last weeks lows and got some traction near the levels its not Something Else tachlt a look at the s p 500 year to date all the indices have a similar look with different mag any tudz we were talking about this level for a long time. This is where we hit the lows a few times last week around 3200. It is also the year to date break even we talked about that now where this brings us here, just over 3350 or so is right up to the 50day moving average for the s p 500. All the indices are right there. The market is trading technically. Were not really trading on bond market moves it is about the stock Market Positioning sentiment and technicals and that takes us to another Decision Point here. The a lot of folks saying until we get above last weeks midweek highs in the s p 500, about 3425, you know, all were really doing is retreading the same ground that we got last week take a look at the nasdaq 100. Its the more dramatic version of what we saw also you can see this sort of attempt at a defined floor i always talk about august 11th. Thats when the liftoff started last month in fact, thats what we got down to again, market suggesting that was enough of a reset in terms of positioning technicals and sentiment to maybe get if nothing else a spirited bounce the equal weighted s p 500 is the lagger the average stock is not that big cap indices. It is trying to rally here kind of similar. Sort of a weaker tone. If you want to sort of draw one of these, its a down trend line so it still has a little more to prove in terms of the average stock. The mega caps today are bouncing nicely a lot of things did line up you see a turn to the bear side. So some of the clues that you look for have rounded into place. Theres no way to know if that was a definitive look. Seasonal effects turn positive very end of september into the first several days of october. We might be riding a little butt of that. Nobody thinks theyre going to surge ahead in a major way with that election out there. Mike, i guess gold is sort of become a risk asset in the last couple of weeks. Traditional correlation held and played out as we might have expected again over the last couple weeks has been the u. S. Dollar to stocks. Exactly so the dollar today weaker giving back the gains over the last couple weeks. And that helped all kinds of other assets that includes gold which did have a stiff pullback along with stocks we are up 1. 8 on the s p 500. Tech tensions with china simmering on a number of fronts. Potential new sanction onz a massive chinese chipmaker. Were covering the developments. Hi, d. Hey after tiktok challenged the ban as unconstitutional and violation of due process, a federal judge blocked that ban on down loads. But this victory may be short lived even with the president s approval as weve been talking about, oracle may solve the data storage piece of this saga it is still very much outstanding. China state media applauded the judges decision yesterday the editor tweeting the ruling helps the u. S. Gain a little of the reputation in the world. The u. S. Government is in a hysterical state he says the fate of tiktok is still worrying the Trump Administration is taking aim at chinas biggest chipmaker smic reportedly imposing restriction o on the company this could be a bigger deal if tiktok or wechat ban because it plays into and hurts chinas ambitions to develop its own Semiconductor Industry smic for its part says that it has not received such guidance it continues to pay close attention. Finally, we are keeping an eye on alibabas investor day which kicked off last night. The tech giant does not rely on have the same ties with the u. S. Like tiktok or smic. But escalating tensions between the two countries could impact the cloud ambitions and as we know the payment affiliate and Group Select Group in the listing citing geopolitical tensions that is expected to be the biggest ipo of all time. Not quite finally lots going on in your world today. Also if i can, i want to ask you about the Apple Epic Games hearing which as we know is just been wrapping up recently. Yeah. So this is an interesting development. Im going through it as well myself but the u. S. Federal judge says that a trial between apple and epic games, thats the fortnight creator, of course, should be heard by a jury. He goes on to say that its important to understand what real people think. Do the Security Issues concern people or not . Is this the concern of the developers incredibly important now weve been talking and debating this issue over the last few weeks its no the just epic games, of course its match group, its spotify, base camp. We heard from many of these ceos and executives saying that the rules simply arent fair that apple shouldnt be able to charge 30 as a cut. This will will go to a jury. You could hear from that alliance of developers were still waiting on whether the judge will temporarily let fortnight back into the app store. Remember, it was taken off we expect it to be fairly soon we continue to keep an eye on it and bring it to you if anything does come. Also on that time line for a trial date when this could be heard by a jury. That hearing, the judge says looking at a july trial date between now and then, expect lots more pr we already received lots, particularly from epic games you might start to see more Developers Come out and in full force to make the case that App Store Rules are not fair to them apple coming out to say that it keeps the App Store Safe and secure and as a result it deserves that fee. I pitty the people that are on the detail. How do you select a jury for this case . So many people use the iphone. Exactly does it slightly change the outcomes perhaps whether the hard letter of the law you step away from that a little bit and peoples general interpretation and what does and doesnt make sense to them starts to play out a bit more we have to wait and see. Interesting development. After the break, shardz shares clevelandcliffs ceo and his outlook for steel demand in the u. S. And abroad. Youre watching closing bell on cnbc. Clevelandcliffs forging a deal with the Worlds Largest steel maker using the u. S. Business for 1. 4 billion. This comes after they completed the acquisition of ak steel back in march Cleveland Cliffs ceo joins us now in a first on cnbc inthe view g to see you again. Congratulations on this announcement thank you very much always a pleasure being with you. Its interesting timing for this deal. You had so many factories idle this year. U. S. Steel production down 20 prices plummeting. So if this is a bet that production and demand will resume, when do you think that will happen . In our case, its already happening. Clevelands has a massive exposure to automotive that affected us very seriously during the second quarter. When automotive shut down in this country, we were forced to reduce our output because its all about this this being said, q3 has been completely different story we have been through a very profitable quarter and very strong in terms of the recovery of demand in automotive automotive being strong, the economy overall is still relatively fragile after you did the deal with ak steel, did you idle some plans and lay off several workers. The you have said that this deal will create 150 million in synergies which usually is a euphemism for layoffs. I wonder what the outlook for the workforce of both companies is and how safe everyones job is yeah, this type of softer language is not what i o its not how i act in the case of the ak steel, everything that happened was covid19 related the only plant shut down for good, not coming back, was the shot in deer born and that is part of the plan the synergy thats we are achieving, by the way, were achieving both number that we committed to achieve with the case are coming from efficiencies particularly renegotiation and Service Contracts with service providers. Cost initiatives in terms of optimizing the product through the different equipment that we have available to us and with the acquisition, it is exactly the same were not in the business of letting people go. Were in the business of extracting efficiency and producing more using the same level resources. Theres lots of ways this m a can be framed. One way ive seen it framed is youre buying up your customers. Do your customers that you havent bought have reason to be afraid theres not a lot left. 90 of my legacy businesses are now in house and it will be even more when we start up our plant in toledo what is happening in the next few weeks h so our business now is pretty much an internal business except for very select views when you say there is not a lot left going on an acquisition spree, it may perk the ears of recollectors do you think there is antitrust risk in this deal . Do you believe it will close in the Fourth Quarter of this year . What is the antitrust outlook . I said that is not left for the legacy of the business there is a lot left in steel the comet environment landscape is completely unaffected by our deal you have on closing bell and cnbc have been noticing that the theyre raining market share in terms of automotive this being said, we have a very important presence the Competitive Landscape is not affected weve gone through a review very recently with ak steel so we are fully confident that this will be an in and out well be producing steel in a much greener and more social responsible way. And doing what is right for the united states. Overall, lorenzo, have the Trump Administrations tariffs helped or hindered your business and are you fearful of the possible outcome of the election i have no fear about absolutely anything. This is a great country. Its not so dependent on politics as some might believe. And the right thing will all be done the tariffs are a way of leveling the Playing Field in some instances, the tariffs are very effective and others, they were not. And very recently did the department of commerce made a big mistake in allowing wider electrical steel to be sold in the united states. So the tariffs have been a mixed blessing so far. And i dont believe that anything will be better or worse because we have or dwoent have tariffs. Its all about being efficient and being socially responsible its all about being green and thats our business proposition. Well tun continue to develop tt and to be fair, joe biden has not committed one way or another as to what would happen to those tariffs. P perhaps when we have clarity on that, lorenzo, well have you back to talk about it. Again, congratulations on the deal its expected to close in the Fourth Quarter of this year. You are the ceo of clevelandcliffs thank you very much for having me. Always a pleasure. With just about 41 minutes before the closing bell, the dow, s p 500 and nasdaq all up about 1. 8 the russell 2000 up 2. 5 after the break, well talk about a potential glimmer of hope well discuss fresh comments from House Speaker nancy pelosi about a new round of stimulus and what that funding could mean ayunmaetrk st ted a new round of stimulus but with the Supreme Court nomination bad will looming, how likely is it that we see a new deal we have all the latest from washington pelosi is hopeful that they can find Common Ground democrats are still putting together a 2. 4 trillion relief package and that is still about a trillion dollars more than the white house said it is willing to go. Pelosi stoed day th pelosi said today that republicans are being disrespectful. There is not a lot they can do to block this confirmation the chairman of the Senate Judiciary committee is going to be meeting with the nominee tomorrow at 5 30 p. M hes already put her con mirm mags hearings confirmation hearings on the calendar the goal is to have her on the senate floor by october 26th guys, that would not appear to leave a lot of time left over for a vote on a covid19 relief package. Back to you. Wow crazy pressure time there. Thank you so much for that 36 days from the election. A recent poll of investors conducted shows that 60 believe joe biden will win the presidency the survey also broke down what investors believe the Market Impact will be depend og whon wins the white house, senate, and house. Joining us now to lay out the findings is damon lineslowe good to see you. Thank you for joining us good afternoon. I think it was a very large aum in total and what was their expectation of the actual outcome of the election . There were many in equity and fixed income as you say, we asked who in their view is most likely president and which party and in their view controlling the senate and the house, both election and then we present the different scenarios in terms of what might happen and whether the acquisitions will be positive or negative the u. S. Equity markets and absolute other terms and how the potential outcomes would affect msdi sectors and also the prospect for equities considered to be bsg so in terms of what investors think will will happen, as you said, 60 of investors believe that joe biden is most likely to be the next president of the united states. 40 donald trump nine out of ten investors believe that democrats will continue to have a majority in the house of representatives 49 of the republicans think they will have the house and 43 believe that democrats will gain the senate 9 think it will be a tie. In terms of what will be the reaction to those things, in terms of investor responses to the different and arrows, lets focus on the three deemed most likely one is a status quo result the republicans win the white house. Republican controlled senate that is considered to be neutral for the dollar very bullish for equities. Plus 34 bearish. The difference in investor minds between democrat clean sweep so biden presidency, democrat house, Democrat Senate versus the Republican Party to maintain control of the senate under biden is very big. The top line from respondents is that a democrat clean sweep for equities in terms of bullish minus bearish is a negative 55 for the u. S. Dollar index. And negative 33 for u. S. Equity markets versus the rest of the world. However, the scenario of a potential joe biden presidency with a Democratic House with the republicans take a Senate Majority was seen as half as negative for u. S. Equity markets. Just quickly, in it that base Case Scenario outcome, which sector stood out as the one investors are most fearful about . The democrats have the most fear minds that is perceived to be minus 67 bullish minus bearish for energy and negative for negative for industrials and materials and so on. The exception to that being esg. So not that sector as such but stocks perceived tore usg names are the only group that faired poorly under trump doing well n terms of biden clean sweep, if joe biden wins the white house and democrats retain the house and the party retains the senate, it is seen as much less negative for energy that is minus 34 . I think its worth yeah, i think it is worth noting that while investors are digesting the prospect of the biden victory, 40 investors do expect trump second term. So these investors were also more likely to believe that biden will be negative for the dollar there is a lot of investors out there that believe the vents such as economic bounce back, potential covid19 vaccine, the debates, et cetera, may well change things in terms of the policy damon, thank you for joining us much appreciated okay. Damion lines. Still ahead, shares of apple higher today along with the Broader Market but its been an ugly month for shareholders well discuss if the fortunes can turn around. Lets have a check in on bonds muted action today for treasuries the ten year hovering around 0. 66 . Were back in a couple minutes thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Hmms and ahhs heard incall. Moments ago filing a counterclaim against tiffany in delaware a chance to record this, of course, a response to tiffanys own lawsuit filed earlier this month. That sought to force them to proceed with that deal to buy tiffany for 16 billion. Now they complain saying the business that lvmh proposed to acquire in 2018, no longer exists the what remains is a mismanaged business with no end to its problems in sight. Now there are three basic claims in this counterclaim the pandemic created extraordinary damage to tiffany and there was no carveout in the deal agreement for a pandemic. They failed to operate in ordinary course. This basically saying tiffany paid out more dividends during the six months than it should have and other Luxury Companies reduced or eliminated their dividends and it says tiffany cut critical sales in marketing expense tez expense of future sales and closed stores before they were required to. Also saying this is important. Luxury companies in the u. S. Have a bleak future. It points out here that 90 of tiffany sales are Brick Mortar Stores 80 of those are in shopping malls. So there is really no hope for a quick recovery and also, of course, lvmh citing this letter from the foreign minister saying it make it impossible to close the transaction. The trial for tiffanys case begins in january on january 5th. So well see how this all plays out. But right now both sides criticizing each other in a way that is hard to imagine them ever coming to an agreement even at a lower price cayla, back to you zblfr ill pi ill pick it up there fascinating case its going to be with that country dispute as well with the french government getting involved well see where it ends up robert frank, thank you. Time for a cnbc update with sue herrer herrera. Hello, everybody. Chicago is loosening pandemic restrictions on businesses including bars, restaurants, and health clubs starting on thursday, indoor capacity limits will be raised to 40 and bars will be allowed to resume Indoor Service in louisville, there is curfew tonight. They lifted the restriction put in place after grained jury did not charge Police Officers involved in the killing of Breonna Taylor in paris, Serena Williams needed more than an hour to win the first set of her first match at the french open after that though, she cruised to victory with a 60 second set. And in romania, a mayor won a landslide reelection even though he died of covid19 complications day before the polls opened he was parentally very well regarded in his village of 3,000 people he received 64 of the votes a new election has been scheduled. Youre up to date. Thats the news update this hour ill send it back down to you. Tragic coincidence there, thank you. 27 minutes before the bell heres where we stand in the markets. It has been a green day for much of the day the dow up by 1. 5 the s p 500 up 1. 5 and the nasdaq coming off high thats we hit earlier in the day well keep you posted going into the close. And after the break, well talk biotech beyond covid19. Well speak with an analyst about the names to watch in the space that have nothing to do with the pandemic. And later, the coceo of all bird will downus and will talk if the Sneaker Company is looking to expand the line to drive growth stay tuned hey, dad hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. I feel hopeful about the future now. 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. Time for the coronavirus tracker. Were watching some concerning trends in the u. S. And abroad. In the midwest, several states are seeing high positivity rates including north dakota and south dakota above 25 now in montana hitting 20 on sunday according to reuters. Dr. Fauci saying earlier that the u. S. Is not in a good place in an interview abc. Globally, total deaths are approaching one million with more than 33 million cases worldwide. On the vaccine front, shares of inovio plunging on the news that they put a hold on the vaccine trial pending more information that is down close to 30 . Meanwhile, the biotech index is on a terror since the march lows up nearly 38 . Its no the just covid19 related names that are seeing a big boost. Big movers since the lows include Tg Therapeutics which rallied 200 and Arena Pharmaceuticals higher by nearly 89 . For more on what could take the sector higher, lets bring in alethia young. Were going to talk about all the noncovid pharma news give us your view on the state of the vaccine race and what you make of some of the latest developments there thank you for having me you know, for me, i feel like the vaccine journey is more of a journey and a mature on this its not going to be a one size fits all so youll have setbacks like today. Youll have successes i think as well there say large u. S. Population need here. There has been just so much focus on the race for a vaccine, the race for therapeutics and getting some of the treatments to market. You do really lose sight of of what is going on behind the scenes in r d. The news from bioagain on the advances for the alzheimer treatment today. Im wondering what you see going on behind the scenes which names do you like . Its really just in ovation is going on like a profound rate i mean youre seeing it, i guess, the typical american seeing it through the vaccines and how quickly they have been able to bring drugs that didnt exist from free clinical to fades three development. But that is happening everywhere in biotech and so you name two things, right, obviously biogen who is going to have an fda panel on november 6th for potentially the first u. S. Drug approved for alzheimers disease which is an uncredible step forward. A fairly controversial name and controversial set of studies they ran where one worked and one did not. Very, very excited to see what is going to happen with this ad com and we put awe lot of prep into that the second point with therapeutics today they had very exciting news this morning out of a medical meeting in europe they have a gene therapy for mousse mus ccular dystrophy. They show at two years that kids are able to show disease not fiction. Theyre Getting Better not worse. Typically naturally the patients get worse. Theyre Getting Better, being able to walk, move more and function more. So they have a phase three that is upcoming towards the end of the year, early next year. So very excited to see that. We came out a little more confident today after seeing that durability for three years. So should we expect more m a in this space . Who is your prime takeout candidates i mean, i think there is going to be more m a i think the reality is i think companies that are unpartnered late stage assets are always names that, you know, ones that people Pay Attention to. Oncology is very hot hematology as well how much is r d and innovation could potentially suffer from the focus on the vaccine and the voek us on covid19 and the fact that some of the trials have been delayed you know, what do you think we can calculate as the cost to some of the companies . Is there any i think not much. Right . These companies, most of them are big. Truly they are having diverse, large parts of effort to manufacturing and getting this under way. But, you know, at the same time, i actively covered this space for a long time and still follow it there is still just as much innovation and data readouts, things on track like when you talk about tg or arena both of the companies have major readouts coming over the next 12 to 18 months i havent really missed a beat i think sometimes people get overfocused on covid19. The reality is that the entire space is moving aggressively with many different modalities and therapies. Thats what this is telling you the bioagaigens are doing the. Clearly there is lots of ip pact in the stay at home trend other implications from telemedicine for your health care does it impact the likely demand for drugs Going Forward . I mean, i think were in a new normal you know, doctors at one point werent particularly comfortable in the u. S you know, kind of seeing patients virtually ive been to the doctor virtually. I think were starting to become the way of the future. And also, you know, theyre being able to get paid by the managed care which is a big piece of the puzzle. I do think its time to stay and making the Health Care System more efficient which ultimately means like over the long term that more volume can go through the Health Care System which also affects all the biotech companies. Thank you so much for joining us. Thank you after the break, good news for uber across the pond optimism for the future of space travel and a look where millennial investors are putting thur money to work those stories and much more when we take you unside the market zone. [squeaky shopping cart] [sniffing] is the salmon wildcaught . She only eats wild caught. [cash register beeps] uh, i need a price check on honey. Dont get mad. Get e trade and get more than just trading. Investing. Banking. Guidance. Sh minutes le14 minutes lefe trading zone senior markets commentator mike santoli here to break down the crucial moments of the trading day. And tonight we have wells fargo scott ren with us as well. Lets check the Broader Markets. Dow on pace for the best day since july mike, pretty broad clearly some sectors doing better than others it is tech and cyclicals the. It is broad the lagger stocks are leading now. It does seem a little bit like catchup trade just in ternlly which might mean its not necessarily, you know, vet beginning of some kind of a big long lasting rally back to the highs. At least not with this particular makeup. But i do think that most of the job the four week correction was kind of achieved if all it was about was kind of resetting overextended tech stocks and resetting sentiment back towards a neutral play coming into this week. You have to be agnostic. Does it seem as if there was enough out there there are case loads out front it seems like almost nothing is poised to stop the reopening momentum do you agree with that, scott . We may have lost scott as well mike, let me pick up in terms o the market is not too worried. You get the reopening in the u. S. The market seems o celebrate that as if there is no chance of the reclosings that were seeing in europe. Thats right. It is the way you would have to interpret what is happening in the markets. Maybe incorrect. Maybe underestimating the possibility of especially localized, you know, restrictions being added back. But maybe the experience of the summer is informing what is going on you did see significant surges in parts of the country. Again, you know, looking at the entertainment and he leisure sector, it is racing higher today. Even though everyone is sort of on alert for the possibility of the fall and winter will have more bad news. You think the market is discounting the nakt were having spikes in positive rates in north dakota, wisconsin, and minnesota . I think the market is well aware of what is going on with the spike and resurgence i think it has a confidence level. We have a confidence level that this is not going to be a long lasting situation. But really, if you think about it, we ran up 76 in the nasdaq. We ran up 62 in the s p 500 from the march 23rd lows to the Early September highs. You know, you dont do that without giving up a little ground i think thats what weve just seen people taking a little money off the table. Weve seen a little butt it of negative covid19 news the surge back in activity seems to stumbled a little bit i think very temporarily the so for us, were positive. Weve been telling our clients you need to take advantage of these big down weeks, the big down days. The our clients like a lot of other retail clients have plenty of cash on the sidelines that they want to get in the market and its just a matter of having a plan and then pulling the trigger and executing. And there is still trul yonz trillions of dollars in the market we want to talk about shares of uber moving higher today after a uk judge found the company fit and proper to operate in london in the long standing protracted legal battle and we have the details on that. Is this battle over for uber or is there still more to come . Far from over and that is why youre seeing the session highs. The victory is hard won. More battles they do remain ride sharing, of course, remains under pressure amid the pandemic and the regulatory focus has changed over the last few years. More on how to classify drivers. That is still very much playing out in britain and in california with ab 5. Prop 22 is the campaign to keep the status quo backed by uber and other gig economy companies. Ut is the most expensive bell measure in california history. Back to you. And what is the popular opinion doing . Is because during the era, uber was sort of known as a bachelor pad of a company i think the public would have been happy to see it, you know, with the penalties that some of the regulators are putting on it of has that changed under them or is the customers and public rooting for the company, do you think . I think he has certainly taken this more conciliatory tone with regulators i think thats why you saw this decision come handed down in london but that may not matter as much anymore. Because its the drivers that are pushing back there is a number of surveys can you look at. Uber and lyft likes to say the drivers and the gig economy workers, they want flexibility they dont want to be full time employees. That is up for debate. There is a large number of people that do want the benefits going along with being an employee the simple answer, there is no simple answer. We will see come november on that ballot measure if uber is able to keep the drivers as contract independent contractors with ramifications for the entire gig economy but that is being debated right now very high profile. Its being debated in the newspapers in california and throughout the apps, among drivers, media so well see but certainly its a big moment that could turn the Business Model on its said. Its interesting. I mean, as for the share price pulling back intradashgsy, i was more surprised to see a big jump in the share price at the open some sort of extension was expected in the uk and to her point about where Public Opinion is now, whether we look at london, key market or california or key market, its interesting compared to where we were a couple years ago. When you get to the brink, the ument m ultimate threat of the Service Going away as a whole, i think Public Opinion does shift back to be partly on the side of the company. I think consumers are very much willing to see greater protections for the workers and things like that which may well indeed to be higher costs for them to take the ultimate threat of seeing the service banned outright seems to dissipated a lot. Consumers want the app i dont think any lawmaker mayor, whether it is judge, whatever, wants to go quite that far. People will be fairly upset if they lost at built for ride sharing altogether its a good point, wilf Consumers Want the app drivers want the income particularly at this moment in time when you have the pandemic. And people need that income more than ever. It would have been in uber and l lyfts interest if they could retreat out of california. They could see what would be like if there was no ride sharing effectively in the state. Quet is can we still have ride sharing and afford the drivers these protections . You saw uber and lyft go public last year. Who benefitted from that the early employees. The company was built on the backs of the drivers who did not get to participate in that wealth and amid the pandemic, they are so much more exposed to some of the dangers that they are essential workers. So they are exposed to the dangers. Theyre not properly compensated. So what uber and lyft is trying to say is they can give the brif drivers protections. Do you trust uber and lyft to do that when you have so many years of seeing the corporate employees benefit from the Business Model and not the drivers themselves great stuff thank you very much for. That either way, uners stoberp is kate rooney had a look at some of the key holdings. Kate hey, wilf younger traders were overwhelmingly buying electric vehicle stocks and socalled stay at home stocks during the third quarter. This is according to a new report from apex clearing. Tesla dethroned apple as the top traded stock among millennials Chinese Company nio and workforce moved up that list stocks that benefit from the pandemic continue to gain favor in q3 peloton moved up the list and docusign went from being unranked to making the top 50. Across generations though, it is still all about big tech apple, amazon, tesla and microsoft are among the Top Five Holdings for genz, boomers and millennials. Thank you so much for that. Mike santoli, have we leshd over the course of 2020 whether it is millennials specifically but retail unvestors more broadly . They have much more impact on markets than perhaps the thought beforehand that institutional aum may still be bigger. But Retail Investors of a sort of marginal seller theres a big influence in some segments of the market. I dont think can yyou can deny. With the Stock Options of these companies, yes, it has been a little more the dog than the tail but there is some themes did you pull out of that too buy what you know. Whatever had upside volatility since march, thats what the traders have kind of latched on to so, by the way, also await kates report on genx that, is the generation she didnt mention there. It gets lost in the shuffle. Mike, are your feelings hurt . We will mention it. Ill do a shoutout perhaps well get an update on their investing as well. Lets talk about shares of virgin ga lalactic surging to d. A buy rating bank of america says the companys Growth Potential is unparalleled and susquehanna notes while they dont expect positive Free Cash Flow until 2023, the firm buys into Virgin Galactics vision ranging from leisure to professional space travel scott, up 25 . I dont think anyone doubts that in the future at some point in the future there will be interest in space travel but do you think that investors should wait perhaps until there is demand for people to travel here on earth . Well, i think you need to have you need to have a traders mentality to play stocks like that you know, clearly its not going to be an every day thing maybe in my lifetime, maybe not. People are traveling into space. You know, driverless vehicles, can you name a bunch of things i think what people need to do since you cant really buy a basket of these stocks is you may commit some capital to it. But you have to think very long term if you want to be married to a position like that otherwise, youre going to have to think a lot like a trader you have to be, you know, out when it runs up a lot and then when it tanks, you have to step back 5 billion market cap for that company to i d. A. Up 31 331 3 wild move today. We have two minutes to go in the trading day. Mike, what do you have for us . Lets confirm it is a broad move if you look it at the volume split, its been close to 80 upside volume in the New York Stock Exchange all day thats solidly positive although not really overwhelming to what you call a true kind of buying urgency. Look at the momentum etf this is the s p 500 momentum shares against value and what is interesting on a big up day, you dont have socalled momentum stocks leaning. That is a growth oriented group. The ideas that laggers are leading to day is in that value bucket at the moment its been kind of steadily bid here above 26 its up sometimes on a monday. It does rebuild some of the premium. That is not too surprising here we are still in the mid 20s. Its been a jumpy market so not too surprising. A neutral signal at this point id say. Zblst we have 45 seconds left on the session. Were just shy of that on the dow and just ahead of that on the nasdaq fairly close those three major indices in a year where weve seen huge divergence year to date and every month and every trading session, frankly ishares growth up 1. 64 . Making that point again. All 11 sectors are higher. Utilities the worst performer. Energy the best up 2 followed by nfinancials will tech and Communication Services very much in there too. We have seen the dollar weaken just a little down 0. 4 . That certainly helped those risk assets equities at the bell up 1. 5 for the s p 500. In fact, just a little jump into the close. And welcome to the closing bell. Am im in for sara eisen and wilfred frost. The dow is up by 1. 5 . S p 500 up 1. 6 . Nasdaq had a little more steam in it. The russell 2000 the best performer of the session up 2. 5 today. Energy and financials were the winning sectors. Coming up in a bit, well speak with top rated hardware analyst about apples rough month. Joining us to talk about the market day, scott ren from Wells Fargo Investment Institute is still us with. And liz young joins the conversation as well mike, first tell us what you think caused the dow at least to lose a little steam going into the close. The market followthrough on friday before you know it, the s p 500 is more than 4 above last weeks lows with just really two days of bounce here. So after a little while, the market did just kind of sit there and, you know, potentially because we kind of gone right up to the next little potential inflection point, 50day average on the s p 500 there was no real headlines driving this thing today it was mostly about little bit of the pressure coming off of an oversold market going into the week going into the weekend, you had more than a third of the s p 500 at least 20 off the highs so were in the makings of a rebound trade. That is mostly what weve seen people betting that last weeks lows could at least be the bottom of this range for a little while anyway. Scott, what is your year end target for the s p 500 and do you feel like even if the fundamentals suggest a bit of a bounce, what was to be expected that the election put the brakes on that lasting too long well, wilf, you know, the pullback was a little deeper than i think we initially expected but with very a target out that is toward 3600 in the s p 500 at the end of the year so, you know, thats basically, you know, the record high, maybe a little bit beyond that stimulus may be out of the question before the election if we see people gaining confidence and getting out, i think they can be there over the year were expecting october, november, december, a decent rally in the market. Liz, do you agree with scott that there is reduced april site for Corporate America if they are optimistic even as were having close to 900,000 people apply for Unemployment Benefits . I dont know that its less appetite for stimulus. I think there is just less likelihood for stimulus. And depending on what the outcome is, after november 3rd, we may not see stimulus afterwards either. So if we cant get through congress, its going to be tough to get afterwards. I think what you really to Pay Attention to today, first of all, going back to mikes point, there hasnt been a lot of headlines today. It was a boring day for investors. I think thats a good sign one ofst best signs of today is the small caps were up stronger than the large cap indices that is more of a garden variety recovery you want investors to have appetite for the small cap stocks mike, are we in a position where if there was a stimulus deal that got over the line ut would lead to a Huge Positive surprise for investors i think it does move in that direction right now. We sort of priced it out what matter most for is the makeup of strength and weakness within the market. You probably see a little more of the economic cyclicals and consumer area do better. The credit card issuers and things like that that is probably what you see as opposed to a broad scale acceleration of the overall market rally i think at this point the expectations moderated into what were going to get one of the reasons why the Energy Sector is up so big today is because there was this 12 billion deal between devon energy and wpx i wonder, we talked to the ceo of clevelandcliffs last hour. They did their value deal for one of their customers i wonder if youre thinking that we could see more Companies Getting opportunistic about where targets are trading and feeling a little bit of optimism about where the Balance Sheets are to do these deals . I think its going to be tough in the Energy Sector if you think of energy and certainly we had a bounce off the earlier in the year lows but when you think about energy performing consistently for a long period of time, you know, you need some inflation. You need tight supplies. You need a robust Economic Growth globally not just in the u. S. And we just dont see those conditions really developing at least over the next, lets call it 12 to 18 months. The so weve been unfavorable on energy we continue to be unfavorable on energy and eventually the way we see it at least at this point its going to be tough for energy to crawl out of this hole and lets say put on 12 months worth of outperformance in our opinion. Lets move on and talk about airlines its a big week for them they face a slew of decisions that are set to impact thousands of workers the 25 billion in aid the airlines received through the cares act. It expires on wednesday. Barring last minute government aid, 30,000 employees could be furloughed on october 1st. Sum up where we stand as we approach this expiration da date is there still likely last minute wiggle room for any of the big airlines good afternoon. Thank you for having me. So there are two vehicles being debated on the hill right now in terms of lastminute legislation. One is hay bill that was introduced by the Senate Last Week there is the exact same language there bipartisan appetite to extend the payroll by another six months for all the unionized employees through april. It doesnt look like there is enough support in congress to get it done before the deadline. We expect the furloughs will occur on october 1st as planned. Hunter, airlines back in the spring were unique in that they got sort of this Bespoke Program xrasted ju crafted just for this industry and they have a loan Program Outstanding that they have not tapped we asked executives like those from delta why they should get another program when there is an existing program that has not been exhausted yet so why do you that i is . Do you think that we should expect some of the airlines to have to go and take Government Debt before members of congress are willing to give them another package . Yeah. That is the issue there, cayla i think its a fair debate its a ligit question. Delta, south west, spirit said theyre not going to participate in the loan program. The loan program i think the argument probably their argument, not necessarily ours, is that youre going to be sad willing the Balance Sheets with a lot of leverage and debt and harder for them to deal with it and to recover. Payroll support can go straight to the employees can keep more of an infrastructure in place without the debt burden to recover in the event there is a snap back really, its about being able to be involved. Theyre still under 25 billion if they need it. By virtue, not taking that debt, theyre actually more debt for the with ones that are participating. Delta has proven, hunter, that it can be incredibly creative with the own sources of financing by accessing 9 billion backed up by the frequent Flyer Program is that something that you think that other airlines could and should replicate yeah. I mean, look, these Loyalty Programs, i dont think the math and the cash flows are, you know, what they seem to be that being said, there are valuable programs. But then the overall construct of the airline, airline is being involved with so much money and the Federal Reserve pumping liquidity in the system. Theyre desperate for yields yes, i think there will be other area lines that do mortgage their Loyalty Programs American Airlines has been a huge program they have a government loan. They think they may able to get a second lien on that. Theyre getting the programs and theyre getting values of, you know, 20 billion plus with the easy money policy and that is going on they can participate in that as much as anybody. Hirnunter, quickly, what is top pick in the Airline Space at the moment what is the real catalyst for that is it waiting for a vaccine or could it start to rally before them no. Were not going to call it a vaccine. The top pick is a panamanian airline. In the u. S. , its alegient theyre trying to build a hotel. That will probably get canceled as sim application story i think they have proven coming out of down turn thez have the best opportunity to pick up a lot of the scraps that the other airlines dont want to participate in hunter, thank you for joining us much appreciated pivoting back to the Broader Markets. Liz young, how worried are you about the prospect of short term pressure from the election im not worried about it. The i think its pretty natural. Im in we have the expectation of a party change in the white house, the market doesnt rally through that we should expect a weak september which weve already seen usually after that you see a bounce back. Then the market will have to work through the end of the year hopefully we have a nice earnings season and were optimistic that well get some good vaccine news in the Fourth Quarter from some of the phase three trials and then once we get into 2021, the next dig market moving event is that budget but obviously we dont know what that budget is going to look like until we know who is in the white house. Right there is a lot riding on Election Night crescendo of sorts with estimates of eight times normal volume just in the overnight futures market we still have a few weeks to go. Well leave the conversation there. The scott and liz, our thanks to both of you for being with us today. Thanks, guys. After the break, shares of apple getting a lift today the stock is still down around 15 for the month. Well speak with the top rated analyst about his outlook for the name and what investors should be watching into year end. Closing bell will be rht ba ckig 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. A good education takes you many different horizons and that sticked to my mind. So, when 1 a day came out, i said, why not . Why not just utilize that resource. And walmart made that path open for me. Without the 1 a day program, i definitely dont think id be in school right now. Each week for me in school is just an accomplishment. I feel proud every step of the way. Value strategy 84 of the assets on the books of s p 500 companies right now are intangible as sets, brands, patents, not factories if you were to invest in those companies that invest a lot in research and development, this is a back test, it shows you need more than double the performance of the s p 500 value. Really just more of an observation of what is going on right now and a way to square the idea that, yes, there are high multiples of earnings if you think about the intangibles as assets, maybe its a rationalization, but it seems as if this market is much more willing to reward that asset than the old type, wilf. Mike, ill ask a follow up. How does the intangible value strategy, how does that correct . Yeah. How does that reflect against the s p 500 . It krekts when there is two things i argue one is when the Business Models look like theyre not or nearly as magical at spinning this valuable for a long period of time the other thing that would help value on a relative basis is higher yields and higher inflation which would go to together inflation makes stuff more over time and more likely give Pricing Power to the old businesses i think those are the two things that maybe could derail this dynamic for a while. All right, thank you, mike. When we come back, wul talk about the shoe Startup Company valued at 1. 7 billion you can always watch or listen longc p. Nbap csi bell will be right back apple getting a lift along with the Broader Market today. The stock is still down nearly 15 since Early September. This comes as a federal judge says that a trial between apple and epic should be heard by a jury joining us now on the phone, Senior Technology analyst with bernstein. Great to have you with us. On your take on that development on the appleepic case, it will be heard by a jury z that alter your expectation of which way this might go . Look, i think given that jury will reflect consumers view, it could, you know, make it a little butt more faufrabvorable epic it faces an uphill challenge in, you know, trying to press against apple here overall, have you been surprised by apples sort of changes in the policy on the app store in the last couple of weeks . Separate from epic but nonetheless showing some flexibility or an extreme circumstances to their traditional hard and fast 30 rule yeah. Look, im a little surprised the fact that apple is making some concessions right now is sort of a dangerous precedent. And speaks to the fact that perhaps not all rules apply at all times. And really the backbone of the case has been we have a firm policy around participation in the app store and sharing commissions. Look, i think the other thing just more broadly is apples under tremendous regulatory scrutiny so to be perceived as, you know, bending in any way, i think also just raises eyebrows about, you know, whether apple is trying to put a better foot forward. There is going to be a resolution any time soon, tony its going to be almost a year before a trial what does that tell you about there is going to be this cloud or do you think it will be unscathed between now and then how do you feel about that regulatory process takes a long time. They ultimately ruled in 2018 and remedies were put in place of march of 2020 so typically, were talking about resolutions that take years. And even ultimately, you know, a jury ruling could be appealed and it could be stretched out. I think the real question is what happens if this verdict ultimately goes against apple. That they have to open up the app store. They have the apps from competing app stores or competing platforms. Thats really the question and at least in my mind, even if we took it to that negative outcome, im really not sure how damaging that will be for apple. There is this very con seen yent and safe place for consumers to go for apps. Much thats why there are two million apps there i think it will be difficult for other Application Stores to kind of create both that scale of that marketplace as well as the credibility that apple has established. And so, look, this is going to take a long time to resolve itself even if we look forward and think about maybe there is a negative verdict im not so sure ultimately how much impact that will have on apples 16 billion per year in App Store Revenues because of how entrenched the april store ultimately is among consumers. Tony, are expectations high for apple going into the Holiday Quarter and particularly around iphone sales well, i think many investors believe that we could have a strong cycle for the 5g phone which we expect will be announced in the second week of october. Now part of it is or most of it is not really due to the 5g phone itself i think its due to the fact that iphone sales last year were pretty lackluster and because the pandemic this year havent been great either. So we had two years of below trend sales for the iphone so if you have four new phones out with 5g capability, enhanced camera capability, will that provide the excuse, the catalyst for consumers to upgrade . Thats the expectation in the Investment Community and the combination of services continuing to do well. Tony, even once the new phones come out as amazing as they might be, you know, if if employees arent working in in the office, do you think that a lot of corporations will forego an upgrade cycle or at least put it off because twhoehey wont be facetoface with the employees to change out the devices . Most, most companies most apple products are purchased by consumers, a vast majority even for companies that support their employees for apple devices, its typically the employees decision and there is some subsidy involved. Most of the purchasing is coming from consumers you could argue, look, on balance, there is high unemployment you know, globally because of the pandemic you know koshgs that negatively impact iphone sales . On the flip side, you could say, well, look, consumers dollars are being shifted. Theyre they dont have as much money being spent on vacation the they dont have as much time, you know, spent eating out. For me its a consumer question rather than a corporate questions. There are pros and cons in terms of whether apple might benefit from, you know, from the fact that consumers wallets are shutout to other kinds of leisure activity right now tony, thank you. Thank you for having me up next, 100 million that is how much all birds just scored in a new funding round. The company is worth 1. 7 billion the coceo joins us next to atscuss how theyll be using th money closing bell back in a couple minutes. It was absolutely terrifying. I felt like i was just fighting an uphill battle in my career. As a little kid i knew that i wanted to work with computers. So when i heard about the applied Digital Skills courses, that definitely appealed to me. Youre learning how to create spreadsheets, documents, forms and surveys. Im thinking i can become more marketable. I got to about the third course and im like, you know, i probably could do this for a living. You dont need to be a computer expert to be great at this. These are skills lots and lots of people can learn. I feel hopeful about the future now. Its empowering to have that knowledge that nobody can take away from you. Welcome back sustainable shoe brand all birds is flying high after major new round of funding the company receiving 100 million in the funding round that closed on friday. Franklin templeton, t. Rowe price are among the investors in this round the latest funding values the company at a reported 1. 7 billion a slight increase from the 2018 reported valuation of 1. 4 billion joining us now is all birds cofounder and coceo. Good to see you again. Thank you for joining us. Thank you for having me so 100 million just raised. Will congratulations what is this mainly earmarked for . More new products or what . Yeah. A couple things. Weve had some recent success with some of the innovations we come up with both shoes and apparel that excitement from these they have consumers so excited about the new products so thats a big one. And ours are costly. They take time we use natural materials instead of synthetics. Of thats all just elongates the process for us to make something perfect. They shut down for a number of months globally. Were back and ready to expand the fleet and very executed about what were seeing in a bunch of geographies on that so excited to have the dry pouder pou powder to look for more store opportunities. Why go this route it was no the a big increase in terms of valuation is the first point. There are all other sorts of roots whether it is backs or Public Markets or even whether you outright rejected any possible takeover attempts the north star is to shine a light on the problems that the fashion industry, Footwear Industry have in contributing to Global Warming and Climate Change we do that through making Amazing Products that customers love and we feel like were in the early stages of this journey we really like the long term thinking of the investors. You mentioned a few of them. The new lead Franklin Templeton is in here for a decade and they grow and continue to increase their share. Thats kind of the shared expectation that we have when we bring a new investor along on the journey. And so private is great right now. And if the market continues, we would love to do that. We certainly continue to want to be an independent Company Rather than think about being owned by somebody else in a large corporation. What are the approaches at this moment in time, i think the uncertainty around the environment is causing everyone to just look inwards and make sure everything is all right so thats not something we considered in the immediate time in our history, of course, people reached out and talked about that but thats, you know, we always felt that the market that were playing in is so big and consumers and we launch a running shoe the were just scratching the surface of what we can do with a company and the material innovations we have. So lets keep rolling. So then given your desire, joey, for all birds to remain a stand alone company, the performance of recent ipos that weve seen and just the nature of the investors taking part in this capital round, i mean, Franklin Templeton and t. Rowe price are known as blue chip preipo investors i wonder if if you think with he could see a type of capital event like that in the near future i think the logical conclusion is maintaining independence and playing for the aspirations we have which are fairly significant we really want to reach a huge broad swath of consumers in the u. S. And globally. And so to do that, we need to invest in the business and invest in a bunch of different regions there is also the environment as a critical stake holder for us is logically to be independent Public Company joey, your products are well known as well as their sustainability characteristics of being very comfortable as one of the prime things that you try and make sure all your products are. Do you think you benefited from work from home do you think your broader type of shoe is gaining share relate you have to traditional sort of smart shoes that people would wear in Office Spaces . Yeah. You know, weve been quite lucky in a lot of ways when the pandemic hit the west in early march or mud march, you know, right after that in april we launched a running shoe it was incredible for performance for running and also shared the comfortable attributes that all of our shoes have and, you know, for the first time in ten or 15 years, people who hadnt run in that period of time are strapping on Running Shoes again. We certainly got some tail winds from that. We have a number of products that are awesome for working from home. We launched underwear if you can imagine that and taking our material innovation and our know how and putting that into that basic category within apparel was also, honestly, a home run success. I think that drew investor excitement but absolutely created tail winds from some of the work from home and just the nature of people being at their computers more often joey, im wondering how you see the Competitive Landscape. There are a number of other Shoe Companies that are hot on your heels to try to do exactly what youre doing a number of companies are doing direct to Consumer Advertising marketing a similar type of product. So do you feel that consumer is sort of fragmented to choose between one of these companies and how do you see the competition right now . Look, to get your message through in this day and age is difficult. What weve trud to do is just be very authentic and building our message from the ground up we try to educate consumers on the environmental aspects that we do were transparent we launch a carbon number so people under the score of how much we emit and offset and our pledge to be Carbon Neutral when they buy it. And we also really build r d from the ground up these are materials that are so different. This isnt like a recycled plastic or some other kind of more marketing story this is all about bottoms up material, innovation we use marino wool, we used tree fibers we use sugar cane manufacturing process in the spirit of perform answer and comfort you cant just get this by throwing on a commodity on to the website. The we just keep focusing on innovating we think our products speak for themselves so thats sort of the montra for us, heads down, and keep innovating so far, so good. Were so early on. We lunched just over four years ago as a company and were just Getting Started and pretty excited about the journey so far there are a lot of things you can make with materials, joey. Im curious, for all of the different direction thats the company could have diversified in, why did you choose underwear of all things . Well, you know, if you felt some of our products, the wool runners, the tactile nature and, you know, sometimes people have come to us in our Customer Service channel and say its like walking on clouds we want to be next to skin we think thats where the unovation that we created is such a delightful experience so we accented that with undergarments. We also have socks anything close to skin is something we felt we could own that and do that better than what is out there. And so for us, while the logical to many had consumers why we would do to socks and underwear, it made sense for us and the story that we created and this beautiful finer that feels like silk and cashmere, honestly. It was a pretty nice place to go and given our Business Model of youre only able to get it on allbirds. Com or a retail store, we can deliver that at such an affordable price for people that it just creates a lot of value we felt like it was a little more logical than might led on well just have to take your word on that Comfort Level for now, joey. We appreciate your time today. Thank you so much for joining us joey is the coceo of all birds. Thank you still to come, no need to sweat. Covid19 vaccination rates and worries over a vaccine rollout are misguided. Former white house chief ino scs. T Tom Philipson will jo tdius closing bell will be right back ms. Williams weve been working hard. Ms. Robinson . To make learning fun again. Ms. Duncan and making sure our students can succeed. Ms. Zamora were with you every step of the way. Ms. Robinson i know its a challenging time. Ms. Zamora no one wants to be back in the classroom more than teachers. Ms. Williams we have missed you so much. Mr. Hardesty but we all have to be safe. Ms. Robinson because were all in this together. Narrator making our School Buildings safer. Ms. Robinson working together, we can make it a great year. Narrator because the California Teachers Association knows quality Public Schools make a better california for all of us. Welcome back time for an update hello, everybody. Heres whats happening at this hour in louisville, the lone detective charged in connection with the raid that resulted in the Police Shooting of Breonna Taylor has pleaded not guilty. His pleas come five days after a grand jury indicted him on three counts of reckless engage e. Dangerment for firing into the home of taylors neighbors in texas, county share you have has been charged with evidence tampering for allegedly destroying or concealing video related to the death of Javier Ambler if found guilty, the sheriff faces up to ten years in prison. And a new study finds 12 to 17yearolds are likely twice to get twice as likely to get covid19 as 5 to 11yearolds. The cdc found black and hispanic children are more likely to be hospitalized for the disease even though overall hospitalization for kids is low. Can you go to cnbc. Com to see how the study might affect back to school plans. Youre up to date, guys. Back to you. That is such important data, sue. I recommend everyone go check that out up next, overblown vaccine worries . Former white house chief economist Tom Philipson says concerns over a vaccine rollout are misguided. Well get his take when closing bell comes back thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Are we overly concerned about the vaccine time line and how Many Americans would want to get a shot former white house chief economistist Thomas Philipson writing an oped titled no need to sweat covid19 vaccination rates. He says pessimism is misguided. He joins us now from chicago tom, good to see you you argue in this oped that there will be enough Vaccines Available for the most vulnerable including seniors and important to prioritize giving it to them rather than others. I want to show you what some of the seniors are saying cnbc has been polling likely voters in battleground states. I specifically broke out the respondents over the age of 65 in the last two months, their likelihood of getting this vaccine has fallen by 20 . So even for seniors, how do you shore up confidence for these vulnerable groups to actually get the vaccine . Let me explain why i think the seniors are so important 85 of mortality of covid19 in the u. S. Sits in the senior population so a vaccination rate that focused on them and high risk individuals would be dramatically reducing mortality. And i think, i wrote also that the demand for the vaccine will basically push in that direction. People are trading up Risk Reduction from infection is more valuable to high risk individuals against the side effects and what recently has come up is the discussion of the side effect as you indicate. How do you convince them to get the vaccine if theyre not convinced now and theyre less convinced by the week . I think thats what the fda is set up to do, right the fda is supposed to test for two things, effectiveness with the ability of the vaccine to mitigate an infection if you are exposed and the second is obviously safety which here comes down to side effects when we look hat vaccine demand, theyre traded up. So many times there is a tradeoff between, you know, vaccination or infection risk and side effects thats not news thats not new to covid19. Is not a lot of people around, a lot of people will be concerned about the side effects. I think thats what fda set up to do, to generate the evidence in a neutral manner without politics to safeguard everyone to make sure that they feel safe in taking the vaccine. You zero in the vulnerable population about a year ago when you ran the council of economic advisors you put out essentially a white paper on the economic benefit of a vaccine for a hypothetical flu pandemic in that document, you wrote large scale immediate immunization is the most effective way to control the spread. Im curious why large scale immediate immune decision for a whole population would be the right approach for a general flu pandemic but is not the right approach for this particular pandemic if youre in the middle of a pandemic, how do you speed up production of a vaccine . Thats exactly what operation warp speed is about and essentially what that has done is paralleled production of the vaccine at the same time were getting approval of it we estimated that value if it just pushes up the vaccine by half a year, then you get 1. 8 trillion in value from pushing it out from summer 21 to january 21 on an investment of 10 billion roughly which is an enormous return i think that key message from that report was vaccine production needs to speed up to be ready in the middle of a pandemic which is what were doing. I think thats bringing home now with the Public Partnerships that we all public and private partnerships that we advocate in that report. So, tom, if there is no need to sweat about vaccination rates from your article, when do you think well be passed the worst of this pandemic in that sense, i mean, you know, many people say the whole nation wont be able to be vaccinated until mid to late next year, will that able to be vaccinated to midtolate next year, will that, all the cohort you say is so crucial to this vaccines nation process be vaccinated within a week, a month, or so of a vaccine being approved i think the important thing here, again, is that concentration of mortality in the highest aged population. In particular, thats a nonproductive or retired part of the population mostly i have been pushing since march, and i advised the president on this, that the best strategy, which should be undertaken, is sort of a low mortality high growth strategy, and that involves protecting the high risk, in this case vax makes very quickly, and letting the low risk for which this is a flulike infection on average, not obviously for all of the diabetes and obese, et cetera, but for a large part of the population, let them participate in the economy and i think thats very, very important. And most countries are converging on that sweden did not because they didnt take care of their highrisk individuals in the nursing homes. A lot of other countries had very restrictive economic conditions, restrictions, did not converge on that now people are kind of in the u. S. , certainly we are converging on letting the low risk participate in the economy, take care of the high risk. Tom, i wanted to pivot away from vaccines and ask on the state of the economy and whether we are likely to face another major pull back in Overall Economic performance if we dont get another stimulus bill before the election, before the winter, before the possibility of covid rates picking up again well, i am a little bit different opinion here i think a lot of economists doesnt view taking money from some, in this case treasury buyers, and giving to others in terms of a stimulus recipient, doesnt necessarily stimulate overall activity whats important is that we have liquidity for those people that are stuck that they cant participate in the economy because of covid risks that i think is very important to continue. I think the way they did that in the past has been misguided because labor supply has been pulled back so much by these stimulus incentives, the liquidity provision, which i think people underestimate how important they are and despite the sort of labor supply being pushed down by the ui benefits, et cetera, i think we are recovering very quickly i wish we had more time to dive into that part of the debate, tom, because i have a lot more questions unfortunately, we have to leave it there, but we appreciate your time today. Stim ll to come, micron gearg up to report results we will break those down these dal details. And visit delivering alpha. Com to learn more and to register. Closing bell will be right back micron set to report results after the bell tomorrow. That and other keepings we are watching heading into a new trading day when closing bell returns. 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. How did you come up withd opened all these backstories . Tudio. I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. Tomorrow micron due to come out with results after the bell on the show tomorrow analysts expecting epidemis, the stock lagging the chip sector. Down 8. 5 . Up 10 in the past month citi opened a negative catalyst watch on the stock saying sentiment is getting too positive on the name, as you can see, it ended the session high by about 1. 2 , which we will be talking about tomorrow. Yeah, one of many things on a very busy week at cnbc delivering alpha, the launch of shepard smith, and a jam packed week the president ial debate, the end of the trading month and the last jobs report before the election should we be prepared for a lot of volatility . It would be intuitive if the market healld steady. I dont know if we are still in that world where end of quarter window dressing matters. It usually has a bullish bias. Wolf talking about micron up 1. 2 semis up more than twice that on the day. So thats usually a decent endorsement. So i wouldnt necessarily assume the market is just going to wait and see. It often does. But this week it doesnt seem like its poised to. A bad jobs number i think would have the ability to do damage to the market provided thats not the case, i get your point 1. 6 on the s p. Keep an eye on the dollar. That was down 0. 4 , helping sentiment for equities out of time on the closing bell. Thanks for watching. Fast money starts now. I am dominic chu. This is fast money. The trader lineup for the show tonight on fast money, markets in full on rally mode. Is it too late to get in on the games and action tony dwyer says why he thinks its not a bad time to buy later on investors snapping up shares