One trader says this rally has more room to run your rbi on this thursday, july 16 more ahead on cnbc. Good morning from wherever in the world you may be watching thanks for joining us this thursday morning dow futures have an implied open down around 200 points futures you can see off triple digits fair action higher all of this after the dow capped a fourth straight day of gains the index crossing 27,000 for the First Time Since june 10 leading higher was boeing coming off its best day since last month. In technology, no win street yet. It has been weaker in the last couple of days it is still close. The level to watch, 10,617 would give us a new record still watching shares of moderna. Still in focus it is higher right now after closing well off its session highs. At one point, 88 a share. Investors tempering. Tens of thousands of robin hood traders taking free new positions in moderna stock just yesterday. Around the world, things are Getting Started in europe. They are in the red. Not by a lot china bucking a global trend matt taylor standing by with the trade and top stories out of signatu singapore. We had much better Economic Data out of china. North asia was weaker. It was the Greater China markets that lead lower today. Composite closing down 4. 5 . And Hong Kong Market down. We did get a better print on chinese gdp. Better than the economists expectations year on year and quarter on quarter, we saw a rebound around 11 . Compared to the 6. 8 contraction we did see in china for the first quarter. When you dig into the detail, it shows you growth was lead bay the Industry Growth output better than what the market had been expecting retail sales falling well short. We saw retail sales down 1. 8 than a year ago. This recovery in china doesnt look like it will be led by the consumer and on the industrial side back to you. Thank you, buddy. Turning now to the United States and the world our economy here as cases creep up, there is new concern over the longer term health not just on our out look but europe as well joining us now, chief economist at paribas what do you make of china . Do you think that nation is in the grips of a solid recovery . If you look at the retail sales and production, down and now up the important government retail sales typically recoveries are driven by the sector so it is an issue, i would say all of this debate over the letters. V shaped, u shaped, recovery shaped from your perch, how do you see the u. S. Economy over the next 3 to 6 to 12 months . The key is what is happening on the consumer side and labor markets. The big concern is that the job creation would be slow, subdued. At the same time, they would continue to creep up and people would no longer benefit from specific programs that have been put in place to make the support. If there is no continuation of these programs, that means it will have that kind of cliff and consumer spending. That exists with certain programs as well recovery in the u. S. And globally mentioned when i was speaking about china are driven by the Consumer Sector that means everything hinges on that data mark you see the issue you have at hand with that output over the next couple of months. What is interesting here, the stock market is not the economy, we acknowledge that. That stock market has soared at or near record highs 10year bond yields are lows what is that gap between equity and credit markets telling you for me, that gap is a big source of concern. Now this forecast is kind of like compared to the reept histo recent history if you go back a couple of years where bond yields are rising and that is not the case now one expectation is that this is all thanks to the fed. The other implication would be part of the Investment Community which is not really sharing the bullishness of investors they are a very good hatch in times of turmoil looking at the global economy. Appreciate you coming on a check at other top corporate stories to kick off the thursday morning, Frank Holland is here with those amazon news, the company is updating work from home directors now allowing most employees to work out side the office until january 2021. The company will continue to restrict Business Travel until at least next year u. S. china tensions continue to mount the Trump Administration is considering a travel ban that could mean barring 270 Million People from coming to the u. S. After announcing new visas and huawei is one targeted American Airlines warns that percentage of its work force could be furloughed. Down 80 from a year ago telling staff in an email, quote, with infection rates increasing and several states reestablishing quarantine situations, the demand for air travel is lower. From theme parks to outer space, the man Richard Branson is choosing to lead Virgin Galactic to infinity and beyond. And victims of a hack and how twitter looks very vulnerable. And responding later to this mornings rbi and how cash could be key a lot to do coming up after the break. Dow futures down 28. We are back after this welcome back del may be getting its head out of the cloud the worlds most abundant medal in space, the final front year well start with that space news tapping the former head of disneys International Parks as the next ceo he had been ceo since 2010 and led the company through its ipo. Alcoa lead Second Quarter loss the company has been cutting cost and offset lower Aluminum Prices the ceo says the recovery hinges on how well the country controls the spread of covid19 for the rest of 2020 shares of del are surging as it says it may spin off 81 stake in cloud maker vmware. Currently dels best performing business back to you. Thank you well see you in a bit on deck, a Digital Currency scam for the ages how twitter got hacked happy birthday amazon. Today marks the 25th year since the launch of amazon. Com look at that on the left, amazons original website july 16, 1995 a lot different than today by the way, it went public at 18 a share in 1997 and 10,000 investment then would be worth 12 million today. How about that how about that we are back after this. How about tha we are back after this. 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. Getting you to the story that rocked the Business World last night twitter shares are down dozens of highprofile users accounts attacked warren buffett, jeff bezos former president obama telling others in tweets to send a massive amount of bitcoin saying that they would be matched in doing something for charity. Joining us now is eamon javers who literally wrote the book on Cyber Security this is a weird one. What twitter is saying, as i understand it, reading between the lines, they are not giving us a lot, some twitter employees were compromised and thus these accounts were compromised. What does that mean to you right look, this is a big lesson to American Companies right now particularly in this work from home era where we are all distributed where we are trying to make this virus era work. A lot of different formats being looked at. Twitter put out a statement sayings this a coordinated engineering attack and targeted some employees with access to internal systems and twitter is looking into what other malicious activity these may have conducted or information they may have accessed when the hacker uses your network of friends or associate against you that appear to come with information from people you know that that person would be likely to send you like getting a fake email from your own boss formatted the way your boss would send you that would say, by the way, can you send me that security log in a lot of times, workers would reply to that because it looks real it is not really your trusted associates sending the message i hear what you you are saying sometimes youll get an email from eamon javers. I see your name, not your email. If i click on your name, it will he be like e javers at some crazy domain is that basically that employees got tricked into doing this or is it possible some employees were compromised in other ways if it is a social engineering attack, it is the case that they got tricked. They thought they had something coming in that they needed to respond to in some way, whatever it was some fake email soar slack message or anything that they responded to i spoke to a highranking official here who said there is a possibility of an insider operative working with outside hackers or who was the hacker themselves social engineering hacks are a known problem. I think they are particularly dangerous in this era of work from home because we are using all these unfamiliar softwares and using zoom and contacting our boss and colleagues in ways we are not used to we dont know what is coming at us and we are trying to respond as best we can for other companies that can be a problem. When i went to bed last night, which is always way too late given the time we all wake up, people fell for it the last number i saw was almost 8 million the ideawas basically rich people saying, hey, i want to do social good, send me bitcoin andan i will match your dont nation bizarre and it appears someone got paid in a lot of bitcoin this is equal to the nigerian prince scam. What do you mean scam im still waiting on that. It definitely applies on line too. If you see somebody asking for money, stop, double, triple check. Here is an eighth of a bitcoin, good work hats off to roy harper. Here is the thing, earlier this week, a high profile editor at New York Times quit saying basically, twitter is the editor of the new york city times it has been a bad 48 hours for twitter. Absolutely. It shows how important twitter has become in our Overall Society in politics and media. It is vitally important. What a lot of people are concerned about. Some professionals said this hack was amateurish and hokie. The concern is that this might have been a dry run or test by somebody very sophisticated. Heading into an election season, you get a sense of how chaotic it would be if someone influenced these at one time thinking about someone in the white house located and saying Something Like missiles on the way or this or that and thankfully hopefully ill get my bitcoin back coming up, one reason stocks could keep going higher. Think dry powder your morning rbi most random but important thing you might hear for your money all y. Da dow futures down 215 we are back after this stocks looking to snap a fourday win streak after the dow does something for the First Time Since early june. Plus the true cost of education amid the pandemic. The president of u of missouri here and what theyll do in the fall and more bank ceos warn of the uncertain pace of the American Economic recovery here to weigh in on the banks on this thursday. This is Worldwide Exchange on cnbc welcome back good thursday morning. Here is how your money and the markets look futures are down about 213 points after the dow capped off a fourth straight day of gains on wednesday. The index not only doing that but crossed 27,000 for the First Time Since june 10 the market has been on a march in technology. No win streak or new one yet for the nasdaq after bouncing around, the nasdaq back within striking distance of a new lltime closing high if you are keeping score at home 10,617 is your new record closing high we are at 10,550 so 10,617. We are going to continue to watch shares of moderna again. They did close off their session highs yesterday. This was the market story. Not only with them but oxford and as ra zenetrazeneca in the. Well do the rbi a little early. For good reason, we want our guest to comment this is for all of you stock market bulls out there this could be the big reason stocks might keep going up it comes via Piper Sandler two years ago, there was about 2. 25 trillion in money market or cash funds. Today, that number is 4. 7 trillion. The amount of cash has more than doubled. As noted, that amount of cash is equal to the market caps of apple, microsoft and amazon combined to him, as he wrote, thats a lot of dry powder for this rally to continue. If you keep in mind the available of stocks has dropped in half in the last 20 years more than double the amount of cash on the sidelines and fewer stocks to buy. Random but important i dont know lets find out with our next guest. Head of u. S. Equity strategy you like what we did there and talked about all this cash, nearly 5 trillion sitting around and then put our favorite strategist on the air. Funny how tv works do you think that dry powder will be put to work. We know some cashes build ive heard this on the retail side as well we have to have appetite very good news that comes amid the scene of great reopenings. It is interesting and important but you have to have the news flow to cooperate and come back to put that money in they dont raise too much cash they tend to hide out in these growers. An interesting request to me is some of these come out of the growers hiding out in the community that has been hiding out, that has strange implications because those stocks have been leading the charge higher. The reason weve highlighted the stocks not because we are in love with them but they control all the etfs these stocks dont perform it is hard to envision how the overall market performs. Right theyve strangely been a buffer. Youve seen more hide out and boosted the Market Performance you start to have individual issues, they could serve as dragging down part of the market yesterday, we saw rotation into the areas. Things like industrials and back stock. That fuels a rotation out of some of those names. If it goes on too long, it could not be that great for the market either it is all very interesting we could use the word strange times and apply it to this year. Understatement of the day 5 33 in the morning. Strange times indeed if you bring up a year to date chart, we are where we were a month ago. Do you think we make new highs because we are not at our high of the year. Im still in the choppy markets camp. We had the rebound these were very textbook moves you see. Now we are in this strange third phase where we are sort of digesting the impact i was haunted by a comment an executive made about how well see the full effect of the recession but havent yet because of the stimulus. To me, that was interesting. Seeing some of the potholes of the effect well have to digest those i look at the market with the expense valuations im still in the choppy market camp we are in the lori camp thanks for rolling with the rbi. Take care on deck, the cost of reopening how the university of missouri is going to bring students back in the fall and how it is dealing with social change some of your other top stories a new poll, presumptive nominee joe biden holds an 11 lead. Sadly, the 2021 rose parade has been canceled. The last time the rose parade was canceled was world war ii in 1945 and georgias governor is banning cities and counties ordering people to wear masks in public you cannot tell your citizens, mandate them to wear a mask according to the governor of georgia. Worldwide exchange is back after this feeling stressed . Try new natures bounty stress comfort. Three unique gummies for your unique needs. Find peace. Boost mood. Sleep well. Stress comfort comes naturally, only from natures bounty good morning schools across the country from preschool to Higher Education are dealing with the same question one, should doors open this fall survey finds there is at least one thing, maybe the only thing, American Voters agree on students should not have to pay full tuition for a Virtual College education. Joining elon with more on that story and the implications thats right, if there is one issue that unites the right and left in american politics, that is the cost of education that is especially true in the middle of a pandemic when 40 of institutions will go partially or fully virtual next year in our survey showing likely voters believe Online Learning should come with a lower price tag. 72 say students should not be charged full tuition only 16 believe students should pay full price the bad news for students is that many colleges dont agree big names like harvard, rutgers, california state they are all going on line and charging full price despite push back or petitions from students. The best data we have so far appears to suggest that many households are just willing to eat this cost. The percentage of High School Seniors filling out Financial Aid forms, so far, it is only down 1. 6 this year. What that suggests is that even though many students and families may not like paying full tuition, they also feel like they dont have much of a choice especially in the middle of an economic down turn they dont. You cant just leave somewhere and not pay and expect to come back let me ask you this, as a working mom. As a parent, what are you going to do if your kids arent back in the fall . I know this, i dont have any idea what im going to do. Not a clue ill do what im doing right now, which is losing my mind you too lets go crazy together. I think people are going to have to look for longterm solutions. People cantjust keep patching it together. Theyll have to find longterm child care or figure out what to do financially the question for the economy is that does that change Consumer Behavior on a permanent basis. Does this become a shortterm blip or something everyone is grappling with right now i know families of rising juniors or seniors in high school that have thought about pulling their kids out, basically writing the year off not going virtual. We although virtual doesnt work especially for younger children. I know families that are just like, you are not going to do anything for a year. You are not going to pretend do school we are going to take a year off and youll got back to school a year older depends on the age. Universities are trying to create some sort of Gap Year Program to keep students connected to the college and institutions they dont want to loose them a year or so down the line before a vaccine comes out. Great discussion there. Thank you. We are now joined on this topic by president of the university of missouri system responsible for educating about 75,000 students every year thank you for joining us how does your enrollment doing we have heard that. This fall is going to be so much different than anything students and faculty and staff have faced. We heard from parents as well. They want their children to come to school to get their residential experience that only a University Like ours can provide. With err excited and considering the health and safety with our students and staff anybody who has gone to a fouryear university knows this. About half of the experience or the education is in the class, the other half is just being at college. Big Football Games friends, residential life, greek life, whatever it might be that is half at least of growing up doing your own laundry and dishes how can you replicate that you cant thats why universities have been a main stay despite so many changes. Because of that experience that students are seeking we are seeing our enrollment increase that is counter intuitive you would think that less students would want to come back. We cant wait to welcome them back. You see a lot of the commentary about football. You cant play football. Listen, as a big sec football school, we dont need to go into the implications it is massive. If the sec decides to cancel football this fall the Economic Impact of the tv contracts and so forth are massive. But if we are not going to play football in the fall, that means there are other economic conditions, down turn and so forth we are concerned about the level of state support we get will depend on if we have in person operations including football we are findful of that but not going to treat them any differently. Is it possible that facebook is played in the spring . I think those are options being considered by all of the conferences. The reason we are doing that is because of the paramount safety concerns for our student athletes at this point, we are going to open our season on september 5 in columbia, missouri. We are going to try to get him back from the university of missouri system. I think you are back now are you there . Yes, i am here. I was going to say that at this point we are going to open the season on september 5. And ill be sending some tickets to cnbc. Please. Anybody but alabama or lsu. I would love to root for your tigers on a more serious note, university of missouri has had its own challenges racial challenges. We are now having important, longoverdue conversations about systemic racism and diversity. As the president of a diverse institution, are there less ones to be shared about handling it, making sure you learn and grow from it and exactly where we stand in the push to make muchneeded changes right now . It is so timely at 11 00 this morning, im holding a virtual town hall to discuss the change made even since 2019 at the heart of our inclusion and diversity activity is the need to value each individual regardless of their background to make sure they feel welcome to make sure we have a deeper enrichment education for all there is more work to do obviously as weve seen throughout the events in the past few months in society we must take the lead as a university where we educate young people to be more open minded and inclusive for every member of our society. As you are producing some of americas top journalists. You may control the future of journalism from your undergraduate and graduate programs before we go, how is enrollment for the fall where do you stand we are full about 5 over compared to last year one last thing, it is the best Journalism School in the world not one of the top very well said. President of university of missouri with us live. Thank you. Best to you. Have a great day thank you as we head to break, well stay with that massive twitter story. Shares continue to slide a massive hack of the worlds biggest names. Was it an inside job in a way . Dow down 172 we are back with more after this we cannot forecast the future we dont know we are also very clear, i think, well have a murkier economic environment Going Forward than we had in may and june you have to be prepared for that we are prepared for the worst case we simply dont know our view of the length and severity of the down turn differ considerably from the first quarter. I watch tv and the news like everyone else and am surprised how certain people are the pandemic has a grip on the economy and doesnt seem likely to loosen until vaccines are widely available those are some of the comments from major ceos on earnings calls this week all adding to a chore us of Corporate Executives flagging uncertainty with the pace of eelk nom yiek recovery when you hear these comments from the biggest of the big, is there anything to take away from the ceo speak, if you will it is a tough way to start the day listening to all of that we all know it the one thing we can get from the smaller companies. A little more granularity and conversations with management and chief credit offices about different types of lending and how they see things. Different growth rates and declines of the virus itself one state is opening up and another is shutting down you can literally have different reactions in the markets the overall markets are back to where we they are prepandemic. The banks and financials have not. Why not . If you think about other than the drug companies, the most Sensitive Companies to a cure or a vaccine are the banks. Ceos can say we know what it is at the end of the tunnel right now, if youve got a loan on a hotel at a convention center, how booked is that hotel . Not at all you dont know when that hotel will be running at cap capity. The economic forecasts are that one. It is not that they see that, this is loss over the life of the loan it was more of what you could see. This is what you cant see a lot of guys are setting aside kitchen sinks. Leave us with opportunity busey . Theyve got a very good Wealth Management unit you have a big appreciation of the marketplace. I like midwest, i think supply chain comes back i also love first horizon. Incredibly cheap future earnings broker dealer is a good place to be a little opportunity there to wrap up the show goes quick. That does it for us. Well see you tomorrow that does it for us today. 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Not quite 200 points down maybe not out ahead of some major quarterly reports. More states and Companies Requiring facial coverings georgia governor voiding and banning local mask mandates. A major attack on twitter allowing hackers attacking highprofile accounts like kanye, bloomberg and more. Squawk box begins right now