That because there are a lot of people who just think if we can break through that then were going to be able to say when we get a vaccine its just going to be game, set, match for the bulls because we are already at this level without the vaccine i think that today is a confluence of goldman puts citi, wells fargo and jpmorgan in the rearview mirror. Its the old Goldman Sachs model. We have moderna talking up a blue streak this morning on squawk with meg making us feel like inject my left arm, please. We have the Goldman Sachs number that looks like the old days david faber, goldman reminds me of when i dont know, what, 18 years ago yeah. It is a report from goldman that is you can liken to sort of some of the earlier years of their dominance when they were only recently a public company, jim, or really lets not forget their record quarters were actually right at the end of the financial meltdown of 08, 09 remember the numbers they printed then but this is a very Strong Quarter for them listen, perhaps not that big a surprise, i know i say that weve sat here and talked about the incredible activity, recordsetting activity, in debt and Equity Capital markets and it doesnt take a genius to hear Goldman Sachs name and some of the offerings that are taking place. The trading always is harder to understand and gauge, jim, and they obviously did extraordinarily well there, so their fik numbers, their equity numbers, overall banking numbers very strong. M a my area as you know not very strong for what is still a powerhouse. David, do you know what they did on that fixed income index what. Wammajamma that means they move them around they take a vig and the vig is big and the risk is nil and thats what i liked about this quarter. Carl, of course, its a dow component so it is going to have an outsized impact on that statistically irrelevant index given it is price weighted not market cap weighted as we like to point put the dow will be up as a result of that. But, carl, yesterday we saw a decent number from jpmorgan and we saw the stock fade to some extent and we saw you know, what we thought decent numbers, again, from citi, not wells. But here the question i still think will be what about the Macro Economic environment, what does it say with the market up, but the ten year still sitting at. 64. Yeah. Thats been raised a couple times this morning, jim, whether or not what bonds are not getting. To davids point about goldman and macro, they do see 2020 gdp down 4. 6 but up 5. 8 next year which sort of is a number we would all take. Look, im torn here because i feel like that the when i go through jpmorgan, i go through citi, i go through wells what were they saying the future sun certain the future is murky, we dont know what the future s goldman gave you a boilerplate we dont know what the future is, but im looking at this number and the future is brighter than the past and it puts what i regard as being yesterdays gloom to rest. I want people i want to hear a Conference Call about a company that just says, we are we are awful, but were not going to stay awful. The wells fargo quarter, it was literally line by line we are very, very negative. When you contrast that with goldman, this market has no memory, carl i mean, now you start seeing what was wells fargo, stage coach, what was that we forgot what happened yesterday, the same way that pfizer had really good news about a vaccine and we forgot about that and here we are back again buying norweigian cruise because moderna. We had this moderna sold a lot of stock, maybe that was premature, that was illadvised, but we listened to the fella from moderna and he made me feel like, okay, this is over, lets move on to the next thing. David, what is the next thing . Oh, man, what is the next thing . I dont know i mean, once we are all vaccinated, david, what do we do we go to the mets . Sure. Sure why not . Lets go or, i mean, with he would even go into an arena i would feel much more comfortable going outdoors to watch sport a sporting event. I have to tell you, carl i dont think you know, jim, when do we really think we are going to be vaccinated thank you. Lets come back to that for a moment moderna, its good news, it oaks what we saw in the even earlier smaller number, this is still only 45, 48 people, Something Like that in the current trial, but when do we really think that there will be a vaccine available to us that we will be able to take that we know will be safe, that we know will be effective and that, therefore, will allow us to get back to normal life . Have you tried to enroll . No. I tried and my doctor said are you out of your mind you enroll in the third trial. You dont enroll in the first or the second and i think that thats indicative of the fact that there could be so many things wrong and, remember, it doesnt really work unless about 75 of the people take it now, when you go on twitter, you read about things, theres so much misinformation about vaccines, but we have had vaccines that have really hurt people and i dont believe that the fda, even this fda, is going to just just rubber stamp a vaccine. So, yeah, i think david is right, i think this is really about super bowl time. Its not about its not about world series time. It does bring to mind, jim, this comment that we got out of ken frazier yesterday, ceo of merck, about the pressure in his words for pharma to put a vaccine to use here is what he said what worries me the most is that the public is so hungry, its so desperate to go back to normalcy that theyre pushing us to move things faster and faster, but ultimately if youre going to use a vaccine in billions of people you better know what that vaccine does. Jim, what do we make of that . Ken frazier has been the voice of reason on this and almost all other times i remember there was another company that had a very aggressive anticancer platform, anticancer advertisement, bristolmyers and ken frazier had the better drug, keytruda, but he would never do that he would never say keytruda is this, this, this, because he never wanted to give anybody false hope i think he is the beacon i think he understands that false hope is the enemy of what we really need because it just creates whole family havoc so i like what he had to say i did not like moderna said, listen, we have to release this. We have to release this. Right. They dont have to release it, what is this there a federal rule we have to release . David, is there some rule that says we have to hype it after 50 days of course not. In the constitution must hype vaccine after what is that the 28th amendment you made the point that moderna is somewhat promotional as a company they come onrong questioning from meg tirrell and people can make their own decisions as to what theyre saying they are promotional, remember the stock sale as well that took place after another release of news that they didnt have to put out there into the marketplace perhaps. I would come back to merck and point out as i have many times they are more focused on the oral antivirals that they believe will be potentially effective. Eidd 2801 which ive talked about a bunch of times, roger pea pearlmutter, is certainly positive on that theyre having a different focus which may be one reason why mr. Frazier is saying the things that he is they are more focused on trying to get into the marketplace an oral antiviral that can be taken earlier if not even prophylactically, jim, that would also halt the progression of the virus very early in transmission. Thats regenerons goal, too. Right. You know, carl, the breadth of companies, i mean, you have to look far and wide to find a drug company thats not involved in this. And notice its an Election Year you dont hear people talking about outrageous prices of farm ma, but i will theres one document that i want to see. I want to see if anyone sold any stock at moderna today or tomorrow because that will really determine to me whether this thing has just got to be put a total asterisk if they sell stock, moderna, you dont have to sell just sit on it yep, there is a form 4s, jim, the ceo and cmo with insider sale, it seems like every time we get episodic data and its accompanied by some stock sale, whether its prearranged or not and dr. Zax did comment on what ken frazier said when he talked to squawk box this morning. Take a listen. I cant comment to his statement except to say i believe we have an ethical obligation to advance this vaccine as fast as possible given the unmet need on one hand and what science enables us to do on the other. It is incumbent on us to do this in a matter that is responsible, judicious and accounts for the emerging understanding of the safety profile and i think were doing that by ensuring that our phase three is a large phase three. We should point out, jim, also astrazeneca is on the cover of business week, theyre already doing 10,000 patient trials itv this morning with a piece that the lancet will have positive news on azn we only need one shot. Absolutely. Lancet was the first one that broke this, this is a little more opinion oriented. I know everyone has a view on new england journal of medicine, pretty straightforward, which is where the moderna news came. Lancet, i think, is a little more subjective. So i care a lot about astrazene astrazeneca. Again, i mean, astrazeneca, thats an also ran drug company, so to speak, but they are doing great things someone is going to solve this. Yes. And thats really the take away. And, jim, dont forget j j, they are right in there as well. Tomorrow. Not an insignificant company to say the least. And they have built factories and have emergent bio. People think there is a vile problem, no, honeywell is ready with vials with the new material theyve got. There is a gap there is this gap between when the nice things that jamie dimon talked about on this quarter, the unemployment benefits, ppp, when that runs out and when the vaccine is that is the gap that we have to be worried about how long yep. How long can we go with no stimulus and no vaccine. Yep especially with some key benefits set to expire in about ten days, jim, to your point. Yeah. When we come back, a lot of analyst calls to get to this morning, upgrades of hrly and wells, new street high on apple, downgrade of amex and chipotle hiring 10,000 employees. Back in a moment usaa is made for whats next no matter what challenges life throws at you, were always here to help with Fast Response and Great Service and it doesnt stop there were also here to help look ahead thats why were helping members catch up by spreading any missed usaa insurance payments over the next twelve months so you can keep more cash in your pockets for when it matters most and thats just one of the many ways were here to help the military Community Find out more at usaa. Com to help the military community our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Save without even leaving your house. 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. Those futures, empire looked pretty good, lets get Industrial Production as well with Rick Santelli hey, rick. Yes, carl, empire did look pretty good, Industrial Production should be coming out momentarily, its a june read. An old number Industrial Production goes back to 1919 and the lowest level was in april at minus 12. 53. This number coming in at up 5. 4 , up 5. 4 , that of course follows a 1. 4 at least up to this point is unrevised and 5. 4 actually is a nice number considering the expectations were for about 4 . Capacity utilization this number only goes back to 1967, 6 68. 6 this is coming off of 64 and change, that was the worst level ever going back to 1967. So we see that both these numbers are better than expected, as a matter of fact, pretty much all data is better than expected as of late whats going on . Well, lets look at intraday of ten year note yields, here they are hovering at 64. 5, they just were at 65 basis points they gave up a smidge of ground but whats interesting is you look at that intraday chart is to flip it to last friday when the intraday low was 56 basis points, 2 basis points above the all time low yield close for march which was 54 basis points. Even though it doesnt seem commensurate with the amount of horsepower stocks have displayed as of late it speaks volumes to the notion of trust with regard to the divergence between what many perceive is the strength of the economy versus the strength of the stock market. Why does that matter because the best hedge for that is to continue to pile into safe treadities like sovereigns, whether its the european sovereigns which of course are also safe or the u. S. Treasuries and you see that showing up in the form of lots of buying as of late the only maturity that seems somewhat insulated from that is the longest maturity, 30year bond lets look a two day of tens minus twos, yield curve. We were having bank earnings, much of the horsepower is from trading not necessarily from, you know, the interest spreads, but what you do see that this is getting back up towards 50 basis points finally the euro versus the dollar or the dollar index, both are having rather substantial moves, one week of the euro versus the dollar, basically 112. 5 to 113. 5 it could be the best close since early 2019, carl, jim, david, back to you. Okay, rick. See you later, Rick Santelli we want to touch on apple as well major victory against the eu as europes Second Highest Court rejects an eu order to pay 15 pll in irish back taxes even as need ham goes to 450 that matches a street high today. There is a higher court, you have to believe that they will prosecute this this is a big win for apple. What i like more about a. M. Is this needham note starts finally talking about the lifetime value of an apple customer you have macs, ipads, watches, air pods maybe unique users are 2,000. What that says to you is this run is really the beginning of what is a Service Company which is much stickier than an actual phone company. So the old days when tony saganeggi would say the best days are behind apple, of course, that was 100, 200, i know hes trying to keep it up at 400 but he wont be able to what it says is Service Company based on a device and, yes, david, you know what that is in the old days before dollar shave, before harrys, before the plastic that you couldnt open at cvs i know what it is, its a razor, razor blade business. There you go. David, you you its because of jeopardy, right. I know your punch lines how many years have we been doing this show . Even from distance at least i can look at you and actually see you over there jim, the assent of apple has been one of the features this have covid market as well. 1. 7 trillion market cap only a couple days ago, backed off ever so slightly, still up 32 . You continue to be very positive on the future of the company you one thing we havent talked about that much is its so important to apple we know whats going on in hong kong, the sanctions, its going to be a while before the sanctions take effect in terms of banks in hong kong, u. S. And or any banks, but this is not getting any better this is only going in one direction and that would seem to be a risk for apple given how important china is to its business. Youre right. I dont want to im so excited about them moving in india and how great the new cycle, the 5g cycle is, but youre absolutely right, david its not saber rattling anymore. This is just pure 1947 cold war behavior and i think we cannot overlook the fact that there is a major deal coming between china and iran and that is not going to sit well with the Peter Navarros of the world peter bend an interesting use in usa today, i dont know if you saw that. Yeah. He threw fauci under how many buses, what is the one that goes clear across m104. Yeah, the 104. He did the ones that are really long that have the accordion stretch, yeah, i think hes yeah, he threw him under that one. Wow who are you going to take who are you going to take for your advice . Youre worrying about something or dealing with something medical related, are you going to at that you can to navarro first or fauci, jim . Sn navarro really plays a docr only in usa today. I play a doctor on tv. Just say it, jim, ron vera could not be reached for comment. I like navarro is funny, he likes the buffalo bills, he is a terrific character, i knew him when i was in college. I dont know, dr. Fauci seems like a likeable fella. We will take a break. A lot to cover here in a moment. Dont go away. 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. 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. A lot of things working for the bulls this morning, obviously vaccine news, goldmans stellar results, pretty good macro data out of empire and Industrial Production looks like were going to try again to get past the levels that we managed to get to on monday, 3235 oueng lln t the opinbe i abt seven minutes. 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. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. 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