And joe santoli. Joe and andrew are off today with the storm and everything going on, thank you for being here it was one nasty storm. It did a number when you think about businesses dealing with a lack of power, it is like the plague coming down well start this morning with the markets. Nasdaq with the fifth straight positive day up 22 for the year to date. Pretty good day for the dow and s p. S p indicated up close to 20 points the dow up close to 200 points and the nasdaq up as well. The treasury story has been incredible yesterday, the 10year note at a record low this morning, the yield is at. 526 it seems the context is the same, which is the dollar weaker you see that downward pressure foreign treasuries can buy our equity yield we have bond yields below inflation. That means huge tech stocks that means gold and bonds b. What are the implications for this market and the companion market corporate wise, you have earnings better than give uptype forecast analysts could have a good fiction this the market is caught up on the zone of saying weve dotted this rally. The way the market has behaved is the way it has at the beginning of other bull markets. I dont know how long that will last you are seeing a lot of concentration. Its unclear whether youll see that kind of story market. The way it is grinding out in the last couple of weeks agree at some is point, mike, youve got to live up to the hype the market is banking on things in the economy coming back to some sort of normalcy. A matter of how long the market will wait. In the meantime, while it waits, the stuff that isnt affected. So a third of all s p stocks are still down a third just because the s p is down a third. You have a majority of market up it is still winners and losers it is basically able to hide in the Growth Stocks. Thats the way i would characterize it. You know what, mike, maybe the market has already lost its patience and thats why the apples pushing on 2 trillion and such aweighting, the market has lost patience. It is throwing money at these stocks saying 30 that is the way it has been. If you are an index investor and there are a lot of them, that helps you out you could win a couple of different ways it doesnt take very much. There is a change in tone and sentiment moving away from Growth Stocks now. Just has gone vertical in the last two days. That index would suffer as they are selling off a new. Getting to one of the big corporate numbers. Disney shares are rising as they reported a profit of 64 cents a share. With 64 million subscribers to the streaming service after nine months of operation. That was a surprise. Another big announcement, ceo said disney plus subscribers will be able to watch the mulan film for 29. 9 1 in the u. S. On september fourth this will be disneys first ever oaf to sell content on top of the monthly 6. 99 subscription fee and launching a new general subscription brand next year under the star brand and what they acquired from fox seeing stock up another 6 the first reflex was to decline on the news. It seems like the mulan release will take 30 out of my pocket sure. Im thrilled for any new content. Anything you can give me, we will take in this house at this point. Thats part of what you will see as this plays out. It was interesting how much that revenue had come down losing from the theme parks and how much revenue never developed from theaters opening. It is hard to get your head around the impact. Disney shows you on almost every level. Park revenues down 85 . The story is the differences of the businesses the streaming game and the rest of the pain. 100 million subs now for streaming between disney plus and espn plus. That beat goes on. How do you manage the future of the traditional side of the business, which is no sports ad dollar driup. At least they have the streaming line to carry you tough times. That stock did have a nice turn around as things get released about mulan and everything else. One thing i would say with that the revenue was up slightly for the direct to consumer losses were increased as well. They were up 26 this is a business that they are investing in now the market is looking through that and making sure the consumer is moving up on those things there was attention on the outperformance side as well. They shut down movie, film and tv production. There was discipline there that would encourage people and the company sits on more debt than ever had before after the fox acquisition. Well keep our eyes on disney up 6 . It is an important stock there walmart stock down in the premarket reporting the company is delaying the launch of walmart plus a Subscription Service meant to compete with amazon prime and its 150 millions we are also watching shares of apple this morning to see if it crosses 2 trillion remember 467. 77 is the price to watch. That would be when apple would become the First Company with the 2 trillion market cap apple has done something no other company has. The current 1. 87 trillion market cap, it now accounts for 6 dat 5 of the current s p 500. Surpassing the former 6. 4 set by ibm talking about this drot and how it has gone straight up. It was only two years ago and a couple of days that it first crossed the trillion dollar mark here we are two years later looking at any time when it could be all the way back up to the 2 trillion. The remarkable thing is not that earnings would have doubled. The stock was under valued two years ago. I wouldnt say it is overvalued but at a premium 6. 5 so one sixteenth of every dollar in the market is buying apple. That tells you its weight and economic power i would say before 1985, there were times stocks like ibm or gm were more than 6 of the market. Talking about how long it took to get from 1 trillion to 2 trillion. We had a guest on saying what is the difference in what theyve done from 1 trillion to 2 trillion the most important part of their business has slowed. The Services Business has slowed a little bit certainly, thats the point of Growth Services is the high margin look, Everybody Loves apple you have people questioning whether it quote unquote deserves to be at 2 trillion in such a short time from 1 trillion its phenomenal i was thinking about it this morning and why i asked about the date it first crossed the 1 trillion mark. I thought it was only a year and a half ago i remember watching which company would cross 1 trillion first and i cant believe how quickly weve jumped to this next milestone that being said, it was only about a week after apple did cross 1 trillion that the market did peak. It has accelerated back to this unprecedented valuation. Dont forget the others, it was like who is going to get to 1 trillion first. It tells about the trillion and beyond and where the market goes that stock indicated down 1. 16 down a quarter a percentage point when we come back, well give you the lastest on the stimulus talks in washington and fallouts due to the lack of Unemployment Benefits hitting businesses and restaurants. Right now, well continue to monitor the rise in the price of gold hitting new highs again. Up nearly 5 in the last week. This morning, up nearly 34. Squawk box will be right back. [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile. Call, click or visit a store today. Now to the pandemic, President Trump giving an update yesterday on the latest numbers. As of yesterday, cases are declining in 70 of the jurisdictions compared to 36 last monday. Thats a big, big number 11 out of 13 states with the positive rate above 10 have seen a decline in daily cases since midjuly in other states, the data suggests the need for continuing vigilance always strong even though the numbers are getting very good. In the meantime, louisiana governor is extending the current reopening phase another 21 days including a mask mandate and restriction on bars for curb side, take out or delivery only. Crowds are limited to 50 people. Louisiana is in the red zone for cases indicating more than 100 new cases per 100,000 people in a week so much for the early good signs mentioned. That States Health Department Warning another singleday reporting. Unsure how that will affect the drop in cases reported on sunday and monday and novavax reported on monday, shares briefly fell as much as 34 before bouncing back on confusion over the vaccines safety profile recent trial participants had to be hospitalized for severe reactions. Mostly sporadic reaction and mild with fatigue and headache just noticing something we should bring in the market today, bank of america has justdo downgraded apple. They said they had argued for a multiple reiterating back in june they say since then, the stock has such a rapid multiple expansion and they point to other issues lower impact from share buy backs. Apple buys back a lot of stock potential risk of higher tax rate in the event of a domestic win in elections covid19 services deceleration. Lower Gross Margins overall. Goldman sachs rei hterated a sel now that you get the stock over 2 trillion, youll have more coming out about how the multiple has gotten too rich and expanded too fast. That does really read like a lot of excuses for down grading and looks to be overbought apple yesterday got to 45 above the twoday average. Way richer relative to what it was at the top in february maybe it needs a cooling off period doesnt mean it is a total reversal of the trend. Especially to the degree the excitement is a four for one stock. This really is a laundry list scott talking about a lot of the issues but also talking the antitrust regulations and the china trade risks. There is a huge laundry list you are right, these are things theyve been talking about the headline is the runup of all theyve seen thats right. Not that they are predicting but the price right now does not account for anything going wrong here see how it trades today. For the most part, downgrades dont matter for apple i remember when they rei hterat their sell it is almost like the market laughs at people that try to get off the apple train or at least put the yellow light up. It laughs until the stock is ready and gotten overdone already. Weve had long periods of when it has gone side ways in this massive run. See if this is the time for sellers to get anything done on apple. The expire operation of enhanced Pandemic Development will mean even more challenges for the restaurant sector. Kate has more with us now. Good morning. Transactions at major restaurant chains are stuck in a negative holding pattern. Down 11 for the weekending july 26 we had seen the data begin to improve but in recent weeks as cases began to climb, that would reverse. The group knows the enhanced Unemployment Benefits has expired. That extra 600 a week for most. Most restaurants reporting higher than normal tickets consumers may be looking for larger quantities or looking for left overs mcdonalds saying, quote, i think our expectation would be for the same reasons that there would be some negative implication if that were to roll off it remains to be seen how much this will impact smaller restaurants. The make yr players that have reported so far, weve seen an improvement in the samestore sales in march, april and may. Back to you. Kate, thank you coming up, picking up the pieces from Tropical Storm isaias it ripped its way up the east coast leaving a trail of millions without power well talk about the insurers after the break and the big gainers in the s p 500 disney getting a boost well talk about more whene e ghback w welcome back isaias left damage in its path more on the impact of the Insurance Industry many insurers are depending heavily today on video calls with policy holders rather than an army of adjusters responding to the scene probably a good thing. Storm effects were felt from florida to new england isaias made landfall as a hurricane and tornadoes. Sustained wind and strong wind it didnt last long but it sure covered a lot of territory 100 Million People were under watches and warnings 100 million under watches or warnings at least three million lost power. In hurricane hanna, we saw a lot of flooding. A large portion of damage will be covered by the National Flood insurance program. Weve heard insurers report losses and they are detailing lost related to coronavirus and civil unrest damage. Theyll now have to fold in wild fires in california, hurricane in texas and now adding isaias to that as well. Businesses are the last thing they need to deal with many have even changed their policies because of the coronavirus to lower their premiums and now facing this i just talked to a Business Company who said they had rolled back coverage of his company if you cut your policy, raised the deductible for the cap and the storm rolled through and you have a downed tree and damage, you might have owners going in and regretting they decided to cut those costs . Business disruption insurance is something ive been talking about. A lot of Business Owners were hoping insurers would pay out and those claims have largely been denied. In this case, if you have a downed tree, wind damage that prevents customers from getting in the good news, you likely will be covered for physical disruption you may have a higher deductible as typical, thats the way the policy may be written, correct thats correct. In many states, that may be much higher because it is different for hurricanes since this came in as a named storm, that would kick in that hurricane policy coverage. Thank you coming up, futures pointing to more gains this morning the s p 500 up a little more than half a percent. And later, President Trump doubling down and arguing that the government should get any cut of a tiktok transaction and before we go, a look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Good morning weve been watching what is happening in u. S. Equity futures. This comes after a strong day across the board the nasdaq set another record high the 30th time it has done that this year. Futures indicated up dow futures indicated up and the s p up by 17 check out gold prices are up. This morning, another 1. 7 well past 2. 7 joining us now, chief Market Strategist at cross mark global investments. And doug cohen welcome to both of you weve seen stocks pick up. It has been strong days. The dow and s p. The dow up 2. 5 . It looks like you are a little concerned. Cautious waiting to see what we have next. Is that a Fair Assessment . We have to look at it in the way of demand. We have to look at the stimulus package. If we dont look at unemployment and those furloughed and unemployed, that is key. We have a handful of stocks really driving this market that is all well and good but we are missing that breath we saw from a month ago the stocks moving at the 20day average. That percentage is coming down we are looking at earnings yes, they are beating when you look at the numbers but expectations have come down significantly from where we were before covid we are a little concerned about the economy Going Forward from the demand side. We want to see all of that come back and all thaf will ride on the stimulus package it looks like what you you are looking at out of washington, d. C. Too yes so much is being driven now by washington i agree with the short term but the reality is that unfor unfortunately, we should be preparing for ourselves for a more difficult market Going Forward. There will be more difficult stimuluses down the road and im confident well have to face those. It sounds like you you are thinking things will get worse from the pandemic here i thinks that a wildcard. I dont think anyone has a Crystal Clear path the virus will take. We all hope for an effective treatment or vaccine sooner than latter the damage being done, you dont see it in the s p 500 you think about the destruction being done and the viable businesses and what will happen is that well have to print even more money. Ill give you a quick quote from one of your favorite guests. A gold analyst from back in the day. Alan greenspan, deficit spending is a scheme for the hidden confiscation of wealth gold is in the complex of this standing back to both the bond market and gold and other indicators tell you things are not quite right beneath the surface. Victoria, i dont hear a lot of people coming on talking about election risk. Do you think there is any . We are 90 days away where you could see change, at least according to the polls i think that is baked in right now. The market is really moving. I dont think people are as concerned when they look at what will happen in november with the new administration i dont think taxes will get a hike in that normal year that would happen you have such an overarching concern that the election would take a backseat at the time. Im not saying the market would have to play but at this time, the market is completely driven by covid that is where the risk is going to lie you mentioned gold. To come back to that i know you are a gold analyst. What do you think now that it is above 2,000 an ounce . The case for gold, i recall the 100 reasons to buy gold in 1998 that was an easy report to write. That hasnt been an exceptional return over 22 years it was a easy report because gold was trading around its cash cost you were getting the commodity aspect and the currency aspect for free you are seeing significant increase of 22 an ounce gold is a pretty good insurance for some of those risks i talked about. If gold does poorly, the other things will hold up very well. If we were on family feud, i could go through the board quickly. It is the potential for inflation down the road. All of the overarching element for gold is that we have all of this deficit spending. The potential for unintended consequences thats why gold is good insurance for the portfolio. Survey says, yes. You win, doug. Quickly, what is the license plate you have above your head i cant quite read it. Thats a commemorative plate for the university winning basketball rutgers will get one i cant tell you when. It will be a while all good things come to those who wait basketball will be pretty good we have a new coach in football. On our way with that too victoria, great to see you i dont know about this year thanks for joining us. Well see you both back here soon appreciate it. Just hoping there is a season cbs shares getting a pop posting better than expected earnings and revenues. Also offering upbeat guidance and seeing change in the Health Benefits utilizations backed by Government Programs in the upside the retail end and pharmacy benefits were more or less flat. Seems like generally an upside sup prize of about 5 on that. Coming up, the latest on the potential deal between tiktok and microsoft and shares of beyond meat this morning reporting a loss of. 2 cents a share. Seeing a meaningful slow down in food service and consumers are eating more at home. Squawk box will be right back. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back u. S. Equity futures at this hour s p 500 closed yesterday at the highest level since late february looking to rise another 85 points now we have deal news. Teladoc to buy livongo shares. Shares up 4. 5 year to date. Teladoc shares no slouch. One of those covid stocks. In the book ket of High Growth Technology names that got a list at the core of it. The bet is now by these two companies that it has accelerated as opposed to being something that will benefit now and fall away. Shares of nikola fall back. Reporting a loss since going public it begins to do fleet testing of electric trucks in 2021. The Hydrogen Powered truck on track for next year. The founder will be on in a few hours now at 9 45 a. M. Eastern time shares of Ww International falling. The company formally known as weight watchers. Ended with 5 million subscribers but sales dropped because of locations being closed due to the pandemic coming up, can tiktok be the bump that puts microsoft into le 2 trillion club wel break down that this acquisition could mean thats next. 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. President trump doubling down on his belief the u. S. Government should get a cut from a possible tik tok deal with microsoft. We have all the cards because without us you cant come in to the United States. Joining us now to discuss what all of this means for consumers and advertisers is adam singold good morning did the president ask for a cut of your deal that closed now. Do you have to give anything up to the government or what . It was good news the doj approved our deal. Nobody asked for a cut of the deal good news, i suppose. Let me get your take on tik tok microsoft. Does that make sense to you yeah. This is great news for microsoft, for tik tok, for users. The biggest winners is the advertising community. We spoke about competition this is perhaps the biggest media asset that can capture advertising dollars. In other words you can never have too many platforms to go to if youre an advertiser . We have too little, right we have two to three platforms capturing he 60 , 70 puerto rico of the advertising budgets the world deserves another big platform, perhaps more than one. If you ask advertisers whats your Christmas Wish they would say keep tik tok growing make sense to you its microsoft that would come together with tik tok rather than somebody else and why yes because i think, i can only imagine, they getting tik tok. Hes shown he cares about the business site does make sense for notice be big advertising doubling down opportunity and also you have to imagine that instagram is a 20 billion Revenue Company capturing 50 minutes a day of consumers. Tick kok is capturing the same amount of attention. Think of the attention economy were in could tik tok be worth a trillion dollars i joked with you at the top of course what the president is saying as a founder in technology and an executive running a business, what do you think about just the nature of what the president has said and how hes gotten himself involved in a possible transaction in your industry i mean its hard for me to comment on this. I think its very early for all of us to know. There is mechanics for governments and countries to capture a value of a deal, a transaction such as this one so i think its early for us to see whats the value exchange. Who else would be affected if this happens i think all of us, even as of yesterdays press hearing were looking to see what comes out of that one i dont have much to say just yet. You mentioned the limited Playing Field if you will in term much platforms fortis stories do what they do digitally. Facebook, obviously, being the most important one right now what your seeing in terms of the boycott . Is at it shortlived phenomenon or have some staying power do you think . I think people that believe the boycott will hurt financially . It will not hurt them financially. But it will get their attention. So i think whats missing in the world and i looked at from last week, big tech ceos i felt i was waiting for my wizard of oz moment everybody had a brain but they lacked some empathy. I feel thats whats missing and the boycott, it gets that empathy, that conversation and thats what we deserve to talk about operation. Talk about what else can we do so were getting back. But i dont think well see facebook getting hurt. What does the digital ad market look to you right now you had a difference in the Earnings Report from facebook and alphabet, one maybe being more levered to travel and entertainment business and whatnot. How does the landscape tluk right now just in the context of where the my is. Its tough. We were working from home since march 15th were productive we have offices in 18 countries. Were missing the human tounks the social element of being together in your room and brainstorming and think how we can drive value to our clients and partners weve seen also 17. 5 decrease in revenue in one day which in my wildest dreams i never thought i would see that day at the same time working extra hard being part of a start up, especially in tough times everybody, nothing unites people more than difficult times. Were working extra hard together advertisers that were born in a pandemic and might be here forever. Were trying to look for that growth working with our partners on that. Im optimistic, for those who are quick to make designates i manage my company day in and day out imagining this might be the case for a longtime. Well check in with you again soon i appreciate your insights congratulations on closing the deal as we said. Thats Adam Singolda becky . When we come back senator mike braun will join us for an update on stimulus negotiations and what investors need to know about a potential deal plus disney shares up this morning after surprising Analysts Bank of americas jessica early will break down those numbers. Well be right back. On a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Some Companies Still ahave hr stuck betweenty employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Welcome back new votes over a potential stimulus deal in d. C futures are higher this morning as investors look to build on a three day winning streak from the latest from washington straight ahead disney dealing with its first quarterly loss in nearly 20 years. As lockdowns closed the Magic Kingdom but they are doing something that could change going to the movies forever. And colleges struggling with plans to reopen and towns surrounding campuses are hurting. That story plus reaction as the second hour of squawk box begins right now. Good morning, everybody. Welcome back to squawk box here on cnbc im becky quick along with scott wapner and mike santoli. Weve been watching whats happening with u. S. Equity futures. Things have been in the green. Dow futures are indicated up by 1 he 80 points s p. Futures by 17. Nasdaq indicated up by 28. Mike becky progress being made in washington on the next Coronavirus Relief deal. Eamon javers joins us now with the latest details reporter thats right. It looks like the logjam is starting to break a little bit still pretty far apart on the core issues but lawmakers coming out of a closed door negotiating yesterday. They made some concession which we appreciated we made some concessions which they appreciated were still far away on some important issues but continuing to go at it. My view, the fundamental disagreement is the scope and depth of the problem and its solution reporter so thats what Chuck Schumer says the problem is the president , though, said yesterday part of the problem is that democrats keep insisting on massive aid to states and localities the president doesnt like that. Heres what he said. Talking with the democrats. They seem to be much more interested in solving the problems of some of the democrat run states and cities that have suffered greatly through bad management reporter so its unclear, becky, whether we can get to a deal here in washington or not they do seem to be far apart on some very core issues here the president has been talking about the idea of using executive authority to move forward on some of these areas that he wants to see progress on particularly on that enhanced Unemployment Insurance but theres no indicationthat the president has the Legal Authority to do what he says he can do if he does move forward with executive orders you can beat lot of that will be tangled up in lawsuits and the courts for some period of time. So no immediate resolution here from the white house no immediate resolution from capitol hill but the rhetoric is that they are making some progress, becky. Weve been checking in with you every day talking about whats happening here and every day you give us a little bit of a temperature gauge of where we stan things are off a little bit today. Feeling cooler maybe were getting warmer, closer to something. Lets play that game today where are we hot or cold . Reporter sure. I think were warmer than we were right . That schumer southern bite emphasized the idea they are making concessions back and forth. The key issue is whether or not the white house is prepared to agree to a larger deal than just the small items that they want and the big unknown is Mitch Mcconnell and the Senate Republicans. Mitch mcconnell has said that the Senate Republicans are just not unified on this at all they have different ideas on where to go. They oppose the idea of extending that 600 per week Unemployment Insurance they want to lower that to 200. Mitch mcconnell signaled if the white house supports that hes willing to back it even if it splits his own conference. A lot of moving parts here a little bit warmer today than yesterday. Thanks. Well get a temperature dplek you again tomorrow morning too joining us right now to talk about when a the aid agreement could look like is nature mike braun of indiana senator braun thanks for being with us today. I assume you just heard what eamon javers just said you heard how this has been described the idea that the Republican Caucus itself isnt in agreement on what comes next. Would you agree with that assessment i think he sized it up pretty well mostly what were seeing is pose touring. Ive been here a little over a year and a half. This framework generally comes into play on almost anything significant. Youre seeing in the market, though, two things that were going to get a deal done and that the economy was so good precovid, its driving it in that fashion so i think its convergence of the market reflecting probably whats happening so when it comes down to what will it be, there will be some type of enhanced unemployment benefit. Every entrepreneur, every main street business owner, medium and Large Companies back in indiana say they are having trouble getting people back to work and part of it is because of the one we did back in march which every republican thought was too high then. We had an amendment. It didnt pass because we got no democrats interest so i think thats the lynch pin. Then schumer saying that the scale and the seriousness of it, many of us think that getting back to the economy we had before, maybe addressing some omissions and errors and taking care of the people that have been displaced, along with some of the businesses disproportionately hurt that probably wouldnt add up to a trillion dollars it would be less so that top line will get some republicans, conservatives, fiscally conservative folks like me and there are mover us now than what there would have been before because we throw trillions around like hundreds and billions and were borrowing every penny. Nobody is worried about that now. But that will come home to roost sooner or later. Well get something done but its a question of time. Senator, how many senators in your caucus would you put in that description of what you just said . More conservative, dont want to see as much money being spent . So ron johnson and i did the proposal for 200 benefit. And or up to 66 of the wage that was in place before at the states option that, i think, will get buy in from fiscal conservatives and Business Owners and probably people that are out there, you know, not working but need to come back. So whether that will be the part on the enhanced unemployment benefit, or something more kind of rich for the other side, i dont know when it comes to some of the ext extraneous stuff they have in the heroes act thats not going to fly thats why you see schumer getting something done more practical in nature. Are you considering money to states, municipalities been particularly hit hard as something that you brute extraneous in that camp . We cant correct poor fiscal management, poor management in many of these states and that mostly then gets political because its pretty defined in terms of where those issues are. That gets to take this package into the multitrillions and then youre going to get a cascade of republicans that fall off regardless of the content just due to the top line you did hear, though, that eamon javers also suggested that Mitch Mcconnell might cut with his own caucus and leave you guys out if youre not willing to go along with the deal that gets something done, something the president would like to see done the leader is in a tough spot this is testing kind of the mettle of anybody here when it comes to maybe looking a little farther down the road. He did say that. And thats generally the way things do end up the year and a half ive been here that gets orchestrated at a level that many of us have to say we take it or leave it if that top line is big, i think there will be enough votes to get it across finish line. Youll just see more than the normal amount of republican defections senator, scott wapner nice to see you. Thanks for being on squawk this morning i have some questions about comments you made yesterday regarding going back to school and the coronavirus. You said be safe, take a little risk, address the disease head on, dont hunker down, that as you criticized a plan to go all virtual. Yet a school in your state had to quarantine shortly after reopening earlier this week doesnt that prove your comment and your strategy wrong . No, i think when you try to generalize upon specific instances like that, its a mistake in logic and in process. So youre going to have some of that thats what i like about fact its local decision, local rule. Because every district is different. I served on a school board for ten years. And i can tell you that down in my neck of the wood, sure, were concerned. Health and safety of teach earns students but the general feeling is parents, especially, are interested in getting their kids back into school, not a virtual education. Even though there might be a combination of the two, and youll have to kind of be flexible because you may need to react just like that district did if theres a flare up. But i dont think its in the constitution of most americans to hunker down, stay in the basement to get through this and we know a lot more about it. Ill say this, and this discussion on the disease itself what ive seen, we wouldnt be near as good a shape in terms of the therapeutics, vaccine moving along if we didnt have an entrepreneurial approach to it as opposed to a stayed bureaucratic approach which i think would have happened otherwise. Of course that will all be distilled once its in the rear view mirror but i think trump has handled it pretty well there. When you look at even the fatality rate which i think is most important, its closer to where the experts thought it would be at the good end of the scale back in march when we really had to look at it look at the difference between being blind sided in new york versus whats happened elsewhere. So, we when it comes to reopening businesses, schools, we got to do two things at once and thats respect the disease but be agile and entrepreneurial in how we start to get into this new normal theres a lot there in your answer and respectfully, you know, new york was, obviously, the first and the hardest hit. But some of the states particularly in the sun belt that gloated about their own responses almost poking a finger at new york were then facing their own crises where cases remained on the rise, where the death rate has continued to go up now things have slowed somewhat in places, but theres also a widespread conversation that we wouldnt be where we are today had there been more of a federal response to this from the get go how do you respond to that well, i would say that is debatable and we wont know that until we get all the data and everything in. All i can tell you, my opinion this place has knocked it out of the park over decades of trying to tackle anything i think the more we try to do things from the top down, youre not going to have results that really end up being successful on main street and not that there shouldnt be guidelines ill take the best practices that we learned from all places. But its a matter of approach. And i think the approach has been reasonable. Could have been a lot worse. Might have been slower would have been for sure had we taken a more bureaucratic could have been a lot better, wouldnt you say whats that wouldnt you admit could it have been a lot better i think when you look at the experts that we have out there, fauci and birx, go back to see what they said would be a good result around august 1st and youre going to see its closer to where it is than what could it have been, which would have been a lot higher and i think thats due to the fact that anybody out there working on therapeutics, vaccines, our Health Care System has done a great job now that we know what were dealing with and i dont think that was factored in, you know, at the beginning and were seeing a lot of those results senator, the death rates here in this country are certainly higher than many other countries. Lets move on to the schools and the point you made with the schools and trying to figure out what comes next. Teachers in your state and in other states said they might consider going on strike if they dont feel safe. If your concern is trying to make sure we do get the schools reopened would you be willing to spend additional money on schools in this next round of stimulus package to make sure they can get protective equipment and make sure they have things to space things out, personal protective equipment and Additional Space in making sure they can deal with this back in a state like indiana over half of our budget was devoted to k through 12. So dont forget that the resources in almost all states are disproportionately target at k through 12 so there will be some ability there. How much we do through the federal government, i think if you can make that strong connection that its a matter of resources, that may not be marshalled by states across the country, yes, because i think its no different than what it was before covid most people View Health Care and education as issues one and two. Ive been the most outspoken senator on reforming the Health Care System. Well get back to that covid has interrupted that but still makes at any time same and i think from local politics to national politics, we will collectively do what makes sense. My feeling and especially looking at it from a state like indiana, is that we need to attempt to try to do, educate kids in school be quick on our feet be able to adjust if do you have flair ups and yes resources might be used from here to there to get it done right senator, ill tell you we spoke with Mitch Daniels the former governor of your state who is now running your university and he said its taking millions of dollars to get the plexiglas, personal protective equipment and make that campus safe for people come back i think it will require additional finances that go into education. It will a shout out to Mitch Daniels he is probably a Ball University president. Taking a different approach to education. Ill never forget when i was on the ways and Means Committee as a state legislature back in 15, he said the high cost of education and making it more effective, a better value, hes put into place i think frozen tuition now for nine years, doing a lot of other things to fix what now eclipses the rising cost of health care. So, again, health care, education its in need of reform beyond getting through the covid crisis senator braun, thank you for your time today. You bet becky, coming up disney shares rising after reaching 100 million streaming subscribers and plans for a new service. Well discuss that after the break. Lets get a check on the markets. Disney shares. There are the markets. Higher across the board in the premarket squaw wl rhtackilbeig bk. Les] [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. 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There were a lot of surprises in the earnings and Earnings Call last night. The most important is the direct to consumer subscriber numbers disney reached over 100 million subs globally. The key number is disney plus was over 60. 5 million subs at the beginning of august, a few days ago thats exceeding the low end of their guidance for five years. In only eight months its a huge number and i think a big, big surprise. Another one is that they announced, an analyst theres a couple of things they announced they are rolling out internationally next year and instead of it being under hulu label, it will be under star which they fully own and will be all of disneys content. They finally announced that they will have an Analyst Meeting as they say in coming months and. That should be a big event their last analyst day regarding direct to consumer was a huge it was just a huge event for the stock than one should be as well do you have a good feel that whatever gains the company is making in subs will offset whatever pains the company is feeling in the rest of the business you know, transitions are really painful and the company has to deal with their businesses you can see this another surprise, a negative surprise was their International Channels they took a 5 billion impairment charge and they are expecting a loss in the coming quarter. So they have good data direct to consumer but not enough to offset paid tv outside the u. S it is what is it this business has to pivot and they are making incredible progress on direct to consumer i guess one other thing thats worth talking about, you know, disney had a bulls eye on its back with covid19 all of their businesses are impacted mostly negative except with direct to consumer so this is they are doing a great job where they can but everything is closed theres not a lot they can do about that so they announced last night that they will offer mulan will offer it on a premium basis for a big price 29. 99, roughly 30 beginning in Early September but only to disney plus subs this should be hugely profitable offer for disney, but it will also drive subscribers or drive consumers to the disney plus platform whats your target on the stock . 146. And did you raise it after the number or have you been consistent on that now weve been pretty consistent on that. Okay. Good to see you this morning have a good day. Talk to you soon scott, thanks. When we come back the latest read on mortgage data and what its saying about the housing industry then Ezekiel Emmanuel will join us the volatility. The ambiguity. This moment calls for more. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. Mortgage applications out lets get to diana oleck for ooh fresh read on the Housing Market reporter Mortgage Rates set another record low last week but apparently borrowers were unimpress. Mortgage ply case fell last week now this is on the 30 year fixed fell to 3. 14 from 3. 20 for loans with 20 down. Thats a new record. The rate was 87 basis points higher one year ago. Refinanced demand which is super incenti sensitive. That annual comparison not as strong as it has been recently and a lot of people have refied and the best rates only go to the top bioroeorrowers Mortgage Applications were also done buyer demand is very strong but supply of homes for sale is painfully low and why the average loan size keeps getting higher, a sign that tighter credit, higher home prices and low supply are side lining some first time home buyers snoom fol you mentioned many folks refinanced whats the threshold for when it does make sense. You would think so. Generally the rule of thumb is if you can lower your rate by 75 basis points from 4 to 3. 25 it makes it worth there are close to 18 million borrowers who could make that math work. So still a lot of people out there who could refi and save a considerable amount on their Monthly Payments all right well see if we get a little refresh from that part of the business diana, thank you very much so still to come on box this morning, Ezekiel Emmanuel on the reopening of cools and race for a vaccine. Weve been in the green all morning long even after the gains we saw yesterday in fact, three days in a row now weve seen the dow and s p 500 close higher s p is 2. 5 from its all time high nasdaq up for five sessions in a row. Dow futures indicated up by 180 points nasdaq up by 38. Squawk box will be right back. This should be the time of year when College Towns start bustling again with so many universities delaying the start of classes or going hybrid or even virtual with their teaching the cities that surround those colleges are struggling to survive. We have more on this story reporter good morning, becky. 65 of colleges plan to go at least partially online this next semester so its really hard to have a count if you dont have the gown we look what happens to a city when students stay home. August is normally when athens, ohio comes alive roughly 18,000 students would flood into the city to start the semester at ohio university. Tripling the lollipop allocation and driving the local economy. But this year the pandemic has put everything on pause. For the First Time Ever we absolutely have no idea what to expect reporter typically College Students across ohio spend 960 million a year off campus. At places like this coffee shop. But this college town turned into a ghost town once coronavirus hit. Now the university is slowly phasing students back on to campus but owner Jessica Thomas is still preparing for the worse. Were anticipating being down 25 at best. Budgeting 30 to 50 down. Reporter what happens at the university affects almost every aspect of life in this city. Revenue from the hotel guest tax were down 86,000 after graduation went virtual. Colleges arent buying as much water from the city. Thats a 100,000 hit. Revenue from parking meters and garages have been cut in half. We trimmed everything we possibly can without having to go down the path of laying people off at this point reporter even that is not entirely off the table becky, the city has already taken a Million Dollars out of its Capital Budget just to pay employees. Theres just not much left to cut. Back over to you this has been a continuing conversation that weve had for weeks if not months at this point. And thats what the federal government may or may not do to help out in this situation we had senator mike braun from indiana on earlier this morning. He said he and his more conservative colleagues in the senate dont want to give additional money to municipalities or states, this is a situation where states or cities have been poorly run. What would athens like to see from washington and what happens if they dont get that money reporter well College Towns like athens say they are ainu Economic Situation and thats because this year is also census so much federal funding is calculated based off of a citys population they say that the smaller student body means as much as 40 million over the next decade could potentially be at risk this isnt just something they are seeing as a short term problem this is something that will be with them for a very longtime excellent point thank you. Good to see you. In a recent oped in the New York Times dr. Ezekiel emmanuel said we should think about what students engaging outside of the classroom just as much inside the classroom now. Joining us now is Ezekiel Emmanuel hes vice provost of global initiatives at the university of pennsylvania and somebody who has been looking what to do with schools very closely thank you for being here today great to be with you. Thank you for having me. Lets start with the premise that you think schools should be opening and you would like to see them do that but see them do it safely. Whats at the top of the list . What does that mean for elementary, middle school and for high schools lets start with that. First of all, its only viable in communities that have the transmission rate very low you cannot consider opening in most states in the country now because their transmission rate is way too high. Their test Positivity Rate is too high theres just too much virus in the community. You open schools, some child or adult will kwoinl the coronavirus and spread it to everyone if you have a test Positivity Rate low, then you have to do you have to think about dropping off students, the classroom, lunch time, Extracurricular Activities you know on the negative side i think a lot of Contact Sports are out. Thats not a good idea doing things indoors have to be limited. You have to whats caldeintensi. Face masks for children. Not use the cafeteria. Have to think through every step of the process and reduce the crowd, r reduce the congestion, reduce time kids spend with other kid and teachers can we just go back to that when you say you need low transmission rates you mean low positivity Testing National guidelines look at 5 positivity you have to have below. Correct in terms of the number of tests coming back positive transmission factor of below one . We look at the number of case, new cases per hundred thousand that you get over an average over a week. Thats what were looking at so if you think of 75 new cases in a week per 100,000 people thats roughly ten a day per hundred thousand people of new cases. Thats a good way of looking at it i will tell you that there are many, many European Countries and other countries that are well below that ten new cases per hundred thousand per today. Italy which, you know, we were making fun of in march and april, is in the two to three new cases per day range. So you can get down there. It does require a concerted effort which we havent been able to mount in this country at all and thats the real worrisome factor, in my opinion. Weve seen schools in places like germany and norway and others that have opened successfully what are they doing correctly. What should we be following in terms much those guidelines or are you saying you couldnt do that because the Community Transmission is just too high. First you have to get the Community Transmission down. In places like norway, germany, the netherlands have done that they brought the Community Transmission down. You reduce the risk that anyone will walk into the school whether an adult or student and be positive. Thats just the basics then they do reduce the class size reduce the chance for random interactions they pod students so students go to class together, they play together, you do things outside to the extent you can. You keep the window opened we also need to think about air filtration when we have to close the window because of the cold you need have to have heve hepa filter this is do considerable. It takes money most of it is actually a good investment when you consider all the things that schools make possible including getting parents to full productivity at jobs so, you know, schools are vital for the student. They are also vital for the overall economy. Doctor, how many cases would you consider too many in a School Building . Well, you know, one case is too many because of the chance of spreading it around but what i think we really need to be able to do is to reduce the number of cases in the community, and then you will have a situation where if a case does popup you can successfully suppress it and Contact Trace the few other students that might have it. And that, again, has been done successfully not that you are going to eliminate cases. You know, cases are going to arise. What you want to do is reduce the spread make the number of cases that arise rare and very quickly have the capacity to Contact Trace and isolate those people who come in contact with sturngts test them and see if they are positive if they are not positive you can bring them back to class can you do that without closing the entire school. Lets say we send kids back and you have a positive case or two in the school house. Can you keep the school open while dealing with the infected students and doing the tracing involved to figure out who sells exposed. Thats a great question yes, you can if you do whats called podding say you have 15 students in a classroom now. And then they go outside and play together. They eat lunch together. You should be able to isolate it to those 15 and not to the whole 300 or 400 students in a school. And thats the key if you have a lot of those events, if four or five of those classrooms are testing positive, then you will have to close the school but if its just one or two, and they come sequentially you dont have to close the whole school if you successfully pod. These are some of the techniques that are used in other countries and we can use you cant do that if theres a lot of Community Spread because then more people are going to come in to the building who are positive and may not know it you bring up one of the things thats important for this is getting parents back to work too. But if youre keeping the school not at full capacity, if youre making sure youre not as crowded so you cut down on the spread that means reduced hours for people too and i think thats where a lot of heaviest comes in these conversations and in these debates this is some pretty as a parent every parent i know is in the midst of trying to figure out what they are going to do with their kids right now. The battle lines line up pretty hard fashion what do you do about that . You want to answer all of these questions. Yes it seems to me we do want to open up schools. You have to open up actual physical schools for younger students who, for whom its very hard to learn online but it does seem to me were creative use tents outside. Mobile classrooms outside. Other spaces in building, whether its the gym, or the cafeteria for classrooms, spreading people out, it does seem to me we can get schools back but, again, this is a, as i like to say, this is an issue in, you know, maybe 10, 12, 13 states at the moment because they have the transmission rate low enough in the other states we have to concentrate on getting that transmission rate down and that is going to be thats a prerequisite to even having the School Discussion and getting it down from the peak is going take about eight weeks. Ive been saying this since, you know, march and april. And we dont seem to understand that when, to really reopen the economy, to reopen schools you got to get that transmission rate down. Thats the prerequisite for all of this discussion we seem to short circuit that every time its a lesson that almost every other country has understood, adopted and put into effect. Thats not is going to eliminate your cases, its going get it low so you can suppress any few cases that you have. Okay. Let me give you a for instance i looked up lake county, indiana which is where i graduated they said rather than follow the federal guidelines their official said they will keep schools open, middle and high schools open if theres up to 11 positivity and for Elementary Schools up to 13 what would you say to that way too high. Thats unreasonable. Youll have a lot of transmission in the school therefore, continuing Community Transmission when those kids and those adults go home with others i think that is a very unreasonable position. I understand the drive for it. Believe me i think schools are vital. They serve incredibly important educational mission. As well as social mission. Nutrition mission. Many other missions. But you have to do it safely and the doing it safely means that the schools are part of the Larger Community and you need to attend to the Larger Community doctor, thanks a lot for your time good to see you. Always nice to be on squawk box it was great to have you here dr. Ezekiel emmanuel is author of the book which country has the worlds best health care. Coming up the dow closing higher for a third day as coronavirus talks continue what will drive this market higher now well discuss that in just a couple of minutes. Later in the program, senator marco rubio of florida will join us to discuss Small Business relief squawk box will be rightac bk. Welcome back to squawk box futures are stretching higher. More than half percent gains over the s p and Dow Walt Disney on track to contribute 50 points to the dow upside up now 194. Nasdaq looks like it will be the under performer today. Up 46 points apple downgraded to neutral from a buy. Analyst there says there are many positivesfor apple but risks as well. Raising the price target on the stock to 470 from 420 and it closed at 438. Trading right now at 438 walmart stock is down in premarket the company is once again delaying the launch of its walmart plus a Subscription Service meant to committee with amazon prime. Novavax announced yesterday its Covid Vaccine generated a promising immune response. Shares briefly fell as much as 34 in extended trading before bouncing back. There was confusion over the vaccines safety media reports said recent trial participants had to be hospitalized for reactions that stock now indicated up 23 in the premarket. Mike, thanks when we come back, jim paulson will join us to discuss what will drive this market higher. At the top of the hour senator marco rubio joins us to talk about Small Business later Federal Reserve vice chairman joins us to talk about the feds respseon to the pandemic and the state of the economy. 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Plus, get two hundred dollars off when you buy an eligible phone. Our next guest say there are four powerful and positive forces which will drive stock prices higher. Joining us now is jim paulsen. Jim, good to see you this morning. You have a list of four. I can give you just one. The fed. Or two apple. Well, you know, i think, scott, certainly fed is one of them but if you think about a sugar high the sugar only works for stocks if it ultimately works for the economy as well. And i think the stock market is reflecting whats going to happen to the economy. Were going to have some really gdp numbers. The current tolerant fed gdp estimate for this quarter right now is 20 or right there. And its a big bounce after 32 drop in the last quarter but thats a big number. I think policy is part of that theres no doubt it isnt just dont fight the fed. Dont fight fed. Dont fight treasury dont fight bond vigilantes. Policy officials all over the globe. Theres a massive globally synchronized policy support. In addition to that i just think, scott, theres still a lot of caution among investors were worried about so many things here. Were worried about overvalued market were worried about too much concentration in the faangs. Were about a bad seasonal period were worried about election risk were worried about a respike of cases in the fall. Were worried about china relagss. What it brought up is a lot of underinvested investors. Going continuing to go into bond funds and out of stock fund. If we continue to climb higher what if we get to a new high, those underinvested investors could get more invested and could drive markets higher the guiding numbers will help in the bounce were seeing in the economy. Even if that slows, if it just continues that will help investors. Then finally, theres just so much to improve in part because its been so bad we had a recordsetting Unemployment Rate. We had a recordsetting inventory draw down. We had a recordsetting rise in the personal savings rate. We had a really nasty earnings decline. Think about those going back to some sense of normal and what thats going to do for the stock market down the road i think there are some good things that could keep this ball going. Mike, you know, jim mentioned all of these points of caution market hasnt cared about anything at all. Well, no. The market itself has not cared about anything the market has fed off of that defensiveness out there and one thing i would seize on really to some of jims points is that there are two main complaints about the rally. 50 up from the intraday low on march 23rd one is that the stock market is kind of delusionally disconnected from the real economy. The second one is its just concentrated in all these hyper mega cap growth names. Only one of those things can be true entirely. The reason why the market is not fully disconnected from the market is because big Growth Stocks have been carrying things a lot of cyclical stocks have not recovered. You have to figure out what exactly you would prefer the market to be doing right now at a time of sub2 Corporate Bond yield and as jim says with things going from really bad to somewhat less bad. I would ask, jim, though, i was going to say, jim, you know, you talk about, we have this massive rally that you only see the likes of typically as an early bull market marker what does that mean . We also heard in early 2019 this looks like a new bull market we heard after 2016 that was kind of a mini bear market were in a new one how long does this get us through this year or next year what does it mean to be early . To me theres a fair number of markers, you know, that not only a new bull market but a new, a new expansion in the economy. I think thats more what it is 2018 did not destroy the economy. We didnt have a recession that we then could repair to sustain a drive higher in the equity market weve done that here in spades indeed one of the reasons, i think the future for stocks looks good its so good because things are so bad. Theres so much to repair. Imagine the operating leverage for u. S. Corporation as we bring the Unemployment Rate down from double digit levels back to 7 or 6 again over the next few years. Theres a lot of operating leverage upside. I think theres more evidence this is an expansion if you will beyond just a run in stocks again. One thing about concentrational market, mike, i think if you look at it from the low on march 23rd, theres a lot of the stock market that is up 50 . 40 to 50 i think eight of the 11 sectors within the s p 500 most of which arent named technology are up 40 or better. And the russell 2000 index is up 51 . The equally weighted s p 500 is up almost 50 . So this idea that the only thing driving this market is a few faang stocks, i think is way overblown. Theres a lot of participation, a lot more participation, maybe not from yeartodate, but certainly for the market jim, thanks well see you soon jim paulsen. Thanks for having me. I want to thank mike santoli for being with us the last two hours. Mike, great having you here. See you again soon take care good to see you when we come back, senator marco rubio joins us to talk about Small Business relief and the outbreak of coronavirus in ora. And later our interview with rich clarida box will be right back good morning, everybody. Futures solidly in the green how will the markets react when we get a good look at july hiring the latest adp payroll report out in minutes signs of progress on a stimulus deal democrats and republicans still are far apart on many major issues well ask republican senator marco rubio what he thinks it will take to gate deal done. What does the fed do next to try to fight the economic crisis sparked by the coronavirus we have an exclusive interview with rich clarida. Final hour of squawk box starts right now. Good morning welcome to squawk box here on cnbc im scott wapner along with becky quick. Andrew and or are out today. Weve been pretty much higher throughout morning dow opened higher by more than 200 points you can see green elsewhere. Big watch on treasury yields as well which have been sinking lately ten year is around 50 basis points 53 right now a little bump in yields across the board. Lets talk about disney as well because were reacting this morning to those earnings. Shares up big in the premarket after the Company Posted mixed results for its fiscal Third Quarter. The company said coronavirus cost its theme park segment 3. 5 billion in quarterly operating income on the streaming side the company said as of monday its disney plus service had more than 60 million paid subscriber. It was a milestone it original lie reached in 2024. Disney had a big announcement on its live action remake of mulan which was to hit theaters in march is now delayed. Disney plus subscribers can download that film for 29. 99 starting september 4th mulan Going Digital didnt represent a strategy shift for the company. Were looking at mulan as a one off in terms of, you know, as opposed to trying to say theres some new, you know, business remodeling that were looking at mulan is one off we fine it very interesting to take a new offering on premier access offering to consumers at that 29. 99 price and learn from it disney also announceled it will be launching a new general Entertainment Streaming Service in fiscal 2021 under the star brand it recently acquired from fox. That service will get content from abc studios, fox and fx and other sources. I like that sound bite. This was a one off were doing with mulan but well flarnt and figure out what else we can do all these companies are looking at ways to stretch and change the traditional model. Maybe change a little bit of who has the upper hand when it comes to theaters or versus studios on some of these things too weve seen this before these companies werent in a position where they had to that sound bite he was just talking about. Emphasis on were looking and learning lets see patriots one off, if its a home run if they get a lot of uptake from consumers. Lets see what happens after that by the way, this is a blend too. We talk about these Blended School models. This is the same thing they will be releasing it in china and other places where they ares are already open see what they can get and what the entire mix makes all right. Lets get our next story tentative signs ever progress in a new stimulus bill from washington to help levi at it the worst effects of the coronavirus. Chuck schumer telling reporters he and pelle are making progress in talks with the republicans. And will continue to watch and see what they are doing terms of that feel. Joining us right now on the from your of course, the Biggest Issues are like federal unemployment payments and that is unresolved at this point. Joining us to talk about what it will take to get a deal done is marco rubio. The nature from florida. Also the chairman of the committee of Small Business and entrepreneurship and senator, thank you for being with us today. Thank you the Biggest Issue is wifi doesnt work in the Senate Office building. We got to get that fixed too sorry i know were dealing with some technical issues we appreciate you being there trying to dienl. Its been tough what would it take, do you think to get a deal done at this point . How close is a potential deal . Well, i dont know. The net worth is close movement look, we want to be, you know, we need to be realistic. Only way to get a bill passed is simple how do you make a bill become law you got to get it passed under the senate which require democrats and republicans to vote for it you got to get it passed by the house. You have to have a republican president sign anything we come up with has to have things that both sides make concessions on and both sides get priorities in. Each side has to move towards each other to get a deal done. Up to last night there was no Movement Toward each other at least now theres been an agreement to say all right we want to get a deal done by ten of this week so we can have a vote on it early next week and get it done. Thats a positive sign a lot of work to convert these divides which is pretty wide on issues like unemployment, foreclosure, Liability Protection and things of that nature we had nature mike braun the republican from indiana on earlier this morning and he said the stick point for him would be if you tried to put any municipality or state money in on that, hes aligning himself with other republicans but leader Mitch Mcconnell has said at this point he may break with some in his caucus im guessing from talking to you in the past and listening to what youre saying right now you might be inclined to go along with a package that some of your republican colleagues might not. Is that true we have to do something the biggest problem here, the worst thing is we do nothing were going to be right back here for example, ppp funds for most businesses have been exhausted youll begin to see at some point Small Business layoffs again as companies ran out of the ppp money. Great uncertainty. They start laying people off. Thats a real thing. Well see it and unfortunately that begins to trickle across the rest economy including the rental sector because they cant pay rent we have to act we have to do something. That will require us to vote for a bill that has things in it that i dont like. Theres a limit what youll take they will pass the 3 trillion heroes act which has all sorts of stuff in there that has nothing to do with this pandemic so, anyway, thats why everyone will have to do something to get what we want which is the nature of a divided government. Senator, what would you like to see happen with Small Businesses in particular we did have a couple of senators on yesterday, senator bennet from colorado and senator young from indiana bipartisan 48people who signed on saying they would like to see very little interest loans that would be forgiven, paid out and backed up by the government. I think they had a price tag of 300 billion in federal money to get that started and see it. What do you think about that plan what would you go along with yeah. Its a very good idea. The problem is we dont even have 300 billion in the entire Small Business sector of the bill weve been all located, what we told we have is a little one 300 billion and that includes about 125 billion of unspent ppp money. We dont even have 300 billion for the whole program not just that specific one. We tried to scale down, for example, opportunity zones and new market tax credit zones, census tracks what we know there are lowincome, Small Business and lowincome neighborhoods have very little money on hand beyond a couple of weeks if at all. So we try to take the general concept and scale it down. Im not against their idea right now we just dont have 300 billion allocated to do it. I also think that it could be a challenge for the Small Business administration to administer something that big a challenge to get ppp up and running. I want to see when it starts up because they need some time to get Something Like that operational. We just havent been allocated the money. Senator, a couple of things couple of other hot stories, if you will wondering what role you played specifically in getting the president not to band tik tok outright and allow these talks to take place with microsoft your name has been mentioned in some reports as intervening. Well i wouldnt say intervening. I gave my opinion. I talked to the secretary of treasury i talked to chief of standpoint. I talked to the president. I shared my view its not that tik tok, the videos thats the problem. Theres 50 second videos are pretty funny videos on occasion. So im very interested its not the video its the data. Data is more valuable than gold. Personal data today is more valuable than gold that data is what commerce will be built on and medicine and pharmaceuticals, everything is built on the difference between tik tok and the other social media apps is by chinese law they have to turn over all of their data to the Chinese Government in fact, their disclosure says so and i dont care where they stoirt, thats a big problem so if a company can be sold or transferred to a company that sets up processes to protect that data from any government coming in and just grabbing all of it because they want it, then i think its fine. If they cant then they cant continue to exist. Thats my view interest. Ultimately look when you ban something outright, make people want to go out more, and there are ways now we have people can work around any sort of block to get on it. But just have a site that doesnt turn over the data to the Chinese Government and a way to do that, to a new owner, i dont care who that owner is i think well be fine. Youre comfortable with the president saying that the government needs to get some payment for giving this deal the go ahead which the president has doubled down on in the last 24 hours. Do you agree with the president . Well, you know, the president is a good negotiator and he drives a hard bargain. If he can figure out how to get money out of a transaction thats great the big issue here i never viewed this as a revenue source. I viewed this as a National Security problem, both long term and in the midterm in terms of their ability to collect data. For me as long as we can do our laws, create a situation where that data is no longer being turned over to the Chinese Communist party thats a huge win. Senator, headlines have been trumpeting the fact that coronavirus cases have come down in florida i read a lot about how many Testing Centers especially those outside have been shut down ahead of this Tropical Storm coming up. Deaths yesterday were reported to be 245. Thats a high number where do you think things stand right now in terms of florida and covid . Well, what happens is that covid becomes a big deal and people start to change their lives. I can tell you im very comfortable saying this, because i was there. What happened is coronavirus fell out of the news for a couple of days when the protests started and all that sort of thing. The reopening, people got comfortable, started going out, started doing things like things were back to normal and the virus is no longer a great threat the virus is still a threat just not as prevalent you saw the numbers surge. The first thing we saw was emergency room visits and then cases and then the hospitalizations and then youll see the deaths weve seen all of those the emergency room visits. Hospitalizations began to track down and the last one that will come down is the deaths. If we reach better numbers the virus is still out there not like the virus is 20 less dangerous, its still dangerous. It is important to learn a lesson from first time we dont go back to normal we go back to new normal until we manger more advances against this disease will require us to do many things differently than we used to do before senator, at the same time, i just saw the numbers in the last 24 hours you have 46 hospitals with zero icu bed. 26 loin have one and there are four counties at zero. How concerning is that Regional Base the numbers will vary. Case numbers are not high or percentages are not high, icu numbers are high and requires them to enter into agreements with making hospitals. Now those numbers generally dont count. That can be converted into icu units. Thats why i dont think youre hearing sort of a state level. And there are arrangements made for making counties to assist in availability so, but, again, the concern is as youve outline any time you have to make those decisions it puts a strain on the rest of them as admissions come down, icu numbers will come down as well senator rubio, thank you so much for your time today we hope to speak with you soon thank you for having me on. Thank you its that time for adps july payroll report Steve Liesman has that reporter 167,000 adp payroll reporting that the july jobs numbers rose by just 167,000 that is well below the estimate of 1 million from the street for the adp number and well below the estimate for the nonfarm payroll number for friday of 1. 5 million. Well talk about who has done a better job ever forecast in a second adp revises up to match the prior one. In the july report, 1,000, just 1,000 job gains in the good sector 166,000 in the Services Sector a little bit better there. By sizeSmall Business did okay up 63,000. Large businesses did okay too up 129,000. Those medium size businesses, 500 employees that did not do well if you look at the Large Businesses its really the businesses over 1,000 employees. The biggest employees that did best looking by sector, professional Services Thread way. Educational services up 46 theres some seasonal adjustments expected trade transport. Some reports banks might be reducing employees for example wells fargo had an announcement. Well see if thats beginning to show up in these numbers lets look at who has done a better job and what you find is adp relative to the wall street consensus both done lousy jobs over the course of this crisis looking at estimates from march to june adp has been right by 7. 5 million jobs but wall street consensus off by 14. 3 million. Friday is shaping up as a really interesting case where more and more wall street forecasters are using High Frequency data to forecast whats happening in the jobs numbers and theev wrong for several months now well talk a little bit more tomorrow about what indicators they are using to try to get it right this time. Ill be raising these questions about the jobs report and the outlook for the economy in a few minutes when we sit down with Richard Clarida. Becky . Steve thank were looking forward to that conversation ill see you back here in just couple of minutes. Coming up part two in our dialogue this morning about what it will take for schools to return in the fall Randi Weingarten will join us. Bank of america said there are many positive for apple but many risks. Stay tuned youre watching squawk box right here on cnbc im pro athlete stylist Calyann Barnett and im here with nicole and miles and were out to find the top looks for day one back to school at Dicks Sporting Goods and so we want to find something thats going to grab everyones attention the variety and selection is crazy bucket hat bucket hat this would be a fire first day fit. Definitely making a statement with that. Go dicks. Whether youre going back to School Online or inperson, get the brands that make a statement. Day one starts here. Reduce the number of children to allow social distancing. Face masks for older children. You have to not use cafeteria where crowding can take place. You have to think through every step of the process and reduce the crowds, reduce the congestion, reduce time that kids spend with other kids and teachers that was dr. Ezekiel emmanuel speaking with us last hour about how u. S. Cools can reopen safely this fall well get another perspective now. Joining us now is Randi Weingarten president of the American Federation of teachers. Welcome. Great to welcome back you thank you. We ready to open schools . I dont disagree with zeke. I think the problem is, the answer is yes, no and maybe. We have been working on this since the end of april and youre finally getting people on the tv to say like dr. Birx, like dr. Ezekiel emmanuel, theres a set of guardrails thats absolutely essential in order to stop a virus from spreading in cool and that requires this six feet of physical distancing, requires masks, requires cleaning and ventilation. Schools never had to do this so even in those places that weve been able to tack tell virus like in new york, new jersey, connecticut, i think that School Districts were immobilized and in shock that they really did have to do all these safe guards to start school and i think that because they dont have double the space and double the teachers, thats when you start hearing about staggering so what i think will happen now is that as dr. Birx even said on sunday that those places that still have high, high, high virus rates are deferral going start remotely but those places that have tackled the curve and have basically 1 , 2 virus spread, Community Spread are really trying to figure out if you can get the resources to actual lly start school in person because thats so important. So new york has a good plan. New york city doesnt have a good plan. And i think that cuomo, the governor tried to get people to create plans by the end of july so the that those plans could be retrofitted, possibly. You mentioned resource. I want you to respond to critics who suggest that you and the union are asking for too much. Youre making it too difficult to get to a point where you can reopen schools by what youre asking for wall street journal editorial page the other day accused you, mentioned you specifically and the union of taking part in what they call political extortion for the demands that the union is making. Frankly, you know, so let me respond directly to wall street journal we have a resolution that we put out this week or excuse me last week that lists specifically the safety safe guards that one needs that come right out of the cdc. We are the moral conscience of what we need to do for schools and if the cruise ship industry could get the bail out that they got and the airlines could get the bail out that they got, kids deserve at least that much what some of my locals and some other locals did on monday was they said with parents that these are the equity issues that are needed to actually confront structural racism. What were saying is that would being a great to get all of that but we need the ppe, we need the cleaning supplies, we need to make sure that buses are staggered. We need the digital work so that kids can actually be online. We need to make sure we feed kids i do not think that that is too much to ask for our children in america. Im looking at some of the reports that are at least on twitter about the state of the negotiations in washington but theres no deal yet on the education front in term of the dollars that are need and how they will be allocated do you support teachers going on strike i support teachers and parents having safe schools. And if the only thing we can do, meaning if after weve tried everything to make sure that its safe, as a last resort if people utilize a safety strike that is to make sure that its safe what we dont support is the kind of denial of the virus thats been going on what we dont support is that, is desantis pretending theres no virus in florida. That is wrong. We already see from israel that when you try to do it, you know, the way in which donald trump wants to do in israel they actually did tack tell virus but he wanted to have full schools thats what israel did they closed the head of the coronavirus work center, it was a total failure. So if the government is not actually protecting people, were going to try to do that. We did not become teachers to be safety monitors. But we have a responsibility to our children teen ourselves to keep people safe what i think about is i think about all those educators, those nurses, the other workers who are saying to our government please we dont want to bring coronavirus home we dont to bring it home to the elderly parent that were taking care of or to our kids who may be asthmatic i think they have a right to believe that and to expect the government to do better than its doing right now there are those who say it may not be perfect, we got to get our kids back to school and their parent back to work. I appreciate your time this morning. Thank you. When we return, an exclusive interview with Federal Reserve vice chair Richard Clarida well get his take on the adp jobs numbers plus what could be a close exchange that could be cinomg from the fed when it comes to inflation. Thats all ahead when box comes back a genius. A genius. And it appears youre quite the investor. I like to trade. Well, Td Ameritrade has pros ready if you need help, say talking through a new strategy. Just in case things, you know, get a little rocky . Im sorry on the upside i think thats waterproof. Maybe not. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with Xfinity Mobile. Call, click or visit a store today. Welcome back to squawk box Rick Santelli here with live breaking news. Our june read on the trade balance is a deficit looking for a number in the minus 50 billion camp and thats what he ended up thats the smallest deficit just since april where it was just a whistling straits cancer under 50 billion keep in mind were nowhere near records on this. Minus 6 billion is the record going back to 1991 so we see that there isnt a huge implication here, if anything it seems to be on the down side which somewhat makes sense. To persistent out one thing. On that adp jobs number definitely light we had a revision of 2 million we got to make sure we concentrate on that as well. Becky, back to you rick, thats probably a good explanation as to why the markets have hung in there we were trading about 200 points when the report hit. Thank you rick thank you. All right. Fresh off this data and especially the adp jobs numbers we got a few minutes ago we have an the opportunity to get an in depth view of the economy Steve Liesman joins us once again with a special guest reporter becky, good morning. Thank you. Were joined by rich clarida, vice chairman of the Federal Reserve and he joins us by telephone because he lost his power. Good morning, richard. Hi, steve, how are you . Reporter im well. Thank you. We had this adp report come in it came in well below expectations is this in line with your thinking about whats happening with the job market. Is it slowing from the gains we saw in may june well get the jobs number on friday we did have some very impressive and surprising payroll trends the last couple of months and some of our high frequent data that we and others have been looking at did show that some of the growth momentum has slowed in july. But i think ill wait until i get the friday report. It looks like the revisions were also positive to the adp i think well wait until we get the numbers on friday. Can you take a step back and give us your broader outlook for the economy . We had a 32 or 32. 9 decline in the Second Quarter your expectation for a strong rebound and has that changed because of whats happened with the vierns july . Steve, as ive been saying for some time now my personal baseline view is the economy of course took a huge hit in the spring. The number not annualized is down 8 which is a huge hit. My own personal forecast well see a rebound in Economic Activity in the Third Quarter data the state of our economy will depend on the course of the virus. Its a complex picture my baseline view is well get a bounce back in the q3 data but the take some time i believe before we get back to the level of activity that we were in february before the pandemic hit. How much time Charlie Evans from the chicago fed said it wouldnt be until mid2022 until the u. S. Returns to the growth rate of 2019 theres enormous range of uncertainty around that. My baseline view is we could get back to the level of activity perhaps towards the end of 2021. But there are a lot of moving parts here with the virus and Global Outlook sponsorship i think theres a big range of uncertainty. I do think Economic Activity did begin to pick up in may and in june and my personal forecast is continuing into the second half of the year. I just want to be clear here. You seem to indicate did you not change your forecast at all given the resurgence to the virus in some of these renewed shutdowns. Did i see that my own personal forecast hasnt because i think there are two offsetting factors i think the economic momentum from midmay through maybe early july was more solid than i expected so thats the good news. The bad news is, of course, the path of the virus. But i also think, although the details are important, it does look like well get enough of a fiscal package from the congress and also that will provide some important support as well. I think if you mix it all together its a complex picture but my baseline view for the outlook has not changed, thats correct. Let me talk more long term here in april you suggested the economy could come back very quickly to where it was because you said there was nothing fundamentally wrong with the economy. As you watch this event continue and drag on, do you believe that theres sort of long term damage being done to the u. S. Economy are you still sort of a supporter of this idea we can snap back to where we were well, thank you, steve. Certainly i think you stated it quite well the longer this drags on the greater risk the there is to longer term damage to the economy. I dont think were at that point yet. I restate what i said earlier, there was nothing fundamentally wrong. The economy was in very good shape in february. The fundamentals of the economy was great. It took an enormous hit. Youre correct the longer this drags on the greater the risk is and thats why chairman powell the fed is focused with all our energy to do what we can to support the economy, balled bridge and support robust recovery on the other side of this let me ask you about something that fed might be doing in response to whats happening in the economy several reports suggest that the fed is uniting around a change to its Long Term Strategy to average 2 inflation over time, a period where the fed allows you to run over 2 whats the status of that thinking and where do you come down on that thank you, steve. A couple of point. As chairman powell indicated last week we did discuss at our july meeting our framework revi review we devoted the entire year of 2019 to a comprehensive review of our strategy. We were very close to getting agreement in february. The pandemic hit and put the review on hold we returned to it in july. Im optimistic well wrap up deliberation in the near future. I dont want to go into particular detail but what i would say the committee recognizes that the world today looks a lot different than it did in 2012 the last time the fed did a sisters review and in particular there are very powerful Global Inflationary force and very powerful forces holding down global rates. If you put those two together it does suggest there could be ways we can define our strategy so that were better able to achieve our objective with a National Plan and price in the stability. Im not going get into where this may end up. What i will say this is an ambitious review and were looking at some important evolutions of our strategy from our existing strategy and ill just leave it at that. Okay. Im not going press you on that because theres some other things i want to skbu. The feds main street Living Program waives big deal that has the ability tloend up to 600 billion. So fair loaned only 82 million your satisfied with the money gets out the door by the Federal Reserve . Is the fed taking enough risk with this money or are you risking outcomes for the economy by not getting this money out the door steve, thank you for that we set up no fewer than 11 new facilities as a result of the pandemic the main Street Program was Just Launched in early july chairman powell indicated this is complex, the nature of sustaining the credit to individual companies i do expect that the size of the program will grow over time. I think the important point, story of a, broadly all of our facilities are meant to be backstop facilities. Weve shown and will continue to show if we need to refine and adjust the program to achieve our goal, well do so. I do expect activity in the program to pick up but, again, were focused on the goal supporting the economy. If we need to adjust our program, well do so one final question, richard yeah. Today was a very big example. The adp number came in well below expectations the market, stock market dow jones up 190 points. Seems not to be really paying attention to fundamentals. Are you concerned that the stock market at its valuations are untethered from whats happening in the economy im not going comment on any particular market. Our focus has been really since the early stages of this crisis is to support the flow of money to the economy in many sectors thats occurring. Thats a positive. Stocks go up and down for a variety of reasons and im not going to get into any particular analysis of that. Okay, richard we have to leave it thanks for joining us there. Rich clarida, vice chair of the Federal Reserve. Becky, back to you thanks very much very interesting interview kind of seeing whats happening. We have some breaking news news out from johnson and jump it struck an agreement with the u. S. Government to provide 100 million dose of its Covid Vaccine candidate. The government has committed to more than a billion dollars as part of that agreement j and j said it will provide at a global not for profit basis for emergency pandemic use u. S. Government by the way can also purchase an additional 200 million dose under a subsequent agreement. The company goes on to say that it is evaluating both one and two dose regiments gives you and idea of what youll need. 100 million dose 310 Million People in the United States this would be used on an emergency basis. That 100 million, your get two doses or one is enough but the u. S. Government could purchase another 200 million doses as part of it stock right now up by 1. 23. The company says that its hoping that it can meet its goals to supply more than a million doses globally through the course of 2021 provided vaccine is safe and effective and scott it is still in phase two, phase one and phase two human Clinical Trials at this point. Scott . Well keep watching that stock. Shares of moderna are swinging this morning stock initially popping after the Company Reported a smaller an expected quarterly loss shares now trading lower you see it down by a couple of percentage points. Company holding its Conference Call now with analysts and investors. Among the headlines from that call, the companys ceo said so far itssmaller volume agreements for its Coronavirus Vaccine have been executed at 32 to 37 per dose. Moderna will be responsible for price well below value during the pandemic well watch those shares as well coming up. Best way to pull the American Economy out of the coronavirus slump. Glenn. H Glenn Hutchins will join us jim cramer joins us now. You got disney to consider and then news about j and j and this vaccine they have been working on disney was remarkable to watch. Didnt realize the cost controls would be incredible. Didnt realize they had a one off solution for a movie that will generate 30 bucks didnt realize that the company has an unbelievable balance sheet. The questions were actually about you guys have too much cash six months ago we were worried about them going broke i think this was a Tour De Force company. J and j. Memo to j and j you make it as hard as possible to get in the trial. Everybody who wants to get in the trial get as many arms as you can get. The government is putting money behind it. What does the market care most about right now, jim . I think theres beginning tube preponderance of the trial it has something that gave you four times of the antibodies, whether its j and j or ultimate sense that the big guys, the big gun Pharma Companies involved are going to succeed some will. Im not including modernas the calvary is coming. I see a calvary. Is it enough where every man, woman and child has to do their part no its like fort apache and get here and well be alive. We have to string things out thats up to congress. You need a deal with congress so we can bridge to when the calvary gets here. There fiscal vary. I didnt feel there was calvary three weeks ago. There is calvary they have to get to us and still got to be alive when they get to us im with you. Im so hopeful that everything we hear with whats coming with these vaccination. Im guessing youre not joking when you say youre trying to get in the j and j vaccination im trying to get up to boston you have to sign a nondisclosure agreement before they let you in. All i know is that people we need you to sign an agreement before we let you in. Up have to fly up twice im total game i gave them all the information. Remember the trials arent run by the company its not j and j some Contract Research organization that treats everybody miserably and stupidly thats fine. I dont mind that. The tyranny of people who think were were idiots because were patients the president think the vaccinations will get here before the end of the year i dont think they will be here by the end of the year dr. Agus is saying look youre actually going to get much earlier results than you realize from lily and thats the nursing home trial one of the things i like about lily, lily is one of the least promotional guys they are hoosiers in the sense of that gene hackman movie they didnt mess around. They are not idol. I think while the president has said this thing has been under control since he decided the chinese couldnt come here, there are Companies Like eli lily were trying to save people were going to hear something by the end of the month not according to lily but according to doctors close to trial. You have a data point in september thats not what im looking for. Novavax is down 17 points immediately. There were incidents of not incidents. They went away after a couple of days well see about tech. Why we got to go to a commercial. Check for the commercial. What do you want its important stuff. All right well see you in about ten as i said just a few minutes from now what do americans need in the next stimulus bill out of washington and how soon do they do that news breaking in the football world. Canceling its football ssoean, first fbs school to do just that squawk will be right back. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Glenn. Welcome back, everybody. Adp Employment Data for july badly missing expectations earlier this hour, but as Rick Santelli mentioned it was revised for the previous month so you have to add all of that together joining us to talk about where we are in the countrys economic rebound is Glenn Hutchins, North Islands chairman. Glenn, its good to see. You great to see you, becky good morning, scott, and shout to my buddy jim cramer boy, are you in good form this morning. Yes, he is. I like that hes trying to get into this trial. Kind of wondering if i can do the same glenn, lets talk a little bit about where the economy is and base this off of what we just heard from rich clarda, too. He says hes still thinking that his opinion on the economy hasnt changed based on the resurgence weve seen in the virus in parts of the country but part of that is because he is anticipating a plan will get passed by congress, signed by the president for additional stimulus where do you stand right now just on how were doing and what we need . Becky, i dont agree with that you and i talked over the months of the pandemic about how the depth of the economic crisis will be determined by the duration of the pandemic and over the course of the month of july especially i know that the markets are day to day and your show reflects that, but over the course of the months of july it was a very bad month for the pandemic the United States has the most cases and deaths in the world, more than the next two hardest hit countries combined which is brazil and england in july we increased the number of cases by confirmed cases by 2 million, double any prior month and 40 of the total recorded for the pandemic. Sevenday average of new cases is 65,000, 66,000, up 50 from may and close and im sorry, up 50 from june and close to three times may death toll up by 25,000 to more than 152,000 deaths. I agree with anthony fauci, this is a bad situation and its because we havent pursued a unified response across our different states so the pandemic has gotten worse. A lot of the projections for the Economic Activity were expecting the pandemic to get better, its because were mismanaged it. Right now weve got 30 Million People receiving Unemployment Benefits over a million filing for unemployment every week, for the 19th straight week, thats unprecedented. The Small Business hiring is slowing down, according to the mckenzie report, crisis is deepening there. Census bureau says 11 of people dont have enough money to eat, 50 missed rent and 50 of africanamericans are afraid of missing the next rental payment. The situation was gotten worse because of the mismanagement of the pandemic and now we have to do something more. What does that mean than we otherwise would have had to do. What does that mean in terms of what you think is going to happen to the economy . Look, i think very clearly its very clearly on a trajectory, a worse trajectory than it was than we had managed at the end of the shut downs in may, early june, june and july have been very poor months largely because of the mismanagement of the pandemic across the southwest and the the very early return to social activity and the lack of rules around social distancing and mask wearing and all of those sorts of things. Right now in the northeast we are in the same sort of period of that the southwest was about six or eight weeks ago we will see if were able to manage the resurgence of Economic Activity carefully as a consequence of these very basic Public Health measures but, again, its requiring local actors to take responsibility because there is no federal plan so i would anticipate the economy is certainly worse than it would have been had we gotten it right and met most of the expectations were about getting it right so i think its actually worse than we would have thought, as a result of which were going to need mother round of relief and my personal view is its very important we played politics with the reopening, we should not play politics with the next relief package. So it needs to go back to the very basics about giving people support for Unemployment Insurance, rent relief, help from the states and cities who will continue to suffer and by the way i think the last thing we need is another round of broadbased stimulus payment to people whose incomes who have not gone out thats getting checks to as many voters as possible yes, i think a new plan is important, unfortunately it need not have been important but it is, needs to be broad based and needs to be as apolitical as you can get in a political season. Glenn, its scott hello, scott. Good so see you again given everything that you just said, what do you make of the fact that the stock market is where it is and your proximity over the years to technology, specifically that tech has done so incredibly well is it too concentrated, though, now . Look, i think that some parts of the economy are having, quote unquote, a good pandemic and the technology industry, which has been focused on being which has more capacity to do things virtually is obviously taking a huge amount of market share all across the economy, everything from what were doing right now with remote communication, very large parts of the economy are not doing as well. The stock market as i said earlier its a day to day thing. You can have good days and bad days but in the larger perspective but remember one of the major things thats happened in this crisis and its something the fed, i think, did very well not for this purpose but for purposes of addressing the underlying economy was to put a huge amount of liquidity in the markets that has caused prices the price of risk to change and driven the stock market up enormously so you have the combination of the outperformance of the Tech Companies because of their having, quote unquote, a good pandemic and the significant reduction in the price of risk as a consequence of all liquidity driving the stock market the stock market disproportionately being driven by the Tech Companies. But that liquidity is about to reverse itself, the Treasury Department has announced that its going to be borrowing it expects to borrow roughly 2 trillion in the back half of this year, in other words, the Liquidity Program the government will now be putting more treasuries into the market through the Treasury Department than taking them out of the market through the fed as a consequence the liquidity flows revert, this is stan druckenmillers i think serious situation. You will see a movement away from reducing liquidity and increasing gradually over the course of the coming months the price of risk. Glenn, were about out of time very quickly we have 20 seconds left does that mean you think that multiples may come down for some of these Technology Stocks just based on what you just laid out . I think not the Technology Stocks, i think the parts of the market liquidity will go in a period of less of less limited liquidity liquidity will go to the winners even more. You can see the Technology Stocks doing better and the other half of the market suffering would be one way to think about it but i dont make stock market predictions as you know. I know. We are out of time always love these conversations and we really look forward to having you back again soon, glenn. Scott, thank you i will see you back here tomorrow. All right, becky. That does it for us today we will see you tomorrow right now its time for squawk on the street. Good wednesday morning, welcome to squawk on the street, im Carl Quintanilla with jim cramer, david faber futures are solid coming off the nasdaqs 30th record high of the year watching vaccine news, stimulus talks, big miss on adp but revisions were up. Coming u