The dow eyeing eight Straight Days of gains on growing optimism around u. S. china trade. Weworks rocky road to an initial Public Offering. And the democratic faceoff, warren, biden, sanders dominating the debate stage. Just what their plans could mean for your portfolio stocks are chasing history this morning the dow and the s p each within 1 of hitting record intraday highs. The blue chips in the midst of a sevenday win streak for First Time Since may of last year. You have signs of a health y consumer, Government Data shows retail sales up. 4 in august, double expectations. Core unchanged, looking for. 1 but july even after that upside surprise revised higher. Is this ever putting the pressure on jay . I think jay powell is uniquely faced with a difficult decision. You posted some stuff the other day about you raised rates and the economy is not being hurt so why should we just want to cut them i continue to say he raised rates too much and i want i want to go for the full on 3 on employment, get those people who have davis always talked about, not part of the workforce in the workforce this is going to make it very hard for jay powell not to be more of a bone head than you got cpi had a two handle for 18 months. Highest now in a decade. Were waiting for core pce to ratify thats the thing people are saying as long as core pce remains more tepid, maybe hes got a box in which he can fit a rate cut. Retail sales are strong. What he has to do, the situation is say, all right, if this you can keep using the trade war. Keep blaming it on trump at this trade war continues, things the friction gets bad, this will we got to cut because of what the president is doing. That would be an thats what i would advise him if he were here right now lets say he were a guest now. We had john legend who are other guys many. Spencer rascroft. Wow spencer moved on hes still here. Stock has been a tough one i would say, jay, look, giving you a chance to lower because the trade war has not let up i dont think that were really that close to any sort of deal. You raise a group, u. S. China headed to a mini deal. Mini deal that report yesterday of the interim deal, quickly swatted down. I dont think there is a deal i think that is an opportunity for jay to blame the president not directly. And say, hey, listen, we have to do this preemptively oh, my this is i would it is probably gut wrenching hes watching the show now and thinking, do i really take the president on, do i say that. I want to remain independent he called me a bone head i really i dont think hes used to being called a bone head i had no idea i wonder sometimes whether hes, like, why did i take this job . You wonder sometimes . Yeah, sometimes. Sometimes at night i wake up, i think, geez in switzerland, said no regrets. No regrets. I dont think theyll come out and say i love being called a bone head. I dont care. It is a very difficult position forgetting even the constant pressure from the president. It would be difficult anyway. It is tough the other guy draghi yesterday, wants to take rates, china, he wants to take them all the way down meantime, nothing happens because they just want to sell bmws and volkswagens to china. China is the worlds trading partner. We let that happen, right . And then last night we have a debate and the debate, people bashing china, nobody likes china. Nobody likes china. Nobody likes china. China syndrome is not china syndrome. Michael douglas i think lemon might have been in that too. So great. So underrated. If they do get 25 basis points next week, were going to report highs yes, bingo. Period, right i. I hope we come in a little bit. Trimmed the price target. Double down hes talking about an accounting issue that doesnt really affect the company, but im taking my price tag see where the price target is . I dont know if it is in the hundreds. From 187 to 165. Thats great. Where is the stock 187 . No look at it it is 220. This guy disqualifies himself. Hes been skeptical for a long time. Yeah. Had him on yesterday, or the day before. Even wilf would say acceptable i find it unnewsworthy i checked in with apple. I know that david is very, very skeptical of apple tv. Disney gets big credit bob iger with the checked shirt, he gets big credit they dont talk about how much money he has to spend. The stock went up 35 points. Yes theyre so different. What . Well, i mean, the amount of apple programming that theyre going to have on the service could fit into one little tiny part of disney plus. They could buy they could buy they could buy viacom and cbs. They could. Without a doubt they get the nfl. They have not shown an interest in doing that, certainly not at the tim cook level. I can remember when i was hearing they were interested in time warner. There were bewkes went it a dinner with tim cook thinking years ago, thinking cook would come to the table and they would talk about him buying warner no interest. What is the thats very difficult thats at apple, at apple. Thats like, isnt that didnt the president call his is that tim apples brother . Not johnny. Whatever, well get to his name. He thought that it might have interest, but there has never been interest among by your friend tim cook. Your friend rod hall, rod hall, wasnt he a hockey player . I got to tell you, hes your guy. Dont worry about it you dont have to worry about it he agrees with you you dont have to worry. Nothing to do with that. Hes killing apple stock. Youre thinking of thank you head of he might have had that wasnt that hard to figure out brought bewkes and cook together and what do you think of bewkes great american. Thank you. Youre welcome. So is adam newman lets talk about the ipo market. Yesterday, that fail on smile direct was fairly significant. Not just for investors who bought into the ipo there and watched it decline markedly. This is a growth company, smile direct, not a lot of rounds of outside capital were raised, three large investors. So you didnt have anybody out there hedging it and creating a short in the name. The way we saw with lyft that occurred and happened in some other names. And yet it still went down priced not that much above the public comps still, collapsed in its public debut. Why . Maybe in part because growth managers as we have been discussing, sort of underlying movement we have been seeing in the market of late into value away from growth and momentum stocks, maybe the growth managers said they would be there for a lot of allocation, but really werent or afraid to, dont have the capacity to so this is set a tone in the ipo market to which the company is going to come. We have some important governance changes from the company overnight. We know that the company will be listing on the nasdaq. The government changes, theyre going to appoint an independent director the voting power of the high vote stock will sunset automatically and decrease to one vote per share in the event that adam newman becomes incapacitated, they went on and on take a look, pages 13 to 14 in the amended s1 filed last night if youre interested all of this designed to deal with concerns among the Investor Base that said, it is still going to be very interesting to see where when this thing gets priced, where there is demand. Initially we thought perhaps as low as 20. Then 18. Now im hearing 15 or below. Priceline. This thing could come by the way, they still would at 10 to 12 billion. Thats going to be so interesting if they get down to a level like that when you consider that softbank has invested 10. 5 billion in this company and could have a market value that is not that much above it once it goes public they need to raise 3 billion in some fashion in equity, in the Public Markets or if mass a want to write them a check again. All of the interrelated relationships. Ubs, jpmorgan and Credit Suisse have all underwriters here, of course, have provided a line of credit up to half a billion dollars to mr. Newman. 380 million of that was outstanding as of the end of july hes also borrowed 97. 5 million from Jpmorgan Bank mortgages and the like and jpmorgan and Goldman Sachs put a lot of clients in earlier rounds in this thing so there is so much going around on the wework ipo that is fascinating. So interesting to see where they finally come but they still remain determined despite what was a terrible performance yesterday for smile direct, which also may have impact on peloton and others. Smile direct was one of the worst deals in a decade. Maybe the worst in a decade. The pricing was completely wrong. There was no demand. How much money is out there for the yields if wework we have seen the last time i go in here 13 times over subscribe and it is going to be forget that conversation doesnt ever mean anything. What about pricing above the range. Does that mean anything anymore . No. I was aghast i said yesterday, i didnt like smile direct i didnt understand the pricing. I follow a line. Invisalign not doing well. The stock has been terrible a lost competition coming around 3m trying to get in that everything i hear about wework is unless this deal is priced through the floor, it is going to hurt the stock market you know what, some are also saying it is a good reflection on the stock market there has been such resistance to a company with the governance they once had, though they are changing it. And to the vote and to all the different thins that have been a part of versus snap. Now people talking to me about maybe 10 to 12 billion. Thats unbelievable periodically goldman High Net Worth person has to take a loss. I think they will come, even if it is that number, and theyll be happy to get public and then theyll hopefully feel like they priced it correctly and mr. Newman will be able to let me ask you, david i always felt the one thing that never happens is the desk says this could be bad for a lot of stocks we got to price this right they try to please newman. I think at this point if they get that thing public, theyll be pleased they need to raise the three to get the six, need the capital. I struggle to recall it ends up being a game of chicken with massa, all right, we need 3 billion, are you going to write us another check or were going. It is a Rebel Without a cause situation. Ipo without a cause. The market doesnt want it the market says i dont want that deal. Yeah. From the s1 on it has been nothing but drama in the last several weeks. Well Pay Attention to that story. Check out our podcast, now can listen to us, the opening bell hour of squawk on the street at cnbc. Com podcasts or wherever you catch podcasts when we come back, cramers mad dash, were going for eight straight up on the dow for the first time in more than a year back in a moment what do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. Classical Music playing throughout mad dash this morning, focus on broadcom. Not particularly sanguine on the macro economy. Exactly. But at the same time saying things exactly thats hawk tan, regarded as being a very smart guy when it comes to the cycle you have to parse his words. What he was saying versus say the last time i heard is that, look, were closer to a bottom if not at the bottom now, this stock, by the way, had a good run and we also know, david, they have been moving into diversifying. Bought ca. They said buy. I said buy. I believe in hawk tan. I think theyll turn around symantec a lot of guys in the crowd strike end of the world, z scaler, they dont know what to do you can cut costs. But i like the call to buy i like the call to buy because if we are really bottoming, and hawk tan doesnt do this, this is an inexpensive stock that generates a huge amount of cash flow short conference call. People want to take a listen. Apple is very important customer still it is huge. They never mentioned it. Those are the rules. It is like fight club. You know apple and fight club, and, by the way, tim cook understands entertainment. Apple and fight club and i look at that, david we did a it is not a head and shoulders. It isnt . No. I have Procter Gamble next week. Well done delivering alpha. Delivering alpha, yes. A lot they turned that company around i just think this is one take the time out, understand that after a few lets say even hours this could turn around okay. All right. Hawk tan is so good they buy a lot of Companies Cut a lot of costs. Hes a humble man. I would love him to come back on he has not come back on since that appearance. Since the fight, since the fight. Hes a good man well keep an eye on shares of broadcom. Another company dumping into the Public Markets today, cloud fare, were going to bring you the first trade. Well talk with the cofounders of that company. Here is another look at futures, of course. We get started with trading, last trading day of the week, it is friday, ten minutes from now. You see we are looking for a slightly higher open we think you would really shine in the aflac program. Aflac coach saban we have Health Insurance. Did Health Insurance pay for everything . No, we still have bills. Aflac gives you money directly to help with those. Aflac and your deductibles, knee brace, whatever you choose. Aflac sounds like a winner. Umhum. Umhum. We try. Get help with expenses Health Insurance doesnt cover. Get to know us at. 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Very different from smile direct, which turned out to be the company that people are they were hyped on something that is really a very competitive area this is this is a fractured market, not traditional cybersecurity, where we got symantec going against crowd strike, which is going against vm ware. So maybe this one works and we forget about what happened yesterday. Do you think it was a oneoff yesterday . Not if they bring not if they bring newman. What about peloton . That cant be easy. That will be difficult. You get this whole worry about others who are they claim theyre a sass company. Everyone is sassy. Only real sassy guy is jassy hes a hitter. Yeah. Last night, if you missed it, third democratic debate, also in focus today. Ten candidates squaring off in the race for the white house healthcare was one of the dominant topics last night senator warren in a push for universal healthcare took aim at Insurance Companies. Take a listen. Insurance Companies Last year sucked 23 billion in profits out of the system. How did they make that money every one of those 23 billion was made by an Insurance Company saying no to your healthcare coverage. So we talked about warren this week, jim. One of the reasons i like United Health and cvs, they sucked 23 billion once again, she has the numbers right. The number seems low to me. If you add unh maybe she didnt use centene managed Care Companies you have United Health, the centene, anthem. I dont know if she counted all of them. I think they sucked more out of the system i think theyre not nearly as bad as she does. It is very true that she, i felt, met her match on this. With president obama, with Vice President biden who is very articulate about obama care. And just that the republicans were willing to work to get a little tinkering than work centene on medicaid. Areas where there is incentives to write where they arent right now. I thought that Vice President biden was very expelling on the idea we dont need we need better Health Insurance, not one not single payer. So watch the Health Insurance companies go up because of how well biden did last night. Google had data overnight healthcare over guns, over trade, over trillion dollar deficits now healthcare number one. Speaker pelosi would like to not make this the centerpiece. And Speaker Pelosi behind the scenes is as powerful as ever. I think that people have to accept the fact that these candidates may want to bring it up but the house doesnt. They can avoid it. Healthcare. Dont w