Transcripts For CNBC Closing Bell 20240712

Strong data on housing and jobs along with big beat for chicago pmi. Late breaking headlines regarding modernas vaccine. Off session highs but off the lows as we speak still wog up on the show. Coming up San Francisco fed president mary daly to talk about economic recovery, stimulus and jobs picture in america. Plus we will get a read on the consumer when we talk to the ceo of General Mills his first interview since reporting earnings last week. Cocacola entering Hard Seltzer Market with help from molson coors well talk to the ceo of molson coors exclusively about this partnership and more lets get to the big stories 59 minutes of trade. Mike santoli tracking Market Action as stocks look to close out september with a bang. Meg tirrell with headlines around moderna and leslie with the latest on palantirs review. The market, whats driving it . Sara, a lot of things blowing around in the market, quarter end, reaction to the debate, pretty good economic numbers but also in the context of a market that just really completed or near completed some kind of corrections trying to build a base, thats the way i would look at it went back to lows a couple days ago, solidified the idea this looks okay to consider to be the low end of trading range however, even the highs of the rally we didnt get back to september 15th, highs on the s p 500. Right now were kind of jumpy in a range. I think the economic number today said be careful, dont get too negative on the macro story in the shortterm especially as people have been bracing nor something worse on the covid case front this is where i see it, around a range to reset in september. Threequarters of the way through the year, i always like to take a look at 60 40 balance portfolio, where that tracks its appear amazingly normal year for this very traditional portfolio. Right here looking at close to 7 total return yeartodate, almost exactly on track for Historical Rate of return close to 9 . It gave you a little bit of a smoother ride, didnt have to ride down versus s p what about the election . Is that going to be bumpy next vix futures curve. Essentially the price for protecting against volatility and each month down the road october expires soon, november the november contract covers past the election. The way they interpret it is people pricing in volatility extending beyond election day maybe not a resolution my takes we are front loading amazing amount of anxiety and worry. Maybe down the road we have a big tension release and were already going to have braced ourselves for what comes later, guys. What was your take after the debates . Everyone wrote about it this morning and we were all watching futures last night i didnt see a huge move i remember back in 2016 you would see like 2 moves on the mexican peso after the debates didnt get anything like that but theres a lot being written about it whats the overall take . There certainly is. I dont think there is as much of a targeted, you know, economic factor that people are seizing on and saying thats going to be a complete binary option how it comes out. Big takeaway is the market saw nothing in a big way to reprice what expectations were before. Biden polling advantage but could be close maybe were not going to have a resolution we knew it before, last night and today. Therefore i dont think theres a lot of direct reaction happening in the markets today. Mike, thanks for that were up 350 on the dow. Moderna making comments about the time line for the vaccine. Meg tirrell has the details for us hey, meg. Hey moderna saying they dont anticipate being able to file for emergency use of their covid19 vaccine until mid to late november, after the president ial election. This is not necessarily a new time line in terms of moderna. They have been very consistent saying they expect data from their phase three as base Case Scenario sometime in november. Defending on the infection rate in the trial, could be november if theres more infection, december if theres less new information, fdas guidelines around applying for emergency use authorization or granting it saying they need two months of safety data on half the participants in the trial. So moderna just updating its in rollment numbers in its trial on friday pfizer also updating those numbers. For moderna, they have just crossed halfway mark at 13,000 participants two points from this date november 25th when they reach that fda goal. Pfizer has a goal of 44,000 participants they have already given 24,000 their second shot. That twomonth clock would presumably start for them as well pfizer, of course, has been out there staying they expect data potentially by the end of october. Guys. Meg, as you said perhaps not news in terms of expected time line despite what the president said last night. On top of that the president didnt single out everyone, so again, if were to treat the comments last night as being possibly accurate on that front, thats still plausible yeah, i thought it was really interesting how the president referred to his conversations with pharmaceutical companies, said conversations with pfizer, that was the one he said first, and then he mentioned moderna and johnson johnson. Pfizer and moderna are the ones in the lead. J j just started its major trial. They could have data if they go faster than expected by october, but the need is to wait two months to observe safety and that cant be changed based on the infection rate. Data from palantir making its long awaited public debut listing directly on the New York Stock Exchange finally leslie picker has a look at trading and how its gone so far. Took a while to open. Took a while to open and a while to take place. Weve been waiting this for years, at least behind the scenes publicly filed, the actual listing date was delayed a few times. Yes, it is officially trading. Its up about 2 from the 10 a share in which it opened today its a direct listing meaning there was no ipo price by which shares were allocated. Current investors were the ones selling shares rather than the company. Palantir founded 17 years ago to build software for Counterterrorism Operations it has 125,000 customers that pay for use the Software Platforms they belt. The ceo says even though the company has a reputation of being secretive and complicated, the financials are straightforward. Our company has often been viewed as complex and needing explanation moral and financial but turns out our financials are quite simple you look at dramatic growth with flat lining expenses stand that gives investors comfort. Its that Growth Investors were drawn to, expected to be about 35 this year, about a billion dollars in revenue but some investors were worried about the Reputational Risk related to privacy from palantirs data mining, guys. Absolutely. Leslie, thank you. Were going to take a little later about it with an early investor after the break, stocks soaring on hopes for more stimulus what will happen to the economy if a deal cannot be reached. Were going to discuss exclusively that and more with San Francisco fed president mary daly on the other side of this break. Youre watching closing bell on cnbc. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Welcome back about 49 minutes left of trade treasury secretary mnuchin and nancy pelosi resuming negotiations this afternoon. At delivering alpha secretary mnuchin reiterated that washington wants to give talks one more try listen. Were going to give it one more serious try to get this done i think were hopeful we can get something done i think theres a reasonable compromise here. Its something that the president very much wants to get done and make sure we help those parts of the economy that still need help. Meanwhile Senate Majority leader Mitch Mcconnell saying republicans and democrats are, quote, far apart on Coronavirus Relief, this as a number of Federal Reserve officials have been repeatedly calling for more fiscal support among them San Francisco fed president mary daly who joins us with an exclusive interview. Good to see you, president daly, thanks for being here. What happens to the economy if they dont reach a deal today. Secretary mnuchin said one last try, which is hopeful. If they are still far apart, what happens to the recovery we have seen. The recovery, the reason we have the stimulus provided by Federal Reserve and fiscal agents back in march was really to build a bridge, if you will, over the coronavirus until its far behind us and we can reengage fully in Economic Activity we are not out of those woods yet. We need a longer bridge, along with what the Federal Reserve has done we need the physical agents to offer support to parts of the economy that have yet to recover so the millions of Americans Still sidelined and wondering how they are going to pay their bills. So whether it happens next week or next month is important to those american households but also really important to shoring up the economy so that we can fully reengage and get the coronavirus behind us. What about jobs in particular weve seen good momentum and adp private sector jobs report was out today. It was strong, though claims remain elevated. Just in the last 24 hours disney announced its laying off 28,000 park workers, dow said about 6 of its global workforce, expecting 30,000 Airline Layoffs if they dont get aid, which could come in the next 24 hours. Whats going to happen with momentum on jobs where do you expect the Unemployment Rate to be at the end of the year . The Unemployment Rate is an overused number. Its important many people are out of the labor force all together we have many more sidelined being counted in an Unemployment Rate alone what i want to focus on is, yes, this momentum, this recovery of some of the job growth is a positive but we are in a very big hole, very big ditch, if you will just with these kind of growth rates we have in the labor market, it would take still two to three years to fully get back into the economy we had prior to covid. So i think we have to hold both things simultaneously. We have to be encouraged by the positive data coming out of the labor market and keeping in mind 40,000, 30,000 laid off permanently who were just on furlough and the countless americans who lost their jobs early and have yet to find new employment. Assuming there isnt a stimulus bill before the election and political gridlock continues throughout the rest of this year, how quickly do you think the current positive momentum on the jobs front turns in the opposite direction . Is there anything on the monetary side that could meaningfully upset that or are we at full support. I see the support that weve provided in september when we came out and codified, if you will, the strategy document that we put out in august and said, okay, this how its affecting policy and forward guidance. It seems clear households, businesses, Market Participants understand we are providing accommodative policy until were fully back to achieving full employment and price stability goals. I see that as a positive what ultimately determines the strength of the recovery is the covid crisis, the health if we can get if we can continue on the containment strategy and work towards a full money medication strategy, either a therapeutic or vaccine, then thats what will determine the confidence of the American People, confidence of businesses, and our ability to get passed this. Right now physical agents in the Federal Reserve and state trying to build this bridge while we get over the health care crisis. To that point, president daly, do you factor in a vaccine that will be effective and widely used in your Economic Forecast when you look ahead to next year and when you determine where you think rates will be . I always consult the health experts. Im not an epidemiologist or health expert, so what ive been doing since the beginning of the crisis and certainly continue to do is consult them when i consult them, they say look for middle of 2021 as the time that we could get a full blown Mitigation Strategy and containment, wearing masks, social distancing, behaving in these ways that we have allowed the economy to come back, and i do factor that in, those aspects in but ultimately its uncertain. So what i say, and i think this is the hard part for everyone to take in, including me, is that the health determines the economy. As the health goes, so goes the economy. Right new weve seen some positives as weve learned to deal with covid. When we get a Mitigation Strategy, a vaccine or therapeutic, then we can put this fully behind us and completely reengage in activity. Of course well have to look back and dig ourselves out of the hole it has caused. Do you also factor in in any way, president daly, higher taxes on the Corporate Tax rate for the year ahead potentially and whether now would be a good time with the economy struggling for that to go through when i think about fiscal side of the house right now, i think about providing support for the American People to get us over the coronavirus and then how are we going to invest in our future so that we can use everyone in our economy, all the people who have been sidelined historically and all the people sidelined today and add to productivity and add to our future growth rate basically thats what i think about this opportunity infrastructure, what did we learn from covid that informs us about what we need to invest in in terms of public goods so that we can grow and be delivering an economy to our children thats better than the one we have. To that point, i wanted to specifically ask you about your district in california, which has suffered from covid outbreaks and now wildfires and some exodus around some of the cities like San Francisco. Whats your prognosis for the state . Its obviously very important for the economy as a whole what happens to places like california thats a really important question, one we think about all the time, what happens to cities, what happens to distribution of people in our economy, but to be honest with you right now were fully focused on how do we manage the Health Crisis and now we have a fire crisis. So many people are decidisplaced from their homes so many communities devastated level, nothing left of them. What do we think about where we put those people, how do we rebuild. How do we make smart policy that allows us to create resilient communities and communities that are selfsustaining. Right now weve seen struggles on the health front and Fire Prevention and fire mitigation front, so we have some big challenges ahead not only in california but in many western states if you go across the country, it might not be fire but hurricanes and flooding we really are as a nation facing important challenges. Mary daly, thank you so much for joining us we appreciate your time. Thank you president of the San Francisco Federal Reserve. Wilfred. Just losing a little bit of steam, still higher on the session. The high was 570 points on the dow and now only close to 200 points despite a couple of positive sounding headlines from pelosi and mnuchin saying that they have made a lot of progress in the meeting we found errors seeking further clarification on, our conversations will continue. I guess there was no announcement to say an agreement is in place. Perhaps one of the factors taking a bit of steam out of the market the head of General Mills, whether the supply chainan nd another run on groceries if the second wave does arrive were back in a couple minutes phil lebeau with the latest. Administrator finished a press conference where reporters asked virtually from around the country what he thought of the flight well, he gave it a qualified thumbsup. He would not come out and say this plane is ready to go back in service but he likes what he saw. The flight test or test flight lasted about basically two hours. He checked out the plane before hand and then it finally took off. Here is dixon talking about what it felt like when he was in the cockpit putting it through maneuvers. I like what i saw on the flight this morning, but it is not we are not to the point yet where we have completed the process. Okay. So what happens next for 737 max. Remember, weve seen these pictures for some time, scores have been built and parked but not delivered. It could be ungrounded by the end of the year. Pilot training starting in the Fourth Quarter and could return to service with airlines by early next year. That would be welcome news for boeing they have 450 built, ready for delivery obviously they are going to vo to make some adjustments on the planes once the ungrounding happens. They are close, very close, guys, to seeing 737 max get to a point where they can resume deliveries that is expected to happen of about the end of the year. Phil, how quickly might other aviation authorities around the world follow faas lead. Everyone knows they will do a lot of Due Diligence this time around the u. S. Authorities but will the International Authorities trust them that quickly this time around. That was one of the questions for administrator dickson. We heard from the european counterpart to the faa that they expected to be recertified probably in november so i think its going to happen in relatively short order. The big question mark is will it be the same with china thats the one regulator, will they sign off on the max return as quickly as canada, u. S. , et cetera. Phil lebeau, thank you for the update. Time for a coronavirus daily track tracker. 23 u. S. States added cases with texas, california and florida adding the most. Kentucky adding more than 5,000 cases over the past week, a record high for that state parts of the u. S. Has experienced a spike in covid hospitalizations as well that were watching seventeen states saw average 10 week over week a socalled Game Changing test from becton dickin son approved in europe, an antigen test that returns results in 15 minutes. It will be made available by the end of october as a recent certainly in cases points to a certain wave on that continent still ahead on the show palantir popping in its first day as a Public Company well speak to an investor about the debut and where the newly minted stock goes from here. As we go to break quick check on bonds. Yields moving higher better sentiment, tone with stocks rallying. They are off the highs after no deal with mnuchin and pelosi still hanging onto 170point rally, ticks up to. 67 . Well be right bk. Ac [narrator] at Southern New Hampshire university, were committed to making college more affordable. Thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. 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. Stocks higher across the board. We got word secretary pelosi and Steve Mnuchin wrapped up their meeting oppose stimulus. No deal but talks continue ylan has more for us. Reporter thats right. There is no agreement on another Coronavirus Relief package though progress has been made and more work needs to be done he said that after he met with Majority Leader Mitch Mcconnell and spent more than an hour in the office of House Speaker Nancy Pelosi Pelosi echoed that sentiment in a statement. She said, secretary and i had extensive conversation we found areas where we are seeking further clarification. Our conversation will continue. However, she went on to say the house will move forward with democrats own 2. 2 trillion relief package that means that any hope for a breakthrough, an imminent breakthrough in the negotiations is on the back burner for now. Guys. Why are they going through with the vote in the house as a posturing to make a point to the republicans they are actually moving the way the democrats describe it, this is formalizing what they have offered to the white house during some of those private discussions. Politically this is certainly a chance for members to vote on another aid package and have something to go back and talk to constituents about ready of the election the house is scheduled on recess after friday though leadership says they can always call members back for another vote if there is some sort of break in the logjam the fact they have moved forward on this does signal that the hopes for a deal have dimmed significantly. Thanks so much for that if we can bring up intraday chart of the russell, sara, which highlights pretty clearly those triggers of selling toda. Thats not the intraday but russell down negative. 2 . Some in the russell changed most intraday banks are still higher but have been near the top of the pile, now somewhere in the middle. The likes of real estate, Energy Sectors and s p in the red quite a turnaround in the last hour or so of the session. Time for a cnbc update with sue herera hi, sue. Hi, wilf, hi, everybody here is whats happening at this hour President Trump saying he does not know who the proud boys are after mentioning the organization that was a hate group during the debate. He was asked to clarify his position on white supremacists. Law enforcement will do their work they are going to stand down, they have to stand down. Everybody. Whatever group youre talking about, let Law Enforcement do the work ive always denounced any form any form any form of any of that. Joe biden saying President Trump did what he expected him to do during the debate. Biden saying trumps performance should be a wakeup call for americans. And in britain Prime Minister Boris Johnson saying he does not want to go back to a national lockdown, but the only way to avoid it is for people to follow the Health Guidelines so outbreaks can be limited you are up to date thats the news update, guys wilf, ill send it back to you. Sue, thanks so much for that. Weve got 28 minutes left of the session. Here is where we stand, slipping, as we just mentioned, down into the red. Russell up half of 1 . Cocacola merging with molson coors for hard seltzer well discusits with the ceo of molson coors thats next. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Get e trade and get more than just trading good job, michael does. 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. The Hard Seltzer Market showing no signs of fizzling they launched the hard seltzer coming next year molson coors will be focused on marketing, sales and distribution of the gavin, ceo of molson coors joins us now great to have you here, gavin, thanks for joining us. Thanks for having me. Good to have you on you guys didnt announce the financial terms of this agreement. So how are you explaining to investors what will benefit will be for molson coors. Adding it to our portfolio is really going to make it one of the strongest out there, a real compliment to coors seltzer which we launched this year. Top line point of view, a proof point against our growth. Just going to ask about the competition. Have you two of your own hard seltzer brands would you not be prioritizing those brands when it comes to marketing . You guys are all going to compete here for market share, right . I think the key thing is they are going to be very differentiated topo chico now and what were launching next year all have clearly defined places in the category we dont see them competing at all. We see them as complimentary in a really strong portfolio. Whats your view on beer outlook now, the fact youre adding another hard seltzer to your portfolio the sign beer is on a path of longterm decline or plateau no, not at all. When we laid out our plans to get to growth at the end of last year, core beer remains importance taos. Of equal importance is growing above premium and beyond the beer aisles. The deals weve done over the last few weeks, joint venture with yuengling, with zing water, lance collins, four new brands with our l. A. Libations joint venture and now the deal with cocacola with topo chico, all are compliments to their plan to drive beyond the beer aisle. A lot of analysts are excited about the potential exposure you could have to the latino market, which is obviously growing very fast and one of the hottest demographic trends out there what are your plans for that what kind of insight do you hope to get youre right. Topo chico has been around 125 years. Its got a very strong following in the mineral water pedigree and were going to capitalize on that well start out in areas where the brand is particularly strong and wellknown, and thats the country and a deliberate National Expansion at the time. How is the growth in hard seltzer have anything to do with lockdown and drinking from home or was this something growing fast as part of the pie with drinking as a whole . It has been growing fast. Frankly the growth rate of seltzers has continued in the sort of triple digit range, which is why its so important for us to have a strong portfolio and topo chico is a real compliment there. Gavin, whats going on with the stock . Why such persistent longterm weakness here. I get that beer is sort of in the secular decline but youve been hedging and diversifying and i imagine more people are going out to restaurants and bars now that economies have opened, so what do you make of the stock price and the weakness there. Thats why we laid out the plan we did at the end of last year to really focus in on our iconic core brands, coors light. Youre right, we have delivered a lot more beer during the pandemic i think weve produced 14 million more cans during the pandemic, so cases of beer during the pandemic than we did last year. The plan requires us to drive beyond the beer isle i laid out some of the deals weve done recently and in the above Premium Category some have taught us there. Weve done so well we had to expand capacity in milwaukee brewer as were expanding capacity in our ft. Worth brewery for our seltzer portfolio. Finally, can you give us a read of what youre seeing out there in terms of reopenings, bars and restaurants, limited capacity, potential shutdowns again with the second wave what do you see . Its different depending which states youre in obviously almost a complete shutdown in the early part of the Second Quarter some bounceback at the back end of the Second Quarter. It has accelerated over the last few months what weve found is its kind of plateaued at a particular level, one state goes into slightly more stringent lock down, so does another state open up so its not by any means back to where it was before the pandemic set in, but off premises helping a lot, doesnt totally offset on premises losses we experienced. Off premises, people drinking at home. Well talk about it with General Mills. Gavin, mol sewn coors. Thank you. We have a news alert on palantir josh. Reporter palantir making its public debut one interesting story palantir alumni telling myself and my colleagues that they had some initial trouble selling shares on a platform provided by Morgan Stanley. Morgan stanley share works system they were saying they were unable to get into the system and complete transactions. One former employee did text me and say at this point the problem seems to have resolved itself not a great look for Morgan Stanley. Palantir taking that direct listing route. The benefit if youre an existing investor, you would be able to sell some of your shares rather than wait for that typical 180 day lockup to expire Morgan Stanley, well reach out to them. Back to you. Thank you josh lipton. Stocks up 31 or so. After the break, palantir, as josh just mentioned, making its debut. Well cover that again plus a prediction on what a biden win could mean for stocks and final minutes of trade as wild september comes to an end taking you inside the market zone next. As a reminder you can also watch or listen to us live on the go on the cnbc app. Closing bell will be bk. Ac snpz s p up. 6 of 1 you can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. 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. Just under 15 minutes left of the trading day were on commercialfree coverage heading into the close. Mike santoli break down crucial moments and Wealth Management josh brown with us as well good afternoon to you, josh. Lets kick things off with the Broader Market. Good afternoon, wilf. Stocks higher on the last day of september, last day of q3 dow, s p and nasdaq on track to post their first monthly decline since march. All three major averages higher for the quarter, though. Mike santoli today first of all, half our gains, dow up 600, close to 300 seems overall thats around headlines on possible stimulus. That seems to be the trigger at least in the afternoon. There were kind of a confluence of economic bullish figures, factors that came out this morning, obviously, pending home sales very, very strong, housing stocks up big. Did have a good chicago pmi, manufacturing in line. The idea you might get a quick move on stimulus probably was just adding to all that. The one thing i will note treasury yields kept their gains. Bond market has been asleep for weeks now. You have seen this push higher in treasury yields perhaps in response to that, quarter end, Asset Allocation shuffling, who knows who it is. They have stayed higher and that enables financials to hold the bid through the afternoon. Josh, in a new office im told, with a nice background, are you pinning your hopes on more stimulus to come before the election i think it would be very nice and a much more humanitarian story than a stock market story. The vast majority of people who have lost their jobs while very important to the country and to the economy, the stock market has almost completely written off their participation in the names that matter most, the biggest weighted companies its almost as if they are not unemployed the saddest aspects of the recovery were having. Only fiscal action can help these people the fed cannot do it theres nothing to play around with Interest Rates or stimulus or buying Corporate Bonds. None of that is getting to people the government absolutely must a act. I dont think the stock market requires it. This is one of those sad difficu dichotomies right now. Good news, homes on fire this is a trend ive been pounding the table on for six months lennar, d. R. Horton, what do you want look what these things are doing right now. That extends to home depots. Want to mention hard to be bearish with ipo, not only seeing record supply on the market but making new highs in pric price. All of these deals you talk about all day every day not swamping demand. Monster bounce in semis, nvidia, intel wants to close the gap google is the laggard but the rest all had a nice recovery ups and fedex not giving up any gains. Those charts are immaculate. When youve got all of those things looking the way they do, its hard to have a frown on your face right now. Right transport, semis, all good, even home builders, leading indicator to the economy. Thats right. Fiscal stimulus, some people want it, make people need it start with delivering alpha conference this morning, he gave his take on how the market might react to a democratic sweep on election day listen. Maybe longterm, two or three years out a democratic sweep would be okay. Shortterm with changing Capital Gains taxes, i think youd see a significant correction in highflying stocks. Ish jo, is that a potential head winds to some of the news youre seeing out there for the market that highflying stocks would do what on democratic sweep of the election democratic sweep, senate and presidency, would hurt the markets in the shortterm, highflying. Anything can hurt shortterm. We had an episode overnight repricing in the yuan and s p 500 fell 12 three days later its like it never happen anything, including an election, can do shortterm damage to the market nobody has a gun to your head telling you you have to react to it one of the biggest money losers in history is, a, trying to determine an election in advance. And b, trying to determine how the crowd will react nobody does this find a fund manager who profi y profitably i dont play that game i spend my time talking clients out of not playing that game hasnt worked. Something you said before about semis looking great. Are you not concerned by micron down 6 or 7 . I think micron has some idiosyncrasies to make it insulated, isolated situation. I dont know i want to trade semiconductors based on anything going on with micron they are a highly specific corner of the semispace. You pay attention. Semicapital, charts up to the right. They are bought. Its continuing. Some are overbought and look at things like rsi. Okay take a chill pill. We dont have to have stocks that go up 15 every week. But the vast majority of the semis look great by the way, i think they are way more important an indicator of the economic recovery than transports, for example, much, much more important these days they might be the new transports. Gm and nikola likely to finalize their deal today although the two Companies Continue to hold talks phil lebeau has the latest for us on that hi, phil. The chairman of nikola and ceo out doing reporter interviews today trying to calm down investors who are afraid its going to drop got a nice bounce, up 14 . The ceo when we talked to him, he said he believes this is a company with immense value for shareholde shareholders. Our Business Plan is extremely exciting thats one of the reasons weve laid out the roadmap, partners our Institutional Investors are familiar with. As we achieve mile stoengstones stock prices. Excited about nikola, scheduled to take 11 stake in nikola, part of the agreement they reached but havent finalized the deal they do continue to talk the badger electric pickup truck. We heard so much about it from Trevor Milton when he was chairman they put out bake business strategy, though mention of the pickup truck, all focused on the class 7 and 8 semitrucks that will be Battery Powered and Hydrogen Fuel cell powered. Phil, even if gm wants to proceed with the deal and not putting fresh capital into the company, have they not lost enough face by the events of the last month they need some level of renegotiation to kind of continue to save face a bit with their own investors . Sure. Wilf, you could make the argument you could make the argument this company, nikola, worth far less now than it was when the deal was struck part of the attractiveness, if you will, of nikola for General Motors was the stake leads to the question when they ultimately strike the deal does gm have a stake in nikola. One of the questions people are waiting for an answer to. Big question. Thanks i was going to mention on deliver alf ark, je alpha hes a Board Meeting so he cant address allegations but broadly asked whether it influences his Impact Investing and he pinned the thinking right now on shortte shorttermism by what he called the media and short sellers when it comes to nikola a ton of excitement around the name put it in the category as harvest back yesterday going public, going to grow tomatoes in kentucky, around his esg think thinking. If youre blaming it on thunderstorm termism you cant on evs because its moved tesla in the opposite direction in the shortterm i think fair to say a lot of stuff in the market at the moment particularly if evs is being exaggerated. Clearly two stocks moving opposite directions not like the broad point overall. Hey, guys. Go for it, josh. Here is a fun thought exercise ask yourself this question nikola right now after everything weve witnessed has a market capitalization of 8 billion, with a b, dollars no revenue what would this stock be trading for if there was no such thing as a Gm Partnership at all lets say it never happened. Is there any chance this thing would be 2 billion . If i were gm, i would take the whole thing. Taking something doesnt exist for. Yeah, let it say, you know what, were not doing a deal if youre really that enamored with a truck you have to push, go buy it for nothing. I dont know if mary barajas like barra has the venom. I dont know if she would do that i can imagine a scenario where someone was thinking that way. Its not a nice thing to do. What are you enforcing in . The whole henning based on gm. There was a story there that investors were happy to buy into well before gm put in the stake, similar to the tesla. Have some things about that story changed . Have some things about that story changed . Well, there have been accusations for sure yes. Its a different picture i get your point palantir, i want to hear your thoughts on that too, josh surged 30 the Company Coming under some criticism for its unusual share structure with the addition of f shares which gives founders varying voting rights. Ceo karp addressed the issue with Andrew Ross Sorkin when they spoke listen. The primary reason we asked investors to buy into it, we need to be able to go especially to our intel and defense clients and say we will not just blow with the wind. Those shares for a company like ours give us a unique ability for longterm commitment to the most important clients in the world with commercial and government thats why i believe they are super important. I also again would encourage people if thats not something youre comfortable with there are many to buy. You should buy them nothing these shares reflect our views. Pretty interesting. Two minutes to go in the trading day. What are you seeing in internals. Softened up off the highs internally stock value umm 80 to the upside earlier this morning. It is actually a little more, 2 1 2 to 1 on the positive side. Certainly not as strong, well mixed market on the quarter and today. Take a look at megacap growth etf. This, of course, is the leader of the leadership group. This is week to date you can see still an advantage here in Prime Minister answerfoe still window dressing. Quarterly basis still big. Volatility index come in a good deal, back to 25 earlier, still trading above 25 right now once again, this is all about kind of remaining volatility expectations because of the election and we have had a jumpy market for a few months. About a minute left higher than more than 1 on all three indexes as we approach a nice little improvement over the last 15 minutes having seen a bit of slippage over the prior hour russell 2000 remains the laggard, some cyclicals got hurt back into positive territory two sectors on s p, industrials and energy, top of the pile is health care up 1. 8 followed by Consumer Staples, financials, technology, all of those sectors up more than 1 . Gold slipping down 0. 6 , oil up 1. 8 the dollar is flat, having, of course, softened over the prior couple of sessions which helped the sentiment of the equity market at the bell up 0. 9, dow up 1. 3, nasdaq up 0. 8. Closing a little below 1 gain for s p and nasdaq for the quarter as a whole, s p 500 up 8. 4 for the month. Its down 4 for the session up 0. 8 that wraps up the first down month for stocks since march welcome back to closing bell. If youre joining us im sara eisen with wilfred frost and mike santoli, cnbc commentator take a look on wall street we did end september on high note but lower for the month overall. Dow up, high of the day 573 points we lost a it about of steam around 2 30 when we get negative headlines around moderna, its time line for the vaccine, not happening before the election, although maybe more having to do with the congressional back and forth on stimulus. Upshot no deal pelosi and mnuchin will continue talking. Well see what happens. 8 move higher in the s p 500 on the Health Care Health care led the charge showing signs of life for that group. Technology and Consumer Staples did well, industrials and Energy Closed the day down. Here we are midweek, and we are set to break a fourweek losing streak well see what happens tomorrow and friday the nasdaq closed up philly quarters of 1 nvidia, paypal showing strength. Small caps lagged, closed up. 2 on the day coming up find out how Food Companies are preparing for potential second coronavirus wave well talk exclusively with the ceo of General Mills first lets talk about this mark market joining us josh brown. Peter from alpha omega advisers. First to you, we finished off bumpy quarter for stocks what does it mean . What it means the market had a onemonth payback for very exuberant phase over the summer. The question this week, was that enough to take a lot of extremes off the boil and reset the market a bit youre making a bid, traders are this week, maybe it was enough for now, incremental stress, macro factors remain in place. That is the inference i would take from this market. Overnight s p 500 futures went back down to the levels that it was at the last three days thats small technical and tactical stuff youre in a chop zone right now. I dont think the market told you anything today except were in this range trying to sort out if we have another kind of boost coming along thats going to refresh the story on the bullish side most things i look at say things are fine but i dont know exactly what the next catalyst would be for another high. Down 4 for the month of september, does that improve the risk for equities in your eyes i dont think its sufficient to do so the market we need to refrain what the market means anymore. When youre talking about broad market, its a handful of Technology Companies equity including small caps, saw underperformance of the russell today, i think what the Broader Markets need to see is a soikt improvement in earnings and cash flo flows. I dont see that in the cards. Were not going to get a boost from lower Interest Rates because the federal has no policy space either about cash flows. It may improve with fiscal stimulus, which i was writing i dont think well get before the election especially for smaller firms. Its true divergence between nasdaq, tech heavy nasdaq and small caps particularly stark if you look at the quarter and statistics, nasdaq up 11 1 4 for the quarter, russell 2000 up 4. 6 for the quarter, continuing the yeartodate trends. How do you decide which parts of the market, which kinds of stocks you want to be in Going Forward. Do you buy the caps on a small trade for instance. Yes, i think most financial advisers, Wealth Managers have a component of small cap exposure. I think that earlier point peter made is right. The stock market, its become divorced from the reality of the median stocks. What the return, risks has been, volatility profile, really looks nothing like the 100 leading companies in america, many of which are in three sectors, consumer discretionary, technology, and weve got giant companies in Health Care Like when you think about small cap indexes, dominated by Smaller Companies nobody has ever heard of. Bank exposure. Energy companies these companies are not enjoying the same level of recovery, nonfundamentally and certainly not in the stock price that continued for a long time im going to tell you who i think this is going to be very unhappy news for, trillions into smart beta, a lot of the premise is Small Cap Value not only being ridiculously cheap compared to the rest of the markets but the idea small caps recover first out of the recession and back into recovery small caps historically have led the way. It doesnt appear thats about to happen this time. It would be the first time in a long time. If you continue to get this economic recovery and dont get that historical leadership from the russell names, it calls into question a lot of these investment theories that have now turned into multitrillion dollar Asset Management strategi strategies a lot of these papers written in the 80s, 90s, that stuff is not happening on schedule. Maybe a big catchup trade, maybe there isnt. A lot of people will be disappointed if this doesnt turb. Lets get to bob pisani for a summary of the winners and losers today. The important thing is what happened on the quarter. A good close to the moment but rocky getting there, 4 down for the month and 8 up for the quarter. Choose what you want to look at. Show you what were doing for the month. Industrials outperforming materials also as well thats good news tech had a mid month correction but ended strong banks and energy had no energy at all, still difficult with rate environment but banks up, energy going nowhere for months on end let me show you the big mega caps for the month ill stay on the month for the moment here where you see facebook, apple, amazon, microsoft, all of this much worse a week and a half ago. Apple was down 10 we went from 138 on apple to 103. 20 move on the biggest stock out there. Give you an idea how difficult figuring out the proper valuation on the stocks here as for the quarter, let me concentrate on the quarter you see how much better. Front loaded july and august fabulous month, middle of september we started falling apart and valuations started moving to the downside as for overall as you see for that particular quarter. As for the s p, let me show you whats going on today. The big thing you see that drop there. That is largely stimulus uncertainty when we got word pelosi and mnuchin didnt have an agreement october will be tough. Election uncertainty, stimulus uncertainty, good news on the economic front increasing number of layoffs were hearing about and hopes for a vaccine. This is a lot of crosscurrents. October is difficult but this is an unusually difficult october were going to be dealing with guys, back to you. Thanks for that when we look at quarter to date performances, doesnt feel like much rotation happening even though weve had a month and certain weeks of tech pulling back a lot. There was a correction. Since i was on two weeks ago, we have seen the markets come back quite a bit. One of the thing we have seen equities rallied, a ton of rotation, credit equities widen for the first time in a long time, high yields, 50 basis points thats despite the implicit support treasury and fed giving to Corporate Bond market i think in part that harkens back to what i was speaking of earlier. Small companies are not getting the stimulus the fed survey last night focused on main Street Lending program and its inability to reach into public and private and provide them with liquidity they need. One of the reasons why they responded they could not was because even prepandemic the companies werent creditworthy so this is where the levels of debt that preceded the pandemic are starting to catch up with companies. Again, especially small caps, leading to bifurcation, haves, have not scenario were dealing with in the markets right now. So as we look ahead to october, mike, bob set up a tough month. When i think about headwind, huge election uncertainty over who is going to win and whether theres going to be a winner and how long thats going to take, theres this continued sort of digestion with the feds new inflation framework. Theres uncertainty whether were going to get more stimulus and increasingly doesnt appear that way, although who knows and potential second wave of the virus, how is the market going to deal with that. First of all, i think everybody is consumed with those risks. Im not saying you can inoculate against those things in advance. You can say in a week or two Start Talking about earnings season one of the takeaways of this whole period is that companys profitability in aggregate was probably more resilient than we thought it was going to be six months ago and estimates going up for current quarter, still big year on year declines but that probably is the distraction you need away from the macro stuff you put out there. Look, election stuff, its ridiculous to try to handicap it in advance in terms of which way its going to break and what the policy implications are. Typically there is a tension release and doesnt preclude means a Fourth Quarter rally is more likely than not when you do get clear of the election or in advance of it because the market tends to do okay right before it. Thank you all josh brown, peter, good to see you both appreciate the time. Thank you. Up next, the ceo of General Mills on the strength of the consumer and how a potential second virus wave could impact iltocompanys supply chain and abity keep food on grocery shelves. Were back in 90 seconds on closing bell. Shares of General Mills rallying along with Broader Market up 6 since reporting earnings just last week. The company beating analyst expectations as homebased consumers lifted sales but that growth has slowed since the spring joining us to talk about it, General Mills ceo jeff harmening. Welcome to the show. Thanks for joining us. Thank you good to talk to you, sara. Jeff, were starting to see cases tick up and in some places hospitalizations as well how are you gearing up for a potential second coronavirus wave this fall for us, im not sure the first wave ever ended. Our sales up 10 in the First Quarter, which we feel good about. People are eating at home quite a bit. Weve been gaining market share. For us the key is to make sure we keep our supply chain going strong we have done that. All of our plants are up and running throughout the world offered internal capacity on platforms like cereal, procured for capacity on areas like soup. We are ready and running very well right now. You did have a strong quarter. What was interesting on that day you reported, kind of a muted share price reaction there still is this persistent question from investors around these food stocks, like yours, who continued to do well about how long it can last eventually when economies open up, eventually when we hopefully have a vaccine, whether any strength continue and whether comps are way too difficult. How do you answer that its very clear in the short run, over the next quarters, demand for food at home is going to remain elevated as restaurants are closed and kids are learning from home or hybrid model and people arent going back to their offices. I think that some may be underestimating their shortterm demand and what it can mean. On our First Quarter Earnings Call we indicated north america retail which serves consumers in the u. S. Is going to be up high single digits. Continued strong growth. After that, weve done things to maintain demand. Household penetrations, households we reached, up nine of ten repeat rates coming back to those foods. We have surveyed the consumers who have come into brands like yoplait, progressive and cereal. Weve been satisfied perhaps people are underestimating the level of demand that can continue even after the demand starts to ease and people eat out more. What with customers at Grocery Stores. Most Grocery Stores our inventory levels are up from where they were a few months ago a few days and we expect a few more days this fall. I can tell you our inventory levels and a number of categories replenished throughout the summer. Even though demand did slow to 10 , we have maintained our Production Capacity and been running at full capacity on all our lines since the pandemic hit in march so inventory levels are pretty decent right now and our plants are running very well. Weve been talking all day on cnbc, jeff, about the ongoing tim lsu negotiations, whats happening there, whats not happening there at the moment. No question it padded consumers pocketbooks in the past few months have you seen an impact as the stimulus fades, the brands people are buying and the way they are shopping. Do you expect to see more of that as that money wears off we havent seen an exact on our business yet im sure some retail brands and businesses have. But in the food business for us, the athome consumption and the fact consumers are not going to the offices, going to school or going to restaurants, that is a bigger driver of our business for us, frankly, than the stimulus has our brands continue to do well, particularly our Consumer Brands even the ones that serve furry members of the family. Our dog food business is performing quite well. Just to expand on that, jeff, a little bit presumably, therefore, you do acknowledge despite sent minutes in Earnings Release that when we reopen demand will slip back a bit, if its been a factor that people are staying home and not going to the office . I think its inevitable at some point in time people will eat out at restaurants more. I think thats the case. The demand high relative to what it was before covid for food at home i think the answer is yes. People rediscovered kitchen is the heart of the home. They have enjoyed doing somic baaing i think its pretty clear to me, as it is others, were not going back to the office the same way we were before there are a lot of meals served out where you can be serving breakfast or lunch at home i wouldnt anticipate in the long room it will be elevated as it is now. Feels to me it should be elevated beyond what we saw before food at home consumption tends to do very well, very well in a regularsary environment, which feels like kind of the environment were in. Breakfast in particular and cereal, you mentioned sales up 10 . This was a category in longterm decline. It was a depressing story to report on those cereal trends for so long. Has it been revitalized . How do you make sure Something Like that is permanent im excited about the cinnamon cheerios for one how many other people are going to be . Are they going to ditch it and get breakfast san witches when they go back to work. People rediscovered food they havent had for a long time. Repeats are high on satisfied, cereals at the top of the list people discovered the joy of having cereal, cheerios, cinnamon variety or cinnamon toast crunch weve competed effectively were growing quite a bit. The way we hang onto those consumers is we improve our marketing budget, which we have. We market very effectively we talk about cholesterol reduction on cheerios and how great lucky charms are, magically delicious. We do a lot of good innovation, top three in the category, the top of which is cinnamon cheerios. No, sir surprised im a fan. Jeff, thank you. Jeff harmening, appreciate it. Thank you. Up next mike santoli will have a look whether should be concerned about job postings and Consumer Spending slowing down a check on how stocks finished the day, higher. We did slip a little bit into the close and a little bit, of course, from the highs of the session but ilstl up 1. 2 on the dow. Welcome back getting confirmation that the Federal Reserve is going to extend through q4 the current restrictions they have on big banks capital distributions. This, of course, relates to no buybacks at the moment and no increases in the dividend. This was largely expected, sara, because the second round of the stress test, special second stress test for this calendar year hasnt taken place yet. So when we got the terms and wit the date of that second round stress test we knew it wouldnt have happened in q4, therefore no expectation they be allowed to start buying back stock for the quarter extended for q4 expected and swing factor for the banks will be whether they can start buying early next year of course, tied to that whether or not they can start buying at a time when share prices are low. Quite a set of binary possible outlines if those were extended hours, i dont know if i can check, extended hours, we are seeing those are extended hours were seeing slippage half of 1 even if this news had been expected that they werent likely to be able to buy back stork yet, a bit of share price after hours, sara. Will the determining factor be how they do in the next stress test, early next year thats one hurdle they will need to get over i think this is pretty political as well, when were still in the state that were in. Even if one of the particular banks managed to make a case that they are in unbelievable strong position, which i think they would have a hard time doing anyway, i dont think it would be very palatable for the fed to say, of course, go for it, stop buying back tons and tons of stock while the economy is weak. A few hurdles to get over. One of them is the banks doing well in the next round of stress test which happened happened yet. A little surprise to me were seeing share prices slip half to 1 on this news that was expected. Just another excuse to sell the banks. Right. They do cite Economic Uncertainty in the fed statement. Lets go back to mike santoli taking a look at Economic Uncertainty and aforementioned fed. Were relying on private sector realtime looks at the economy. One of those, indeed, jobs listings pacing this year relative to the last couple of years, green line. This is 18 below year ago pacing a lot of ground to make up, moving in the right direction. I think so thats a comfort. The chase consumer card spending trends as well it looks similar in terms of very deep drop steady increase. What we are going to notice is this flattening out in september. Obviously thats something weve been concerned about that weve seen from slowing as stimulus efforts waned for the consumer we did see it here as we had those surges in the sunbelt and flattened out in juppe or july nothing says its a trend reversal but shows plenty of ground just to get back to zero if this was a normal year wed be trending above where we were before covid, sara. Mike, thank you stocks rallying on hopes for a new stimulus deal. Up next Valerie Jarrett former Senior Adviser to president obama, what that will mean for both the economy and president ial election. Hmms and ahhs heard incall. Hmms and ahhs heard incall. Good job, michael does. 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. Treasury secretary Steve Mnuchin and nancy pelosi failing to reach as covid19 relief. Earlier today expressing optimism about the white house and democrats being able to reach bipartisan support on many of the proposed policies the issue is really about the size and scope of how much we want to do there are certain policies we do have differences but a lot of commonality. Things like ppp has enormous bipartisan support money for schools has enormous bipartisan support we have additional direct payments, impact payments with support on both sides. We have back to work credits we have retention credits. I think theres many areas. Joining us now for more, Valerie Jarrett, former Senior Adviser to president obama a very good afternoon to you thanks so much for joining us again. Thank you. Do you think there will ab stimulus deal before the election i surely hope so. With the house passed a package back may 15th, i know they have been waiting for the senate to act and for the white house to be on board. Much of what the secretary outlined is very important also think need support for state, local, tribal governments. That would add hugely to our economy. Look, we wanted funds way back then to help support postal service, local elections, making sure in the midst of covid19 pandemic people are able to vote in a safe and a fair way so there has to be a meeting of the minds, people around the country waiting for their government to do right by then lets hope theres a deal on the horizon. Hope is one thing, putting aside the house passed something, treasury secretary scheduled positive things or negative things, what chance do you put on it before the election given how polarized and contentious politics is right now as we saw last night. I hope well call on elected officials and those working in positions like Steve Mnuchin, the treasury, to just work 24 hours a day to get this done this is what the American People have the right to expect, right . So i want them to do their jobs. I hope that the Business Community and citizens all across our country put pressure on them to do the right thing. How do you convince, valerie, that a biden win and a democrat senate, blue wesweep, would be good thing for the economy and markets. The conventional wisdom would mean higher taxes, Corporate Taxes, Capital Gains, wealth taxes and other sort of not business friendly kind of moves. I think they are actually business friendly. If we put more money into the hands of every day americans, they will for out and spend that money, invest in our infrastructure, clean energy thats going to make us more competitive. If you look at investments president obama having inherited worst economic crisis since the great depression, cut the Unemployment Rate in half, stock market moved up dramatically and peoples lives and livelihood were far better off. If you listen to Vice President biden last night, he outlined a very clear plan for how he would tackle with evidence, scientificbased strategies his covid19 and rebuild our economy better and more fair and more just for everyone. That will be good for the economy and good for the American People. I think we can do both. Very specifically, though, valerie, it was clear he definitely wants to increase Corporate Tax rate back to 28 , even if the cut in the first place was not the right move, even if longterm perhaps increasing it could be the right move, is now the right time to be increasing taxes on companies whilst so many of them are struggling so much he also supports a package thats going to help many of our businesses get on track, particularly our Small Businesses, responsible for the employment of so many americans. I think its clear hes looking at this strategically as a way of shouldering an additional burden on those who cant afford it and then making room for so many people struggling right now, again, particularly Small Businesses waiting for the resources, who want their businesses to come back. What Vice President biden realizes is our economy is not fog to grow until we get our arms around this pandemic. Lets face it, we got caught terribly flat footed given we now know the president back in february how dangerous this was going to be, if we had taken reasonable steps back then, we would certainly be far better off today. Who are the economic advisers that Vice President biden is listening to most carefully when it comes to issues like that, Corporate Tax rate and fixing the economy, getting us out of the slump. He has a treasure trove of advisers, folks he worked with in the senate as well as those he met during his time in the white house. Atmosphere robust group of folks. I think if you look at policies, they are intended to build our economy. His desire is to grow jobs his desire is to increase wages for working families and make sure they have the benefits they need including health care, which is in jeopardy right now before the Supreme Court so the American People can thrive when they thrive, business will thrive, too. Do you fear, valerie, ahead of the election relatively low turnout . Would that hurt your candidate more than the president . Im very worried about turnout, not from the partisan perspective, im worried about it because it shows a lack of engagement by our citizens and our democracy. 100 million eligible americans didnt vote in the last president ial election. I think thats a travesty. There are efforts going on around the country to suppress the vote but i dont want people to disin franchise themselves. In the midst of this pandemic, of course, it is far more challenging to vote. Im worried about why have we not been investing what we should have been doing since this pandemic began to make it easier for people to vote safely why arent we adding resources to the post office so they can accommodate an influx of voting by mail, why arent we extending early vote to people arent forced to show up on election day, long lines, choosing between their health and right to vote. I think a good turnout would be good for the country and also for joe biden. When the vast majority of people do vote, i think Vice President joe biden will win handsomely. Valerie jarrett, thanks so much good to see you. Youre welcome. Good to see you both. Palantir closing before the Public Market debut. The potential Growth Prospects for this highly anticipated stock. Check out shares of data dog surging with microsofts Cloud Platform the stock up 170 this year. Its up 12 earlier in todays session. Well be right back. Welcome back time for cnbc news update with sue herera hi, sue. Hello here is whats happening this hour the commission on president ial debates focusing on changes to ensure a more orderly discussion, end quote. Nbc news reports final decisions have not been made but the decision is considering cutting off a candidates microphone if he breaks the rules. Former United Auto Workers Dennis Williams has been charged. A judge prufld millions in payouts to insurers for victims of the 2017 shootings on the las vegas strip. Ukrainian capital of kyiv, working to find what caused the death of a an american employee. She was unconscious by Railway Tracks in a park and later died in a hospital. You are up to date thats the news update wilf, ill send it back to you. Sue, thanks so much we have breaking news on job cuts at several companies. Details for us. Wilf, thats right. A lot of job cuts at many Different Companies in different sectors, hearing about 3800 jobs at all stastate the insurance company, sales, service and support. Marathon petroleum eliminating 2,000 jobs, which it says is 12 of its workforce that does not include speedway Retail Division which has already agreed to sell to 7eleven Goldman Sachs eliminating 400 back office roles according to a report by bloomberg. Now that weve confirmed at cnbc the company saying in the statement at the outbreak of the pandemic goldman announced it would suspend job reductions the firm made a decision to move forward with modest layoffs. Remember, disney with giant layoff number. This is many more companies. Thanks so much for that sara, quickly on the goldman one, if you remember back at the start of the pandemic, a number of banks came out and said no layoffs for 2020 Morgan Stanley more explicit than goldman on that, though make people did interpret goldmans statement, no layoffs for the pandemic meaning the whole calendar year though they never said that explicitly either way a little bit surprised to see them come out with this job cut. It is small, less than 400 employees. Thats less than 1 of the total workforce, typically annual turnovers. Its putting back in to gear a smaller than normal churn and turnover a little bit of context on goldman, Morgan Stanley more explicit investment banks, no layoffs come 2020. It was a hard statement to make for a ceo back then can you imagine back in march thinking i would still be here in my bedroom doing my show the beginning of october just really hard to figure out over the next few weeks and months disney layoffs started at furloughs have no visibility on when they were going to be able to open especially california theme park the longer it goes on, the more you have to rip up your plans, which is why stimulus negotiations are so critical right now because we are seeing more layoffs in more ways than we could see with the airlines again. Part of that strat stimulus is added Unemployment Benefits for more than 800,000 people that every week weve been tracking are still filing for unemployment we have an 8 high unemployment. Well get a new read in september on friday, the last before the election. Its still going to remain elevated millions of americans out of work as were reporting, thousands more laid off at Big Companies anyway, watching the stimulus negotiations up next palantir closing below the price closing below the price of its first trade well break down the stocks public debut with an investor straight ahead dont miss the premier of the news with shepard smith. Its tonight 7 00 p. M. Right here on cnbc well be right bac k. 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. Welcome back Data Software from palantir debuting on the New York Stock Exchange at 10 a share in first listing. Below trade price at 9. 50 joining us Research Head at Manhattan Venture Partners which owns shares of palantir. Thanks so much for joining us, santosh. Good to see you as always. Thanks for having me back. There were some reports earlier that some insiders didnt manage to trade stocks today. I just wondered if you guys had tried to sell at all and managed to, if you had tried to. I havent heard that. I think it was sorted out after a while. I dont think that was a big issue. Maybe initially. From what i hear, there was some confusion, backup overall its not a big issue at this point. Overall how would you grade the day . It close up 31 despite some of the controversy over voting shares and government work and Everything Else . Yeah. I think the opening was great, the debut was very good, in line with what we expected. Just to put it in ontext, spotify, which was another Portfolio Company was down 10 at the close, opening price to close, was down 10 . Slack, another company flat at the close from the opening price and this one down 5 from the opening price. So i think in terms of reference price, still very hard this was very good, good opening. The company set up well. We didnt want to run up too much and tried back into it. This is a great start. The company has momentum like i said last night, the product has come along well. The sales pipeline is pretty good i think overall all set, the company just has to execute. If they do execute based on your expectations, when do you see this company being profitable do you think its an issue given not yet its 17 years old not young like make of the other recent tech ipos. Yeah. Like the ceo mentioned this afternoon, they have been investing. They have been investing there is a path to profitability maybe in a year or two based on our numbers. So they are almost there so thats not an issue the Gross Margins are pretty high, software margins they are getting there the contribution margins are pretty big so all the fundamentals, the basic metrics are pointing to the right direction, and they are investing. They didnt have a sales force, dedicated sales force in the past just last year they started building up their sales force and that could be one of the reasons why their customer count is small on a relative basis but still concentrated and big in terms of the quality of the customer base. But in terms of size, its still not there. I think dedicated sales force Going Forward will expand that so lets see that. So now that its listed given you were an early investor, did you sell any at all on day one, plans to sell any of your stake in the shortterm . No. We are going to hold that. Weve been longterm holders, through the thick and thin so to me this company has not been a cake walk, its been up, down, up, down in the last three years it really came together and is executing very well. Were going to hold onto this. Of course the Portfolio Managers are going to decide the end product end decision. Considering the growth decide t considering the growth ahead and the opportunity ahead, i dont think it makes sense to sell it. Santos, youre getting a phone call well let you go anyway. Thank you for joining us. Thanks for that sorry about that. Up next, tomorrow set to be a piftvotal day for the Airlines Thousands of jobs hanging in the balance. 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. Thousands of Airline Workers are facing furlough as of tomorrow phil lebeau has the details. A rough day for the Airline Stocks there was optimism earlier in the day, but then it faded they kind of tumbled out of bed at the end of the day as we get close to the deadline for when the airlines will run out of payroll support. What happens come midnight well, tomorrow at least 31,000 airline employees are facing a possible furlough. It doesnt mean everybody gets furloughed tomorrow. It may happen over the course of a couple of days most of those furloughs at american and united. Just to show you how strange this has been in terms of the way Different Airlines have handled this southwest and american southwest has managed to avoid furloughs. American will have about 19,000 furloughed yet these stocks pretty much trading in tandem over the last month. Theyre hopeful but theyre also realistic given the fact were running out of time to see a deal in washington when we will know if the furloughs are more permanent the airlines will do it tomorrow theyve announced it, that it will kick in if mnuchin and pelosi and mcconnell come out and say we think we can get a deal by tomorrow, maybe theyll follow through with the furlough noticed. Up next, esg taking center stage. Earlier today i spoke with jeff oven about facebooks approach to social responsibility hmms and ahhs heard incall. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Seeing what people left behind in the attic. Well, saving on Homeowners Insurance with geicos help was pretty fun too. Ahhhh, its a tiny dancer. They left a ton of stuff up here. Welp, enjoy your house. Nope. No thank you. Geico could help you save on homeowners and renters insurance. Earlier today i spoke with inclusive Capital Partners jeff oven and asked him about whether companies at the board room level are discussing these important esg issues he called out social media listen. Social Media Companies are being discussed. I think youre seeing it in the stock price a little bit without some of the scrutiny about the [ indiscernible his point basically hes been on 15 boards and they havent had these kind of board level discussions about esg unless it starts to affect their share price, like the societial impact of facebook. Tomorrow ill be watching pepsi earnings out what will you be watching as we kick off october after a down month for tech and stocks . A down month, a little bit of a stronger finish. You do sometimes get these new month flows. The month of september actually acted a little bit like june you did have a couple of pullbacks from a pretty sharp high and carried stronger into the end of the month there was a little bit of followthrough in july a lot of circumstances are different right nouw. Were probably going to be on vigil for any whispers of a stimulus deal. Beyond that, its about the new flows that come in and whether that changes the equation of this choppy period weve been in. No buybacks for the rest of this calendar year that was expected but we did see a bit of after hours reaction. To sarahs point, after a couple of days after momentum, there seems to be some kind of excuse. The stimulus talks as well clearly going to affect the banks. It is just much more about they dont really have broad sponsorship by investors right now especially as were waiting to see where these credit losses are going to settle out. The fed needs to see exactly what their Balance Sheets are going to look like once were through this phase before we can get approval for capital to turn. Tomorrow 7 00 a. M. , hue johnson of pepsico will be joining me were getting into earnings season maybe that will be a distraction from some of the noise around the economy and the virus. This is fast money, everybody. I am Brian Sullivan in for melissa tonight. Your trader lineup on this wed guy adami, tim seymour, Karen Finerman and jeff mills. Coming up, the nfl postponing