Transcripts For CNBC Squawk On The Street 20240712

Speaker pelosi and secretary mnuchin set to talk this morning after House Democrats roll out a new scaled down pandemic aid bill and calling it a propagator of disinformation, why the Biden Campaign is blasting facebook ahead of tonights president ial debate jim, david, good to see you guys, welcome back im taken aback, jim, by your tweet a moment ago about stimulus and sort of a fatalist i can view of what the restaurant sector is facing in this country. I will be candid, we ran out of ppp about three months ago, some of us have just decided to pay lots of employees to do nothing and its been its done they had a chance. I think they made a decision that you would have to keep these people on until we had a vaccine, so Neither Party agreed to anything and its too late. Theres nobody to give ppp to for the most part in restaurants except look, the winners were darden in the Small Business side, we know that they were viewed as nonessential, they never snapped back unless they had something to do with elective surgery, a small group of people. They blew it they can talk all they want. They blew it do they know they blew it . Who are they talking to . Do they talk to otelers . Theyre billionaires, theyre not going to get the break do they talk to small restaurants . Obviously not. Thats who i talk to because im more in synch with the small restaurants than anybody they are, as well as the bars it failed. Thats okay. They blew it they hated each other and they blew it. David, you know, there comes a time where you have to admit that only the strong survive. Yeah. How many months can i pay my 15 people to do nothing . Right. I ran out i did it for three months. It was nice. Did my best. Bonus people, but we are all waiting for ppp. They are still talking. I know. Theyre still talking as if everybody is waiting i gave up on my restaurants. Im sure theres great frustration as a result of that. There are plenty of restaurants, by the way, there are certainly in our area that are open, that are outside, that are trying some of them were not able to take the full pp or take it at all because of the 75 provision in terms of guaranteeing you would bring back as many 75 of your employees given the fact that many of them are running far below capacity that was not something many restaurants, jim, were able to step up to do. I understand your frustration as somebody who has owned a restaurant and a bar and an inn. I would counter by simply saying the stimulus is more than that, obviously, we also know that the key point of contention between the white house and senate and the senate and the house has been aid to state and local governments, which are in desperate, desperate need of that aid as well so while your point may be welltaken that restaurants, perhaps, its simply too late for, there are going to be beneficiaries here who are in desperate need of more money. Totally, but it seems like Speaker Pelosi wants to give the states, which are just i mean, how many states are bankrupt you cant even i mean, how many states can you actually give money to that if they dont get it they will go bankrupt, this he need t a lot of the states where are they . They are states that are not going to vote for the president. The president doesnt want to help those states. When it comes to small and mediumsized business, not just restaurants, sure, some can hang on you have to look at these outside. The outside works until its freezing and until it rains, until the department of transportation says you cant have many seats, the outside works until the police say youve got social distancing problems ive seen everything ive seen it is absolutely great, david, that the restaurants are still open on your side. We know that the restaurants are going to fail because if you have 25 inside or even 50 and you kept your costs the same, it was obvious that youre going to fail so, carl, i think we have to like its give up thats okay. Its give up time. Lost a lot of money. Sorry. Yeah. Well, technically, no, we are still waiting for some readout of what mnuchin and pelosi may talk about when they speak again today and for that we will turn to ie ylan mui. Reporter the houses 2. 2 trillion proposal is essentially a scaledback version of the covid relief package they passed back in the spring their new bill covers a lot of the same ground but for a shorter period of time so on state and local funding, which you guys were talking about, democrats are now offering 436 billion in aid for one year, thats down from nearly a trillion dollars in aid over two years, but still the white house says that its upper limit is only 150 billion in new money. Democrats also added some new provisions to this bill as well including 25 billion for the airlines with no furloughs through march 2021 and theres also designated funding in the ppp for the smallest businesses, nonprofits and hardhit companies. Some things that stayed the same, theres still 1,200 in direct checks and 600 in enhanced Unemployment Benefits through january. In a letter to her caucus House Speaker nancy pelosi said democrats are making good on our promise to compromise with this updated bill which is necessary to address the Immediate Health and economic crisis facing americas working families right now. Now, pelosi and the treasury secretary did speak last night, we are waiting for them to talk go then morning, but, guys, the window for action before the house leaves on recess at the end of this week, rapidly closing. Back over to you. So, ylan, its jim. Whats the point so many of the companies have already gone under so who do you give the money to . The 12 hubds a lot of people viewed that that was just done untargeted to rich and poor so that probably wont fly. When you talk to the head of airbnb he will tell you that business is up so huge because hotels just cant like my inn, theres no customers. So, i mean, who are they giving the money to i mean, at this point they can only give it to the states and secretary mnuchin so far has not shown a lot of give there. Is it possible that both sides think if we just keep pressing our position we will be able to argue to the voters that we tried and we tried and it fails . Because all this talking, it happened while Small Businesses went under and Everybody Knows that did it matter to them . Reporter jim, you know that there is a difference between policy and between politics. There has been a lot of pressure from some of pelosis moderate members, some majority makers, the frontline freshmen who were responsible for helping to give the house, give the democrats control of the house back in 2018 they had been agitating for the house to take a vote on something. This is a way for them to say, hey, we did our best, we tried to put something on the table and its the republicans who didnt agree of course we do know that there are areas of agreement between both parties, but we also know that pelosi has decided that her strategy is to be comprehensive in this and ensure that there is something for everyone, shes worried that if you start taking this apart the politics of it become even more difficult. Ylan, do we know how this is going to be received at the white house or the senate . You know, i can remember it was a number of weeks now since chief of staff meadows joined us on hair and hit a very positive tone in his view at that point and then, of course, Nothing Happened over these last few weeks. Any word at all . Reporter well, i think that you guys are going to find out pretty soon here in the next hour or so when you speak to larry kudlow, but i think that there was some positive signals from the administration around a compromised proposal that came from both some democratic and republican rank and file members of the house so there was some sense that there could be room for negotiation, but that proposal, the house leadership, democratic leadership, has already rejected it so we are kind of back to the drawing board. Pelosi here is putting some flesh on the bones of the overall topline number that she has been laying out for quite some time now and we will see whether or not its enough to get mnuchin back to the negotiating table and to actually move the needle here. A lot will depend on the sort of tenor of the conversation that the two of them had this morning. Ylan, we will wait for some guidance on that later on today. Ylan mui in washington. Jim, kudlow spoke and we are going to talk to him in the next hour but he spoke a week ago today, said that the u. S. Has regained control of the virus and that the u. S. Is in a selfsustaining, strong, vshaped recovery. He has not built in a lot of urgency around this package. No, i mean, thats really the point. Whosever left is doing really well if you base the economy on walmart, costco, home depot, lowes, wow, i mean, theyre having spectacular numbers these are Big Companies. If you just want to say that weve got great Big Companies and theyre going to duke it out and its good for the consumer, then thats a view its not the view from people who are small, mediumsized business its interesting, we should ask larry, he has always said the small and mediumsized business is the backbone of this country. Its also easy to say theyre doing well, its just empirically provable there are a lot of things being said in washington that make no sense whatsoever because it would have made sense two months ago, but there are periods where businesses go out of business because they dont have the cash flow and we are about to hit the last tranche when it gets cold and i dont understand, we have a vshaped recovery if you are walmart, holy cow, but how about if you are some small guy . You dont have a vshaped recovery because you dont have a pulse. David, bdo has new retail bankruptcy data out today. 18, i think, in the first half, chapter 11, which would put us on pace to get close to the 48 that we did a few years ago. Listen, theres no doubt as jim says that there are a lot of traditional retailers that are under great pressure, we know that if they didnt have a viable digital channel and one they could rely on and expand rapidly they are more or less done for i think we know that, too. And, again, you know, i come back to the berman interview i did a few weeks ago because the numbers, the sales numbers, are up dramatically year over year and as jim points out, it is going to fewer and fewer actual companies. So youve got more money going g. Ing to fewer companies, hence, yeah, for them its a v and for everybody else its just straight down, jim, and we would expect we will see more bankruptcies. We dont trade coffee shops. No. We dont trade guys, you know little carts that are scratching themselves to make money or we dont trade luncheon nets, we dont trade places that are dinners where you can only have 25 to 50 . We trade darden and we trade walmart and i want to congratulate washington because, holy cow, had they given shareholders of walmart and costco and home depot and lowes and target a gift if thats what they wanted to do, they succeeded. If they were trying to do a bill that would help small and immediate numbsized business they failed. The house did pass a 3 trillion bill in may. Yeah, but what happened it sat there because it was viewed as too large. Well, look which is you know, it was a big number, there is no doubt. Hey, listen, im a dollar sign represented by a man, we have huge v shape for walmart. So my advice to all the people who are desperate and bankrupt is go buy walmart. How is that for idiot view of things dont forget amazon i havent heard you mention amazon. Amazon versus theyre doing clothing now maybe they can hire all those people who have been put out of work at their other businesses. Perfect or they can all go work for lennar they need a good nail and hammer man. They failed us its okay. What else is new well, were going to try to track to what degree they put something together in the last minute, guys. All right after the break we will talk more about what to expect out of the debate tonight, whats on the line for the market as it pertains to tariffs and tax policy, and we will talk to larry kudlow, director of the National Economic council in the next hour. Futures in a tight range today dont go away. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. The battle rages on between tiffany and its once would be acquirer lvmh. The latest is a countersuit from lvmh that we received yesterday and this has become one of the battles for the ages and may still actually end up in court, we will see whether they actually get there in very early january in delaware. The latest suit from lvmh of course countering the complaint thats already been received saying they are in breach of the merger agreement from tiffany makes a couple of arguments. One of the keys is simply that, hey, do you know what, did you not carve out for a pandemic in the merger agreement you did not say, hey, if there is a pandemic it wont count towards creating a material adverse change to which tiffany is basically responding at this point well, differently. Let me get to those claims in the counter suit material adverse effect they say has occurred, tiffanybreached the covenants and then we will get to that letter from the french government as well in a moment as to this lack of a carveout in the pandemic, tiffanys response is actually pretty straightforward, which is, forget that, we dont believe theres been a material adverse change in our business in fact, they seem ready to prove that by saying that their second half of 2020 is going to be better than their second half of 2019. Key here will be the very soon to begin Fourth Quarter of course by far the most important quarter for the Company Overall and tiffany does seem quite confident in their ability to put up quite strong numbers for that Fourth Quarter. It would seem they are going to have to in some ways, it certainly will help their case in court when that does come, if in fact, that does come. Lets not forget one of the strangers parts of all of this was that letter from the Foreign Ministry in france that seemed to say was it an order or not, but did say you cant go forward with this deal at least until after january 6th because of our trade dispute with the United States in their complaint paragraph 175 they talk about the translation of the word should should is a translation of and im not even going to try to say that word in french used in the original letter in french which is understood to have a polite mandatory meaning under french law and they cite something from the French Supreme Administrative Court in 1979 and thats where they stand. Basically lvmh continues to say this is an order notice binding this is mandatory despite the presence of the word should. By the way, tiffany would say, hey, we havent even actually had possession of this letter, you were supposed to share it with us, you never did, you let our lawyers take a look at it in the office, they werent able to take a picture of it with their phones or anything else. And we go on from there. The question will continue to be, though, does it really have a binding effect tiffany is employing a great deal of french legal scholars to say not a chance, no way this has no real bearing on this this is not binding in any fashion and they will prove it, they say, if, in fact, they do get to court finally, weve got this from the companys chairman, had lvmh actually believed the allegations made in its complaint there would have been no need for lvmh to procure, notice that word, the letter from the French Foreign minister as an excuse for its refusal to close. We will get response from tiffany and then we move into more interesting territory which is will bernard renault, one of the wealthiest men in the world, lvmhs ceo, will he allow himself to be deposed on his way to actually getting on the stand in delaware at some point . Well see. Perhaps he will. Some believe that he doesnt want to go down that road. And then the question around, well, would they ever consider some sort of price cut to get this thing done. One thing i will tell you from the tiffany camp is timingwise they feel they have a better advantage of going to court and closing the deal than they do trying to renegotiate some deal at a discounted price of some kind because they would have to get a lot of new sec approval and things of that nature which could have the affect of delaying any close until march they got approval from taiwan today and are still waiting for eu which should be coming before the end of october jim, the key question remains, how is the business and is it really impacted for the long term the way lvmh says because they are in malls and are still relying on tourists coming to the United States to buy things. Look, it is difficult to tell estimates from whats really going on here because the estimates are very positive, david. I mean, theyve got really good projections for the Fourth Quarter, going to show low singledigit improvement in earnings, thats not bad they expect thats the adjusted eps high single digit improvement. Who doesnt want that business, david . It is a dynamite business. The analyst, guess what, they agree with the company. I know. At the same time vmh would say youre going to cut to the bone, impair the future performance of this business by trying to make these quarters or show up numbers, not on the sales line but on the earnings line. All i can tell you is that there are a lot of retailers doing better than they were six months ago and if tiffany i know that some people will say that tiffany you mentioned a bunch of them earlier. We know those. They are not that i mean, costcos jewelry is doing better than tiffanys jewelry but i do think when you see the Analyst Reports you have to say, wait a second, thats a good business. Yeah. And the analysts sometimes are accurate, david, sometimes sometimes sometimes. Right. All right get ready for a mad dash, will you . Tomorrow delivering alpha, it is back i know youve been waiting all year its the tenth year, by the way, double digits, big lineup, treasury secretary mnuchin, car louisiana harris of morgan channel, chamath pal happen tee i cant will jn oius squawk on the street. We will be right back. Tape looks to remain tight ahead of the debate tonight, but there are some dow gainers, home depot and nike lead that list and we have news on walmart, square, alphabet, bongei, target, amazon and more. Dont go anywhere. I cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. Announcer the opening bell is brought to you by nuveen. A leader in income, alternatives and responsible investing. All right. With about two minutes to go before we get to an opening bell lets squeeze in a mad dash. Est alloweder. The president should hold his ears because Goldman Sachs went from a sell to a hold today. The stock isup 63 since they went to a sell compared to the s p up 30 so it was an obviously bad idea and they admit that. Why was it a bad idea . They misjudged the Chinese Consumer turns out the Chinese Consumer is incredibly robust, beat back the virus where it started and they are on fire they are using a lot of makeup, its been a fantastic thing for organic sales in china have been incredible, its almost as if the virus never happened in china, david, and thats how back the chinese are and they missed the estimates, all because it looks like china beat it so viciously, david, they so tamped it down, whether you call it the chinese virus, i prefer to call it covid19, but it looks likes, david, china is back and theyre wearing makeup and theyre saving the estee lauder quarter you may not like that, i dont care business is business. Spending in china has been significant, right. Up huge we saw that in nike. The chinese went through this catastrophic thing that were trying to deal with and they came out on the other side as gigantic buyers of things that are american it wouldnt surprise me if apple didnt have a better quarter, there is a sky works today, 5g, makes a lot of stuff for apple says they can pre announce this is rather ironic, david, the International Companies you wanted, buy the ones that do well this china because china is doing well for american companies. Nothing one would have anticipated. No. Going into this pandemic. Small and medium size its usually the opposite. Im wondering 3m, i think theyre doing a fantastic job in china. China is where you want to be. I think this is ironic, both parties say that china may not be your friend, but, holy cow, is it saving american business, just like its not supposed to irony today, david. The opening bell, guys. Sorry, jim, what was that . There is just a lot of irony, carl i mean, a lot of things that we thought would be bad, china is fantastic. America not so good. I do want to point out that beyond meat is good, they got a deal with walmart, trying to get a little more from ethan brown, that is the millennial favorite. I had the meatballs. The meatballs were good. David, the meatballs were good for beyond meat. We used something of theirs in lass anya recent agna recent. Did you carpal lies youre supposed to carpal lies the lasagna. I dont know. You didnt caramelize i wasnt involved in the cooking. Carl, you know noknow to care that stuff before you eat it. They are going to raise the distribution to 2,400 walmart locations beginning next week. We have seen this before, jim, where they get a big deal and we find out the specifics, im thinking mcdonalds arent what we thought they were, we will see if this is different. Walmart is the biggest grocer i do think the one thing that continues to happen is they keep changing and bringing out more product and the other thing that theyre trying to do is cut price under tyson. We havent seen those results yet. We have to wait to see the numbers but ethan brown has decided he is on a mission and there are not many people other than elon musk and Trevor Milton was on a mission, david, i dont know if you caught his most recent mission. Yeah, who what Trevor Milton from nikola. What about it new mission. Which is . I prefer not to say. Okay. Okay yeah, its been do you know what, hes had a bad couple of weeks. Do you think . Yeah, i think its been a tough period. So have the giants but i dont see the giants doing stuff. Well, i think new york football has had a bad few weeks. The jets are having i dont see them doing this stuff. Its all bad. I dont know, carl, i think there are some bad teams out there and this nikola team seems uniquely bad. Our congratulations, though, to the Tampa Bay Lightning on winning the stanley cup. Right. Jim, more broadly on the market yesterday, 93 advancing, we got the russell up 3 and actually reversing the value part of the russell outperforming growth in september which was not the case in august. I mean, there is a lot of discussion here about whether, you know, depending on the tape aside, whether or not this rotation is beginning to work because people are thinking if we could get a spike in cases the lockdowns are not going to be the same. I think thats right and therapeutics are there, of course, you know, were just better at it i want to point out that yesterday the deal of the day, wpx merging with devin, which was a very significant deal because everyone has been waiting these stocks have all been drawn and quarter, but Rick Moncrief is going to be the ceo. How unusual is that when they are the minority and he gets to be a ceo because everybody in the business knows nobody is like rick. That doesnt happen too often. No. No, it doesnt, to your point, usually those kinds of social issues go the way of the acquirer not the company that is being acquired i thought it was very significant, carl, because it ignited the energy group which has been so horrendous and it started people started saying you have to buy pioneer. You dont have to buy anybody. Well, jim, i mean, you and i were talk about this on friday energy we were talking about exxon, remember, and the dividend financials yesterday see some money come in. Is it sustainable or is it yet again sort of one of these brief periods where there seems to be some hope . I think that financials are going to report and theyre going to have to say that they have a lot of nonperformers. And i think that that is going to hurt them its questionable, david, here is an interesting idea, do you think the president will be part of the nonperformers after reading the tax return hes got according to the New York Times he certainly does have some liabilities personally guaranteed in the not too distant future, things that would take place during a second trump term. Right are his loans being criticized i dont mean criticized like, hey, what a i mean criticized downgraded internally by banks given what we see or are there other assets that the president is going to reveal that make it so the president is okay i have no idea. If you were a lender to one of those where hes personally guaranteed it, listen, its not as though he hasnt been down this road before you know it very well. Yes. Declared bankruptcy in the casinos, the plaza hotel. Maybe he has all these assets and it doesnt matter. Maybe hes rich beyond belief and it doesnt matter if he didnt pay taxes he avoided notice they didnt say evaded tax they say he avoided tax. In the constitution you are allowed to avoid, its your duty if you want to pay fewer taxes you can provided you dont evade. I think that could come up in the debate but i think its important to recognize that the banks will be criticized. Will you hire me as a consultant and write it off . Will you do that for me, jim why, are you going in the housing business my wife looked at a couple hogs yesterday . If you want i feel like a sucker, i dont even know what i pay im in a city hated by the administration, this he do everything they can to possibly crush us and im still i pay, what, 55 . I work in new jersey and new york and the new jersey guys just put in a millionaire tax. I want to move to new york but its hopeless because i work everywhere. Somewhat difficult. Carl, its a mess, but you did feel when you looked at the president that maybe one day you would only have to pay 750. A wish list. Yes yep. Im sure thats going to come up tonight, jim. I think so. It reminds me of goldmans note today, david costen saying regardless of who wins the election just the fact that we got one under our belt should reduce risk premium. They also say david says that the combination of bidens proposals, higher taxes, but lower tariffs and more fiscal spending essentially leaves their baseline Case Unchanged in terms of the trajectory for s p profits. David what do you think of that . I dont know, jim i leave that to you. You are the prognosticator here when it comes to the markets and what would benefit more under which presidency. If you dont mind Peter Navarro, a lot of guys have to hold their ears Peter Navarro if hes somehow completely if his works is eclipsed by what biden wants we will kind of be back to where we can import a lot of stuff from china, i dont know what theyre going to necessarily do there are a lot of tariffs that have raised the price of things in the country from canada, much higher so, i mean, my take is that biden is a free trader and that that is the opposite of what this administration is they are not free traders and they are fair traders. Carl, i think that china gets a big break unless biden comes out and says he wants to continue the arbitrary and capricious policy of slamming the chinese through tweets and i dont think thats his plan. David, Vice President biden doesnt tweet national policy, does he . No, he is not a big tweeter no. No . No. Will he keep the president of china waiting while he talks with fox i dont know. I have no idea what what what will happen under that did you read i will tell you it will be very different if, in fact, he becomes president. You dont think sean hannity is going to not as important . Like Brian Stelters book. Are you going to be watching the debates tonight . It starts, carl, with a great anecdote that he has the head of china on hold because he has to speak to sean hannity. My prediction is that will not happen if biden wins im just saying. That and the fact that the giants will most likely lose to the rams are two of the most bold predictions i can make. I think the question is what go ahead, carl, sorry. There is only a few chances left as we said at the top to change the outlines of the race and the next three debates and then the vp debate are among them interesting, jim, the Biden Campaign is putting some more pressure on facebook today to remove those posts by the president. They called the company the nations foremost propagator of disinformation about the voting process. Rather than seeing progress weve seen regression. I mean, you have to couple that with moffett who takes their outlook higher today. The thing thats helping facebook is facebook shops, instagram shops, theyre doing incredibly well. Talking about maybe analysts talk about a 30 to 50 billion dollar choice. I think facebook will become the champion of, yes, Small Business and people will eventually shop attacking them because Small Business is sacred in this country except for when it comes to this bill that ive now given up on, david ive given up on it. Why . Because it hasnt happened. Yes, you made that very clear at the beginning of the show and one can certainly understand your frustration yeah. Without a doubt. Im really not into laying off people. I know youre not. Just doesnt seem right to lay them off. People make the point you should be blaming Governor Cuomo but the question is would people go regardless if they could and how many people and the aid is supposed to be here to help all of these restaurants across the country and these Small Businesses get through this period where there is going to be a lack of people even if they were fully available for full capacity, lack of people actually want to go. Florida is full capacity. Is that a good idea well, it depends if you are in favor of Public Health and fewer cases. Yeah. Right yeah. Guys, something we follow here as you well know and have for quite some time is the spac craziness, i guess remember i so glad you brought it up. Everybody has a spac and a dream. Two Different Things today, lets start with a little news that, by the way, has been reported by orts, certainly rumored for months, i heard this months ago, but its official now or at least it will be momentarily which is hims frequent advertiser, actually, i think weve seen some advertising during the course of this show, remember thats that telemedicine company, it has hims and also hers, they moved into these personal Care Products for both men and women. Its going to be oak tree. Which had been talked about in the past, oak tree raised this money quite some time ago, july of 2019, so they raised their money for that spac, 260 million bucks or so back then. There has been reporting that it would likely be hims i checked in on it a few times months ago, said they havent made up their mind, they have now. Also going to be a pipe that goes along with it private investments in public equity 150 million im told is the number there going up on that reporting that that deal is official or very, very, very soon will be announced. And then youve got one that was announced this morning, jim, i dont know if you saw this one, app harvest, its another spac related novis capital that stock it up 38 . The one that was on novis capital, he was on with Martha Stewart this morning, the ceo of app harvest. You have to take those up because its given did you ever try to put a pin in a spac. A lot of tomatoes. People just love spacs. Love their tomatoes and they love their spacs they love their spacs because originally under the pricing you get 20 of the company being the spac sponsor yeah i mean, people say to me its free money now, those numbers have come down, there is a negotiation of fees that goes on, the better the spac does perhaps the less you get percentagewise, but its still, carl, a very lucrative area and yet one that is continuing to prosper at least for those managers who get a deal done. Indeed. Guys, light volume and a tepid tape today as we wait for the debate lets get to bob pisani. Good morning, guys. Sort of a choppy indeterminate open remember yesterday a lot of the stuff thats kind of lagged on the year, the banks and the Energy Stocks all did a little bit better some of this may be end of the month gyrations but its not really happening today very tough to get a trend going overall. You see the banks weak today, they were big yesterday, energy was big yesterday, industrials were big yesterday, not really doing much again, we need a little more momentum here, health care which is defensive, utilities also doing a little bit better today. If you take a look do you know whats doing really well, thematic etfs, investing in ideas. They just love investing in batteries, lithium batteries or robotics or solar stocks or gaming stocks or 3d printing stocks the etfs for this they are attracting money, they are up 20 this quarter they love this idea of thematic investing, its a hot idea, of course, its all around Technology Overall starting earnings season, september has not been great for stocks, s p down 5 . So far we have had 14 Companies Reporting for the Third Quarter, that includes mccormick today ihs market, 13 of the 14 beat expectations, the average beat has been 27 thats crazy normally Companies Beat by 3 , 4 , 5 theyve raised the estimates, Fourth Quarter numbers are going up for all the companies that reported, darden, fedex, lennar, nike, autozone, put them up there, all those numbers have been going up in the last few days as they have reported in the last week or so. So a lot of this is driven of course by momentum and covid and its true, but all of its related. Its the three things we keep talking about over and over that will impact the earnings and they are going up generally. Reopening is it going well or not . Thats number one. Number two is stimulus, is there more or less and is there a treatment or vaccine in are there advances or not . This is impacting the earnings when we have problems with the reopening story stocks go down because of concerns with earnings all of this is interconnected. Theres not a lot of guidance still. Theres only 60 some companies that have provided guidance so far. Almost a quarter of the s p provides guidance. One company that did it today was mccormick, they had withdrawn guidance, they have provided it for the overall year, a little bit below expectations so that stock has been trading down but a good performer overall. Theyre doing a two two for one stock split. At home up 15 , carl, look at that, restaurants still down 1 . There is a microcosm of whats going on in the u. S. Economy right now. Carl, back to you. All right, bob, well see you a little bit later were getting, i think, six fed speakers today, we have german inflation numbers, a good day to get Rick Santelli back hey, rick. Yes, indeed, carl im sure those six fed speakers will make everything just so perfectly Crystal Clear for all the rest of us with regard to how were supposed to invest our dollars. One thing we do know for sure most fed members think more needs to be done but the more that needs to be done is aimed towards congress, we will have to take a wait and see approach. One thing we dont have to wait for is a record sized trade deficit at least on the advanced reading for august, minus 82. 9, this is fascinating because if you look at imports and exports they were both up, as a matter of fact, imports were up 3. 1 to 201 billion okay 201 billion versus the all time tie precorona which was 238 billion. Experts up to 118 billion their all time high from may of 2018 is 142 billion. The point here is that its our consumption. Its our demand pulling in from other economies that are ramping up exports though they may not have the same type consumption numbers, you want to really Pay Attention to this. One week chart of ten year note yields theyre drifting lower. At 50 basis points thats the all time low, we are at 64, down a couple dollar index where all the action is of late, a oneweek chart it peaked and now its back down below 94 after reaching close to 95 year to date chart shows us the issue. 96. 40 we were close, were only down a couple percent but it went up to almost 103 in march, thats what we really sense is how much its fallen from the march highs. Carl, jim, david, back to you. Rick, we will see you in a bit. Rick santelli. Stocks largely unchanged this morning, still to come, the future for tech and the cloud, do not miss our exclusive with vmware Ceo Patrick Gelsinger as the company kicks off vm world today. We will be right back. Amazon is allowing to you pay for grocery items with the wave of your hand. The companys announcing its unveiling its amazon one palm scanning Payment Technology at two of its go Convenience Stores in seattle the service connects your palm print to a credit card amazon hopes to expand the technology to other stores, sports stadiums and offices. Jim, we got some new jobs announced by them in canada yesterday, got some dates on prime. Its been a busy news week for the company. Who can possibly compete with them, i mean honestly, what supermarket . Kroger had a good quarter but really doesnt, what, wave of hand i want to go there ive been to the Amazon Stores in San Francisco, theyre incredible but this is just one more technological advance that puts them well ahead of all the other brick and mortars, except for walmart perhaps and target so thank you, stimulus youre too late. Amazon, david, has won game, set, match how many packages you get from amazon this weekend . There were a couple how about you, carl, from amazon this weekend . Yep, theres been a few i got four. Very good. I wish they put them all in one box but thats okay. Its good for the cardboard companies. Sxw you get them from walmart, target, costco heat lamps you ever heard of prime ive heard of prime i got them from costco. Guys, were going to talk about obviously the macro effects of that story and more with larry kudlow in the next hour stimulus talks, covid, the economy, the debate, dont miss that dont go anywhere. My father always reminded me, 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. Got some laggards on the s p. You see mccormick and devon, tapestry, wynn, mgm, well watch that as we lead up to the president ial debate tonight, 9 00 p. M. Eastern on fox were backn mont ia me its time for jim and stop trading. Bath l grou battleground, micron Western Digital has drives and Western Digital is going up. People talk about Western Digital splitting off. Will micron merge their drive business we dont know. I will tell you this, there are a lot of people shorting micron, betting on a failure tonight, people have been saying last reference was a sell i dont know its tech and techs been winning. Yes, and in your absence yesterday we talked briefly will citis negative catalyst call ahead of the print but youre not buying it . The stock trades down to 47 and you buy. They have a big buyback and look, theres a lot of stuff coming in the fall that needs deramp in the winter longterm you got to own micron i think. You have to. All right what about mad money tonight i have mccormick, im wearing the tie, not helping the stock one bit. Polaris, scott wine and people want to travel the great outdoors, same thing with bob martin, rvs, having seen the numbers, i cant believe the stocks arent higher i think theyre all buys not mccormick, i have to learn more about i read that bob martin presentation about thor. They are the highest number of sales, lowest inventory and how much fun is it to have an rv, as long as im not driving . My wife is a great driver. Or a snowmobile and a snowmobile. As we go into the winter. You guys are going to leave me and go without me youre free to stick around if you want. You know that. If you want to, great. Otherwise well see you at 6 00, mad money obviously 6 00 p. M. Eastern time good Tuesday Morning, everybody. Welcome to squawk on the street. Im Carl Quintanilla with david faber and sara eisen coming to you live from various locations. Consumer confidence, lets get to Rick Santelli yes, september read on Consumer Confidence from the conference board, expecting a number around 90 our last read was more than a sixyear low at 84. 8 big surprise, 101. 8. 101. 8. This is intedeed an overperformance on the confidence side, the best number since march and the revision is coming, 84. 8 now gets upgraded to 86. 3, which actually makes the worst month now of june, june was 85 and change, that goes back about six years ago, lets look at the internals, shall we on the present situation it improved from 85. 8 up to 98. 5 and what lies ahead on future expectations we move from 86. 6 to 104. 0 so we can look at various parts of the economy to try to gauge how the investors and how the consumers are feeling, but this particular read certainly shows a bit of optimism we havent seen in other reads. Sara, back to you. Thats good to see. Rick, thanks democrats unveiling a new 2. 2 trillion covid stimulus package, our ylan mui has details. Any word from the white house . Reporter not yet we are waiting for House Speaker nancy pelosi and treasury secretary to speak this morning and find out if there is a path forward on another covid relief package. The two spoke last night minutes after democrats dropped their 2. 2 billion proposal. They tried to add key provisions, 25 billion in aid to airlines and extension of ppp with designated funding for the smallest businesses, nonprofits and hardhit companies democrats have also come down in several areas from their previous proposal in the spring. State and local fund something now at 436 billion for one year they also reduced the money for the Postal Service from 25 billion to 15 billion and in some areas, they have held firm. Democrats still calling for 1,200 in direct checks, and 600 in enhanced Unemployment Benefits now, i am told that if the talks between pelosi and mnuchin signal the prospect of another deal is dim that democrats are prepared, guys, to vote on this package this week, even though they know it would go nowhere in the senate back over to you i guess, ylan, it offers a glimmer of hope the lines of communication are open and the House Speaker and treasury secretary seem to be talking about it whats really the likelihood of passing any stimulus before the election right now seems very slim that something would happen before november, but youre right. Treasury secretary Steve Mnuchin said that he had 10 to 15 conversations with the speaker over the stop gap funding bill to keep the government open past tomorrow those conversations were productive, sort of laid the groundwork to continue the talks about another covid relief package but right now the two sides are still about a 1 trillion apart and there is no sign that either side is yet willing to buckle on that. My other question was what about state and local government aid . The governors are begging for it its not just democratic states and blue states, though the republicans indicate as such economists are saying that could be the next shoe to drop when it comes to the unemployment figures and real millions of job losses potentially at least hundreds of thousands because of the holes there. Is there any discussion . Reporter democrats shortened the time frame for that aid. In the previous package they passed in the spring, they had put in nearly 1 trillion over two years. This package cuts the number roughly in half and has funding for only one year, that is still a point of contention with the white house. They say the dollar amount looks smaller about you essentially still the same pot of money, just for a shorter period of time so is that a compromise thats part of im sure why both the treasury secretary and speaker are going to be talking about this morning ylan moye, thank you, with as fresh as we can bring it in terms of where we stand on the stimulus lets get to nicola shares, under pressure, down 70 in what is just the last few months of trading. Phil lebeau fills us in on the latest or saddest if youre a nicola shareholder, phil the pressure today comes following a cnbc. Com report involving two women who are accusing former nikola chair Trevor Milton of sexual abuse, one dating back to 1999 and the other 2000 4 a representative denies the allegations telling cnbc mr. Milton strongly denies these false allegations. At no point in his life has he ever engaged in any inappropriate physical contact with anyone. Thats a spokesperson for Trevor Milton all of this happens separately while we are looking at General Motors and wondering will the gm deal close in gm is expected to take an 11 stake in nikola. The closed date september 30th General Motors has not said whether or not it will close by the 30th a statement saying our transaction with nikola has not closed we are continuing our discussions with nikola and will provide further updates when appropriate or required. Well be watching this and all of this raises questions about former gm vice chair, steve girsky, putting together the nikola spec ipo and guiding the company through its agreement. We have not heard any comment from the company regarding the status of its discussions with General Motors, but no doubt, david, this is going to be one of those stocks that people are going to be focused on to see does gm go through with the deal do they change the terms, perhaps make it a little bit more favorable from General Motors to stick with nikola, a lot of questions there some of so of the reporting around the Due Diligence gm did suggests that gm found their technology, gms technology was in some cases superior but nikola had access to the capital that was going to be necessary to get this broader effort off the ground does that sort of match your understanding . Thats my understanding as well the 11 was the element to get the deal off to the seminikola is developing, those were important elements as well if this falls aside from the reputational hit theyll take for people who will say look, you should have done better due diligen diligence. That is one of the key elements of one of the inkind payments phil, fascinating. Well cover it with your help, thanks, phil lebeau. In a moment we are expecting a potential compromise on stimulus, joining to us talk more is the director of the National Economic council, larry kudlow welcome back good to see you again. Thank you, carl, appreciate it do any of the houses revisions make this more palatable to the white house theres a lot of talking as you reported secretary mnuchin spoke with the speaker over the weekend, i believe they spoke yesterday i know theyre scheduled to speak today, i spoke to the secretary earlier this morning they have a new offer on the table. We dont think the numbers are right. 2. 2 trillion a very big number theres some leftover spending not included there and some tax cuts that are repealed might constitute 0. 6 trillion. We have a number of asks both sides agree with, four, five, six that would help the economy. Ppp extension for Small Businesses, 105 billion to get the kids back to school. We call it kids and jobs supplemental Unemployment Insurance would be helpful we need significant assistance are really essential, they would certainly help us climb out of the contraction and for some reason we cant get it done. Conversations and talks will will continue. You said this a few times the notion that the recover i have not contingent on this package so if investors see the two sides go on would you not be bracing for a rise in layoffs or weeker jobs number not this friday but the next month . Not tiparticularly all the figures keep coming in you can run down the housing sector is powerfully moving. We had terrific report on machinery and manufacturing from the capital goods, the core capital of goods late last week, retailing looks very strong. Weve been looking at some of the credits that are showing continued strength in retail spending inventory shelves are bare we have to go through a buildup in the inventory cycle, so no, i dont see look, i cant predict the virus and the rest that goes with that, but were not going to shut down the economy. I think the vshaped recovery is very much intact again the socalled stimulus talks, some of these specifics would just really help again, kids and jobs open the schools, whatever help they need with respect to covid repairs and renovations and equipment and testing and so forth. Help the Small Business. Youve got money left over from ppp. Unemployment assistance, airline assistance, there are things i think that both sides agree with, but then the other team wants a gigantic larry, its david. Were close to a month or so from election day. Theres a picture of you there do you think the New York Times reporting on the president s lack of taxes completely legally done nonetheless shines a light on the inequities in the tax code to make it more difficult in a second term to engineer more tax cuts david, i cant speak to the president s personal taxes regarding his second term policies to grow the economy, hes asked us to take a look at a new class income tax cut hes keen on a payroll tax deferral and like to see complete forgiveness for that deferral that would be a huge wage for nearly 147 million bourquers who have been on the job hes looking at Capital Gains tax reforms, hes looking at 100 expensing to make that permanent. Essentially i think hed like to make all the tax cuts permanent from the 2017 goaround. They stimulated the economy. They drove down unemployment weve just seen from the Census Bureau a tremendous pickup in real wages, that is real Family Incomes, record pickup, five times the rate of increase of the prior eight years and really the first raise since the year 2000 for the middle class and lower wage folks i think youre see this evening the president will reiterate these growth policies that will get us back to prosperity and recover from the pandemic. On the other hand, you had the other side, they raised taxes and regulations. The slowest recovery on record, very weak left us in 2016 and apparently according to mr. Bidens campaign, theyre going to do it again, more taxes and more regulations i dont understand that. It doesnt make any sense, but thats going to be the essence of the debate. I havent seen the wall street journal article ill take a look at it but why should the president follow through . It worked brilliantly and were starting to recover and it will work again we did have growth more or less every year after the Great Recession and we did have more jobs than then we do now still, larry. Yes, look, we had the lowest unemployment under president trump, 3. 5 , and that was spread evenly across every cohort, africanamericans, asians, hispanics, people without college education, people below high school education. The distribution, the diffusion record low Unemployment Rates he achieved thats a fact. The Census Bureau numbers on real Family Income are so important because they measure Living Standards thats the basic measure of Living Standards people have increased their real income theyve increased their wealth the inequality reduced poverty rates came down. These were all reversals from the prior 8 and frankly 16 years, so the president is going to be proud of that and is going to try to communicate this evening and on the campaign trail is he intends to follow through with more of the same. We will rebuild prosperity we built it once we will rebuild it again larry, its sara. You mentioned the census data. The hamilton project points out one in three families with kids is food insecure au im not sure how you match the numbers up with the vshaped economy that everyone is feeling good it seems very unequal. We have an 8. 4 Unemployment Rate and more than 800,000 new jobless claims per week which is four times the normal number how do you square that well, look im not sure what project you mentioned. I couldnt quite hear you. Hamilton. The hamilton project. One in three families. Food insecure. Im not familiar with that, but what i will say is this, the Census Bureau, a reliable source indicated without question, in fact, poverty rates down and inequality down, while real Family Incomes up substantially for his three years, prepandemic, so that tells you that the policies worked you cant dough nigh that. The Federal Reserve put out a bunch of numbers on Consumer Finances that painted exactly the same picture now, youre referring to the current situation. We are moving in the right direction. There is no question first of all, the underlying economy was strong, the policies were pro growth with plenty of supply side incentives and rewarding work and investment. Those now continue theyre not being repealed they wont be repealed under president trump. We are rebuilding in housing and retailing and automobiles, all sectors have come alive. Youll see a big inventory buildup. You can take a snapshot at any point in time, and in the aftermath or during this pandemic, it still exists and the fact is were beating it the economy, lets face it, the economy is performing now with respect to the increase of nearly 11 million jobs, 14 million household jobs a big drop in unemployment to 8. 2 nobody expected Single Digits until early next year. Were seeing all that. Continuing claims, initial claims, all trending Lower Consumer spending is strong. I think were off to a great start. For sure. Were outperforming expectations well have at least 20 Economic Growth in the second half of the year i think the atlanta fed gdp now is Something Like 31 or 32 those are all good indicators. I think we can roll into next year but the key point is to stay with pro growth, pro prosperity, Economic Health policies this is no time i dont care whether youre keynesian, supply side or what, nobody should be arguing to take money out of peoples pockets, having come out of this contraction or trying to climb out. I dont know any theory in economics that says you should be raising taxes and regulation if youre trying to restore Economic Health. I just dont get that. No, its certainly something the Vice President will have to explain. Larry, all the points you mentioned about the progress and the fact that were looking at a gdp rate this Third Quarter that could be north of 30 , doesnt it have to do with the fact there was tremendous stimulus, monetary and fiscal and it was there, to your credit, to plug that hole where we saw doubledigit unemployment. What i dont understand is why theres not more urgency then from you to keep that stimulus going, because it is expiring and at some point, the economy is going to have to face up to the fact there still is a very high level of unemployment, and without more stimulus flowing, its going to catch up and it does raise questions about what the Fourth Quarter looks like in terms of growth and beyond im not look, okay ill just make this point. The package last winter was a very strong package. In my view, the ppp for Small Business was a stroke of genius, and we needed to throw everything at it we needed to use all the federal levers of power, and we did, and the president led, and it was a bipartisan package so it was a big help no question about it now right now, were not gop, the white house and Republican Party is holding up this package. Wref ma we have made concrete, specific, welltargeted and smart policy proposals to aid welltargeted sectors such as returning to school and helping Small Businesses and we want to help the airlines and we can have more assistance for unemployment to continue. Were not ending it. Were not the ones stopping this on the other hand the other team has a gargantuan package that still approaches 3 trillion when its scored properly and at least a third of it, if not more has nothing to do with covid at all, and nothing to do with economic assistance. Unfortunately, unfortunately its a wish list of democratic ideology and politics for the campaign it does not really attack the economy or covid so were ready to make a deal on these targeted aspects which have bipartisan support. That could be done theres a middle ground here but were not quite reaching it yet, but lets see, secretary mnuchin is hard at it. Speaker pelosi is hard at it so i wont judge it negatively im saying thats our view we think we put up a good plan yes, finally, larry, the last question, kind of raises the point about whether or not you expect tonight at the debate the notion of paying down the ballooning federal debt to be a question or an issue well, thats a good question. Im sure it could come up. I dont know my view on it carl is simply right now, president trump, this year used every level of federal power at his disposal. We did get a good bipartisan package and i think that was the key point to get the economy, to get families, to get the workforce, to help unemployment, to get us through this with lots of assistance and liquidity. I think that was the right thing to do. Yes, we had to borrow more, but thats what government is there for, in an emergency and good point, the Financing Rate is only 50 basis points or so i would add one factor probably underrated, massive monetary stimulus the feds Balance Sheet is exploding, they set up lending programs and the m2 money supply is growing at 25 year on year the fed is doing its part, continuing its stimulus and i think right now, were sensitive to the debt issues, but this is not exactly the right moment over time, the emergency actions will run off, hopefully prayerfully as the economy recovers and everybody goes back to work. Everyone can go back to work and well be in better fiscal shape. We do look forward to that day, larry we appreciate you coming on and helping us prep for the debate its going to be a Big Conversation tonight good to see you, thanks. Thanks, carl, appreciate it larry kudlow. Tomorrow, delivering alpha, back for its tenth year, secretary mnuchin, carla harris of morgan stanley, visit deliveringalpha. Com to learn more and register. Dow is down just about 16 in, sd pite. Potsnaaqosiv welcome back time for our etf spotlight today we look at Consumer Staples xlp, trying to hold on to gains for the year. Currently trading up just fractionally one mover is not helping the cause today,mccormick. The spice maker, beating earnings estimates reporting very strong sales growth in its consumer segment, although that was offset by lower demand in the restaurant and Food Service Business in particular the Fourth Quarter outlook was a bill bit underwhelming the Company Announcing a twoforone stock split the first since 2002 its overall been a huge winner as people cook from home and need their spices to do so franks red hot continues to be a hot seller tonight, dont Miss Lawrence kur kurziuso on mad money. The dow is up four points. 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. Tomorrow dont miss delivering alpha back for its tenth year some of the lineup, leslie picker has more on what we can expect hey, carl you can believe its been a decade but on its tenth anniversary delivering alpha will look different given the event will be all digital but sacrificed nothing in terms of the powerful voices from business and politics attending tomorrows event will be bookended with treasury secretary steven mnuchin, speaking with becky quick and senator Elizabeth Warren interviewed by jim cramer. Dont miss david fabers panel, Public Investment Fund Governor and aramco chairman and blackstones ceo sara is leading a panel on activist esg, environmental social governance and investing joined by jeff ubben who started inclusive Capital Partners with a mission to make impact through Shareholder Activism hell be joined as well with john rogers of aerial investments. Ill be sitting down with josh harris, cofounder of apollo, one of the most active de dealmakers this year others include Mary Callahan erdos, cpo of jpmorgan Asset Management and jamal pabatia, founder and c oh, of social capital. Promises to be another good event. Thank you, leslie picker lets get to sue herera back at headquarters for a news update good morning, everybody a rising death toll in the california wildfires, three people have died in the zogg fire in northern california. In San Francisco more than 60,000 people have been ordered to evacuate in sonoma counties go to cnbc. Com for more on the impact of the california fooild wi wild fires in nagornokarabakh fighting continues between forces both sides accuse the other of escalating the hostilities secretary of state mike pompeo joining calls with many foreign leaders for an end to the attacks. And in israel, hundreds protesting a proposal to curtail public demonstrations during the Current National lockdown. Critics say the proposal is an effort to muzzle calls for Prime Minister netanyahu to resign a busy news day. You are up to date see you in an hour david, to you. Thank you, sue. After the break dont miss an exclusive, cignas ceo David Cordani joining us squawk on the street will be right back lets get to Bertha Coombs with David Cordani thanks very much, sara. Cigna has a new study on resilience, our ability to deal with the stress of these moments and six months into the covid pandemic, the findings that older adults seem to be handlinging the moment fairly well but the kids are not so okay, specifically gen z young adults in their teens and early 20s. Ceo David Cordani joins to us talk about the findings. So great to see you. I know last year, you all looked at the issue of loneliness now youre looking at resilience, peoples ability to withstand stressful moments like this what made you particularly want to research that this year good to be with you, bertha as you know, as a Global Health Service Company we define health and wellbeing broadly, understanding the whole person needs, so building off of our loneliness work, we had some view in terms of the ability to overcome obstacles or rebound from challenges that may be a bigger challenge today than it might have been in the past, so as a partner, we partnered with some researchers and fielded this research that provided the conclusions you articulated that tells us, yes, those younger adults see a resiliently curve that kind of comes down in life in general and rebounds and comes back up and the current environment pushes that a little further and secondly, we see that individuals who are displaced from employment also see the resiliency come down and that tends to follow on to more challenging, whether its mental health, Behavioral Health, some physical Health Challenges we want to best understand those we could serve and anticipate needs and be in a position to help them proactively. I think we have that graphic, the curve, folks in the 18 to 23, 24yearold age group, and those are the folks who suffered the most when it comes to unemployme unemployment, still at 14 from the most recent report that we have are you finding that that group is reaching out more to try to get help, whether it be to try to get more antidepressants or more therapy are you reaching out to that group to suggest to them that maybe they should . First macro societally were seeing during the covid epidemic, for example, in the United States, the use of antidepressants are up, no doubt, relative to that. The use of sleep aids are up, theres no doubt relative to that coming back to the core of your question, we want to best understand again those were able to serve and create awareness, part of this is to create awareness relative to that and introduce other tools in addition to medications or access to medical resources that could help individuals deal with challenging situations, like our grow forth framework that encourages people to kind of ground themselves in the reality to essentially understand alternative resources that are available to them. We formed some of those resources through cignaresiliency. Com and additional Resources Available to individuals and if medication or therapy is necessary, avail those resources. Its redefining a problem statement, creating the awareness, broadening the definition of services that are available, either direct to the individual through an employer, through a health plan client or with a physician partner, thats what were doing with it right now. One of the things i found interesting in the study was that the issue of the sort of racial reckoning happening in the country is one of the things that is weighing particularly on young people you also looked at how him that packets the workplace. I found it interesting you saw greater resiliency among workers in a more diverse workplace. Tell me about that, and how does that play out at cigna yes, so youre absolutely correct. First were a large servicer of employers of all sizes, small, medium, large, government, nongovernment employers, et cetera, and employers need healthy, productive present highly engaged coworkers to make their businesses vibrant and ideally an affordable, predictable fashion so you work from that back words and have finding like this, whereby individuals who embrace diversity in the broader sense of the word are more learning oriented, learning is a good thing, more openminded to different views and perspectives, and then create more shared experiences with individuals from that standpoint back to at cigna, we have over 70,000 clears and we embrace diversity in the broader sense of the word and back into the United States as we deal with the racial tensions that were dealing with as a country right now, we try to enable open form dialogue from top through our organization through our colleague resource groups. Weve evolved programs yet further both in terms of our Community Support and Community Activation from that standpoint and we work to ensure we have a diverse population that could thrive with open engagement from that standpoint. Those privileged to serve in the United States and across the world are diverse and we need that diversity to have best practice learnings and innovation and serve our customer its an everyday present exercise and im proud of the way our company is showing up relative to that. Hi, david, its sara eisen. Hey, sara i wanted to turn our attention to an issue very much in the news hey and that is the Supreme Court, the potential balance shifting even farther to the right, with president trumps new Supreme Court pick whats your expectation for the aca and the lawsuit that the Supreme Court is set to hear after the election, whether they can hold up . I think you are are planning to expand your aca exchange busine business whats at stake . Sara, you know us as a large, diverse Global Health services company. We sought to make sure we have multiple growth platforms. We have four large growth platforms in our business. We were early on accepted to the aca in 2014 but stepped in more cautiously because the first three years will be choppy for the country but we stuck with it and competitors have come and gone we stuck with it and continue to grow and evolved services to work for the customers we serve in large part by partnering with valuebased providers. As it relates to the Supreme Court, whats going to transpire, we will work to make sure we innovate the products, programs and services to support our customers through employers, through health plans, through physician relationships, through direct individual relationships and youre correct we are currently expanding our individual Exchange Business yet further in 2021, because we have more Physician Partners that want to do that with us, and we have a broader adjustable market our diversification will help us position whatever transpires in the Supreme Court, but we want to make sure that we are able to take care of those individuals most in need, both through the individual Exchange Program and beyond and were well positioned to do so david, its david faber back to your work that youve done on loneliness something that hasnt been if he cussed on is deaths arriving from opioid overdoses, after a decline finally from 18 to 19. Is there a connection there, something we should be, not that we havent been concerned about but more concerned about again david, good to hear your voice and see you. The Opioid Epidemic roll back the clock multiple years we were early to lean into that publicly and we came forth with a statement saying we would reduce the consumption of pharmaceutical opioids for our customers and patients by 25 over a threeyear period of time and we did it in about two years by partnering with physicians and using data and engaging individuals more comprehensive it was an important start and the industry broadly speaking leaned in relative to that theres a correlation but not one for one between open noid overuse and loneliness the loneliness is more broad we went you Opioid Initiative and continue to evolve that including addressing the death rate correlated to opioids rights now Community Leaders into loneliness with more broadly defined challenginchall. Coming back yes, theres a correlation but its not one for one and both need to be managed clinically, individually and in deep partnership with practicing physicians both medical physicians and behavioral physicians and we have the repository of services to be able to do so. David, i want to jump on that issue of the providers and resilience for them. We are potentially facing a big second wave coming this winter were already seeing the numbers of covid infections rise even here back in new york, where theyve been low for so long how are you working with providers and how are you bracing for yet another wave of this pandemic . Yes, so bertha, a few thoughts there one, we were early on a decade ago expanding what you know as valuebased relationships with health care professionals, trying to align incentives based on outcomes to share Clinical Resources more broadly, nurses, health coaches, behavioral professionals and use data to more proactively serve patients from that standpoint we learned that physician organizations integrated Hospital Systems or independent physician groups that are practicing care that way actually have higher satisfaction, the doctor, the nurse, the nurse practitioner, the support staff, et cetera, have higher satisfaction in terms of whole personnel so we continue to push that forward through that lens. Point two is, during the covid pan demmeic, we see that many physician organizations have been massively challenged economically because of the rebalancing of services, and were trying to work one group at a time in terms of Financial Resources to support our partners as we best can, and then third, you may recall that some time ago we announced the brave of heart fund where ourselves and new york life stepped forward and said you know what . Medical professionals and the support staff never really signed up daily to be in a death potential challenging situation, and we established a brave of heart fund to provide resources if a medical professional or support staff succumbs to covid to provide Financial Support to their family and importantly dedicated Behavioral Health resources well in advance of that, to be brought to bear. Were trying to come at this multidimensionally we recognize those were privileged to partner with need the support services we do David Cordani, thank you for joining us and bringing us this new survey good to be with you thanks for your time david faber, back over to you. Thank you, bertha and thank you for bringing us David Cordani as well. As we head to break, a chart of cesars thats not going to do it guys id love to see the big v. I want to show it because they sold 31 million shares at 56 thats not anyhow, this stock had hit a low in lets call it april of around 13, 08, i dont know crazy. Back to 56 and able to sell that stock, why, to help fund the potential business of william hill bookmaker, shares down a bit on that huge sale. lbeig bk. Too late to jump in the market, find out where we see opportunity on tradingnation. Cnbc. Com more squawk on the street coming up. Stepanakert. Welcome back to squawk on the street. Stocks turning slightly lower following mondays sharp rally the 9 of the 11 s p techors are in the red today and yesterdays outperformer is todays laggard, utility sector is one of the two in positive territory, up about 0. 5 , names leading that sector higher including Ppl Corporation and Aes Corporation and dominion energy, each up about a percent and a half or so squawk on the street is back t mutes 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. Hey frank, our workers comp insurance is expiring, should we just renew it . Yeah, sure. Hey there, Small Business owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Get a quote in 3 minutes at easyaspie. Com. Wow, that is easy. So, need another reminder . No, no no, im good. Uh, yes please. Oh. Ho ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. Jet blue is partnering with vault health to make covid testing easy for customers with pending travel plans Jason Feldman is joining me now. Im going to book my travel and then i can get the tests sent to me and youll take care of everything thats right, you go for the test and the test will be sent to you overnight youll get on a telehealth call. Well make sure the person spitting in the tube is the person intended. Get it back in a overnight envelope to a lab, and you can travel with some confidence that you are not sick what will it cost are customers going to take you up on it if it is a significant percentage of their sixty . It is 143, but the convenient of this is you get the results in the time you need to travel. Were spending a lot of that money on ups being able to overnight it really quickly. When testing comes back in ten days its not very valuable. So were making very, very certain that were getting results back in the time you need so you can get on the plane and go do you have fda emergency our lab partner, infinity buy logdg biologics has had emergency use since april. It is so much easier to use. We started back in the early swing. The minute that sports and students and parents try to go back to work everybody starting to get back to normal after some level of quarantining and saliva became very popular. We spent the last month and a half bringing college kids back and now were working on programs to keep them on Campus Safety we need a solution that is not frightening and that returns results quickly. We all want to spend time with our loved ones, stay safe, and this test makes it so much more appealing so you dont have to sit there with a nasal swab. Which is great. Why, then, it seems like it still needs to go to a lab, jason. You still have to mail it back and wait for a result. Are you working on instant saliva tests i know Columbia University has that test. It seems to me that it would be good to do it before getting on the flight, getting your results and then you could feel more confident. Were working on new technology that will be much more closely aligned with point of care. That is what we talk about, right before you go to the office or an airplane. There is more time, and they dont have the high throughput the test still has massive throughput and scale making sure it is accurate, highly accurate, and it makes sure youre not getting false negatives. We dont want to tell you youre negative if youre positive. Pcr tests do a really great job, and they doing a great job so those other tests are less accurate and until were certain we can bring a pcr test to market, were holding back a little bit longer. Always good to have you thank you for sharing the price of 143, and i guess youre still going with that virus background that always freaks me out, but youre right. I do need to change it up, but thank for having me this morning. Good to see you coming up in the next hour, we are watching a little bit of an air pocket here on covid headlines, the dow is do 1wn15 good morning, it is 8 00 a. M. In california, it is 11 00 a. M. On wall street. Good Tuesday Morning waiting fo