60,000 new cases in a single day for the first time oil is holding 40, gold topping 1800 for the First Time Since 2011 david, it was a quiet calendar already going into this week, but it does seem like today in terms of looking for inputs traders are really on their own this morning they are. I mean, you know, the only calendar, carl, that really seems to be getting busy and staying busy is the ipo calendar which we should mention as well just because it is some sort of reflection of demand in certain parts of this market the latest of course Rocket Mortgage, thats going to be an enormous ipo, we can talk a bit about that later if you want other than that not that much to key off of clearly, mike, this is not a market that seems to be particularly concerned in terms of keying off of the rising cases of covid that were seeing around the country and the reversal of reopenings, the slowdown in business, certainly in travel, leisure, restaurants, that is resulting from the rising caseload. There is no particular number that comes out that is reacted to in a dramatic way, there is no sense of urgency around it, except it is incrementally, i think, theres wear and tear and you can see it if you look below the surface of the market. Thats why, you know, the financials and the cyclical stocks and the real kind of traditional consumer plays are struggling industrials are struggling versus things like semiconductors and anything digital. So maybe you could see in the way the market is differentiating among perceived winners and losers the fact that its a long slog, it seems to be the implied message of the markets for most of the economy. As to whether it would be the kind of thing thats going to reach a threshold level thats going to take the entire market by surprise and drop it, its not evident just now, it does seem more like a selective market with a lot of push pull inside of it, its kind of trapped in a little bit of a trading range right now. Yesterday market just kind of got weighed down in the afternoon as treasury yields refused to get out of their own way, they went down a little more and that means Growth Stocks can work but the rest of it just kind of gave way, carl. Yeah, to c ashin says we might be at an important junction this morning. Theres some concern he says that the bulls failed to seize the initiative after those few sessions where it did seem like cyclicals were going to get back on board we had freeport with a solid pre announce the other morning, this morning its alcoa with an upside q2 announcement there is ammunition there, just a question of whether or not they are going to put it in the barrel. The bears lost their opportunity, too, a little while back, the market refused to go below 3,000 on the s p 500 you mentioned alcoa and freeport, look at the price of copper, its been outperforming gold so the rest of the world to the extent that things like china are getting back to work, maybe thats got certain influences on parts of our market and some companies, but it is true, though, that in general there hasnt been this broad impetus to say now that weve come to this level all of a sudden were going to start buying the stuff thats going to do well in a better economy i dont think theres a real edge in terms of deciding which way the next few percent is except that, you know, to arts point, the market did shuttle back to the upper end of this range and waiting for the next thing thats going to capture its attention. David, on the bankruptcy front stories last night about amc trying to work out a deal to avoid that fate. This morning its Brooks Brothers and reports about acina, the ann taylor parent, but clearly the circles of concern around retail and travel are going to remain. Without a doubt listen, these are the areas that have been a concern from the beginning, unfortunately the economy has not been able to fully reopen, those companies that were on the cusp or did have a good amount of leverage, many of them retailers, many of them the previous subject of a leverage buyout which added debt to their Balance Sheets have already to some extent filed, whether its a Niemann Marcus or a j. Crew. Brook brothers we have had the ceo on a number of times, again, not perhaps a surprise there as well unfortunate though it is. This has accelerated a trend weve said it so many times that we may have seen the outcome of in three, four, five years in the space of months. But retail was already under pressure the continued focus you dont out, mike, i can look at the Broader Market and say its not reacting, but of course within that as you say there certainly is a reaction in some areas and reads is another one we will continue to watch as a result of how the malls will do. We were talking for years about the slow decline of the mall, so to speak the question is whether that has been truly and fully accelerated. One would expect that to be the case when you lose anchor tenants or when they go bankrupt, restructure and close stores because of that. Theres a lot of sense in here that were waiting for some critical break, maybe in some of these sectors. I think people complain about the extreme concentration of the u. S. Market and five stocks are well over 20 of the s p 500 turn that upside down and all the stuff that really looks like trouble points are actually very much underrepresented in terms of the market value. Traditional retail, outside the super stores, its pretty trivial. You cant find anything bigger than a mid cap in mall stores or anything like that even real estate, not something that moves the overall market and also kind of is going to move with bonds to some degree, too. Its in a weird way one of the things that people believe is the big risk is this hyper concentration of the market, its also insulating it from a lot of these macro influencers, carl you know, mike, speaking of debt, b of a has an interesting note out this morning in which they basically argue what theyre calling bond tourists are going to leave by the end of the year, they say they may be unloading as much as 200 billion of high grade Investment Grade securities over the rest of the year. Thats been met with skepticism from others where are they going to go. Right. Clearly if ig were to lose interest on the margin that wouldnt be necessarily constructive. It would not be constructive. If really high grade corporate debt gets repriced and those yields go higher i think thats probably thats like your Desert Island indicator for me in terms of where the equity markets are valued the fact that you have Investment Grade yields under 2. 5 , you have all these Balance Sheets that got refreshed or to some degree on some in some instances weighed down by new debt that baled them out of a pickle, i do think that that would be a significant thing, but it remains to be seen whether there will be any kind of a flight out there because the overall story is the scarcity of reliable yield and reliable cash flows in the world, thats what is Holding Things together in the Capital Markets right now. Its hard for me to know, as you he say, where things would go, where they would go, carl. David, i cant imagine you disagree with that. No. I cant. And i dont at this point. You know, again, the one thing that we continue to come back to in terms of activity has been of course debt and equity Capital Markets, we are talking about it right now, the ability of companies to raise billions of dollars in debt and through the equity markets i mentioned this Rocket Mortgages, guys, dan gilbert of course we know well, frequent guest on squawk box through the years, committed himself to trying to rebuild the city of detro detroit. This will be a boost for them as well ive been surprised i think some are by the willingness of Market Participants to flock so some of these ipos and these companies to come back to market over the last few months. Warner music, Royalty Pharma, i mean, you could go on through a number of names, albertsons didnt go that well, but these are large deals. Looking through this s1 this morning and i can tell you as well they only put 100 million in there but this Rocket Mortgage which owns quicken loans, going to be 4 to 6 billion dollars of offering. It will be the largest ipo of the year it could come as soon as the end of the month of july and it would have an over 50 roughly lets call it 50 billion market value. So these are not insignificant companies were talking about here dan gilbert is going to be even wealthier given he owns a majority of that, 79 vote when the company does come public, he would still control the vote and a lot of the economics there but, mike, the the resurgence and the agility or, you know, of the ipo market has been somewhat surprising, i think, in this current environment. Yeah, and even existing ipos over the last couple years they have done very well as a group i think, you know, money managers, individual investors, definitely still have an appetite for the differentiated idea, the idea of, you know, a better mousetrap for Something Like quicken loans, obviously thats a thriving piece of the economy, as mortgages if they seem to, you know, have a more efficient way of delivering those things, right, its kind of it is not a brick and mortar play, so to speak into no. You can see where it would play right now the way the market is set up, too, its interesting, is kind of new buzzy ideas get overcapitalized instantly and stuff thats tried and true and you have, you know, the high dividend yield stuff, whatever it is just gets left aside because there is no perceived longterm durability to that story. So very bifurcated situation, guys. Yeah, we have had a mix between Dun Bradstreet and albertsons and lemonade and maybe rocket in the days to come guys, covid is the other big story, obviously we mentioned u. S. Cases now topping 3 million for the first time lets get to our meg tirrell for an update on everything we know so far today. Carl, we are seeing higher case numbers after some depressed numbers coming o out of the holiday weekend, they are on the rise, ever core isi reporting 52,000 new daily cases reported by states in the u. S. Yesterday. If you look at Johns Hopkins numbers they put new daily cases in the u. S. Over 60,000. Of course, that is a new record. The test positive rate has also been increasing now at 8. 4 according to ever core isi the differences in some of these numbers can be attributed to the fact that Johns Hopkins pulls from county level data, especially Los Angeles County reported 4,000 new cases yesterday, whereas the state only recorded 1,000 of those we are going to see a bigger number tomorrow. In terms of single new daily case highs, five states reaching new records including texas, idaho, montana, missouri and oklahoma texas recording more than 10,000 new daily cases, florida there also more than 7,000 and california more than 6,000 although if you factor in those l. A. County cases more than 9,500 yesterday from california, guys the hot spots are starting to be spread out a little bit. South carolina representing two of the Fastest Growing areas in the country right now, charleston at number one and myrtle beach at number four. Mcallen, texas, also now making that top five list jacksonville, florida, still on there and orlando as well. Most of the big slow downs still in the northeast, guys some concerning news to point to in arizona they recorded a Record Number of daily new deaths yesterday at 117. Guys, arizona of course was one of the earlier areas where we started to see these concerning case counts rising and now the death trend there rising as well you see this in texas and florida where hospitalizations have also been spiking so we are starting to see these numbers catch up to the case growth guys maybe with more of a lag than some expected, meg, but deaths and hospitalizations we will pay more attention to in the coming days talk to you soon meg tirrell joining us on covid this morning. We will take a quick break futures have been in a pretty tight range all morning long upgrades of caterpillar and kohls today along with a downgrade of american express. We are back aine. In mut come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Save without even weleaving your house. G a way to keep on pushing. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Civil rights and activist groups meeting with facebook on tuesday called the meeting, quote, disappointing guys, we got statements from the naacp, color of change, david, the Antidefamation League which was just on with joe kernen a moment ago on squawk, mike, calling it basically a pr exercise im not sure how High Expectations were going into the meeting, though. No, i dont know about expectations going in in terms of, you know, in terms of business changing, anything that was going to be durable, what facebook might say that was different from what it already has been saying. You know, and the market is i think its, you know, watching but not panicking over this. Estimates are down 20 its not as if people think there is no impact from the macro situation on advertising on facebook and its underperformed on a oneyear bases most of the faang and mega cap tech stocks. Its not necessarily that people believe anything going on has been a game changer for the companys Business Model from here, david. No. Thats the yeah, it doesnt appear to be a game changer. Weve made the point of course, listen, these large brands are wellknown advertisers, not insignificant, butter there are 8 million of them on the facebook platform. A lot of it is direct response and for a lot of advertisers the return on invested capital is extraordinarily high, far higher than they find on other places so it continues to be a question to whether they are not going to go away and that seems to be the expectation at least for the investors who are unafraid at least as to what is going on right now. But, carl, it was interesting to listen to john from the adl talk to joe and said right now i can find any number of hate groups, any number of militia groups that want to overthrow the u. S. Government on the platform despite the fact that facebook tells us theyre banning such groups yeah, and i was just taking stock of the moves that the company has made over the last few weeks, guys. They have agreed to this audit obviously which weve talked about a lot in terms of how they monitor and handle hate speech they have banned boogaloo, theyre going to try to register 4 Million People to vote this week, mike, the news was about no longer giving user data to hong kong Law Enforcement its not as if they are absolutely standing still. I guess the question is how theyre going to meet some of these groups in the middle with the caveat that as a revenue impact its going to be diminim diminimus. It does seem that the Company Continues to be reactive, ad hoc, its discretionary how its going about it as opposed to systematic, as opposed to trying to in a very broadway filter certain types of content the company says, look, it doesnt really prefer to have a lot of the objectionable content on the site because, you know, advertisers tend not to want to interact very much with that anyway its not necessarily kind of fueling a desire, it seems, by the company to really change the fundamental Business Practices to try to maybe keep it away in a more rigorous way. We will watch the action today. Of course, coming off that all time high yesterday. Take a quick break here on this wednesday morning. More squawk on the street continues in just a colef mite nus. Up o hey lily from at t here. With some helpful tips. Tip 1 you can currently get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. In a highlyconnected lexus vehicle at the golden opportunity sales event. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. Experience amazing i am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Here is a tweet from the president a day after pressuring schools to reopen in the fall he says in germany, denmark, norway, sweden an many other countries schools are open with no problems. The dems think it will be bad for them politically if u. S. Schools open before the november election, but it is important for the children and families, may cut off funding if not open. Talk more about that after a break. Back in a minute announcer the opening bell is brought to you by nuveen. A leader in income, alternatives and responsible investing. Welcome back taking stock of what the president just said, david, about reopening schools in the fall and threatening to cut off funding if they dont. We did get that meeting yesterday at the white house about just that, National EducationAssociation Later put out a statement saying that there was no clear message nationally on schools and that the administration had no credibili