Transcripts For CNBC Closing Bell 20240712

Tech stocks underperforming today, pulling back more of mondays gains or giving up mondays gains, i should say, still on pace for a positive week 59 minutes left of the session, exactly down. 5 , sarah. Weve got a big lineup coming your way National Economic Council Director larry kudlow will join us to talk about the stimulus negotiations and any Economic Impact there. John shrewsberry of wells fargo will be with us and well talk to David Malpass and the race to fund Vaccine Development around the world. First off, though, lets get straight to the big stories were watching mike santoli is watching the market pullback. Rick santelli has the bond report but lets start with mike santoli. Big tech and momentum growth that have been running pretty hotly. This modest payback mode for the prior few weeks. Lows for today were right exactly where the s p closed on friday essentially made this roundtrip a couple of times, trying to bounce off of them yes, if you look at energy, look at pure value stocks, theyre actually up on the day it does seem as if its a little bit of a shift within the market, with a negative bias as we try to figure out if this is a routine pullback it has been very much a riskseeking mode, though. I want to look at the ipo etf. You can look at the cloud sector etf. Things that represent people really grabbing for the fastestmoving stuff then you see this modest curl lower, but 82 year to date, thats just hardly even registers on this chart as much of a pullback. Also an underpinning of a lot of this is whats going on in the credit markets, seeing a riskseeking tone. Highyield bond spread the compensation that investors are making because treasury yields are so low, talking about a spread under five Percentage Points for highyield debt, the absolute highest yield is 5. 5 . It barely qualifies to be called high yield not a lot of macro stress going on but a lot of reshuffling in the equity markets, trying to figure out how deep maybe this little churn period has to go. There is no high yield. My question is why wasnt the whole case for value stocks and cyclical stocks that we would get more stimulus and that would help juice the economy going into the Fourth Quarter . The news on that front today hasnt been good. It hasnt, which tells me really that the pullback is not about those headlines principally, the stimulus talks. We more or less set aside the hope that theres an imminent stimulus plan. I dont know that there is a very satisfy iing reason for why you would see some of the beaten down groups happening except it does look as if theres just a little bit of meaner version the stuff thats flying high is coming back, reallocating in some other areas those banks not a big beneficiary of that. There are reports big value, institutional Value Investors have closed up shops its just one of those moments that seems maybe things have gotten stretched far enough in growth over value to snap back at least on a few hours basis right now. All right, mike see you in a few you mentioned financials more big bank earnings, including goldman sachs, bank of america and wells fargo. Wilfred, what are the Key Takeaways . Well start with provisions for bad loans. This shows how much lower they are this quarter compared to q1 and q2 obviously, lower is better than higher they have fallen the most relative to q2 for jp morgan and bank of america. Bank of america has spoken, in particular, of an improving consumer environment, Consumer Spending overall was higher year over year. Though, thats been offset by pressures on Net Interest Income because of lower yields. Jp morgan was down 9 . Bank of america, wells fargo higher year over year. On the bank of america call, they made it clear they felt Net Interest Income has bottomed not just because they dont see the long end of the curve falling further from here but because they think that refinancing activity has probably been exhausted. Goldman had blowout numbers in their trading experience higher year over year, but lower quarter over quarter nevertheless numbers in trading did stand out. Asset management performance was the biggest contributor to their beat, though cfo Stephen Scherr on that announcement and outlook. Our announced volume in the Third Quarter was up more than fivefold versus the Second Quarter, and our Investment Banking client dialogues remain active the bigger headline in Investment Banking, again in the Third Quarter, was equity underwriting where we generated 856 million in revenues, more than double the levels seen a year ago, marking our second highest quarter ever looking forward, our Investment Banking backlog increased significantly versus the Second Quarter. Growth was supported around m a activity as i noted earlier, as well as replen isht from equity and debt underwriting transactions. That encouraging outlook obviously bodes relatively well for Morgan Stanley though goldman themselves have given up a lot of their early session gains, though theyre still in the green bank of america and wells fargo, down 4 and 5 . The reason not so much what it was in q1 or q2, worried about hurting their but rather the fear of what low rates means for the next three, four, five years, the memories of what european banks have been able to earn over the last decade hurting investors today. That Net Interest Income was so much lower year over year. I was just going to ask about that wells fargo is down more than 7 for the week i know that sort of got some exceptions well talk to trusberry in a second last quarter everyone was worried about the provisions for bad loans. They were higher than expected, whats around the corner from what youre saying, it looks a lot better i asked yesterday if there was a reflection of a better economy maybe it is but that doesnt seem to be giving the stocks a lift. We can show you those provisions for bad loans and clearly those little yellow bars for q3 much, much lower than they were for q2 thats head in the right direction. The very fact that provisions for bad loans are still positive overall shows that there are still fears about the loan book that could get worse and the fact that youve already booked so many, as these blue charts show, highlights that theres still fears that loans could go bad that you havent been able to release yet out of having already provide for those loans. The net outlook is not positive on the economy its just it hasnt gotten meaningfully worse during the course of this quarter i would say both of them, im going to ask shrewsberry about this, bank of america seems stronger on the consumer maybe less so for but the consumer seems to be holding up quite well. Well, that is where well pick up the discussion after the break, weve got wells fargo cfo John Shrewsberry youre watching closing bell, dow is down 90 points here on cnbc before money, people traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. 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About 5 today joining us by phone in a first on cnbc interview, John Shrewsberry, cfo council john, always a pleasure. Thanks so much for joining us. Thanks for having me. Good to be here. I think i start on provisions for bad loans. Clearly, theyve fallen significantly from the last quarter which is encouraging how are you feeling about the strength of the consumer and, as you look across the loan book, which parts of it are contributing to an improved outlook versus still a little worrying sure. Im in credits that are a lot more constructive at the end of the Third Quarter versus what we knew at the end of the Second Quarter when we put up a big provision. This quarter our credit costs that have come through, we didnt meaningfully build the reserve at all part of which contributing to that on the consumer side is certainly some stimulus, which means more consumers have liquidity available while that runs its course and then lots of banks, including wells fargo, have created deferral programs where people have been able to take a break in making what would otherwise be required payments on mortgages, credit cards and autos. Most of those things have subsided and were way, way down and performance has been good as people have come out of those. It wont be until the first half of next year when we know what the unemployment picture is, what the liquidity picture is for consumers and what chargeoffs will be. It feels better today than it did three months ago, and the results have been better in the last three months than were previously predicted on the business side, there are some specific areas in commercial real estate, specific areas in retail, energy, and transportation that have been obviously hard hit by the pandemic i think weve accounted for those in our own allowance process in terms of building reserves and, again, the realized outcomes have been better than predicted so far so, theres still a lot to learn about the virus and what happens to the economy and what happens to businesses, but it feels better today than it did three months ago for sure. Do you think this quarter will mark the low for Net Interest Income . Its tough to say it depends on loan growth. I think you mentioned in the earlier segment that at least we have been talking about commercial loan growth because the Capital Markets are so wide open, borrowers are relying less on their banks and then youve got certain categories in the middle market of commercial customers who are carrying very low inventory and, thus, borrowing less to support that inventory. Commercial loans are just much lower than they might otherwise be of course, were in the mifld a pandemic, so borrowers are probably operating with a little more of a Risk Awareness higher commercial loan balance would mean higher Net Interest Income, and that for us is probably a swing item between this quarter and the next couple of quarters. On the consumer side, theres still lots of mortgages being originated and loan growth, borrower demand is strong there. Credit cards a little less so. But its improving people have been more reluctant to spend on their credit cards during the pandemic. Although that is improving a little bit and people are buying cars so theres plenty of long growth possible in the auto business. John, wells fargo, by far, is the worst performing bank stock of the year. Really lagging behind. It appears not just this week, but for a while now. We always ask you about the fake account scandal going back to 2016 i know you guys are trying to put it behind you, but clearly there are still issues there, a billion dollars set aside for customer remediation how much longer will this plague the performance . I think on that particular point, on customer remediation, it feels like we probably reached the end of it. We are operating with an asset cap. Low rate environment, one opportunity that a bank might have is to expand the size of the Balance Sheet to generate more Interest Income that opportunity isnt available to wells fargo we have to get through that in order to compete evenly. I think Interest Income and trajectory, meaningful component pieces of nonInterest Income, mortgage, card fees, service charges, et cetera, many of which are inflecting nicely since the bottom in q2, those are important for the stock. And then expenses. We talked about the fact that theyre too high theres been a lot of money spent to improve the controlled environment and other things in the company. Charlie is committed to a path forward that makes the Company Expense competitive with its piers. Those are the things people need to see and believe in in order to impact the valuation of the company. John, you mentioned the asset cap. Obviously, this is your last quarter. Maybe you can free yourself up a little bit with your views on this you know, you are obviously were cfo when it got put into place in 2018. At that point, did you expect it still to be in place with all that youve done, all the changes that have been made over two years later . Do you think the bank has been treated a little bit harshly i didnt expect for it to last this long i think where we are today with the team on the field, very constructive engagement with the regulators, everything that needs to be done is being done and my sense is that the company will work through it its a Different Team today, operating across the board on many of the issues that have to be improved for that cap to go away. How long till it gets lifted . Best guess. Its impossible to say. The ball is not in their court otherwise i would give you a gues guess. John, just in general, big debate over stimulus and negotiations appear to be at an impasse again today. What kind of visibility do you have into next quarter and the early quarters of 2021, without knowing whether that stimulus money is going to come through for the consumer, and in what form it takes, unemployment benefit benefits, ppp loans, stimulus checks everything is on the table, but nothing is getting done. Sure. Well, i can tell you that the ppp program was very successful for our customers and really helped them where they need it, which is in keeping people on the payroll. We have seen more liquidity build up in the enhanced Unemployment Benefits and direct stimulus payments and to the extent that those continue, its going to bridge people toward a more complete recovery and employment, whenever that comes. And without it, the reverse is probably true. John, as we wind this interview up and, as i mentioned already, youve come on through every quarter through thick and thin, and we are really grateful for that 26 years at wells fargo, youve worked at senior positions, including cfo, for the last four ceos who has been the most impressive ceo to work for . You know, theyve all been different, and in different circumstances. I think charlie, our ceo today, is the exact right guy for what this Company Needs to do and is doing to transform itself. Without a doubt i think the board picked the right person to lead wells fargo. With all those changes over 26 years, its a testament to the fact that you kept your place throughout all of it congratulations on those 26 years, john. Thank you for joining us. Thank you very much hope to talk to you soon bye. Did you think he was going to answer that . As current cfo i did we kind of got an answer. I know. Weve got a news alert right now in amazon. Deirdre bosa with the details. Amazon has struck a deal with nfl to carry one playoff game. The source says the game will be available on vichlt acom, cbs channels and streaming platform, Amazon Prime Video subscribers and one of the new wildcard playoffs, according to that report amazon has been boosting its prime offerings and expanding its nfl thursday night football programming. This is another step into live sports back to you. Deirdre, thank you very much for that. Hackers are targeting Retail Investors through trading apps what company is getting hit most when closing bell returns. 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. Its a thirteenhour flight, tfifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Weve got 37 minutes left of the session. Check in with the markets down to 0. 4 or so across the three major averages low for the session is down 217, though were only down to around 100 points at the moment lets have a look at individual market movers, shares of tesla surging on the heels of the jp morgan upgrade ev demand is likely to quadruple. The stock is up 21 . And Concho Resources jumping on a report it could be bought by conocophilips. Deal could be announced formally in the next few weeks. Moving in opposite directions today. Criminals are now targeting Retail Investors by hacking into those popular trading apps cnbcs kate rooney has details on which app gets the highest price, kate, on the dark web. Hi, sara. Hackers are turning to the dark web where these brokerage account logins are for sale for as little as a few dollars your average person cant access these sites without special software we receive aid tour of the dark web. We saw dozens listed from td amertrade to vanguard. Accounts on stock trading startup robinhood were listed with the highest price analysts say that could be due to perceptions that robinhood would likely be easier to hack and criminals thinking if they buy those credentials, theyre more likely to cash out. S. E. C. Warned against these Cyber Attacks and recommended that additional steps be taken to protect client accounts work from home and a boom in day trading. Robinhood telling cnbc theyve seen a limited amount of attacks this year and theyre rolling out pushed notifications, reminding people to use two factor tho authentication and stronger password. Is that the dollar price, 4. 50 to get one accounts login details . It almost looks like a craigslist ad. Multiple services saying weve got these credentials. I thought they might be higher they are all in through the singledigit low dollar amounts. Fascinating kate, thank you. Still ahead on the show, National Economic Council Director larry kudlow joins us exclusively to talk about the president s economic plan and, of course, the latest on stimulus negotiations. As we head to break, quick check on bonds for you tenyear note just went positive stocks mostly selling off. Dow down 100 points, putting pressure on yields short end of the curve is higher closing bell will be right back welcome back dow is down about 100 points walmart, disney dragging us lower. Time for our cnbc newsup date with sue herera. Hello, sue. Hi, sarah hi, everybody. Tennessee waiting for abortions is found to be unconstitutional. The state did not show it helped to reduce socalled abortion regret pg e says it may have to cut power to as many as 354,000 customers in 24 counties to avoid sparking new wildfires amid bonedry conditions and forecasts of gusts hitting 55 Miles Per Hour through friday morning. The fight to control the senate is leading to massive spending, including in montana, where more than 118 million has already been spent on advertising. The ad tracking firm cantar expects political groups to spend 800 for every one of tha states voters ill send it back to you. Thank you so much for that. Up next, National Economic Council Director larry kudlow weighs in on stimulus negotiations and whether he thinks a deal can get nedo before election day. That after this break. First up is this exquisite bowl of french onion dip. 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. 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Why cant a deal get done its a heck of a good question i spoke to secretary mnuchin not long ago and, you know, hes frustrated is he so good at this, but the main thing is why is it that our friends, democratic friends on the other side want this allornothing approach . Like zero or everything . Weve got certain needs for the economy. The economy is coming back nicely it is a vshape recovery, in my judgment however, Small Businesses and the ppp loans would be a tremendous help. Unemployment assistance. We did it by executive order thats not going to last forever. That would be a tremendous help. Covidrelated, specifically covidrelated and directed efforts to opening schools, for new equipment and ppe and whatever it takes for testing and keeping the kids safe, that would be a terrific help and from what i gather, there is broad agreement on that. Where theres not agreement is really a lot of ideological, political stuff that has nothing to do with the economy or covid. Look, sara, ive split the economic, covid differences. Why not get that done now . It would be so helpful and get more and more people back to work, save the small restaurants and Small Businesses and so forth. Why not . So, here is my question why not do the full thing . I mean, youre being given a chance to pass 2. 2 trillion in spending with weeks until the election that would juice the economy and the stock market, and you keep walking away from that. Wow walking away wait a sec can we just do that little news item you put out there we arent walking away we have closed the gap, enormously, okay im not sure the Senate Republicans would buy into it, but weve gone from the administrations original position with about 1 trillion. Now were at 1. 8 trillion the Senate Republican original bill was 500 billion now theyre look at something much larger. Were not walking away every single day chief meadows, mark meadows, Steven Mnuchin has been on the phone, the rest of us talking at Different Levels and providing backup you cannot characterize this as walking away. I did not mean this as walking way from negotiations. I beg your pardon we would never walk away. What i mean is you dont want to do all or nothing why not do all why not do the 2. 2 trillion to help this economy when youre being offered that chance and at a time that Many Americans need it. Were not being offered that chance i do not want to involve myself in the negotiations, but i will say this, many people i want to keep this general Speaker Pelosi will keep stringing us along. We agree to one thing, now its another. We agree to another and now its a third item we have come a very long way here is the question you should be asking. To keep this economy in a vshaped recovery, to make sure the unemployment hardships, which still exist out there can be dealt with effectively, to help the Small Businesses, no one disagrees about that including, i might add, limited liability insurance, which theyve asked for since day one on both sides of the aisle why go all or nothing . Why not just agree it a few simple principles and litigate the rest of it later on . Youve got plenty of time. Im just saying that right now, right here, you have a moment where i think you could come together in a sensible, targeted, efficient, smart package. And thats what secretary mnuchin is trying to do. Im not sure its over, by the way. You know, hes a great friend of mine weve worked together at the treasury department. He is always on the phone. Ive been with President Trump quite a bit. The president , by the way, gave a fabulous speech to the new York Economic Club today President Trump is willing he has said that he is willing to spend a little more if thats what it takes. Mnuchin is up there, conveying that message so is chief of staff mark meadows. This is not a time to say all or nothing, okay . Im sorry, sara. In a negotiation, people have to give on both sides we are down to short strokes im not saying its done or cooked or over im just saying there is still time for calmer heads to prevail to help americans across the board and help the kids. Jobs and kids. Larry, its good to see you its wilf here switching focus a little bit, i wanted to ask what you thought about the speed of the president s recovery from covid and if it makes you think that people should be more brave, gungho, whatever the word is, and getting back to work, getting back to offices and socializing and going to various hospitality type venues and getting the economy going again. Look, wilfred, ill tell you, i spent a goodly amount of time with the president the last 48 hours, preparing this economic speech he looks great he sounds great. And i think all of his old energy has returned. He gave a heck of a speech today, one which you will hear more and more of on the campaign trail about Economic Growth and prosperity and opportunity, and the conflicts, the divisions with the other side that, frankly, with their high taxes and regulations, are going to move us toward stagnation and pessimism, and perhaps recession as well. So, thats key he did it beautifully. He answered a whole bunch of questions from smart people. Now his view has always been that we should reopen the economy and we should reopen the schools. And lately, its very interesting to me we all talk about scientists and so forth. Youve got these chaps from oxford, harvard and stanford leading a petition, doctors, scientists, Health Care Workers and so forth i think there are over 5,000 people who say we must protect the vulnerable, must protect the vulnerable that is preconditions and the elderly, but we cannot keep people bottled up at home. Theres a social cost and an economic cost, and child care costs and psychology is too great. That has been the president s message. Its interesting to see all these brilliant thinkers come together and essentially endorse that message i think the other team would fine the scientists and close the door we dont want that we want the door to be open. The reason theres a vshape recovery is roughly 80 of businesses the country are open. Probably 80 of them were closed last winter. Given taxes, low regulations, trade deals, given a chance, this is a terrific opportunity here new Business Applications are skyrocketing big piece in the wall street journal talked about how entrepreneurs and innovators, despite maybe all the odds of the pandemic, are actually opening up new business left and right. I think thats terrific. We have to keep the incentive policies in place. Lets get it open and lets do it smart lets not forget, it has to be done safely. Theres no question about that thats an old argument masking, distancing, testing where applicable, and good hygiene. That will give us a vshape recovery why not help some who are in need of some help right now . You know Unemployed People in Small Business why not help out can we put the ideological politics aside for a moment and help the country grow its way out of this . I think a lot of our viewers would agree with that sentiment, larry. As far as a vshape recovery is concerned, i dont know that the data stands up to that you mentioned that business is open but yelp shows 60 of the businesses that were closed did not reopen when they were able to do so so, clearly, Small Business is hurting. Layoff announcements from big business nearly every single week disney announced 28,000 people are laid off and were heading into the winter where restaurants wont be able to do as much business outside. People arent going to be able to do as much activity outside, and covid cases are set to rise. So, what happens to that v i dont know if covid cases are set to rise. Thats a science issue i cant speak to that. Here is what i would say new Business Applications are soaring. Everybody has their favorite website. All i can say are the governments stats are very clear. There say housing boom i dont care whether you look at starts, sales, confidence, pending sales. There is a housing boom. We just had a tremendous report from Small Business, nfib. Small Business Confidence is soaring, okay . Its above year ago levels, which is terrific. We know theres an automobile boom we know theres a manufacturing boom we know theres durable goods boom we know inventories have to be rebuilt because they were rock bottom at the end of the Second Quarter contraction. We know the atlanta fed gdp is looking at 35 in the Third Quarter and the blue chip private forecasters are up 29 these are their numbers, not ours i would be thrilled with 20 plus that was my original idea. We know that economic policies matter a lot one of President Trumps key messages today, key messages, he said i will deliver optimism, opportunity and growth he said the other side will be pessimism, stagnation and decline because this is no time for cro for acrosstheboard tax hikes or acrosstheboard regulation with government taking over the entire health care sector, the entire Energy Sector i want to add to this, whether we agree or not, the data show from the Census Bureau and the bureau of labor statistics and the Federal Reserve, under President Trumps economic policy, prepandemic, okay, those who benefited the most were the ones who needed it the most. But those are the ones getting hurt the most now. And what im talking about, what im talking about is middle class and lowerwage folks, whose family incomes have soared, whose Household Wealth has soared and whose real wages have soared. The least among us have been helped the most. Now to your point, what you just uttered, i say yes lets keep in mind that we should help those who need help now, and thats why we should stop doing the ideological politicking and gigantic bill. All you need are a couple of standalone bills to refurbish and repurpose the 135 million for ppp. Thats easy. All you need is a bill to help give you Unemployment Insurance well into next year. We need a bill to do it. All you need is another appropriations to help schools reopen and provide assistance to covidrelated matters. This stuff is not hard we shouldnt make it so hard we shouldnt have things about health care assistance, illegal immigrants, harvesting mailin votes. There are a million things, unfortunately, that the other side wants to push that has nothing to do with economic recovery or covid. Lets just common sense do it, and then we can litigate the other stuff. There is an election in three weeks, and well see. Yeah. Larry kudlow, thank you very much well continue to talk to both sides about it good to get your take, always. Thank you appreciate it. Appreciate it. From the white house, council of economic advisers. Dow dn isow133. Well be right back. 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. Ten minutes to go in the trading day. We are now in the closing bell markets, with all the action going into the close mike san totoli here, and wealt management ceo Josh Brownback as we well welcome, josh. Well kick it off with the broader markets. Stocks are under pressure today. Majors lower for the second straight day we havent seen a backtoback lower day for stocks in about a month, since mid september there are pockets of strength i wanted to ask you about energy, materials and industrials. Transports are also higher are you taking these opportunities at all to load up on some of those value, cyclical plays that have shown some signs of life . Not really but its constructive to see energy finally stop getting killed every single day so i wouldnt suggest that today is a bottom, but maybe there should be more m a the kroncho deal gives people some sense these arent zeros. Thats the most optimistic i can muster for you, sara, on the xle names f youre looking for a place where this rally might stop, particularly on the etf, that would be 34, which was previous support it broke through that level. That will now be the new resistance thats about 10 higher than where its trading now maybe theres some room to go in these energy names a lot of whats happening, though, today, is through the looking glass. The laggards are leaders and leaders are laggards weve seen these types of days before look at the airlines and cruise lines flip flopping today, for example. Look at tech selling off while you see these oil names run. Usually, this is a one or twoday phenomenon i wouldnt be running in and acting like Something Big is happening because its probably not true. Mike, to that point, it does sort of feel quite lethargic today, but were still higher on the week, other than for the dow. We are. The way to think about it is kind of overbought, leading stocks probably needed to take a breather and pull back its happening in the context of other stuff, you know, outperforming. In other words its not as if everything is for sale it seems pretty benign at the moment s p just went back to tag exactly where we close d on friday and maybe well see if that holds as a low for a little while anyway. Eli lilly paused in one of its antibody trials. Meg tichlt rrell has that for u. Lilly points out that the trial was in hospitalized patients who are typically more severe and farther along in their disease. Theyre also being given other therapies like remdesivir in addition to the antibody none of their other trials have been paused. Those are all in earlier stages of the disease mild to moderate patients are in the prevention setting we talked with lillys ceo about this situation and what he would say to people who might be worried these trials are moving so fast. They might be with worried about are we skipping steps to rush them to market . The answer is no i think this pause is one point of evidence around that. These types of controls are, to my knowledge, certainly all of lillys programs and in all of the major programs in industry people should be reassured that the controls are in place, to make sure that the data we have and the findings are real, that patients are protected in the process. Guys, folks can catch more of this interview with david ricks tonight on nightly news. Back over to you. Meg tirrell theyre good to hear on the safety front thank you. Meantime, consumers are spending more money during amazons prime day compared to last year. Bertha coombs has the details. Bertha thats right, sara. Amazon saw an average increase in 76 in spending according to edison trends, walmart an average 18 . Amazons competitors aretaking a bit more of its sales. Target and best buy doubling share from a year ago to 2 . Walmart taking 3 versus 2 last year walmart also getting a jump on the holidays, announcing its black friday plans with three different categories being highlighted and three different events in november so, happy holidays, sara. Really. Bertha, thank you. Black friday started weeks ago at my house, in march. I think that will be a dynamic i would never be in a stock because of prime day, black friday or cyber monday, whatever it is. I think youre either in a company thats growing and taking market share or youre not. And we know what amazon is we know this has the potential to be a 2 trillion market gap this is a Company Growing revenue 30 some odd percent year over year, consistently. And most of it, most of the growth in revenue is not even having anything to do with the ecommerce component so im in amazon ive been for pretty much forever. I intend to stay one of these days well run into a disappointing prime day. I dont think it will be this year. Ceo dougmcmillen 7 00 a. M. Eastern time on squawk box. United set to report their earning after the close today. Phil leebeau has a preview for us. Nobody is expecting good numbers. All the airlines lost billions of dollars last quarter. The key metric people will be fo focusing on when these nims come out in a few minute, what happened with the daily cash burn remember where they were in march. Roughly speaking 50 million a day is what they were losing q2 they brought it down to 40 million. Most analysts believe it will be around 25 million for the Third Quarter. That he keet metric to keep an eye on after we get the numbers in a few minutes, tune in tomorrow morning, squawk box at 8 40. Do not miss this interview well be talking exclusively with united ceo scott kirby. Well talk about the numbers and his outlook as they look toward a path to getting back to break even and getting past covid19. Thank you we look forward to the numbers and interview tomorrow the airlines are the reverse of the market today, mike, down yesterday but up slightly today. All the big ones are basically these depleting piles of cash and a call action on the world getting back to normal i think delta, southwest are in a better spot relative to the other others. What else are you seeing, mike not outright negative its just slightly negative, almost a 50 50 split on the New York Stock Exchange between advancing decline. It shows you its very kind of rotational type action, not just a pure selloff. Take a look at the cloud etf against oil services this is an example of the kind of action were seeing today coming out of the kind of glamour Growth Stocks and into some of the dirtier old economy stuff, at least on a oneday basis. Volatility index is perky again, gotten above 26. No real change in that story just still a bit through the election, wilf. Under one minute left mike, thank you. Were selling off a little bit in the close off the lows that came a couple of hours ago the dow is down 165 points, nasdaq down 0. 8 in terms of sector performances, industrials, energy, materials stay in the green. Other the eight sectors are in the red, discretionary and Consumer Services the worst. Banks have had a bad intraday performance. Wells fargo, bank of america down 5 as we approach the close. Kpw bank index, which had been positive most of the session, is down 2 . And goldman sachs, two investment banks that are almost in the red as we approach the close. Goldman giving up so much of the gains of the last two days headed back to the broader indexes, we are down twothirds of one percent. Got a little tick lower into the close. Welcome back to closing bell. Im sara eisen with wilfred frost and mike santoli take a look at how we finished up the day on wall street. Those gains went away pretty quickly. Closed down 165 on the dow United Health care was the biggest drive on the dow some of the winners were at the bottom of the pack like salesforce, home depot, disney and walmart. S p down. 6 technology, which had shined earlier this week, was on the back burner today. Strength in groups like energy and materials and industrials. 8 , russell 2000 closing lower on the day by almost a percent financials not a help there. Weaker after their results, which continues the trend pretty much that weve seen so far this week investors are ready for earnings from United Airlines, which will report results in a few minute, instant analysis for those numbers as soon as they are out. Plus an interview with the World Bank President David Malpass. He talks about the impact if the u. S. Is unable to pass a stimulus bill. First to you, mike, some of the selling being blamed on mnuchin saying its not looking likely well get a stimulus deal before the election. Is that whats moving the market here its vaguely timed for Something Like that if you look at when the market rolled over today, around the time of those headlines. Kinds of stocks that got hit most and got outperformed dont fit too well with a narrative that says bankers were depending on a push. The headline reflex and the psychological effect, im not sure thats what was really going on s p up 8 this week, in about three weeks. It made a run at the old highs a little bit stretched i think you have this relatively natural process of settling back kind of benign, churning action. A few percent on the downside before you have to look at it looking like anything like that. There were a lot of opposing currents buying the laggards just for a day. Sara, its hard to point exactly what the reason for the selling was, but we also got more news of worsening case counts and lockdowns across europe over the course of today. Does the u. S. Market need to be worried about that, or provided we dont see the same level of case counts or lockdowns in the u. S. , can it shrug those kind of headlines off . Surprising case counts is definitely something were watching were more focused on mortalities and hospitalization rates which are not rising at the same rate. Kind of sell on the river kind of day, a handful of disappointing earnings earning season will end up net positive with a lot of surprises, with estimates down over 20 year over year. We think company also beat the outlook will be tougher then with the election, lack of stimulus and timing of a vaccine still with big question marks around them. We wont get the clarity from managements we need to see therefore, Growth Stocks will be the ones that will continue to perform well because theyll print the strong earnings number throughout this reported earnings season. My other question, sarah, is on that idea weve heard this a bunch earnings are going to look so good because theyre going to beat but theyre beating analysts expectations that are flying blind because the companies didnt give guidance are the stocks really going to be rewarded for these beats . I think these beats on some of these Growth Stocks with resilient models may be a reminder why you want to pay a premium for them what will be tougher are cyclical that for that vshape recovery to happen you need a stimulus package in place, path to a vaccine, and the election to move behind us. If the democrats do win or even sweep, we think thats positive for cyclicals. Nearer term, more resiliency, own your growth companies, but start to look at cheap value like small caps can companies that can have lerchl once we get that vaccine and stimulus in place, which we do expect to come, but not likely this quarter or Fourth Quarter. Josh, are you expecting the election to create more of a pullback as we approach election day, or do you think the market has already gone through its electionrelated jitters a month or so ago . I just feel like this year, in particular, weve already been focused on this being an unruly election for like the entire year. So if we have a, quote, contested election, or theres lastminute shenanigans or more screaming about the mailin ballots or whatever, no one is going to be like, oh, my god i cant tell you how many sell side notes have piled up in my email literally for months about what does it mean if its contested . Lets look at al gore and george w. Bush. Its like endless. Everyone already expects a slowmoving train wreck. So i really dont, wilf, see this to be like something that will rattle the market what ive been most interested in seeing lately is the shift in narrative. O wait, biden is good now, but its only good if its biden plus the house and senate. And so if you look at like 538 theyre saying only a 65 chance that all of those things happen, which to me sounds more like 50 50, given we know how people answer polls untruthfully. That would really be the Biggest Surprise if it happens, markets will fly because then bigtime stimulus is a feta com plea the big surprise to the upside not the downside is the way i would think about the election. Lets talk a little bit about the banks. More are reporting this morning. Goldman sachs moved higher, smashing earnings off expectations. Barely. Closed up 0. 2 . Thanks, josh and wells fargo and bank of america both closed down sharply, close to 6 for wells, over 5 for bank of america, as Net Interest Income, in particular, disappointed wells fargo cfo John Shrewsberry talking about the consumer. On the consumer side, there are still lots of mortgages being originated and loan growth or borrower demand is strong there. Credit cards a little less so but its improving people have been more less likely to spend on their credit cards during a pandemic and people are buying cars plenty of long growth possible in the auto business. Josh brown, whats your take away from all the banks . Bank of america and wells fargo, relatively constructive on the consumer, given the state of the economy. But have we learned because of the low yield curve that the commercial banks arent still the place to be . Yeah. Like all the highlights from the bank reports have been focused on Capital Markets, ipos, Investment Banking and trading but the street doesnt give these companies an increased multiple even when they have outstanding results, as they have on those lines of business, because the street doesnt see those lines of business as being like reliable or sustainable so what the banks really need is, i thinks a scenario where the yield curve steepens, theres more Net Interest Margin and they start getting some more credit for some of the innovation that theyre doing. Goldman and jp morgan are great examples, getting deeper and deeper in things like asset management, Online Banking but nobody cares its almost irrelevant what they tell the street theyve been able to accomplish in that arena. One day maybe that changes so i think theyre worth owning, but i wouldnt be expecting anything out of these stocks its too many headwinds and sentiment is not turning any time soon. Sara, whats the problem with wall street and the banks and the share price reaction are they worth owning . Do you agree with josh i agree with josh tough path for the banks, if its a blue wave, we have higher regulations, lower Interest Rates, tougher Net Interest Income were sticking to higher quality, more diversified banks, goldman sachs, jp morgans of the world. Questions around their cost cutting and ability to restructure their business not huge fans of the sector generally. Mike, Morgan Stanley is down only 1 , wells fargo down 57 . That is an astonishing price differential, even despite those fundamental drivers and how different they are for the two types of banks. It is certainly reflects, to some degree, the way that this year has developed in terms of Financial Markets and people leveraged toward, you know, wealth and Financial Markets have done better than, you know, your main street economy to some degr degree i think business mix is a big part of it for the entire group theyre not being treated any differently than the super cheaplooking stocks without a lot of growth in other sectors rank the s p 500 by the cheapest, you know, stocks on this years earnings, its going to be life insurers, old Media Companies like viacom and discovery, and its going to be generic drugmakers in other words, every sector has this issue the thing is with financials most of them are in that category and the mark has no time for pure value stocks, at least at the moment, with yields where they are, and with this obsession with secular Growth Stocks. Finally, josh, to round out the conversation on elections and sectors, do you buy into the idea that sectors will be hit differently, depending on the outcome of the presidency, of course, and congress if so, are you positioning that way . Are you buying solar stocks, for instance, or are banks worth avoiding, Energy Stocks . All these sectors have big implications, no matter who wins. I used to think that. But then i spent 20 years in the industry and all ive ever seen is that kind of stuff get priced too much in advance of the election and than get unwound after and really simple, recent example to illustrate that point is everyone screaming when donald trump won, hes going to deregulate energy, going to deregulate finance therefore, the best performing sectors are going to be banks and oil. Over the last four years, those are the worst two performing sectors and those were supposed to be the trump trade, deregularitied finance. True. And deregularitied energy you should really not do that stuff. And when you start reading an article and somebody is talking about that, thats your cue to like click away to the next article or check your phone, or do something else. Because it really is not a way to invest. It doesnt work. Its not going to work it never did work. Its a much better conversation on tv than it is portfolio maneuver. Josh and sara, thanks so much for joining us great to see you both. Thank you. Up next, well break down United Airline earnings, expected to be released any moment now well be right back in 90 seconds. Seismic or small, it continues. Change is all around us. Shaped by technology and human ingenuity, we can make it work for you and your business. This was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Welcome back lets go back to mike santoli, taking a look at the sector that shined today, mike. It really did look at the levels from which its bouncing right now. This is a chart of the Energy Sectors weighting in the s p 500 taechlts basically s p numbers two spikes of one after the gulf war and the china commodities in 07, 08, oil over to 100 down to 2 of the s p 5 h00, fie individual stocks that have a larger weighting than the entire Energy Sector does this is what it means. Its hard to make a fundamental bull case outright if you want to buy the stuff thats been hated the most and neglected the most, energy rises so far Energy Sectors price to sales ratio or dividend yield compared to the s p 500 any valuation measure you want to use, energy versus the rest of the market, it will look good compared to the rest of the s p. Its about three times energy you have right now people are not really believing it, wanting it they believe theres too much downside exxon and chevron are about half, together are half of the xle. You have big, slow moving majors maybe one of them, at least doesnt have that safe dividend much thats what youre saying the sector is kind of begging you to be a contrarian but it doesnt make it easy. Whats the bull case, besides the fact that its so cheap . Well see more yields . Concho popped today. Theres definite ay story line that the over capacity could get mopped up through m a. Energy stocks have vastly underperformed crude in theory, if you have a little bit of a faster global growth, you take up the excess supplies of the commodities themselves and could tighten things up slightly its unclear if thats going to be enough to overtake the kind of messy Balance Sheets in a lot of the sector and things like that theres always going to be kind of a cloud around every silver lining. I guess the other attempted bull case ive seen put out there over the last three years, not necessarily this year, but for this sector is comparing them to the tobacco stocks 15 years ago. Yes. When Public Opinion was moving geps them in the same way it is against fossil fuels, but then those stocks still performed very well over an extended period of time, largely because of their strong cash flows and dividends. Thats right. I wonder if today the market cares less about those strong cash flows and dividends. Strong cash flows, dividends and pricing power. You were able to raise price a lot in tobacco you havent been able to do that with energy. Mike, thanks for that. United Airlines Earnings are out. Phil lebeau has them for us. Phil hey, wilf united losing 8. 16 a share. The consensus estimate was for a loss of 7. 53 a share. Im not sure thats a huge surprise to people, given all the things that were moving around in the Third Quarter. Revenue, a little bit lower than expectations at 2. 48 billion. The estimate was for 2. 5 billion. The Company Ended the Third Quarter with 22. 29 billion in debt its liquidity, the metric people will be focused on, liquidity at 19. 4 billion and cash burn level, it burned 25 million a day. Remember, thats coming down from 40 million a day in q2 thats what people were expecting. Trip out debt and severance payments couple of important notes here one, the company in this Earnings Report is not giving guidance on a break even date. Though my guess is we will probably hear about that during the Conference Call tomorrow it does believe, however, it does have enough liquidity to make it through this covid19 pandemic again, guys, a greater than expected loss for united dont miss our exclusive interview tomorrow morning on squawk box. Well be talking with scott kirby at 8 40. You do not want to miss this interview, not only to talk about these numbers but more importantly, what hes expecting over the next couple of quarters guys, back to you. Phil lebeau, thank you. With united down a little more than a percent after hours first reaction to those numbers. Tonight, dont miss Shephard Smith reports air travel in turmoil, from pilots to Airport Taxi Drivers who are struggling to keep their industry alive that is tonight 8 00 p. M. Eastern time. Up next on this show World Bank President David Malpass discusses how a potential stimulus deal in washington could impact the Global Economy. As a reminder, watch or listen to us live on the go on ll cnbc app webe right back on closing bell. Incomparable design makes it beautiful. State of the Art Technology makes it brilliant. The visionary lexus nx. Lease the 2021 nx 300 for 359 a month for 36 months. Experience amazing. At your lexus dealer. Welcome back disney responding to senator elizabeth warrens criticism of the company. Julia boorstin has details for us. Thats right, disney responding to a letter from senator warren, asking the company for details on the announcement of layoffs, stock buybacks, dividend payouts and high executive pay may have exacerbated current problems disney released a statement saying, senator warrens misinformed letter contains a number of inaccuracies weve unequivocally demonstrated our ability to operate responsibly with Strict Health and safety protocols in place at all of our theme parks worldwide with the exception of Disneyland Resort in california where the state has prevented us from reopening even though we have reached agreement. Theyre using this to justify their layoffs whereas warren is putting pressure on them for other things back to you. Its not the first time disney has been under pressure with how its treated and prioritized workers, including from heiress abigail disney, julia. Yes disney has faced questions in the past about discrepancy between executive pay and the pay of its lower workers i would expect disney to say this in response to senator warren when they announced furloughs of many employees they announced pay cuts across disney ranks, chairman bob iger forego his salary and chairman cut his salary in half this is something that disney has been addressing over the course of this epidemic, pandemic. But still paying the dividend julia, thank you julia boorstin. Global growth is set to be weak this year, 4. 4 with a bumpy, uneven recovery next year, according to the imf i spoke exclusively with World Bank President David Malpass take a listen. In some of the advanced economies, the recessions are less deep than had been feared for the developing countries, im afraid outside china, apart from china, many of the developing countries are worse than had been earlier expect ed so, its this unequal process of recovery going on. What about u. S. Stimulus . Theres a huge debate right now over whether to do more, how much to do what would it do for the Global Economy if the u. S. Injected more fiscal stimulus this is an unprecedented crisis, and the amount of stimulus already being inserted into the Global Economy, i think, is also unprecedented its not just the u. S. , but its europe, its japan and what that means is that theres more demand. You know, people spend some of that money, but for the developing countries, not much of it really reaches them. So my real focus is on the poorer countries they dont have the capacity to do this kind of fiscal stimulus, and their Central Banks cant be buying assets the way that the Central Banks in the advanced economies are doing. So, it poses a real problem, because the economies are slow, and theres not much sign of a recovery yet. What are we looking at in terms of your fears about the developing world, defaults yeah. One problem is the debt overhang that is not going to challenge the global system the way it has in previous crises, because many of these debts, these amounts owed are to the bond market, euro bonds, for example, and also to china. And so these are not going to really undermine the international system, but what it does do is causes the poorest countries to have to keep making payments thats what weve been focused on, to try to have a suspension of the payments and then a longer Term Solution for these countries. At the same time, theres still so much uncertainty. We learned that europe is now overtaken the u. S. In terms of new positive covid19 cases. Second wave concerns, as it gets colder outside what would that do to this recovery for the advanced economies, well have to see how they handle it. One of the challenges is with the schools closed and people arent able to go to work because theyre taking care of their kids, and the learning goes backwards thats a particular problem in the developing world we think there are 1 billion children out of school in the developing world, waiting, really, for the recovery to take hold so if theres a second wave, thats a concern but im mostly focused on this first wave the number of people in extreme poverty looks like its going to go up by 150 Million People in 2021, which is a giant backward, or worsening of the poverty conditions in the world because of the pandemic and the shutdowns. I dont think weve seen that kind of step backwards since, what, 1998, during the Asian Financial crisis what are the solutions the solutions, i think, are to find some kind of treatment we passed 12 billion to help the poorer countries purchase vaccines, therapeutics and Distribution Systems once those are available and developed. Well want to move quickly if there is a medical improvement thats available and the other part is trying to keep core businesses open and running, and available that means electricity, Water Systems and food Distribution Systems all going during the crisis so, were quite focused on that. We have a lot of cash flow. You mentioned the 12 billion youll help get vaccines and treatments the u. S. Has spent 10 billion on operation warp speed. Are you concerned that the u. S. Will be prioritized . Weve already got deals with all the major manufacturers, vaccines and treatments. Were also working with manufacturers. Ifc has a 4 billion platform that will help manufacturers who want to distribute into the poorer countries so i think there will be a big moment by the manufacturers to have a fair, equitable distribution around the world. Im not so worried about people buying up the doses. We have money available that countries can choose how to buy, what services they need, what vaccines they need when those are available. David malpass, president of the world bank wichlt wilfred, to me, he was sounding the alarm on the poorest countries of the world, putting a line between the advanced countries. Were haggling with the stimulus and so many countries dont have the privilege of being able to pass a fiscal or monetary stimulus because of their central bank positions and debt positions. Hes worried about defaults. Hes worried about a billion children, a billion children in the developed world not being able to go to school and a second wave potentially prolonging that process, and 150 Million People entering extreme poverty next year, which means living off 1. 90 per day for me, it was a wakeup call for countries that we dont necessarily talk about every single day on cnbc when i asked him afterwards which countries hes most worried about, he said india, ethiop ethiopia, a number of african countries that are most populated and also among the poorest. Fascinating there and implications for the dollar as we move into next year and get through the current bumps will be interesting as well market claflash. Revenue came in a little less than expected. Fastly announcing Third Quarter revenue to 70 to usage of fastlys platform by previously disclosed largest customer, tiktok, did not meet expectations, resulting in a poor responding significant reduction in revenue from this customer of course, fastly has been one of the huge winners this year. It is up 500 year to date and up more than 1,000 since the march low. We will learn much more about those Third Quarter results when the Company Reports october 28th ill send it back to you you can see its tanking after hours, down about 27 , wilf. Big time. Thank you. Fed vice chair predicting it could take a year or more for the u. S. Economy to recovery kkrs head of global macro and Asset Allocation henry mcvey will join us about the possibilities of an economic bounceback of 5g nationwide. And, in more and more cities, the unprecedented performance of ultra wideband. The fastest 5g in the world. It will change your phone and how businesses do everything. Im proud, because we didnt build it the easy way, we built it right. This is the 5g americas been waiting for. Only from verizon. 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. The u. S. May still have a long road ahead in its economic recove recovery, Richard Clarida telling u. S. Finance today it could take a year or more for u. S. Economy to get back to its prepandemic levels henry mcvey, head of global macro and assr you have views from rich clarida like that. At the same time a different approach to the fed, less tied to holding its inflation target now. Whats your view as to whether or not we will get more inflation than expected in the next couple of years if so, whats the best way to be positioned for that . Thanks for having me. In the near term, the bigger risk is deinflammatiflation not. Aside from used cars youre seeing a slow down in services thats the near term the Federal Reserve is focused on that. Thats why they changed their policy what we were highlighting to investors in our latest piece is just that, you know, if weve been in an environment where its been risk on, the fed also gave an important warning bell one fed governor dissent, and they talked about financial stability. And what theyre trying to do is make sure the money gets into the economy, but maybe not as fast, as quickly into the markets. I think theyre happy with where the markets are, financial conditions are easy. Credit spreads are tight and valuations are fair to full, depending on the metric. Kkr, we continue to talk about this as a square root recovery, which is we have a big jump up and then we have a more modest growth and listening to you and your team earlier, thats what were seeing the rate of change will slow as we go into the winter. Cases pick up a little bit our base view, though, is that weve already had a recession. Were going to have a recovery we want to be invested inthat recovery, you know, through june 30th weve invested abouted 30 billion globally around the world on behalf of our limited partners and thats been to take advantage of some themes that we think are really important and i can get into those, but our view is that it will be a recovery theres more stimulus coming regardless of which administration, and when you look outside the u. S. , europe has a much better game plan than they did after the 2009 downturn with the Reconstruction Fund and, you know, when we look at asia, were the largest player in asia in the alternative space were seeing a lot of recovery in china and that is now extending into things such as services you saw that in the data over the last week. During their golden week you saw domestic flights pick up, hotel usage pick up. And theres encouraging signs for investors that those trends ultimately will come to the u. S. And to europe. Henry, given how far markets have come, they come roaring back and valuations, broadly speaking, dont look that great. What themes do present a good risk reward right now, whether its in the private or Public Markets . Yeah, okay. We mostly traffic in the private markets. So ill speak to our first pivot during the downturn was really around data usage and digitalization weve done that through infrastructure as well through private equity and weve been very active in europe and asia around that. Weve also, i think, done a lot around ecommerce, which makes sense, just given the prevailing trends where do we go from here were still very positive on housing. When you look at the supply demand characteristics, particularly in the u. S. , theres a lot that can be done and we would stay constructive on that area and i think unlike most downturns, both housing and autos this time actually have not gotten hit theyre actually improving this whole notion of personal safety or what we call nesting, like after 9 11, what you saw is u. S. Consumers traveled more locally. They did more Home Improvement and thats a similar trend thats playing out and thats very constructive in europe, weve invested behind a staycation idea in the netherlands and we think thats going to work out well those are a couple of themes obviously, we stay very focused, which i heard earlier in the show you were mentioning were doing a lot around food safety, Health Safety and environmental safety if you look at whats happening, technologys priority number one in china number two is actually the environment. And then you look at whats going on in europe with the Green Package and ultimately if you get a biden administration, that could be a big part of it we have a dedicated impact fund where we focus on those issues, but more importantly that infrastructure and social governance, i would say, focus is just important to us. Henry, thanks for joining us. Great to see you. Thank you up next on the show, we will speak to the chief Research Officer at hackensack meridian health, the first to participate in modernas vaccine study well be right back. Hmms and ahhs heard incall. But i cant say i expected this. Because it was easy. Hmms and ahhs heard incall. To fight these fires, we need funding plain and simple. For this crisis, and for the next one. Prop 15 closes tax loopholes so rich corporations pay their fair share of taxes. So firefighters like me, have what we need to do the job, and to do it right. The big corporations want to keep their tax loopholes. Its what they do. Well, i do what i do. If yould like to help, join me and vote yes on prop 15. President trump and first lady melania saying their youngest son, baron, tested positive for the coronavirus they say he showed no symptoms and has since tested negative. 25 states attorneys general are opposing a u. S. Opioid settlement with pharma and members of the Sackler Family who own it ags argue that would improperly entangle future sales of oxycontin. Reimagining this years pro bowl no pro bowl game will be played, making this the first year since 1949 without some form of football allstar game you are uptodate, guys sara, back to you. Sue, thank you. Up next on the show, race for a vaccine is center stage with several trials being paused well discuss with a chief researcher at Hackensack University medical center, also the first patient to take the moderna coronavirus vaccinine that hospital. Well be right back. We made usaa insurance for this season. And the veterans that never quit on their team. When being a fan gets tough, and stretching your budget gets even tougher. Our agents put in the time and legwork for you,. So saving on Auto Insurance is easy. Because saving a little extra goes a long way. Usaa. What youre made of, were made for. 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. Yesterday, eli lilly announced that its antibody Clinical Trial would be paused this, after Johnson Johnson announced their vaccine trial would be paused after an adverse reaction with a patient. Were still awaiting details on both joining us now, from Hackensack University medical ospital, also the first patient to receive the vaccine from moderna. When did you first take the vaccine and did you have any side effects i was the first volunteer last year. September 28th was my first injection, and then about ten days ago, i received my second injection. I feel fine. I did not have any, i believe, adverse effects and i dont know what i received, whether i received the placebo or the actual vaccine of course, i hope i received the vaccine, but i dont know. Are you nervous when you see these reports about polls suggesting the population are less inclined to take the vaccine than they were even months ago yeah. That doesnt surprise me people are afraid to participate or even to get a vaccine when a vaccine comes out. And what i will say to them is there always are some risks. There are risks with the influenza vaccine but we have to put everything into proportion our agencies are doing what theyre supposed to do theyre monitoring for a severe, adverse events we see two trials that have been stopped because of possible events and i think the safeguards are there. And i will say that, sure, be worried, be concerned, but dont be afraid. Dont be afraid to take the vaccine. So, your hospital network, new jerseys largest, 17 hospitals, has been in the eye of the storm as we understand it, youve had to convert the cafeteria into a covid unit, have been on the front lines of this thing for a while and are doing trials for regeneron and therapeutics whats your thoughts as we head into a second wave, how prepared we are, from treatments to techniques and everything thats been learned our system took care of over 13,000 patients since everything started in march with the first patient coming to Hackensack University medical center. Over that time, our clinicians, our physicians, our nurses, our pharmacists have really learned what therapeutics to use very early on, our clinical investigators developed a covid19 research steering committee, and we were very early participants in a number of trials. We worked with remdesivir, of course we were part of the mayo study for convalescent serum and our own physicians developed, investigated, initiated trials using supercharged convalescent serum. As we head into the second wave, our teams have advised us to develop some new trials. We are part of the regeneron Monoclonal Antibody trials were looking for new ways to treat this disease. Thank you for joining us. Thank you. Going back to 1987 when my dad sat down with president ial candidate joe biden. His take then on taxes and the budget deficit, and more ian teieth h ner been seen before. Were back in a couple of minutes. Ok, just keep coloring there. And sweetie can you just be. Gentle with the pens. Okey. Okey. I know. Gentle. Gentle new projects means new project managers. You need to hire. I need indeed. Indeed you do. The moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. Claim your seventy five dollar credit, when you post your first job at indeed. Com home. Joy stoc stocks closing lower for the okg w. Day in a ro loinahead to toms session what every investor needs to know, next you cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. A twohour interview with Vice President ial nominee joe biden would be hard to come by nowadays but this one was from the last time he ran for president and then with drew i dont think any candidate, democrat or otherwise can deal with a budget deficit without by saying under no circumstances can there be taxes because in order to increase it enough to really impact on a deficit, you would in fact cause a reception in my view and to impact on it marginally would just raise further suspicion about the democratic partys willingness ability to manage the Party Without benefit. But i think a president has to look and should never foreswear there wont be circumstances where they need new revenues but more important than new revenues and budget cuts is macroeconomic problems, third world debt, they impact more on our ability to get the economy under way than any 5 billion tax increase or 10 billion spending increase. You can hear more about that interview with the frost tapes podcast. I am getting a History Lesson listening to it. You have always pointed out the parallels between then and now, but on this discussion of the deficit it is there as well. The theme is unbelievably similar. I was only two when this happened the deficit then was 155 billion, or 3 of gdp, the stuff of dreams in todays terms, today its estimated to be 3. 7 trillion or 18 gdp. Today we are likely to end the year at 136 gdp different scale but similar feel we had just gone through this period towards the end of an expansion and the deficits were constant although Interest Rates were higher so in theory the interest burden seemed more scary than it perhaps did then this was when biden was gearing up to run for the democratic nomination in 88 which he did for a little while we have changed the magnitude, but the conversation is the same, whether we can afford this level of deficit and whats the best way to attack and whether the democrats are at risk on not being credible. The other thing that stands out is how young he looks and sounds and how long he has wanted to be president. His energy, charisma definitely come across clearly if you listen to the full interview on the podcast it remains to be seen whether listeners welcome that difference or really notice the difference in a negative way, but thats one of the things that come across the full 45minute version of the best 45 minutes of the 2 hours is available on the podcast. Definitely download it today. Joy qui quick, what you are looking at tomorrow after two days of backtoback losses. Modest losses one thing hard not to notice is that stocks with reported earnings have not traded well. I am not sure if that will be a theme throughout the earnings season, but today and yesterday the market was unimpressed because investors believed everybody was going to beat the forecast by quite a bit. We are out of town. Thanks for watching. Fast money starts now. Im melissa lee tonight on fast we are going round two on the banks one of our traders says this is the best looking chart in all of the financial. That name straight ahead and fastly is down big why a tiktok takedown is to blame. We start off with an