The auto sector. Ford and nikkola news coming your way just about to flat line with 59 minutes left in the session. We have a big lineup of ceos coming up on todays show. Dan rosensweig on the back of cheggs earnings it is a moon shot. Then the head oof another stock that has been on a terror, henry ji, ceo of Sorrento Therapeutics and its a huge earnings news, disney, nikola and well speak with the ceo of ww right after the numbers hit. We have 58 minutes left of trade. Mike san totoli is tracking act and phil lebeau. B mike, start us off with the Broader Market it is flat. We alternate the days between when the indices look better than the majority of stocks and days like today when the indices are doing nothing but holding near the highs take a look at the s p 500 here we are on a year basis. You have the pop and turn pattern. You pop above the highs and then chops around right now were above that june high 3350 or so would be a 50 rally off the closing low for from 23rd that is 19 weeks ago but were just kind of churning around here. Really only apple of the big five tech stocks is up to day. That is marginally so. The average stock is doing better heres an equal weighted of the russell 1,000. It looks a lot different than the s p 500. Thats that june high in the average stock. Were working our way to find the trend. You still have a lot of air in there between the june highs and now. That was the peak of the reopening trade. Optimism thats what were working with with the more democratic look. This is that bifurcation bone trending in the right direction. One looks better than the other. What is going on here . Whats going on here is real yields are deeply negative minus 1 is the inflation adjusted yield on a ten year basis. If you only had one indicator to say whats going on with gold, with bonds with, stocks, with real assets, Long Duration assets this kind of is the driver here. Inflation expectations are going up bond yields are very very low. That is one that can revalue all kinds of Long Duration assets higher that is base lick what ically wg on now gold settled above 2,000 an ounce for the first time were heavy duty earnings mode everybody is beating expectations were so depressed are you getting any clear picture for the second half of the year it is a little unique not unique, unusual about this period is that Third Quarter estimates for the s p 500 are trending higher as Second Quarter numbers come through that is not the norm usually you get a little bit of a decline in the Current Quarter estimates. Thats a positive sign that you have this Inflection Point type dynamic. It happened in 2011. Thats a net positive. As you say, forecasts were so beaten down, so low that the fact that more than 80 of companies are coming in ahead of estimates isnt necessarily being celebrated in an outright way. There is a way to estimate what you would expect the stock reaction to be based on the magnitude of a and the stocks are underperforming that because everybody realizes that the estimates just were kind of just give up type numbers right now unless youre apple, that is. If you had High Expectations and came above it, thats different. Thank you ford announcing a shakeup in the c suite three years after the last ceo change. Phil lebeau has the details. Take a look at ford shares. Why are we showing you this . This is what ford shares have done under Ceo Jim Hackett who is retiring october 1st replaced by coo jim farley. Farleys forward plan is ambitious. It needs to be ambitious this is a company that needs to transform itself he wants to fix the operational issues that dogged the company, accelerate evs and Autonomous Vehicles and set ambitious growth options with all of that and knowing what ford has to do, the we to bill ford was put to him was why not bring in an outsider heres what he had to say. Our board felt we were on the right path that the kind of projects that jim and jim are working on together were exactly the kind of things that we needed to pro tell our company into the future so at the end of the day, everyone really, really responded to the notion of jim farley becoming our next ceo so it wasnt to answer your question, no, we did not do a deep dive externally i talked with jim farley today. He realizes the task at hand and what needs to be done. From an investor standpoint this chart says it all. Over the last four ceos going back to 2001, only one was able to grow the share price of ford. That will be one thing that investors will be keen to see if it happens weapon jim farley because this is a stock, guys, thats been stuck in that 6 to 7 range for some time. Phil, my question, i mean, i guess if we put up other share prices of the other key automakers globally, not just the u. S. Over that time, you also wouldnt have seen outperformers. My point is rather than saying that either hackett or fields failed to adapt to the ev world that were in today is just simply that tesla has been unbelievable and none of the traditional automakers managed to respond as opposed to blaming either one of the two ceos. Fair point. We did this earlier today. We showed how ford shares have done over the last three years versus gm, fiat and toyota they lack in terms of performance. Are any of them ones you would write home about no theyre up 14 , 15 after memory jur you youre correct, nobody has been able to keep up with tesla the legacy automakers are unable to reach the demand for what tesla has done having said that, look, ford is a company that needs to get moving quicker there is no doubt about that when you look at general motors, you know what mary barra is about. You may quibble about the response of the market to that, but she has delivered on the metrics she set out there. Thats what theyre looking fji farley. Phil, thank you nikola earnings after the bell today. Well see what they have to say. Let aet guess lets get to washington. Sara, stimulus talks are at a stalemate, not moving very quickly at all earlier today the press secretary at the white house gave a briefing where she said the president remains innately focused on Unemployment Benefits and helping those americans who are out of work but she declined to say whether given this agreement between the two parties and within the Republican Party whether the president would support a stand alone long Term Extension of these 600 weekly unemployment bump through the end of the year, something that would potentially be seen as an off i will branch to Democrats Senate republicans on capitol hill spent a couple hours trying to negotiate their position and find a place where they had consensus on Unemployment Benefits in particular Senate Majority leader Mitch Mcconnell acknowledged whenever they proposed would not have unanimous support. I dont think were going have a total consensus in this round. I dont think the definition of success here is whether we have a unanimous vote i think the definition of success is the product something that will actually make a difference now mcconnell is still keeping the card up his sleeve on exactly what if anything republicans agreed on on that front today. Negotiators from the democratic side of the aisle and Trump Administration are set to meet this afternoon at 3 30 is there anything that the president can do unilaterally here the secretary talking about executive action if the democrats dont yield. What can they possibly do . Well, its unclear exactly what they could do, sara most of the things are things you need congressional support for. Its really hard to free up dollars of Government Spending without a specific congressional appropriation. Things like moving the tax deadline like they did from april 15th to july 15th. Stuff like that that can be done through executive order or through an order by the agency with that jurisdiction but if there is a dollar sign attached it to, sar yashgs ita,e than likely you need congress to authorize that. Thank you nasdaq is red. After the break, shares of Education TechnologyCompany Chegg have been on a terror. Well talk to the ceo about what is driving the strength and how the back to School Season will be very different this year. Youre watching closing bell on cnbc. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. You say the customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept. 5g, everybody is talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item, corner offices for everyone. We just have to make more corners in this building. Chad . Your wireless, your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch to Xfinity Mobile and save up to four hundred dollars a year on your wireless bill. Plus, get two hundred dollars off when you buy an eligible phone. Welcome back check out shares of chegg. Theyre up more than 120 this year getting a huge boost from the learn from home and Online Learning trend cheggs Second Quarter net revenue up 63 subscribers, up 67 . Joining us now is the chegg ceo Dan Rosensweig explain what the last three months have brought, what youve seen not Many Companies reporting more than 60 Revenue Growth yeah. No its been, look, for the wrong reasons which is the pandemic. Weve been benefiting. But the good news from us is the benefits will be permanent this is a change in behavior with students. We were already seeing as you mentioned extraordinary growth in the u. S we were growing at 32 were now growing at 60 we set the second half of the year that we grow at least 45 that is the result of the fact that students need more help than ever before whether theyre in the classroom or going to learn at the physical premise of the school or online and more students are going online, they need help understanding the subjects they need something that is affordable, on demand, scaleable and adaptable to the actual needs. So as a result of that, chegg is just soaring the thing that surprised us is just how popular chegg has become outside the United States right around mid march when all the u. S. Schools closed, schools around the world had to close. International students were not familiar with chegg. The now that they are, theyre using it with the same engagement metrics that we see in the u. S its been brake through for chegg and one we imagine is going to sustain for quite some time what are you seeing as far as back to school for september. How much of that have you already booked into terms of orders for Online Learning programs because so many schools around this country have already decided that they are not going to be in person . Yeah, the great thing about chegg is were relevant whether theyre in person or online or hybrid all were is home work help. For 14. 95 a month or 19. 95 a moshgs in the u. S. , our awareness is 87 students said i need help. And schools cant provide it even if i go back to campus, labs are not opening, writing labs are not open pch because of our affordable, they just flock to us. What were seeing is what you imagine. Everybody said they wanted to open in person because the economics of their schools depend on it unfortunately, science and health are taking over for them. So were seeing schools trying to do hybrid, going exclusively online again and well revisit it next year as to whether or not we go hybrid or in person. So for chegg, were seeing the benefits of more people going to School Online earlier than we have ever seen which is why we have the confidence to give the rest of the year guidance. Last quarter we gave one quarters guidance. You mention the economics there. If more courses are done online, what does that do for pricing particularly for College Tuition . This is a debate that has to happen in the United States . What is the true value of a education and the in person experience one thing that dont know is 1 go to Residential Community colleges the average age of a staunt is 5 years old. Theyre often parents. They often have jobs they also get partial degrees. 43 of them dont even graduate. Those that do, overwhelmingly it takes six years. What we have to see is the price of education come down, schools accept more transfer kredz and expansion of relevant curriculum for the job and workplace which is why were seeing our thankful business grow which is a skills business so colleges have to use this crisis as a way to reinvent themselves more affordable, more relevant, expanded curriculum, online and offline. In fact, our Research Shows that definitively, for students who are only online had only taken one Course Online or never taken a course, 50 or more want to do a hybrid College Experience from now on because of the convenience and relevance. Pt colleges need to reinvent themselves or we predict about 25 of them might go out of business zb zb. Dan i want to get your expertise about what is going on with tiktok and whether you think microsoft is the right buyer and if if there is a Real NationalSecurity Threat here . Lets start with the last one. You know, as somebody that has tried to compete in china many times whether it was through internet or cnet or yahoo and advisement companies, the Chinese Government makes it difficult for any American Company to succeed in china unless that company feels chinese to the Chinese People like a nike or a lot of cases, believe it or not, like an apple. Most American Companies cannot succeed. Anybody with content cannot succeed. Maybe in commerce but when you saw something that theyre not worried about. So, yeah, i do think it could be a real threat. Do i know that its an actual threat i do not do i believe it could be a threat i absolutely do. As to whether or not microsofts the best buyer, that one took me by surprise. Microsoft is focusing so well on going btob and getting out of the consumer business with the exception of the xbox and theyve been brilliant in the cloud. Theyve done the most brilliant jobs weve ever seen as a refounder. So going direct to the consumer and getting to an ad business, content business, potentially a commerce business, i think its a great business i just didnt realize it would be great for microsoft i see other people that i think it may be more relevant for. But how Many Companies have 50 billion that they can put out there . Thats the problem like who . Ill keep those thoughts to myself i would say that i was surprised that microsoft put their hand out there. I dont know why they need to be in social media. I remember when they put on a big push to win search look at how incredible the company is doing ive not heard the argument for. I just know that they can afford it chegg is not bidding. It would be too distracting for the students well, you know, i think more of our students are on it and therefore we dont need to own it fascinating thing, my daughter, sam, when she was on furlough is actually doing social media work for us and discovered how big chegg is on tiktok. We had five million hash tags and now were ovat 8 1 2 million its an amazing environment for students and chegg is a big part of it. Dan, very interesting as always thank you for joining us thank you guys. Appreciate it. After the break, could a rapid saliva test be the key to getting americans back to school and back to work well speak with the ceo of Sorrento Therapeutics. They Just Launched a new test. The stock is up 60 in just one week well discuss that and much more still to come. S p 500 flat with just under 40 minutes left in the session. When the world gets complicated, a lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. In a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 rx 350 for 419 a month for 36 months. Experience amazing at your lexus dealer. Sorrento is up 30 after striking a Licensing Agreement with Colombia University for the rapid one step covid19 tests that sample saliva and can detect the coronavirus in just 30 minutes it is called covid19 trace. It gives a simple positive or negative color change result now and the first on cnbc interview is henry ji. Very good to see you thank you so much for joining us thank you very much for having us. It almost sounds too good to be true what i know is he and his group in the lab during the prenat