Usmca, china, theres a lot in the mix today. There sure is as we start squawk alley. Glad to join you carl and deirdra bow is a also with us this morning major indexes still higher, though the dows best performer over the last quarter was apple so, we can continue to watch that stock as well its been interesting, deirdra, to see this move in apple over time thats where were going to start. The dows best performer again over the last quarter. In the midst of this platform shift right now, we have to see whether they can continue this momentum as we head into a Holiday Season where the headlines are questionable whether theyll be able to churn out enough of the 5g iphone based on production delays that theyve encountered in the midst of the coronavirus absolutely. And its not just apple, right, guys tech had a big quarter at large. Youve seen them lead the way once again, although alphabet little underperforming so youre starting to see more breadth in this market one of the major questions as we head into the second half of the year is will it continue to be big tech leading the way, or will we see other sectors continue to add on to gains . Carl, this morning as im looking at the tech stocks that have some of the biggest position in the market just in terms of market cap and thinking about how theyre performing during this, its kind of a mixed picture, i guess, as you would expect right now but we are going to talk more about apple. The largest, one of the largest certainly, individual shareholders in apple is ryan cohen, he is the cofounder, former ceo of chewy. And he joins us now. Ryan, great to see you now, put me straight here. Did you kind of sell your stake in chewy when you sold chewy to petsmart or did you sell out of a stake in chewy when chewy went public . We sold the company to petsmart in 2017 so before the company went public we were running a dual track process, but ultimately we sold the business to petsmart. And you used the proceeds to buy apple and wells fargo, i believe. One good bet there and the other one not as good. What has been your sense of apples performance during this difficult time for the market . What do you think is the most important thing for that company in particular to focus on . I think apple is the Strongest Company in the world the most Profitable Company in the country. The business requires virtual no capital to grow. Earning 50 returns on tangible equity people are glued to the products usage is growing over time its totally changed our lives its changed the way we shop its changed the way we bank, the way we read the news, play games, trade stocks, make travel arrangements its truly the tech enabler. And its whats enabled most consumer businesses to connect with their customers especially during this health crisis. I consider it the king of the jungle and they have a very sticky ecosystem as far as im concerned Everything Else is just an app apple is truly king. One way to look at this, though, part of your history as an entrepreneur that was staring down platform kings like apple amazon, for example, wants to move into the pet food selling space. They have been doing that. One could take your excitement about apple as evidence that, boy, if even ryan isnt betting on the underdogs here, why should anybody else. What do you say to that . In terms of betting on competitor, on which competitor specifically well, im talking about these tech platforms i would count apple as one with its powerful app stores, apps, iphone and amazon with the logistics Cloud Infrastructure its built and facebook and social, google in search and cloud as well there are some powerful platforms as well and smaller challenges, the likes of chewy would like to argue theyre going to grow faster than the big platforms are. But youre not betting on the small guys trying to grow. In this case at least youre betting on a big platform. So why should investors bet on the little guys . Its really i mean, it really comes down to the price you know, when i look at Something Like apple, i see a company thats trading 20 something times earnings relative to Interest Rates now the 10year treasury is at 60 or 70 bases points so thats essentially 160 or something times earnings so youve got a company thats buying back a lot of stock its trading at a reasonable valuation. Theyre returning a ton of cash to shareholders. And so i like the price. I would look at anything at the right price, but when i look at valuations, Smaller Companies the valuations just arent as nearly attractive going and investing in a Large Company like apple now, ryan, at a time when were seeing so many new Retail Investors get into the markets now, your advice to them is dont pay fees choose a lowCost Index Fund but at the same time, you also say youve never been one to diversify and when you find something that you like you go all in, as you have with apple and wells fargo. What advice would you give to some of the newer investors in this market about going all in in one or two stocks i know a few of them. That wouldnt be my advice to the ordinary investor. The ordinary investor you can buy low Cost Index Fund that attracts the s p its virtually free. And youll do very well over time i personally and like to go all in when i find things that i like, im patient but when i find something i believe in, i make really concentrated bets thats why i was successful with chewy. I put all my time and money into chewy. When i find something that gets me excited, i like to swing for the fences but, i wouldnt recommend that for the average investor in terms of having the temperament to deal with the volatility. I guess thats kind of the adrenaline that comes with being an entrepreneur. No doubt about that im curious on apple, weve got an couple different headlines this week that suggest theyre under some pressure in terms of 5g iphone production as the suppliers have been impacted by shutdowns. Just broadly, when you think of the company and you mention the sticky ecosystem, how much of your buy thesis remains about unit sales just brand new phone sales in an environment where obviously manufacturing is tough yeah. I mean, im really less focussed on the next product release. Obviously want all their products to be a hit, but i would say longterm the rel power of the franchise will be dependent on usage i think earnings over time will attract usage. We have seen that already through a lot of product refresh cycles, especially the most recent ones that the earnings are becoming much less cyclical over time. I think next year with 5g theyll grow double digit likely on top and bottom lines, but you look at wearables growing 30 year over year 30 of profits now this is a company thats gone from in 2012650 in earnings to double today so theyre doing everything right. But this is much more than a Hardware Company and you know, over time i would expect the vast majority of the profits to come from services and hardware to play much smaller part of the business. And ryan, finally, theres a lot of talk about diversity these days and its impact on companies performance. I wonder as somebody who is an entrepreneur, investor in one of the Biggest Companies out there, how do you parse this . On the one hand i hear from a lot of entrepreneurs, just starting out, its hard to think about diversity. Its a matter of who you start the company with, who is around you, some people succeed in thinking about those things, some dont i think about a company like apple, some of the biggest innovation cycles its been through, its executive team wasnt very diverse. So while a lot of these companies talk about the need for diversity, im not sure that their actual history bears that out. How do you think about it, both as an entrepreneur and someone investing in companies, how important is it . Yeah. We had a very diverse Management Team at chewy, over 50 or something of our executive team was women. We really look for the best person for the job and thats really the way that i think about the business and so, thats how we built the company. All right ryan cohen, one of the largest if not the largest individual apple shareholders and cofounder of chewy. Thanks for being with us. Thank you thank you. Phil lebeau brought us gm sales a moment ago now its time for toigt. Hey, phil. We only have the june numbers. The june Sales Numbers for toyota down 26. 7 . That was weaker than the edmunds estimate of decline of 20. 9 a little later on today we will get the full sales rate for the Second Quarter see where that comes in. Also i want to show you this, earlier today, tesla passed up toyota to become the worlds most valuable auto maker with a market cap of 209 billion so again, tesla, just ten years old, as a publicly traded company, it has surpassed toyota in terms of market cap and is the worlds most valuable company. Dont forget, were likely getting tesla q2 deliveries some time tomorrow, if not shortly after that deirdra, back to you yep, incredible milestone, phil we look forward to those numbers. Thank you. Still to come on the show, down on brad street set to go public the ceo will join us immediately following the first trade. Big show is still ahead so dont awhe. Our next guest is driving diversity in investing with a genderbalanced Fund Investing model. West river groups michelle par joins us to talk about empowering the next generation of diverse leaders thanks for the time. Great to see you. Great thank you. Im glad to be here. Thanks for inviting me you know a lot of investors right now might be trying to figure out how can i incorporate my interest in helping promote diversity through a model that remains responsible to my own fiduciary goals. I wonder, how do you do that s it through numbers in targets or are you looking for softer inputs in terms of how you allocate that money . Frankly how we think about it is you really need to think about diversity overall. You need to think about Ethnic Diversity. You need to think about racial diversity. You need to think about gender diversity. And then you also need to think about diversity of thought as well as diversity of experience and how that all comes together. And frankly, if you do that right, and you really think about whos allocating the capital, those diverse teams, but also who is getting access to that capital, ideally you would be driving toward diverse entrepreneurs and founders as well as you take stock of the announcements weve gotten over the past month from very large companies, not just grants and initiatives but actually changing the way they allocate their cash, netflix was a good example from yesterday, does it feel to you like this is ephemeral or that well be seeing this trend extend into the end of the year, into the end of next year and beyond . Frankly we have to see change were at a place where clearly we have our pandemic, we also have everything thats happening with our modern civil rights movement, and theres actual Empirical Data that suggests that when you have diverse teams and when you are driving a diverse agenda, you will actually have outsized returns so theres mckenzie report from 2018 that shows that when you have genderbalanced teams youll see 21 more kind of above the average returns. And then when you have racially and ethnically diverse teams you see 33 above the average in returns. And so, its actually good for business its not just the right thing to do hey, rochelle, good morning its jon fortt one of my concerns about how were moving forward with this diversity conversation is its very popular for companies to say that they support diversity, but i dont hear a lot of their thinking about their philosophy on it. My concern Companies Might be saying that its popular but not really believe it. I think about Silicon Valley and the fact that if you look at the micro processer development, the development of the pc, the internet, the smart phone, a lot of the companies doing that did not have very diverse teams leading them at the time im not sure they would if they were to go back in a time machine they would change the makeup of those teams. So if the way they have operated and arguably continue to operate doesnt incorporate diversity at the highest level, do they believe what theyre saying . So, youre asking the right questions. And frankly it has to be from the top. It is the tone from the top. You have to have diversity at the board level. You have to have diversity across the Management Team and then that starts to filter through the organization you cant just give lip service to it. You have to actually walk the walk and you have to show it from the top down rochelle, how do you get diversity at the top especially in the earlier stages when companies are still building and raising money, covering tech from san francisco, a lot of the times i see that startups often only add diverse Board Members when they get closer to a certain size or closer to going public how do you encourage that earlier on yeah. You know, so theres companies that are actually trying to figure out how to do that the right way from the on set, but there is actually opportunity to think about what that board needs to look like think about mixing it up think about gender diversity think about racial diversity and actually creating the opportunity as early on as possible but the next level down is also important. Its who is sitting around on that management table. You actually need that innovation and creativity and those diverse experiences to drive toward the better conversations. You know, when you think about who youre serving, youre not serving only one community youre actually often serving everyone, which when you look at our population, it is diverse. And so, why wouldnt your executive team or your board actually look like the population youre serving . Thats actually how you should think about it one last question about your own experience i know youre on the board a couple wellknown Companies Including best buy when you find yourself in a group say on a board where you may be the only person of color, whats the best way to inform those other members of the board, lets say, that there need to be more of you yeah. So, its interesting my whole career and my whole life ive often been one of the only if not the only i have the privilege of serving on some really great boards who have actually paid attention to diversity. So when you look at the boards that im on, we have pretty good diversity, whether its Ethnic Diversity or gender diversity, but it is a conversation at the top we have to have a conversation we have to push on this with our teams. We have to push on this across the board and we have to push on it with our ceos i just happen to be fortunate enough to be on boards that actually have been thinking about this for some time and have done a great job. But theres a lot of boards out there that really need to change the makeup of the board if theyre going to actually drive longterm creative and innovative and smarter decisions moving forward. Yeah. Well, were definitely on the lookout to see if that change is real and enduring and hope youll come back and maybe talk some broader markets next time given your experience and a ton of investments thanks, richelle. Thank you appreciate it. European markets set to close in just a moment lets get over to see ma moe da for a breakdown. Hi, deirdra set to close higher on the first day of trade now trading in negative territory after posting their best quarterly performance since 2015 led by italy, france and greece which saw gains of 1 to 16 in the Second Quarter today in focus is that encouraging vaccine data from pfizer and its german partner biontech up nearly 14 in may from the previous month which suggests the reopening of germanys economy has spurred Consumer Spending this is the largest jump in sales since the country started recording this data back in 1994 some of the bright spots online up 29 driven by demand for food, retail and Household Appliances though demand for clothes and cosmetics fell lastly, cruise lines could be negatively impacted by the european ban on americans. Sun trust this morning points out that Norwegian Cruise Line has the most to lose as a majority of its customers fly from the u. S. To get to their european cruise. Carnival, though, could be partially buffered by its European Central brands that really indicator to that european traveler. Jon, back to you. Thank you. Coming up next, hes a founder of oculus. Paul luckey weighing in on wt ha comes next from Mark Zuckerberg. Were back in just two minutes i really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. To turning your new inspiration now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. If youve had the coronavirus, youve got a lot of fight in you. And youre in a special position to help us fight back. The plasma in your blood can literally save lives. But we need to act fast. Please donate plasma now. Please donate. Donate. Donate. Donate now. You fought for your life. Now lets take the fight to covid19. Go to the fight is in us dot org to find out how to donate. Good morning, everybody. Im sue herrera. Here is your cnbc news update at this hour. In new york city, the mta is deploying personal Protection Equipment vending machines at select subway stations as part of a Pilot Program there wi