That we are looking at, much like we did yesterday where we were talking a great deal about the possibility of a new record even intraday or all time on the s p. Yesterday it was that bizarre russian vaccine news and i think we can all term it bizarre, but today its moderna signing a deal with the u. S. Government which is signing a lot of deals to make sure that there is manufacturing capacity in place to deliver a lot of doses of a vaccine if and when it does get through phase three trials into i was listening to meg tirrell this morning and i was looking at an email how much is regeneron getting. 500 million in july i would say, david, is there any amount that you wouldnt spend on these companies to get this thing beaten because if were spending 2 trillion to just try to stay in place we have got to flood the market with money. Make it so its worth wise for everybody. I have emerging bio tonight, they would be helping making a lot of these giant doses and i dont think i think that you have to encourage these companies. It is really important, novavax getting a lot of money i want to see j j and pfizer get the money but they have to do it, david they have to and they all will i think this he all will operation warped speed which is the name that the administration has given to trying to develop a vaccine and antivirals and therapeutics as quickly as possible, theres money for all of them in terms of manufacturing and the department of defense has contacted many of them they are choosing in some ways winners and losers i reported i think it was last week, again, im following the merck compound very closely on the antiviral side of course, that has been offered as well. Of all of them its my understanding to money from operation warped speed but your point is well taken which is we need to be in a position when one of these if not all of them we can hope work to manufacture at scale very quickly. So were seeing something unprecedented which is the building up of manufacturing capacity before we even know whether there is an efficacious vaccine and or antiviral. Its extraordinary. Extraordinary that j j is committed to not committed but spending money to deliver a billion vials of something that we dont even know if it works you and i have seen many Different Cases where companies have spent a lot of money on a drug that didnt work, vaccines we know are very, very hard to make its encouraging, i want to see as Many Companies involved, but, david, in the end youre right, its going to be the antivirals thats what were going to get first and thats because you dont have to do these incredibly long day by day trials look, russia did the opposite. Russia basically said, okay, were giving it to people. Thats not the american way. Its not the american way since falidimde, being a horrible something that the fda approved for what is now basically revlamid a terrible drug for pregnant women. We dont want to do that we dont want anything to happen to people. These are Healthy People that are getting this. I know. Exactly. Theyre Healthy People which is different, again, than these antivirals where youre sick, have been exposed to somebody who is sick, you have a reason to take it and if they work obviously will be a key potentially game changer in terms of the course of the virus and how we approach it in this country, jim for a vaccine you are not sick so you dont want to get sick. No. Im going to try to get the j j. Im totally conscious. I think every american should try to get in these. Why . Because we have to beat this thing. Treasury secretary mnuchin can come on all he wants, spend all he wants, but we need an antiviral that makes it so we can get through this period and then a vaccine so we can be eliminate this period. But eli lilly is in nursing homes, merck is with people who are sick and thats the hope, regeneron with people who are sick we have to differentiate between vaccine and people who are sick because its very different. Meanwhile, lets move to the real economy for a second because of course all of this would have the impact on being able to actually regenerate real Economic Activity in a significant way. We talk to often, its all weve done for these last months now in terms of the divergence between the performance of the stock market and the economy and it gets us back to washington and where things scan if they stand anywhere in terms of a new relief bill. Anecdotally here talked to a friend of mine in chicago yesterday at a im not going to say which hotel, a major hotel in the city center, 15 people in the entire people. 15 not 15 rooms, 15 people, jim i mean, lets not lose sight of where we stand right now and the continued concern about states ability to withstand huge budget deficits and have to make huge cuts and the cities that have suffered dramatically across the board across this country. I was looking at a note for blinker which a lot of people like, a good company, good restaurant and here they go, theyre very happy because theyre going to lose 25 to 50 cents and chilis their main brand is minus 10. 9 comps. These are extraordinarily bad numbers, but in this era of the pandemic were thrilled that people still go. I had don wood on last night who is the ceo of federal realty, the largest shopping center, thats open all not mall which is harder and thats david simon, simon properties. Theyve got restaurants and they are expanding and you can do it, you can go outside, but, david, come the small we have a new wave of covid, come the tall its too chilly to be outside. That is the argument against going with the industrials, going with the banks and instead sticking with what we all know are the covid cramer covid19 plays. David, this battle is going on i actually last night said you had to increase some of the industrials. I went on twitter last night which of course im taking my life in my hands anyway. Roundly criticized for thinking that perhaps a Union Pacific could rally here even though they have already rallied because people believe we are not far from the Promised Land david, the Promised Land is far but you may have to invest in it. You mentioned we discussed yesterday of course the significant rotation that we saw in the market to some of those names and how long it would be sustained. I mean, jim, coming back to the real world again, given i have schoolaged children and so many friends who do, i mean, this is a continued concern. What schools will open what wont you may have seen a number of major universities going all remote not having kids on campus. We know about college football, what were seeing there in terms of i think its, what, the pac 10 and who else, jim you know it better than i do this is coming very soon. Go big 10. We are not going to have a lot of kids or as many as we hoped all back in class. That is a huge, huge impediment to life getting back to normal. Lets take davis square lets take davis square in boston this is an area that has i happen to love it there, since were talking about tufts, obviously. There are, i dont know, what, about 100 businesses that are adjacent because of all the students or where my wife is on the board at bucknell, probably 100 businesses adjacent to students. Or Harvard Square which is right by there, too, which has even more. The customers and retail. I remember that Brian Cornell told me they were going to expand, two notes today positive on target, have small target formats to where there are colleges holy cow, david, no customers. What do you do target fortunately spent more time doing urban and it worked out, but i just feel that we are underestimating what will happen to whole cities where the cities are directly involved with the University Thousands of people and what happens when you have thousands of people do not go to big 10 games . I mean, this is america. I saw the president tweeting we should play football obviously we would love football we are a country where the big commerce elements happen to be when we gather and, david, we cant gather i dont know what happens. Im watching them talk about how people are gathering at a shake shack in china they have that ability because they put down the virus. We cant gather but we are a gatherer country we are. We are and of course obviously college and universities is all about congregating as well jim, i want to take a quick diversion here to talk about my friend Sumner Redstone who passed away at the age of 97. Your friend, thats important. You knew him better than anyone in the media, im anxious to hear what you had to say because he was a great man. We spent a lot of time together through so many of his active years putting together the company that we today know as viacom, cbs i enjoyed all of those times, both when the cameras werent on and when they were and i will miss him obviously he has not been in the public realm for some time and i have not spoken to sumner in quite some time. He does passed away at the age of 97 leaving a very big family as well. I think we have a statement from his daughter sherry who has obviously taken his place to some extent at least although she is not running viacom, cbs in any way the way that he did as ceo for many years. My father led an extraordinary life that not only shaped entertainment as we know it today, but created an incredible family legacy. Through it all we shared a great love for one another Sherry Redstone goes on to say he was a wonderful father, grandfather and greatgrandfather, im so proud to be his daughter, i will miss him always. David, how involved was he in terms of the split of cbs splitoff because it didnt work and i had found until that he had the magic touch. He did. You know, he and i had discussed it many times in terms of whether he acted rationally at the time because he was frustrated with the stock price or perhaps because he wasnt ready to make a decision on one leader for that business and youre right, remember, he had built this company, first by the leverage buyout of viacom in 1987, i believe it was, when he was just turning 60 years old, he sort of began his public career really as a media mogul, moving from there the acquisition of paramount, the big fight with barry diller that he had to acquire that business i think it was over 10 billion. I remember covering it for cnbc at the time, although then mr. Redstone and i did not really know each other. We would get to know each other quite well in the years to follow he bought blockbuster, then came cbs, then came mel carmizen. That was not a great marriage. Then so many other so many other things along the way so many fights so many battles, jim, but youre right, the split was something that was contentious and i did ask him during one of our interviews about whether he had a shortterm focus to the detriment of the long term here is the back and forth do you think that you hurt your own ability to think long term by being on the phone every day . No. Getting quotes on the stock. Im not getting quotes. You are running the buy back. Im buying the stock buy back, were buying a lot of stock. Thats so short perm. Why no. What do you mean why . Is it 35, 36, 37. Wait. We are not buying the stock to drive t were buying it because its so cheap. Some of those favorite words, of course, buying it because its cheap viacom is cheap. Viacom slt greatest stock in the world, the greatest company. Of course, felipe was not the greatest ceo and that was a decision i think that sumner eventually came to regret of course the man who ran viacom for many years benefitting from an enormous buy back using that cash flow but not really positioning the Company Properly for the digital future, jim. David, but contrast him with really a man who i regard as a great american, jeff [ inaudible ] when confronted by me and you and talking about what can happen with that stock talked only about the long term. I know i wanted him to take radical action and he just which would have been similar to what redstone did and he dismissed it, but he created tremendous value before riding off in the sunset. Very different people. Yes, very different people. That said first of all, mr. Redstone was an extraordinary intellect, i dont want to forget that. Graduated Harvard Law School graduated Harvard Law School. Est that the best school in america. Yes, somebody who went. Was a code breaker during world war ii he could speak japanese. Could he do navajo, too thats incredible. He was a code breaker, a great pianist. He was in many way just a unique individual was sumner. Youre right, he was very focused on the stock price day to day to day, focused on it being a reflection of his own performance to some extent he did tell us content is king, jim, and you and i certainly still believe that and in many ways i think that will be one of the things that we most associate him with, that quote. You remember, david, when we were shocked when netflix passed the market value of these companies and we thought a that netflix was wrong, it couldnt be and it turned out netflix was right. Now, was sumner was he proficient during that period when netflix took off . Yes the landscape has changed dramatically, but i do think that the quote content is king will live on many years and certainly we are saddened to hear of the passing. Dave, you know what the one constant is here, you look exactly the same. You know, he argued with me about that because he loved this diet that he was on, he was determined to live forever he once told me that he would, you know, miss me when i was gone but he would say a nice goodbye for me. Oh, my. Cryogenic. But that was sumner, man. I mean, that was sumner. Listen, a guy who hung from the side of a building during a fire, right . Nothing could stop him he was relentless. Sumner redstone, dead at7. 9 i cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. 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. Welookentertainmentourg a wayexperience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Shares of tesla up sharply in the premarket, announcing a five for one stock split they wanted to make their shares more accessible to employees and investors. The split will take effect on august 28th to shareholders of record of august 21st and it will begin trading on a split adjusted basis, jim, on all 31st i can remember back in the 90s when a stock split would be enough to send a stock up dramatically we need to tell people its not changing the value of the company, its important, particularly for the uninitiated. It doesnt mean the value has gone up. Its just more shares, or yeah, more shares at a lower price. I always used to use a pencil when i was on tv where i would split it in half and say do you really have more pencil and the answer is obviously not. David, we do have a cohort of investors who genuinely have seen only these stocks that are 1,000 stocks except when stim cook split before and tim cook splitting again and it turns them off we should say it doesnt, they dont want to buy one share. Look, this is not like going to a mall and buying some great italian jewelry and if they split it 100 pieces it would be really terrific. Its really something that is daunting for individual investors. I am all for the split, i am not for buying the stock ahead of the split. I just like it because these new investors that have been brought in of late and how they would really want to take part in a tesla or an alphabet, for instance they just amazon and they just feel like, do you know what, this one i cant do, the same way berkshire couldnt do it a lot of the companies when i speak to them say the big constitutions dont want it because they have to pay more Commission Per share i think thats nonsense. The best shareholder you could have is an investor small person who wants to stick around. I am all for this and my view is its creating value. It is bringing in new people which i think is fantastic for the dinosaur collection that you and i have become. You are a stega, i like to thin im a we will os raptor. It can happen. We are not talking about dinosau dinosaurs. It is a revitalizing thing. We want them to participate in the capital markets, we want them to actually understand whats going on and to understand the underlying metrics of what values a company and how things work, but, yes, without a doubt. And its funny, jim, i almost have lost sight of the fact that google is 1480 and amazon is 3080. Its a price tag people cant get used to so they dont buy and therefore they miss the run from 400 or 300. I applaud these people and hope that jeff bezos watches and says, all right, i want some of those investors, too tesla going to be up. We will keep an eye on the others as well i think we will have a mad dash on the other side of this, counting you down to the opening bell as well, nine minutes from now, looking for a higher open re mi rwkn e ua oth stetcongight back. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Its wednesday or as jim and i like to say hump day and theres a look at how were going to open a few minutes from now. Stay wh osawonhe street. K t announcer the opening bell is brought to you by nuveen. A leader in income, alternatives and responsible investing. Lets get to a mad dash. I get you are a gluten for punishment with this name, jim, in terms of discussing it, its always been a Battle Ground hasnt it. A stock that came public in 1999, plug power why i bring it up is because its a popular stock among younger people people feel just like ev we can talk about nikola, this is one about hydrogen they bought i had them on recently, they bought two companies, one is a hide dren Merchant Company and they have a Hydrogen Storage business. David, this had adjusted ebitda positive, you like gaap ebitda, didnt money make any money. I think this one flies why does it fly . Because this is not the old plug power. They do have they have forklift businesses with amazon, home depot and walmart, but this is kind of the market as we dont know it but many do know it a 10 stock that could be the next novavax, the next sorento, thats what people are in for and im saying we must get used to this, i had plug power on because the new people deserve to he no the facts and not just the chart. Okay. Why was the stock looking down as much as 9 before you began talking . This is a pretty big slug of stock and they need the money because they made big acquisitions and i think people dont understand a lot of the younger people dont understand you can do an equity offering, a lot of the cruise ships did it american air did it. If you wait long enough and the business turns around its a pretty good thing to buy in this case plug powers business is growing and so i think you want to watch it to get the temper of the times not recommending plug power recommending watching plug power. If i want to recommend something you know i have to wait until midday because everything is up so much it is a little taking your life in your hands to say today is going to be the recovery day versus today being the day where we buy the covid stocks i use wells garg goe as the recovery stock and i use nvidia even though its not really involved with covid, i use that as the great momentum stock that benefited during this period as you mentioned yesterday the best acting stock nvidia, right, the best performer and a name to be, you know, i always like to come back because you get so much grief sometimes, jim, that youve been a proponent of that and amd for years. My wife says incredible creators of value. Forget the criticism. David brings us the stocks that you got right so thank you, david. Of course, she does know i have a show she does know i have an evening show but she happens to like you very much. You know that. She thinks you are a great guy. I do. I do and i like her as well i like forward to you two getting together again and seeing each other more often. One day jim, there is the opening bell this morning, you can see the nyc of course and that is our realtime exchange back at headquarters also a tribute on the nasdaq to Sumner Redstone of course who passed away this morning at the age of 97. Life and legacy of course having built viacom, cbs, whose headquarters by the way, viacom right across the street right there on 43rd and broadway unfortunately, jim, back to our conversation about the economy, many of those Office Buildings remain lightly populated even though you can come back so many businesses not sending people back, so many businesses not talking about sending people back really now until the end of the year, weve made note of course of some of the Larger Companies have said you can wait until next summer. It continues right now even though many people might be antsy to get back to the office and there is the economic toll on so many of those businesses that rely on people coming in and out of Major Urban Centers every day. Im glad you mentioned it because i think there is a perception that as jamie dimon said yesterday on the today show, look, you want everybody back wanting everybody back and getting everybody back are two Different Things there are lots of people who feel that they are at risk that dont want to go back. They dont want to touch the elevator button, they dont want to be in the elevator with other people, they feel like they can wear a mask and others can wear a mask, people are too close to each other yes, youre absolutely right one of the things i talked about with don wood yesterday, he has mixed use, also has offices, too, and hes trying to fill the offices. David, it is something to behold that people found that it was really easy to work at home and by the way do you know whats not talked about enough, its cheaper. What . Its cheaper to work at home for companies. Yes. And theyre finding that out and they want to get out of these leases and i think its important to recognize that its a beneficial thing for a lot of companies to have people work at home because of zoom which is the stock that has been under tremendous pressure the last few days as people feel that we are in the recovery mode obviously zoom cant do as well if we are back in recovery the stock cant. But the world is changed the world is changed. It has. Its great to work at home if you have kids, its great to work at home if you want to catch that game if we ever go back to having kids go to school and its not so great to go to work at an Office Building in a time when youre worried about germs. That is true. That is all true and that is why i think, jim, you and i may agree that it may be until we have a vaccine or effective antivirals that we dont see en masse people are your honor to their office places even though i think many people are getting tired of this just anecdotal, talking to the people who i speak to who allocate capital, deal with people, whoever it may be throughout the course of the day, im getting the, do you know what, five months is plenty, im getting tired of this not everybody, but more and more from those early days when people were sort of very refreshed about it. I saw one of my best friends who does contracting work for me, contracting work with me last night and i wanted to give him a hug and then i realized, hold it, pandemic, stay away enough enough i mean, there are people i want to shake their hands, i want to give them a hug. Yes. And of course anyone who is sick or anyone who has lost a relative, i mean, thats far worse, but i know that there is a sense that, okay, weve done this, lets move on, but you cant. No, you cant and its funny, you know, that argument about the commercial real estate was, well, they are going to need to space workers out more but im getting more of the sense that nobody is coming back in full until there is a vaccine. Its simply going to be to your point trying to lesson their footprint because now they know 20 parse, 25 of their workforce at any one time with effectively work remotely. You do have to wonder about the future of commercial real estate at least for the near term. I think commercial real estate thrives on mass transit and my friends who again, its anecdotal who went on mass transit are done theyre not coming in. They think that mass transit is an incubator and the part of the country that doesnt have mass transit has had far fewer deaths that may be true although recent studies indicate, for example, the new york city subway where everybody is wearing a mask there has not been signs of transmission at this point, i think youre right, fear will dictate, fear will win out, but in so many things where we try to get to the facts here, jim, they may be somewhat different than the reality. Youre right. I should say the reality may be different than the concern. Aerospace, airlines, since masks, david, you dont hear about sickness because there isnt sickness. Nope. But when you bring that up everybody wears a mask. How could they not be the incubators, the answer is people wear masks and now there is still a mask debate, i say that slower than other things, but when youre with someone like from owens and minor which is one of the largest makers of masks, they have the halliard mask, looks like orange on the top and white on the bottom which makes you look like a duck which is funny but theyre n95 the ceo said two masks, no death. Its Pretty Simple there are people who rebel and they their cause they are they are james dean they are truly rebels without a cause. They are. And we can just continue to encourage people as we watch thankfully the infection rate start to decline in hot spots in the country. Jim, lets talk about the markets a little more focused here the banks we put them up there, they are val seeing today. Extraordinary. Wells fargo amongst them. At the same time Morgan Stanley is positive for the year that may be the result of their fortuitous acquisition of etrade whose business has never been better. Right. As well as the differentiation of their business versus a goldman sachs, for example. Market cap of Morgan Stanley now 10 billion more than goldman sachs. Thats incredible look, we have to james gorman has put together a franchise that i think deserves to sell at 1. 3, 1. 4 book. David, it doesnt have a lot of risk to it goldman is at book, its a dry cleaner, they take the stuff in, put it out, they have the marcus business which is going to be good jamie dimon yesterday telling you that business is quite good. We dont know yet from Charlie Charlie sharp has inherited a franchise that would we ever realize that isnt it incredible that it is by far the worst . Wells fargo, by far the worst. Yes, by far the worst. By far the worst. To the point where i worry about what can happen but i think its a coiled spring, but this move is about fewer defaults and that has not its not true its not true. What do you do, david, if you look at the actual eight case, if you look at the actual businesses and the defaults are piling up and yet the stocks real, what do you do i dont think you buy them, do you, jim . No, and thats why you buy Morgan Stanley because they dont have that risk its true that the assets go out the door every morning, but gorman has reinvented the franchise. I am suspicious of that move, but i do think that momentum is an extraordinary thing and the momentum into the banks is almost as if theyre saying they have to play catch up, not unlike the autos and i struggle with the that once again i think that the big Growth Stocks that are involved with being at home are going to go down i just think they are. Theres not enough capital for both, david. Theres just not. Right although this morning with the s p up almost 1 and getting awfully close to all time highs, jim, we do have sort of a broad market rally we do have the growth names. We have apple rebounding, we have facebook up 2 , amazon up 1. 2 . Right. We are not seeing that diversion we saw yesterday or what we call rotation where some of the cyclical names are benefitting as you pointed out perhaps for a short time it would be but today it is more broad based. I have my tells fastly, crowd strike, z scaler, ring rental, these are companies i have quite a bit and their stocks are turning red and octa is probably the key, that is the one that sells at 30 times sales, david i look at those stocks and they tend to be they are the leaders in terms of whats going to happen. I know i want to follow faang but its octa that tells the tale as strange as that is but it is a 30 billion company and it is involving if you have to toggle between various spreadsheets and microsoft versus google if you want to if you have to toggle between which is like a younger persons job obviously, then you use octa which is the passport on to the web, its a 24 billion company. Keep an eye on it. It has led the market down and then it tends to affect zoom videos. It trades at 30 years worth of revenues right now. Yes. Thats what its being valued at. Right. But obviously we expect those revenues are going to grow very, very quickly are you questioning at all its growth rate . Todd mckinnon is fantastic and you need the product, its a necessarily. Im not questioning his growth rate, im questioning what we will pay for the growth rate this is a best in show company that has been a leader i know we want to say facebook is the leader and im interviewing Sheryl Sandberg today the coo but the one i keep an eye on is octa because it is the envy of everyone in Silicon Valley and doesnt get talked very much. And always a good time to promote our Small Business playbook you can see it of course and learn more at cnbc events. Com Small Business playbook. She recall sandberg is coming on when this is an event that is you subscribe to im interviewing her 3 45. Its today at 1 00, thats you doing the interview. Got it. David, i think that its very interesting while we bring it up that facebook was the flash point for biden, for harris, both of them have questioned whether it is it should be broken up and its very interesting because obviously harris is actually close, fairly friendly terms according with facebook coo Sheryl Sandberg and i think its important to keep an eye on who wants to break up what because the democrats obviously dont like concentration of power among tech yeah. Jim, its been a little while since i mentioned spacs given the well, i mean, like everybody has got one at this point, a spac and a dream. Right but navarro, by the way kodak was not his spac that was being facetious. It was not his spac. Yes. We were being facetious when we talked about kodak which did have an Earnings Call yesterday, not much to share for what came out of that in terms of the prospects from getting that loan from the dfc or whether they have a shot at it. Didnt hear too much from the company he is exec chair, he is ceo of a different company. Its kind of fun mcdonalds used to look into things like what happened with easterbrook and hes giving stock and they didnt bother to get the emails, they didnt look at the email those were things david, the justice the sec is the sec going to be canceled by the way, its the pac12 and the big 10. But the sec when they think of it being canceled is it the one in washington or is it the one that has the really fast guys that tend to get drafted . I got the joke. I got the joke no will they look into this who knows. I just came back from california and my arms are tired. The politicization of so many things are unique in some ways, others will argue with that, come back to tiktok and microsoft and whether another company would emerge there. That deadline is coming up. What i continue to hear on that, jim, is the difficulty if you were another company, well, does the cant like you . Do you have a shot could you Pass National security clearance . What will come up . What will you deal with . Its somewhat unique [ inaudible ]. On the spacs you have the billy bean pricing tonight, i think its half a billion dollars. Small ball . Whats the name . Its red bird, right . Red ball sorry. Red ball. Red ball. Red bird is actually cardinales fund, but they conceivably will be looking for opportunities to almost take a sports franchise in some way public its possible or merging a data business in some way or getting something along those lines public there is a look at beane they will price that deal tonight. There may be liquidity needs among owners of teams you can imagine, jim, given the problems right now in terms of not getting any tv revenue. You are so right. We havent even talked about Interest Rates going up. Still the rates are low enough david, thats brilliant. Yeah. Thats brilliant. Theres got to be teams, small market teams that rely on it yeah, red ball. And then also dragoneer, private market investor in alibaba, lazian, is that how you pronounce it data dog they both missed the quarter so to speak. They did not blow the numbers out. 60 million shares at 10 bucks for dragoneer. Dont forget tontine. I know somebody else keeping an eye on them and thats bob pisani keeping an eye on the broad market. The spac business is just amazing how its blown up and its obviously people are seeking other sources of liquidity and the spacs are providing it doing a great job covering that, david. Its been a great open, six to one advancing the declining stocks, breadth has been expanding thats one of the bull arguments weve been seeing, slight value tilt again today but not great. All 11 sectors opened to the upside so banks are up, energy are outperforming, industrials doing well, tech is doing equally well apple is supporting the dow, all five mega caps opened to the upside, health care is lagging a little bit still a value tilt but tech participating, you get a powerful rally whats going on in the last 24 hours . We moved 50 points yesterday, 30 points in the overnight. I dont think the narrative has changed. Im struggling to say things are different. I dont see it i know theres question about the stimulus we dont have a date for it but the deal is coming the market believesthat. Thats the most important thing. Everyone believes the fed is going to do something in their september 16th meeting, maybe even talk about some expanded qe program, a lot of expectations around that. Earnings have been largely above expectations weve been talking about these 22 beats for most of the s p 500 thats amazing. As for Everything Else Economic Data has been above expectations as well. The valuations, yeah, the bears are right, its an expensive market, were trading at close to 20 times 2021 numbers 20 times one year ahead of us thats an awful expensive market and the bears have a point about that you want to see what the market really wants, they want to hear, yeah, things are lousy but are Getting Better blinker is chilis, a restaurant chain, Comp Store Sales down 36 but that was about in line the numbers themselves better than expected and the guidance for the following quarter, the quarter we are in now generally a little bit better than expected yes, things are lousy but Getting Better, thats the central story, thats eats story and that is the central story for the market and why it keeps holding up so well the rotation story, i dont know, its a little bit overdone i think. Weve seen in the last few days the banks, industrials, energies have outperformed, tech has underperformed, okay, only the last few days. Whats led the rally is Technology Stocks and some Consumer Discretionary like amazon, for example, thats the big mover here, but tech is the big mover overall and particularly mega cap tech we keep emphasizing how important those top five stocks are. Since the top february 19th amazon 42 i cant emphasize that enough and how important that is in moving not only the sector but the overall market look at the big moves up in the big cap tech names here. Whats lagged the rally i know we are excited about bank stocks moving in the last four days, but, look, industrials, banks and nrjs have been big, big laggards overall david, there is a big question about what it would take to get money out of tech because the big money is still in technology clearly. Maybe if the fed would disappoint, maybe if we got imminent news of a vaccine tomorrow, maybe something would make a difference to dramatically broaden out, but for the moment the big money and volume still remains in technology david, back to you. Bob, thank you. Bob pisani from bob to rick lets check in on fixed income markets this morning rick santelli, take it away. Good morning. Good morning, david. You know, we had our second of inflation data, ppi yesterday, cpi today both were hot. Clns price index personally hot up. 6 on headline and ex food and energy you can see on this 24hour chart weve been moving higher pretty much for the last several plus days. Remember that on the 8 30 eastern number we were a whisker shy of 69 basis points, open the chart up to midjune if we would have stayed there and closed there it would have been best close since the third week in june but as it stands and you see on the chart we are hovering at best levels since july but we are losing ground. We have a ten year note auction today at 1 00 eastern i will be covering tens minus 2 spread from july 1st. This spread is really starting to steepen out over 50 basis points deep an eye on it if it gets above 53. Finally july 1st start of gold, it was four sessions ago it made its all time high close at around 2 organization 069 we have saved 100 off and it has nothing to did with inflation or the dollar just logistics of where all the trades have been located. Jim, david, back to you. Rick, thank you rick santelli. As we give you a look at the market here we will head to break. Jim and i on the other side i want to talk qualcomm if we get a minute because an important victory in an Appeals Court there that is worth mentioning this morning a lot more squawk on the street. Coming right back. Welcome back we did want to look at shares of qualcomm it was such a tumultuous year for that company, but one of the keys was that loss in court over that ftc case that ruled they had monopolized the use of their chips. They got a very favorable ruling in the peals Appeals Court, that were anything more than lawful attempts at profit maximization this was so overlooked by the analysts i thought this was gigantic. This has always been a patent situation. We know that mallonkof is more of an engineer type than a salesperson, but whole cow, what a move there were people wanting to buy it yeah. Listen, i mean, they were involved in so much litigation through the years. With the chinese. So many things. We were talking about Government Intervention lets not forget when cynthia said, no, you cant buy qualcomm and ended their hostile bid, but it ended up being a good thing for the shareholders those are new recent highs and the just say no turned out to make a lot of money for people, which is not usually what we see. I remember david going to a fabled dinner with and some of the representatives. I thought it was a done deal for broa broadcom, what was it an 1840 bottle of wine [ laughter ] all right. Jim, were going to take a qckui break. A lot more squawk on the street right after this whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. And im gonna eh, eh, eh. 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. Take a look at the gainers this morning you can see, led by tesla, of course, with the expected split coming up toward the end of this month. Liberty global also a big winner this morning, making a tender offer for Sunrise Communications we have a lot more coming right back. Lets get to stop trading with jim. Penn National Gaming is a company that a lot people felt when football like the big ten and pac12 would withdraw, it would hurt the stock notice its not. I did reach out to him about splits, and he says the more splits, the more stock, more, more, more of everything this is david being tongue in cheek. I want people to realize, you can follow him hes not saying hes the great investor he has fun, he likes it, but most importantly theres a big overlap between stocks and the sports book, and penn nat is doing quite well tonight i have cisco after earnings, and ebs and then jcom, it looked like they put that short to rest thank you, david jim, thank you, my friend ill see you back here tomorrow. Lets get started with the 10 00 hour of squawk on the street. Carl has the morning off, as we keep as eye on the markets technology, jon, sort of, well, we see it right at the bottom there, leading the dow at least high other as well, apple, for example. Tantalizingly close for those long on the stroke i remember, guys, not too long ago when apple was approaching 1 trial won and people were talking about the law of large numbers . The laws been broken apparently 2 trillion, next it will be 3 trillion before we know it if it continues well see. If it does continue. It does today, but we are talking about a much broaderbased rally. The likes of caterpillar today were seeing the banks off, but were seeing the Big Technology names lead once again. I want to talk more about the Broader Market and bring in david herro. Know your focus is in part on overseas, but give me your tack on where we stand in the u. S. I think some of the trends you see in the u. S. Are true globally you mentioned recently the underperformance of the value and the old kind of industrial business stocks versus the Technology Stocks, and of course the last couple days, just reversed a bit, as a Value Investor of someone who prices businesses based on cash flow streams, clearly we think this trend has a long way to go that is the trend towards companies that really have visible good longterm earning streams that are priced at ridiculously low prices. In fact, its probably amplified when you look at european industrials and financials, this trend. To us this means opportunity for investors. If youre a trader, its a different story. If youre an investor with a two, three, fouryear time horizon, this is the time for buy these quality businesses at low prices, whether they be in the u. S. , or whether there is accuse undervaluedness in europe tell me a bit about europe. Its not something we focus on quite as much. What are the multiples in some of the industries that makes them, in your opinion, cheap if you look at the Financial Sector in europe in particular this is whether were talking about shuns or banks, Assets Managers were looking at valuations very, very similar to where they were, 50 , 60 of book value,s as where they were in 08 and 09. Yet this time around we have a much, much stronger Capital Position now, the stronger Capital Position does mean lower normalized returns, lower normal return on equity however, on the other hand, they have become less dependent on interest income, more dependent on such things as Asset Management feels, selling insurance, trading, et cetera, which has given them the opportunity, despite the low Interest Rates to grow their earnings were growing earnings we have the capital where its supposed to be at and you have valuations at or below where they were in 08 and 09 i think this spells a real opportunity. The only negative that i can see is that dividends for european banks have to be forgone into early next year. The ecb wont let them pay the Insurance Companies could pay, but europe kwan banks cant pay their dividends yet. David, im curious about the gdp declines about 20 and whether that indicates a potential bottoming of the economy over in the uk, and where you see pockets of opportunity elsewhere in europe. Thats a really good question to highlight this. The uk came out of the covid lockdowns much later recall Prime Minister Boris Johnson got covid and struggled for his life i think that had an impact the rest of europe came out in april and may. Kids were going to school in germany in late april. Because the uk waited so long and things were shut for so long, you see this reaction today. Now, this just means that the recovery, if you look he at the data of the manufacturing starting to perk up, even some of the retail sales are starting to perk up, i do believe there would be recovery there, but its lag versus the end of Europe Europe opened in many instances before some of the big places in the u. S. Did this is why were seeing better Economic Data and better Employment Data than even in the United States on the continental europe, which gives warmup a further reason to be positive on some of these beatenup continental upian Industries Like the industrials, like the financials were starting to bound pretty strongly out, but the share prices have barely moved up. They moved a bit, but not at all reflective of where our valuations you are today. David, as someone with an eye for value on a global perspective, im curious what you do with tech near. You got out of apple in the last quarter, i believe, but it seems like you make a decent case for alphabet. We still own some apple, but youre exactly right, in some of or portfolios on the domestic side we still own google. And alphabet is a value stock. When you look at the strength of their Balance Sheet and take the cash out of the market cap b, if you look at the investments, the things they have put money and things they havent monetized like youtube, this is a company that still trades at a discount to us that represents value, given the quality of the Business Value to us defines the combination of low price and high quality of course, one should be willing to pay a higher price for higherquality businesses. I think alphabet in particular fits that bill to us this is why youll see in our portfolios, global and domestic, still a very large position. Thank you. Thank you for having me on. Take a look alternate this, an explanation of modernas surge overnight. Stayitus wh introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. We have some fresh comments. Boston fed chair going further than other fed officials ive seen so far criticizing the reaction and the efforts of states to control of virus hes saying, pointing to a lot of graphs and charts hes presenting, saying lifting restrictions too early hurt the economy and Public Health. He says the recent slowdown as a result he believes is likely to continue and the continued spread of the virus he says will slow the economic recovery, including this ominous forecast he warnings that the stimulus from the fiscal side cannot fully offset the economic drain from the Public Health crisis. Heres a quote from the speech hes giving at the time of severe illness and possible death, but are also likely to prolong the economic downturn. Fed officials so far have warned this could be the case hes in charge of the main Street Lending program thats had a slow uptick. He says hes glad its around in case things do get worse in the fall. Important comments. The. The president announcing a deal with moderna, following a similar agreements with us now on where we stand on the race for a vaccine, and the pandemics impact overall, fred hassan, also a cnbc contributor. Fred, good to see you. Good morning. Great especially in light of what do we have to do to get on better footing this could be a lot more its the worstcase scenario the problem with this virus its also very treacherous. It can go past 1, 2, 3, when it goes to 2, 3, it goes exponentially. Thats why theres so much distress around the word its around the world. We need to fight this. Now, there is a war here thats at work here i personally am very optimistic were going to get a vaccine even earlier that is the second half of next year, probably as early as the first half of this year, and maybe at the start of this years it just looks like so many people in the game, about 165 projects at work, and we have multiple modes of action and multiple molecules here. In fact theres so much going on, that many people are not going to make money doing this, but im glad the race is on, and were doing great. Fred, how important is process. They certainly say they certainly ven gown through the date could the u. S. How important is it to actually show the data before you asked people to take this this. So its a its often seen in common colds. Its likely not to be a problem, but you do make a again netticification there, and make some kind of reaction thats not nine at this time i think what people have decided to do is see if they can vaccinate people rather than have them be close to the virus they would rather see a side effect if there is going to be a side effect than have the population exposed to a virus. Here in the u. S. And in europe, we tend to be isciplined, and the pressure is huge very similar to when hiv was there in the late 80s. The officials are doing a fantastic job, working in real time and my own account is very height in the fda that theyre going to do the right thing. They anouned theyll be transparent and everything will be out in the open and if they see something good, theyre going to move very fast. So Great Partnership here. Of course there was never a vaccine for hiv. Its a cocktail of antivirals that neutralize the virus. I wonder are are we not talking enough, but that early on could stop the progression of the virus . Thats a very, very good point its truly a tragedy we failed to get a hiv vaccine i have to give a lot of credit to merck they tried very hard it was just one of those situations where it was hard to be able to get in the real world in this case, the cocktails are very promising in fact they already have it for ebola before covid hid they are very optimistic, that their cocktail will likely be the first one to take care of this problem if youve been exposed to a virus, lets say somebody in the household got infected, its better to take it proflackically at that point and controlled its not just there are others more also in this race. Important to understand that and important for people to have confidence that whatever comes out is worth taking. Thank you for being with us. Thank you. Time for our etf spotlight, taking a look at u. S. Consumers goods. Were talking about the one and only tesla now shares up more 250 so far isth year. Were going to take a quick commercial break stay with us this morning we got word that summer redstone died at the age of 97. Hes a man i knew well, following his career for so many years. He was at the center of the growth of media in this country, having coined the term content is king, which many of us still believe is true. He rose to prominence throughout during the last 30odd years or so he was my friend he was funny he was incredibly smart, and he was, as so many successful people relentless. Heres a look back at the life of mr. Redstone. I think most really successful people, maybe not all, are motivated by something other than the desire for money. If theyre going to succeed, they cant be motivated only by the desire for money theyve got to have that passion to be the best and to win. Sumner redstone loved to win, in a career with plenty of confrontations and rivalries, along with blockbuster deals he usually did. As the chairman of viacom and cbs, he followed the belief that owning content and not distribution was the key to prosperity you have said for many years content is king. That is my quote. I coined that phrase now people are beginning to realize it now content is king. A man often in a hurry, he graduate fred harvard in 2 1 2 years. He didnt Start Building his media empire until the mid 60s. After returning from world war ii, he got a law degree, and in 1954 joined his fathers Movie Theater company, National Amusements the company thrived under his leadership by the 1980s he had built a chain of more than 400 theaters. Then he set his sights on a bigger prize, viacom, a company with a tv syndication unit and to fledgling cable networks, mtv and nickelodeon. When you look back on your career that was the most important move i ever made, the acquisition. He risked his entire fortune, beating back viacoms management, which was also trying to buy the company. His next win came at even greater cost redstone went head to head with barry diller to buy paramount, walking away from the prestigious prize for a cool 10 billion. In 2000 the 77yearold redstone capped his contentconsolidating strategy with the purchase of cbs. The deal would bring together the Cbs Television network, more than a accident cable chance, infinity, simon shuster, and outdoor advertising. Redstone had won again. Wait, wait. No, you wait. No, you wait. It wasnt always easy in 1979 redstonefaced a fight for his life, hanging with one arm from a window sill at bostons Copley Plaza Hotel while a fire raged inside. I remember trying to get to a window i was burning from my legs up. I tried to open one window, couldnt, finally got to at window with hess right hand permanently disfigured, severe burns over 45 of his body, redstone spent months in the burnant at Massachusetts General Hospital the desire to win and not give up i think plays a big role in saving the lives of any person, whatever theyre afflicted with. You kind of expect you can cheat death, it sounds like. No, i know i cant, but im going to try i dont president to die i love what im doing. Reporter in 2005 he reversed course, deciding to split up his empire he said as too nimble companies, one wouldnt be distracted by the other. Youve received a lot of criticism. If you go into the investor reports at the time, 99 said i did the right thing. His son brent sued him this 2006, accusing redstone of cutting him out of the Family Business years later, redstone battled with then estranged daughter sherry for future control. In 2016, the two reconciled amid st. Legal ballotses between redstone and his girl friends. Soon after, she began to bring things back together. I love viacom i love cbs so i dont want to die i have a will to live. The same will to win that ive always had, and therefore im going to fight death as long as i can. I like it here i dont want to go anywhere else a life lived to the fullest, Sumner Redstone passing at the age of 97. Wow. Jim could you ipop the hood for us . . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. Welcome back heres your cnbc news update at this hour. A demonstrations in richmond, virginia, turned violent about 75 people were protesting for social justice when apparently things got out of hand several buildings were vandalized some arrests were made. At least three people were killed in indy over a india, and then police were forced to fire live ammunition. At least 60 Police Officers were injured. More than 110 arrests were made. Those who made the post has been arrested, and claims his account was hacked thats a wild horse swimming toward you can see the boar making a quick getaway no injuries were reported. Leslie back to you. Those boars are deceivingly dangerous, though hitting him with a shovel, i dont know. Very conflicted, yes. A bit abusive thank you so much. Were getting breaking news right now out of uber. De deidra bosa has that for us. The ceo saying for the first time he may shut down the app entirely in california if their appeal is not accepted by the court. He made the comments on msnbc. They come after california judge ruled earlier this week that uber had to treat its drivers as employers immediately. They have a tenday stay there may be some bringsmanship going on rather than bringing over 100,000 drivers as employees. They that yesterday on squawk alley we spoke to california ag who says that and i asked him if he thought uber would go this far. He said any Business Model that relies on shortchanging workers in order to make it probably shouldnt be anywhere, whether california or otherwise. Shares in both uber and lyft are up remember, these expectations increasing regulatory pressures are well built in. Though if uber does shut down in california, l. A. And San Francisco are two of uber and lyfts most important markets. Its a risky gambit one, theres a partial shutdown, and then lyft isnt saying theyre going to shut down its not like people dont have options. Thats right. It could push more people towards lyft i think what i have heard is the idea of just bringing on over 100,000 drivers as employees is just too much of a logistical nightmare. Remember these companies are already bleeding billions, in ubers case for a year as you know, he wrote an opsaid saying they want to find some kind of middle ground and this will be brought to voters in november the urgent question for investors is within less than ten days, does uber actually go so far to shut down the app. Thank you. Lets move on to spacs or stranger is no stranger to spacs. Today hes revealing details of a new blank check company. Its name is harvester acquisitions he is sir martin franklin, i think. Founder of jordan group, also cochairman of the api group martin, always good to see you the last time we spoke, you did indicate that the spac market was getting frothy you did make the point it was in the u. S. I know this is ukbased. Its somewhat surprising to see you back in even when you did seem to have reservations. Why . Well, i cant overemphasize what i do is very different from the u. S. Spac model. Im not really looking for the same kind of opportunities im trying to buy very profitable businesses, market leaders, great management teams, not necessarily storied stocks and high growth. Thats whats going on in this spac market in the u. S. Today. What i do is much more fundamental, so its very different, much more like a private equity house would do or a corporate strategic. So, you know, im going to raise probably about 750 million, maybe more, through harvester. It will be in partnership with viking global, who i think are larger investors in j2. Api put out earnings this morning that the business is doing tremendously well. Stock is up somewhere between 40 and 50 , so were very happy with the trajectory. Its a wellrun business, and the same kind thing i hope to do with harvester. Martin, there are differences between the socalled rules for spacs in the uk and the u. S. Simply put, i think in the uk, holders have fewer rights, dont they which may be an advantage to you, but perhaps a disadvantage to them . Its an advantage to the investor if you want to buy he quality companies, but you have to run around to maybe get the vote, perhaps you have the money, perhaps you dont, i call that faux capitalism. When you go into serious conversations with companies that have up choices, have that uncertainty is a gaiting light in my opinion thats driven u. S. Spacs to do deals that i would call suboptimal. I know it from experience. The first three spacs had 8 or so in equity, which were the pioneers of what became the more institutionalized scale spac business but, you know, if you cant deliver certainly, there is an echelon of companies that you cannot find, which at the end of the day, this way its much easier to raise capital in america. I do it in a harder way, because frankly its better for investors. Do you think theres a risk then, martin we could see this on slaught of lot of deals coming to fruition as this frenzy kind of plays itself out. It always ends badly. Its as old as time. At the end of the day when you have an overcrowded field, too many vehicles chasing the same things, and you have company with his no earnings, no profits, and their stocks are flying, you know the end its the same as 2000 as you could real a book. Its all there so, you know, the difference is i think not that many people will get hurt by this. Rather than the actual companies that completed transactions. The nice thing about u. S. Spacs is when the tide turns, the deals that havent been done, everyone will get their money back. Theres definitely a floor there. As a serial spacer, so to speak you mentioned youre partnering with viking global for this spac what is the benefit with partnering with Hedge Fund Managers to do these things . At this point people know who you are. Theyve son you do successful spacs in the past. What is the point of fending an investor its a style issue. I like to partner with intelligent people to help navigate to the right place. Ive done that my home career. I started partners with nicklaus gruen, and he now, you know, viking you know, for me its all about finding the right transaction and bridging relationships i find that these associations have hip me be a better investor dealing with investors who understand what the market likes, in terms of Public Companies i think is important so partnering with them, you know, its not only productive, but its also fun. Yeah, any ideas in terms of where youll be focused for a company to come public from, martin you know, i think ive tended to look at industrial and consumer, very much focused on the United States today for lots of different reasons, mostly stability over the long term, but we will have a mandate thats wide and open, but ill stick to the things we have enjoyed successfully before. Market leaders in their respective markets, and, you know, wellrun businesses that create a lot of cash flow. Yeah, in the past, martin, i would asking given youre running a consumerfocused business, you always had good insight there. You may still, so i will ask, even though youre not runni jarden any longer what is your consensus given the Economic Hardships that so many are dealing with you know, its interesting its very much selective im in the consumer space in things like a private concern we have a Company Called no mad foods, the largest frozen food company in europe. The numbers are record years you know, thats because people are staying at home. I think that the economy in general, particularly in the u. S. Is remarkably resilient theres a lot of people who obviously, you know, are experiencing Economic Hardship at the end of the day markets havent clasped. People are still feeling secure. Obviously purchasing patents have shifted to online you know, you have to look at amazon and their performance to see that but its remarkably more resilient, and so i think as we come out of this, and at some point we will, and things will normalize one way or the other, i think the recoveries will actually be pretty good. I think that there is a portion of this population, particularly in the elderly, that i think has truly been traumatized by what has happened with covid19 i think those behaviors will take a long time to come back, and that would affect things like the Restaurant Industry you seem more positive than not with a number of caveats you want one way or the other well get back to normal im a natural optimists i think optimists are generally happier people he i think very much it depends on the science i think if there is a vaccine and it is rolled out during the course of, you know, pick your time period, but lets say its by the second half by the end of the first half of 2021. I do think youre going to have, you know, a fairly healthy recovery so, you know, thats a lot of slack in the system that will get picked up by people going back to normal behaviors we all look forward to that day, sir martin. Thank you for joining us appreciate it. Nice to see you thank you very much. Today at 12 45 eastern do not miss the Small Business playbook the event will be streaming this year Industry Leaders like Sheryl Sandberg will join us with the resources Small Businesses need to Vice President today. You can email cnbc. Com to be added to the registration waitlist were back after a quick break theres one chart that shows this march to record highs is nde. Ainabl fi out more on traden nation more squawk on the street coming up. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. [presenter] stand up if you are. audience applauding dramatic music i will tell you this. Southern New Hampshire university can change the whole trajectory of your life. Welcome back shares of tesla getting a being boost this morning, as elon musk announcic a 5 for 1 stock split effective august 21st. Phil lebeau breaks down what that means the market cap above verizon, disney, nvidia its a 5 for 1 split. Shareholders as of record on august 21st, they get in on this so you see stocks right now after the supplied traiting at 300, as opposed to 1500 a shares Emanuel Rosner from Deutsche Bank out with a note say the stock price reacted positive yesterday likely because tesla is a and the stock supply essential lowers the bar now hes been highlighting in recent months, we think stock having recently influenced by a growing retailer invest by the way, if you look at shares of tesla, its it was 256 yesterday. Leslie its going to be fun to watch how people react if thats important to a retail investor, they like this move. As you mentioned, nothing has changed. Its just technical. How much per share youre paying for tesla. And the other thing, ive had people say to me, friends of my son in their early 20s, say im interested in tesla, i might buy half a share is it a good investment . Now they can go out and buy a couple shares or four, five shares, as opposed to maybe only one. Well, if your goal is to own multiple shares, this is good news for you thank you, phil. Still ahead, the new ceo of opentable, dont go ywreanhe, were back in just a minute. Some Companies Still have hr stuck between employees and their data. Entering data. 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. 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 on the street im dominic chu. Stocks are higher across the board today with every s p 500 sectors you can see behind me in positive territory after a few days of relative weakness, its big Technology Stocks that are leaders once again, fueling gains in the tech sector and the Communications Services sector. As we take a look at whats driving that Communications Services trade so far today, youve got facebook, netflix, alba fete, activation blizzard and Electronic Arts and also seeing gains in Charter Communications and t mobile, media conglomerate news corp keep it on that sector more squawk on the street after this quick break announcer realtime Exchange Sector sort sponsored by 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. [ 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. When our next guest predecessor joined us just two months ago he predicted 1 in 4 restaurants would close forever. Thanks to the pandemic open table ceo stands by this prediction but she is more optimistic o of a return to consumer demand post covid joining us in her first interview since taking the position debby. Congrats on the new gig. Thank you thank you for having me. For the restauranteurs, when do you think things forever for restaurants look as they did in 2019 yeah. We think about that question a lot. Obviously thats very much top of mind for our Restaurant Partners we think for dining to really return back to precovid levels all the way back a vaccine will definitely probably be needed. However, we do see dining demand starting to pop up recently we ran a survey at open table 25 of our respondents were saying that they were dining out at least once a week. So that demand is definitely there. Now, of course, safety precautions are very top of mind for both our restaurants and diners so, you know, they want to make sure that the restaurants are keeping their patrons and their employees safe, mask wearing, you know, table spacing, all of that but we dont know when its going to come back to precovid levels we think likely it will be after a vaccine is out there and available for people to take but we are seeing signs of life. We know that that diner demand is there people are itching to get out and eat. In the meantime throughout this pandemic, youve been launching a bunch of new features in response to the changing way that consumers are using restaurants. Tell us about takeout and experiences, which are two of those new features sure. So, yes. As you said, weve recently launched a myriad of different features to adapt to the quicklychanging environment around us. So we launched takeout what that means is for diners its a really convenient way to browse a restaurants menu, order a meal and pay all from your open table app. And for restaurants its great because its an additional revenue stream we also release what had we call safety precautions, like i mention before safety is very top of mind for both restaurants and diners. So, we when you come to opentable for each restaurant youre looking at going to, you can see a list of all the specific and health and Safety Initiatives that restaurants are following to keep their diners and staff safe we recently launched experiences, like you said this can be anything from a happy hour or prefix menu or chefs table we see a lot of demand for this, even now, when people are still not completely comfortable going out to eat but there is this hunger and need for special occasions in these types of experiences debby, whats going to happen when it gets colder in the fall . We wont have a vaccine then and people are probably not want to go inside restaurants even if they are allowed to do so. Yeah. We think about that one a lot too. Its very much top of mind for restaurants who are right now experiencing a great surge of demand, right . Because its summer and dining out is so popular and prevalent. I imagine that takeout and delivery will continue to gain share especially in the colder months people now are much more willing to order food and get it delivered or go and pick it up so i imagine thats whats going to be one of the main lifelines for restaurants during this colder months. Debby, jon fortt. A friend of mine has a michelinstar restaurant in manhattan. She had to close it because she couldnt come to terms with her landlord she and her husband have two other restaurants that are doing takeout. The one she had to close is kind of opentables bread and butter. How many of those kinds of restaurants that have space that need the efficiency that opentable has traditionally delivered, how many of those do you expect to lose and whats the conditions that are needed to bring them back . So as steve my predecessor mentioned a few weeks we expect 1 and 4 restaurants to close and not be able to return because of covid. Thats pretty much on track. Unfortunately we think now that number might even be conservative like you said, restaurants are going through a grueling time right now. You know, having to pay for their wait staff, rent, as you mentioned, is a huge cost. For restaurants like that to open back up, any type of government aid that can be given to them is amazing and necessary. But also again, people have to feel comfortable being in an enclosed area and feeling safe to be around other people. A lot of the restaurants you talked about, right, space is a constraint so, people arent going to feel safe likely until theres a vaccine, until they can they know that when theyre in close spaces that its going to be okay debby n a recreant filing the parent of Opentable Booking Holding said it wrote down the value of opentable and kayak by about half a billion dollars thanks to a reduction in forecasted cash flow im curious especially for a lot of businesses out there that are struggling with the same changes as a result of covid, really quickly, can you explain how difficult it is to be investing in a business during this time yes it is very, very challenging we are at opentable, were doing everything we can to support our Restaurant Partners. As hard as opentable has it right now, our Restaurant Partners have it harder. Were trying to push the message and walk the walk of were in the trenches with you, with our Restaurant Partners. We recently extended our open door policy which basically waives subscription and reservation fees until the end of 2020. Its a hit that we take on our pnl for sure, but we really believe that its the right thing to be doing to support our restaurants. All right well we appreciate that. Thank you debby, for joining us today. Thank you and with that we will start squawk alley. Julia and mike santoli are joining me for the hour. And this morning, mike, check in on the markets we have modestly higher on the dow about 1 s p up 1 1 3 nasdaq doing better. I cant help notice tesla up more than 8. 5 but semiconductors, call qualm up 4 jon, the tech